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.

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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.

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, 2018.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190207005088/en/

(Graphic: Business Wire)

First Quarter Fiscal 2019 Highlights

• Total Revenues for the quarter totaled $526.0 million, a 4.6% decline versus the prior year quarter, with 3.5% lower Maintenance Services Segment revenues and 7.5% lower Development Services Segment revenues;
• Net Loss of $8.8 million, or ($0.09) per share or net loss margin of 1.7%, compared to Net Income of $19.3 million, or $0.25 per share or net income margin of 3.5%, in the prior year quarter;
• Adjusted EBITDA of $50.1 million, or 24.5% below the prior year quarter, with an Adjusted EBITDA margin of 9.5%;
• Adjusted Net Income of $10.4 million, or $0.10 per share, compared to Adjusted Net Income of $13.4 million, or $0.17 per share, in the prior year quarter.

“Our financial results reflect the challenging prior-year hurricane comparisons, our strategic Managed Exit initiative and other operating conditions that we highlighted in our guidance on our November 2018 earnings conference call, as well as a slow start to the season for our snow removal services. Since we planned for these seasonal and episodic factors, we are not changing our outlook for full fiscal 2019. Our net new sales, which will benefit the upcoming ‘green’ maintenance season, are the highest they have been in three years; our development project bookings are ahead of last year’s pace and our strong-on-strong acquisition strategy already has added three companies with enough expected revenue impact to reach our full year fiscal 2019 target of $75 million,” said Andrew Masterman, BrightView President and Chief Executive Officer. “As we move through the year we will build on our best-in-class operating foundation by executing against our key growth drivers of maximizing existing customer relationships, adding new customers to our portfolio, and expanding our national footprint.”

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 first quarter fiscal 2019, total revenue decreased 4.6% to $526.0 million due to a decline in the Maintenance Services Segment and Development Services Segment revenue. Total Adjusted EBITDA declined 24.5% driven by decreases in the Maintenance Services Segment, due to hurricane and snow removal comparisons, and the Development Services Segment Adjusted EBITDA, due mostly to comparisons with large project work in the prior year, as discussed further below.

Fiscal 2019 Results – Segments

For the first quarter fiscal 2019, revenue in the Maintenance Services Segment decreased 3.5% to $392.5 million. Landscape Maintenance Services revenue decreased 2.4%. Acquisitions added 6.4% but were partially offset by an 8.9% negative revenue contribution from commercial landscaping. Within this result, was a difficult comparison with the revenue related to Hurricane Irma and Maria clean-up, the final quarterly 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 10.5% due to lower year-over-year snowfall in key geographies.

Adjusted EBITDA for the Maintenance Services Segment in the quarter decreased 19.6% to $48.7 million, with the Adjusted EBITDA margin decreasing 250 basis points versus the prior year quarter. 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 quarter compared to the prior year quarter.

Revenues for the Development Services Segment decreased 7.5% to $134.4 million for the first quarter fiscal 2019. Project revenue derived from Maintenance Services acquisitions contributed to offset a comparison against the prior year period due to timing of work performed on certain large projects.

Adjusted EBITDA for the Development Services Segment decreased 16.8% to $17.0 million in the quarter, negatively affected by the decrease in net revenue described above, coupled with an increase in costs related to timing of work performed.

Net cash provided by operating activities for the quarter ended December 31, 2018 was $6.4 million, compared to $82.5 million for the prior year. Adjusted Free Cash Flow for the quarter ended December 31, 2018 was cash used of $9.1 million, a decrease in cash generation of $84.1 million over the prior year. The decreases are reflective of lower working capital in the quarter primarily driven by timing of payments of accounts payables and other liabilities.

For the quarter ended December 31, 2018, capital expenditures were $17.3 million, compared with $29.8 million last year, driven by the purchase of legacy ValleyCrest facilities for $21.6 million in the prior year period. The Company also generated proceeds from the sale of property and equipment of $1.8 million and $0.7 million in the first quarters 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 3.0% and 1.4% of revenue in the first quarters of fiscal 2019 and 2018, respectively.

As of December 31, 2018, the Company’s Total Net Financial Debt was $1.161 billion, an increase of $12.2 million compared to $1.149 billion at the prior fiscal year end. Combined with lower Adjusted EBITDA generation for the quarter, the change in the Company’s net debt led to a Total Net Financial Debt to Adjusted EBITDA ratio of 4.1x as of December 31, 2018.

