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
three months and full fiscal year ended September 30, 2024.
- Fourth quarter total revenue decreased 2.0% year-over-year to
$728.7 million.
- Fourth quarter net income increased 56.1% year-over-year to
$25.6 million; Net income margin expanded by 10 basis points.
- Fourth quarter Adjusted EBITDA2 increased 3.5% year-over-year
to a fourth quarter record $105.2 million; Adjusted EBITDA margin2
expanded by 70 basis points.
- Full year net cash provided by operating activities increased
58.3% year-over-year to $205.6 million.
- Full year free cash flow2 increased $65.1 million
year-over-year to $145.3 million.
Company Provides
Fiscal Year 2025 Guidance1
2025
Total Revenue
$2.750 - $2.840 billion
Adjusted EBITDA2
$335 - $355 million
Free Cash Flow2
$40 to $60 million
“Fourth quarter results reconfirmed the delivery of a breakout
year in fiscal 2024 as we continue to transform this business. Our
One BrightView culture is gaining traction, and we are positioned
for fiscal 2025 to be a second consecutive record year,” said
BrightView President and Chief Executive Officer Dale Asplund. “Our
multi-faceted transformation has positioned us to prioritize our
employees and customers and reinvest in our business, ultimately
leading to sustainable growth and value creation for all of our
stakeholders.”
-------
1For assumptions underlying the 2025
guidance, see the Q4 2024 presentation at investor.brightview.com 2
Adjusted EBITDA, Adjusted EBITDA margin and free cash flow are
non-GAAP measures. Refer to the “Non-GAAP Financial Measures”
section for more information. The Company is not providing a
quantitative reconciliation of its financial outlook for Adjusted
EBITDA to net income (loss) or free cash flow to net cash provided
by operating activities, their corresponding GAAP measures, because
the respective GAAP measures that are excluded from the non-GAAP
financial outlook is difficult to reliably predict or estimate
without unreasonable effort due to the dependence on future
uncertainties, such as items discussed below. Additionally,
information that is currently not available to the Company could
have a potentially unpredictable and potentially significant impact
on its future GAAP financial results.
Fiscal 2024 Results – Total BrightView
Total BrightView - Operating
Highlights
Three Months Ended September
30,
Year Ended September
30,
($ in millions, except per share
figures)
2024
2023
Change
2024
2023
Change
Revenue
$
728.7
$
743.7
(2.0
%)
$
2,767.1
$
2,816.0
(1.7
%)
Net Income (Loss)
$
25.6
$
16.4
56.1
%
$
66.4
$
(7.7
)
962.3
%
Net Income (Loss) Margin
3.5
%
2.2
%
130
bps
2.4
%
(0.3
%)
270
bps
Adjusted EBITDA
$
105.2
$
101.6
3.5
%
$
324.7
$
298.7
8.7
%
Adjusted EBITDA Margin
14.4
%
13.7
%
70
bps
11.7
%
10.6
%
110
bps
Net income (loss) available to common
shareholders
$
10.6
$
11.0
(3.6
%)
$
19.5
$
(10.9
)
278.9
%
Weighted average number of common shares
outstanding
94.7
93.4
1.4
%
94.7
93.4
1.4
%
Basic Earnings (Loss) per Share
$
0.11
$
0.12
(8.3
%)
$
0.20
$
(0.12
)
266.7
%
Adjusted Net Income
$
44.8
$
27.9
60.6
%
$
113.1
$
61.4
84.3
%
Adjusted weighted average number of common
shares outstanding
148.9
146.7
1.5
%
148.8
146.7
1.4
%
Adjusted Earnings per Share
$
0.30
$
0.19
57.9
%
$
0.76
$
0.42
81.0
%
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income,
Free Cash Flow, Adjusted Earnings per Share and Adjusted weighted
average number of common shares outstanding 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 three months ended September 30, 2024, total revenue
decreased 2.0% to $728.7 million, from $743.7 million in the 2023
period. The decrease was driven by a decrease in Maintenance
Services revenues of $34.5 million, partially offset by an increase
in Development Services revenues of $19.4 million as discussed
further below in Segment Results.
For the three months ended September 30, 2024, Adjusted EBITDA
increased 3.5% to $105.2 million, from $101.6 million in the 2023
period. The increase was driven by an increase in Development
Services EBITDA of $12.1 million, partially offset by a decrease in
Corporate EBITDA driven by the prior year disposal of corporate
assets.
