- Total revenue of $655.9 million, reflects year-over-year growth
of 10.8%, including 5.5% total organic growth.
- Maintenance organic revenue growth of 1.5%, seventh consecutive
quarter of land organic growth.
- Development organic revenue growth of 5.9%, reflecting
continuation of solid growth.
- Net Loss of $18.9 million compared to prior year Net Loss of
$12.8 million, reflecting a 70-basis point contraction of Net Loss
margin.
- Adjusted EBITDA of $48.6 million, reflects a 20-basis point
Adjusted EBITDA margin expansion and year-over-year growth of
14.1%.
Company Provides
Second Quarter Guidance
- Second Quarter Total Revenue of $610 - $650 million, and
Adjusted EBITDA of $33 - $43 million.
Adjusted 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 (loss), 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.
Additionally, information that is currently not available to the
Company could have a potentially unpredictable and potentially
significant impact on its future GAAP financial results.
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
first quarter ended December 31, 2022.
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“We are pleased to start fiscal 2023 with a strong first
quarter, underpinned by robust organic revenue growth across both
segments, acquisition benefits, disciplined cost management and a
steadfast focus on executing our growth strategy to continue to
drive momentum in our business,” said Andrew Masterman, BrightView
President and Chief Executive Officer. “Our performance is powered
by the hard work and dedication of our team members, and I am very
thankful for their efforts. Looking ahead, our priority is clear,
we will continue to execute on our growth plans to deliver solid
organic growth in fiscal 2023, while implementing initiatives
designed to mitigate against externally driven headwinds and
improve our profitability.”
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net (Loss)
Income, Free Cash Flow and Adjusted (Loss) 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.
Fiscal 2023 Results – Total BrightView
Total BrightView - Operating
Highlights
Three Months Ended December
31,
($ in millions, except per share
figures)
2022
2021
Change
Revenue
$
655.9
$
591.8
10.8%
Net (Loss)
$
(18.9
)
$
(12.8
)
47.7%
Net (Loss) Margin
(2.9
%)
(2.2
%)
(70) bps
Adjusted EBITDA
$
48.6
$
42.6
14.1%
Adjusted EBITDA Margin
7.4
%
7.2
%
20 bps
Adjusted Net (Loss) Income
$
(1.2
)
$
8.2
(114.6%)
Basic (Loss) per Share
$
(0.20
)
$
(0.12
)
66.7%
Adjusted (Loss) Earnings per Share
$
(0.01
)
$
0.08
(112.5%)
Weighted average number of common shares
outstanding
93.3
105.3
(11.4%)
For the first quarter of fiscal 2023, total revenue increased
10.8% to $655.9 million driven by $32.8 million from organic
growth, or 5.5% of the total percentage increase year-over-year,
and $31.3 million from acquired business, or 5.3% of the total
percentage increase year-over-year. Net Loss was $18.9 million
compared to Net Loss of $12.8 million in the prior year period.
Total Adjusted EBITDA increased $6.0 million, or 14.1%, to $48.6
million from $42.6 million in the prior year period.
Fiscal 2023 Results – Segments
Maintenance Services - Operating
Highlights
Three Months Ended December
31,
($ in millions)
2022
2021
Change
Landscape Maintenance
$
421.4
$
402.2
4.8%
Snow Removal
$
61.8
$
36.0
71.7%
Total Revenue
$
483.2
$
438.2
10.3%
Adjusted EBITDA
$
50.5
$
45.3
11.5%
Adjusted EBITDA Margin
10.5
%
10.3
%
20 bps
Capital Expenditures
$
24.0
$
21.9
9.6%
For the first quarter of fiscal 2023, revenue in the Maintenance
Services Segment increased by $45.0 million, or 10.3%, from the
prior year as a result of three primary drivers. First, an increase
of $6.1 million in underlying organic commercial landscape services
underpinned by a combination of contract services and ancillary
services growth. This increase reflects Maintenance land organic
revenue growth of 1.5%, the seventh consecutive quarter of land
organic growth. Second, a $20.7 million revenue contribution from
acquired businesses, including $13.1 million in commercial
landscape services and $7.6 million in snow removal. Third, an
$18.2 million organic revenue increase in snow removal services,
primarily due to lower snowfall in the prior period (relative to
the 10-year historical average as defined by NOAA1 for the
Company's footprint during the respective three-month periods).
