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, 2020.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200805005317/en/

(Graphic: Business Wire)

“Our quarterly results highlight the resiliency of our contract-based business and reflect the positive underlying trends of our strong-on-strong acquisition strategy, cash generation and liquidity, and 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. Our team has done an incredible job responding to the COVID-19 crisis by prioritizing health and safety 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 benefited from cost management actions. Cash generation remains exceptional, margins strong, our capex requirements are 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 be felt over the next few quarters as conditions remain fluid. That said, we believe we are in a strong position to generate near-term solid EBITDA results, continued strong cash generation and stable top line performance.”

Third Quarter Fiscal 2020 Highlights

• Net cash provided by operating activities of $76.2 million, an increase of 71.2% compared to $44.5 million in the prior year.
• Free Cash Flow of $66.5 million, an increase of 385.4% compared to prior year of $13.7 million.
• Total revenue of $608.1 million; a 7.5% decrease compared to prior year of $657.2 million.
• Maintenance revenue of $460.0 million; a 6.5% decrease compared to prior year of $492.1 million;
  • Land revenue of $454.9 million; 6.5% decrease compared to prior year of $486.4 million.
• Development revenue of $149.1 million, a 10.3% decrease compared to prior year of $166.3 million.
• Net Loss of $2.4 million, or $(0.02) per share, and a net loss margin of 0.4%, compared to Net Income of $31.7 million, or $0.31 per share, and a net income margin of 4.8%, in the prior year.
• Adjusted EBITDA of $91.0 million and Adjusted EBITDA margin of 15.0%, compared to Adjusted EBITDA of $101.9 million and Adjusted EBITDA margin of 15.5% in the prior year.

Nine Months Fiscal 2020 Highlights

• Net cash provided by operating activities of $161.9 million, an increase of 48.3% compared to $109.2 million in the prior year.
• Free Cash Flow of $119.8 million, an increase of 208.8% compared to prior year of $38.8 million.
• Total Revenues for the nine months were $1,737.9 million, a 2.4% decrease compared to $1,779.9 million in the prior year.
• Maintenance revenue of $1,295.1 million; a 4.6% decrease compared to prior year of $1,358.0 million;
  • Land revenue of $1,132.0 million; 1.7% growth compared to prior year of $1,112.6 million;
  • Snow revenue of $163.1 million; a 33.5% decrease compared to prior year of $245.4 million.
• Development revenue of $445.5 million, a 4.9% increase compared to prior year of $424.7 million.
• Net Loss of $35.5 million, or $(0.34) per share, and a net loss margin of 2.0%, compared to Net Income of $19.3 million, or $0.19 per share, and a net income margin of 1.1%, in the prior year.

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.

Adjusted EBITDA of $181.6 million and Adjusted EBITDA margin of 10.4%, compared to Adjusted EBITDA of $213.1 million and Adjusted EBITDA margin of 12.0% in the prior year, with the negative variance largely driven by the decremental margins due to the lower snow revenue. “During the quarter we generated $66.5 million in Free Cash Flow, which further helped to benefit our strong liquidity” 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 modest capital needs, will continue to drive stockholder value.”

For the third quarter of fiscal 2020, total revenue decreased 7.5% to $608.1 million due to decreases in both the Maintenance Services Segment and Development Services Segment revenues. Net Loss was $2.4 million compared to Net Income of $31.7 million in the 2019 period, attributable to lower Income from operations, principally driven by an increase in non-recurring expenses and a decline in gross profit due to lower ancillary revenue, partially offset by an increase in Other income, a decrease in Interest expense and an increase in the Income tax benefit. Total Adjusted EBITDA decreased 10.7% due to a decrease in both Maintenance Services Segment Adjusted EBITDA and Development Services Segment Adjusted EBITDA, as discussed further below. The decrease in Adjusted EBITDA was partially offset by a decrease in corporate expenses of $2.1 million.

For the nine months ended June 30, 2020, total revenue decreased 2.4% to $1,737.9 million due to a decrease in Maintenance Services Segment revenues driven by meaningfully lower snowfall as compared to historical averages, partially offset by an increase in Development Services Segment revenues. Total Adjusted EBITDA was $181.6 million, down 14.8% versus the prior year, due to a decrease in Maintenance Services Segment Adjusted EBITDA driven by the decremental margins as a result of the lower snow revenue and a decrease in Development Services Segment Adjusted EBITDA, as discussed further below. The decrease in Adjusted EBITDA was partially offset by a reduction in corporate expenses of $1.5 million.

For the third quarter of fiscal 2020, revenue in the Maintenance Services Segment decreased 6.5% to $460.0 million. Revenues from landscape maintenance services were $454.9 million, a decrease of $31.5 million over the 2019 period, driven by a $60.1 million decrease principally due to a reduction in demand for ancillary services as a result of the COVID-19 pandemic, partially offset by a $28.6 million revenue contribution from acquired businesses.

Adjusted EBITDA for the Maintenance Services Segment in the quarter decreased 7.8% to $84.0 million, principally driven by the decrease in landscape maintenance ancillary services revenues described above. Segment Adjusted EBITDA Margin decreased 20 basis points versus the prior year, to 18.3%, in the three months ended June 30, 2020, from 18.5% in the 2019 period due to the decline in ancillary offset by overhead cost reductions.

For the nine months ended June 30, 2020, revenue in the Maintenance Services Segment decreased 4.6% to $1,295.1 million. Revenues from snow removal services were $163.1 million, a decrease of $82.3 million over the 2019 period and revenues from landscape services were $1,132.0 million, an increase of $19.4 million over the 2019 period. The decrease in snow removal services is 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 nine months ended June 30, 2020 (for our current branch structure, snowfall for the nine months ended June 30, 2020 and 2019 was 61.1% and 86.3%, respectively, of the historical 10-year average for that nine-month period). The increase in landscape services revenues was driven by a $76.8 million revenue contribution from acquired businesses, partially offset by a decrease of $55.7 million principally 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 nine months ended June 30, 2020 decreased 15.6% to $172.9 million, with the Adjusted EBITDA Margin decreasing 170 basis points versus the prior year. The decreases in Segment Adjusted EBITDA and Adjusted EBITDA Margin were due to the decrease in net service revenues described above.

For the third quarter fiscal 2020, revenue in the Development Services Segment decreased 10.3% to $149.1 million. The decrease in development services revenues was principally driven by project and construction delays related to shelter in place orders as a result of the COVID-19 pandemic.

Adjusted EBITDA for the Development Services Segment decreased 21.9% to $21.1 million in the quarter. Segment Adjusted EBITDA Margin decreased 200 basis points, to 14.2%, in the three months ended June 30, 2020, from 16.2% in the 2019 period. The decrease in Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin was due principally to the completion of certain large projects in the prior year combined with the decrease in net service revenues described above.

For the nine months ended June 30, 2020, revenues for the Development Services Segment increased 4.9% to $445.5 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 2.0% to $53.9 million during the nine months ended June 30, 2020. Segment Adjusted EBITDA Margin decreased 90 basis points, to 12.1%, in the nine months ended June 30, 2020, from 13.0% in the 2019 period. The decrease in Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin was due principally to the completion of certain large projects in the prior year, partially offset by the increase in net service revenues described above.

Net cash provided by operating activities for the nine months ended June 30, 2020 was $161.9 million, compared to $109.2 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 an increase in cash provided by accounts receivable, partially offset by a decrease in cash provided by net income and a decrease in cash provided by other operating assets.

Free Cash Flow for the nine months ended June 30, 2020 was $119.8 million, an increase of $81.0 million versus the prior year. The increase in Free Cash Flow was due to an increase in cash flows from operating activities of $52.7 million as well as a decrease in capital expenditures of $31.3 million, partially offset by a decrease in proceeds from the sale of property and equipment of $3.0 million.

