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, 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210506005467/en/

(Graphic: Business Wire)

“We are very pleased with an exceptional quarter and our continued strong performance in fiscal year 2021. These results are due to the team executing on our strategy and we believe underpins our guidance going forward. Despite ongoing COVID-19 headwinds, our fiscal second quarter performance was driven by meaningful growth in our annual contract snow business and continued improvement in Maintenance Land organic growth, a testament to the investments made in our expanded sales teams and sales enablement technologies. In addition, the significant Adjusted EBITDA margin expansion versus the prior year and continued strong cash generation are a result of the ongoing leverage of our technology and productivity initiatives," said Andrew Masterman, BrightView President and Chief Executive Officer. “BrightView’s success comes from the efforts of every one of our 20,000 plus team members and they continue to do an incredible job by prioritizing health and safety, focusing on client relationships, and by delivering solid results in a challenging operating environment. The consistency and resiliency of our model continues to reflect fundamental strengths. Coupled with ongoing execution of our M&A strategy, we remain confident in our ability to create significant shareholder value.”

¹ 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 income (loss), its corresponding GAAP measure, because the GAAP measure that is excluded from its non-GAAP financial outlook is difficult to reliably predict or estimate without unreasonable effort due to its dependence on future uncertainties, such as items discussed below. Additionally, information that is currently not available to the Company could have a potentially unpredictable and potentially significant impact on its future GAAP financial results.

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.

Second Quarter Fiscal 2021 Highlights

• Total revenue of $651.9 million, a 16.6% increase compared to $559.1 million in the prior year.
• Maintenance revenue of $535.7 million, a 29.6% increase compared to $413.5 million in the prior year;
  • Land revenue of $309.7 million compared to the prior year of $311.0 million;
  • Snow revenue of $226.0 million compared to the prior year of $102.5 million.
• Development revenue of $117.1 million compared to the prior year of $146.3 million.
• Net Income of $6.3 million, or $0.06 per share, compared to Net Loss of $20.5 million, or $(0.20) per share in the prior year; Net Income Margin of 1.0%, an improvement of 470 basis points compared to prior year Net Loss Margin of 3.7%.
• Adjusted EBITDA of $66.8 million, an increase of $27.9 million or 71.7% compared to Adjusted EBITDA of $38.9 million in the prior year; Adjusted EBITDA margin of 10.2%, an increase of 320 basis points compared to Adjusted EBITDA margin of 7.0% in the prior year.
• Net cash provided by operating activities of $78.3 million and Free Cash Flow generation of $62.9 million.

Six Months Fiscal 2021 Highlights

• Total revenue of $1,206.3 million, a 6.8% increase compared to $1,129.8 million in the prior year.
• Maintenance revenue of $953.8 million, a 14.6% increase compared to $832.4 million in the prior year;
  • Land revenue of $672.0 million compared to the prior year of $674.3 million;
  • Snow revenue of $281.8 million compared to the prior year of $158.1 million.
• Development revenue of $254.4 million compared to the prior year of $299.1 million.
• Net Loss of $5.7 million, or ($0.05) per share, and a net loss margin of 0.5%, compared to Net Loss of $33.1 million, or ($0.32) per share, and a net loss margin of 2.9%, in the prior year.
• Adjusted EBITDA of $119.3 million, an increase of $28.8 million or 31.8% compared to Adjusted EBITDA of $90.5 million in the prior year; Adjusted EBITDA margin of 9.9%, an increase of 190 basis points compared to Adjusted EBITDA margin of 8.0% in the prior year.
• Net cash provided by operating activities of $83.4 million and Free Cash Flow generation of $58.9 million.

Fiscal 2021 Results – Total BrightView

For the second quarter of fiscal 2021, total revenue increased 16.6% to $651.9 million driven principally by an increase in Maintenance Services revenues of $122.2 million. Net Income was $6.3 million compared to Net Loss of $20.5 million in the prior year period. Total Adjusted EBITDA increased $27.9 million, or 71.7%, to $66.8 million from $38.9 million in the prior year period. Maintenance Services Segment Adjusted EBITDA increased $31.6 million, or 77.6%, to $72.3 million compared to $40.7 in the prior year period, principally driven by the increase in snow removal revenue. Development Services Segment Adjusted EBITDA decreased $3.3 million to $10.9 million from $14.2 million in the prior year period due principally to a decrease in net service revenues. The Segment Adjusted EBITDA results are discussed further below.

For the six months ended March 31, 2021, total revenue increased 6.8% to $1,206.3 million driven principally by an increase in Maintenance Services revenues of $121.4 million. Net Loss was $5.7 million compared to Net Loss of $33.1 million in the prior year period. Total Adjusted EBITDA increased $28.8 million, or 31.8%, to $119.3 million from $90.5 million in the prior year period. Maintenance Services Segment Adjusted EBITDA increased $33.5 million, or 37.9%, to $121.9 million compared to $88.4 million in the prior year period, principally driven by the increase in snow removal revenue. Development Services Segment Adjusted EBITDA decreased to $27.9 million from $33.3 million in the prior year period due principally to a decrease in net service revenues. The Segment Adjusted EBITDA results are discussed further below.

Fiscal 2021 Results – Segments

For the second quarter of fiscal 2021, revenue in the Maintenance Services Segment increased by $122.2 million, or 29.6%, from the 2020 period. Revenues from snow removal services were $226.0 million, an increase of $123.5 million over the 2020 period and revenues from landscape services were $309.7 million, a decrease of $1.3 million over the 2020 period. The increase in snow removal services is primarily attributable to the increased frequency of snowfall events and the higher relative snowfall in the three months ended March 31, 2021 compared to the 2020 period (for our current geographic structure, snowfall for the three months ended March 31, 2021 and 2020 was 97.8% and 49.6%, respectively, of the historical 10-year average for that three-month period per NOAA¹). The decrease in landscape services revenues was primarily driven by a $12.2 million decline in commercial landscape services, offset by a $11.7 million revenue contribution from acquired businesses.

