- Total revenue increased 2.5% year-over-year to $766.0
million.
- Net income increased 55.6% year-over-year to $16.8 million;
reflects 80-basis point expansion in Net income margin.
- Adjusted EBITDA increased 8.0% to $101.8 million; Adjusted
EBITDA margin expansion of 70-basis points.
- Year-to-date net cash provided by operating activities of $89.3
million, an increase of $23.6 million or 35.9%
- Year-to-date free cash inflow of $38.2 million, an increase of
$55.2 million compared to an outflow of $17.0 million in the prior
year.
Company Provides
Fourth Quarter and Full Year Fiscal 2023 Guidance
- Fourth Quarter Total Revenue of $730 - $750 million, and
Adjusted EBITDA of $98 - $102 million.
- Full Year Total Revenue of $2.80 - $2.82 billion, and Adjusted
EBITDA of $295 - $300 million.
Adjusted EBITDA is a non-GAAP measure. Refer to the “Non-GAAP
Financial Measures” section for more information. The Company is
not providing a quantitative reconciliation of its financial
outlook for Adjusted EBITDA to net (loss) income, its corresponding
GAAP measure, because the GAAP measure that is excluded from its
non-GAAP financial outlook is difficult to reliably predict or
estimate without unreasonable effort due to its dependence on
future uncertainties, such as items discussed below. Additionally,
information that is currently not available to the Company could
have a potentially unpredictable & potentially significant
impact on its future GAAP financial results.
BrightView Holdings, Inc. (NYSE: BV) (the “Company” or
“BrightView”), the leading commercial landscaping services company
in the United States, today reported unaudited results for the
third quarter ended June 30, 2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230802918551/en/
Fiscal 3Q23 - Total Revenue (Graphic:
Business Wire)
“I am pleased to report solid third quarter results that reflect
topline growth with meaningful margin expansion and continued
improvement in our free cash flow,” said Jim Abrahamson,
BrightView’s Interim President and Chief Executive Officer. “During
the quarter we realized initial returns from Project Accelerate and
expanded our strategic initiatives to include additional
opportunities that can ultimately drive value creation and
shareholder return. Across BrightView, there is a renewed focus on
operational excellence and our strategy to achieve long-term
success.”
Fiscal 2023 Results – Total BrightView
Total BrightView - Operating
Highlights
Three Months Ended June
30,
Nine Months Ended June
30,
($ in millions, except per share
figures)
2023
2022
Change
2023
2022
Change
Revenue
$
766.0
$
747.4
2.5%
$
2,072.3
$
2,051.2
1.0%
Net Income (Loss)
$
16.8
$
10.8
55.6%
$
(24.1
)
$
(1.3
)
NM
Net Income (Loss) Margin
2.2
%
1.4
%
80 bps
(1.2
%)
(0.1
%)
(110) bps
Adjusted EBITDA
$
101.8
$
94.3
8.0%
$
197.1
$
196.6
0.3%
Adjusted EBITDA Margin
13.3
%
12.6
%
70 bps
9.5
%
9.6
%
(10) bps
Adjusted Net Income
$
41.4
$
39.8
4.0%
$
33.5
$
66.4
(49.5%)
Basic Income (Loss) per Share
$
0.18
$
0.12
50.0%
$
(0.26
)
$
(0.01
)
NM
Adjusted Earnings per Share
$
0.44
$
0.43
2.3%
$
0.36
$
0.65
(44.6%)
Weighted average number of common shares
outstanding
93.5
93.2
0.3%
93.4
102.7
(9.1%)
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 third quarter of fiscal 2023, total revenue increased
2.5% to $766.0 million driven by an increase of $17.0 million in
Development Services, or 2.3% of the total increase year-over-year
and an increase of $6.4 million in Maintenance Land growth, or 0.9%
of the total increase year-over-year. These increases were
partially offset by a $3.6 million decrease in snow removal
services organic revenue year-over-year.