For the nine months ended June 30, 2020, capital expenditures were $45.9 million, compared with $77.2 million in the prior year. The Company also generated proceeds from the sale of property and equipment of $3.8 million and $6.8 million in the nine months of fiscal 2020 and 2019, respectively. Net of the proceeds from the sale of property and equipment in the nine months, net capital expenditures represented 2.4% and 4.0% of revenue in the nine months of fiscal 2020 and 2019, respectively.

As of June 30, 2020, the Company’s Total Net Financial Debt was $1,111.6 million, a decrease of $59.0 million compared to $1,170.6 million as of June 30, 2019. The Company’s Total Net Financial Debt to Adjusted EBITDA ratio was 4.1x as of June 30, 2020, compared with 3.9x as of June 30, 2019.

COVID-19 Update

• Throughout the entire country, landscape maintenance is recognized as an essential service.
• All branches operational with no limitations on scope of services.
• Executing downturn playbook and implementing prudent actions to preserve cash.
• Temporarily deferring discretionary merit increases and implemented a hiring freeze.
• Continuing to limit discretionary spending and capital expenditures.
• 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 third quarter fiscal 2020 financial results is scheduled for August 5, 2020, at 10 a.m. EDT. The conference call and webcast can be accessed by registering online here at which time registrants will receive dial-in details and a unique conference code for entry. The news release and a live webcast of the conference will also be accessible on the company's investor website.

A replay of the call will be available from 1 p.m. EDT on August 5, 2020 to 11:59 p.m. EDT on August 12, 2020. To access the recording, dial (800) 585-8367 or (416) 621-4642 (Conference ID 5266712).

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, 2020.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200507005220/en/

(Graphic: Business Wire)

Second Quarter Fiscal 2020 Highlights

• Maintenance revenue of $416.2 million; a 12.1% decline compared to prior year of $473.3 million;
  • Snow revenue of $102.5 million; a 46.5% decline compared to prior year of $191.5 million.
    • Decline driven by meaningfully lower snowfall as compared to historical averages.
  • Land revenue of $313.7 million; 11.3% growth compared to prior year of $281.8 million.
    • Maintenance land organic growth of 1.9%.
• Development revenue of $143.6 million, a 15.8% increase compared to prior year of $124.0 million;
• M&A strategy continues to be a reliable and sustainable source of revenue growth;
  • Acquired three commercial landscaping companies in critical and growing markets;
• Net Loss of $20.5 million, or $(0.20) per share, and a net loss margin of 3.7%, compared to Net Loss of $3.6 million, or $(0.04) per share, and a net loss margin of 0.6%, in the prior year;
• Adjusted EBITDA of $38.9 million and Adjusted EBITDA margin of 7.0%, compared to Adjusted EBITDA of $61.1 million and Adjusted EBITDA margin of 10.2% in the prior year, with the negative variance largely driven by the decremental margins due to the 46.5% lower snow revenue which would normally better leverage our fixed cost base during the snow season;
• Cash flows from operating activities of $78.4 million, an increase of 34.5% compared to $58.3 million in the prior year;
• Free Cash Flow of $59.4 million, an increase of 73.7% compared to prior year of $34.2 million.

Six Months Fiscal 2020 Highlights

• Total Revenues for the six months were $1,129.8 million, a 0.6% increase compared to $1,122.7 million in the prior year;
• Maintenance revenue of $835.1 million; a 3.5% decline compared to prior year of $865.8 million;
  • Snow revenue of $158.1 million; a 34.0% decline compared to prior year of $239.7 million.
    • Decline driven by meaningfully lower snowfall as compared to historical averages.
  • Land revenue of $677.0 million; 8.1% growth compared to prior year of $626.1 million.
    • Maintenance land organic growth of 0.7% excluding the impact in the first fiscal quarter from the wind down of our strategic managed exit initiative.
• Development revenue of $296.4 million, a 14.7% increase compared to prior year of $258.4 million;
• Net Loss of $33.1 million, or ($0.32) per share, and a net loss margin of 2.9%, compared to Net Loss of $12.4 million, or ($0.12) per share, and a net loss margin of 1.1%, in the prior year;
• Adjusted EBITDA of $90.5 million and Adjusted EBITDA margin of 8.0%, compared to Adjusted EBITDA of $111.2 million and Adjusted EBITDA margin of 9.9% in the prior year, with the negative variance largely driven by the decremental margins due to the lower snow revenue;
• Cash flows from operating activities of $85.7 million, an increase of 32.5% compared to $64.7 million in the prior year;
• Free Cash Flow of $53.3 million, an increase of 112.4% compared to prior year of $25.1 million.

“We are very pleased with our Landscape maintenance organic revenue growth of 1.9% in the quarter, which was the strongest since our 2018 IPO. Free Cash Flow remains robust and our Development Segment delivered its third straight quarter of double-digit revenue growth,” said Andrew Masterman, BrightView President and Chief Executive Officer. “Historically low snowfall in many of our key regions had an adverse impact on both revenue and Adjusted EBITDA, but we are encouraged by the growth trend on snow contracts. Further, our acquisition strategy continued to be a reliable and sustainable source of revenue growth. As an essential service as defined by the Department of Homeland Security, all branches are operational at this time, with only isolated limitations as to the scope of services we can provide, specifically in the city of Boston, New York City and the San Francisco Bay Area. Keeping our employees, their families and our customers safe is our number one priority. BrightView is well positioned to overcome potential headwinds due to the COVID-19 outbreak and emerge from this crisis a stronger company.”

Fiscal 2020 Results – Total BrightView

For the second quarter of fiscal 2020, total revenue decreased 6.3% to $559.1 million due to decreases in the Maintenance Services Segment driven by meaningfully lower snowfall as compared to historical averages, partially offset by increases in Development Services Segment revenues. Net Loss was $20.5 million compared to $3.6 million in the 2019 period, attributable to lower Income from operations and a decrease in Other income, partially offset by a decrease in Interest expense and an increase in the Income tax benefit. Total Adjusted EBITDA decreased 36.3% due to a decrease in Maintenance Services Segment Adjusted EBITDA driven by the decremental margins as a result of the lower snow revenue, partially offset by an increase in Development Services Segment Adjusted EBITDA, as discussed further below.

For the six months ended March 31, 2020, total revenue increased 0.6% to $1,129.8 million due to increases in Development Services Segment, partially offset by a decrease in Maintenance Services Segment revenues driven by meaningfully lower snowfall as compared to historical averages. Total Adjusted EBITDA was $90.5 million, down 18.6% versus the prior year, due to a decrease in Maintenance Services Segment Adjusted EBITDA driven by the decremental margins as a result of the lower snow revenue, partially offset by an increase in Development Services Segment Adjusted EBITDA, as discussed further below.

Fiscal 2020 Results – Segments

For the second quarter fiscal 2020, revenue in the Maintenance Services Segment decreased 12.1% to $416.2 million. Revenues from snow removal services were $102.5 million, a decrease of $89.0 million over the 2019 period and revenue from landscape maintenance services were $313.7 million, an increase of $31.9 million over the 2019 period. The decrease in snow removal services was primarily attributable to a decreased frequency of snowfall events, the lower volume of snowfall per event and the lower relative snowfall in the three months ended March 31, 2020 as compared to the 2019 period (for our current branch structure, snowfall for the three months ended March 31, 2020 and 2019 was 43.3% and 86.2%, respectively, of the historical 10-year average for that three-month period). The increase in landscape maintenance services was driven by a $26.6 million revenue contribution from acquired businesses as well as $5.3 million or 1.9% growth in underlying commercial landscaping.

Adjusted EBITDA for the Maintenance Services Segment in the quarter decreased 36.6% to $41.2 million, with the Adjusted EBITDA Margin decreasing 380 basis points versus the prior year. The decrease in Adjusted EBITDA Margin was principally due to the decrease in snow removal revenues described above as well as an increase in selling, general, and administrative expenses to drive new business growth and increase customer retention.