Recent Developments

Acquisition of Emerald Landscape Company, Inc.

On January 10, BrightView announced that it had acquired Emerald Landscape Company, Inc. (“Emerald”), a preeminent commercial landscaping company located in California’s Bay Area. Terms of the transaction were not disclosed.

Emerald specializes in commercial landscape maintenance, enhancement, tree care, turf management and irrigation services, employing more than 200 highly skilled team members. It operates branches in the key Bay Area markets of Livermore, Hayward, Concord, San Jose, Manteca, and Tracy.

Acquisition of Benchmark Landscapes

At the beginning of February, BrightView acquired Benchmark Landscapes, LLC (“Benchmark”), a leading commercial landscape service company in Central Texas. Terms of the transaction were not disclosed.

Benchmark offers a full suite of commercial landscaping solutions, including grounds management, landscape enhancement and arbor services. With over 200 employees, the company covers a service area from Austin to San Antonio, inclusive of the San Marcos and New Braunfels areas as well as Corpus Christi.

Conference Call Information

A conference call to discuss the first quarter fiscal 2019 financial results is scheduled for February 7, 2019, at 10 a.m. Eastern Standard 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 7383949. 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 14, 2019, by dialing 800-585-8367 from the U.S., and entering conference passcode 7383949. 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 fourth quarter and full fiscal year ended September 30, 2018.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181127005818/en/

(Graphic: Business Wire)

Fourth Quarter Fiscal 2018 Highlights

• Total revenues for the quarter increased 2.6% versus the prior year quarter, totaling $581.8 million, with 3.5% higher Maintenance Services Segment revenues and flat Development Services Segment revenues;
• Net loss of $10.9 million, or ($0.11) per share, compared to net income of $0.4 million in the prior year quarter;
• Adjusted EBITDA increased 5.6% to $84.2 million, with a 40 bps Adjusted EBITDA margin improvement to 14.5%;
• Adjusted Net Income increased 48.2% to $35.8 million, or $0.35 per share;
• Extended and amended the Company’s long-term Credit Facilities.

Full Year Fiscal 2018 Highlights

• Total revenues in 2018 increased 5.7% versus the prior year, totaling a record $2,353.6 million, with 7.4% higher Maintenance Services Segment and 1.1% higher Development Services Segment revenues;
• Net loss of $15.1 million, or ($0.18) per share, compared to net loss of $37.4 million in 2017;
• Adjusted EBITDA increased 12.6% to $300.1 million, with an 80 bps Adjusted EBITDA margin improvement to 12.8%;
• Adjusted Net Income increased 54.8% to $90.0 million, or $1.08 per share;
• Net Cash Provided by Operating Activities increased by $56.2 million to $180.4 million and Adjusted Free Cash Flow increased by $57.2 million to $127.6 million;
• Completed five acquisitions with an estimated $117.6 million of aggregate annualized revenue, for aggregate consideration of $104.4 million, net of cash.

“I am very pleased with the progress we made last year to support sustainable topline growth, capture efficiencies in our cost structure and generate substantial adjusted free cash flow. We delivered the highest revenue and profitability in our history, meaningfully reduced our balance sheet leverage, and successfully completed our IPO. Moving forward now as a public company, we will remain focused on growing our existing customer relationships, continuing our 'strong on strong’ acquisition strategy, and driving further cash flow generation,” said Andrew Masterman, BrightView Chief Executive Officer. “As we begin our 2019 fiscal year, industry trends remain favorable, our acquisition pipeline is strong, and I am confident that we have the right strategy in place to create significant stockholder value as we continue consolidating our position as the Nation’s Landscaper.”

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 2018 Results – Total BrightView

For the fourth quarter fiscal 2018, total revenue increased 2.6% to $581.8 million due to growth in the Maintenance Services Segment and flat Development Services Segment revenue. Total Adjusted EBITDA grew 5.6% driven by higher revenues, increased profitability in both segments and efficiencies captured in SG&A.

