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.

“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.”

Read the full report here.

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.

“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.”

Read the full report here.

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.

Barron’s magazine summarized BrightView’s first quarter as a publicly traded company and provided an outlook “far sunnier than its stock price suggests.” This year’s weather included the largest April snowstorm in decades for the East Coast, followed by record rainfall this summer in many states. BrightView CEO Andrew Masterman told Barron’s that the early April storms cost BrightView nearly $5 million in sales.

Barron’s also mentions how BrightView made eight acquisition deals since 2017 for a total of $161 million. One analyst estimated another $2 billion worth of potential acquisitions that could double BrightView’s size, putting a price target of $25 on BrightView shares.

To read the full article, visit the www.Barrons.com.

BrightView Holdings, Inc. (NYSE: BV) (“BrightView” or the “Company”) today reported results for the third fiscal quarter ended June 30, 2018.

BrightView Chief Executive Officer, Andrew Masterman stated: “Our third quarter was another strong period for us. We successfully grew top-line revenue from the same period of 2017, recognizing $630.3 million in revenues which is the highest revenue generating quarter in our history, led by growth in our Maintenance Services segment. We generated Adjusted EBITDA of $97.8 million during the quarter and had a 15.5% Adjusted EBITDA Margin. We also continue to execute on our ‘strong-on-strong’ acquisition strategy, successfully acquiring two landscape service companies during the quarter enabling us to further expand our business. Since the quarter end we successfully completed our IPO, generating net proceeds of $501.2 million. We are excited to embark on this new chapter for the Company.”

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, and Adjusted Free Cash Flow are not measures recognized under generally accepted accounting principles (“GAAP”). Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for more information.

Third Fiscal Quarter Results

For the third quarter of fiscal 2018, the Company’s consolidated revenues increased 0.4% to $630.3 million compared to the same period in 2017 due to 2.9% revenue growth within the Maintenance Services segment primarily driven by incremental revenues from businesses acquired of $26.1 million. Revenues from the Development Services segment declined 5.7% compared to the same period last year due to winding down production on certain large projects that reached substantial completion during the quarter, coupled with the timing of commencing work on new projects.

On a GAAP basis, net loss was $1.4 million, compared to net income of $15.4 million for the third quarter of fiscal 2017, primarily driven by an increase in equity-based compensation costs incurred in connection with our IPO and other one-time IPO expenses.

Adjusted EBITDA for the third fiscal quarter was $97.8 million, compared to $98.5 million for the third quarter of fiscal 2017. Adjusted Net Income was $33.2 million, compared to $35.2 million in the 2017 period.

Net cash provided by operating activities for the nine months ended June 30, 2018 was $123.7 million, compared to $69.0 million for the same period last year. Adjusted Free Cash Flow for the nine months ended June 30, 2018 was $77.5 million, an increase in cash generation of $54.2 million over the same period last year. The increases are reflective of improvements in working capital management. For the nine months ended June 30, 2018, capital expenditures were $71.7 million, compared with $51.0 million last year, driven by the purchase of legacy ValleyCrest facilities for $21.6 million in October 2017.

Recent Developments

On July 2, 2018, the Company completed an IPO in which it issued and sold 24,495,000 shares of common stock at an offering price of $22.00 per share, which generated net proceeds of approximately $501.2 million after deducting underwriting discounts and commissions and other offering expenses.

Proceeds from the IPO were used exclusively to pay down debt, resulting in a total debt to Adjusted EBITDA leverage ratio post-IPO of 4.0x, compared with 5.7x pre-IPO.

Conference Call Information

A conference call to discuss the third fiscal quarter 2018 financial results is scheduled for August 9, 2018, at 10 a.m. Eastern Daylight Time. The U.S. toll free dial-in for the conference call is 866-393-4306 and the international dial-in is 734-385-2616. The conference passcode is 3147928. 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 Thursday, August 16, 2018, by dialing 800-585-8367 from the U.S., and entering conference passcode 3147928. A replay of the audio webcast also will be archived on the Company’s investor website.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180808005772/en/

BrightView Holdings, Inc. (“BrightView”) today announced the pricing of its initial public offering of 21,300,000 shares of its common stock at $22.00 per share.  Shares of BrightView’s common stock are expected to begin trading on the New York Stock Exchange on June 28, 2018 under the symbol “BV,” and the offering is expected to close on July 2, 2018, subject to customary closing conditions.  BrightView has granted the underwriters a 30-day option to purchase up to an additional 3,195,000 shares of its common stock.