For the fiscal year ended September 30, 2024, total revenue
decreased 1.7% to $2,767.1 million, from $2,816.0 million in the
2023 period. The decrease was driven by a decrease in Maintenance
Services revenues of $102.5 million, partially offset by an
increase in Development Services revenues of $50.8 million, as
discussed further below in Segment Results.
For the fiscal year ended September 30, 2024, Adjusted EBITDA
increased 8.7% to $324.7 million, from $298.7 million in the 2023
period. The increase was driven by an increase in Development
Services EBITDA of $23.5 million and an increase in Maintenance
Services EBITDA of $1.8 million.
Fiscal 2024 Results – Segments
Maintenance Services - Operating
Highlights
Three Months Ended September
30,
Year Ended September
30,
($ in millions)
2024
2023
Change
2024
2023
Change
Landscape Maintenance
$
487.0
$
521.7
(6.7
%)
$
1,743.2
$
1,857.5
(6.2
%)
Snow Removal
$
(0.5
)
$
(0.9
)
44.4
%
$
220.8
$
209.0
5.6
%
Total Revenue
$
486.5
$
520.8
(6.6
%)
$
1,964.0
$
2,066.5
(5.0
%)
Adjusted EBITDA
$
81.8
$
81.7
0.1
%
$
279.7
$
277.9
0.6
%
Adjusted EBITDA Margin
16.8
%
15.7
%
110
bps
14.2
%
13.4
%
80
bps
Capital Expenditures
$
29.3
$
10.1
190.1
%
$
61.3
$
56.1
9.3
%
For the fourth quarter of fiscal 2024, revenue in the
Maintenance Services Segment decreased by $34.3 million, or 6.6%,
from the prior year. The decrease was driven by a shortfall in
underlying commercial landscape services, underpinned by strategic
reductions of non-core businesses and to a lesser extent reduced
ancillary services.
Adjusted EBITDA for the Maintenance Services Segment for the
three months ended September 30, 2024 increased by $0.1 million to
$81.8 million from $81.7 million in the 2023 period. Segment
Adjusted EBITDA Margin increased 110 basis points to 16.8%, in the
three months ended September 30, 2024 from 15.7% in the 2023
period. The increase in Segment Adjusted EBITDA Margin was
principally driven by lower overhead as a result of the Company's
cost management initiatives combined with the Company's strategic
reductions of non-core businesses.
For the fiscal year ended September 30, 2024, revenue in the
Maintenance Services Segment decreased by $102.5 million, or 5.0%,
from the 2023 period. The decrease was driven by a $115.2 million,
or 5.6%, decrease in underlying commercial landscape services,
largely underpinned by strategic reductions in our non-core
businesses, as well as a decline in our ancillary services
business. This was partially offset by a $11.8 million increase in
snow removal services revenue, primarily due to increased snow
removal services volume.
Adjusted EBITDA for the Maintenance Services Segment for the
fiscal year ended September 30, 2024 increased by $1.8 million to
$279.7 million from $277.9 million in the 2023 period. Segment
Adjusted EBITDA Margin increased 80 basis points to 14.2% in the
year ended September 30, 2024, from 13.4% in the 2023 period. The
increases in Segment Adjusted EBITDA and Segment Adjusted EBITDA
Margin were principally driven by lower labor costs as a result of
the Company's cost management initiatives combined with the
Company's strategic reductions of non-core businesses.
Development Services - Operating
Highlights
Three Months Ended September
30,
Year Ended September
30,
($ in millions)
2024
2023
Change
2024
2023
Change
Revenue
$
244.1
$
224.7
8.6
%
$
808.8
$
758.0
6.7
%
Adjusted EBITDA
$
41.2
$
29.1
41.6
%
$
106.3
$
82.8
28.4
%
Adjusted EBITDA Margin
16.9
%
13.0
%
390
bps
13.1
%
10.9
%
220
bps
Capital Expenditures
$
2.6
$
1.0
160.0
%
$
12.8
$
8.2
56.1
%
For the fourth quarter of fiscal 2024, revenue in the
Development Services Segment increased by $19.4 million, or 8.6%,
compared to the prior year. The increase was driven by an increase
in Development Services project volumes.