Adjusted EBITDA for the Maintenance Services Segment for the
three months ended December 31, 2022 increased by $5.2 million to
$50.5 million from $45.3 million in the 2021 period. Segment
Adjusted EBITDA Margin increased 20 basis points, to 10.5%, in the
three months ended December 31, 2022, from 10.3% in the 2021
period. The increases in Segment Adjusted EBITDA and Segment
Adjusted EBITDA Margin were principally driven by the increases in
organic underlying commercial landscape services revenues and snow
removal services revenues, partially offset by increased
compensation-related costs.
Development Services - Operating
Highlights
Three Months Ended December
31,
($ in millions)
2022
2021
Change
Revenue
$
174.4
$
154.7
12.7%
Adjusted EBITDA
$
16.5
$
14.5
13.8%
Adjusted EBITDA Margin
9.5
%
9.4
%
10 bps
Capital Expenditures
$
2.0
$
1.1
81.8%
For the first quarter of fiscal 2023, revenue in the Development
Services Segment increased by $19.7 million, or 12.7%, compared to
the prior year. The increase was principally driven by $10.6
million of revenue contributions from acquired businesses coupled
with an increase in Development Services project volumes of $9.1
million.
Adjusted EBITDA for the Development Services Segment for the
three months ended December 31, 2022 increased $2.0 million, to
$16.5 million, compared to the 2021 period. Segment Adjusted EBITDA
Margin increased 10 basis points, to 9.5% for the quarter from 9.4%
in the prior year. The increases in Segment Adjusted EBITDA and
Segment Adjusted EBITDA Margin were primarily driven by the
increased Development Services Segment revenues, which were
partially offset by increased costs associated with the mix of
projects relative to the prior year.
1National Oceanic and Atmospheric
Administration, U.S. Department of Commerce
Total BrightView Cash Flow
Metrics
Three Months Ended December
31,
($ in millions)
2022
2021
Change
Net Cash (Used) by Operating
Activities
$
(29.6
)
$
(22.4
)
32.1%
Free Cash Flow
$
(55.4
)
$
(49.9
)
11.0%
Capital Expenditures
$
27.2
$
28.6
(4.9%)
Net cash used by operating activities for the three months ended
December 31, 2022 increased $7.2 million, to $29.6 million, from
$22.4 million in the prior year. This increase was due to a
decrease in the cash provided by unbilled and deferred revenue
coupled with an increase in cash used by accounts receivable. This
was partially offset by a decrease in cash used by other operating
assets coupled with a decrease in cash used by accounts payable and
other operating liabilities.
Free Cash Flow decreased $5.5 million to an outflow of $55.4
million for the three months ended December 31, 2022 from an
outflow of $49.9 million in the prior year. The decrease in Free
Cash Flow was due to the increase in net cash used by operating
activities described above, partially offset by a decrease in cash
used for capital expenditures as described below.
For the three months ended December 31, 2022, capital
expenditures were $27.2 million, compared with $28.6 million in the
prior year. The Company also generated proceeds from the sale of
property and equipment of $1.4 million and $1.1 million during the
three months ended December 31, 2022 and 2021, respectively. Net of
the proceeds from the sale of property and equipment, net capital
expenditures represented 3.9% of revenue in the three months ended
December 31, 2022, a decrease of 70 bps compared to 4.6% for the
three months ended December 31, 2021.
