Fourth Quarter Fiscal Year 2022 Highlights
- Record total revenue of $723.4 million, reflects growth of
7.4%, including 3.4% total organic growth.
- Maintenance land organic revenue growth of 2.2%, sixth
consecutive quarter of land organic growth.
- Development organic revenue growth of 8.5%, reflecting solid
recovery.
- Net Income of $15.3 million compared to prior year of $26.8
million.
- Adjusted EBITDA of $91.3 million compared to prior year of
$89.5 million.
- Earnings Per Share of $0.16 compared to the prior year of
$0.26. Adjusted Earnings Per Share of $0.37 compared to the prior
year of $0.38.
Company Provides First
Quarter Fiscal 2023 Guidance
- First Quarter Total Revenue of $610 - $640 million, and
Adjusted EBITDA1 of $38 - $44 million.
- Underpinned by Maintenance and Development organic growth as
well as benefits from accretive M&A
BrightView Holdings, Inc. (NYSE: BV) (the “Company” or
“BrightView”), the leading commercial landscaping services company
in the United States, today reported unaudited results for the
fourth quarter ended September 30, 2022.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20221117005192/en/
(Graphic: Business Wire)
“We are pleased to report record revenues for the fourth quarter
and fiscal year 2022, anchored by land organic growth of 4.4%,
exceeding our long-term plans and significantly outpacing industry
growth. In addition, our accretive acquisitions continued to
benefit our topline,” said Andrew Masterman, BrightView President
and Chief Executive Officer. "Our results are powered by the hard
work and dedication of our team members, and I am very thankful for
their efforts. Looking ahead, we will continue to execute on our
strategic plan to deliver another year of solid organic growth in
fiscal 2023, while implementing initiatives to mitigate against
externally driven headwinds and strengthen our profitability.”
Total BrightView - Operating
Highlights
Three Months Ended September
30,
Year Ended September
30,
($ in millions, except per share
figures)
2022
2021
Change
2022
2021
Change
Revenue
$
723.4
$
673.7
7.4%
$
2,774.6
$
2,553.6
8.7%
Net Income
$
15.3
$
26.8
(42.9%)
$
14.0
$
46.3
(69.8%)
Net Income Margin
2.1
%
4.0
%
(190) bps
0.5
%
1.8
%
(130) bps
Adjusted EBITDA
$
91.3
$
89.5
2.0%
$
287.9
$
302.3
(4.8%)
Adjusted EBITDA Margin
12.6
%
13.3
%
(70) bps
10.4
%
11.8
%
(140) bps
Adjusted Net Income
$
34.5
$
39.6
(12.9%)
$
100.9
$
126.3
(20.1%)
Basic Earnings per Share
$
0.16
$
0.26
(38.5%)
$
0.14
$
0.44
(68.2%)
Earnings per Share, Adjusted
$
0.37
$
0.38
(2.6%)
$
1.03
$
1.20
(14.2%)
Weighted average number of common shares
outstanding
93.0
105.2
(11.6%)
97.9
105.2
(6.9%)
1Adjusted EBITDA is a non-GAAP measure.
Refer to the “Non-GAAP Financial Measures” section for more
information. The Company is not providing a quantitative
reconciliation of its financial outlook for Adjusted EBITDA to net
income, its corresponding GAAP measure, because the GAAP measure
that is excluded from its non-GAAP financial outlook is difficult
to reliably predict or estimate without unreasonable effort due to
its dependence on future uncertainties, such as items discussed
below. Information that is currently not available to the Company
could have a potentially unpredictable and potentially significant
impact on its future GAAP financial results.
Adjusted EBITDA, Adjusted EBITDA Margin,
Adjusted Net Income, Free Cash Flow and Adjusted Earnings per Share
are non-GAAP measures. Refer to the “Non-GAAP Financial Measures”
and “Reconciliation of GAAP to Non-GAAP Financial Measures”
sections for more information.
For the fourth quarter of fiscal 2022, total revenue increased
7.4% to a record $723.4 million driven by $22.8 million from
organic growth, or 3.4% of the total percentage increase quarter
over quarter, and $26.9 million from acquired business, or 4.0% of
the total percentage increase quarter over quarter.
For the fiscal year ended September 30, 2022, total revenue
increased 8.7% to a record $2,774.6 million driven by $81.5 million
from organic growth, or 3.2% of the total percentage increase
quarter over quarter, and $139.5 million from acquired businesses,
or 5.5% of the total percentage increase quarter over quarter.
