BrightView (BV) 1 Aug 242024 Q3 Earnings call transcript

Hello, and welcome to BrightView Holdings Third Quarter 2024 Earnings Call. My name is Ezra, and I will be coordinating your call today. [Operator Instructions] I will now hand over to your host, Chris Stoczko, Vice President, Finance and Investor Relations, to begin. Chris Stoczko, please go ahead.

Good morning, and thank you for joining BrightView's third quarter earnings call. and are Officer; on President Chief Brett BrightView's Officer, Financial the Asplund, Chief and Executive Urban, Dale call.

which found I'll X now our be of Slide safe website, on the presentation, disclaimer. refer which can you contains our to harbor also

subject forward-looking risks and Our statements uncertainties. presentation to includes

over In addition, With a for call refer turn reconciliation these measures. we call, I to measures. will financial the yesterday non-GAAP during X-K Dale. our see issued the that, now Please press will certain to release and of

Thanks, Chris, everyone. morning, and good

As on X-year deliver long to we reflect both the my I as is time pace and approaching mark, incredible a here, breakout the term, near in increase on which continue year. to my conviction are opportunities,

BrightView growth. our drive We scale to will and Both and leveraging shareholder are by unified doing this value profitable size to operating lead meaningful as creation. One a

to that customers this enhance I said of our provide putting progress, everything have customers. will I day our from increased and grateful commitment along do. who and X center their I strategic better will our employees, on care As the Slide with with updates turn for we am start our for in X, taking employees better to extremely service begins by position ongoing objectives. of our emphasizing at accomplish our our achievements will

and 'XX EBITDA, margin year. all segments. flow this across revenue, improvement And cash the guidance, delivered we with raising second reaffirming and record time a full are EBITDA First, for all free year year-to-date QX we while margin

minutes. focus comments One I more being BrightView. details on to on Brett made financials my progress the a into will few towards in get the tremendous want

our choice, the our said employer frontline from future employees to the this to be in our our day success. first is I and is core journey. the goal Investing in have will As X, become step of

investments, customer this a and it retention. to improved will in By minute. making on More these translate employee turnover

integrated density and inefficiencies, structure, brings and technology reducing promote streamlined our coverage cross-selling business our lines our to are us our We route operating legacy enhancing by customers. market have also offering optimal to to closer it ensure

will that and Slide are the having. we On become impact choice the employer discuss the I initiatives it's of taking some of X, to

earlier, to build a said objective our I As culture. is winning

our being BrightView So asset. pride take and greater that are in of our unwavering in single the the employees confidence team part they important most have fact

While profitable retention this customer investment, sustainable, requires will upfront drive and turnover result an reduced and growth. in this ultimately employee increased

a examples these of you remind few of To investments.

employees launched and mowers. customers. Boots We are program the refreshing better to we to but March, And enabling ensure only fleet of safe our trucks in service our comfortable our are them not

a snapshot of positive the seeing is this While in a already underway, turnover. we employee momentum few changes of are

employees for frontline has that we instance, turnover stay. For an X X points, the improvements. and X,XXX take months, the rate our our basis of past improved likely to engaged they'll shows more become including unequivocally if employees, more care monthly impressive consecutive in This

service. best-in-class they in providing step employees always key been The One first has the our first. journey as are BrightView to

retention Slide towards momentum to to commitment similar improve X, significantly to provide growth. to our goal in service translate the This customer requires On investing will levels. the employees, best-in-class a

improvement steady we have can we months, increase the XXX remaining. significant you seen Specifically, X delivered first chart, have with over As on a points retention see my opportunity in rates, basis

collaborative delivers as am to may transform we'll be to not consistent employee our BrightView, customers. and as confident linear base incremental continue efficient, benefit trends we service unified a more that these experience While I

profitable impact and growth. delivering Continued progress long-term to had the turnover the on change way fundamentally operates employee will retention and greatest customer BrightView

further unified BrightView. One a benefit as highlight On the Slide operating X, I'll of

cross-selling BrightView's down we broken in silos, are we As services. gaining suite traction have of full

