BrightView Holdings, Inc. (NYSE:BV) will host its 2021 Virtual Investor Day event on Tuesday, September 21, 2021 starting at 9 a.m. EDT. BrightView President and Chief Executive Officer, Andrew Masterman, together with Executive Vice President and Chief Financial Officer John Feenan, will host the event. Program highlights include sessions led by the following key executives:

• Todd Chambers – Executive Vice President and Chief Marketing Officer
• Brian Bruce – Executive Vice President and Chief Information Officer
• Jamie Gollotto – President, Maintenance Services (Seasonal)
• Tom Donnelly – President, Development Services
• Amanda Orders – Executive Vice President and Chief Human Resources Officer
• Brett Urban – Senior Vice President, Finance

Event Webcast Details:

The company will webcast its Investor Day live which can be accessed through the website link below or by phone at the following number:

Participants are encouraged to pre-register at BrightView Investor Day 2021 and log in to the webcast as the primary listening and viewing source. Participants will have opportunities to ask questions using the conference call dial-in numbers.

BrightView Holdings, Inc. (NYSE: BV) (the “Company” or “BrightView”), the leading commercial landscaping services company in the United States, today reported unaudited results for the third quarter ended June 30, 2021.

(Graphic: Business Wire)

“We are very pleased with an exceptional quarter driven by Maintenance Land organic revenue growth of 11.7%, which was the strongest since our 2018 IPO. Our return to positive organic growth is again a testament to the investments made in our expanded sales teams and sales enablement technologies, and underpins our Adjusted EBITDA improvement. Free Cash Flow generation remained strong, funding our acquisition strategy, which continues to be a reliable and sustainable source of revenue growth” said Andrew Masterman, BrightView President and Chief Executive Officer. “Following a strong first half of fiscal 2021, our talented and seasoned teams continued to overcome labor headwinds, job delays and supply chain challenges to deliver even stronger results in the third quarter. Overall, I am pleased as we continue to successfully execute our strategy and gain strength as a company. I could not be prouder of our 20,000 plus team members or more confident about our future and ability to deliver superior results to all stakeholders.”

Third Quarter Fiscal 2021 Highlights

• Total revenue of $673.6 million, a 10.8% increase compared to $608.1 million in the prior year.
• Maintenance revenue of $524.6 million, a 15.0% increase compared to $456.3 million in the prior year;
  • Land revenue of $521.2 million compared to the prior year of $451.2 million underpinned by organic revenue growth of 11.7%.
• Development revenue of $150.3 million, a 1.6% decrease compared to $152.8 million in the prior year.
• Net Income of $25.2 million, or $0.24 per share, compared to Net Loss of $2.4 million, or $(0.02) per share in the prior year; Net Income Margin of 3.7%, an improvement of 410 basis points compared to prior year Net Loss Margin of 0.4%.
• Adjusted EBITDA of $93.6 million, an increase of $2.6 million or 2.9% compared to Adjusted EBITDA of $91.0 million in the prior year; Adjusted EBITDA margin of 13.9%, a decrease of 110 basis points compared to Adjusted EBITDA margin of 15.0% in the prior year.
• Net cash provided by operating activities of $50.0 million and Free Cash Flow generation of $37.3 million.

Nine Months Fiscal 2021 Highlights

• Total revenue of $1,879.9 million, an 8.2% increase compared to $1,737.9 million in the prior year.
• Maintenance revenue of $1,478.4 million, a 14.7% increase compared to $1,288.7 million in the prior year;
  • Land revenue of $1,193.2 million compared to the prior year of $1,125.6 million underpinned by organic revenue growth of 1.5%;
  • Snow revenue of $285.2 million compared to the prior year of $163.1 million.
• Development revenue of $404.7 million, a 10.4% decrease compared to $451.9 million in the prior year.
• Net Income of $19.5 million, or $0.19 per share, and a Net Income Margin of 1.0%, compared to Net Loss of $35.5 million, or ($0.34) per share, and a net loss margin of 2.0%, in the prior year.
• Adjusted EBITDA of $212.8 million, an increase of $31.2 million or 17.2% compared to Adjusted EBITDA of $181.6 million in the prior year; Adjusted EBITDA margin of 11.3%, an increase of 90 basis points compared to Adjusted EBITDA margin of 10.4% in the prior year.
• Net cash provided by operating activities of $133.4 million and Free Cash Flow generation of $96.2 million.