For the nine months ended June 30, 2023, total revenue increased
1.0% to $2,072.3 million driven by $55.9 million revenue
contribution from acquired businesses, or 2.7% of the total
increase year-over-year and an increase of $10.6 million in
Maintenance Land organic growth, or 0.5% of the total increase
year-over-year. These increases were partially offset by a decrease
of $62.8 million in snow removal services organic revenues
year-over-year associated with the lower snowfall in the
period.
Fiscal 2023 Results – Segments
Maintenance Services - Operating
Highlights
Three Months Ended June
30,
Nine Months Ended June
30,
($ in millions)
2023
2022
Change
2023
2022
Change
Landscape Maintenance
$
555.3
$
548.9
1.2%
$
1,335.8
$
1,296.3
3.0%
Snow Removal
$
9.3
$
12.9
(27.9%)
$
209.9
$
257.1
(18.4%)
Total Revenue
$
564.6
$
561.8
0.5%
$
1,545.7
$
1,553.4
(0.5%)
Adjusted EBITDA
$
94.0
$
89.2
5.4%
$
196.2
$
197.4
(0.6%)
Adjusted EBITDA Margin
16.6
%
15.9
%
70 bps
12.7
%
12.7
%
0 bps
Capital Expenditures
$
9.3
$
18.5
(49.7%)
$
46.0
$
67.4
(31.8%)
For the third quarter of fiscal 2023, revenue in the Maintenance
Services Segment increased by $2.8 million, or 0.5%, from the 2022
period. The increase was driven by $7.5 million contribution from
acquired businesses. Partially offsetting this was a decrease of
$3.6 million in snow removal services and a decrease of $1.1
million in underlying commercial landscape services.
Adjusted EBITDA for the Maintenance Services Segment for the
three months ended June 30, 2023 increased by $4.8 million to $94.0
million from $89.2 million in the 2022 period. Segment Adjusted
EBITDA Margin increased 70 basis points, to 16.6%, in the three
months ended June 30, 2023, from 15.9% in the 2022 period. The
increases in Segment Adjusted EBITDA and Segment Adjusted EBITDA
Margin were driven by disciplined management of labor costs in
underlying commercial landscape services, coupled with lower fuel
costs and savings from cost management initiatives, partially
offset by the decrease in snow removal services revenue discussed
above.
For the nine months ended June 30, 2023, Maintenance Services
net service revenues decreased by $7.7 million, or 0.5%, from the
2022 period. The decrease was driven by a decrease of $47.2 million
in snow removal services due to lower snowfall, net of $15.6
million from acquired businesses. Partially offsetting this was a
$39.5 million increase in landscape services revenue consisting of
a $28.9 million contribution from acquired businesses and an
increase of $10.6 million, or 0.8%, in underlying commercial
landscape services underpinned by contract services growth and to a
lesser extent ancillary services growth.
Adjusted EBITDA for the Maintenance Services Segment for the
nine months ended June 30, 2023 decreased by $1.2 million to $196.2
million from $197.4 million in the 2022 period. Segment Adjusted
EBITDA Margin was 12.7% in each of the nine months ended June 30,
2023 and 2022. The decrease in Segment Adjusted EBITDA was driven
by the decrease in snow removal services revenues described above,
partially offset by increases in revenues from underlying
commercial landscape services and acquisitions discussed above.
Development Services - Operating
Highlights
Three Months Ended June
30,
Nine Months Ended June
30,
($ in millions)
2023
2022
Change
2023
2022
Change
Revenue
$
203.4
$
186.4
9.1%
$
533.3
$
500.8
6.5%
Adjusted EBITDA
$
24.1
$
20.9
15.3%
$
53.6
$
48.2
11.2%
Adjusted EBITDA Margin
11.8
%
11.2
%
60 bps
10.1
%
9.6
%
50 bps
Capital Expenditures
$
2.5
$
2.8
(10.7%)
$
7.2
$
10.9
(33.9%)
For the third quarter of fiscal 2023, revenue in the Development
Services Segment increased by $17.0 million, or 9.1%, compared to
the prior year. The increase was principally driven by an increase
in Development Services project volumes of $17.0 million.