For the six months ended March 31, 2020, revenue in the Maintenance Services Segment decreased 3.5% to $835.1 million. Revenues from snow removal services were $158.1 million, a decrease of $81.6 million over the 2019 period and revenues from landscape maintenance services were $677.0 million, an increase of $50.9 million over the 2019 period. The decrease in snow removal services is primarily attributable to a decreased frequency of snowfall events, the lower volume of snowfall per event and the lower relative snowfall in the six months ended March 31, 2020 (for our current branch structure, snowfall for the six months ended March 31, 2020 and 2019 was 57.9% and 85.6%, respectively, of the historical 10-year average for that six-month period). The increase in landscape services revenues was driven by a $48.2 million revenue contribution from acquired businesses as well as $4.4 million or 0.7% growth in underlying commercial landscaping excluding the impact in the first fiscal quarter from the wind down of our strategic managed exit initiative.

Adjusted EBITDA for the Maintenance Services Segment for the six months ended March 31, 2020 decreased 21.8% to $88.9 million, with the Adjusted EBITDA margin decreasing 250 basis points versus the prior year. The decrease in Segment Adjusted EBITDA was due to the decrease in snow removal revenues described above as well as an increase in selling, general, and administrative expenses to drive new business growth and increase customer retention.

For the second quarter fiscal 2020, revenue in the Development Services Segment increased 15.8% to $143.6 million. The increase in Development Services revenues was driven by higher project volumes and an increase in the project completion percentage compared to the 2019 period.

Adjusted EBITDA for the Development Services Segment increased 24.5% to $13.7 million in the quarter. The increase in Segment Adjusted EBITDA was due to the increase in net service revenues described above combined with productivity improvements across the segment. Segment Adjusted EBITDA Margin increased 60 basis points, to 9.5%, in the three months ended March 31, 2020, from 8.9% in the 2019 period.

Revenues for the Development Services Segment increased 14.7% to $296.4 million for the six months ended March 31, 2020. The increase in Development Services revenues was driven by higher project volumes and an increase in the project completion percentage compared to the prior fiscal period.

Adjusted EBITDA for the Development Services Segment increased 16.7% to $32.8 million during the six months ended March 31, 2020. The increase in Segment Adjusted EBITDA was due to the increase in net service revenues described above as well as increased productivity across the segment. Segment Adjusted EBITDA Margin increased 20 basis points, to 11.1%, in the six months ended March 31, 2020, from 10.9% in the 2019 period.

Net cash provided by operating activities for the six months ended March 31, 2020 was $85.7 million, compared to $64.7 million for the prior year. This increase was primarily due to an increase in cash provided by accounts receivable and an increase in cash provided by unbilled and deferred revenue offset by a decrease in cash provided by other operating assets and a decrease in cash provided by accounts payable and other operating liabilities.

Free Cash Flow for the six months ended March 31, 2020 was $53.3 million, an increase of $28.2 million versus the prior year. The increase in Free Cash Flow was principally due to the increase in cash flows from operating activities of $21.0 million described above, as well as a decrease in capital expenditures of $7.5 million as further described below.

For the six months ended March 31, 2020, capital expenditures were $35.1 million, compared with $42.6 million in the prior year. The Company also generated proceeds from the sale of property and equipment of $2.7 million and $3.0 million in the first half of fiscal 2020 and 2019, respectively. Net of the proceeds from the sale of property and equipment in the six months, net capital expenditures represented 3.3% and 4.1% of revenue in the first half of fiscal 2020 and 2019, respectively.

As of March 31, 2020, the Company’s Total Net Financial Debt was $1,166.4 million, a decrease of $7.7 million compared to $1,174.1 million as of March 31, 2019. The Company’s Total Net Financial Debt to Adjusted EBITDA ratio was 4.1x as of March 31, 2020, compared with 4.0x as of March 31, 2019.

Second Quarter Acquisitions

During the second quarter, BrightView acquired Signature Coast Holdings, LLC, Summit Landscape Group, LLC and 4 Seasons Landscape Group, LLC. These acquisitions are consistent with BrightView’s long-term M&A strategy and further strengthens its presence in critical and growing markets:

• Signature Coast’s operations span nine strategic locations in both California (Concord, Davis, Marin, Napa, Rocklin, Sacramento and Santa Rosa) and Nevada (Carson City and Reno). Signature provides landscape maintenance, irrigation, enhancement, and arbor care.
• Established in 2011, Summit serves the Charlotte, Charleston and Hilton Head markets in the Carolinas, as well as clients in Nashville, Tennessee. The Summit team offers a full suite of landscaping services including turf management, agronomics, tree and plant care, landscape design and installation, storm water control and inspection, and soil stabilization.
• 4 Seasons provides services across the Atlanta metropolitan market in landscape maintenance, hardscapes, irrigation, enhancement, arbor care and other facility support services to the commercial, multi-family, hospitality, municipal and HOA market segments.

COVID-19 Update

• Throughout virtually the entire country, landscape maintenance is recognized as an essential service as defined by the Department of Homeland Security.
• All branches operational; isolated limitations on the scope of services we can provide.
• Executing downturn playbook and implementing prudent actions to preserve cash.
• Temporarily deferring discretionary merit increases for all employees and implemented a hiring freeze.
• Limiting all discretionary spending and capital expenditures.
• Specific Health and Safety actions include:
  • Proactively communicating critical information from CDC to all 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 all state and local mandates and guidelines.
  • Tracking potential cases and exposure, assigning case workers, and launched paid sick leave.

Conference Call Information

A conference call to discuss the second quarter fiscal 2020 financial results is scheduled for May 7, 2020, at 10 a.m. EDT. The dial-in for the conference call is (833) 968-2326 and the international dial-in is (778) 560-2844. The conference ID is 7999761. A live audio webcast of the conference call will be available on the Company’s investor website https://investor.brightview.com, where the presentation materials will be posted prior to the call.

A replay of the call will be available from 1 p.m. EDT on May 7, 2020 to 11:59 p.m. EDT on May 14, 2020. To access the recording, dial (800) 585-8367 or (416) 621-4642. The conference ID is 7999761.

As the largest provider of commercial landscaping services in the United States, BrightView is monitoring the COVID-19 outbreak closely. During this difficult time, BrightView remains committed to the health and safety of not just our nearly 22,000 team members, but of our many valued customers and the hundreds of communities across America in which we operate. In response to these events, we have made significant changes to operations across all of our service lines, following and often exceeding the recommendations of public health authorities. We are committed to helping keep essential services open and best caring for our customers’ living assets.

 

We thank you for your interest in BrightView and ask that you please take care of yourselves and one another.

 

Your friends at BrightView Landscapes

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, 2019.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200206005104/en/

(Graphic: Business Wire)

First Quarter Fiscal 2020 Highlights

• Total Revenues for the quarter were $570.7 million, an 8.5% increase versus the prior year, with 6.7% higher Maintenance Services Segment revenues and 13.7% higher Development Services Segment revenues;
• Net Loss of $12.6 million, or $(0.12) per share, and a net loss margin of 2.2%, compared to Net Loss of $8.8 million, or $(0.09) per share, and a net loss margin of 1.7%, in the prior year;
• Adjusted EBITDA of $51.7 million and Adjusted EBITDA margin of 9.1%, compared to Adjusted EBITDA of $50.1 million and Adjusted EBITDA margin of 9.5% in the prior year;
• Adjusted Net Income of $10.6 million, or $0.10 per share, compared to Adjusted Net Income of $10.4 million, or $0.10 per share, in the prior year.

“We are pleased with our start to fiscal 2020. We saw another quarter of solid revenue growth in both operating segments and overall Adjusted EBITDA growth for the Enterprise. Our net new sales, which will benefit the upcoming ‘green’ maintenance season, are the highest ever generated; our development project bookings are ahead of last year’s pace and our strong-on-strong acquisition strategy already has to date added four companies with enough expected revenue impact to reach our full year fiscal 2020 targets,” said Andrew Masterman, BrightView President and Chief Executive Officer. “We also continue to make our planned investments in people and technology to support our sales and account manager teams, enhancing our customer relationships and driving both revenue growth and cash generation, that will drive continued value creation for our stockholders.”

