Brightview Holdings, Inc. · NYSE:BV
Brightview — Q4 2018 Earnings Presentation
24 slides from Brightview's earnings presentation, Nov 28, 2018
Slide 1: Fourth Quarter FY2018 Earnings Presentation
Fourth Quarter FY2018 Earnings Presentation November 28, 2018 Inspiring people. Nurturing landscapes.
Slide 2: Introductory Information
Introductory Information This presentation contains forward looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this presentation, including statements regarding our financial outlook, industry, strategy, future
Slide 3: 4Q FY2018 Highlights and Business Update
4Q FY2018 Highlights and Business Update Andrew Masterman | Chief Executive Officer Cedars-Sinai Medical Center – Los Angeles, CA
Slide 4: FY2018 Revenue
FY2018 Revenue (Numbers $M) FY18 FY17 Commentary • 5.7% Increase Total Revenue $2,353.6 $2,225.9 • Company Record • In-line with IPO Target • 7.4% Increase Maintenance Services $1,774.8 $1,651.8 • (+) M&A and Snow Removal • (-) Managed Exits • 1.1% Increase Development Services $583.3 $577.2 • (+) M
Slide 5: 4Q FY2018 Revenue
4Q FY2018 Revenue (Numbers $M) 4Q18 4Q17 Commentary • 2.6% Increase Total Revenue $581.8 $567.0 • M&A and underlying strength in Commercial Landscaping • 3.5% Increase Maintenance Services $433.4 $418.6 • (+) M&A and Commercial Landscaping • (-) Managed Exits and Hurricane Irma comp • (0.1%) Decreas
Slide 6: FY2018 Adjusted EBITDA
FY2018 Adjusted EBITDA (Numbers $M) FY18 FY17 Commentary • 12.6% Increase Total Adj. EBITDA $300.1 $266.6 • 12.8% Adjusted EBITDA margin • 80 basis point expansion • 12.3% Increase Maintenance Services $289.8 $258.0 • 16.3% Adjusted EBITDA margin • 70 basis point expansion • 1.7% Increase Developmen
Slide 7: Significant Opportunities Underpin Sustained, Stable Growth
Significant Opportunities Underpin Sustained, Stable Growth LEVERS FOR FUTURE GROWTH GROW WALLET SHARE EXPAND WITH EXISTING CUSTOMER CUSTOMERS BASE Infrastructure and Technology Capitalize on Multiple Channels in place to expand existing relationships to win new business DRIVE EXECUTE OPERATIONAL AC
Slide 8: BrightView – Providing Solutions Across All Landscaping Services
BrightView – Providing Solutions Across All Landscaping Services Maintenance Services Development Services Segment Segment Landscape Snow Landscape Maintenance Removal Architecture & Sports Services Services Development Fields Tree Nursery & Pool & Irrigation Care Tree Moving Water Disaster Fertiliz
Slide 9: Attractive and Accretive Growth Opportunities
Attractive and Accretive Growth Opportunities Disciplined and Repeatable Market Opportunity “Strong-on-Strong” M&A Framework • Pursue strategic acquisitions, increasing our density and leadership position $63B 500K+ Addressable Market¹ Industry Operators • Designed to enhance service capabilities an
Slide 10: Development Services Segment
Development Services Segment Development Services • Consistent growth that tracks with the overall US economy • Continuing importance of working relationships with general contractors • Customers looking for high quality ideas and turn key solutions Superior Solution Provider with Solid Growth Prosp
Slide 11: Financial Review and Outlook
Financial Review and Outlook John Feenan | Chief Financial Officer Agnes Scott College – Atlanta, GA
Slide 12: A Historic Year for BrightView