Fiscal 2022 Results – Segments
Maintenance Services - Operating
Highlights
Three Months Ended September
30,
Year Ended September
30,
($ in millions)
2022
2021
Change
2022
2021
Change
Landscape Maintenance
$
529.2
$
504.8
4.8%
$
1,825.7
$
1,698.0
7.5%
Snow Removal
$
(0.7
)
$
(0.3
)
(133.3%)
$
256.3
$
284.9
(10.0%)
Total Revenue
$
528.5
$
504.5
4.8%
$
2,082.0
$
1,982.9
5.0%
Adjusted EBITDA
$
81.4
$
87.1
(6.5%)
$
278.8
$
299.6
(6.9%)
Adjusted EBITDA Margin
15.4
%
17.3
%
(190) bps
13.4
%
15.1
%
(170) bps
Capital Expenditures
$
15.5
$
14.9
4.0%
$
82.9
$
52.4
58.2%
For the fourth quarter of fiscal 2022, revenue in the
Maintenance Services Segment increased by $24.0 million, or 4.8%,
from the prior year. The increase was primarily driven by a $13.5
million revenue contribution from acquired businesses combined with
an increase of $11.0 million, or 2.2%, in underlying commercial
landscape services.
Adjusted EBITDA for the Maintenance Services Segment for the
three months ended September 30, 2022 decreased by $5.7 million to
$81.4 million from $87.1 million in the 2021 period. Segment
Adjusted EBITDA Margin decreased 190 basis points, to 15.4%, in the
three months ended September 30, 2022, from 17.3% in the 2021
period. The decreases in Segment Adjusted EBITDA and Segment
Adjusted EBITDA Margin were principally driven by higher fuel
costs, the impact of Hurricane Ian and the reinstatement of the
employer match for the employee savings plan.
For the fiscal year ended September 30, 2022, revenue in the
Maintenance Services Segment increased by $99.1 million, or 5.0%,
from the 2021 period. Revenues from landscape maintenance services
were $1,825.7 million for the fiscal year ended September 30, 2022,
an increase of $127.7 million over the 2021 period. The increase in
landscape maintenance service revenues was primarily driven by a
$74.5 million, or 4.4%, increase in underlying commercial landscape
services underpinned by a combination of contract services growth
and to a greater extent ancillary services growth, as well as a
$53.2 million revenue contribution from acquired businesses.
Offsetting this was a decrease of $28.6 million in snow removal
services, net of $21.1 million from acquired businesses, due to
overall less snowfall during the year ended September 30, 2022 as
compared to the 2021 period.
Adjusted EBITDA for the Maintenance Services Segment for the
fiscal year ended September 30, 2022 increased by $20.8 million to
$278.8 million from $299.6 million in the 2021 period. Segment
Adjusted EBITDA Margin decreased 170 basis points, to 13.4%, in the
2022 period, from 15.1% in the 2021 period. The decreases in
Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin were
principally driven by the decrease in snow removal revenues, higher
fuel costs and the reinstatement of the employer match for the
employee savings plan, partially offset by increases in revenues
from underlying commercial landscape services and acquisitions
discussed above.
Development Services - Operating
Highlights
Three Months Ended September
30,
Year Ended September
30,
($ in millions)
2022
2021
Change
2022
2021
Change
Revenue
$
198.0
$
170.2
16.3%
$
698.8
$
574.9
21.6%
Adjusted EBITDA
$
25.5
$
18.6
37.1%
$
73.7
$
65.2
13.0%
Adjusted EBITDA Margin
12.9
%
10.9
%
200 bps
10.5
%
11.3
%
(80) bps
Capital Expenditures
$
1.7
$
1.2
41.7%
$
12.5
$
6.2
101.6%
For the fourth quarter of fiscal 2022, revenue in the
Development Services Segment increased by $27.8 million, or 16.3%,
compared to the prior year. The increase was principally driven by
an increase in Development Services project volumes of $14.4
million coupled with $13.4 million of revenue contributions from
acquired businesses.
Adjusted EBITDA for the Development Services Segment for the
three months ended September 30, 2022 increased $6.9 million, to
$25.5 million, compared to the 2021 period and Adjusted EBITDA
Margin increased 200 basis points, to 12.9% for the quarter from
10.9% in the prior year. Adjusted EBITDA and Adjusted EBITDA Margin
increased primarily as a result of the increases in revenues
described above coupled with lower labor and materials costs as a
percentage of revenue.
For the fiscal year ended September 30, 2022, revenue in the
Development Services Segment increased by $123.9 million, or 21.6%,
compared to the 2021 period. The increase was driven by a $65.2
million revenue contribution from acquired businesses combined with
an increase of $58.7 million due to additional project volumes.