a contract. project concluded converted is $XXX,XXX on recently in reoccurring this we meaningful into future of X opportunity the maintenance and prominent development a million behalf annual corporate This relationship significant growth. As Southwest an create will client example a $X example, the that underleveraged of

optimize prospecting total Additionally, route reduce is we combination improve leveraging our sales margins. to equipped of and to we time addressable technology branches enables our market, The seek that density, deliberate with branches tool incorporating targeting. into windshield have force our as enhanced customer expected our more a improve and

was strategy accounts location relative see limited increased new instead As of the consideration sustainable with windshield much business on for crew The margin existing bundled you the and will spent legacy maintenance the on too to time accounts. waste can with between right, and the to long-term map turn, our the customers. sales growth customer win density servicing profitable development our of expansion. route behind cross-selling increased drive In

to call long positioning the over results that Before everyone us success investments remind the to sustainable turning Brett the over crucial the are discuss for term. our today are to I'll financial quarter. making in employees for our we

As the and there industry, is size our cross-selling to growth opportunity and on to unlock our in leverage business nation's provider tremendous opportunities in gain and largest capitalize share. our scale market

of in visit our improvement customers. will done while see mindset delivering client employee a whole confidence to it's our and branches, new culture of services and business. continued the that in we gives retention an translate strengthening the across sense me I our have As turnover added This best-in-class integrated work teamwork refreshing to level to

have While the instill to initial taken a done, in there disciplined and we take more more be steps the is strategy them. pride the we we to approach customers to successfully work servicing

that on the ability our We lie are increasingly confident significant opportunities capitalize in ahead. to

be Our fiscal year. breakthrough to on track a is XXXX

the customers it and truly about strong can who over earnings our we our that, reflect cash Brett? as and we flows employees, will I'll Brett, With enthusiasm value term our on think power, financial is discuss turn to to long results shareholders. when deliver our Our unbridled guidance. we and

you, Thank to Dale, everyone. good and morning

the strategy both on to what alongside a be of I performances This entire as reflect which is how evidenced year quarter our on margin the am breakout EBITDA segments. proud expansion BrightView as and company, we profitable work driving during to Let of continue year-to-date, me team pace start all is execute across results we our by together strong record for the growth. in both saying for

for transforming truly and the growth creation. are setting business long-term and this We profitable stage shareholder value

Moving to Slide the was of $XXX X. million year-over-year. quarter down Total revenue during X.X%

exiting flat. was However, when the lawns of revenue impact excluding the aggregator and business, essentially U.S.

businesses, mentioned. Dale revenue and was retention customer we employee recent our of the Notably, these the While turnover very our the within land and health remain improved market by of business. X underlying by encouraged impacted exit previously metrics, as trends

as recurring continued our of significant conversion and revamped backlog of contracts. high-quality increased these business to projects. This X.X% a strategy our projects Development presents future maintenance go-to-market result convert into The opportunity with

As enhances ability further development beyond. our results this grow, continues land cross-selling through to and 'XX drive opportunities fiscal to in

of the profitability details an $XXX $X EBITDA Total period. XX. reflects the Margin prior points quarter X% for third and the our an to Slide million, from impressive continued increase XXX of basis expanded year million adjusted and on more now Turning was million or versus continue ongoing than points EBITDA benefits adjusted by to decline lawn. we an profitability the XX in related was basis as margins initiatives. more Maintenance $X segment $X This EBITDA which U.S. efficiently. represents divestitures million, operate of the to improved little of a Adjusted

land reinvest best-in-class towards the The enabled this us an form service savings our year-over-year the majority quarter, to in labor reinvestment overhead QX. our during customers. $XX million for of and Additionally, levels increase expense frontline was of was approximate in

notable ultimately increase basis of XXX million, This accretive an segment, while reducing costs for is growth. third further quarter the a Development in XX% backlog EBITDA adjusted EBITDA the $XX to was the a In expanded our Adjusted of prior high-quality a result year. resulting margin compared conversion points.