Adjusted EBITDA for the Development Services Segment for the
three months ended September 30, 2024 increased $12.1 million to
$41.2 million compared to the 2023 period and Adjusted EBITDA
Margin increased 390 basis points to 16.9% for the quarter from
13.0% in the prior year. The increases in Segment Adjusted EBITDA
and Segment Adjusted EBITDA Margin were primarily driven by the
increase in revenues described above.
For the fiscal year ended September 30, 2024, revenue in the
Development Services Segment increased by $50.8 million, or 6.7%,
compared to the 2023 period. The increase was driven by an increase
in Development Services project volumes.
Adjusted EBITDA for the Development Services Segment fiscal year
ended September 30, 2024 increased $23.5 million to $106.3 million
compared to the 2023 period. Segment Adjusted EBITDA Margin
increased 220 basis points to 13.1% for the period from 10.9% in
the 2023 period. The increases in Segment Adjusted EBITDA and
Segment Adjusted EBITDA Margin were primarily driven by the
increase in revenues described above.
Total BrightView Cash Flow
Metrics
Year Ended September
30,
($ in millions)
2024
2023
Change
Net Cash Provided by Operating
Activities
$
205.6
$
129.9
58.3%
Free Cash Flow
$
145.3
$
80.2
81.2%
Capital Expenditures
$
78.4
$
71.3
10.0%
Net cash provided by operating activities for the fiscal year
ended September 30, 2024 increased $75.7 million to $205.6 million
from $129.9 million in the prior year. This increase was due to an
increase in cash provided by accounts receivable and unbilled and
deferred revenue. This was partially offset by increases in cash
used for other operating assets and accounts payable and other
operating liabilities.
Free Cash Flow increased $65.1 million to $145.3 million for the
fiscal year ended September 30, 2024 from $80.2 million in the
prior year. The increase in free cash flows was driven by an
increase in cash provided by operating activities of $75.7 million
in comparison to the 2023 period.
For the fiscal year ended September 30, 2024, capital
expenditures were $78.4 million compared with $71.3 million in the
2023 period. The Company also generated proceeds from the sale of
property and equipment of $18.1 million and $21.6 million during
the fiscal year ended September 30, 2024 and 2023, respectively.
Net of the proceeds from the sale of property and equipment, net
capital expenditures represented 2.2% and 1.8% of revenue in the
fiscal year ended September 30, 2024 and 2023, respectively.
Total BrightView Balance Sheet
Metrics
($ in millions)
September 30, 2024
September 30, 2023
September 30, 2022
Long-term debt, net
$
802.5
$
888.1
$
1,330.7
Total Financial Debt1
877.3
937.5
1,400.0
Minus:
Total Cash & Equivalents
140.4
67.0
9.6
Total Net Financial Debt2
$
736.9
$
870.5
$
1,394.7
Total Net Financial Debt to Adjusted
EBITDA ratio3
2.3x
2.9x
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 September 30, 2024, the Company’s Total Net Financial Debt
was $736.9 million, a decrease of $133.6 million compared to $870.5
million as of September 30, 2023. The Company’s Total Net Financial
Debt to Adjusted EBITDA ratio was 2.3x, 2.9x and 4.8x as of
September 30, 2024, September 30, 2023, and September 30, 2022
respectively. The year-over-year decreases in Total Net Financial
Debt and Total Net Financial Debt to Adjusted EBITDA ratio were
primarily driven by the increase in the Company's Cash and
Equivalents, repayment of $87.3 million under the receivable
Financing Agreement, and an increase in Adjusted EBITDA.
Conference Call Information
A conference call to discuss the fourth quarter and full year
fiscal 2024 financial results is scheduled for November 14, 2024,
at 8:30 a.m. ET. The U.S. toll free dial-in for the conference call
is (800) 225-9448 and the international dial-in is (203) 518-9708.
The access code is BRIGHT. A live audio webcast of the conference
call will be available on the Company’s investor website
https://investor.brightview.com, where presentation materials will
be posted prior to the call. A replay of the call will be available
until 11:59 p.m. ET on November 28, 2024. To access the recording,
dial (800) 839-9409 (access code 26549).