Total BrightView Balance Sheet
Metrics
($ in millions)
December 31, 2022
September 30, 2022
December 31, 2021
Long-term debt, net
$
1,409.5
$
1,330.7
$
1,204.0
Total Financial Debt1
$
1,476.5
$
1,395.0
$
1,248.6
Minus:
Total Cash & Equivalents
22.4
20.1
132.8
Total Net Financial Debt2
$
1,454.1
$
1,374.9
$
1,115.8
Total Net Financial Debt to Adjusted
EBITDA ratio3
4.9x
4.8x
3.8x
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 December 31, 2022, the Company’s Total Net Financial Debt
was $1,454.1 million, an increase of $79.2 million compared to
$1,374.9 million as of September 30, 2022. This increase is
consistent with the increase observed in the first quarter of the
prior year. The Company’s Total Net Financial Debt to Adjusted
EBITDA ratio was 4.9x and 4.8x as of December 31, 2022 and
September 30, 2022, respectively.
Conference Call Information
A conference call to discuss the first quarter fiscal 2023
financial results is scheduled for February 7, 2023, 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 330386. 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
February 14, 2023. To access the recording, dial (866) 813-9403
(Conference ID 891516).
About BrightView
BrightView (NYSE: BV), the nation’s largest commercial
landscaper, proudly designs, creates, and maintains some of 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 second quarter fiscal 2023 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,
including recessionary conditions; higher operational and supply
costs and expenses due to inflation, and our inability to pass
higher costs and expenses onto our customers through price
increases; 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 and the impact of severe weather and climate change on
our business; increases in prices for raw materials, labor and fuel
caused by rising inflation or otherwise; disruptions in our supply
chain and changes in our ability to source adequate supplies and
materials in a timely manner; 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; 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 field and hourly employees, 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; 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; 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;
any future sales, or the perception of future sales, by us or our
affiliates, which could cause the market price for our common stock
to decline;; the ability of KKR BrightView Aggregator L.P., who
hold approximately 54% of our shares as of December 31, 2022, to
exert significant influence over us; occurrence of natural
disasters, terrorist attacks, geopolitical events, hostilities or
other external events; changes in generally accepted accounting
principles in the United States; and costs and requirements imposed
as a result of maintaining compliance with 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, 2022 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 (Loss) Income”, “Adjusted (Loss) 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
(Loss) Income, Adjusted (Loss) 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 (Loss) Income, Adjusted (Loss)
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 (Loss) Income,
Adjusted (Loss) 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
(Loss) Income, Adjusted (Loss) 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 (loss)
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 (Loss) Income: We define Adjusted Net (Loss) Income
as net income (loss) 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 (Loss) Earnings per Share: We define Adjusted (Loss)
Earnings per Share as Adjusted Net (Loss) 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 (Loss)
Income, Adjusted (Loss) 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 (loss)
or the ratio of net income (loss) 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)*
December 31, 2022
September 30, 2022
Assets
Current assets:
Cash and cash equivalents
$
22.4
$
20.1
Accounts receivable, net
412.0
397.6
Unbilled revenue
121.8
130.2
Other current assets
139.0
129.2
Total current assets
695.2
677.1
Property and equipment, net
339.2
328.3
Intangible assets, net
163.4
174.3
Goodwill
2,017.6
2,008.8
Operating lease assets
79.7
81.6
Other assets
34.6
35.4
Total assets
$
3,329.7
$
3,305.5
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
132.8
$
151.2
Current portion of long-term debt
12.0
12.0
Deferred revenue
74.5
59.3
Current portion of self-insurance
reserves
46.5
45.6
Accrued expenses and other current
liabilities
168.2
193.5
Current portion of operating lease
liabilities
27.1
26.8
Total current liabilities
461.1
488.4
Long-term debt, net
1,409.5
1,330.7
Deferred tax liabilities
61.1
68.6
Self-insurance reserves
98.0
101.1
Long-term operating lease liabilities
59.0
61.3
Other liabilities
39.7
38.6
Total liabilities
2,128.4
2,088.7
Stockholders’ equity:
Preferred stock, $0.01 par value;
50,000,000 shares authorized; no shares issued or outstanding as of
December 31, 2022 and September 30, 2022
—
—
Common stock, $0.01 par value; 500,000,000
shares authorized; 106,400,000 and 105,700,000 shares issued and
93,500,000 and 93,000,000 shares outstanding as of December 31,
2022 and September 30, 2022, respectively
1.1
1.1
Treasury stock, at cost; 12,900,000 and
12,700,000 shares as of December 31, 2022 and September 30, 2022,
respectively
(169.4
)
(168.2
)
Additional paid-in-capital
1,516.5
1,509.5
Accumulated deficit
(146.5
)
(127.6
)
Accumulated other comprehensive (loss)
income
(0.4
)
2.0
Total stockholders’ equity
1,201.3
1,216.8
Total liabilities and stockholders’
equity
$
3,329.7
$
3,305.5
(*) Amounts may not total due to
rounding.
