BrightView(BV) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter total revenue decreased 2.0% year-over-year to $728.7 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 $25.6 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 $205.6 million, and free cash flow increased $65.1 million year-over-year to $145.3 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 $7.7 million in the previous year[28] - Adjusted EBITDA for the fiscal year 2024 was $324.7 million, an increase from $298.7 million in fiscal year 2023[29] - The company generated $205.6 million in net cash from operating activities, up from $129.9 million in the prior year[28] - Free cash flow for the fiscal year 2024 was $145.3 million, compared to $80.2 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 $50.8 million, or 6.7%[10][13] - Maintenance Services revenue decreased to $486.5 million for the three months ended September 30, 2024, down from $520.8 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 $224.7 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 $133.6 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 $87.3 million under the receivable Financing Agreement[15] - Total Financial Debt as of September 30, 2024, is $877.3 million, down from $937.5 million in 2023[37] - Total Net Financial Debt decreased to $736.9 million in 2024 from $870.5 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 $888.1 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 $67.0 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 $742.1 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 $67.0 million year-over-year[28] Guidance and Future Outlook - Fiscal year 2025 guidance projects total revenue between $2.750 billion and $2.840 billion, and Adjusted EBITDA between $335 million and $355 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 $23.7 million in the previous year[31] - Equity-based compensation expenses were $20.5 million for the fiscal year 2024, slightly down from $22.3 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 $67.7 million from $82.1 million year-over-year[28] - Adjusted earnings per share for the fiscal year 2024 were $0.76, 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 $12.8 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]