Adjusted EBITDA for the Development Services Segment fiscal year
ended September 30, 2022 increased $8.5 million, to $73.7 million,
compared to the 2021 period, principally as a result of the
increases in revenues described above, partially offset by higher
materials costs and the reinstatement of the employer match for the
employee savings plan. Segment Adjusted EBITDA Margin decreased 80
basis points, to 10.5% for the period from 11.3% in the 2021
period, primarily as a result of higher materials and fuel costs as
a percentage of revenue, partially offset by lower labor costs as a
percentage of revenue.
Total BrightView Cash Flow
Metrics
Year Ended September
30,
($ in millions)
2022
2021
2020
Net Cash Provided by Operating
Activities
$
106.9
$
148.4
$
245.1
Free Cash Flow
$
6.7
$
96.7
$
197.2
Capital Expenditures
$
107.3
$
61.2
$
52.7
Net cash provided by operating activities for the fiscal year
ended September 30, 2022 decreased $41.5 million, to $106.9
million, from $148.4 million in the prior year. This decrease was
due to a decrease in the cash provided by accounts payable and
other operating liabilities principally due to the impact of the
repayment of the payroll tax deferral under the CARES Act. This was
partially offset by an increase in cash provided by accounts
receivable and unbilled and deferred revenue.
Free Cash Flow decreased $90.0 million to $6.7 million for the
fiscal year ended September 30, 2022 from $96.7 million in the
prior year. The decrease in Free Cash Flow was due to the decrease
in net cash provided by operating activities described above, and
an increase in cash used for capital expenditures, as described
below.
For the fiscal year ended September 30, 2022, capital
expenditures were $107.3 million, compared with $61.2 million in
the 2021 period driven principally by receipted orders previously
impacted by pandemic-related supply chain challenges. The Company
also generated proceeds from the sale of property and equipment of
$7.1 million and $9.5 million during the fiscal year ended
September 30, 2022 and 2021, respectively. Net of the proceeds from
the sale of property and equipment, net capital expenditures
represented 3.6% and 2.0% of revenue in the fiscal year ended
September 30, 2022 and 2021, respectively.
Total BrightView Balance Sheet
Metrics
($ in millions)
September 30, 2022
June 30, 2022
September 30, 2021
Total Financial Debt1
$
1,395.0
$
1,394.9
$
1,179.7
Total Cash & Equivalents
20.1
26.3
123.7
Total Net Financial Debt2
$
1,374.9
$
1,368.6
$
1,056.0
Total Net Financial Debt to Adjusted
EBITDA ratio3
4.8x
4.8x
3.5x
1Total Financial Debt includes total
long-term debt, net of original issue discount, and finance lease
obligations
2Total Net Financial Debt equals Total
Financial Debt minus Total Cash & Equivalents
3Total Net Financial Debt to Adjusted
EBITDA ratio equals Total Net Financial Debt divided by the
trailing twelve month Adjusted EBITDA.
As of September 30, 2022, the Company’s Total Net Financial Debt
was $1,374.9 million, an increase of $318.9 million compared to
$1,056.0 million as of September 30, 2021. The Company’s Total Net
Financial Debt to Adjusted EBITDA ratio was 4.8x, 4.8x and 3.5x as
of September 30, 2022, June 30, 2022 and September 30, 2021,
respectively.
Conference Call Information
A conference call to discuss the fourth quarter fiscal 2022
financial results is scheduled for November 17, 2022, at 10 a.m.
ET. The U.S. toll free dial-in for the conference call is (844)
200-6205 and the international dial-in is (929) 526-1599. The
Conference ID is 599013. A live audio webcast of the conference
call will be available on the Company’s investor website
https://investor.brightview.com, where presentation materials will
be posted prior to the call.
A replay of the call will be available until 11:59 p.m. ET on
November 24, 2022. To access the recording, dial (866) 813-9403
(Conference ID 747190).
About BrightView
BrightView (NYSE: BV), the nation’s largest commercial
landscaper, proudly designs, creates, and maintains the best
landscapes on Earth and provides the most efficient and
comprehensive snow and ice removal services. With a dependable
service commitment, BrightView brings brilliant landscapes to life
at premier properties across the United States, including business
parks and corporate offices, homeowners' associations, healthcare
facilities, educational institutions, retail centers, resorts and
theme parks, municipalities, golf courses, and sports venues.
BrightView also serves as the Official Field Consultant to Major
League Baseball. Through industry-leading best practices and
sustainable solutions, BrightView is invested in taking care of our
team members, engaging our clients, inspiring our communities, and
preserving our planet. Visit www.BrightView.com and connect with us
on Twitter, Facebook, and LinkedIn.