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 X (formerly known as 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 fiscal 2025
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:;
competitive industry pressures; the failure to retain current
customers, renew existing customer contracts and obtain new
customer contracts; 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; 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; the level, timing and location of
snowfall; 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,
herbicides and fertilizers by employees and related third-party
claims; the distraction and impact caused by litigation, of adverse
litigation judgments and settlements resulting from legal
proceedings; tax increases and changes in tax rules; increase in
on-job accidents involving employees; any failure, inadequacy,
interruption, security failure or breach of our information
technology systems whether owned by us or outsourced or managed by
third parties; our failure to comply with data privacy regulations;
our ability to adequately protect our intellectual property; our
substantial indebtedness; increases in interest rates governing our
variable rate indebtedness increasing the cost of servicing our
substantial indebtedness; exposure to counterparty credit
worthiness or non-performance with respect to the derivative
financial instruments we utilize; 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; incurrence of substantially
more debt by us or our subsidiaries; failure by the financial
institutions that are part of the syndicate of our revolving credit
facility to extend credit under the facility or reduce our
borrowing base; 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., Birch-OR Equity Holdings, LLC and Birch Equity
Holdings, LP to exert significant influence over us; the impact of
holders of Series A Preferred Stock having certain voting and other
rights that may adversely affect holders of our common stock;
general business, economic and financial conditions; increases in
raw material costs, fuel prices, wages and other operating costs;
disruptions in our supply chain and changes in our ability to
source adequate supplies and materials in a timely manner; risks
related to natural disasters, terrorist attacks, public health
emergencies, including pandemics, heightened inflation,
geopolitical conflicts, recession, financial market disruptions,
other economic conditions, and other external events; our
reputation and/or business could be negatively impacted by
environmental, social and governance (ESG) matters and our
reporting of such matters; and costs and requirements imposed as a
result of maintaining compliance with the requirements 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, 2024, 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 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 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 (i) weighted average
number of common shares outstanding used in the calculation of
basic earnings per share plus (ii) shares of common stock related
to the Series A Preferred Stock on an as-converted basis, assumed
to be converted for the entire period. The addition of shares of
common stock related to the Series A Convertible Preferred Stock on
an as-converted basis reflects the dilutive impact of the potential
conversion of the Series A Preferred Stock and is expected to
provide comparability in future periods.
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)*
September 30, 2024
September 30, 2023
Assets
Current assets:
Cash and cash equivalents
$
140.4
$
67.0
Accounts receivable, net
415.2
442.3
Unbilled revenue
137.8
143.5
Other current assets
86.7
89.3
Total current assets
780.1
742.1
Property and equipment, net
391.9
315.2
Intangible assets, net
95.8
132.3
Goodwill
2,015.7
2,021.4
Operating lease assets
81.3
86.1
Other assets
27.0
55.1
Total assets
$
3,391.8
$
3,352.2
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
144.1
$
136.2
Deferred revenue
83.8
68.2
Current portion of self-insurance
reserves
52.8
54.8
Accrued expenses and other current
liabilities
237.7
180.2
Current portion of operating lease
liabilities
24.9
27.3
Total current liabilities
543.3
466.7
Long-term debt, net
802.5
888.1
Deferred tax liabilities
43.9
51.1
Self-insurance reserves
112.8
105.1
Long-term operating lease liabilities
62.6
65.1
Other liabilities
44.3
34.6
Total liabilities
1,609.4
1,610.7
Mezzanine equity:
Series A convertible preferred shares,
$0.01 par value, 7% cumulative dividends; 500,000 shares issued and
outstanding as of September 30, 2024 and September 30, 2023,
aggregate liquidation preference of $512.0 and $503.2 as of
September 30, 2024 and September 30, 2023, respectively
507.1
498.2
Stockholders’ equity:
Preferred stock, $0.01 par value;
50,000,000 shares authorized; no shares issued or outstanding as of
September 30, 2024 and September 30, 2023
—
—
Common stock, $0.01 par value; 500,000,000
shares authorized; 108,200,000 and 106,600,000 shares issued and
94,800,000 and 93,600,000 shares outstanding as of September 30,
2024 and September 30, 2023, respectively
1.1
1.1
Treasury stock, at cost; 13,400,000 and
13,000,000 shares as of September 30, 2024 and September 30, 2023,
respectively
(173.5
)
(170.4
)
Additional paid-in capital
1,518.1
1,530.8
Accumulated deficit
(68.9
)
(135.3
)
Accumulated other comprehensive (loss)
income
(1.5
)
17.1
Total stockholders’ equity
1,275.3
1,243.3
Total liabilities, mezzanine equity and
stockholders’ equity
$
3,391.8
$
3,352.2
(*) Amounts may not total due to rounding.
