- Total revenue of $650.4 million; supported by Maintenance Land
organic growth of 1.6%.
- 8th consecutive quarter of Maintenance Land organic
growth.
- Net loss of $22.0 million and Adjusted EBITDA of $46.8 million,
above high-end of guidance.
- Net cash provided by operating activities of $84.6 million, an
increase of $19.9 million or 30.8% compared to $64.7 million in the
prior year. Free cash flow of $71.4 million, an increase of $40.9
million or 134.1% compared to $30.5 million in the prior year.
Company Provides Third
Quarter and Full Year Fiscal 2023 Guidance
- Third Quarter Total Revenue of $770 - $790 million, and
Adjusted EBITDA of $99 - $104 million.
- Full Year Total Revenue of $2.82 - $2.86 billion, and Adjusted
EBITDA of $292 - $303 million.
Adjusted EBITDA is a non-GAAP measure. Refer to the “Non-GAAP
Financial Measures” section for more information. The Company is
not providing a quantitative reconciliation of its financial
outlook for Adjusted EBITDA to net (loss) income, its corresponding
GAAP measure, because the GAAP measure that is excluded from its
non-GAAP financial outlook is difficult to reliably predict or
estimate without unreasonable effort due to its dependence on
future uncertainties, such as items discussed below. Additionally,
information that is currently not available to the Company could
have a potentially unpredictable & potentially significant
impact on its future GAAP financial results.
BrightView Holdings, Inc. (NYSE: BV) (the “Company” or
“BrightView”), the leading commercial landscaping services company
in the United States, today reported unaudited results for the
second quarter ended March 31, 2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230503006031/en/
Fiscal 2Q23 - Total Revenue (Graphic:
Business Wire)
“We delivered our 8th consecutive quarter of Maintenance Land
organic growth, while also improving Land Maintenance and
Development margins, enabling us to achieve profitability results
significantly above the high-end of our guidance,” said Andrew
Masterman, BrightView President and Chief Executive Officer.
“Looking ahead, our priority remains clear, we will focus on
business elements we can control, most notably driving sustainable
Land Maintenance and Development organic growth, while implementing
cost management initiatives through “Project Accelerate” to
mitigate against externally driven headwinds and continue to
improve profitability.”
Fiscal 2023 Results – Total BrightView
Total BrightView - Operating
Highlights
Three Months Ended March
31,
Six Months Ended March
31,
($ in millions, except per share
figures)
2023
2022
Change
2023
2022
Change
Revenue
$
650.4
$
711.9
(8.6%)
$
1,306.3
$
1,303.8
0.2%
Net (Loss) Income
$
(22.0
)
$
0.7
NM
$
(40.9
)
$
(12.1
)
238.0%
Net (Loss) Income Margin
(3.4
%)
0.1
%
(350) bps
(3.1
%)
(0.9
%)
(220) bps
Adjusted EBITDA
$
46.8
$
59.7
(21.6%)
$
95.3
$
102.3
(6.8%)
Adjusted EBITDA Margin
7.2
%
8.4
%
(120) bps
7.3
%
7.8
%
(50) bps
Adjusted Net (Loss) Income
$
(6.7
)
$
18.3
(136.6%)
$
(8.0
)
$
26.5
(130.2%)
Basic (Loss) Income per Share
$
(0.23
)
$
0.01
NM
$
(0.44
)
$
(0.12
)
266.7%
Adjusted (Loss) Earnings per Share
$
(0.07
)
$
0.18
(138.9%)
$
(0.09
)
$
0.26
(134.6%)
Weighted average number of common shares
outstanding
93.5
100.3
(6.8%)
93.4
102.7
(9.1%)
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.
For the second quarter of fiscal 2023, total revenue decreased
8.6% to $650.4 million driven by a decrease of $77.4 million in
organic revenue from snow removal services year-over-year
associated with the lower snowfall in the period. The decrease in
revenue was partially offset by a $17.1 million revenue
contribution from acquired businesses.
For the six months ended March 31, 2023, total revenue increased
0.2% to $1,306.3 million driven by $48.4 million revenue
contribution from acquired businesses, or 3.7% of the total
percentage increase year-over-year and $11.7 million, or 1.6%
Maintenance Land organic growth. These increases were partially
offset by a decrease of $59.2 million in snow removal services
organic revenues year-over-year associated with the lower snowfall
in the period.