BrightView Holdings,
Inc.
Consolidated Statements of
Operations
(Unaudited)
Three Months Ended December
31,
2022
2021
(in millions)*
Net service revenues
$
655.9
$
591.8
Cost of services provided
508.3
451.9
Gross profit
147.6
139.9
Selling, general and administrative
expense
137.6
134.9
Amortization expense
11.9
13.4
(Loss) from operations
(1.9
)
(8.4
)
Other (income)
(0.7
)
(0.7
)
Interest expense
23.2
9.7
(Loss) before income taxes
(24.4
)
(17.4
)
Income tax (benefit)
(5.5
)
(4.6
)
Net (loss)
$
(18.9
)
$
(12.8
)
(Loss) per share:
Basic and diluted (loss) per share
$
(0.20
)
$
(0.12
)
BrightView Holdings,
Inc.
Segment Reporting
(Unaudited)
Three Months Ended December
31,
2022
2021
(in millions)*
Maintenance Services
$
483.2
$
438.2
Development Services
174.4
154.7
Eliminations
(1.7
)
(1.1
)
Net Service Revenues
$
655.9
$
591.8
Maintenance Services
$
50.5
$
45.3
Development Services
16.5
14.5
Corporate
(18.4
)
(17.2
)
Adjusted EBITDA
$
48.6
$
42.6
Maintenance Services
$
24.0
$
21.9
Development Services
2.0
1.1
Corporate
1.2
5.6
Capital Expenditures
$
27.2
$
28.6
(*) Amounts may not total due to
rounding.
BrightView Holdings, Inc.
Consolidated Statements of
Cash Flows
(Unaudited)
Three Months Ended December
31,
2022
2021
(in millions)*
Cash flows from operating activities:
Net (loss)
$
(18.9
)
$
(12.8
)
Adjustments to reconcile net (loss) to net
cash (used) by operating activities:
Depreciation
27.1
21.4
Amortization of intangible assets
11.9
13.4
Amortization of financing costs and
original issue discount
0.9
0.9
Deferred taxes
(8.3
)
(5.6
)
Equity-based compensation
5.6
4.7
Realized (gain) on hedges
(3.0
)
(0.6
)
Other non-cash activities, net
0.6
(0.1
)
Change in operating assets and
liabilities:
Accounts receivable
(15.6
)
(4.3
)
Unbilled and deferred revenue
23.7
41.6
Other operating assets
(5.8
)
(20.9
)
Accounts payable and other operating
liabilities
(47.8
)
(60.1
)
Net cash (used) by operating
activities
(29.6
)
(22.4
)
Cash flows from investing activities:
Purchase of property and equipment
(27.2
)
(28.6
)
Proceeds from sale of property and
equipment
1.4
1.1
Business acquisitions, net of cash
acquired
(10.0
)
(6.0
)
Other investing activities, net
0.8
(0.2
)
Net cash (used) by investing
activities
(35.0
)
(33.7
)
Cash flows from financing activities:
Repayments of finance lease
obligations
(8.7
)
(5.6
)
Repayments of term loan
(3.0
)
(2.6
)
Repayments of receivables financing
agreement
(114.0
)
-
Proceeds from receivables financing
agreement, net of issuance costs
171.0
75.0
Proceeds from revolving credit
facility
24.0
—
Proceeds from issuance of common stock,
net of share issuance costs
0.3
0.5
Repurchase of common stock and
distributions
(1.2
)
(2.1
)
Contingent business acquisition
payments
(1.6
)
—
Other financing activities, net
0.1
—
Net cash provided by financing
activities
66.9
65.2
Net change in cash and cash
equivalents
2.3
9.1
Cash and cash equivalents, beginning of
period
20.1
123.7
Cash and cash equivalents, end of
period
$
22.4
$
132.8
Supplemental Cash Flow
Information:
Cash paid for income taxes, net
$
-
$
4.6
Cash paid for interest
$
21.7
$
8.7
(*) Amounts may not total due to
rounding.
