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BrightView(BV) - 2024 Q4 - Annual Results
BVBrightView(BV)2024-11-13 21:16

Financial Performance - Fourth quarter total revenue decreased 2.0% year-over-year to 728.7million,whilefullyearrevenuedecreased1.7728.7 million, while full year revenue decreased 1.7% to 2,767.1 million[2][6] - Fourth quarter net income increased 56.1% year-over-year to 25.6million,withanetincomemarginexpansionof10basispoints[2][4]−FourthquarterAdjustedEBITDAincreased3.525.6 million, with a net income margin expansion of 10 basis points[2][4] - Fourth quarter Adjusted EBITDA increased 3.5% year-over-year to a record 105.2 million, with an Adjusted EBITDA margin expansion of 70 basis points[2][4] - Full year net cash provided by operating activities increased 58.3% year-over-year to 205.6million,andfreecashflowincreased205.6 million, and free cash flow increased 65.1 million year-over-year to 145.3million[2][14]−BrightViewHoldingsreportedanetincomeof145.3 million[2][14] - BrightView Holdings reported a net income of 66.4 million for the fiscal year ended September 30, 2024, compared to a net loss of 7.7millioninthepreviousyear[28]−AdjustedEBITDAforthefiscalyear2024was7.7 million in the previous year[28] - Adjusted EBITDA for the fiscal year 2024 was 324.7 million, an increase from 298.7millioninfiscalyear2023[29]−Thecompanygenerated298.7 million in fiscal year 2023[29] - The company generated 205.6 million in net cash from operating activities, up from 129.9millionintheprioryear[28]−Freecashflowforthefiscalyear2024was129.9 million in the prior year[28] - Free cash flow for the fiscal year 2024 was 145.3 million, compared to 80.2millioninfiscalyear2023[29]RevenueBreakdown−MaintenanceServicesrevenuedecreasedby80.2 million in fiscal year 2023[29] Revenue Breakdown - Maintenance Services revenue decreased by 102.5 million, or 5.0%, for the fiscal year, while Development Services revenue increased by 50.8million,or6.750.8 million, or 6.7%[10][13] - Maintenance Services revenue decreased to 486.5 million for the three months ended September 30, 2024, down from 520.8millionintheprioryear,adeclineof6.5520.8 million in the prior year, a decline of 6.5%[26] - Development Services revenue increased to 244.1 million for the three months ended September 30, 2024, compared to 224.7millioninthesameperiodlastyear,anincreaseof8.0224.7 million in the same period last year, an increase of 8.0%[26] Debt and Financial Ratios - As of September 30, 2024, the Company's Total Net Financial Debt was 736.9 million, a decrease of 133.6millionfrom133.6 million from 870.5 million as of September 30, 2023[15] - The Total Net Financial Debt to Adjusted EBITDA ratio improved to 2.3x as of September 30, 2024, compared to 2.9x in the previous year and 4.8x in 2022[15] - The decrease in Total Net Financial Debt and the improvement in the debt to EBITDA ratio were primarily driven by an increase in Cash and Equivalents and repayment of 87.3millionunderthereceivableFinancingAgreement[15]−TotalFinancialDebtasofSeptember30,2024,is87.3 million under the receivable Financing Agreement[15] - Total Financial Debt as of September 30, 2024, is 877.3 million, down from 937.5millionin2023[37]−TotalNetFinancialDebtdecreasedto937.5 million in 2023[37] - Total Net Financial Debt decreased to 736.9 million in 2024 from 870.5millionin2023,reflectingasignificantreduction[37]−TheTotalNetFinancialDebttoAdjustedEBITDAratioimprovedto2.3xin2024,comparedto2.9xin2023[37]−Long−termdebt,net,wasreportedat870.5 million in 2023, reflecting a significant reduction[37] - The Total Net Financial Debt to Adjusted EBITDA ratio improved to 2.3x in 2024, compared to 2.9x in 2023[37] - Long-term debt, net, was reported at 802.5 million for September 30, 2024, down from 888.1millioninthepreviousyear[37]CashandAssets−Thecompany’scashandcashequivalentsincreasedsignificantlyto888.1 