Fiscal 2023 Results – Segments
Maintenance Services - Operating
Highlights
Three Months Ended March
31,
Six Months Ended March
31,
($ in millions)
2023
2022
Change
2023
2022
Change
Landscape Maintenance
$
359.0
$
345.2
4.0%
$
780.5
$
747.4
4.4%
Snow Removal
$
138.8
$
208.2
(33.3%)
$
200.6
$
244.2
(17.9%)
Total Revenue
$
497.8
$
553.4
(10.0%)
$
981.1
$
991.6
(1.1%)
Adjusted EBITDA
$
51.7
$
62.9
(17.8%)
$
102.2
$
108.2
(5.5%)
Adjusted EBITDA Margin
10.4
%
11.4
%
(100) bps
10.4
%
10.9
%
(50) bps
Capital Expenditures
$
12.7
$
27.1
(53.1%)
$
36.7
$
48.9
(24.9%)
For the second quarter of fiscal 2023, revenue in the
Maintenance Services Segment decreased by $55.6 million, or 10.0%,
from the 2022 period. The decrease was driven by a decrease of
$69.4 million in snow removal services due to lower snowfall, net
of $8.0 million from acquired businesses. Snowfall for the period
was 50.1% of the weighted-average historical volume (relative to
the 10-year historical average as defined by NOAA1 for the
Company's footprint during the respective three-month periods).
Partially offsetting this was a $13.8 million increase in landscape
services revenue consisting of an $8.3 million contribution from
acquired businesses and an increase of $5.5 million, or 1.6%, in
underlying commercial landscape services underpinned by contract
services growth.
Adjusted EBITDA for the Maintenance Services Segment for the
three months ended March 31, 2023 decreased by $11.2 million to
$51.7 million from $62.9 million in the 2022 period. Segment
Adjusted EBITDA Margin decreased 100 basis points, to 10.4%, in the
three months ended March 31, 2023, from 11.4% in the 2022 period.
The decreases in Segment Adjusted EBITDA and Segment Adjusted
EBITDA Margin were driven by the decrease in snow removal services
revenues described above, partially offset by an increased
contribution from both contract and ancillary services.
For the six months ended March 31, 2023, Maintenance Services
net service revenues decreased by $10.5 million, or 1.1%, from the
2022 period. The decrease was driven by a decrease of $43.6 million
in snow removal services due to lower snowfall, net of $15.6
million from acquired businesses. Snowfall for the period was 62.0%
of the weighted-average historical volume (relative to the 10-year
historical average as defined by NOAA1 for the Company's footprint
during the respective six-month periods). Partially offsetting this
was a $33.1 million increase in landscape services revenue
consisting of a $21.4 million contribution from acquired businesses
and an increase of $11.7 million, or 1.6%, in underlying commercial
landscape services underpinned by contract services growth.
Adjusted EBITDA for the Maintenance Services Segment for the six
months ended March 31, 2023 decreased by $6.0 million to $102.2
million from $108.2 million in the 2022 period. Segment Adjusted
EBITDA Margin decreased 50 basis points, to 10.4%, in the six
months ended March 31, 2023, from 10.9% in the 2022 period. The
decreases in Segment Adjusted EBITDA and Segment Adjusted EBITDA
Margin were driven by the decrease in snow removal services
revenues described above, partially offset by an increased
contribution from both contract and ancillary services.
1National Oceanic and Atmospheric Administration, U.S.
Department of Commerce
Development Services - Operating
Highlights
Three Months Ended March
31,
Six Months Ended March
31,
($ in millions)
2023
2022
Change
2023
2022
Change
Revenue
$
155.6
$
159.7
(2.6%)
$
329.9
$
314.4
4.9%
Adjusted EBITDA
$
13.1
$
12.8
2.3%
$
29.6
$
27.3
8.4%
Adjusted EBITDA Margin
8.4
%
8.0
%
40 bps
9.0
%
8.7
%
30 bps
Capital Expenditures
$
2.7
$
6.9
(60.9%)
$
4.7
$
8.1
(42.0%)
For the second quarter of fiscal 2023, revenue in the
Development Services Segment decreased by $4.1 million, or 2.6%,
compared to the prior year. The decrease was principally driven by
Development Services project volumes of $4.9 million, partially
offset by $0.8 million of revenue contributions from acquired
businesses.
Adjusted EBITDA for the Development Services Segment for the
three months ended March 31, 2023 increased $0.3 million, to $13.1
million, compared to the 2022 period. Segment Adjusted EBITDA
Margin increased 40 basis points, to 8.4% for the quarter from 8.0%
in the prior year. The increases in Segment Adjusted EBITDA and
Segment Adjusted EBITDA Margin were primarily driven by the mix of
projects relative to the prior year coupled with disciplined
management of materials costs.