Forward Looking Statements
This press release contains forward looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”) and Section 21E of the Securities
Exchange Act of 1934 that involve substantial risks and
uncertainties. All statements, other than statements of historical
facts, contained in this presentation, including statements
relating to our fourth quarter fiscal 2022 and full year fiscal
2022 guidance and other statements related to our expectations
regarding our industry, strategy, future operations, future
liquidity and financial position, future revenues, projected costs,
prospects, plans and objectives of management, are forward-looking
statements. The words such as “outlook,” “guidance,” “projects,”
“continues,” “believes,” “expects,” “may,” “will,” “should,”
“seeks,” “intends,” “plans,” “estimates,” or “anticipates,” or the
negative version of these words or similar expressions are intended
to identify forward-looking statements, although not all
forward-looking statements contain these identifying words. By
their nature, forward-looking statements: speak only as of the date
they are made; are not statements of historical fact or guarantees
of future performance; and are subject to risks, uncertainties,
assumptions, or changes in circumstances that are difficult to
predict or quantify. Our expectations, beliefs, and projections are
expressed in good faith and we believe there is a reasonable basis
for them. However, there can be no assurance that management’s
expectations, beliefs and projections will result or be achieved
and actual results may vary materially from what is expressed in or
indicated by the forward-looking statements. Factors that could
cause actual results to differ materially from those projected
include, but are not limited to: general business economic and
financial conditions; the duration and extent of the novel
coronavirus (COVID-19) pandemic and its resurgence, and the impact
of federal, state and local governmental actions and customer
behavior in response to the pandemic, including possible additional
or reinstated restrictions as a result of a resurgence of the
pandemic; competitive industry pressures; the failure to retain
current customers, renew existing customer contracts and obtain new
customer contracts; the failure to enter into profitable contracts,
or maintaining customer contracts that are unprofitable; a
determination by customers to reduce their outsourcing or use of
preferred vendors; the dispersed nature of our operating structure;
our ability to implement our business strategies and achieve our
growth objectives; the possibility that the anticipated benefits
from our business acquisitions will not be realized in full or at
all or may take longer to realize than expected; the possibility
that costs or difficulties related to the integration of acquired
businesses’ operations will be greater than expected and the
possibility that integration efforts will disrupt our business and
strain management time and resources; the seasonal nature of our
landscape maintenance services; our dependence on weather
conditions; increases in prices for raw materials, labor and fuel
caused by rising inflation or otherwise; changes in our ability to
source adequate supplies and materials in a timely manner; any
failure to accurately estimate the overall risk, requirements, or
costs when we bid on or negotiate contracts that are ultimately
awarded to us; the conditions and periodic fluctuations of real
estate markets, including residential and commercial construction;
our ability to retain or hire our executive management and other
key personnel; our ability to attract and retain trained workers
and third-party contractors and re-employ seasonal workers; any
failure to properly verify employment eligibility of our employees;
subcontractors taking actions that harm our business; our
recognition of future impairment charges; laws and governmental
regulations, including those relating to employees, wage and hour,
immigration, human health and safety and transportation;
environmental, health and safety laws and regulations, including
regulatory costs, claims and litigation related to the use of
chemicals and pesticides by employees and related third-party
claims; the distraction and impact caused by litigation, of adverse
litigation judgments and settlements resulting from legal
proceedings; increase in on-job accidents involving employees; any
failure, inadequacy, interruption, security failure or breach of
our information technology systems; our ability to adequately
protect our intellectual property; restrictions imposed by our debt
agreements that limit our flexibility in operating our business;
our ability to generate sufficient cash flow to satisfy our
significant debt service obligations; our ability to obtain
additional financing to fund future working capital, capital
expenditures, investments or acquisitions, or other general
corporate requirements; increases in interest rates governing our
variable rate indebtedness increasing the cost of servicing our
substantial indebtedness including changes related to LIBOR reform;
ownership of our common stock; occurrence of natural disasters,
terrorist attacks, geopolitical events, hostilities or other
external events; changes in generally accepted accounting
principles in the United States; our ability to pursue and achieve
our environmental, social and corporate governance (ESG) focus area
goals; unexpected delays, difficulties, and expenses encountered or
incurred in pursuing our ESG goals and costs and requirements
imposed as a result of maintaining the requirement of being a
public company. Additional factors that could cause our results to
differ materially from those described in the forward-looking
statements can be found under “Item 1A. Risk Factors” in our Form
10-K for the fiscal year ended September 30, 2021 as such factors
may be updated from time to time in our periodic filings with the
Securities and Exchange Commission (the “SEC”), which are
accessible on the SEC’s website at www.sec.gov. Accordingly, there
are or will be important factors that could cause actual outcomes
or results to differ materially from those indicated in these
statements. These factors should not be construed as exhaustive and
should be read in conjunction with the other cautionary statements
that are included in this release and in our filings with the SEC.