BrightView Holdings,
Inc.
Consolidated Statements of
Operations
(Unaudited)
Three Months Ended September
30,
Fiscal Year Ended September
30,
2024
2023
2024
2023
(in millions)*
Net service revenues
$
728.7
$
743.7
$
2,767.1
$
2,816.0
Cost of services provided
546.6
558.1
2,121.5
2,137.1
Gross profit
182.1
185.6
645.6
678.9
Selling, general and administrative
expense
121.5
120.5
496.5
533.4
Gain on divestiture
0.3
-
(43.6
)
-
Amortization expense
8.4
10.7
35.8
44.5
Income from operations
51.9
54.4
156.9
101.0
Other (income) expense
(0.6
)
8.7
(2.0
)
6.7
Interest expense, net
14.3
19.2
62.4
97.4
Income (loss) before income taxes
38.2
26.5
96.5
(3.1
)
Income tax expense
12.6
10.1
30.1
4.6
Net income (loss)
$
25.6
$
16.4
$
66.4
$
(7.7
)
Less: dividends on Series A convertible
preferred shares
9.0
3.2
35.7
3.2
Net income (loss) attributable to common
stockholders
$
16.6
$
13.2
$
30.7
$
(10.9
)
Earnings (loss) per share:
Basic earnings (loss) per share
$
0.11
$
0.12
$
0.21
$
(0.12
)
Diluted earnings (loss) per share
$
0.11
$
0.12
$
0.20
$
(0.12
)
BrightView Holdings,
Inc.
Net Income (Loss) Available to
Common Shareholders
(Unaudited)
Three Months Ended September
30,
Fiscal Year Ended September
30,
2024
2023
2024
2023
(in millions)*
Net income (loss)
$
25.6
$
16.4
$
66.4
$
(7.7
)
Less: dividends on Series A convertible
preferred shares
(9.0
)
(3.2
)
(35.7
)
(3.2
)
Net income (loss) attributable to common
stockholders
$
16.6
$
13.2
$
30.7
$
(10.9
)
Less: Earnings allocated to Convertible
Preferred Shares
(6.0
)
(2.2
)
(11.2
)
-
Net income (loss) available to common
shareholders
$
10.6
$
11.0
$
19.5
$
(10.9
)
(*) Amounts may not total due to rounding.
BrightView Holdings,
Inc.
Segment Reporting
(Unaudited)
Three Months Ended September
30,
Fiscal Year Ended September
30,
2024
2023
2024
2023
(in millions)*
Maintenance Services
$
486.5
$
520.8
$
1,964.0
$
2,066.5
Development Services
244.1
224.7
808.8
758.0
Eliminations
(1.9
)
(1.8
)
(5.7
)
(8.5
)
Net Service Revenues
$
728.7
$
743.7
$
2,767.1
$
2,816.0
Maintenance Services
$
81.8
$
81.7
$
279.7
$
277.9
Development Services
41.2
29.1
106.3
82.8
Corporate
(17.8
)
(9.2
)
(61.3
)
(62.0
)
Adjusted EBITDA(1)
$
105.2
$
101.6
$
324.7
$
298.7
Maintenance Services
$
29.3
$
10.1
$
61.3
$
56.1
Development Services
2.6
1.0
12.8
8.2
Corporate
0.5
2.4
4.3
7.0
Capital Expenditures
$
32.4
$
13.5
$
78.4
$
71.3
(*) Amounts may not total due to rounding.
BrightView Holdings,
Inc.