Adjusted EBITDA for the Development Services Segment for the
three months ended June 30, 2023 increased $3.2 million, to $24.1
million, compared to the 2022 period. Segment Adjusted EBITDA
Margin increased 60 basis points, to 11.8% for the quarter from
11.2% in the prior year. The increases in Segment Adjusted EBITDA
and Segment Adjusted EBITDA Margin were primarily driven by the
increase in project volumes described above, partially offset by
increased labor and materials costs attributable to the mix of
projects relative to the prior year.
For the nine months ended June 30, 2023, revenue in the
Development Services Segment increased $32.5 million, or 6.5%,
compared to the 2022 period. The increase was principally driven by
an increase of $21.1 million due to additional project volumes
combined with an $11.4 million revenue contribution from acquired
businesses.
Adjusted EBITDA for the Development Services Segment for the
nine months ended June 30, 2023 increased $5.4 million, to $53.6
million in the prior year. Segment Adjusted EBITDA Margin increased
50 basis points, to 10.1% for the period from 9.6% in the 2022
period. Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin
increased principally due to the increase in revenues described
above coupled with disciplined management of materials costs.
Total BrightView Cash Flow
Metrics
Nine Months Ended June
30,
($ in millions)
2023
2022
Change
Net Cash Provided by Operating
Activities
$
89.3
$
65.7
35.9%
Free Cash Flow
$
38.2
$
(17.0
)
(324.7%)
Capital Expenditures
$
57.9
$
88.1
(34.3%)
Net cash provided by operating activities for the nine months
ended June 30, 2023 increased $23.6 million, to $89.3 million, from
$65.7 million in the 2022 period. This increase was due to a
decrease in cash used by accounts payable and other operating
liabilities and an increase in cash provided by other operating
assets. This was partially offset by an increase in cash used by
accounts receivable and a decrease in the cash provided by unbilled
and deferred revenue.
Free Cash Flow increased $55.2 million to an inflow of $38.2
million for the nine months ended June 30, 2023 from an outflow of
$17.0 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 nine months ended June 30, 2023, capital expenditures
were $57.9 million, compared with $88.1 million in the prior year.
The Company also generated proceeds from the sale of property and
equipment of $6.8 million and $5.4 million during the nine months
ended June 30, 2023 and 2022, respectively. Net of the proceeds
from the sale of property and equipment, net capital expenditures
represented 2.5% of revenue in the nine months ended June 30, 2023,
a decrease of 150 bps compared to 4.0% for the nine months ended
June 30, 2022.
Total BrightView Balance Sheet
Metrics
($ in millions)
June 30, 2023
March 31, 2023
September 30, 2022
Long-term debt, net
$
1,336.2
$
1,344.9
$
1,330.7
Total Financial Debt1
$
1,404.3
$
1,409.3
$
1,395.0
Minus:
Total Cash & Equivalents
9.6
11.0
20.1
Total Net Financial Debt2
$
1,394.7
$
1,398.3
$
1,374.9
Total Net Financial Debt to Adjusted
EBITDA ratio3
4.8x
5.0x
4.8x
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 June 30, 2023, the Company’s Total Net Financial Debt was
$1,394.7 million, a decrease of $3.6 million compared to $1,398.3
as of March 31, 2023. The Company’s Total Net Financial Debt to
Adjusted EBITDA ratio was 4.8x and 5.0x as of June 30, 2023 and
March 31, 2023, respectively.
Conference Call Information
A conference call to discuss the third quarter fiscal 2023
financial results is scheduled for August 3, 2023, at 10 a.m. ET.
The U.S. toll free dial-in for the conference call is (833)
470-1428 and the international dial-in is +1 (404) 975-4839. The
Conference ID is 406230. 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
August 10, 2023. To access the recording, dial (866) 813-9403
(Conference ID 986902).