Any forward-looking statement made in this press release speaks
only as of the date on which it was made. We undertake no
obligation to publicly update or review any forward-looking
statement, whether as a result of new information, future
developments or otherwise, except as required by law.
Non-GAAP Financial Measures
To supplement the Company’s financial information presented in
accordance with GAAP and aid understanding of the Company’s
business performance, the Company uses certain non-GAAP financial
measures, namely “Adjusted EBITDA”, “Adjusted EBITDA Margin”,
“Adjusted Net Income”, “Adjusted Earnings per Share”, “Free Cash
Flow”, “Total Financial Debt”, “Total Net Financial Debt” and
“Total Net Financial Debt to Adjusted EBITDA ratio”. We believe
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income,
Adjusted Earnings per Share, Free Cash Flow, Total Financial Debt,
Total Net Financial Debt, and Total Net Financial Debt to Adjusted
EBITDA ratio assist investors in comparing our results across
reporting periods on a consistent basis by excluding items that we
do not believe are indicative of our core operating performance.
Management believes these non-GAAP financial measures are useful to
investors in highlighting trends in our operating performance,
while other measures can differ significantly depending on
long-term strategic decisions regarding capital structure, the tax
jurisdictions in which we operate and capital investments.
Management regularly uses these measures as tools in evaluating our
operating performance, financial performance and liquidity.
Management uses Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted
Net Income, Adjusted Earnings per Share, Free Cash Flow, Total
Financial Debt, Total Net Financial Debt, and Total Net Financial
Debt to Adjusted EBITDA ratio to supplement comparable GAAP
measures in the evaluation of the effectiveness of our business
strategies, to make budgeting decisions, to establish discretionary
annual incentive compensation and to compare our performance
against that of other peer companies using similar measures. In
addition, we believe that Adjusted EBITDA, Adjusted EBITDA Margin,
Adjusted Net Income, Adjusted Earnings per Share, Free Cash Flow,
Total Financial Debt, Total Net Financial Debt, and Total Net
Financial Debt to Adjusted EBITDA ratio are frequently used by
investors and other interested parties in the evaluation of
issuers, many of which also present Adjusted EBITDA, Adjusted
EBITDA Margin, Adjusted Net Income, Adjusted Earnings per Share,
Free Cash Flow, Total Financial Debt, Total Net Financial Debt, and
Total Net Financial Debt to Adjusted EBITDA ratio when reporting
their results in an effort to facilitate an understanding of their
operating and financial results and liquidity. Management
supplements GAAP results with non-GAAP financial measures to
provide a more complete understanding of the factors and trends
affecting the business than GAAP results alone.
Adjusted EBITDA: We define Adjusted EBITDA as net income before
interest, taxes, depreciation and amortization, as further adjusted
to exclude certain non-cash, non-recurring and other adjustment
items.
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin as
Adjusted EBITDA, defined above, divided by Net Service
Revenues.
Adjusted Net Income: We define Adjusted Net Income as net income
including interest and depreciation, and excluding other items used
to calculate Adjusted EBITDA and further adjusted for the tax
effect of these exclusions and the removal of the discrete tax
items.
Adjusted Earnings per Share: We define Adjusted Earnings per
Share as Adjusted Net Income divided by the weighted average number
of common shares outstanding for the period.
Free Cash Flow: We define Free Cash Flow as cash flows from
operating activities less capital expenditures, net of proceeds
from the sale of property and equipment.
Total Financial Debt: We define Total Financial Debt as total
long-term debt, net of original issue discount, and finance/capital
lease obligations.
Total Net Financial Debt: We define Total Net Financial Debt as
Total Financial Debt minus total cash and cash equivalents.
Total Net Financial Debt to Adjusted EBITDA ratio: We define
Total Net Financial Debt to Adjusted EBITDA ratio as Total Net
Financial Debt divided by the trailing twelve month Adjusted
EBITDA.
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income,
Adjusted Earnings per Share, Free Cash Flow, Total Financial Debt,
Total Net Financial Debt, and Total Net Financial Debt to Adjusted
EBITDA ratio are not recognized terms under GAAP and should not be
considered as an alternative to net income or the ratio of net
income to net revenue as a measure of financial performance, cash
flows provided by operating activities as a measure of liquidity,
or any other performance measure derived in accordance with GAAP.
