Slide 1: Second Quarter Fiscal 2021 Earnings Call
Second Quarter Fiscal 2021 Earnings Call NYSE: BV May 6, 2021
Slide 2: Introductory Information: Forward-Looking Statements
Introductory Information Forward-Looking Statements This presentation contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 that involve substantial risks and uncertainties. All statemen
Slide 3: Quarter Highlights and Business Update
Quarter Highlights and Business Update Andrew Masterman | President and Chief Executive Officer 2Q FY2021 Earnings Presentation | 3
Slide 4: Executive Overview
Executive Overview REVENUE • Contract snow book of business expansion driven by 10% organic growth ADJUSTED EBITDA • $66.8M in 2Q’21 with a margin increase of 320 bps to 10.2% LEVERAGE & LIQUIDITY • Leverage ratio of 3.5x, total liquidity as of 2Q’21 was $401.5M STRONG-ON-STRONG M&A • 5 acquisitions
Slide 5: Financial Guidance
Financial Guidance1 Total Revenue Assumptions Revenue: investment in our sales $640M - $2.48B - team is driving sustainable organic $660M $2.52B growth and record revenue. Acquisitions: benefitting from early execution of FY2021 M&A Adjusted EBITDA strategy. Cost Management: expect to $91M - $302M -
Slide 6: Preferred Acquirer in Commercial Landscaping
Preferred Acquirer in Commercial Landscaping 2017 2018 2019 2020 2021 Anaheim, CA Portland, OR Austin, TX Bay Area, CA Mesa, AZ Hartford, CT Fresno, CA San Jose, CA Vista, CA Las Vegs, NV Plymouth, MN Dallas, TX Rock Hill, SC San Diego, CA Fort Lauderdale, FL Austin, TX St. Paul, MN Danville, CA San
Slide 7: Quarterly YoY Maintenance Land Growth
Quarterly YoY Maintenance Land Growth 1 100% Pandemic Starts--------------> 2 Organic Growth in 3Q and 4Q 1 Baseline is Prior Fiscal Year Results 2 Adjusted for Managed Exits in Q1 Only 2Q FY2021 Earnings Presentation | 7
Slide 8: 2Q Snow Growth
2Q Snow Growth Numbers in $Ms $226 $188 $170 $170 $103 FY'20 FY'20 FY'21 FY'21 FY'21 * BoB Results BoB Start BoB End Results Record Organic Growth in Annual Contract Snow Book * Book of Business (BoB) 2Q FY2021 Earnings Presentation | 8
Slide 9: ESG Leadership
ESG Leadership Trees, shrubs and grass planted by A BrightView crew member installs a green roof, one BrightView will consume millions of tons of the company's many environmentally responsible of carbon over their lifetimes practices BrightView has saved millions of gallons of water and reduced wate
Slide 10: ESG - BrightView's People Strategy
ESG - BrightView’s People Strategy Strong brand to attract new team members Develop talent pipelines and adapt recruiting strategy Select the right talent for the right role Automate Application and Hiring processes Offer comprehensive, competitive Total Rewards, recognition and performanc
Slide 11: Technology Blueprint
Technology Blueprint Customer Engagement • Best-in-class solutions. • Standard apps drive efficiency, productivity Operations and seamless Management acquisition rollups. • Integrated architecture supports sophisticated business intelligence and analytics. Enterprise Enablers 2Q FY2021 Earnings Pres
Slide 12: Customer Satisfaction
Customer Satisfaction Fiscal Year Metrics OVERALL SATISFACTION OVERALL SATISFACTION Maintenance Segment Development Segment 2018 2018 2019 2019 2020 2020 1 2 3 4 5 6 1 2 3 4 5 6 Dissatisfied Highly Dissatisfied Highly Satisfied Satisfied EASE OF DOING BUSINESS WILLING TO RECOMMEND INTENT TO RENEW/RE
Slide 13: Financial Review and Outlook