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 the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
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
and full year fiscal 2023 guidance and other statements related to
our goals, beliefs, business outlook, business trends, expectations
regarding our industry, strategy, future events, future operations,
future liquidity and financial position, future revenues, projected
costs, prospects, plans and objectives of management, are
forward-looking statements. Words such as “outlook,” “guidance,”
“projects,” “continues,” “believes,” “expects,” “may,” “will,”
“should,” “seeks,” “intends,” “plans,” “estimates,” or
“anticipates,” or the negative variations 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 based
upon our current expectations, beliefs, estimates and projections,
and various assumptions, many of which are subject to risks,
uncertainties, assumptions, changes in circumstances or other
factors outside of the Company’s control 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; 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 and targets and the
possibility that complying with ESG standards and meeting our goals
may be significantly more costly than anticipated; 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; 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 June 30, 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, and 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 (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 Income: We define Adjusted Net 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 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 (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 the same
or other similarly titled measures of other companies and can
differ significantly from company to company.
BrightView Holdings,
Inc.
Consolidated Balance
Sheets
(Unaudited)
(in millions)*
June 30, 2023
September 30, 2022
Assets
Current assets:
Cash and cash equivalents
$
9.6
$
20.1
Accounts receivable, net
445.7
397.6
Unbilled revenue
138.2
130.2
Other current assets
93.2
129.2
Total current assets
686.7
677.1
Property and equipment, net
330.7
328.3
Intangible assets, net
143.0
174.3
Goodwill
2,021.5
2,008.8
Operating lease assets
84.8
81.6
Other assets
53.0
35.4
Total assets
$
3,319.7
$
3,305.5
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
144.8
$
151.2
Current portion of long-term debt
12.0
12.0
Deferred revenue
79.4
59.3
Current portion of self-insurance
reserves
52.6
45.6
Accrued expenses and other current
liabilities
200.3
193.5
Current portion of operating lease
liabilities
27.3
26.8
Total current liabilities
516.4
488.4
Long-term debt, net
1,336.2
1,330.7
Deferred tax liabilities
50.5
68.6
Self-insurance reserves
95.6
101.1
Long-term operating lease liabilities
63.8
61.3
Other liabilities
36.8
38.6
Total liabilities
2,099.3
2,088.7
Stockholders’ equity:
Preferred stock, $0.01 par value;
50,000,000 shares authorized; no shares issued or outstanding as of
June 30, 2023 and September 30, 2022
—
—
Common stock, $0.01 par value; 500,000,000
shares authorized; 106,300,000 and 105,700,000 shares issued and
93,400,000 and 93,000,000 shares outstanding as of June 30, 2023
and September 30, 2022, respectively
1.1
1.1
Treasury stock, at cost; 12,900,000 and
12,700,000 shares as of June 30, 2023 and September 30, 2022,
respectively
(169.5
)
(168.2
)
Additional paid-in capital
1,526.7
1,509.5
Accumulated deficit
(151.7
)
(127.6
)
Accumulated other comprehensive income
13.8
2.0
Total stockholders’ equity
1,220.4
1,216.8
Total liabilities and stockholders’
equity
$
3,319.7
$
3,305.5
(*) Amounts may not total due to
rounding.
BrightView Holdings,
Inc.
Consolidated Statements of
Operations
(Unaudited)
Three Months Ended June
30,
Nine Months Ended June
30,
2023
2022
2023
2022
(in millions)*
Net service revenues
$
766.0
$
747.4
$
2,072.3
$
2,051.2
Cost of services provided
567.4
558.2
1,579.0
1,565.0
Gross profit
198.6
189.2
493.3
486.2
Selling, general and administrative
expense
136.6
131.3
413.0
399.5
Amortization expense
10.8
13.2
33.7
38.7
Income from operations
51.2
44.7
46.6
48.0
Other (income) expense
(0.6
)
14.6
(2.1
)
15.1
Interest expense
27.4
14.8
78.3
34.5
Income (loss) before income taxes
24.4
15.3
(29.6
)
(1.6
)
Income tax expense (benefit)
7.6
4.5
(5.5
)
(0.3
)
Net income (loss)
$
16.8
$
10.8
$
(24.1
)
$
(1.3
)
Earnings (loss) per share:
Basic and diluted earnings (loss) per
share
$
0.18
$
0.12
$
(0.26
)
$
(0.01
)
BrightView Holdings,
Inc.