Additionally, these measures are not intended to be a measure of
free cash flow available for management’s discretionary use as they
do not consider certain cash requirements such as interest
payments, tax payments and debt service requirements. The
presentations of these measures have limitations as analytical
tools and should not be considered in isolation, or as a substitute
for analysis of our results as reported under GAAP. Because not all
companies use identical calculations, the presentations of these
measures may not be comparable to other similarly titled measures
of other companies and can differ significantly from company to
company.
BrightView Holdings,
Inc.
Consolidated Balance
Sheets
(Unaudited)
(in millions)*
September 30, 2022
September 30, 2021
Assets
Current assets:
Cash and cash equivalents
$
20.1
$
123.7
Accounts receivable, net
397.6
378.9
Unbilled revenue
130.2
111.2
Other current assets
129.2
97.0
Total current assets
677.1
710.8
Property and equipment, net
328.3
264.4
Intangible assets, net
174.3
197.6
Goodwill
2,008.8
1,950.8
Operating lease assets
81.6
69.5
Other assets
35.4
44.5
Total assets
$
3,305.5
$
3,237.6
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
151.2
$
144.4
Current portion of long-term debt
12.0
10.4
Deferred revenue
59.3
48.2
Current portion of self-insurance
reserves
45.6
50.2
Accrued expenses and other current
liabilities
193.5
220.9
Current portion of operating lease
liabilities
26.8
22.0
Total current liabilities
488.4
496.1
Long-term debt, net
1,330.7
1,130.6
Deferred tax liabilities
68.6
70.8
Self-insurance reserves
101.1
104.5
Long-term operating lease liabilities
61.3
54.2
Other liabilities
38.6
38.7
Total liabilities
2,088.7
1,894.9
Stockholders’ equity:
Preferred stock, $0.01 par value;
50,000,000 shares authorized; no shares issued or outstanding as of
September 30, 2022 and September 30, 2021
—
—
Common stock, $0.01 par value; 500,000,000
shares authorized; 105,700,000 and 105,200,000 shares issued and
93,000,000 and 105,200,000 shares outstanding as of September 30,
2022 and September 30, 2021, respectively
1.1
1.1
Treasury stock, at cost; 12,700,000 and
287,000 shares as of September 30, 2022 and September 30, 2021,
respectively
(168.2
)
(4.4
)
Additional paid-in-capital
1,509.5
1,489.1
Accumulated deficit
(127.6
)
(141.6
)
Accumulated other comprehensive income
(loss)
2.0
(1.5
)
Total stockholders’ equity
1,216.8
1,342.7
Total liabilities and stockholders’
equity
$
3,305.5
$
3,237.6
(*) Amounts may not total due to
rounding.
BrightView Holdings,
Inc.
Consolidated Statements of
Operations
(Unaudited)
Three Months Ended September
30,
Fiscal Year Ended September
30,
(in millions)*
2022
2021
2022
2021
Net service revenues
$
723.4
$
673.7
$
2,774.6
$
2,553.6
Cost of services provided
534.8
493.6
2,099.8
1,902.8
Gross profit
188.6
180.1
674.8
650.8
Selling, general and administrative
expense
135.4
133.7
534.9
508.0
Amortization expense
12.8
13.3
51.5
52.3
Income from operations
40.4
33.1
88.4
90.5
Other expense (income)
0.4
—
15.5
(2.7
)
Interest expense
18.8
9.8
53.3
42.3
Income before income taxes
21.2
23.3
19.6
50.9
Income tax expense (benefit)
5.9
(3.5
)
5.6
4.6
Net income
$
15.3
$
26.8
$
14.0
$
46.3
Earnings per share
Basic
$
0.16
$
0.26
$
0.14
$
0.44
Diluted
$
0.16
$
0.25
$
0.14
$
0.44
BrightView Holdings,
Inc.
Segment Reporting
(Unaudited)
Three Months Ended September
30,
Fiscal Year Ended September
30,
(in millions)*
2022
2021
2022
2021
Maintenance Services
$
528.5
$
504.5
$
2,082.0
$
1,982.9
Development Services
198.0
170.2
698.8
574.9
Eliminations
(3.1
)
(1.0
)
(6.2
)
(4.2
)
Net Service Revenues
$
723.4
$
673.7
$
2,774.6
$
2,553.6
Maintenance Services
$
81.4
$
87.1
$
278.8
$
299.6
Development Services
25.5
18.6
73.7
65.2
Corporate
(15.6
)
(16.2
)
(64.6
)
(62.5
)
Adjusted EBITDA
$
91.3
$
89.5
$
287.9
$
302.3
Maintenance Services
$
15.5
$
14.9
$
82.9
$
52.4
Development Services
1.7
1.2
12.5
6.2
Corporate
2.0
0.4
11.9
2.6
Capital Expenditures
$
19.2
$
16.5
$
107.3
$
61.2
(*) Amounts may not total due to
rounding.