Adjusted EBITDA for the Maintenance Services Segment for the three months ended March 31, 2021 increased by $31.6 million to $72.3 million from $40.7 million in the 2020 period. Segment Adjusted EBITDA Margin increased 370 basis points, to 13.5%, in the three months ended March 31, 2021, from 9.8% in the 2020 period. The increases in Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin were principally driven by the increase in Maintenance Services revenues discussed above.

For the six months ended March 31, 2021, revenue in the Maintenance Services Segment increased by $121.4 million, or 14.6%, from the 2020 period. Revenues from snow removal services were $281.8 million, an increase of $123.7 million over the 2020 period and revenues from landscape services were $672.0 million, a decrease of $2.3 million over the 2020 period. The increase in snow removal services is primarily attributable to the increased frequency of snowfall events and the higher relative snowfall in the six months ended March 31, 2021 compared to the 2020 period (for our current geographic structure, snowfall for the six months ended March 31, 2021 and 2020 was 102.1% and 62.2%, respectively, of the historical 10-year average for that six-month period per NOAA). The decrease in landscape services revenues was driven by a $35.9M decrease in commercial landscape services and $1.7 million due to divestitures, offset by an increase of $35.3 million revenue contribution from acquired businesses.

Adjusted EBITDA for the Maintenance Services Segment for the six months ended March 31, 2021 increased $33.5 million, to $121.9 million, compared to $88.4 million in the 2020 period. Segment Adjusted EBITDA Margin increased 220 basis points, to 12.8%, in the six months ended March 31, 2021, from 10.6% in the 2020 period. The increases in Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin was principally driven by the increase in snow removal revenues described above and the decrease in Selling, general, and administrative expenses due to cost containment actions.

For the second quarter of fiscal 2021, revenue in the Development Services Segment decreased $29.2 million, or 20.0%, compared to the 2020 period. The decrease in Development Services revenues was principally driven by a $33.4 million reduction due to reduced backlog as a result of the COVID-19 pandemic, partially offset by a $10.3 million revenue contribution from acquired businesses. In addition, the sale of BrightView Tree Company in September 2020 reduced revenues by $6.1 million for the three months ended March 31, 2021.

Adjusted EBITDA for the Development Services Segment for the three months ended March 31, 2021 decreased $3.3 million, to $10.9 million, compared to the 2020 period due to the decrease in net service revenues described above, partially offset by a decrease in Selling, general, and administrative expenses due to cost containment actions. Segment Adjusted EBITDA Margin decreased 40 basis points, to 9.3% for the quarter from 9.7% in the 2020 period.

For the six months ended March 31, 2021, revenues for the Development Services Segment decreased $44.7 million, or 14.9%, compared to the 2020 period. The decrease in Development Services revenues was principally driven by a $46.7 million reduction due to reduced backlog as a result of the COVID-19 pandemic, partially offset by a $14.7 million revenue contribution from acquired businesses. In addition, the sale of BrightView Tree Company in September 2020 reduced net service revenues by $12.7 million for the six months ended March 31, 2021.

Adjusted EBITDA for the Development Services Segment for the six months ended March 31, 2021 decreased $5.4 million, to $27.9 million, compared to the 2020 period. The decrease in Segment Adjusted EBITDA was due to the decrease in net service revenues described above, partially offset by a decrease in Selling, general, and administrative expenses due to cost containment actions. Segment Adjusted EBITDA Margin remained relatively flat at 11.0% in the six months ended March 31, 2021, from 11.1% in the 2020 period.

Net cash provided by operating activities for the six months ended March 31, 2021 decreased $2.3 million, to $83.4 million, from $85.7 million in the 2020 period. This decrease was due to a reduction in the cash provided by accounts receivable and unbilled and deferred revenue, offset by a decrease in cash used by other operating assets and accounts payable and other operating liabilities.

Free Cash Flow increased $5.6 million to $58.9 million for the six months ended March 31, 2021 from $53.3 million in the 2020 period. The increase in Free Cash Flow was due to a decrease in cash used in capital expenditures, partially offset by a decrease in cash provided by operating activities as described above.

For the six months ended March 31, 2021, capital expenditures were $27.9 million, compared with $35.1 million in the prior year. The Company also generated proceeds from the sale of property and equipment of $3.4 million and $2.7 million during the six months ended March 31, 2021 and 2020, respectively. Net of the proceeds from the sale of property and equipment, net capital expenditures represented 2.0% and 2.9% of revenue in the six months ended March 31, 2021 and 2020, respectively.

As of March 31, 2021, the Company’s Total Net Financial Debt was $1,047.5 million, a decrease of $118.9 million compared to $1,166.4 million as of March 31, 2020. The Company’s Total Net Financial Debt to Adjusted EBITDA ratio was 3.5x and 4.1x as of March 31, 2021 and March 31, 2020, respectively.

Recent M&A Activity

In April 2021, BrightView acquired Birch, Incorporated based in St. Paul, Minnesota. Founded in 1978, Birch provides a full suite of winter services, landscape maintenance and enhancements, tree care and irrigation services. Combined with our December 2020 acquisition of Cutting Edge, this transaction further solidifies BrightView as the service leader in a desirable Upper Midwest market.

COVID-19

• Throughout the entire country, landscape maintenance continues to be recognized as an essential service.
• All branches are operational with no limitations on the scope of services we can provide.
• Executed downturn playbook and are continuing to exercise prudence, limiting discretionary spending, and managing capital expenditures and working capital.

Conference Call Information

A conference call to discuss the first quarter fiscal 2021 financial results is scheduled for May 6, 2021, at 10 a.m. EDT. The U.S. toll free dial-in for the conference call is (877) 273-7124 and the international dial-in is (647) 689-5396. The conference passcode is 1459347. 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 from 1 p.m. EDT on May 6, 2021 to 11:59 p.m. EDT on May 13, 2021. To access the recording, dial (800) 585-8367 or (416) 621-4642 (Conference ID 1459347).