For fiscal 2018, total revenue increased 5.7% to $2,353.6 million supported by growth in both the Maintenance Services Segment and Development Services Segment revenues. Total Adjusted EBITDA was $300.1 million, up 12.6% versus the prior year, driven by higher revenues, improved profitability in the Maintenance Services Segment and efficiencies captured in SG&A.

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 full fiscal year ended September 30, 2018.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181127005818/en/

(Graphic: Business Wire)

Fourth Quarter Fiscal 2018 Highlights

• Total revenues for the quarter increased 2.6% versus the prior year quarter, totaling $581.8 million, with 3.5% higher Maintenance Services Segment revenues and flat Development Services Segment revenues;
• Net loss of $10.9 million, or ($0.11) per share, compared to net income of $0.4 million in the prior year quarter;
• Adjusted EBITDA increased 5.6% to $84.2 million, with a 40 bps Adjusted EBITDA margin improvement to 14.5%;
• Adjusted Net Income increased 48.2% to $35.8 million, or $0.35 per share;
• Extended and amended the Company’s long-term Credit Facilities.

Full Year Fiscal 2018 Highlights

• Total revenues in 2018 increased 5.7% versus the prior year, totaling a record $2,353.6 million, with 7.4% higher Maintenance Services Segment and 1.1% higher Development Services Segment revenues;
• Net loss of $15.1 million, or ($0.18) per share, compared to net loss of $37.4 million in 2017;
• Adjusted EBITDA increased 12.6% to $300.1 million, with an 80 bps Adjusted EBITDA margin improvement to 12.8%;
• Adjusted Net Income increased 54.8% to $90.0 million, or $1.08 per share;
• Net Cash Provided by Operating Activities increased by $56.2 million to $180.4 million and Adjusted Free Cash Flow increased by $57.2 million to $127.6 million;
• Completed five acquisitions with an estimated $117.6 million of aggregate annualized revenue, for aggregate consideration of $104.4 million, net of cash.

“I am very pleased with the progress we made last year to support sustainable topline growth, capture efficiencies in our cost structure and generate substantial adjusted free cash flow. We delivered the highest revenue and profitability in our history, meaningfully reduced our balance sheet leverage, and successfully completed our IPO. Moving forward now as a public company, we will remain focused on growing our existing customer relationships, continuing our 'strong on strong’ acquisition strategy, and driving further cash flow generation,” said Andrew Masterman, BrightView Chief Executive Officer. “As we begin our 2019 fiscal year, industry trends remain favorable, our acquisition pipeline is strong, and I am confident that we have the right strategy in place to create significant stockholder value as we continue consolidating our position as the Nation’s Landscaper.”

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 2018 Results – Total BrightView

For the fourth quarter fiscal 2018, total revenue increased 2.6% to $581.8 million due to growth in the Maintenance Services Segment and flat Development Services Segment revenue. Total Adjusted EBITDA grew 5.6% driven by higher revenues, increased profitability in both segments and efficiencies captured in SG&A.

For fiscal 2018, total revenue increased 5.7% to $2,353.6 million supported by growth in both the Maintenance Services Segment and Development Services Segment revenues. Total Adjusted EBITDA was $300.1 million, up 12.6% versus the prior year, driven by higher revenues, improved profitability in the Maintenance Services Segment and efficiencies captured in SG&A.

Fiscal 2018 Results – Segments

For the fourth quarter fiscal 2018, revenue in the Maintenance Services Segment rose 3.5% to $433.4 million. Landscape Maintenance Services revenue rose 3.7%, driving the segment’s revenue growth. Acquisitions added 7.7% but were partially offset by a 4.0% negative revenue contribution from commercial landscaping. Within this decline, underlying commercial landscaping contributed 1.5% to growth with offsetting impacts of 2.9%, from a difficult comparison with the revenue related to Hurricane Irma clean-up in the fourth quarter of 2017, and 2.6%, from Managed Exits as the Company strategically reduced the number of less profitable accounts established in previous years.

Adjusted EBITDA for the Maintenance Services Segment in the quarter increased 3.5% to $79.6 million, with the Adjusted EBITDA margin remaining flat versus the prior year quarter.