Consolidated Statements of
Cash Flows
(Unaudited)
Fiscal Year Ended
September 30, 2024
September 30, 2023
(in millions)*
Cash flows from operating activities:
Net income (loss)
$
66.4
$
(7.7
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation
108.4
105.2
Amortization of intangible assets
35.8
44.5
Amortization of financing costs and
original issue discount
2.8
3.5
Loss on debt extinguishment
0.6
8.3
Deferred taxes
1.7
(21.5
)
Equity-based compensation
20.2
22.1
Realized gain on hedges
(11.1
)
(15.2
)
Gain on divestiture
(43.6
)
—
Other non-cash activities
(8.6
)
(5.3
)
Change in operating assets and
liabilities:
Accounts receivable
19.9
(52.6
)
Unbilled and deferred revenue
22.1
(5.4
)
Other operating assets
11.4
17.1
Accounts payable and other operating
liabilities
(20.4
)
36.9
Net cash provided by operating
activities
205.6
129.9
Cash flows from investing activities:
Purchase of property and equipment
(78.4
)
(71.3
)
Proceeds from sale of property and
equipment
18.1
21.6
Business acquisitions, net of cash
acquired
—
(13.8
)
Proceeds from divestiture
51.0
—
Other investing activities
3.7
2.1
Net cash (used) by investing
activities
(5.6
)
(61.4
)
Cash flows from financing activities:
Repayments of finance lease
obligations
(36.3
)
(27.6
)
Repayments of term loan
—
(459.0
)
Repayments of receivables financing
agreement
(87.3
)
(554.5
)
Repayments of revolving credit
facility
—
(33.5
)
Proceeds from receivables financing
agreement, net of issuance costs
0.5
549.5
Proceeds from revolving credit
facility
—
33.5
Debt issuance and prepayment costs
(2.5
)
(1.8
)
Series A preferred stock dividend
(17.8
)
—
Proceeds from issuance of Series A
preferred stock, net of issuance costs
—
495.0
Proceeds from issuance of common stock,
net of share issuance costs
3.0
1.2
Repurchase of common stock and
distributions
(3.1
)
(2.2
)
Contingent business acquisition
payments
(5.1
)
(22.1
)
Increase in book overdrafts
20.1
—
Other financing activities
1.9
(0.1
)
Net cash (used) by financing
activities
(126.6
)
(21.6
)
Net change in cash and cash
equivalents
73.4
46.9
Cash and cash equivalents, beginning of
period
67.0
20.1
Cash and cash equivalents, end of
period
$
140.4
$
67.0
Supplemental Cash Flow
Information:
Cash (received) paid for income taxes,
net
$
34.4
$
(9.8
)
Cash paid for interest
$
67.7
$
82.1
Non-cash Series A Preferred Stock
dividends
$
8.9
$
3.2
Accrual for property and equipment
$
50.7
$
—
(*) Amounts may not total due to rounding.
BrightView Holdings,
Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(Unaudited)
Fiscal Year Ended September
30,
Three Months Ended September
30,
(in millions)*
2024
2023
2024
2023
Adjusted EBITDA
Net income (loss)
$
66.4
$
(7.7
)
$
25.6
$
16.4
Plus:
Interest expense, net
62.4
97.4
14.2
19.2
Income tax expense
30.1
4.6
12.6
10.1
Depreciation expense
108.4
105.2
28.6
24.3
Amortization expense
35.8
44.5
8.6
10.7
Business transformation and integration
costs (a)
44.1
23.7
10.2
6.2
Gain on divestiture (b)
(43.6
)
—
0.3
—
Equity-based compensation (c)
20.5
22.3
5.1
6.4
COVID-19 related expenses (d)
—
0.4
—
—
Debt extinguishment (e)
0.6
8.3
—
8.3
Adjusted EBITDA
$
324.7
$
298.7
$
105.2
$
101.6
Adjusted Net Income
Net income (loss)
$
66.4
$
(7.7
)
$
25.6
$
16.4
Plus:
Amortization expense
35.8
44.5
8.6
10.7
Business transformation and integration
costs (a)
44.1
23.7
10.2
6.2
Gain on divestiture (b)
(43.6
)
—
0.3
—
Equity-based compensation (c)
20.5
22.3
5.1
6.4
COVID-19 related expenses (d)
—
0.4
—
—
Debt extinguishment (e)
0.6
8.3
—
8.3
Income tax adjustment (f)
(10.7
)
(30.1
)
(5.0
)
(20.1
)
Adjusted Net Income
$
113.1
$
61.4
$
44.8
$
27.9
Free Cash Flow
Cash flows provided by operating
activities
$
205.6
$
129.9
$
53.5
$
40.6
Minus:
Capital expenditures
78.4
71.3
32.4
13.4
Plus:
Proceeds from sale of property and
equipment
18.1
21.6
4.0
14.8
Free Cash Flow
$
145.3
$
80.2
$
25.1
$
42.0
Adjusted Earnings per Share
Numerator:
Adjusted Net Income (Loss)
$
113.1
$
61.4
$
44.8
$
27.9
Denominator:
Weighted average number of common shares
outstanding – basic
94,673,000
93,412,000
94,687,000
93,420,000
Plus:
Dilutive impact of Series A convertible
preferred stock as-converted
54,242,000
53,301,000
54,242,000
53,301,000
Adjusted weighted average number of common
shares outstanding
148,915,000
146,713,000
148,929,000
146,721,000
Adjusted Earnings per Share
$
0.76
$
0.42
$
0.30
$
0.19
(*) 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 and other costs.