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 2020 Results – Total BrightView

For the first quarter of fiscal 2020, total revenue increased 8.5% to $570.7 million due to increases in both Maintenance Services Segment and Development Services Segment revenues. Net Loss was $12.6 million compared to $8.8 million in the 2018 period, attributable to lower income from operations, partially offset by an increase in other income and an increase in the income tax benefit. Total Adjusted EBITDA increased 3.2% driven by an increase in Development Services Segment Adjusted EBITDA, coupled with lower corporate expenses, partially offset by a decrease in Maintenance Services Segment Adjusted EBITDA, as discussed further below.

Fiscal 2020 Results – Segments

For the first quarter fiscal 2020, revenue in the Maintenance Services Segment increased 6.7% to $418.9 million. Acquisitions added 5.9% and snow removal services added 1.5% but these increases were partially offset by a 0.7% negative revenue contribution from commercial landscaping which included lower revenue due to the wind down of Managed Exits and the timing of new contracts.

Adjusted EBITDA for the Maintenance Services Segment in the quarter decreased 2.1% to $47.7 million, with the Adjusted EBITDA Margin decreasing 100 basis points versus the prior year. The decrease in Adjusted EBITDA Margin was principally due to an increase in employee and technology related costs, primarily driven by the timing of expenses related to incentive compensation and the increased investment in our sales and operational leadership teams.

For the first quarter fiscal 2020, revenue in the Development Services Segment increased 13.7% to $152.8 million. Project revenue, derived from the segment’s revenue growth in key markets and strong project pipeline, drove the result.

Adjusted EBITDA for the Development Services Segment increased 12.4% to $19.1 million in the quarter, positively affected by the increase in net revenue described above. Segment Adjusted EBITDA margin was relatively flat compared with the prior year period.

Net cash provided by operating activities for the quarter ended December 31, 2019 was $7.3 million, compared to $6.4 million for the prior year. This increase was primarily due to an increase in cash provided by unbilled and deferred revenue coupled with a decrease in cash used by accounts payable and other operating liabilities, mostly offset by a decrease in cash provided by accounts receivable and an increase in cash used by other operating assets.

Free Cash Flow for the quarter ended December 31, 2019 was $(6.2) million, an increase of $2.9 million versus the prior year. The increase in Free Cash Flow was driven principally by a decline in capital expenditures of $2.8 million.

For the quarter ended December 31, 2019, capital expenditures were $14.5 million, compared with $17.3 million in the prior year. The Company also generated proceeds from the sale of property and equipment of $1.0 million and $1.8 million in the first quarter of fiscal 2020 and 2019, respectively. Net of the proceeds from the sale of property and equipment in the quarter, net capital expenditures represented 2.4% and 2.9% of revenue in the first quarter fiscal 2020 and 2019, respectively.

As of December 31, 2019, the Company’s Total Net Financial Debt was $1,155.1 million, a decrease of $6.3 million compared to $1,161.4 million as of December 31, 2018. The Company’s Total Net Financial Debt to Adjusted EBITDA ratio was 3.8x as of December 31, 2019, compared with 4.1x as of December 31, 2018.

Recent Developments

Acquisition of Signature Coast Holdings, LLC

In January, BrightView acquired Signature Coast Holdings, LLC. (“Signature Coast”) a commercial landscaping company headquartered in Napa, CA. Terms of the transaction were not disclosed.

Signature Coast’s operations span nine strategic locations in both California (Concord, Davis, Marin, Napa, Rocklin, Sacramento and Santa Rosa) and Nevada (Carson City and Reno). The Company provides landscape maintenance, irrigation, enhancement, installation, arbor care, pest control and snow removal services under its three major brands: Coast Landscape Management, Signature Landscapes and C&R Landscape. The Company’s 600 trained and qualified landscape professionals serve clients across the corporate, HOA, multi-family and municipal segments.

Acquisition of Summit Landscape Group, LLC

In January, BrightView acquired Summit Landscape Group, LLC (“Summit”), a commercial landscaping company headquartered in Rock Hill, SC. Terms of the transaction were not disclosed.

Established in 2011, Summit has built a strong reputation among its clients for providing each of them with a comprehensive landscape solution and delivering outstanding workmanship and service beyond expectations. By taking a proactive, practical and responsive approach to customer service, Summit has set itself apart in each of the markets it serves: Charlotte (NC), Charleston and Hilton Head (SC) and Nashville (TN). The team of approximately 180 trained and skilled landscape professionals holds certifications to offer a full suite of landscaping services including, turf management, agronomics, tree and plant care, landscape design and install, irrigation install and repair, outdoor living (hardscapes), landscape lighting, erosion control, storm water control and inspection, soil stabilization, grading and snow and ice removal.

Conference Call Information

A conference call to discuss the first quarter fiscal 2020 financial results is scheduled for February 6, 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 8507717. 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 telephone replay will be available shortly after the broadcast through February 13, 2020, by dialing (800) 585-8367 from the U.S., and entering conference passcode 8507717. A replay of the audio webcast also will be archived on the Company’s investor website.

BrightView Holdings, Inc. (NYSE: BV), the leading commercial landscaping services company in the United States, today announced that Amanda Orders, Senior Vice President of Human Resources for the company’s

Maintenance Services segment, has been promoted to Executive Vice President and Chief Human Resources Officer, effective today.

Orders will serve on the company’s Executive Leadership Team and report directly to President and Chief Executive Officer Andrew Masterman.

“Mandy is an exceptional human resources executive, leader, and tireless advocate for our nearly 21,500 team members across the nation,” Masterman said. “She has made significant contributions in every dimension of human resources for this company and will be a great addition to senior leadership.”

Orders will be responsible for the overarching BrightView People Strategy, which includes talent acquisition, compensation, benefits management, career development, performance management, succession planning, equity administration, retention, training, and leadership and organizational development across all BrightView service lines.

Orders started with the company in 2012 as Human Resources Vice President.  She was promoted to Senior Vice President of Human Resources for Maintenance Services in 2016. Orders was a key contributor to the Brickman/ValleyCrest merger that created BrightView in 2014, and has played a central role in GROW, an internal advocacy program for the women of BrightView.

Prior to joining BrightView, Orders held leadership positions in Human Resources at Alliance Data, a leading provider of co-branded affinity credit cards, and the ScottsMiracle-Gro Company, the world’s leading marketer of consumer lawn and garden products. 

Orders, a graduate of the Ohio State University’s Fisher College of Business, will work out of the company’s headquarters campus in Blue Bell, Pa.

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, 2019.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20191121005210/en/

(Graphic: Business Wire)

Fourth Quarter Fiscal 2019 Highlights

• Total Revenues for the quarter were $624.8 million, a 7.4% increase versus the prior year, with 5.1% higher Maintenance Services Segment revenues and 14.0% higher Development Services Segment revenues;
• Maintenance Services Segment revenue of $455.4 million benefitted from growth in underlying commercial landscaping revenue and acquisitions;
• Development Services Segment revenue of $170.7 million was the highest quarterly result in the segment’s history;
• Net Income of $25.1 million, or $0.24 per share, and a net income margin of 4.0%, compared to Net Loss of ($10.9 million), or ($0.11) per share, and a net loss margin of (1.9%), in the prior year;
• Adjusted EBITDA of $91.9 million, or 9.1% growth over the prior year, with a margin of 14.7%;
• Adjusted Net Income of $45.0 million, or $0.44 per share, up from $35.8 million, or $0.35 per share, in the prior year.

