Brightview Holdings, Inc. · NYSE:BV
Brightview — Q1 FY2020 Earnings Presentation
22 slides from Brightview's earnings presentation, Feb 6, 2020
Slide 1: First Quarter Fiscal 2020 Earnings Call
First Quarter Fiscal 2020 Earnings Call NYSE: BV February 6, 2020
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 2020 financial outlook under “FY2020 Financia
Slide 3: Quarter Highlights and Business Update
Quarter Highlights and Business Update Andrew Masterman | President and Chief Executive Officer 1Q FY2020 Earnings Presentation | 3
Slide 4: Executive Summary
Executive Summary First Quarter Fiscal 2020 Results Strategic Initiatives Continue to Gain Traction “Strong-on-Strong” Acquisition Strategy Update 2020 Full Year Outlook 1Q FY2020 Earnings Presentation | 4
Slide 5: 1Q FY2020 Revenue
1Q FY2020 Revenue (Numbers $M) 1Q20 1Q19 Commentary • 8.5% Increase Total Revenue $570.7 $526.0 • (+) M&A, Bookings & Snow • (-) Managed Exits • 6.7% Increase Maintenance Services $418.9 $392.5 • (+) M&A & Snow • (-) Managed Exits • 13.7% Increase Development Services $152.8 $134.4 • (+) Strong proj
Slide 6: Combining Technology and High-Touch Customer Relationship Building
Combining Technology and High-Touch Customer Relationship Building Latest Developments Electronic Time Capture (ETC) fully implemented in the Development Services Segment Salesforce™ CRM software rolled-out to Account Managers HOA Connect and BV Connect portals enhancing customer communication
Slide 7: "Strong-on-Strong" Acquisitions
“Strong-on-Strong” Acquisitions Napa, CA Rock Hill, SC Austin, TX 1 San Diego, CA 2020 Bay Area, CA Syracuse, NY 2019 Mesa, AZ Tucson, AZ Hartford, CT Phoenix, AZ Danville, CA 2018 Fort Lauderdale, FL Shamong, NJ Portland, OR Vista, CA Dallas, TX $300M+ 2017 Annualized revenue Sanford, FL 2017 to 20
Slide 8: ESG Commitment
ESG Commitment Environmental Social Corporate Sustainability Responsibility Governance Nation’s largest purchaser of zero- As we continue to grow as a public emission commercial landscaping company, we will continue to adopt equipment best-practices Founded GROW and BRAVO Utilizing sustainab
Slide 9: Financial Review and Outlook
Financial Review and Outlook John Feenan | EVP and Chief Financial Officer 1Q FY2020 Earnings Presentation | 9
Slide 10: 1Q FY2020 Results
1Q FY2020 Results Revenue Adj. EBITDA Adj. EBITDA Margin1 ∆ YoY ∆ YoY ∆ YoY $570.7M $51.7M 9.1% Up 8.5% Up 3.2% Down 40bps Maintenance Services – Revenue up 6.7% / Adj. EBITDA down 2.1% + Higher snow fall and continued M&A contributions – Final managed exit tail and timing of contract starts in Se
Slide 11: 1Q FY2020 Adjusted EBITDA
1Q FY2020 Adjusted EBITDA (Numbers $M) 1Q20 1Q19 Commentary • 3.2% Increase Total Adj. EBITDA $51.7 $50.1 • 9.1% Adjusted EBITDA margin • 40 basis point contraction • (2.1)% Decrease Maintenance Services $47.7 $48.7 • 11.4% Adjusted EBITDA margin • 100 basis point contraction • 12.4% Increase Develo
Slide 12: Capital Expenditures and Net Debt
Capital Expenditures and Net Debt 2 Capital Net Debt Expenditures $1,161.4 $17.3 $1.8 $14.5 $1,155.1 $1.0 $15.5 1 $13.5 Net 1 1 Capex Net Capex 1 1Q19 1Q20 1Q19 1Q20 Asset Disposals Net CapEx / Total Revenue Net Debt / Adjusted EBITDA 2.9% at 1Q19 vs. 2.4% at 1Q20 4.1x at 1Q19 vs. 3.8x at 1Q20 Expec
Slide 13: FY2020 Financial Guidance
FY2020 Financial Guidance Total Revenue Adjusted EBITDA Net Capital Expenditures $2,465M - $2,525M $312M - $320M 2.5 - 3.0% of Revenue Predictable Drivers Profitable Growth Long-Term Average Full Year 2020 Assumptions Revenue: expect 1% to 3% growth in Underlying Landscape Maintenance, average sno
Slide 14: Closing Remarks
Closing Remarks Andrew Masterman | President and Chief Executive Officer 1Q FY2020 Earnings Presentation | 14
Slide 15: Closing Remarks
Closing Remarks Overall Q1 Results In Line with Expectations Strategic Investments Made to Drive Growth and Productivity Continued Success Executing “Strong-on-Strong” M&A Re-Affirming Full Year 2020 Guidance 1Q FY2020 Earnings Presentation | 15
Slide 16: Questions & Answers
Questions & Answers BrightView e
Slide 17: Appendix
Inspiring People. Nurturing Landscapes. Appendix
Slide 18: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation Three Months Ended Decem ber 31, (in m illions)* 2019 2018 Adjusted EBITDA Net (loss) $ (12.6) $ (8.8) Plus: Interest expense, net 17.4 17.1 Income tax (benefit) (4.9) (3.2) Depreciation expense 20.2 19.3 Amortization expense 13.5 15.1 Establish public company financi
Slide 19: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) Three Months Ended Decem ber 31, (in m illions)* 2019 2018 Adjusted EBITDA Net (loss) $ (12.6) $ (8.8) Plus: Interest expense, net 17.4 17.1 Income tax (benefit) (4.9) (3.2) Depreciation expense 20.2 19.3 Amortization expense 13.5 15.1 Establish public company
Slide 20: 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 21: Non-GAAP to GAAP Reconciliation (cont.)
Non-GAAP to GAAP Reconciliation (cont.) Total Financial Debt and Total Financial Net Debt (in millions)* December 31, December 31, September 30, 2019 2018 2019 Long-term debt, net $ 1,132.5 $ 1,139.6 $ 1,134.2 Plus: Current portion of long-term debt $ 10.4 $ 10.4 $ 10.4 Financing costs, net 16.3 19.
Slide 22: Thank You
Thank You Investor Relations Contact: Media Contact: John Feenan Fred Jacobs EVP and Chief Financial Officer VP, Communications & Public Affairs 484.567.7208 484.567.7244 Investors@BrightView.com Fred.Jacobs@BrightView.com investor.brightview.com
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