BrightView Holdings,
Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(Unaudited)
Three Months Ended December
31,
(in millions)*
2022
2021
Adjusted EBITDA
Net (loss)
$
(18.9
)
$
(12.8
)
Plus:
Interest expense, net
23.2
9.7
Income tax (benefit)
(5.5
)
(4.6
)
Depreciation expense
27.1
21.4
Amortization expense
11.9
13.4
Business transformation and integration
costs (a)
4.7
5.9
Equity-based compensation (b)
5.7
4.8
COVID-19 related expenses (c)
0.4
4.8
Adjusted EBITDA
$
48.6
$
42.6
Adjusted Net (Loss) Income
Net (loss)
$
(18.9
)
$
(12.8
)
Plus:
Amortization expense
11.9
13.4
Business transformation and integration
costs (a)
4.7
5.9
Equity-based compensation (b)
5.7
4.8
COVID-19 related expenses (c)
0.4
4.8
Income tax adjustment (d)
(5.0
)
(7.9
)
Adjusted Net (Loss) Income
$
(1.2
)
$
8.2
Free Cash Flow
Cash flows (used in) operating
activities
$
(29.6
)
$
(22.4
)
Minus:
Capital expenditures
27.2
28.6
Plus:
Proceeds from sale of property and
equipment
1.4
1.1
Free Cash Flow
$
(55.4
)
$
(49.9
)
(*) 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 December
31,
(in millions)*
2022
2021
Severance and related costs
$
0.1
$
0.3
Business integration (e)
2.7
4.0
IT infrastructure, transformation, and
other (f)
1.9
1.6
Business transformation and integration
costs
$
4.7
$
5.9
(b) Represents equity-based compensation expense and related
taxes recognized for equity incentive plans outstanding.
(c) Represents expenses related to the Company’s response to the
COVID-19 pandemic, principally temporary and incremental salary and
related expenses, personal protective equipment and cleaning and
supply purchases, and other.
(d) 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 a reduction of income tax
(benefit). 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 December
31,
(in millions)*
2022
2021
Tax impact of pre-tax income
adjustments
$
6.0
$
7.9
Discrete tax items
(1.0
)
—
Income tax adjustment
$
5.0
$
7.9
(e) 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.
(f) 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)*
December 31, 2022
September 30, 2022
December 31, 2021
Long-term debt, net
$
1,409.5
$
1,330.7
$
1,204.0
Plus:
Current portion of long-term debt
12.0
12.0
10.4
Financing costs, net
10.2
10.6
10.2
Present value of net minimum payment -
finance lease obligations (g)
44.8
41.7
24.0
Total Financial Debt
1,476.5
1,395.0
1,248.6
Less: Cash and cash equivalents
(22.4
)
(20.1
)
(132.8
)
Total Net Financial Debt
$
1,454.1
$
1,374.9
$
1,115.8
Total Net Financial Debt to Adjusted
EBITDA ratio
4.9x
4.8x
3.8x
(g) 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.
Source: BrightView Landscapes
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230207005301/en/
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
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