BrightView Golf Maintenance has been selected by the City of Amsterdam, NY to maintain its Amsterdam Municipal Golf Course. BrightView will be responsible for all aspects of course maintenance, including turf, irrigation and equipment, with the goal of providing players outstanding golf course conditions. 

Since 1938 Amsterdam residents and visitors have played this beautiful 18-hole championship golf course, designed by the legendary Robert Trent Jones, Sr.

“We are honored to have been chosen to care for this historic course, one of the best known municipal courses in the Capital region,” said Greg Pieschala, president of BrightView Golf Maintenance. “We are looking forward to helping Amsterdam to continue its rich tradition, providing a top notch golf experience for the entire community.”

BrightView is a leading golf course maintenance company caring for more than 80 championship courses around the country.

Bringing on BrightView and its proven approach to golf course maintenance is part of the City’s master plan to restore the glory of the entire golf operation. Along with the sale of the clubhouse to a local restaurateur, the City envisions raising the stature of the Amsterdam Municipal Golf Course and foresees this facility having an even greater impact on their community.

“Partnering with an industry leader like BrightView is sure to make a tremendous impact on our golf course” said Kevin Canale, PGA General Manager. “From consistently providing top notch conditions to streamlining costs and their overall services we are very pleased with our decision."

BrightView selected to maintain Amsterdam Municipal Golf Course, Golf Course Industry
Brightview Golf Selected To Maintain Amsterdam, NY Municipal Golf Course, Golf Course Trades

BrightView Holdings, Inc. (NYSE: BV) (the “Company” or “BrightView”), the leading commercial landscaping services company in the United States, today reported unaudited results for the first quarter ended December 31, 2020.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210204005425/en/

(Graphic: Business Wire)

“We are very pleased with the strong start to fiscal year 2021. Despite continued COVID-19 headwinds, our first quarter results reflect solid contract-based business and Adjusted EBITDA growth combined with meaningful margin expansion versus the prior year, a testament to the investments made in our expanded sales teams and sales enablement technologies, and the ongoing leverage of our technology and productivity initiatives”, said Andrew Masterman, BrightView President and Chief Executive Officer. “Our team continues to do an incredible job responding to the COVID-19 crisis by prioritizing health and safety, focusing on client relationships, and by delivering solid results in a challenging operating environment. The consistency and resiliency of our model continues to reflect fundamental strengths. Coupled with ongoing execution of our M&A strategy, we remain confident in our ability to create value.”

First Quarter Fiscal 2021 Highlights

• Total revenue of $554.4 million compared to the prior year of $570.7 million.
• Maintenance revenue of $418.0 million compared to the prior year of $418.9 million;
  • Land revenue of $362.2 million compared to the prior year of $363.3 million;
  • Snow revenue of $55.8 million compared to the prior year of $55.6 million.
• Development revenue of $137.4 million compared to the prior year of $152.8 million.
• Net Loss of $12.0 million, or $(0.11) per share, compared to Net Loss of $12.6 million, or $(0.12) per share in the prior year; Net Loss Margin of 2.2%, flat to the prior year.
• Adjusted EBITDA of $52.4 million, an increase of $0.7 million or 1.4% compared to Adjusted EBITDA of $51.7 million in the prior year; Adjusted EBITDA margin of 9.5%, an increase of 40 basis points compared to Adjusted EBITDA margin of 9.1% in the prior year.
• Net cash provided by operating activities of $5.1 million compared to $7.3 million in the prior year.

1 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 income (loss), its corresponding GAAP measure, because the GAAP measure that is excluded from its non-GAAP financial outlook is difficult to reliably predict or estimate without unreasonable effort due to its dependence on future uncertainties, such as items discussed below. Additionally, information that is currently not available to the Company could have a potentially unpredictable and potentially significant impact on its future GAAP financial results.

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.

Fiscal 2021 Results – Total BrightView

For the first quarter of fiscal 2021, total revenue decreased 2.9% to $554.4 million driven principally by a decrease in Development Services revenues of $15.4 million. Net Loss was $12.0 million compared to Net Loss of $12.6 million in the prior year period. Total Adjusted EBITDA increased $0.7 million, or 1.4%, to $52.4 million from $51.7 million in the prior year period. Maintenance Services Segment Adjusted EBITDA increased $1.9 million, or 4.0%, to $49.6 million compared to $47.7 in the prior year period, principally driven by targeted cost containment actions and leveraging our technology initiatives. Development Services Segment Adjusted EBITDA decreased to $17.1 million from $19.1 million in the prior year period due principally to a decrease in net service revenues. The Segment Adjusted EBITDA results are discussed further below.

Fiscal 2021 Results – Segments

For the first quarter of fiscal 2021, revenue in the Maintenance Services Segment was flat to the prior year excluding divestitures of $0.9 million. Revenues from commercial landscaping decreased $23.7 million over the 2019 period inclusive of snow, primarily due to a reduction in demand for ancillary services as a result of the COVID-19 pandemic, which was fully offset by a $23.7 million revenue contribution from acquired businesses inclusive of snow.

Adjusted EBITDA for the Maintenance Services Segment increased 4.0% to $49.6 million, from $47.7 million in the 2019 period. Additionally, Segment Adjusted EBITDA Margin increased 50 basis points, to 11.9% from 11.4% in the 2019 period. The increases in Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin were principally driven by targeted cost containment actions and leveraging our technology initiatives.

For the first quarter of fiscal 2021, revenue in the Development Services Segment decreased 6.0% excluding divestitures of $6.6 million, principally driven by a $13.2 million reduction due to the COVID-19 pandemic, partially offset by a $4.4 million revenue contribution from acquired businesses.

