BrightView Holdings Inc Reports Growth in Q4 and Full Year Fiscal 2023 Results
Fourth quarter revenue up 2.8% to a record $743.7 million.
Net income for the quarter increased by 7.2% to $16.4 million.
Full year free cash flow surged to $80.2 million, a significant increase from the previous year.
Company provides fiscal year 2024 guidance with expected total revenue of $2.825 - $2.975 billion and Adjusted EBITDA of $310 - $340 million.
On November 16, 2023, BrightView Holdings Inc (NYSE:BV) released its 8-K filing, announcing its financial results for the fourth quarter and full fiscal year ended September 30, 2023. The company reported a record fourth quarter with total revenue increasing by 2.8% year-over-year to $743.7 million. Net income for the quarter also saw a rise of 7.2% to $16.4 million, with net income margin expanding by 10 basis points.
Financial Performance Overview
BrightView's fourth quarter Adjusted EBITDA increased by 11.3% to a record $101.6 million, with the Adjusted EBITDA margin expanding by 110 basis points. The full year net cash provided by operating activities grew by 35.9% to $129.9 million, and the company's free cash flow increased by $73.5 million year-over-year to $80.2 million. This robust performance led to a reduction in the full year Total Net Financial Debt to Adjusted EBITDA ratio to 2.9x, down from 4.8x in the prior year.
Segment Performance and Cash Flow Metrics
The Maintenance Services Segment saw a slight decrease in revenue for both the quarter and fiscal year, attributed to a decrease in snow removal services due to lower snowfall. However, Adjusted EBITDA for the segment remained relatively stable due to disciplined management of labor and materials costs. The Development Services Segment, on the other hand, experienced a revenue increase of 13.5% for the quarter and 8.5% for the year, driven by increased project volumes and lower materials costs as a percentage of revenue.
Free Cash Flow saw a significant increase to $80.2 million for the fiscal year ended September 30, 2023, from $6.7 million in the prior year. This was primarily due to a decrease in cash used for acquisitions and capital expenditures, as well as an increase in proceeds from the sale of property and equipment.
Balance Sheet and Debt Metrics
As of September 30, 2023, BrightView's Total Net Financial Debt was $870.5 million, a decrease of $504.4 million compared to the previous year. The Total Net Financial Debt to Adjusted EBITDA ratio improved to 2.9x from 4.8x, reflecting the company's successful deleveraging efforts.
BrightView's President and CEO, Dale Asplund, commented on the results, stating,
BrightView finished a successful fiscal year 2023 with fourth quarter results reflecting growth in revenue, EBITDA and cash flow,"
and highlighted the team's successful execution on key initiatives including deleveraging the balance sheet and prioritizing profitable growth.
Looking ahead, BrightView provided fiscal year 2024 guidance, anticipating total revenue of $2.825 - $2.975 billion and Adjusted EBITDA of $310 - $340 million. The company's focus remains on achieving short- and long-term goals and creating value for all stakeholders.
For more detailed information on BrightView Holdings Inc's financial results, including the full financial tables and reconciliation of GAAP to Non-GAAP financial measures, please refer to the company's 8-K filing.
Explore the complete 8-K earnings release (here) from BrightView Holdings Inc for further details.
This article first appeared on GuruFocus.