Full Year Fiscal 2019 Highlights

• Total Revenues for the fiscal year were $2,404.6 million, a 2.2% increase versus the prior year, with 2.2% higher Maintenance Services Segment revenues and 2.1% higher Development Services Segment revenues;
• Net Income of $44.4 million, or $0.43 per share, and a net income margin of 1.8%, compared to Net Loss of ($15.1 million), or ($0.18) per share, and a net loss margin of (0.6%), in the prior year;
• Adjusted EBITDA of $305.1 million, or 1.7% above the prior year, with a margin of 12.7%;
• Adjusted Net Income of $118.0 million, or $1.15 per share, up from $90.0 million, or $1.08 per share, in the prior year;
• Net Cash Provided by Operating Activities was $169.7 million and Free Cash Flow was $86.6 million;
• Completed six acquisitions with an estimated $83.1 million of aggregate annualized revenue.

“Our strategic initiatives, designed to establish a base for sustainable, long-term growth, began delivering results in fiscal 2019. Underlying commercial landscaping revenue grew in the fourth quarter and full year, despite facing significant weather-related challenges across many key markets. And we continued executing our Strong-on-Strong M&A strategy while reducing our Net Debt. Nonetheless, we fell short of some of our full year targets and are working hard to deliver on the long-term potential of our business, beginning with fiscal 2020,” said Andrew Masterman, BrightView President and Chief Executive Officer. “We will build on our 2019 successes, including (a) the sequential revenue improvement in underlying commercial landscaping, (b) the excellent results that our Development Segment generated in the second half of 2019 with strong bookings going into 2020, and (c) the reliable revenue growth that our M&A pipeline, once again, delivered. We will also maintain our targeted plans to invest in technology to support our sales and account manager teams, enhancing our customer relationships and driving both revenue growth and cash generation, which we believe are the cornerstones of stockholder value.”

Unless indicated otherwise, the information in this release has been adjusted to give effect to a 2.33839-for-one reverse stock split of the Company’s common stock effected on June 8, 2018. 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 2019 Results – Total BrightView

For the fourth quarter of fiscal 2019, total revenue increased 7.4% to $624.8 million due to increases in both Maintenance Services Segment and Development Services Segment revenues. Total Adjusted EBITDA increased 9.1% driven by an increase in the Development Services Segment Adjusted EBITDA as well as lower corporate expenses and partially offset by a decrease in Maintenance Services Segment Adjusted EBITDA, as discussed further below.

For the fiscal year ended September 30, 2019, total revenue increased 2.2% to $2,404.6 million due to an increase in both Maintenance Services Segment and Development Services Segment revenues. Total Adjusted EBITDA was $305.1 million, up 1.7% versus the prior year, driven by an increase in Development Services Segment Adjusted EBITDA as well as lower corporate expenses and partially offset by a decrease in Maintenance Services Segment Adjusted EBITDA.

Fiscal 2019 Results – Segments

For the fourth quarter fiscal 2019, revenue in the Maintenance Services Segment increased 5.1% to $455.4 million. Landscape Maintenance revenue also increased 5.1%. Landscape Maintenance acquisitions added 4.6% and commercial landscaping added 0.5% which included lower revenue due to Managed Exits as the Company strategically reduced a number of less profitable accounts established in previous years. Excluding Managed Exits, the Company’s underlying commercial landscaping revenue grew 1.9% versus the prior-year quarter driven by growth in contract maintenance, ancillary services and national accounts.

Adjusted EBITDA for the Maintenance Services Segment in the quarter decreased 3.0% to $77.2 million, with the Adjusted EBITDA Margin decreasing 140 basis points versus the prior year quarter. The decrease in segment profitability was due to lower margins on ancillary services and operational disruptions in the Florida and Southeast regions related to Hurricane Dorian, coupled with an increase in selling, general and administrative expenses as a result of the absorption of acquired businesses, partially offset by the increase in revenue described above.

For the fiscal year ended September 30, 2019, revenue in the Maintenance Services Segment increased 2.2% to $1,813.4 million. Landscape Maintenance revenue increased 3.0%. Acquisitions added 5.2% but were offset by a 3.0% negative revenue contribution from commercial landscaping. Commercial landscaping revenue declined due to lower revenue related to the Company’s strategic Managed Exits initiative, a challenging revenue comparison with the prior-year’s hurricane clean-up services and lower revenue from snow removal services due to reduced year-over-year snowfall in key geographies. Excluding the negative impact of these episodic events, the Company’s underlying commercial landscaping revenue grew 0.6% for the full fiscal year.

Adjusted EBITDA for the Maintenance Services Segment for the fiscal year ended September 30, 2019 decreased 2.7% to $282.0 million, with the Adjusted EBITDA Margin decreasing 70 basis points versus the prior year period. The decrease in Segment Adjusted EBITDA Margin was due to the challenging comparison with prior year hurricane clean-up services, which typically contribute a higher gross margin compared with other landscape maintenance services, coupled with unfavorable weather conditions resulting in lower margins on ancillary services and snow removal services. The decrease was partially offset by more profitable contract maintenance revenue, the elimination of lower margin accounts through the Company’s strategic Managed Exits initiative and lower sales, general and administrative expenses as a percentage of revenue.

Revenues for the Development Services Segment increased 14.0% to $170.7 million for the fourth quarter fiscal 2019. This was the highest revenue for the segment since BrightView was formed in 2014. Project revenue, derived from the segment’s revenue growth in key markets, and strong project pipeline drove the record result.

Adjusted EBITDA for the Development Services Segment increased 14.1% to $26.7 million in the quarter, positively affected by the increase in net revenue derived from the segment’s revenue growth in key markets and strong project pipeline coupled with revenue from acquisitions. Segment Adjusted EBITDA Margin was flat compared with the prior year period.

Revenues for the Development Services Segment increased 2.1% to $595.4 million for the fiscal year ended September 30, 2019. The increase in Development Services revenues was driven by the commencement of work on new projects, which more than offset a challenging comparison with revenue from the completion of certain large projects in the prior fiscal year, coupled with incremental revenue of $6.1 million related to development projects from the Maintenance Services acquisitions.

Adjusted EBITDA for the Development Services Segment increased 3.8% to $81.7 million during the fiscal year ended September 30, 2019. The increase in segment Adjusted EBITDA was primarily due to the increase in net service revenues described above and a more profitable project mix. Segment Adjusted EBITDA Margin increased 20 basis points to 13.7% in the fiscal year ended September 30, 2019 from 13.5% in the 2018 period.

Net cash provided by operating activities for the fiscal year ended September 30, 2019 was $169.7 million, compared to $180.4 million for the prior year. The decrease was primarily due to an increase in accounts receivable due to the timing of collections, coupled with a decrease in unbilled and deferred revenue, partially offset by a decrease in prepaid income taxes and increases in accounts payable and accrued expenses.

Free Cash Flow for the fiscal year ended September 30, 2019 was $86.6 million, a decrease of $19.3 million versus prior year. The decrease in Free Cash Flow was due to the decrease in cash flows from operating activities of $10.7 million described above and an increase in capital expenditures of $3.5 million as well as a decrease in proceeds from sale of property and equipment of $5.2 million, each as described below.

For the fiscal year ended September 30, 2019, capital expenditures were $89.9 million, compared with $86.4 million last year. The prior year period included the purchase of legacy ValleyCrest facilities of $21.6. The Company also generated proceeds from the sale of property and equipment of $6.8 million and $12.0 million in fiscal 2019 and 2018, respectively. Net of the legacy asset purchase and the proceeds from the sale of property and equipment in each year, net capital expenditures represented 3.5% and 2.2% of revenue in fiscal 2019 and 2018, respectively.

As of September 30, 2019, the Company’s Total Net Financial Debt was $1,131.1 million, a decrease of $18.1 million compared to $1,149.2 million as of September 30, 2018. The Company’s Total Net Financial Debt to Adjusted EBITDA ratio was 3.7x as of September 30, 2019, compared with 3.8x as of September 30, 2018.