BrightView will receive net proceeds of approximately $435.1 million after deducting underwriting discounts and commissions and estimated offering expenses and intends to use the net proceeds from the offering to repay borrowings outstanding under its second lien term loan facility and its revolving credit facility and, with all remaining proceeds, to repay borrowings outstanding under its first lien term loan facility. 

Goldman Sachs & Co. LLC, J.P. Morgan, KKR Capital Markets and UBS Investment Bank are acting as joint bookrunning managers for the proposed offering, and Baird, Credit Suisse, Macquarie Capital, Jefferies, Mizuho Securities, Morgan Stanley and RBC Capital Markets are also acting as bookrunners for the proposed offering. Nomura, Stifel, William Blair, Moelis & Company and SMBC Nikko are acting as co-managers for the proposed offering. 

A registration statement, including a prospectus, relating to the offering has been declared effective by the U.S. Securities and Exchange Commission (the “SEC”).  This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering of these securities will be made only by means of a prospectus. Copies of the prospectus may be obtained from Goldman Sachs & Co. LLC, Prospectus Department at 200 West Street, New York, NY 10282 or by telephone at 866-471-2526 or by facsimile at 212-902-9316, or by email at [email protected]; or J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at 866-803-9204.

Forward Looking Statements 

This press release includes certain disclosures which contain “forward-looking statements.” You can identify forward-looking statements because they contain words such as “believes” and “expects.” Forward-looking statements are based on BrightView’s current expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in BrightView’s filings with the SEC, including its registration statement on Form S-1, as amended from time to time, under the caption “Risk Factors.” Any forward-looking statement in this release speaks only as of the date of this release. BrightView undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

When two of the nation’s largest landscape companies, Brickman and ValleyCrest, announced in 2014 that they would merge, it was big news in the landscape industry. Both venerable companies with long histories, Brickman was founded in 1939 and Valley Crest in 1949. At the time of the merger, the two firms had more than 20,000 employees and $2 billion in revenue, and ValleyCrest was on Forbes list of the top-500 privately held companies.

The new company rebranded as BrightView, and Andrew Masterman took the helm as president and CEO in November 2016, following in the footsteps of the first CEO Andrew Kerin and interim CEO Pat Velasco. Mergers are never an easy process, so we talked with Masterman to see how things are going three years after the merger was announced.

YOU RECENTLY JOINED BRIGHTVIEW AS CEO. WHAT ATTRACTED YOU TO THE JOB?

There is a great deal about BrightView that appealed to me. I knew I would be joining a team made up of some of landscaping’s most skilled and committed professionals. I knew the company was the industry leader and that it does great work across multiple service lines—design, development, maintenance, golf, tree care and sports turf. The breadth of BrightView’s operations was also very appealing to me.

WHAT MAKES THE LANDSCAPE INDUSTRY DIFFERENT OR UNIQUE VERSUS OTHER INDUSTRIES YOU HAVE WORKED IN?

It is a fascinating and complex business. Something that I find gratifying is the relationship between us and our clients and how that partnership can help deliver value to the customers. If you look at one of our client categories, healthcare, you can see how important landscapes are to delivering value and helping achieve good patient outcomes. We help these facilities design, build and maintain landscapes that create a safe environment that can aid in the healing process. That’s a dimension to this business that I hadn’t really thought about before coming to work here. It is certainly gratifying to know that you’re not only helping your clients succeed, but you’re helping people in the process.

BRIGHTVIEW HAS BEEN THROUGH A LONG MERGER AND TRANSITION PERIOD. HOW IS THE COMPANY DOING NOW? ARE THERE LESSONS LEARNED ABOUT MERGING TWO LARGE COMPANIES?

The company is doing very well, and so much of the credit goes to BrightView crews, the men and women who deliver on our brand promise every day in every branch. As we move forward as BrightView, it’s important that we continue to embrace the values that created success for Brickman and ValleyCrest and that we never forget that despite our size and national presence we are a local company. In terms of the merger and transition, while there is still work to do, we have made real progress in bringing the legacy companies together and moving forward together as BrightView. We’re through much of the initial challenges of the merger, but I try to focus on the positive qualities that were common to both Brickman and ValleyCrest: a passion for the craft of landscaping and a commitment to serving clients.