Fiscal 2021 Results – Total BrightView

For the third quarter of fiscal 2021, total revenue increased 10.8% to $673.6 million driven principally by an increase in Maintenance Services revenues of $68.3 million. Net Income was $25.2 million compared to Net Loss of $2.4 million in the prior year period. Total Adjusted EBITDA increased $2.6 million, or 2.9%, to $93.6 million from $91.0 million in the prior year period. Maintenance Services Segment Adjusted EBITDA increased $7.3 million, or 8.8%, to $90.6 million compared to $83.3 in the prior year period. Development Services Segment Adjusted EBITDA decreased $3.1 million to $18.7 million from $21.8 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 nine months ended June 30, 2021, total revenue increased 8.2% to $1,879.9 million driven principally by an increase in Maintenance Services revenues of $189.7 million. Net Income was $19.5 million compared to Net Loss of $35.5 million in the prior year period. Total Adjusted EBITDA increased $31.2 million, or 17.2%, to $212.8 million from $181.6 million in the prior year period. Maintenance Services Segment Adjusted EBITDA increased $40.8 million, or 23.8%, to $212.5 million compared to $171.7 million in the prior year period. Development Services Segment Adjusted EBITDA decreased to $46.6 million from $55.1 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 third quarter of fiscal 2021, revenue in the Maintenance Services Segment increased by $68.3 million, or 15.0%, from the 2020 period. The increase was primarily driven by a $52.8 million increase in commercial landscape services underpinned by a combination of contract and ancillary services growth, as well as an $18.0 million revenue contribution from acquired businesses.

Adjusted EBITDA for the Maintenance Services Segment for the three months ended June 30, 2021 increased by $7.3 million to $90.6 million from $83.3 million in the 2020 period. The increase in Segment Adjusted EBITDA was principally driven by the increase in Maintenance Services revenues discussed above. Segment Adjusted EBITDA Margin decreased 100 basis points, to 17.3%, in the three months ended June 30, 2021, from 18.3% in the 2020 period, primarily due to higher material costs and increased labor costs inclusive of the Juneteenth company holiday introduced in June 2021.

For the nine months ended June 30, 2021, revenue in the Maintenance Services Segment increased by $189.7 million, or 14.7%, from the 2020 period. Revenues from snow removal services were $285.2 million, an increase of $122.1 million over the 2020 period, and revenues from landscape services were $1,193.2 million, an increase of $67.6 million over the 2020 period. The increase in snow removal services was primarily attributable to the increased frequency of snowfall events and the higher relative snowfall in the nine months ended June 30, 2021 compared to the prior year period. The increase in landscape services revenues was driven by a $53.2 million revenue contribution from acquired businesses and a $16.8 million increase in commercial landscape services underpinned by a combination of contract and ancillary services growth.

Adjusted EBITDA for the Maintenance Services Segment for the nine months ended June 30, 2021 increased $40.8 million, to $212.5 million, compared to $171.7 million in the 2020 period. Segment Adjusted EBITDA Margin increased 110 basis points, to 14.4%, in the nine months ended June 30, 2021, from 13.3% in the 2020 period. The increases in Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin were principally driven by the increase in net service revenues described above and a decrease in Selling, general, and administrative expenses due to cost containment actions.

For the third quarter of fiscal 2021, revenue in the Development Services Segment decreased $2.5 million, or 1.6%, compared to the 2020 period. The decrease in Development Services revenues was principally driven by an $11.6 million reduction due to reduced backlog as a result of the COVID-19 pandemic, coupled with a $5.9 million reduction due to the sale of BrightView Tree Company in September 2020, partially offset by a $14.9 million revenue contribution from acquired businesses.

Adjusted EBITDA for the Development Services Segment for the three months ended June 30, 2021 decreased $3.1 million, to $18.7 million, compared to the 2020 period. Segment Adjusted EBITDA Margin decreased 190 basis points, to 12.4% for the quarter from 14.3% in the 2020 period. Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin decreased due to the decrease in net service revenues described above coupled with higher material costs, partially offset by a decrease in Selling, general, and administrative expenses due to cost containment actions.

For the nine months ended June 30, 2021, revenues for the Development Services Segment decreased $47.2 million, or 10.4%, compared to the 2020 period. The decrease in Development Services revenues was principally driven by a $58.2 million reduction due to reduced backlog as a result of the COVID-19 pandemic, partially offset by a $29.6 million revenue contribution from acquired businesses. In addition, the sale of BrightView Tree Company in September 2020 reduced net service revenues by $18.6 million for the nine months ended June 30, 2021.

Adjusted EBITDA for the Development Services Segment for the nine months ended June 30, 2021 decreased $8.5 million, to $46.6 million, compared to the 2020 period. Segment Adjusted EBITDA Margin decreased 70 basis points to 11.5% in the nine months ended June 30, 2021, from 12.2% in the 2020 period. Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin decreased 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.