Recent Developments

Acquisition of Commercial Landscaping Company - Heaviland Enterprises, Inc.

In early November, BrightView acquired Heaviland Enterprises, Inc. (“Heaviland”), a top commercial landscape services provider in the greater San Diego, CA, market. Terms of the transaction were not disclosed.

Heaviland and its 150 skilled employees provide landscape maintenance, irrigation, enhancement and spray services. The company operates out of two primary facilities servicing a diverse portfolio of customers throughout San Diego County. Tom Heaviland, who founded the company with his late father Ron, will remain with BrightView along with senior leadership, to provide leadership continuity.

Acquisition of Commercial Landscaping Company – Clean Cut Lawns, LLC

In early November, BrightView acquired Clean Cut Lawns, LLC (“Clean Cut”), a leading commercial landscape services provider in Mesa, AZ. Terms of the transaction were not disclosed.

Clean Cut offers a full suite of commercial landscaping solutions, including grounds management, landscape enhancement, irrigation, arbor care and spray services. The company services its base of mostly HOA customers from one main facility and two strategically-located satellite sites. John Nation, principal, along with other senior managers, will remain with BrightView. By adding this experienced team of 110 trained and qualified field personnel, BrightView increases its strong presence in the greater Phoenix market.

2020 Fiscal Year Outlook

For the full year fiscal 2020, BrightView is providing the following guidance:

• Total Revenue of between $2,465 million and $2,525 million;
• Acquired Revenue of approximately $60 million over the course of the fiscal year;
• Adjusted EBITDA of between $312 million and $320 million;
• Net Capital Expenditures of 2.5% to 3.0% of revenue.

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 under the heading “Non-GAAP Financial Measures.” 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.

Conference Call Information

A conference call to discuss the fourth quarter fiscal 2019 financial results is scheduled for November 21, 2019, 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 4458518. 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 telephone replay will be available shortly after the broadcast through November 28, 2019, by dialing (800) 585-8367 from the U.S., and entering conference passcode 4458518. A replay of the audio webcast also will be archived on the Company’s investor website.

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 and nine months ended June 30, 2019.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190807005123/en/

(Graphic: Business Wire)

Third Quarter Fiscal 2019 Highlights

• Total Revenues for the quarter totaled $657.2 million, a 4.3% increase versus the prior year quarter, with 3.7% higher Maintenance Services Segment revenues and 5.7% higher Development Services Segment revenues;
• Net Income of $31.7 million, or $0.31 per share, and a net income margin of 4.8%, compared to Net Loss of $1.4 million, or ($0.02) per share, and a net loss margin of 0.2%, in the prior year quarter;
• Adjusted EBITDA of $101.9 million, or 4.2% growth over the prior year quarter, with an Adjusted EBITDA margin of 15.5%, representing the first time the Company delivered more than $100 million of Adjusted EBITDA in a quarter;
• Adjusted Net Income of $47.0 million, or $0.46 per share, up from Adjusted Net Income of $33.2 million, or $0.43 per share, in the prior year quarter.

Nine Months Fiscal 2019 Highlights

• Total Revenues for the nine months totaled $1,779.9 million, a 0.5% increase versus the prior year period, with 1.2% higher Maintenance Services Segment revenues and 2.1% lower Development Services Segment revenues;
• Net Income of $19.3 million, or $0.19 per share, and a net income margin of 1.1%, compared to Net Loss of $4.1 million, or ($0.05) per share, and a net loss margin of 0.2%, in the prior year period;
• Adjusted EBITDA of $213.1 million, or 1.3% below the prior year period, with an Adjusted EBITDA margin of 12.0%;
• Adjusted Net Income of $73.1 million, or $0.71 per share, up from Adjusted Net Income of $54.1 million, or $0.70 per share, in the prior year period.

“Today we are reporting the highest quarterly revenue and adjusted EBITDA results in BrightView’s history. Our Maintenance Services Segment increased its base contract revenue, demonstrating that we are pursuing the right strategy to build a strong foundation for sustainable, future organic growth. Our Development Services Segment capitalized on a robust book of business to deliver meaningful growth in both revenue and profitability, despite the challenging wet weather conditions faced by both segments throughout the quarter and across much of the country,” said Andrew Masterman, BrightView President and Chief Executive Officer. “Moving forward, we will continue to invest in generating profitable, long-term growth. Results in our existing business are starting to show the benefits of our reorganized sales team and the initiatives we’ve implemented to “digitize” the Company by leveraging technology. Finally, our M&A pipeline remains attractive as we continue driving growth through our strong-on-strong acquisition strategy.”

Unless indicated otherwise, the information in this release has been adjusted to give effect to a 2.33839-for-one reverse stock split of the Company’s common stock effected on June 8, 2018. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted 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 2019 Results – Total BrightView

For the third quarter fiscal 2019, total revenue increased 4.3% to $657.2 million due to increases in both the Maintenance Services Segment and Development Services Segment revenues. Total Adjusted EBITDA increased 4.2% driven by an increase in the Development Services Segment Adjusted EBITDA, and included relatively flat Maintenance Services Segment Adjusted EBITDA, as discussed further below, partially offset by higher corporate expenses.

For the nine months ended June 30, 2019, total revenue increased 0.5% to $1,779.9 million due to an increase in Maintenance Services Segment revenue, partially offset by a decline in Development Services Segment revenue. Total Adjusted EBITDA was $213.1 million, down 1.3% versus the prior year, driven by a decrease in Maintenance Services Segment together with relatively flat Development Services Segment Adjusted EBITDA, partially offset by lower corporate expenses.

Fiscal 2019 Results – Segments

For the third quarter fiscal 2019, revenue in the Maintenance Services Segment increased 3.7% to $492.1 million. Landscape Maintenance revenue increased 4.4%. Acquisitions added 5.3% but were partially offset by a 0.9% negative revenue contribution from commercial landscaping, including lower revenue due to Managed Exits as the Company strategically reduced a number of less profitable accounts established in previous years. Excluding Managed Exits, the Company’s commercial landscaping revenue grew 1.0% versus the prior-year quarter with contract growth more than offsetting softness in ancillary services revenue related to weather. Snow removal revenue, which included a small contribution from acquired companies, decreased 36.6% versus the unusually high level of snowfall in the prior-year quarter.

Adjusted EBITDA for the Maintenance Services Segment in the quarter remained relatively flat at $91.1 million, with the Adjusted EBITDA margin decreasing 70 basis points versus the prior year quarter. The decrease in segment profitability was due to unfavorable weather conditions resulting in lower margins on ancillary services and decreased efficiencies in core commercial landscaping services, coupled with an increase in selling, general and administrative expenses as a result of the absorption of acquired businesses, partially offset by the increase in revenue described above.

For the nine months ended June 30, 2019, revenue in the Maintenance Services Segment increased 1.2% to $1,358.0 million. Landscape Maintenance revenue increased 2.2%. Acquisitions added 6.4% but were mostly offset by a 4.2% negative revenue contribution from commercial landscaping, including a difficult comparison with the revenue related to Hurricane Irma and Maria clean-up, and lower revenue due to Managed Exits as the Company strategically reduced the number of less profitable accounts established in previous years. Snow removal revenue decreased 2.9% due to lower year-over-year snowfall in key geographies, especially during the first and third quarters of fiscal 2019.

Adjusted EBITDA for the Maintenance Services Segment for the nine months ended June 30, 2019 decreased 2.6% to $204.8 million, with the Adjusted EBITDA margin decreasing 60 basis points versus the prior year period. The decline in segment profitability was mainly a result of the comparison with higher-margin hurricane clean-up activity in the first quarter of fiscal 2018 and unfavorable weather conditions resulting in lower margins on snow removal services during the first quarter compared to the prior year quarter as well as on both ancillary and core commercial landscaping services during the third quarter compared to the prior year quarter.