segment, for third quarter expenses with made Corporate our substantial BrightView we decrease strategy. the corporate our as a One year-over-year further In progress saw

we in for expect for We BrightView. lead continue to evaluate to further to opportunities efficiencies totality centralization, which

now XX leverage. to to Let's review expenditures free flow, our cash and turn capital Slide

million our important year-to-date our fleet reduction compared to $XXX are year. timing a the largely CapEx and we committed generation note, prior year-over-year to robust million Our cash free in in reinvesting related. flow $XX was to is It's

us quarter. Year-to-date CapEx timing as $XX saw However, the net can impact third we was million, in

of we'll for in received deliveries pay them the quarter. approximately For million but vehicle we example, in QX, fourth $XX

X.X% we CapEx net to year, expect the around intensity or approximately revenue $XXX still of be For million.

Net leverage compared the and and came X.Xx the in of period. This quarter at debt, at significant X.Xx year improve the profitability reflects improve leverage reduction in in to a in business. prior end the lower liquidity our

for allows flexibility execution our strategy and profile financial of Our business. investment in profitable the ongoing further for leverage growth

turn Slide Let's to now XX.

structure last and Over of we the debt overall fundamentally the changed the have liquidity business. year,

and loan, securitization leverage in financial our what we Let we our me rates near-term upsized flexibility. significant We and maturities. interest quickly and debt create facility, have reduce and amended term remind of to extended no resulting reduced you AR done

capital. be million annual will over to to drive XX%. year every over or by We and liquidity stewards We of approximately that the good we by approximately reduced by our shareholder roughly by debt execute million. have reduced total last taken interest sheet, $XXX million steps fortify XX% value $XX increased and we These demonstrates expense we $XXX our opportunity balance

at on the Before our track business. commitments year, results end our the year-to-date XX low of our and with X our Slide our want X on this pleased snow as despite into to the moving reflect a we exiting months extremely we minute to are noncore to on I transform guidance, on of and businesses. take progress guide impact deliver to fiscal remain

pace have Fiscal our are and as on And as to plans changed be operating across year expand drive our we 'XX margins record we and result, a structure is growth. profitable a segments. all seeing encourage to compensation revamped collaboration

and guidance. we outlined flow free revenue, Slide Moving our We XX. to EBITDA cash where

While second midpoint we we raising we Additionally, our for And that for year. our this to narrowed the guidance of note flow guidance it's important time continue revenue hold free and to are the cash EBITDA. our ranges,

to our our in of revenue and year, billion we of fiscal ranges close the As the are to $X.XX $X.XX maintaining end billion we billion. on midpoint $X.XX tightening

assumes down, holding changed we from our which includes revenue and exiting the updated businesses. approximately The have guidance guidance are million the for the impact X% to roughly not land, following: $XX our noncore

development, for the end conversion of high For to to growth the X% are continues. backlog as X% X% our of robust our year we increasing of the assumption

to adjusted EBITDA. Moving

$XXX $XXX midpoint our million well this tightening $XXX expected expansion to as to million are margin all of segments. maintaining and million across We with range

we free improved flow cash of healthy operating performance. by generation expect For driven continuation cash flow, a

continued in and reflects reinvest momentum our outlook to growth. our broad-based drive Our profitable initiatives on the business

cash which now generate marks $XX of the we to guidance to consecutive the free increase second million flow range. expect to $XX Altogether, million,

the my business the it reiterate want are around hand call the the and has our to back excitement in impact and investments the I had on Before Dale, we over I culture. momentum to making

better By company. are who, customers, taking turn, care of better optimistic feel our care ever regarding taking our the than of I in our of employees more future

the on With back that, to call Dale XX. let Slide to wrap me up turn now

Brett. Thanks,

Before we key for I open the to remarks our recap call a provide on brief takeaways our from performance today. and want questions,

and margin EBITDA record year-to-date and First, QX generated with all across we segments. improvements

are retention. and customer are levels investments with best-in-class engagement employee engagement, in leading turnover to employee service positively customer Our increased momentum impacting coupled our

alignment share. development opportunities capture And and BrightView creates identify enhancements market targeted in to the One technology new The branches our maintenance. growth are cross-sell to opportunities efficiently enabling significant to

into objectives can achieve hear, highly our stakeholders. create strides a continue will of that confident for impressive and we will wide make on great our trajectory range deliver remain initiatives you to and value translate continue long-term on growth and As to an we milestones

will call the We open questions. for now

go William question Instructions] from Mulrooney Blair. with first [Operator our We'll Tim