Financial Review and Outlook John Feenan | EVP and Chief Financial Officer 2Q FY2021 Earnings Presentation | 13
Slide 14: 2Q FY2021 Revenue
2Q FY2021 Revenue (Numbers $M) 2Q’21 2Q’20 Commentary • 16.6% Increase Total Revenue $651.9 $559.1 • (+) Higher Snowfall, Continued M&A Strength • (-) COVID-19 Headwinds & Divestitures • 29.6% Increase Maintenance Services $535.7 $413.5 • (+) Higher Snowfall, Strong-on-Strong M&A • (-) COVID-19 Head
Slide 15: 2Q FY2021 Adjusted EBITDA
2Q FY2021 Adjusted EBITDA (Numbers $M) 2Q’21 2Q’20 Commentary • 71.7% Increase Total Adj. EBITDA $66.8 $38.9 • 10.2% Adjusted EBITDA margin • 320 basis point expansion • 77.6% Increase Maintenance Services $72.3 $40.7 • 13.5% Adjusted EBITDA margin • 370 basis point expansion • (23.2)% Decrease Deve
Slide 16: 1H FY2021 Results
1H FY2021 Results (Numbers $M) Revenue Adjusted EBITDA 1H’21 1H’20 1H’21 1H’20 Total BrightView $1,206.3 $1,129.8 $119.3 $90.5 Maintenance Services $953.8 $832.4 $121.9 $88.4 Development Services $254.4 $299.1 $27.9 $33.3 Corporate Expenses - - ($30.5) ($31.2) 2Q FY2021 Earnings Presentation | 16
Slide 17: Net CapEx, Net Debt and Liquidity
Net CapEx, Net Debt and Liquidity 1 2 3 Net Capital Net Debt Liquidity Expenditures $1,166.4 $35.1 $1,047.5 $27.9 Net Capex 1 Net Capex 1 Q2'20 Q2'21 Asset Disposals Net CapEx / Total Revenue Net Debt / TTM Adjusted EBITDA Liquidity 2.9% in 1H’20 vs. 2.0% in 1H’21 4.1x at 2Q’20 $235.5M at 2Q’20 vs.
Slide 18: Liquidity Update
Liquidity Update $(M) As of As of 3/31/2020 3/31/2021 Revolving Credit Facility $124.0 $207.2 Receivables Financing Agreement 23.5 70.5 Total Credit Available 147.5 277.7 Cash and Cash Equivalents 88.0 123.8 Total Liquidity $235.5 $401.5 Debt Maturities: Receivables Financing Agreement Maturity:
Slide 19: Closing Remarks
Closing Remarks Andrew Masterman | President and Chief Executive Officer 2Q FY2021 Earnings Presentation | 19
Slide 20: Key Takeaways
Key Takeaways Market Fundamentals of Business Remain Strong Growth Investments in Sales Driving Organic Growth Technology Investments in Technology Improving Margins Sales & Marketing A Formula for Long-Term Success M&A Acquisition Pipeline Robust Cash Leverage Ratio a Historic Low Focus on People &
Slide 21: Questions & Answers
2Q FY2021 Earnings Call QUESTIONS & ANSWERS 2Q FY2021 Earnings Presentation | 21
Slide 22: Appendix
BrightView P Inspiring People. Nurturing Landscapes. Appendix
Slide 23: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Six Months Ended March 31, March 31, (in millions)* 2021 2020 2021 2020 Adjusted EBITDA Net income (loss) $ 6.3 $ (20.5) $ (5.7) $ (33.1) Plus: Interest expense, net 9.6 17.1 23.1 34.5 Income tax expense (benefit) 2.3 (6.7) (1.4) (11.6) Depreciation
Slide 24: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) (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 revenue recognition standard (ASC 606 – Revenue from Contracts with
Slide 25: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) Total Financial Debt and Total Financial Net Debt September 30, (in millions)* March 31, 2021 March 31, 2020 2020 Long-term debt, net $ 1,123.4 $ 1,220.8 $ 1,127.5 Plus: Current portion of long-term debt 10.4 10.4 12.3 Financing costs, net 12.8 15.5 13.9 Prese
Slide 26: Thank You
Thank You Investor Relations Contact: Media Contact: John E. Shave Fred Jacobs VP of Investor Relations VP of Communications & Public Affairs 484.567.7148 484.567.7244 John.Shave@BrightView.com Fred.Jacobs@BrightView.com investor.brightview.com