BrightView Holdings,
Inc.
Consolidated Statements of
Cash Flows
(Unaudited)
Fiscal Year Ended September
30,
(in millions)*
2022
2021
Cash flows from operating activities:
Net income
$
14.0
$
46.3
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
98.9
84.7
Amortization of intangible assets
51.5
52.3
Amortization of financing costs and
original issue discount
3.7
3.7
Loss on debt extinguishment
12.6
—
Deferred taxes
(6.6
)
28.9
Equity-based compensation
18.9
19.7
Realized (gain) loss on hedges
(1.0
)
4.6
Other non-cash activities, net
(1.7
)
(4.1
)
Change in operating assets and
liabilities:
Accounts receivable
(6.3
)
(41.9
)
Unbilled and deferred revenue
(6.9
)
(25.8
)
Other operating assets
(10.5
)
(28.4
)
Accounts payable and other operating
liabilities
(59.7
)
8.4
Net cash provided by operating
activities
106.9
148.4
Cash flows from investing activities:
Purchase of property and equipment
(107.3
)
(61.2
)
Proceeds from sale of property and
equipment
7.1
9.5
Business acquisitions, net of cash
acquired
(93.1
)
(110.4
)
Proceeds from divestitures
—
2.7
Other investing activities, net
(0.4
)
0.7
Net cash (used) by investing
activities
(193.7
)
(158.7
)
Cash flows from financing activities:
Repayments of finance lease
obligations
(27.0
)
(20.5
)
Repayments of term loan
(1,006.3
)
(10.4
)
Repayments of receivables financing
agreement
(374.4
)
(24.6
)
Repayments of revolving credit
facility
(165.0
)
—
Proceeds from term loan, net of issuance
costs
1,180.1
—
Proceeds from receivables financing
agreement, net of issuance costs
391.7
34.5
Proceeds from revolving credit
facility
165.0
—
Debt issuance costs
(4.6
)
—
Proceeds from issuance of common stock,
net of share issuance costs
1.6
1.8
Repurchase of common stock and
distributions
(163.8
)
(1.9
)
Other financing activities, net
(14.1
)
(2.0
)
Net cash (used) by financing
activities
(16.8
)
(23.1
)
Net change in cash and cash
equivalents
(103.6
)
(33.4
)
Cash and cash equivalents, beginning of
period
123.7
157.1
Cash and cash equivalents, end of
period
$
20.1
$
123.7
Supplemental Cash Flow
Information:
Cash paid for income taxes, net
$
17.3
$
19.5
Cash paid for interest
$
48.7
$
40.1
(*) Amounts may not total due to
rounding.
BrightView Holdings,
Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(Unaudited)
Three Months Ended September
30,
Fiscal Year Ended September
30,
(in millions)*
2022
2021
2022
2021
Adjusted EBITDA
Net income
$
15.3
$
26.8
$
14.0
$
46.3
Plus:
Interest expense, net
18.8
9.8
53.3
42.3
Income tax expense (benefit)
5.9
(3.5
)
5.6
4.6
Depreciation expense
27.3
21.1
98.9
84.7
Amortization expense
12.8
13.3
51.5
52.3
Business transformation and integration
costs (a)
8.9
8.6
21.5
28.5
Offering-related expenses (b)
—
0.1
0.1
0.6
Equity-based compensation (c)
4.8
4.5
19.0
20.0
COVID-19 related expenses (d)
(2.5
)
8.8
11.4
23.0
Debt extinguishment (e)
—
—
12.6
—
Adjusted EBITDA
$
91.3
$
89.5
$
287.9
$
302.3
Adjusted Net Income
Net income
$
15.3
$
26.8
$
14.0
$
46.3
Plus:
Amortization expense
12.8
13.3
51.5
52.3
Business transformation and integration
costs (a)
8.9
8.6
21.5
28.5
Offering-related expenses (b)
—
0.1
0.1
0.6
Equity-based compensation (c)
4.8
4.5
19.0
20.0
COVID-19 related expenses (d)
(2.5
)
8.8
11.4
23.0
Debt extinguishment (e)
—
—
12.6
—
Income tax adjustment (f)
(4.8
)
(22.5
)
(29.2
)
(44.4
)
Adjusted Net Income
$
34.5
$
39.6
$
100.9
$
126.3
Free Cash Flow
Cash flows from operating activities
$
41.2
$
15.0
$
106.9
$
148.4
Minus:
Capital expenditures
19.2
16.5
107.3
61.2
Plus:
Proceeds from sale of property and
equipment
1.6
2.0
7.1
9.5
Free Cash Flow
$
23.6
$
0.5
$
6.7
$
96.7
(*) Amounts may not total due to
rounding.
