BrightView(US:BV)2025-02-05 21:20Financial Performance - Net service revenues for the three months ended December 31, 2024, were $599.2 million, a decrease of 4.0% from $626.7 million in the same period of 2023[17]. - Gross profit for the same period was $126.8 million, down from $133.8 million, reflecting a gross margin of approximately 21.1%[17]. - The net loss attributable to common stockholders for Q4 2024 was $19.4 million, compared to a net loss of $25.3 million in Q4 2023, indicating an improvement in performance[17]. - Basic and diluted loss per share for Q4 2024 was $0.20, compared to $0.27 in Q4 2023[17]. - The company reported a comprehensive loss of $2.2 million for Q4 2024, significantly improved from a comprehensive loss of $29.3 million in Q4 2023[20]. - For the three months ended December 31, 2024, BrightView reported a net loss of $10.4 million, compared to a net loss of $16.4 million for the same period in 2023, representing a 36.5% improvement in net loss year-over-year[25]. - Operating cash flow for the three months ended December 31, 2024, was $60.5 million, significantly higher than $26.2 million for the same period in 2023, indicating a 130.5% increase[25]. - Adjusted net income for Q4 2024 increased by $2.6 million to $5.6 million compared to $3.0 million in Q4 2023[142]. - Net loss for Q4 2024 was $10.4 million, an improvement from a net loss of $16.4 million in Q4 2023, with net loss as a percentage of revenue at 1.7% compared to 2.6% in the prior year[140]. Assets and Liabilities - Total current assets decreased to $686.0 million as of December 31, 2024, down from $780.1 million at the end of September 2024[15]. - Total liabilities decreased to $1,535.0 million as of December 31, 2024, compared to $1,609.4 million at the end of September 2024[15]. - Long-term debt, net, was $796.5 million as of December 31, 2024, slightly down from $802.5 million at the end of September 2024[15]. - BrightView's total stockholders' equity decreased to $1,265.5 million as of December 31, 2024, down from $1,243.3 million as of December 31, 2023, a decline of 1.8%[22]. - Cash and cash equivalents decreased to $98.3 million as of December 31, 2024, from $140.4 million at the end of September 2024[15]. - The reserve for unpaid and incurred but not reported claims was $172.5 million as of December 31, 2024, an increase from $165.6 million as of September 30, 2024[87]. - Net working capital decreased by $30.1 million to $206.7 million as of December 31, 2024, primarily due to a decrease in cash and cash equivalents[179]. Revenue Segments - Maintenance Services revenue for Q4 2024 was $409.3 million, a decrease of 7.0% from $442.3 million in Q4 2023[41]. - Development Services revenue increased to $191.8 million in Q4 2024, up 3.4% from $185.4 million in Q4 2023[41]. - Net service revenues for Q4 2024 decreased by $27.5 million, or 4.4%, to $599.2 million compared to $626.7 million in Q4 2023, primarily due to a $33.0 million decrease in Maintenance Services revenues[133]. - Maintenance Services segment net service revenues decreased by 7.5% to $409.3 million, while segment adjusted EBITDA increased by 10.2% to $34.6 million[159]. - Development Services net service revenues increased by $6.4 million, or 3.5%, for the three months ended December 31, 2024, driven by increased project volumes[163]. Cash Flow and Investments - The company reported a net cash used in investing activities of $55.3 million for the three months ended December 31, 2024, compared to $8.6 million in the same period of 2023, reflecting increased investment activity[25]. - Cash flows from operating activities for Q4 2024 were $60.5 million, significantly higher than $26.2 million in Q4 2023[149]. - Adjusted free cash flow decreased to $4.4 million in Q4 2024 from $17.3 million in Q4 2023, impacted by increased capital expenditures[149]. - Net cash used by investing activities increased by $46.7 million to $55.3 million for the three months ended December 31, 2024, primarily due to a $48.6 million increase in capital expenditures[175]. Debt and Financing - The Company has a five-year $300.0 million revolving credit facility that matures on April 22, 2027[59]. - The Company borrowed $1.6 million against its receivables financing agreement during Q4 2024 and voluntarily repaid $8.4 million[61]. - Total long-term debt as of December 31, 2024, is $796.5 million after accounting for current maturities, original issue discount, and financing costs[62]. - The fair value of long-term debt is estimated at approximately $812.1 million as of December 31, 2024[62]. - Interest expense, net decreased by $2.9 million, or 17.0%, to $14.2 million due to lower interest rates and a decrease in long-term debt[138]. Market Position and Strategy - The company is the largest provider of commercial landscaping services in the U.S., with revenues approximately 5 times those of its next largest competitor[103]. - The company expects to continue growing through acquisitions, focusing on increasing market density and entering new geographic markets[121]. - Integration costs for acquisitions are anticipated to represent approximately 7%-9% of the acquisition price, incurred within 12 months of completion[124]. - Seasonal variability affects revenue, with higher revenues typically in spring and summer, while winter services are driven by snow removal[117]. - Economic conditions, including rising inflation and interest rates, may impact costs and the ability to hire and retain employees[130]. - The company maintains a predictable recurring revenue model due to the non-discretionary nature of its landscape maintenance services[130]. Stock and Compensation - The Company issued 607,000 restricted stock units (RSUs) at a weighted average grant date fair value of $17.30 per share during the three months ended December 31, 2024[81]. - The outstanding stock options as of December 31, 2024, total 2,706,000, with a weighted average exercise price of $19.23 per share[82]. - The Company recognized $4.5 million in equity-based compensation expense for the three months ended December 31, 2024, compared to $5.1 million for the same period in 2023[85]. - Total unrecognized compensation cost was $35.1 million as of December 31, 2024, up from $30.6 million as of September 30, 2024[85]. - The Company declared a cash dividend of $9.0 million on the Series A Preferred Stock on December 17, 2024[95].