Net cash provided by operating activities for the nine months ended June 30, 2021 decreased $28.5 million, to $133.4 million, from $161.9 million in the 2020 period. This decrease was due to a reduction in the cash provided by accounts receivable, unbilled and deferred revenue, and accounts payable and other operating liabilities, partially offset by an increase in cash provided by other operating assets.

Free Cash Flow decreased $23.6 million to $96.2 million for the nine months ended June 30, 2021 from $119.8 million in the 2020 period. The decrease in Free Cash Flow was due to a decrease in cash provided by operating activities, as described above.

For the nine months ended June 30, 2021, capital expenditures were $44.7 million, compared with $45.9 million in the prior year. The Company also generated proceeds from the sale of property and equipment of $7.5 million and $3.8 million during the nine months ended June 30, 2021 and 2020, respectively. Net of the proceeds from the sale of property and equipment, net capital expenditures represented 2.0% and 2.4% of revenue in the nine months ended June 30, 2021 and 2020, respectively.

As of June 30, 2021, the Company’s Total Net Financial Debt was $1,048.1 million, a decrease of $63.5 million compared to $1,111.6 million as of June 30, 2020. The Company’s Total Net Financial Debt to Adjusted EBITDA ratio was 3.5x and 4.1x as of June 30, 2021 and June 30, 2020, respectively.

Recent M&A Activity
In June 2021, BrightView acquired Baytree Landscape, a full-service landscaping company based in the southeast market. Founded in 2014, with six primary locations and a skilled labor force of approximately 370 team members, Baytree is recognized as a leader in the southeast market.

Additionally, in June 2021, BrightView acquired West Bay Landscape, a service leader in the desirable Southwest Florida market. The company, with 125 trained personnel, provides a mix of revenue with enhancement and maintenance services, and strengthens our presence in a desirable market.

Conference Call Information

A conference call to discuss the third quarter fiscal 2021 financial results is scheduled for August 5, 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 9518947. 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 August 5, 2021 to 11:59 p.m. EDT on August 12, 2021. To access the recording, dial (800) 585-8367 or (416) 621-4642 (Conference ID 9518947).

BrightView Holdings, Inc. (NYSE: BV) announced today that it will hold its third quarter fiscal 2021 earnings conference call on August 5, 2021 at 10 a.m. EDT. A press release detailing the Company's results will be issued prior to the call. The information to join the earnings conference call is as follows:

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 press release, earnings presentation and live webcast will also be accessible on the company's investor website.

BrightView Holdings, Inc. (NYSE: BV), the leading commercial landscaping services company in the United States, today announced the acquisition of West Bay Landscape, a landscape maintenance firm in Bradenton, Fla. Terms of the transaction were not disclosed.

“West Bay is a leader in the Central Florida market and represents an important addition to our existing landscape maintenance operations,” said BrightView CEO and President Andrew Masterman. “Over the past four decades, West Bay has grown steadily and today is one of the region’s top landscape maintenance firms. We are delighted to welcome them to BrightView.”

West Bay’s primary focus is commercial landscape maintenance, serving clients within a 30-mile radius of their base in Bradenton, south of Tampa Bay on Florida’s Gulf Coast.

“We are excited to join the BrightView family, and for all of the new opportunities this will bring to our team. With BrightView’s enhanced resources, processes, and systems, we will be able to expand West Bay’s standard of high level customer service within our market,” said West Bay President Ron Sikkema.

BrightView Holdings, Inc. (NYSE: BV), the leading commercial landscaping services company in the United States, today announced the acquisition of Baytree Landscape Contractors, Inc., a full-service landscape firm based in Atlanta, Ga. Terms of the transaction were not disclosed.

“We are pleased to add Baytree, a landscaper with a stellar reputation for high quality work, to our operations in the Southeast,” said BrightView President and CEO Andrew Masterman. “Like BrightView, Baytree has achieved success across the spectrum of landscape services: design, development, irrigation, maintenance and enhancement. We look forward to bringing their skilled workforce and leadership into the BrightView family.”

Baytree operates from six primary locations: Atlanta, Ga., Johns Island, S.C., Charleston, S.C., Myrtle Beach, S.C., Charlotte, N.C., and Nashville, Tenn. At peak, Baytree employs more than 370 team members.

"The team at Baytree is excited about the many opportunities that being a part of the BrightView organization will bring,” said Andrew S. Watkins, Baytree President and CEO. “The people part of our business is everything. BrightView has put a priority on that from day one of this process."

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.