Adjusted EBITDA for the Development Services Segment decreased to $17.1 million in the quarter compared to $19.1 million in the prior year period due to the decrease in net service revenues described above. In addition, approximately half of the decline was attributable to the sale of BrightView Tree Company. Segment Adjusted EBITDA Margin was relatively flat at 12.4% for the quarter versus 12.5% in the 2019 period.

Net cash provided by operating activities for the quarter ended December 31, 2020 was $5.1 million, compared to $7.3 million for the prior year. This decrease was primarily due to an increase in cash used by accounts payable and other operating liabilities offset by a decrease in cash used by accounts receivable and other operating assets.

Free Cash Flow for the quarter ended December 31, 2020 was $(4.0) million, an increase of $2.2 million versus the prior year. The increase in Free Cash Flow was due primarily to a decline in capital expenditures of $4.8 million, described further below, partially offset by the decrease in cash flows from operating activities described above.

For the quarter ended December 31, 2020, capital expenditures were $9.7 million, compared with $14.5 million in the prior year. The Company also generated proceeds from the sale of property and equipment of $0.6 million and $1.0 million in the first quarter of fiscal 2021 and 2020, respectively. Net of the proceeds from the sale of property and equipment in the quarter, net capital expenditures represented 1.6% and 2.4% of revenue in the first quarter of fiscal 2021 and 2020, respectively.

As of December 31, 2020, the Company’s Total Net Financial Debt was $1,088.0 million, a decrease of $67.1 million compared to $1,155.1 million as of December 31, 2019. The Company’s Total Net Financial Debt to Adjusted EBITDA ratio was 4.0x and 3.8x as of December 31, 2020 and December 31, 2019, respectively.

Recent M&A Activity

In October 2020, BrightView acquired Commercial Tree Care, Inc. (CTC), a full-service tree care company based in San Jose, Calif. Founded in 1992, CTC is a full-service tree care provider specializing in pruning, tree removal, stump grinding, cabling, bracing, fertility treatment, pest and disease control, install and transplant, forestry fire fighting and timber harvesting. CTC also consults for development, appraisal, maintenance plans and overall site evaluation.

Additionally, in October 2020, BrightView acquired Water, Land, Environment, LLC (WLE), a commercial landscape maintenance and development company headquartered in Austin, Texas. Founded in 2003, WLE is a full-service commercial landscape management company, whose 250-member team serves HOA, developer, commercial, and municipal clients across three markets in Central Texas.

In December 2020, BrightView acquired Cutting Edge Property Maintenance, one of the leading commercial outdoor maintenance services providers in the Minneapolis-St. Paul region. Cutting Edge provides winter services, landscape maintenance and enhancements, tree care, and irrigation services in the Upper Midwest market.

In January 2021, BrightView acquired Green Image, LLC (d/b/a GTI) based in Las Vegas. GTI excels in multiple verticals, including maintenance and installation projects for municipalities, HOAs, tree care and irrigation.

COVID-19 Update

• Throughout the entire country, landscape maintenance continues to be recognized as an essential service.
• All branches are operational with no limitations on the scope of services we can provide.
• Executed downturn playbook and are continuing to exercise prudence, limiting discretionary spending, and managing capital expenditures and working capital.
• Prioritizing additional actions to protect revenue and margins, and preserve cash in the event of a continued and prolonged resurgence.
• Specific Health and Safety actions include:
  • Proactively communicating critical information from CDC to employees.
  • Implemented branch based social distancing and hygiene and sanitization procedures.
  • Continuing to prohibit non-essential travel and mandated work from home policies as applicable.
  • Adhering to state and local mandates and guidelines.
  • Tracking current and potential exposures, imposing quarantine measures, and assigning case workers.
  • Implemented protocols requiring face coverings.

Conference Call Information

A conference call to discuss the first quarter fiscal 2021 financial results is scheduled for February 4, 2021, at 10 a.m. EST. The U.S. toll free dial-in for the conference call is (877) 273-7124 and the international dial-in is (647) 689-5396. The conference passcode is 4778096. A live audio webcast of the conference call will be available on the Company’s investor website, where presentation materials will be posted prior to the call.

A replay of the call will be available from 1 p.m. EST on February 4, 2021 to 11:59 p.m. EST on February 11, 2021. To access the recording, dial (800) 585-8367 or (416) 621-4642 (Conference ID 4778096).

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 first quarter fiscal 2021 guidance and other statements related to our expectations regarding our industry, strategy, future operations, future liquidity and financial position, future revenues, projected costs, prospects, plans and objectives of management, are forward-looking statements. The words such as “outlook,” “guidance,” “projects,” “continues,” “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “estimates,” or “anticipates,” or the negative version of these words or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. By their nature, forward-looking statements: speak only as of the date they are made; are not statements of historical fact or guarantees of future performance; and are subject to risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Factors that could cause actual results to differ materially from those projected include, but are not limited to: general business economic and financial conditions; the duration and extent of the novel coronavirus (COVID-19) pandemic and its resurgence, and the impact of federal, state and local governmental actions and customer behavior in response to the pandemic, including possible additional or reinstated restrictions as a result of a resurgence of the pandemic; competitive industry pressures; the failure to retain current customers, renew existing customer contracts and obtain new customer contracts; the failure to enter into profitable contracts, or maintaining customer contracts that are unprofitable; a determination by customers to reduce their outsourcing or use of preferred vendors; the dispersed nature of our operating structure; our ability to implement our business strategies and achieve our growth objectives; acquisition and integration risks; the seasonal nature of our landscape maintenance services; our dependence on weather conditions; increases in prices for raw materials and fuel; changes in our ability to source adequate supplies and materials in a timely manner; any failure to accurately estimate the overall risk, requirements, or costs when we bid on or negotiate contracts that are ultimately awarded to us; the conditions and periodic fluctuations of real estate markets, including residential and commercial construction; our ability to retain our executive management and other key personnel; our ability to attract and retain trained workers and third-party contractors and re-employ seasonal workers; any failure to properly verify employment eligibility of our employees; subcontractors taking actions that harm our business; our recognition of future additional impairment charges; laws and governmental regulations, including those relating to employees, wage and hour, immigration, human health and safety and transportation; environmental, health and safety laws and regulations, including regulatory costs, claims and litigation related to the use of chemicals and pesticides by employees and related third-party claims; the distraction and impact caused by litigation, of adverse litigation judgments and settlements resulting from legal proceedings; increase in on-job accidents involving employees; any failure, inadequacy, interruption, security failure or breach of our information technology systems; our ability to adequately protect our intellectual property; restrictions imposed by our debt agreements that limit our flexibility in operating our business; our ability to generate sufficient cash flow to satisfy our significant debt service obligations; our ability to obtain additional financing to fund future working capital, capital expenditures, investments or acquisitions, or other general corporate requirements; increases in interest rates governing our variable rate indebtedness increasing the cost of servicing our substantial indebtedness including proposed changes to LIBOR; ownership of our common stock; occurrence of natural disasters, terrorist attacks or other external events; changes in generally accepted accounting principles in the United States; and costs and requirements imposed as a result of maintaining the requirement of being a public company. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under “Item 1A. Risk Factors” in our Form 10-K for the fiscal year ended September 30, 2020 as such factors may be updated from time to time in our periodic filings with 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 and 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 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 other similarly titled measures of other companies and can differ significantly from company to company.