BrightView Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(a)
Business transformation and integration
costs consist of (i) severance and related costs; (ii) business
integration costs and (iii) information technology infrastructure,
transformation costs, and other.
Three Months Ended September
30,
Fiscal Year Ended September
30,
(in millions)*
2022
2021
2022
2021
Severance and related costs
$
0.7
$
0.1
$
1.6
$
0.3
Business integration (g)
3.5
4.8
8.2
14.0
IT infrastructure, transformation, and
other (h)
4.7
3.7
11.7
14.2
Business transformation and integration
costs
$
8.9
$
8.6
$
21.5
$
28.5
(b)
Represents transaction related expenses
incurred for IPO related litigation and completed or contemplated
subsequent registration statements.
(c)
Represents equity-based compensation
expense and related taxes recognized for equity incentive plans
outstanding.
(d)
Represents expenses related to the
Company’s response to the COVID-19 pandemic, principally temporary
and incremental salary and related expenses, personal protective
equipment, cleaning and supply purchases, and other. Additionally,
fiscal year 2022 includes refunds related to employee retention
credits allowed under the CARES Act.
(e)
Represents losses on the extinguishment of
debt related to Amendment No. 6 to the Credit Agreement and
includes the write-off of deferred finance fees and original issue
discount.
(f)
Represents the tax effect of pre-tax items
excluded from Adjusted Net Income and the removal of the applicable
discrete tax items, which collectively result in an increase in
income tax. The tax effect of pre-tax items excluded from Adjusted
Net Income is computed using the statutory rate related to the
jurisdiction that was impacted by the adjustment after taking into
account the impact of permanent differences and valuation
allowances. Discrete tax items include changes in laws or rates,
changes in uncertain tax positions relating to prior years and
changes in valuation allowances.
Three Months Ended September
30,
Fiscal Year Ended September
30,
(in millions)*
2022
2021
2022
2021
Tax impact of pre-tax income
adjustments
$
4.8
$
12.1
$
29.4
$
33.7
Discrete tax items
—
10.4
(0.2
)
10.7
Income tax adjustment
$
4.8
$
22.5
$
29.2
$
44.4
(g)
Represents isolated expenses specifically
related to the integration of acquired companies such as one-time
employee retention costs, employee onboarding and training costs,
and fleet and uniform rebranding costs. The Company excludes
Business integration costs from the measures disclosed above since
such expenses vary in amount due to the number of acquisitions and
size of acquired companies as well as factors specific to each
acquisition, and as a result lack predictability as to occurrence
and/or timing, and create a lack of comparability between
periods.
(h)
Represents expenses related to distinct
initiatives, typically significant enterprise-wide changes. Such
expenses are excluded from the measures disclosed above since such
expenses vary in amount based on occurrence as well as factors
specific to each of the activities, are outside of the normal
operations of the business, and create a lack of comparability
between periods.
Total Financial Debt and Total Net
Financial Debt
(in millions)*
September 30, 2022
June 30, 2022
September 30, 2021
Long-term debt, net
$
1,330.7
$
1,336.4
$
1,130.6
Plus:
Current portion of long-term debt
12.0
12.0
10.4
Financing costs, net
10.6
10.9
11.1
Present value of net minimum payment -
finance lease obligations (i)
41.7
35.6
27.6
Total Financial Debt
1,395.0
1,394.9
1,179.7
Less: Cash and cash equivalents
(20.1
)
(26.3
)
(123.7
)
Total Net Financial Debt
$
1,374.9
$
1,368.6
$
1,056.0
Total Net Financial Debt to Adjusted
EBITDA ratio
4.8x
4.8x
3.5x
(i)
Balance is presented within Accrued
expenses and other current liabilities and Other liabilities in the
Consolidated Balance Sheet.
(*)
Amounts may not total due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221117005192/en/
For More Information: Investor Relations Faten
Freiha, Vice President of Investor Relations (484) 567-7148
Faten.Freiha@BrightView.com
News Media David Freireich, Vice President of
Communications & Public Affairs (484) 567-7244
David.Freireich@BrightView.com
BrightView (NYSE:BV)
Historical Stock Chart
From Aug 2024 to Sep 2024
BrightView (NYSE:BV)
Historical Stock Chart
From Sep 2023 to Sep 2024