WHAT CHALLENGES HAS BRIGHTVIEW FACED RELATED TO THE MERGER?

Merging any two organizations will bring cultural challenges, though we’re largely through that process now. Everyone who is with us now is committed to what we want to achieve as BrightView. Delivering quality and value to our clients and creating a safe and rewarding workplace for our teams are really the only things that matter. We had the privilege of learning from both Brickman and ValleyCrest and making BrightView reflect the positive qualities of both. I have a good sense of some of the day-to-day challenges we’ve faced merging the companies, but thankfully most of that work was already done when I arrived.

IN ANY MERGER, YOU WILL LOSE LONG-TERM EMPLOYEES. HAS THAT BEEN A CHALLENGE, AND HOW HAVE YOU HANDLED IT?

That is an unfortunate consequence of any merger. Skilled, dedicated people have such a long-standing and emotional connection to the company they’ve spent years—sometimes decades—working for, and a merger is a difficult thing. Since the merger, some employees have moved on or chosen to change careers. That is natural in any period of change. However, I can confidently say that one of the best surprises in my joining BrightView was the depth of leadership in the organization.

We are working now to create an entrepreneurial environment at the branch level, but within the context and strength of a national organization. But whether you’re maintaining a golf course in Florida or building a corporate campus in Southern California, we’re all committed to BrightView and to serving our customers. There are literally hundreds of account managers, branch managers and business developers and thousands of crewmembers with more than 10 years with the company, many with more than 20. We just celebrated several employees at one branch with more than 40 years experience with the company. That kind of depth is a testament to the commitment our employees have to their work and their customers.

HOW DO YOU FEEL ABOUT THE POTENTIAL FOR THE LANDSCAPE INDUSTRY? OPPORTUNITIES? CHALLENGES?

I’m very excited about the prospects for our industry. Since coming here late last year, I have toured hundreds of BrightView work sites and branches across all of our service lines. It is inspiring to see the kind of first impression (and lasting impression) that a well-designed, professionally installed and maintained landscape can make. I mentioned healthcare earlier, but in other environments—universities, parks, corporate campuses and even sports venues—the impact can be just as significant.

In terms of challenges, staffing probably tops the list. At the crew level, landscaping is demanding and difficult work. It’s not for everyone, but we have team members who have been with us for decades, and we have multi-generation BrightView families. Once someone joins BrightView, our job is to create an environment that is rewarding and safe and offers opportunity for career growth.

WHAT IS THE VISION FOR THE FUTURE OF BRIGHTVIEW? LONG-TERM, SHORT-TERM GOALS THAT YOU WANT TO SHARE?

Our long-term strategy is built on organic growth within our branches-winning new business and expanding our relationship with existing clients. As you saw with the Marina purchase in January, we're also looking to grow through acquisition. While there are a tremendous number of potential acquisition targets in this business, we have to be disciplined. If we bring a company into the BrightView family, we have to be assured that it's a good fit for us both strategically and culturally. Marina clearly was.

In addition, the scope of what we do allows our employees to truly build careers. I have met dozens of BrightView team members who started on a crew and now are production managers, account managers, branch managers and company vice presidents. Even when team members face  circumstances that require them to move, we can often support that decision and find a way to stay with BrightView as they move across a city, within a state or even to other states.

WHAT MAKES BRIGHTVIEW DIFFERENT FROM OTHER LANDSCAPE COMPANIES?

Every BrightView team member I speak with shares a passion for creating beautiful and inspiring landscapes. Not only do we have team members who have been with us for 30 years or more, we have multi-generation BrightView families. That institutional knowledge, experience, passion and loyalty is one of our great strengths.

I mentioned earlier that we are a local company with a national presence, which allows us to focus resources and expertise wherever our clients may need it. As you saw with Hurricane Matthew and Winter Storm Stella, events that have potentially catastrophic impacts for our clients, we are able to focus resources not just from multiple branches, but from multiple lines of business. There aren’t many companies in commercial landscaping that marshal resources like we can.

Scale also allows us to benefit from shared best practices and purchasing economy. At BrightView, we are institutionalizing quality through an Operational Excellence Center. OpX has been charged with creating one BrightView way in safety, quality management, client service, production planning, irrigation management, training and technical services. OpX allows us to take decades of institutional knowledge and accumulated skill and passion from our teams and make it the central pillar of the BrightView brand.

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