BrightView Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)

BrightView Holdings, Inc. (NYSE: BV) (“BrightView”), the leading commercial landscaping services company in the United States, today announced the acquisition of Green Image, LLC (GTI) based in Las Vegas, Nev. Terms of the transaction were not disclosed.

“GTI and its more than 400 team members are a great strategic addition to our operations in the western U.S.,” said BrightView President and CEO Andrew Masterman. “They bring a solid base of maintenance operations plus an impressive capability in landscape development. This team of professionals has years of experience in horticulture, engineering, maintenance, design, architecture, and equipment management and I am pleased to welcome them to BrightView.”

Founded in 2004 GTI has earned a reputation throughout Nevada for the quality of its work in both landscape development and maintenance, including HOA streetscapes and entries, parks, common areas, play structures, athletic fields and water features.

“We look forward to the new opportunities our people will have joining the BrightView team,” said GTI’s Brock Krahenbuhl. “It’s very exciting and we are ready for this new expansion in the landscape industry.”

BrightView Holdings, Inc. (NYSE: BV) announced today that it will hold its first quarter fiscal 2021 earnings conference call Thursday, February 4, 2021 at 10 a.m. EST. A press release detailing the Company’s first quarter fiscal 2021 results will be issued prior to the call. The information to join the earnings conference call is below:

BrightView President and Chief Executive Officer Andrew Masterman, together with Executive Vice President and Chief Financial Officer John Feenan, will host the conference call and webcast. The news release, earnings presentation and live webcast of the conference will also be accessible on the company's investor website or here.

BrightView Holdings, Inc. (NYSE: BV) (“BrightView”), the leading commercial landscaping services company in the United States, today announced the acquisition of Cutting Edge Property Maintenance, Inc. based in Plymouth, Minn. Terms of the transaction were not disclosed.

“Cutting Edge has earned a reputation for providing superior service, which creates lasting client satisfaction,” said BrightView President and CEO Andrew Masterman. “They have the expertise and capabilities to provide a full suite of winter services, landscape maintenance and enhancements, tree care, and irrigation services. This deal brings a service leader in a desirable Upper Midwest market into the BrightView family along with more than 110 skilled team members.”

Founded in 2005 Cutting Edge Property Maintenance is one of the Twin Cities’ leading commercial outdoor maintenance services providers with a reputation for attention to detail, client service, employee safety and superior workmanship.

“We could genuinely tell BrightView’s executive team cares about their people, which was an important factor in our decision-making process,” said Ryan Comer, Cutting Edge Founder and CEO. “We are confident that joining BrightView will provide opportunities for both our employees and our customers. BrightView is a first-class organization that the Minneapolis market is fortunate to have.”

The National Business Research Institute (NBRI) is pleased to welcome BrightView Landscapes Services (BVLS) and BrightView Landscape Design (BVLD) to the NBRI Circle of Excellence. The NBRI Circle of Excellence Award recognizes organizations that place a high value on Employee and Customer engagement. These organizations demonstrate their dedication by conducting best in class survey research with NBRI and taking action based upon the results. NBRI commends the leadership of these organizations for their commitment to the Continuous Improvement Process and recognizes their achievements with the Circle of Excellence Award.

To qualify for this honor, the organization must score at or above Stretch Performance at the 75th benchmarking percentile when measured against their industry, or the organization must improve 5 or more benchmarking percentiles in total company score over the previous research study, a statistically significant amount. It is no small feat to move an entire company’s score of customer loyalty or employee engagement 5 or more percentiles, or to reach Stretch or Best in Class Performance levels.

“Customer Engagement drives Financial Performance,” said Dr. Jan G. West, Ph.D., CEO & Organizational Psychologist at NBRI. “This award is a result of BrightView’s dedication to measuring and improving their Customer Engagement.”

About NBRI:
NBRI conducts Employee, Customer, and Market Research for businesses, and uses this data to help organizations leverage these human factors to make improvements to operations and strategy. With its extensive experience across all industries, NBRI’s research teams bring their clients a combination of deep industry knowledge and expert advice. NBRI’s mission is to help their Clients set new standards of excellence in their industries. NBRI product offerings, such as the Root Cause Analysis, ensures their clients will focus on the most impactful issues.

BrightView Maintenance has been selected by Colorado’s Town of Superior to maintain its park and recreation landscapes starting Jan. 1, 2020. The contract covers more than 630 acres of parks, green space, and open space, the Town of Superior, and its 35 miles of public trails.