I you're company a think was, be commercial be? ideally years at is that you today? Maintenance you'd rates that retention could where generating where What you talk us when Could several the in And customer ago promising. here BrightView seeing a landscaping do optimally. improvement retention you hoping very I So about I'm scaled on within guess, that like public, And customer to back little should where guess more give went rates business history business. the

Look, and Dale. is business said grow since taking in today most Great. in Tim, this day long and them the retaining customers we X, have term. is I can of important metric the -- the start with I'll profitably grow that. care so This #X we

realize But of the why Let why without me you this this level -- excited. high you'll let give give everybody give numbers. statistic a place when decimal specific history you of is I still giving this me we're history,

-- public. our company think We company XXXX, you integrate saw went it that retention If It the to if we when of at the live the as we XXXX, and deterioration saw deterioration had slight went number public. maybe give headwinds when back we properly. you much XX% a and you was that some done went greater public, work the company the with to was XXXX, went hit some original look a during the we was, In number. when M&A original will SX, we XXXX didn't

And level XXXX, it bottom. below original at go-live that hit in that X% bottom point, my the XXXX the little of it more deteriorated almost a a to over XX%. hit from was mind,

shared today what's we first year-to-date for point the what us, QX is Now in seen improvement. exciting. XXX X most through was we've my months And basis this

exciting retention. first going the This because went think for future be path you to just said to you, makes Tim our that an us year-over-year about the is so year we the see increase since is will customer If in are history I growth. XXXX what our this company public

matters. to the the this of of my metric there's seen more preaching can putting the , that some you'd shared that customer is talk like center I we've maybe if and been nothing This And and I've we've do. to, to that than open at everything about investment. the we And add -- to branches, Brett important metrics really

why add? Brett, So don't you

a it's great Yes, Tim, question.

momentum I about in and direction to couldn't business. mentioned are and our be need customers main focus the to think right going excited as get in term. CEO, more from Dale business he the focus long this main stepped I be the our in employees

the at in by the our long-term making year-over-year. And our focusing number business the look and taking customers. are in we our we on and the had SG&A employees decisions right had you of of we line we substantial care script, QX, mean our said if $XX savings I -- million

those as And Development overhead We quarter. our million allowed increasing even flexibility customer and still reinvestment projects, us QX. posted the produce into well things high-quality Every efficiencies level that back on as into they're to $XX both go frontline record around we the levels. service a margins labor with also Both saw reinvest reinvestment, was the job getting. back in and

the were manage we looking this long-term to business. decision So right at business

mentioned. this year still confident the focused metric customer that on shoots to we that growing that feel focused are profits. retention, as business still we'll on decisions. focused producing right year We're we're improve. the We're see starting public reinvestment, since customer And in this on but first long-term we green Dale be And going see those that will retention

percent said Tim, let you. I are understanding me have profitably. operating branches do don't happy whole have I is branches that take here's the retention second grow tell what -- and part and been in of customers, that to your at customer of XX-plus importance they They I question can think out is because level. team they Those what grow engaged you the employees, the the optimal? think customer. I've

target. should I think public the our level don't XX% of that goal, be

get maintenance to improvement revenue every of opportunity X% so land to of around an why creates us. $XX do work that we're some That's excited. to have million back And for We level.

I back past well XXXX. level that see going we went in with that XX% us public

goal unrealistic, want is I'd So to we're XXX% give to retention, goal I because customers. know, safety customer to I a with lose to that whether for no that's branches going number one don't for end to My want like like accidents my don't go acceptable, get any where really day.