For the six months ended March 31, 2023, revenue in the
Development Services Segment increased $15.5 million, or 4.9%,
compared to the 2022 period. The increase was principally driven by
an $11.4 million revenue contribution from acquired businesses
combined with an increase of $4.1 million due to additional project
volumes.
Adjusted EBITDA for the Development Services Segment for the six
months ended March 31, 2023 increased $2.3 million, to $29.6
million in the prior year. Segment Adjusted EBITDA Margin increased
30 basis points, to 9.0% for the period from 8.7% in the 2022
period. Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin
increased principally due to the increase in revenues described
above.
Total BrightView Cash Flow
Metrics
Six Months Ended March
31,
($ in millions)
2023
2022
Change
Net Cash Provided by Operating
Activities
$
55.0
$
42.3
30.0%
Free Cash Flow
$
15.9
$
(19.3
)
(182.4%)
Capital Expenditures
$
42.7
$
64.2
(33.5%)
Net cash provided by operating activities for the six months
ended March 31, 2023 increased $12.7 million, to $55.0 million,
from $42.3 million in the 2022 period. This increase was due to an
increase in cash provided by other operating assets and decreases
in cash used by accounts payable and other operating liabilities
and cash used by accounts receivable. This was partially offset by
a decrease in the cash provided by unbilled and deferred
revenue.
Free Cash Flow increased $35.2 million to an inflow of $15.9
million for the six months ended March 31, 2023 from an outflow of
$19.3 million in the prior year. The increase in Free Cash Flow was
due to an increase in net cash provided by operating activities, as
described above, coupled with a decrease in cash used for capital
expenditures, as described below.
For the six months ended March 31, 2023, capital expenditures
were $42.7 million, compared with $64.2 million in the prior year.
The Company also generated proceeds from the sale of property and
equipment of $3.6 million and $2.6 million during the six months
ended March 31, 2023 and 2022, respectively. Net of the proceeds
from the sale of property and equipment, net capital expenditures
represented 3.0% of revenue in the six months ended March 31, 2023,
a decrease of 170 bps compared to 4.7% for the six months ended
March 31, 2022.
Total BrightView Balance Sheet
Metrics
($ in millions)
March 31, 2023
December 31, 2022
September 30, 2022
Long-term debt, net
$
1,344.9
$
1,409.5
$
1,330.7
Total Financial Debt1
$
1,409.3
$
1,476.5
$
1,395.0
Minus:
Total Cash & Equivalents
11.0
22.4
20.1
Total Net Financial Debt2
$
1,398.3
$
1,454.1
$
1,374.9
Total Net Financial Debt to Adjusted
EBITDA ratio3
4.98x
4.95x
4.78x
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 March 31, 2023, the Company’s Total Net Financial Debt was
$1,398.3 million, a decrease of $55.8 million compared to $1,454.1
as of December 31, 2022. The Company’s Total Net Financial Debt to
Adjusted EBITDA ratio was 4.98x as of March 31, 2023, relatively
flat compared to 4.95x as of December 31, 2022.
Conference Call Information
A conference call to discuss the second quarter fiscal 2023
financial results is scheduled for May 4, 2023, at 10 a.m. ET. The
U.S. toll free dial-in for the conference call is (888) 396-8049
and the international dial-in is +1 (416) 764-8646. The Conference
ID is 96919339. 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
May 11, 2023. To access the recording, dial (877) 674-7070
(Conference ID 919339).
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 third quarter and full year 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., which
holds approximately 54% of our shares as of March 31, 2023, 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 (loss) 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 (Loss) Income: We define Adjusted Net (Loss) Income
as net (loss) 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 (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 (loss) income
or the ratio of net (loss) 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)*
March 31, 2023
September 30, 2022
Assets
Current assets:
Cash and cash equivalents
$
11.0
$
20.1
Accounts receivable, net
413.1
397.6
Unbilled revenue
120.4
130.2
Other current assets
108.9
129.2
Total current assets
653.4
677.1
Property and equipment, net
332.1
328.3
Intangible assets, net
153.8
174.3
Goodwill
2,023.4
2,008.8
Operating lease assets
81.7
81.6
Other assets
33.9
35.4
Total assets
$
3,278.3
$
3,305.5
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
140.8
$
151.2
Current portion of long-term debt
12.0
12.0
Deferred revenue
88.3
59.3
Current portion of self-insurance
reserves
50.5
45.6
Accrued expenses and other current
liabilities
183.3
193.5
Current portion of operating lease
liabilities
27.3
26.8
Total current liabilities
502.2
488.4
Long-term debt, net
1,344.9
1,330.7
Deferred tax liabilities
52.7
68.6
Self-insurance reserves
95.4
101.1
Long-term operating lease liabilities
60.8
61.3
Other liabilities
36.4
38.6
Total liabilities
2,092.4
2,088.7
Stockholders’ equity:
Preferred stock, $0.01 par value;
50,000,000 shares authorized; no shares issued or outstanding as of
March 31, 2023 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 March 31, 2023
and September 30, 2022, respectively
1.1
1.1
Treasury stock, at cost; 12,900,000 and
12,700,000 shares as of March 31, 2023 and September 30, 2022,
respectively
(169.4
)
(168.2
)
Additional paid-in-capital
1,522.8
1,509.5
Accumulated deficit
(168.5
)
(127.6
)
Accumulated other comprehensive (loss)
income
(0.1
)
2.0
Total stockholders’ equity
1,185.9
1,216.8
Total liabilities and stockholders’
equity
$
3,278.3
$
3,305.5
(*) Amounts may not total due to
rounding.