The agreement includes sustainable landscaping maintenance and snow removal for the public grounds, parks, and walkways throughout the town.

BrightView is one of the nation’s largest users of zero-emission commercial landscaping equipment and also a leader in the use of state-of-the-art water conservation technology and innovative landscaping practices, such as green roof installations, LEED-certified landscape consulting, waste reduction programs, and xeriscaping.

“Being able to partner with the Town of Superior and provide sustainable landscaping is a point of pride for Brightview,” said Bradley Hill, BrightView Senior Branch Manager. “Our team is thrilled to not only provide green landscaping to some of the most stunning trails in Colorado, but to also make a lasting connection with this close-knit community.”

The Town of Superior was founded in 1896 and is believed named after the "superior" quality of coal found in the area. The stunning mountain-filled backdrop is enhanced by the vast public spaces and parks throughout the town.

“The Town of Superior is looking forward to working together with BrightView to serve all who live, work, and play in our community,” said Leslie Clark, Parks, Recreation and Open Space Director, Town of Superior.“ We believe BrightView and their people will provide us with the excellence we have become accustomed to, as well as propel us into the future of renewable energy and sustainability.”

Learn more about the parks, trails, open space, and recreation within the Town of Superior here.

About The Town of Superior:
The Town of Superior is a municipality of approximately 15,000 people located 22 miles northwest of Denver and 8 miles southwest of Boulder, Colorado. Incorporated in 1904 and named for the “superior” quality of the coal it produced in the local mine, the Town boasts a rich history. The Town now consists of four-square miles that include hundreds of acres of quality parks, open space and trails produced and maintained for the enjoyment of residents and visitors.

The University of California Merced campus, one of the nation’s leading public colleges, recently completed a four-year construction expansion. BrightView proudly provided landscape and site hardscape to this massive project, featured in the December issue of CalContractors Magazine.

The three-phase campus extension, which took place from October 2016 to June 2020, nearly doubled the size of UC Merced’s campus.

Lead by a P3 development team, Webcor Builders selected BrightView for the 1.2 million -square-foot campus. Webcor Builders is a premier commercial construction service provider known for its innovative and efficient approach, a wide range of experience, and cost-effective design-build methodology.

“BrightView assembled a great team for the UC Merced 2020 Project,” said Jacob Gliddon, Webcor Builders Site Project. “They exceeded all expectations and I look forward to working with them again in the future.”

UC Merced is a widely recognized campus for its commitment to environmental sustainability, an important priority during the campus expansion. BrightView provided more than 61 miles of drip irrigation instillation for a campus-wide water conservation effort. The work provided throughout the campus also included 805 trees, 41,000 shrubs, wetland and grassland hydroseeding, landscape drainage, and various campus-wide accommodations. BrightView also placed more than 500 cubic yards of soil each day.

While landscape development operations continued, campus life went on. To ensure the safety of all students and staff during the construction, BrightView provided safe pedestrian access during the various development phases.

“Safety was our number one concern as we concentrated on getting students and faculty to their newly built classrooms, dorms, cafeterias, and other facilities,” said Dustin Harter, BrightView Project Superintendent.

The work provided by BrightView Landscape Development on UC Merced also lead the team to win the 2018 United Contractors R.E.A.L. Safety Award for their three-year safety record without a loss day.

“I am extremely proud of BrightView’s design-build team members whom collaboratively partnered with Webcor Builders and the trade partner teams on this design-build to provide UC Merced with an incredible finished product,” said Skip Stevens, BrightView Landscape Development Vice President and General Manager.

CalContractor Magazine is a monthly magazine that is widely distributed to California contractors and features industry news. Read the full article on this award-winning work here.

BrightView Holdings, Inc. (NYSE: BV) (the “Company” or “BrightView”), the leading commercial landscaping services company in the United States, today reported unaudited results for the fourth quarter and audited results for the full fiscal year ended September 30, 2020.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201118005277/en/ 

(Graphic: Business Wire)

“Our fourth quarter and full year results highlight the continued resiliency of our contract-based business, reflect the positive underlying trends of our strong-on-strong acquisition strategy, and the benefits of the investments we are making in being a best-in-class maintenance services company. This quarter we delivered strong cash generation and liquidity, underpinned by our on-going focus on working capital and reducing capital expenditures,” said Andrew Masterman, BrightView President and Chief Executive Officer. “Our services and results of operations continue to benefit from a designation as an essential service. And our team continues to do an incredible job responding to the COVID-19 crisis by prioritizing health and safety, focusing on our client relationships, and by delivering solid results in a challenging operating environment.”

“Despite ancillary softness and project delays, COVID-19 impacts to date have been modest due to our resilient contract revenue base, and our earnings have benefitted from cost management actions. Cash generation remains healthy, margins strong, our capex requirements remain modest, and we expect our M&A pipeline to continue to be a reliable and sustainable source of revenue growth,” Masterman said. “We expect COVID-19 impacts will continue to be felt over the next few quarters as conditions remain fluid. That said, we believe we are in a strong position to return to positive growth in fiscal 2021, with continued strong cash generation and solid Adjusted EBITDA results. And, we believe the digital, sales, training and other investments we are making in strengthening our business will drive long-term best-in-class performance.”

1 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 income (loss), its corresponding GAAP measure, because the GAAP measure that is excluded from its non-GAAP financial outlook is difficult to reliably predict or estimate without unreasonable effort due to its dependence on future uncertainties, such as items discussed above. 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.

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.