For full year fiscal 2018, revenue for the Maintenance Services Segment increased 7.4% to $1,774.8 million, with Landscape Maintenance Services revenue 4.4% higher and Snow Removal Services revenue, compared with a far-below-average prior year, up 30.8%. Acquired businesses added 6.6% to the growth of Landscape Maintenance Services revenue, while commercial landscaping reduced growth by 2.2%. The decline in commercial landscaping revenue was mostly due to the strategic Managed Exits initiative, which reduced revenue by 1.6%. The balance of the decline was largely due to an early-year loss in the Company’s national accounts portfolio. The timing of Hurricane Irma in September and October of 2017 caused it to generate similar revenue in consecutive quarters over two different fiscal years. As a result, the quarterly comparisons versus the prior year created a variance but the full-year comparison was muted.

Adjusted EBITDA for the Maintenance Services Segment in fiscal 2018 increased 12.3% to $289.8 million, with an Adjusted EBITDA margin expansion of 70 basis points to 16.3%.

Revenues for the Development Services Segment were relatively flat at $149.7 million for the fourth quarter fiscal 2018. New project revenue and project revenue derived from Maintenance Services acquisitions contributed to offset a comparison with the timing of work performed on certain large projects in the prior year period.

Adjusted EBITDA for the Development Services Segment increased 30% to $23.4 million in the quarter, benefitting from the substantial completion of certain large lower margin projects that impacted the prior year quarter.

Revenue in the Development Services Segment increased 1.1% to $583.3 million for fiscal 2018, driven by $7.2 million in project revenue derived from Maintenance Services acquisitions. Revenue from new projects in fiscal 2018 largely offset the revenue generated by certain large projects in the prior year.

Adjusted EBITDA in the Development Services Segment increased 1.7% to $78.7 million for fiscal 2018. Segment Adjusted EBITDA Margin was 13.5%, or relatively flat compared to the prior year.

¹Total Financial Debt equals total long term debt, less original issue discount, plus the present value of net minimum lease payments under capital lease obligations.

² Net Debt equals Total Financial Debt minus Total Cash & Equivalents

Net cash provided by operating activities for the twelve months ended September 30, 2018 was $180.4 million, compared to $124.2 million for the prior year. Adjusted Free Cash Flow for the year ended September 30, 2018 was $127.6 million, an increase in cash generation of $57.2 million over the prior year. The increases are reflective of higher operating cash flows and improvements in working capital management.

For fiscal 2018, capital expenditures were $86.4 million, compared with $60.9 million last year, driven by the purchase of legacy ValleyCrest facilities for $21.6 million in October 2017. The Company also generated proceeds from the sale of property and equipment of $12.0 million and $7.0 million in 2018 and 2017, respectively. Net of the legacy asset purchase in 2018 and the proceeds from the sale of property and equipment in each year, capital expenditures represented 2.2% and 2.4% of revenue in 2018 and 2017, respectively.

As of September 30, 2018, the Company’s Net Debt² was $1.15 billion, a reduction of $478 million compared to $1.63 billion at the prior year end. Combined with higher Adjusted EBITDA generation for the fiscal year, the change in the Company’s net debt led to a Net Debt to Adjusted EBITDA ratio of 3.8x as of September 30, 2018.

In connection with the Company’s term loan repayments during the fourth quarter of fiscal 2018, the Company incurred non-cash losses on debt extinguishment of $25.1 million in the period. These non-cash losses, which are included in the “Other (Expense) Income” line of the income statement, arose from the accelerated amortization of deferred financing fees and the original issue discount.

2019 Fiscal Year Outlook

For the full year fiscal 2019, BrightView is providing the following guidance:

• Total Revenue of between $2,400 million and $2,470 million;
• Adjusted EBITDA of between $310 million and $318 million;
• Managed Exits of $15 to $25 million in revenue, declining over the course of the fiscal year;
• Net Capital Expenditures of approximately 2.5% of revenue.

Although the first quarter of 2019 faces a comparison of $17.5 million in hurricane clean-up revenue in the prior-year first quarter (including $4.0 million from acquired businesses), underlying trends in the industry are expected to remain positive for the 2019 fiscal year, supporting topline growth in the Company’s existing footprint as well as a robust acquisition pipeline for the year. BrightView plans to continue its strategic approach to pricing, service enhancements, customer retention, new business development and “strong on strong” acquisitions. Finally, the Company will work to identify additional opportunities to leverage its SG&A and Corporate expenses in order to further expand operating margins.