Fiscal Year Ended September
30,
Three Months Ended September
30,
(in millions)
2024
2023
2024
2023
Severance and related costs (g)
$
16.6
$
8.9
$
6.1
$
2.9
Business integration (h)
(0.4
)
6.2
0.1
0.9
IT infrastructure, transformation, and
other (i)
27.9
8.6
4.0
2.4
Business transformation and integration
costs
$
44.1
$
23.7
$
10.2
$
6.2
(b)
Represents the realized gain on
sale and transaction related expenses from the divestiture of U.S.
Lawns on January 12, 2024.
(c)
Represents equity-based
compensation expense and related taxes recognized for equity
incentive plans outstanding.
(d)
Represents expenses related to
the Company’s response to the COVID-19 pandemic, principally
temporary and incremental salary and related expenses, personal
protective equipment, cleaning and supply purchases, and other.
Additionally, fiscal year 2022 includes refunds related to employee
retention credits allowed under the CARES Act.
(e)
Represents losses on the
extinguishment of debt related to Amendments No. 8 and No. 7 to the
Credit Agreement, in the fiscal years ended September 30, 2024 and
2023, respectively, and includes accelerated amortization of
deferred financing fees and original issue discount as well as fees
paid to lenders and third parties.
(f)
Represents the tax effect of
pre-tax items excluded from Adjusted Net Income and the removal of
the applicable discrete tax items, which collectively result in an
increase or decrease in income tax. The tax effect of pre-tax items
excluded from Adjusted Net Income is computed using the statutory
rate related to the jurisdiction that was impacted by the
adjustment after taking into account the impact of permanent
differences and valuation allowances. Discrete tax items include
changes in laws or rates, changes in uncertain tax positions
relating to prior years and changes in valuation allowances.
Year Ended September
30,
Three Months Ended September
30,
(in millions)*
2024
2023
2024
2023
Tax impact of pre-tax income
adjustments
$
12.8
$
34.1
$
(6.5
)
$
23.4
Discrete tax items
(2.1
)
(4.0
)
11.5
(3.3
)
Income tax adjustment
$
10.7
$
30.1
$
5.0
$
20.1
(g)
Represents severance and related
costs incurred in connection with the Company's One BrightView
initiative and CEO transition.
(h)
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 non-GAAP 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.
(i)
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.
BrightView Holdings,
Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(Unaudited)
Total Financial Debt and Total Net
Financial Debt
(in millions)*
September 30, 2024
September 30, 2023
September 30, 2022
Long-term debt, net
$
802.5
$
888.1
$
1,330.7
Plus:
Current portion of long term debt
—
—
12.0
Financing costs, net
6.5
6.6
10.6
Present value of net minimum payment -
finance lease obligations (j)
68.3
42.8
41.7
Total Financial Debt
877.3
937.5
1,395.0
Less: Cash and cash equivalents
(140.4
)
(67.0
)
(20.1
)
Total Net Financial Debt
$
736.9
$
870.5
$
1,374.9
Total Net Financial Debt to Adjusted
EBITDA ratio
2.3x
2.9x
4.8x
(j)
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/20241113164687/en/
For More Information: Investor Relations Chris
Stoczko, Vice President of Finance IR@brightview.com
News Media David Freireich, Vice President of
Communications & Public Affairs
David.Freireich@brightview.com
BrightView (NYSE:BV)
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