Revenues for the Development Services Segment increased 5.7% to $166.3 million for the third quarter fiscal 2019. Project revenue derived from the segment’s strong project pipeline coupled with revenue from acquisitions more than offset a challenging comparison with the timing of work performed on certain large projects during the prior year period.

Adjusted EBITDA for the Development Services Segment increased 22.8% to $27.0 million in the quarter, positively affected by the increase in net revenue described above, as well as a decrease in cost of services provided as the result of lower material costs as a percentage of revenue.

Revenues for the Development Services Segment decreased 2.1% to $424.7 million for the nine months ended June 30, 2019. Project revenue derived from acquisitions partially offset a challenging comparison with revenues generated from work performed on certain large projects in the prior year period.

Adjusted EBITDA for the Development Services Segment decreased 0.5% to $55.0 million during the nine months ended June 30, 2019, negatively affected by the decrease in net revenue described above, as well as an increase in selling, general and administrative expense. These changes were substantially offset by a decrease in cost of services provided as the result of lower material costs and decreased use of subcontractors.

Net cash provided by operating activities for the nine months ended June 30, 2019 was $109.2 million, compared to $123.7 million for the prior year. The decrease was primarily due to an increase in accounts receivable due to timing of collections coupled with a decrease in deferred revenue, partially offset by a decrease in prepaid income taxes. Adjusted Free Cash Flow for the nine months ended June 30, 2019 was $38.8 million, a decrease in cash generation of $38.7 million versus the prior year. The decrease is reflective of the decrease in net cash provided by operating activities of $14.5 million as well as an increase in capital expenditures of $27.1 million (exclusive of the fiscal 2018 purchase of legacy ValleyCrest facilities of $21.6 million).

For the nine months ended June 30, 2019, capital expenditures were $77.2 million, compared with $71.7 million last year. The prior year period included the aforementioned purchase of legacy ValleyCrest facilities. The Company also generated proceeds from the sale of property and equipment of $6.8 million and $3.9 million in the first nine months of fiscal 2019 and 2018, respectively. Net of the legacy asset purchase and the proceeds from the sale of property and equipment in each year, net capital expenditures represented 4.0% and 2.6% of revenue in the first nine months of fiscal 2019 and 2018, respectively.

As of June 30, 2019, the Company’s Total Net Financial Debt was $1.171 billion, a decrease of $3.5 million compared to $1.174 billion as of March 31, 2019. The Company’s Total Net Financial Debt to Adjusted EBITDA ratio was 3.9x as of June 30, 2019, compared with 4.0x as of March 31, 2019.

Recent Developments

Acquisition of Commercial Landscaping Companies from FirstService Residential

On May 28, 2019, BrightView announced the acquisition of Luke’s Landscaping, Inc. (“Luke’s”) and Desert Classic Landscaping (“Desert Classic”), both previously owned and operated by FirstService Residential, a subsidiary of FirstService Corporation (TSX: FSV; NASDAQ: FSV).

Both Luke’s and Desert Classic are leading, single-source, year-round landscape service providers, offering a full suite of commercial landscaping solutions, including grounds management, landscape enhancement, irrigation, spray and arbor services. Luke’s was founded more than 40 years ago and currently operates two branches in South Florida with nearly 250 employees, serving customers between Coral Springs and Miami. Desert Classic was established in 2002 and currently operates two branches with more than 250 employees serving customers across the entire valley area of Phoenix, Ariz.

Conference Call Information

A conference call to discuss the third quarter fiscal 2019 financial results is scheduled for August 7, 2019, at 10 a.m. Eastern Daylight Time. 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 7495636. 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 telephone replay will be available shortly after the broadcast through August 14, 2019, by dialing 800-585-8367 from the U.S., and entering conference passcode 7495636. A replay of the audio webcast also will be archived on the Company’s investor website.

BrightView Holdings, Inc. (NYSE: BV) (“the Company” or “BrightView”), the leading commercial landscaping services company in the United States, today announced the acquisition of Luke’s Landscaping, Inc. (“Luke’s”), and Desert Classic Landscaping (“Desert Classic”), both previously owned and operated by FirstService Residential, a subsidiary of FirstService Corporation (TSX: FSV; NASDAQ: FSV). Terms of the transaction were not disclosed.

Both Luke’s and Desert Classic are leading, single-source, year-round landscape service providers, offering a full suite of commercial landscaping solutions, including grounds management, landscape enhancement, irrigation, spray, and arbor services. Luke’s was founded more than 40 years ago and currently operates two branches in South Florida with nearly 250 employees, serving customers between Coral Springs and Miami. Desert Classic was established in 2002 and currently operates two branches with more than 250 employees serving customers across the entire valley area of Phoenix, Ariz.

“We are pleased to be strengthening our presence in two important evergreen markets: South Florida and Phoenix. I’d like to welcome the nearly 500 talented employees, and the customers they serve across both markets, to the BrightView family,” said Andrew Masterman, BrightView President and Chief Executive Officer. “Halfway through our third fiscal quarter, we are well-positioned to achieve our fiscal 2019 target for realized acquired revenue, as well as our baseline target ‘wrap-around’ from acquired revenue for fiscal 2020. We look forward to working with both teams to continue delivering the intense customer focus that our customers have come to expect from BrightView.”

About FirstService Corporation

FirstService Corporation is a North American leader in the property services sector, serving its customers through two industry-leading service platforms: FirstService Residential, North America’s largest manager of residential communities; and FirstService Brands, one of North America’s largest providers of essential property services delivered through individually branded franchise systems and company-owned operations.

FirstService generates approximately $2 billion in annual revenues and has more than 20,000 employees across North America. With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating value and superior returns for shareholders. The common shares of FirstService trade on NASDAQ and the Toronto Stock Exchange under the symbol “FSV.”

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, 2019.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190508005140/en/

(Graphic: Business Wire)

Second Quarter Fiscal 2019 Highlights

• Total Revenues for the quarter totaled $596.6 million, a 1.1% increase versus the prior year quarter, with 2.9% higher Maintenance Services Segment revenues and 5.4% lower Development Services Segment revenues;
• Net Loss of $3.6 million, or ($0.04) per share, and a net loss margin of 0.6%, compared to Net Loss of $22.1 million, or ($0.29) per share, and a net loss margin of 3.7%, in the prior year quarter;
• Adjusted EBITDA of $61.1 million, or 18.4% growth over the prior year quarter, with an Adjusted EBITDA margin of 10.2%, both of which were among the highest ever for the March quarter;
• Adjusted Net Income of $15.6 million, or $0.15 per share, compared to Adjusted Net Income of $7.6 million, or $0.10 per share, in the prior year quarter.

Six Months Fiscal 2019 Highlights

• Total Revenues for the six months totaled $1,122.7 million, a 1.6% decline versus the prior year period, with nearly flat Maintenance Services Segment revenues and 6.5% lower Development Services Segment revenues;
• Net Loss of $12.4 million, or ($0.12) per share, and a net loss margin of 1.1%, compared to Net Loss of $2.7 million, or ($0.04) per share, and a net loss margin of 0.2%, in the prior year period;
• Adjusted EBITDA of $111.2 million, or 5.8% below the prior year period, with an Adjusted EBITDA margin of 9.9%;
• Adjusted Net Income of $26.0 million, or $0.25 per share, compared to Adjusted Net Income of $21.0 million, or $0.27 per share, in the prior year period.

“Strong Maintenance Segment revenue and profitability highlighted our second quarter results and drove growth at the consolidated level. In fact, we delivered one of our best ever March quarters, with notable performance in Adjusted EBITDA and Adjusted EBITDA margin. In addition to gains in our Maintenance business, the quarter included lower corporate expenses, and more normalized levels of snowfall,” said Andrew Masterman, BrightView President and Chief Executive Officer. “With the beginning of the ‘green’ season, we’re pleased with the trends in our Maintenance landscape revenue and have built a robust book of business for the remainder of the fiscal year in our Development Segment. We remain confident in our full-year outlook and are maintaining our guidance ranges for both total revenue and Adjusted EBITDA for the full-year fiscal 2019.”