Fourth Quarter Fiscal 2020 Highlights

• Net cash provided by operating activities of $83.2 million, an increase of 37.5% compared to $60.5 million in the prior year period.
• Free Cash Flow of $77.4 million, an increase of 61.9% compared to the prior year period of $47.8 million.
• Total revenue of $608.1 million; a 2.7% decrease compared to the prior year period of $624.8 million.
• Maintenance land revenue of $444.0 million; a 2.6% decrease compared to the prior year period of $455.7 million;
• Development revenue of $165.1 million, a 3.3% decrease compared to the prior year period of $170.7 million.
• Net Loss of $6.1 million, or $(0.06) per share, and a net loss margin of 1.0%, compared to Net Income of $25.1 million, or $0.24 per share, and a net income margin of 4.0%, in the prior year period.
• Adjusted EBITDA of $90.0 million and Adjusted EBITDA margin of 14.8%, compared to Adjusted EBITDA of $91.9 million and Adjusted EBITDA margin of 14.7% in the prior year period.

Full Year Fiscal 2020 Highlights

• Net cash provided by operating activities of $245.1 million, an increase of 44.4% compared to $169.7 million in the prior year.
• Free Cash Flow of $197.2 million, an increase of 127.7% compared to the prior year of $86.6 million.
• Total revenue of $2,346.0 million, a 2.4% decrease compared to $2,404.6 million in the prior year.
• Maintenance revenue of $1,739.1 million, a 4.1% decrease compared to the prior year of $1,813.4 million;
  • Land revenue of $1,576.0 million, 0.5% growth compared to the prior year of $1,568.3 million;
  • Snow revenue of $163.1 million, a 33.5% decrease compared to the prior year of $245.1 million.
• Development revenue of $610.6 million, a 2.6% increase compared to the prior year of $595.4 million.
• Net Loss of $41.6 million, or $(0.40) per share, and a net loss margin of 1.8%, compared to Net Income of $44.4 million, or $0.43 per share, and a net income margin of 1.8%, in the prior year.
• Adjusted EBITDA of $271.6 million and Adjusted EBITDA margin of 11.6%, compared to Adjusted EBITDA of $305.1 million and Adjusted EBITDA margin of 12.7% in the prior year.

“During the quarter we generated a record $77.4 million in Free Cash Flow, totaling $197.2 million for the full fiscal year, also a record for the Company,” said John Feenan, BrightView Executive Vice President and Chief Financial Officer. “We continue to maintain a disciplined financial policy while remaining intensely focused on accretive transactions and paying down debt. The fundamentals of our business and our industry remain strong and our cash generation, combined with continued modest capital needs, will continue to drive stockholder value.”

Fiscal 2020 Results – Total BrightView

For the fourth quarter of fiscal 2020, total revenue decreased 2.7% to $608.1 million due to decreases in both the Maintenance Services Segment and Development Services Segment revenues. Net Loss was $6.1 million compared to Net Income of $25.1 million in the 2019 period, attributable to an increase in non-recurring expenses and a decline in gross profit and gross profit margin principally due to lower ancillary revenue, partially offset by decreases in Interest expense and Income tax expense. Total Adjusted EBITDA decreased 2.1% to $90.0 million from $91.9 million in the 2019 period. Maintenance Services Segment Adjusted EBITDA of $77.2 million remained flat compared to the 2019 period. Development Services Segment Adjusted EBITDA decreased slightly to $26.3 million from $26.7 million in the 2019 period. The Segment Adjusted EBITDA results are discussed further below.

For the fiscal year ended September 30, 2020, total revenue decreased 2.4% to $2,346.0 million due to a decrease in Maintenance Services Segment revenues driven by meaningfully lower snowfall as compared to historical averages as well as a reduction in demand for ancillary services as a result of the COVID-19 pandemic, partially offset by an increase in Development Services Segment revenues. Total Adjusted EBITDA was $271.6 million, down 11.0% versus the prior year, principally due to a decrease in Maintenance Services Segment Adjusted EBITDA driven by the decremental margins as a result of the lower snow revenue as well as a reduction in demand for ancillary services as a result of the COVID-19 pandemic. Development Services Segment Adjusted EBITDA decreased slightly to $80.2 million from $81.7 million in the 2019 period. Corporate expenses remained flat when compared to the prior year. The Segment Adjusted EBITDA results are discussed further below.

Fiscal 2020 Results – Segments

For the fourth quarter of fiscal 2020, revenue in the Maintenance Services Segment decreased 2.5% to $443.9 million. Revenues from landscape maintenance services were $444.0 million, a decrease of $11.7 million over the 2019 period, driven by a $36.8 million decrease principally due to a reduction in demand for ancillary services as a result of the COVID-19 pandemic, partially offset by a $25.1 million revenue contribution from acquired businesses.

Adjusted EBITDA for the Maintenance Services Segment in the quarter remained flat at $77.2 million. Overhead cost reductions in the quarter combined with the revenue contribution from acquired businesses fully offset the decrease in landscape maintenance ancillary services revenues described above. Segment Adjusted EBITDA Margin increased 40 basis points, to 17.4%, in the three months ended September 30, 2020, from 17.0% in the 2019 period, due to the overhead cost reductions as well as an increase in contract revenue margins, partially offset by the decline in ancillary services revenue.

For the fiscal year ended September 30, 2020, revenue in the Maintenance Services Segment decreased 4.1% to $1,739.1 million. Revenues from snow removal services were $163.1 million, a decrease of $82.0 million over the 2019 period and revenues from landscape services were $1,576.0 million, an increase of $7.7 million over the 2019 period. The decrease in snow removal services was primarily attributable to a decreased frequency of snowfall events, the geographical distribution of the snowfall events which negatively impacted the Mid-Atlantic, Northeast, and Midwest regions, the lower volume of snowfall per event and the lower relative snowfall in the fiscal year ended September 30, 2020 (for our current branch structure, snowfall for the fiscal years ended September 30, 2020 and 2019 was 61.6% and 86.3%, respectively, of the historical 10-year average for that twelve-month period). The increase in landscape services revenues was driven by a $101.9 million revenue contribution from acquired businesses, partially offset by a decrease of $94.2 million, the majority of which was due to a reduction in demand for ancillary services as a result of the COVID-19 pandemic.