BrightView Holdings,
Inc.
Consolidated Statements of
Operations
(Unaudited)
Three Months Ended March
31,
Six Months Ended March
31,
2023
2022
2023
2022
(in millions)*
Net service revenues
$
650.4
$
711.9
$
1,306.3
$
1,303.8
Cost of services provided
503.3
554.8
1,011.6
1,006.8
Gross profit
147.1
157.1
294.7
297.0
Selling, general and administrative
expense
138.7
133.4
276.4
268.2
Amortization expense
11.0
12.0
22.9
25.5
(Loss) income from operations
(2.6
)
11.7
(4.6
)
3.3
Other (income) expense
(0.6
)
1.0
(1.4
)
0.4
Interest expense
27.7
10.1
50.9
19.7
(Loss) income before income taxes
(29.7
)
0.6
(54.1
)
(16.8
)
Income tax (benefit)
(7.7
)
(0.1
)
(13.2
)
(4.7
)
Net (loss) income
$
(22.0
)
$
0.7
$
(40.9
)
$
(12.1
)
(Loss) income per share:
Basic and diluted (loss) earnings per
share
$
(0.23
)
$
0.01
$
(0.44
)
$
(0.12
)
BrightView Holdings,
Inc.
Segment Reporting
(Unaudited)
Three Months Ended March
31,
Six Months Ended March
31,
2023
2022
2023
2022
(in millions)*
Maintenance Services
$
497.8
$
553.4
$
981.1
$
991.6
Development Services
155.6
159.7
329.9
314.4
Eliminations
(3.0
)
(1.2
)
(4.7
)
(2.2
)
Net Service Revenues
$
650.4
$
711.9
$
1,306.3
$
1,303.8
Maintenance Services
$
51.7
$
62.9
$
102.2
$
108.2
Development Services
13.1
12.8
29.6
27.3
Corporate
(18.0
)
(16.0
)
(36.5
)
(33.2
)
Adjusted EBITDA
$
46.8
$
59.7
$
95.3
$
102.3
Maintenance Services
$
12.7
$
27.1
$
36.7
$
48.9
Development Services
2.7
6.9
4.7
8.1
Corporate
0.1
1.7
1.3
7.2
Capital Expenditures
$
15.5
$
35.7
$
42.7
$
64.2
(*) Amounts may not total due to
rounding.
BrightView Holdings,
Inc.
Consolidated Statements of
Cash Flows
(Unaudited)
Six Months Ended March
31,
2023
2022
(in millions)*
Cash flows from operating activities:
Net (loss)
$
(40.9
)
$
(12.1
)
Adjustments to reconcile net (loss) to net
cash provided by operating activities:
Depreciation
54.5
45.8
Amortization of intangible assets
22.9
25.5
Amortization of financing costs and
original issue discount
1.8
1.9
Deferred taxes
(17.2
)
(10.5
)
Equity-based compensation
11.9
9.3
Realized (gain) loss on hedges
(4.3
)
0.1
Other non-cash activities, net
0.9
(0.1
)
Change in operating assets and
liabilities:
Accounts receivable
(17.2
)
(19.1
)
Unbilled and deferred revenue
37.5
47.9
Other operating assets
23.3
(10.9
)
Accounts payable and other operating
liabilities
(18.2
)
(35.5
)
Net cash provided by operating
activities
55.0
42.3
Cash flows from investing activities:
Purchase of property and equipment
(42.7
)
(64.2
)
Proceeds from sale of property and
equipment
3.6
2.6
Business acquisitions, net of cash
acquired
(13.8
)
(84.4
)
Other investing activities, net
1.1
0.3
Net cash (used) by investing
activities
(51.8
)
(145.7
)
Cash flows from financing activities:
Repayments of finance lease
obligations
(14.7
)
(11.7
)
Repayments of term loan
(6.0
)
(5.2
)
Repayments of receivables financing
agreement
(279.5
)
(95.0
)
Repayments of revolving credit
facility
(33.5
)
—
Proceeds from receivables financing
agreement, net of issuance costs
298.0
147.0
Proceeds from revolving credit
facility
33.5
80.0
Proceeds from issuance of common stock,
net of share issuance costs
0.7
0.9
Repurchase of common stock and
distributions
(1.2
)
(90.8
)
Contingent business acquisition
payments
(9.6
)
—
Net cash (used) provided by financing
activities
(12.3
)
25.2
Net change in cash and cash
equivalents
(9.1
)
(78.2
)
Cash and cash equivalents, beginning of
period
20.1
123.7
Cash and cash equivalents, end of
period
$
11.0
$
45.5
Supplemental Cash Flow
Information:
Cash (received) paid for income taxes,
net
$
(21.8
)
$
8.8
Cash paid for interest
$
37.2
$
17.7
(*) Amounts may not total due to
rounding.