Segment Reporting
(Unaudited)
Three Months Ended June
30,
Nine Months Ended June
30,
2023
2022
2023
2022
(in millions)*
Maintenance Services
$
564.6
$
561.8
$
1,545.7
$
1,553.4
Development Services
203.4
186.4
533.3
500.8
Eliminations
(2.0
)
(0.8
)
(6.7
)
(3.0
)
Net Service Revenues
$
766.0
$
747.4
$
2,072.3
$
2,051.2
Maintenance Services
$
94.0
$
89.2
$
196.2
$
197.4
Development Services
24.1
20.9
53.6
48.2
Corporate
(16.3
)
(15.8
)
(52.7
)
(49.0
)
Adjusted EBITDA
$
101.8
$
94.3
$
197.1
$
196.6
Maintenance Services
$
9.3
$
18.5
$
46.0
$
67.4
Development Services
2.5
2.8
7.2
10.9
Corporate
3.4
2.6
4.7
9.8
Capital Expenditures
$
15.2
$
23.9
$
57.9
$
88.1
(*) Amounts may not total due to
rounding.
BrightView Holdings,
Inc.
Consolidated Statements of
Cash Flows
(Unaudited)
Nine Months Ended June
30,
2023
2022
(in millions)*
Cash flows from operating activities:
Net (loss)
$
(24.1
)
$
(1.3
)
Adjustments to reconcile net (loss) to net
cash provided by operating activities:
Depreciation
80.9
71.5
Amortization of intangible assets
33.7
38.7
Amortization of financing costs and
original issue discount
2.7
2.8
Loss on debt extinguishment
—
12.6
Deferred taxes
(23.0
)
(12.7
)
Equity-based compensation
15.7
14.0
Realized (gain) loss on hedges
(6.9
)
0.2
Other non-cash activities, net
0.1
(2.5
)
Change in operating assets and
liabilities:
Accounts receivable
(53.3
)
(28.8
)
Unbilled and deferred revenue
11.0
16.0
Other operating assets
17.3
(7.6
)
Accounts payable and other operating
liabilities
35.2
(37.2
)
Net cash provided by operating
activities
89.3
65.7
Cash flows from investing activities:
Purchase of property and equipment
(57.9
)
(88.1
)
Proceeds from sale of property and
equipment
6.8
5.4
Business acquisitions, net of cash
acquired
(13.8
)
(89.4
)
Other investing activities, net
1.9
—
Net cash (used) by investing
activities
(63.0
)
(172.1
)
Cash flows from financing activities:
Repayments of finance lease
obligations
(20.9
)
(18.1
)
Repayments of term loan
(9.0
)
(1,003.3
)
Repayments of receivables financing
agreement
(448.0
)
(203.0
)
Repayments of revolving credit
facility
(33.5
)
(165.0
)
Proceeds from term loan, net of issuance
costs
—
1,180.1
Proceeds from receivables financing
agreement, net of issuance costs
460.0
223.7
Proceeds from revolving credit
facility
33.5
165.0
Debt issuance costs
—
(4.6
)
Proceeds from issuance of common stock,
net of share issuance costs
1.0
1.3
Repurchase of common stock and
distributions
(1.3
)
(163.7
)
Contingent business acquisition
payments
(18.5
)
—
Other financing activities, net
(0.1
)
(3.4
)
Net cash (used) provided by financing
activities
(36.8
)
9.0
Net change in cash and cash
equivalents
(10.5
)
(97.4
)
Cash and cash equivalents, beginning of
period
20.1
123.7
Cash and cash equivalents, end of
period
$
9.6
$
26.3
Supplemental Cash Flow
Information:
Cash (received) paid for income taxes,
net
$
(18.4
)
$
16.5
Cash paid for interest
$
62.9
$
31.1
(*) Amounts may not total due to
rounding.