The Company is not providing a quantitative reconciliation of our financial outlook for Adjusted EBITDA to net income (loss), its corresponding GAAP measure, because the GAAP measure that we exclude from our 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.

Recent Developments

California Wildfires

As of the date of this release, the devastating wildfires in both Northern and Southern California that began during the month of November 2018, have not caused material damage to either the Company’s office in Calabasas, CA, or its branch offices in the state. The Company is monitoring the situation but does not currently expect the wildfires to have a material impact on its employees, revenue stream or cost structure moving forward.

Daniel Schleiniger Appointed Vice President of Investor Relations

Daniel Schleiniger joined BrightView at the end of October 2018 as the new Vice President of Investor Relations, reporting to John Feenan, BrightView’s Chief Financial Officer. Dan’s most recent position, prior to joining BrightView, was VP of Corporate Communications and Investor Relations for Arcos Dorados (NYSE: ARCO). His career includes broad international experience across a number of finance functions including equity research, investor relations, financial planning and analysis as well as treasury and portfolio management. Dan holds a Bachelor of Science degree in chemistry from the University of Delaware and an MBA in Finance from the same institution. He will be based in BrightView’s Plymouth Meeting, PA headquarters.

Revised Fiscal Calendar

The Company revised its fiscal year end from December 31 to September 30 of each year, beginning with September 30, 2017. The period from January 1, 2017 through September 30, 2017 was recorded as a transition period. Year-over-year comparisons of annual financial results included in this press release and the attached financial tables compare results for BrightView’s full fiscal year 2018 (October 1, 2017 through September 30, 2018) to the Company’s twelve months ended September 30, 2017 (October 1, 2016 through September 30, 2017).

Conference Call Information

A conference call to discuss the fourth quarter and fiscal 2018 financial results is scheduled for November 28, 2018, at 10 a.m. Eastern Standard 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 5667795. 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 Dec 16, 2018, by dialing 800-585-8367 from the U.S., and entering conference passcode 5667795. A replay of the audio webcast also will be archived on the Company’s investor website.

For the fourth quarter fiscal 2018, revenue in the Maintenance Services Segment rose 3.5% to $433.4 million. Landscape Maintenance Services revenue rose 3.7%, driving the segment’s revenue growth. Acquisitions added 7.7% but were partially offset by a 4.0% negative revenue contribution from commercial landscaping. Within this decline, underlying commercial landscaping contributed 1.5% to growth with offsetting impacts of 2.9%, from a difficult comparison with the revenue related to Hurricane Irma clean-up in the fourth quarter of 2017, and 2.6%, from Managed Exits as the Company strategically reduced the number of less profitable accounts established in previous years.

Adjusted EBITDA for the Maintenance Services Segment in the quarter increased 3.5% to $79.6 million, with the Adjusted EBITDA margin remaining flat versus the prior year quarter.

For full year fiscal 2018, revenue for the Maintenance Services Segment increased 7.4% to $1,774.8 million, with Landscape Maintenance Services revenue 4.4% higher and Snow Removal Services revenue, compared with a far-below-average prior year, up 30.8%. Acquired businesses added 6.6% to the growth of Landscape Maintenance Services revenue, while commercial landscaping reduced growth by 2.2%. The decline in commercial landscaping revenue was mostly due to the strategic Managed Exits initiative, which reduced revenue by 1.6%. The balance of the decline was largely due to an early-year loss in the Company’s national accounts portfolio. The timing of Hurricane Irma in September and October of 2017 caused it to generate similar revenue in consecutive quarters over two different fiscal years. As a result, the quarterly comparisons versus the prior year created a variance but the full-year comparison was muted.

Adjusted EBITDA for the Maintenance Services Segment in fiscal 2018 increased 12.3% to $289.8 million, with an Adjusted EBITDA margin expansion of 70 basis points to 16.3%.

Revenues for the Development Services Segment were relatively flat at $149.7 million for the fourth quarter fiscal 2018. New project revenue and project revenue derived from Maintenance Services acquisitions contributed to offset a comparison with the timing of work performed on certain large projects in the prior year period.

Adjusted EBITDA for the Development Services Segment increased 30% to $23.4 million in the quarter, benefitting from the substantial completion of certain large lower margin projects that impacted the prior year quarter.