Fiscal 2019 Results – Total BrightView

For the second quarter fiscal 2019, total revenue increased 1.1% to $596.6 million due to an increase in Maintenance Services Segment revenue, partially offset by a decline in Development Services Segment revenue. Total Adjusted EBITDA increased 18.4% driven by an increase in the Maintenance Services Segment coupled with a reduction of corporate expenses, partially offset by a decrease in the Development Services Segment Adjusted EBITDA, as discussed further below.

For the six months ended March 31, 2019, total revenue decreased 1.6% to $1,122.7 million due to declines in both the Maintenance Services Segment and Development Services Segment revenues. Total Adjusted EBITDA was $111.2 million, down 5.8% versus the prior year, driven by lower revenues, partially offset by a reduction of corporate expenses.

Fiscal 2019 Results – Segments

For the second quarter fiscal 2019, revenue in the Maintenance Services Segment increased 2.9% to $473.3 million. Landscape Maintenance Services revenue increased 4.4%. Acquisitions added 8.4% but were partially offset by a 4.0% negative revenue contribution from commercial landscaping, including lower revenue due to Managed Exits as the Company strategically reduced a number of less profitable accounts established in previous years. Including revenue contribution from acquisitions, snow removal services revenue increased 0.8%.

Adjusted EBITDA for the Maintenance Services Segment in the quarter increased 11.5% to $65.0 million, with the Adjusted EBITDA margin increasing 100 basis points versus the prior year quarter. The increase in segment profitability was mainly a result of the increase in revenue described above, coupled with a continued focus on efficiency initiatives to reduce overhead, personnel and related costs across the Company’s core functions.

For the six months ended March 31, 2019, revenue in the Maintenance Services Segment remained relatively flat at $865.8 million. Landscape Maintenance Services revenue increased 0.5%. Acquisitions added 7.2% but were mostly offset by a 6.7% negative revenue contribution from commercial landscaping, including a difficult comparison with the revenue related to Hurricane Irma and Maria clean-up, the final impact from the prior-year turnover of national accounts, and lower revenue due to Managed Exits as the Company strategically reduced the number of less profitable accounts established in previous years. Snow removal services revenue decreased 1.6% due to lower year-over-year snowfall in key geographies, especially during the first quarter of fiscal 2019.

Adjusted EBITDA for the Maintenance Services Segment for the six months ended March 31, 2019 decreased 4.4% to $113.7 million, with the Adjusted EBITDA margin decreasing 60 basis points versus the prior year period. The decline in segment profitability was mainly a result of higher-margin hurricane clean-up activity in the first quarter of fiscal 2018 and a decline in the contribution from snow removal services due to timing and below average snowfall during the first quarter compared to the prior year quarter.

Revenues for the Development Services Segment decreased 5.4% to $124.0 million for the second quarter fiscal 2019. Project revenue derived from acquisitions coupled with commencement of work on new projects contributed to offset a decrease driven by the timing of work performed on certain large projects during the prior year period.

Adjusted EBITDA for the Development Services Segment decreased 14.3% to $11.0 million in the quarter, negatively affected by the decrease in net revenue described above, as well as an increase in selling, general and administrative expense, which was the result of a cash collection in the second quarter of fiscal 2018 on a previously reserved receivable.

Revenues for the Development Services Segment decreased 6.5% to $258.4 million for the six months ended March 31, 2019. Project revenue derived from acquisitions coupled with commencement of work on new projects partially offset a challenging comparison with revenues generated from work performed on certain large projects in the prior year period.

Adjusted EBITDA for the Development Services Segment decreased 15.8% to $28.1 million during the six months ended March 31, 2019, negatively affected by the decrease in net revenue described above, as well as an increase in selling, general and administrative expense as described above.

Net cash provided by operating activities for the six months ended March 31, 2019 was $64.7 million, compared to $79.2 million for the prior year. The decrease was primarily due to an increase in accounts receivable due to timing of collections, partially offset by an increase in deferred revenue. Adjusted Free Cash Flow for the six months ended March 31, 2019 was $25.1 million, a decrease in cash generation of $33.1 million versus the prior year. The decrease is reflective of the decrease in net cash provided by operating activities as well as an increase in capital expenditures excluding the fiscal 2018 purchase of legacy ValleyCrest facilities of $21.6 million.

For the six months ended March 31, 2019, capital expenditures were $42.6 million, compared with $44.1 million last year. The prior year period included the aforementioned purchase of legacy ValleyCrest facilities. The Company also generated proceeds from the sale of property and equipment of $3.0 million and $1.5 million in the first half of fiscal 2019 and 2018, respectively. Net of the legacy asset purchase and the proceeds from the sale of property and equipment in each year, capital expenditures represented 3.5% and 1.8% of revenue in the first half of fiscal 2019 and 2018, respectively.

As of March 31, 2019, the Company’s Total Net Financial Debt was $1.174 billion, an increase of $24.9 million compared to $1.149 billion at the fiscal year end. The Company’s Total Net Financial Debt to Adjusted EBITDA ratio was 4.0x as of March 31, 2019, compared with 4.1x as of December 31, 2018.

Recent Developments

New Independent Board Members
On April 15, BrightView announced the appointment of Jane Okun Bomba, President of Saddle Ridge Consulting, and Mara Swan, Executive Vice President of Global Strategy and Talent at ManpowerGroup, as independent members of its Board of Directors. The appointments of Ms. Okun Bomba and Ms. Swan expands the size of the board to eight members, four of whom have been determined to be independent.

New Corporate Headquarters in Blue Bell, Pa.
During the week of April 29, 2019, the Company relocated its Corporate Headquarters to a new facility in Blue Bell, Pennsylvania. The new headquarters consolidates various corporate work groups from around the country. It is also the new site of the BrightView National Training Center, which will offer an expanded curriculum and train a larger number of its field personnel across a number of topics designed to drive incremental sales, improve customer retention and develop the Company’s future leaders, among other initiatives.

Conference Call Information

A conference call to discuss the second quarter fiscal 2019 financial results is scheduled for May 8, 2019, at 10 a.m. Eastern Daylight Time. 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 7885175. 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 telephone replay will be available shortly after the broadcast through May 15, 2019, by dialing 800-585-8367 from the U.S., and entering conference passcode 7885175. A replay of the audio webcast also will be archived on the Company’s investor website.

BrightView Holdings, Inc. (NYSE: BV) (“BrightView”), the nation’s leading commercial landscaping services company, today announced the acquisition of Benchmark Landscapes, LLC, a commercial landscaping company headquartered in Austin, Texas. Terms of the transaction were not disclosed.

Benchmark was founded in 2002 and today is a leading provider of commercial landscaping services in Texas, including landscape maintenance, design, installation, hardscapes, irrigation and tree care. Benchmark’s 240 employees cover a service area from Austin to San Antonio, inclusive of the San Marcos and New Braunfels areas, and Corpus Christi. The company operates six branches in four markets.

“With the acquisition of Benchmark, we expand our footprint in one of the country’s fastest-growing markets and bring passionate and skilled team members into the BrightView family,” said BrightView President and Chief Executive Officer Andrew Masterman. “This transaction further strengthens our position in Texas and supports our ‘strong-on-strong’ acquisition strategy.”

Benchmark founder and owner Casey Vickrey agreed that Benchmark represents a good fit for BrightView’s expanding portfolio. “I am proud of the business and relationships our team at Benchmark has built. We are excited to join the BrightView team and continue to grow the business, strengthen relationships and make new ones, all while taking care of the team that has been instrumental to making us who we are,” he said.

K&L Gates LLP served as legal advisor to BrightView; Shepherd Law LLC served as legal advisor to Benchmark.