BrightView Holdings,
Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(Unaudited)
Three Months Ended March
31,
Six Months Ended March
31,
(in millions)*
2023
2022
2023
2022
Adjusted EBITDA
Net (loss) income
$
(22.0
)
$
0.7
$
(40.9
)
$
(12.1
)
Plus:
Interest expense, net
27.7
10.1
50.9
19.7
Income tax (benefit)
(7.7
)
(0.1
)
(13.2
)
(4.7
)
Depreciation expense
27.4
24.4
54.5
45.8
Amortization expense
11.0
12.0
22.9
25.5
Business transformation and integration
costs (a)
4.1
2.4
8.7
8.3
Equity-based compensation (b)
6.3
4.6
12.0
9.4
COVID-19 related expenses (c)
—
5.6
0.4
10.4
Adjusted EBITDA
$
46.8
$
59.7
$
95.3
$
102.3
Adjusted Net (Loss) Income
Net (loss) income
$
(22.0
)
$
0.7
$
(40.9
)
$
(12.1
)
Plus:
Amortization expense
11.0
12.0
22.9
25.5
Business transformation and integration
costs (a)
4.1
2.4
8.7
8.3
Equity-based compensation (b)
6.3
4.6
12.0
9.4
COVID-19 related expenses (c)
—
5.6
0.4
10.4
Income tax adjustment (d)
(6.1
)
(7.0
)
(11.1
)
(15.0
)
Adjusted Net (Loss) Income
$
(6.7
)
$
18.3
$
(8.0
)
$
26.5
Free Cash Flow
Cash flows provided by operating
activities
$
84.6
$
64.7
$
55.0
$
42.3
Minus:
Capital expenditures
15.5
35.7
42.7
64.2
Plus:
Proceeds from sale of property and
equipment
2.3
1.5
3.6
2.6
Free Cash Flow
$
71.4
$
30.5
$
15.9
$
(19.3
)
(*) 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 March
31,
Six Months Ended March
31,
(in millions)*
2023
2022
2023
2022
Severance and related costs
$
1.8
$
—
$
1.9
$
0.3
Business integration (e)
—
0.5
2.5
4.5
IT infrastructure, transformation, and
other (f)
2.3
1.9
4.3
3.5
Business transformation and integration
costs
$
4.1
$
2.4
$
8.7
$
8.3
(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 March
31,
Six Months Ended March
31,
(in millions)*
2023
2022
2023
2022
Tax impact of pre-tax income
adjustments
$
6.8
$
7.0
$
12.8
$
15.0
Discrete tax items
(0.7
)
—
(1.7
)
—
Income tax adjustment
$
6.1
$
7.0
$
11.1
$
15.0
(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)*
March 31, 2023
December 31, 2022
September 30, 2022
Long-term debt, net
$
1,344.9
$
1,409.5
$
1,330.7
Plus:
Current portion of long-term debt
12.0
12.0
12.0
Financing costs, net
9.7
10.2
10.6
Present value of net minimum payment -
finance lease obligations (g)
42.7
44.8
41.7
Total Financial Debt
1,409.3
1,476.5
1,395.0
Less: Cash and cash equivalents
(11.0
)
(22.4
)
(20.1
)
Total Net Financial Debt
$
1,398.3
$
1,454.1
$
1,374.9
Total Net Financial Debt to Adjusted
EBITDA ratio
4.98x
4.95x
4.78x
(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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230503006031/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
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