Revenue in the Development Services Segment increased 1.1% to $583.3 million for fiscal 2018, driven by $7.2 million in project revenue derived from Maintenance Services acquisitions. Revenue from new projects in fiscal 2018 largely offset the revenue generated by certain large projects in the prior year.

Adjusted EBITDA in the Development Services Segment increased 1.7% to $78.7 million for fiscal 2018. Segment Adjusted EBITDA Margin was 13.5%, or relatively flat compared to the prior year.

1Total Financial Debt equals total long term debt, less original issue discount, plus the present value of net minimum lease payments under capital lease obligations.

2 Net Debt equals Total Financial Debt minus Total Cash & Equivalents

Net cash provided by operating activities for the twelve months ended September 30, 2018 was $180.4 million, compared to $124.2 million for the prior year. Adjusted Free Cash Flow for the year ended September 30, 2018 was $127.6 million, an increase in cash generation of $57.2 million over the prior year. The increases are reflective of higher operating cash flows and improvements in working capital management.

For fiscal 2018, capital expenditures were $86.4 million, compared with $60.9 million last year, driven by the purchase of legacy ValleyCrest facilities for $21.6 million in October 2017. The Company also generated proceeds from the sale of property and equipment of $12.0 million and $7.0 million in 2018 and 2017, respectively. Net of the legacy asset purchase in 2018 and the proceeds from the sale of property and equipment in each year, capital expenditures represented 2.2% and 2.4% of revenue in 2018 and 2017, respectively.

As of September 30, 2018, the Company’s Net Debt2 was $1.15 billion, a reduction of $478 million compared to $1.63 billion at the prior year end. Combined with higher Adjusted EBITDA generation for the fiscal year, the change in the Company’s net debt led to a Net Debt to Adjusted EBITDA ratio of 3.8x as of September 30, 2018.

In connection with the Company’s term loan repayments during the fourth quarter of fiscal 2018, the Company incurred non-cash losses on debt extinguishment of $25.1 million in the period. These non-cash losses, which are included in the “Other (Expense) Income” line of the income statement, arose from the accelerated amortization of deferred financing fees and the original issue discount.

2019 Fiscal Year Outlook

For the full year fiscal 2019, BrightView is providing the following guidance:

• Total Revenue of between $2,400 million and $2,470 million;
• Adjusted EBITDA of between $310 million and $318 million;
• Managed Exits of $15 to $25 million in revenue, declining over the course of the fiscal year;
• Net Capital Expenditures of approximately 2.5% of revenue.

Although the first quarter of 2019 faces a comparison of $17.5 million in hurricane clean-up revenue in the prior-year first quarter (including $4.0 million from acquired businesses), underlying trends in the industry are expected to remain positive for the 2019 fiscal year, supporting topline growth in the Company’s existing footprint as well as a robust acquisition pipeline for the year. BrightView plans to continue its strategic approach to pricing, service enhancements, customer retention, new business development and “strong on strong” acquisitions. Finally, the Company will work to identify additional opportunities to leverage its SG&A and Corporate expenses in order to further expand operating margins.

The Company is not providing a quantitative reconciliation of our financial outlook for Adjusted EBITDA to net income (loss), its corresponding GAAP measure, because the GAAP measure that we exclude from our 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.

Recent Developments

California Wildfires

As of the date of this release, the devastating wildfires in both Northern and Southern California that began during the month of November 2018, have not caused material damage to either the Company’s office in Calabasas, CA, or its branch offices in the state. The Company is monitoring the situation but does not currently expect the wildfires to have a material impact on its employees, revenue stream or cost structure moving forward.

Daniel Schleiniger Appointed Vice President of Investor Relations

Daniel Schleiniger joined BrightView at the end of October 2018 as the new Vice President of Investor Relations, reporting to John Feenan, BrightView’s Chief Financial Officer. Dan’s most recent position, prior to joining BrightView, was VP of Corporate Communications and Investor Relations for Arcos Dorados (NYSE: ARCO). His career includes broad international experience across a number of finance functions including equity research, investor relations, financial planning and analysis as well as treasury and portfolio management. Dan holds a Bachelor of Science degree in chemistry from the University of Delaware and an MBA in Finance from the same institution. He will be based in BrightView’s Plymouth Meeting, PA headquarters.