million in the previous year[37] Cash and Assets - The company’s cash and cash equivalents increased significantly to 140.4 million as of September 30, 2024, compared to 67.0millionintheprioryear,agrowthof109.767.0 million in the prior year, a growth of 109.7%[22] - Total current assets increased to 780.1 million as of September 30, 2024, compared to 742.1millioninthepreviousyear,representingagrowthof5.4742.1 million in the previous year, representing a growth of 5.4%[22] - Cash and cash equivalents at the end of the period increased to 140.4 million from 67.0millionyear−over−year[28]GuidanceandFutureOutlook−Fiscalyear2025guidanceprojectstotalrevenuebetween67.0 million year-over-year[28] Guidance and Future Outlook - Fiscal year 2025 guidance projects total revenue between 2.750 billion and 2.840billion,andAdjustedEBITDAbetween2.840 billion, and Adjusted EBITDA between 335 million and 355million[3]−Forward−lookingstatementsindicatepotentialrisksincludingcompetitivepressuresandtheabilitytoretaincustomers,whichcouldimpactfutureperformance[18]CompanyStrategyandOperations−Thecompanyemphasizedamulti−facetedtransformationaimedatsustainablegrowthandvaluecreationforstakeholders[3]−TheCompanyemphasizessustainablesolutionsandbestpracticesinitsoperations,aimingtoengageclientsandinspirecommunities[17]Non−GAAPMeasures−TheCompanyutilizesnon−GAAPfinancialmeasuressuchasAdjustedEBITDAandFreeCashFlowtoprovideaclearerpictureofitsoperationalperformance[20]−AdjustedEBITDAisdefinedasnetincomebeforeinterest,taxes,depreciation,andamortization,adjustedfornon−cashandnon−recurringitems[21]−TotalFinancialDebtincludeslong−termdebtandfinanceleaseobligations,whileTotalNetFinancialDebtiscalculatedbysubtractingcashandequivalents[21]OtherFinancialMetrics−Thecompanyincurredbusinesstransformationandintegrationcostsof355 million[3] - Forward-looking statements indicate potential risks including competitive pressures and the ability to retain customers, which could impact future performance[18] Company Strategy and Operations - The company emphasized a multi-faceted transformation aimed at sustainable growth and value creation for stakeholders[3] - The Company emphasizes sustainable solutions and best practices in its operations, aiming to engage clients and inspire communities[17] Non-GAAP Measures - The Company utilizes non-GAAP financial measures such as Adjusted EBITDA and Free Cash Flow to provide a clearer picture of its operational performance[20] - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, adjusted for non-cash and non-recurring items[21] - Total Financial Debt includes long-term debt and finance lease obligations, while Total Net Financial Debt is calculated by subtracting cash and equivalents[21] Other Financial Metrics - The company incurred business transformation and integration costs of 44.1 million for the fiscal year 2024, compared to 23.7millioninthepreviousyear[31]−Equity−basedcompensationexpenseswere23.7 million in the previous year[31] - Equity-based compensation expenses were 20.5 million for the fiscal year 2024, slightly down from 22.3millioninfiscalyear2023[29]−Thecompanyreportedarealizedgainondivestitureof22.3 million in fiscal year 2023[29] - The company reported a realized gain on divestiture of 43.6 million during the fiscal year 2024[29] - Cash paid for interest decreased to 67.7millionfrom67.7 million from 82.1 million year-over-year[28] - Adjusted earnings per share for the fiscal year 2024 were 0.76,comparedto0.76, compared to 0.42 in the previous year[29] - The tax impact of pre-tax income adjustments for the year ended September 30, 2024, was 12.8million,comparedto12.8 million, compared to 34.1 million in 2023[34] - The Company experienced losses on the extinguishment of debt related to amendments to the Credit Agreement in fiscal years 2024 and 2023[33]