BrightView, a leading commercial landscaping services company in the United States, reported unaudited results for the third quarter ended June 30.
“Our quarterly results highlight the resiliency of our contract-based business and reflect the positive underlying trends of our strong-on-strong acquisition strategy, cash generation and liquidity and our ongoing focus on working capital and reducing capital expenditures,” said Andrew Masterman, BrightView president and CEO. “Our services and results of operations continue to benefit from a designation as an essential service. Our team has done an incredible job responding to the COVID-19 crisis by prioritizing health and safety and by delivering solid results in a challenging operating environment.
“Despite ancillary softness and project delays, COVID-19 impacts to date have been modest due to our resilient contract revenue base, and our earnings have benefited from cost management actions. Cash generation remains exceptional, margins strong, our CapEx requirements are modest and we expect our M&A pipeline to continue to be a reliable and sustainable source of revenue growth,” Masterman said. “We expect COVID-19 impacts will be felt over the next few quarters as conditions remain fluid. That said, we believe we are in a strong position to generate near-term solid EBITDA results, continued strong cash generation and stable top line performance.”
Third quarter fiscal 2020 highlights include:
- Net cash provided by operating activities of $76.2 million, an increase of 71.2 percent compared to $44.5 million in the prior year.
- Free cash flow of $66.5 million, an increase of 385.4 percent compared to prior year of $13.7 million.
- Total revenue of $608.1 million; a 7.5 percent decrease compared to prior year of $657.2 million.
- Maintenance revenue of $460.0 million; a 6.5 percent decrease compared to prior year of $492.1 million;
- Land revenue of $454.9 million; a 6.5 percent decrease compared to prior year of $486.4 million.
- Development revenue of $149.1 million, a 10.3 percent decrease compared to prior year of $166.3 million.
- Net loss of $2.4 million, or $(0.02) per share, and a net loss margin of 0.4 percent, compared to net income of $31.7 million, or $0.31 per share, and a net income margin of 4.8 percent, in the prior year.
- Adjusted EBITDA of $91.0 million and adjusted EBITDA margin of 15.0 percent, compared to adjusted EBITDA of $101.9 million and adjusted EBITDA margin of 15.5 percent in the prior year.
Nine months fiscal 2020 highlights include:
- Net cash provided by operating activities of $161.9 million, an increase of 48.3 percent compared to $109.2 million in the prior year.
- Free cash flow of $119.8 million, an increase of 208.8 percent compared to prior year of $38.8 million.
- Total revenues for the nine months were $1,737.9 million, a 2.4 percent decrease compared to $1,779.9 million in the prior year.
- Maintenance revenue of $1,295.1 million; a 4.6 percent decrease compared to prior year of $1,358.0 million;
- Land revenue of $1,132.0 million; 1.7 percent growth compared to prior year of $1,112.6 million;
- Snow revenue of $163.1 million; a 33.5 percent decrease compared to prior year of $245.4 million.
- Development revenue of $445.5 million, a 4.9 percent increase compared to prior year of $424.7 million.
- Net loss of $35.5 million, or $(0.34) per share, and a net loss margin of 2.0 percent, compared to net income of $19.3 million, or $0.19 per share, and a net income margin of 1.1 percent, in the prior year.