Revised Fiscal Calendar

The Company revised its fiscal year end from December 31 to September 30 of each year, beginning with September 30, 2017. The period from January 1, 2017 through September 30, 2017 was recorded as a transition period. Year-over-year comparisons of annual financial results included in this press release and the attached financial tables compare results for BrightView’s full fiscal year 2018 (October 1, 2017 through September 30, 2018) to the Company’s twelve months ended September 30, 2017 (October 1, 2016 through September 30, 2017).

Conference Call Information

A conference call to discuss the fourth quarter and fiscal 2018 financial results is scheduled for November 28, 2018, at 10 a.m. Eastern Standard 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 5667795. 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 Dec 16, 2018, by dialing 800-585-8367 from the U.S., and entering conference passcode 5667795. A replay of the audio webcast also will be archived on the Company’s investor website.

Creating a workplace that aids employee recruitment, increases productivity, reduces healthcare costs, and saves money may be more achievable than many property managers realize; if they are willing to shift their focus outdoors. “Facility Executive Magazine” highlights companies that are adding multi-use green spaces, organic gardens, barbecue patios, and more to increase the appeal and utility of their campuses.

The National Association of Landscape Professionals reports 7 percent higher rental rates for commercial offices with high-quality landscapes, which can be achieved through simple enhancements such as walking paths, shade canopies, comfortable seating, and attractive plant materials. 

The article in “Facility Executive Magazine” expands on current trends in commercial landscaping, including experiential landscape design, climate-cognizant landscaping, productivity, connectivity, and water management/conservation. 

BrightView’s work at Oracle’s Redwood City and Santa Clara facilities achieved a savings of $573,000 in the first three months after 50 conventional controllers were converted to smart controllers. The campuses went on to save 91 million gallons of potable water in the first year. 

In addition to saving water with smart irrigation controllers, several landscaping products are being enhanced to make tasks less time consuming, including the use of mobile apps to track and plan services in real time. 

“Anything that can help you understand, track, manage, and analyze your site certainly is valuable,” said Megan Horn, Principal at BrightView Design Group. “Long-term data collection will deepen your understanding of the site and be highly informative for maintenance planning and evaluation. I suspect it would also assist in management and overall facility planning.” 

To read the full article, visit Facility Executive Magazine.

Governors Island has undergone significant transformations over its lifetime, from a fort during the American Revolution and a Civil War prison to a base for the U.S. Army and U.S. Coast Guard before shutting its doors in 1996 and leaving the 172 acres abandoned.

“The island used to be closed off to the public,” said David Opferkuch, Project Manager with BrightView Landscape Development. “Military service members were the only people who could experience it, and then it was just empty when they left.”

Seven years later, the island was transferred to New York with a portion of the top becoming a National Park and the bottom being redeveloped as a public park. One of the most notable features of the park at The Hills, four themed mounds on the southern portion of the island with breathtaking views of the Statue of Liberty and the New York skyline. BrightView left a major mark on the island, designing and installing Slide Hill, landscaping all four hills, installing the pathway on Discovery Hill, installing two baseball fields, and turned an old golf course into the Parade Grounds.

“We can sit here and watch [the plants and trees] grow over the years and become places where people can relax and enjoy the shade provided,” Opferkuch said. “Unlike buildings, which remain the same, a park like this gets better with age. It’s the best part of being in the landscaping industry.”

To read the full article, visit Parks & Rec Business.

Many landscapers across the United States are facing the harsh reality of having to cancel thousands of dollars worth of contracts because they simply cannot find enough workers to handle all their business. Some landscaping companies are even having to close down their business due to the shortage.

The severe labor shortage the industry faces is brought on by the lowest levels of American unemployment in two decades, combined with a high volume of requests for H-2B visas for only a limited number being released. There are several other industries being impacted by the visa shortage, but none more than the landscape industry, which accounts for 50 percent of all H-2B visas certified this year. 

BrightView, the largest commercial landscaping company in the country, is also the biggest user of H-2B visas in the industry. However, it is often smaller companies that are hit the hardest by the shortage, resulting in less revenue and sometimes in a closed business. 

To read the full article, visit the Wall Street Journal.