BrightView Holdings,
Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(Unaudited)
Three Months Ended June
30,
Nine Months Ended June
30,
(in millions)*
2023
2022
2023
2022
Adjusted EBITDA
Net income (loss)
$
16.8
$
10.8
$
(24.1
)
$
(1.3
)
Plus:
Interest expense, net
27.4
14.8
78.3
34.5
Income tax expense (benefit)
7.6
4.5
(5.5
)
(0.3
)
Depreciation expense
26.4
25.7
80.9
71.5
Amortization expense
10.8
13.2
33.7
38.7
Business transformation and integration
costs (a)
8.9
4.3
17.5
12.7
Offering-related expenses (b)
—
0.1
—
0.1
Equity-based compensation (c)
3.9
4.8
15.9
14.2
COVID-19 related expenses (d)
—
3.5
0.4
13.9
Debt extinguishment (e)
—
12.6
—
12.6
Adjusted EBITDA
$
101.8
$
94.3
$
197.1
$
196.6
Adjusted Net Income
Net income (loss)
$
16.8
$
10.8
$
(24.1
)
$
(1.3
)
Plus:
Amortization expense
10.8
13.2
33.7
38.7
Business transformation and integration
costs (a)
8.9
4.3
17.5
12.7
Offering-related expenses (b)
—
0.1
—
0.1
Equity-based compensation (c)
3.9
4.8
15.9
14.2
COVID-19 related expenses (d)
—
3.5
0.4
13.9
Debt extinguishment (e)
—
12.6
—
12.6
Income tax adjustment (f)
1.0
(9.5
)
(9.9
)
(24.5
)
Adjusted Net Income
$
41.4
$
39.8
$
33.5
$
66.4
Free Cash Flow
Cash flows provided by operating
activities
$
34.3
$
23.4
$
89.3
$
65.7
Minus:
Capital expenditures
15.2
23.9
57.9
88.1
Plus:
Proceeds from sale of property and
equipment
3.2
2.8
6.8
5.4
Free Cash Flow
$
22.3
$
2.3
$
38.2
$
(17.0
)
(*) 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 June
30,
Nine Months Ended June
30,
(in millions)*
2023
2022
2023
2022
Severance and related costs
$
4.1
$
0.6
$
6.0
$
0.9
Business integration (g)
2.8
0.3
5.3
4.8
IT infrastructure, transformation, and
other (h)
2.0
3.4
6.2
7.0
Business transformation and integration
costs
$
8.9
$
4.3
$
17.5
$
12.7
(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 and cleaning and supply purchases, and other.
(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 a reduction of
income tax expense (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 June
30,
Nine Months Ended June
30,
(in millions)*
2023
2022
2023
2022
Tax impact of pre-tax income
adjustments
$
(2.0
)
$
9.7
$
10.8
$
24.7
Discrete tax items
1.0
(0.2
)
(0.9
)
(0.2
)
Income tax adjustment
$
(1.0
)
$
9.5
$
9.9
$
24.5
(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)*
June 30, 2023
March 31, 2023
September 30, 2022
Long-term debt, net
$
1,336.2
$
1,344.9
$
1,330.7
Plus:
Current portion of long-term debt
12.0
12.0
12.0
Financing costs, net
9.4
9.7
10.6
Present value of net minimum payment -
finance lease obligations (i)
46.7
42.7
41.7
Total Financial Debt
1,404.3
1,409.3
1,395.0
Less: Cash and cash equivalents
(9.6
)
(11.0
)
(20.1
)
Total Net Financial Debt
$
1,394.7
$
1,398.3
$
1,374.9
Total Net Financial Debt to Adjusted
EBITDA ratio
4.8x
5.0x
4.8x
(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/20230802918551/en/
For More Information: Investor Relations
IR@BrightView.com
News Media David Freireich, Vice President of
Communications & Public Affairs (484) 567-7244
David.Freireich@BrightView.com
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