A Historic Year for BrightView Record Annual Revenue and Adjusted EBITDA in Fiscal 2018 Successfully Completed Initial Public Offering in July 2018 Reduced and Extended Long-Term Debt, Lowering Leverage Ratio to 3.8x from 6.1x Completed Five Acquisitions in the Maintenance Services Segment, expectin
Slide 13: FY2018 Results
FY2018 Results Revenue Adj. EBITDA Adj. EBITDA Margin ∆ YoY ∆ YoY ∆ YoY (bps) $2,353.6M $300.1M 12.8% Up 5.7% Up 12.6% Up 80 bps • Maintenance Services – Revenue up 7.4% / Adj. EBITDA up 12.3% + Acquisitions and Snow Removal Services – Managed Exit initiative Focus on cost productivity, more accre
Slide 14: 4Q FY2018 Results
4Q FY2018 Results Revenue Adj. EBITDA Adj. EBITDA Margin ∆ YoY ∆ YoY ∆ YoY (bps) $581.8M $84.2M 14.5% Up 2.6% Up 5.6% Up 40 bps • Maintenance Services – Revenue up 3.5% / Adj. EBITDA up 3.5% + “Strong-on-Strong” acquisition strategy and Core Commercial Landscaping – Managed Exit initiative and Hurri
Slide 15: Capital Expenditures, Adjusted FCF & Net Debt
Capital Expenditures, Adjusted FCF & Net Debt Capital Adjusted 2 3 Cash Conversion Expenditures Free Cash Flow Net Debt Rate 4 $86.4 $127.6 $1,627.0 82.4% $21.6 79.8% $60.9 $1,149.2 $7.0 $12.0 $53.9 $52.8 $70.4 Net 1 Net 1 Capex Capex FYE 17 FYE 18 FYE 17 FYE 18 FYE 17 FYE 18 FYE 17 FYE 18 Asset Dis
Slide 16: Continue Operational Enhancements and Efficiencies
Continue Operational Enhancements and Efficiencies Strong Leaders Not Accepting Mediocrity Superior Intense Ready, Trained, Financial Customer Focus Safe and Enabled Performance Crews Culture of Leadership training and Consistency in accountability development programs Quality, Strong-on-strong Clie
Slide 17: FY2019 Financial Guidance
FY2019 Financial Guidance Total Revenue Adj. EBITDA Capital Expenditures $2,400M - $2,470M $310M - $318M ~2.5% of Revenue Predictable Drivers Profitable Growth Long-Term Average Full Year 2019 Assumption • Managed Exits: expected to reduce revenue by $15M - $25M, declining over the course of the fis
Slide 18: Closing Remarks
Closing Remarks Andrew Masterman | Chief Executive Officer National Mall | Washington D.C.
Slide 19: Closing Remarks
Closing Remarks Record Results in Fiscal Year 2018 with a Favorable 2019 Outlook Acquisitions Added to 2018 Results and Pipeline Remains Attractive Drove Revenue Growth Across All Services Captured Efficiencies and Enhanced Productivity Fueled the Leadership Engine and Promoted a Culture of Safety 4
Slide 20: Questions & Answers
Questions & Answers Rose Fitzgerald Kennedy Greenway – Boston, MA
Slide 21: Appendix
Appendix Rose Fitzgerald Kennedy Greenway – Boston, MA
Slide 22: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Twelve Months Ended September 30, September 30, (in millions)* 2018 2017 2018 2017 Adjusted EBITDA Net loss $ (10.9 ) $ 0.4 $ (15.1 ) $ (37.4 ) Plus: Interest expense, net 20.3 24.7 97.8 98.1 Income tax benefit (8.1 ) (2.0 ) (66.2 ) (24.0 ) Deprecia
Slide 23: Non-GAAP to GAAP Reconciliation (Con't)
Non-GAAP to GAAP Reconciliation (Con’t) Three Months Ended Twelve Months Ended September 30, September 30, (in millions)* 2018 2017 2018 2017 Adjusted Net Income Net loss $ (10.9 ) $ 0.4 (15.1 ) $ (37.4 ) Plus: Amortization expense 15.3 31.0 104.9 125.8 Establish public company financial reporting c
Slide 24: Non-GAAP to GAAP Reconciliation (Con't)
Non-GAAP to GAAP Reconciliation (Con’t) (a) Represents costs incurred to establish public company financial reporting compliance, including costs to comply with the requirements of Sarbanes-Oxley and the accelerated adoption of the new revenue recognition standard (ASC 606 – Revenue from Contracts w