Adjusted EBITDA for the Maintenance Services Segment for the fiscal year ended September 30, 2020 decreased 11.3% to $250.1 million. Segment Adjusted EBITDA Margin decreased 120 basis points to 14.4% versus 15.6% in the prior year. The decreases in Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin were due to the decrease in net service revenues described above.

For the fourth quarter of fiscal 2020, revenue in the Development Services Segment decreased 3.3% to $165.1 million, principally driven by project and construction delays related to the COVID-19 pandemic.

Adjusted EBITDA for the Development Services Segment decreased slightly to $26.3 million in the quarter compared to $26.7 million in the prior year period. Segment Adjusted EBITDA Margin increased 20 basis points, to 15.9%, in the three months ended September 30, 2020, from 15.7% in the 2019 period, partially offsetting the decline in net service revenues described above.

For the fiscal year ended September 30, 2020, revenue in the Development Services Segment increased 2.6% to $610.6 million. The increase in Development Services revenues was driven by higher first half project volumes and a stronger first half project completion percentage compared to the prior year.

Adjusted EBITDA for the Development Services Segment decreased 1.8% to $80.2 million during the fiscal year ended September 30, 2020. Segment Adjusted EBITDA Margin decreased 60 basis points, to 13.1%, in the fiscal year ended September 30, 2020, from 13.7% in the 2019 period. The decreases in Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin were due principally to the completion of certain large projects in the prior year and construction delays as a result of the COVID-19 pandemic, partially offset by the increase in net service revenues described above.

Net cash provided by operating activities increased $75.4 million to $245.1 million for the fiscal year ended September 30, 2020, compared to $169.7 million for the prior year. This increase was primarily due to an increase in cash provided by improvements in net working capital, including accounts payable and other operating liabilities, unbilled and deferred revenue, and accounts receivable. The increase was partially offset by a decrease in cash provided by net income (loss).

Free Cash Flow for the fiscal year ended September 30, 2020 was $197.2 million, an increase of $110.6 million versus the prior year. The increase in Free Cash Flow was due to the increase in cash flows from operating activities of $75.4 million described above, as well as a decrease in capital expenditures of $37.2 million, partially offset by a decrease in proceeds from the sale of property and equipment of $2.0 million, each as described below.

For the fiscal year ended September 30, 2020, capital expenditures were $52.7 million, compared with $89.9 million in the prior year. The Company also generated proceeds from the sale of property and equipment of $4.8 million and $6.8 million in fiscal 2020 and 2019, respectively. Net of the proceeds from the sale of property and equipment in each year, net capital expenditures represented 2.0% and 3.5% of revenue in fiscal 2020 and 2019, respectively.

As of September 30, 2020, the Company’s Total Net Financial Debt was $1,015.2 million, a decrease of $115.9 million compared to $1,131.1 million as of September 30, 2019. The Company’s Total Net Financial Debt to Adjusted EBITDA ratio was 3.7x as of September 30, 2020 and September 30, 2019.

Recent Developments

Acquisition of Commercial Landscaping Company – All Commercial Landscaping Services (ACLS)

In September 2020, BrightView acquired ACLS, a full-service landscaping company specializing in landscape maintenance, irrigation, enhancement, arbor care and water management. Their clients include commercial, municipal, multi-family and retail organizations throughout the greater Fresno market.

Disposal of BrightView Tree Company, and Acquisition of Commercial Landscaping Company – Commercial Tree Care, Inc. (CTC)

In September 2020, BrightView sold its tree nursery business, BrightView Tree Company, and in October 2020, BrightView acquired CTC, a full-service tree care company based in San Jose, Calif. Founded in 1992, CTC is a full-service tree care provider specializing in pruning, tree removal, stump grinding, cabling, bracing, fertility treatment, pest and disease control, install and transplant, forestry fire fighting and timber harvesting. CTC also consults for development, appraisal, maintenance plans and overall site evaluation. The combination of these two transactions support BrightView’s overall strategic growth plan to redeploy assets from the Development segment to the Maintenance segment, as CTC will be accounted for in the Maintenance segment and BrightView Tree Company was accounted for in the Development segment.

Acquisition of Commercial Landscaping Company – Water, Land, Environment (WLE), LLC

In October 2020, BrightView acquired WLE, a commercial landscape maintenance and development company headquartered in Austin, Texas. Founded in 2003, WLE (Water | Land | Environment) is a full-service commercial landscape management company, whose 250-member team serves HOA, developer, commercial, and municipal clients across three markets in Central Texas.

COVID-19 Update

• Throughout the entire country, landscape maintenance is recognized as an essential service.
• All branches are operational with no limitations on scope of services.
• Executed downturn playbook and are continuing to exercise prudence, limiting discretionary spending, managing capital expenditures and working capital, and enhancing liquidity.
• Prioritizing additional actions to protect revenue and margins, and preserve cash in the event of a continued and prolonged resurgence.
• Specific Health and Safety actions include:
  • Proactively communicating critical information from CDC to employees.
  • Implemented branch based social distancing and hygiene and sanitization procedures.
  • Continuing to prohibit non-essential travel and mandated work from home policies as applicable.
  • Adhering to state and local mandates and guidelines.
  • Tracking current and potential exposures, imposing quarantine measures, and assigning case workers.
  • Implemented protocols requiring face coverings.

Conference Call Information

A conference call to discuss the fourth quarter and full-year fiscal 2020 financial results is scheduled for November 18, 2020, at 10 a.m. EST. The U.S. toll free dial-in for the conference call is (877) 273-7124 and the international dial-in is (647) 689-5396. The conference passcode is 8092614. A live audio webcast of the conference call will be available on the Company’s investor website, where presentation materials will be posted prior to the call.

A replay of the call will be available from 1 p.m. EST on November 18, 2020 to 11:59 p.m. EST on November 25, 2020. To access the recording, dial (800) 585-8367 or (416) 621-4642 (Conference ID 8092614).