That's guys. color, all great really

Just quick as really a follow-up.

a with new the extra XXX revenue. than I about margins to mean, -- How million we business? that is revenue. what extra point the than margin mentioned profile equates basis You $XX that different should improvement think associated in

less have to much is a new a getting than one. Obviously, you customer already acquire cost the

when our that the that in will absolutely, greater this will because we existing grow Tim, see So our you XXXX land organically, our and in we pushed existing margins. infrastructure business flow-through our through business, be leveraging incremental existing improve overhead than on margins

absolutely. So

if seen this be would on in year through I progress help mean went the future expansion 'XX, as continue we margin years. disappointed I very this didn't we've 'XX

So question. great it's a

suggesting basis the continuing, key improvement right be a I XXX allow lever guide us see will and last our to from is continue expand to and year's points results, that midpoint will this margins. those now over I think that of

is question Securities. from CJS with Bob Labick next Our

Congratulations in improvement on a time. the of period numbers strong such retention short

-- have to to bit. is a little wanted I dig I So you that. at start you about Slide the one obviously something driving themes of growth want and into And profitable looking X, talk

is maintenance about opportunity talked we've things the service reoccurring into or big of of work -- converting recurring the work. One development

either not in driving ahead differently past that? you you doing What's What do profitable was see unsuccessful effort And do forward? historically the the us? going it to an now? do the of or So what growth that are opportunity was how even BrightView this

Bob. question, Great

operationally, some start and a off term. long how let help So Brett of then I'll high math I'll and at through level talk it us the can

That firstly, So that breaking business X operating about a cultural our that's last getting structure, group. down people call, huge and maintenance on silos, geographic both was talked for have manage -- working our we together. our to new been leaders development our this groups change

the ongoing a teams that those cannot full brought basis. not past, other these maintenance. get almost communicating and In be are each cooperating now regularly were groups leverage motivated with on together of We the actually the daily

grow to the you a the the Our getting of continues we is business at Development ground. quarter. the as and growing, quality high you year quarter It we're work range growing and end and out is gave saw very to come the very, expected this in of last group

that. leverage Maintenance further under comment our let distance makes The every of why group. me collaboration transition size work sense probably Brett we're to And behind It feeling new on we're you growth about excited is math our our said, to by converting that org It's like that this scale to new to year structure. the ability and opportunity, and for so the it BrightView let you that that. take

as Yes, a stages we past you development conversion, siloed on way We math one we business now million the to at Bob, of as go I'll creates and $XXX,XXX about into example as the new a in again, just opportunity customers at Look, in contract. showed That's for just level a this slide an those showed about more and is operating the go-to-market converted seeing maintenance approach maintenance. think the deck structure opportunity again. to this and of I convert. of think a our was of conversion strategy holistic the the into leadership BrightView, such convert development we opportunities new deck as early that we're our we're development opportunity talking what $X the a really very recently

million $X.XX onetime than In the larger XX%. development $XXX the past, contracts, because into $X.XX about this maintenance projects from the of prize everyone It's every revenue less we nature, are call, Development dollar of is our development the around in And on than less just there, year. is dollar. converted on to really remind, development I size the to the XX% Bob, converts contracts maintenance reoccurring guided projects into maintenance guess, business of the on

kick way but We've structured XX% that, the untapped really that future. past, of converted million way maintenance, collaboration revenue months, right? opportunity million $X projects there's of that million rule convert call maintenance allowing that past to we contracts to in this are the like of in million. $XX will the less the than in than we're now general structured the next it off XX those So $XX for wasn't less in the something thumb of $XXX

size growth slide advantage couple see that with we some we pick we're 'XX land the are conversions. get million as our seeing about that the that, organic those confident early into one talked customer to retention that earlier, on where beginning that's prize the like really we we're deck, taking of in showed up. wins and of Again, And going feel we really $XX as beyond, to we

so can be if just that's Yes, and I And one quick and helpful may. very super exciting. Great. other obviously, powerful then Okay. question, --

In in Can that? terms fleet some give your that a going does as and are believe costs to the you program? of X-year next as mowers us roll employees. in where this dropping. seeing might you maybe How benefits in Can in the you it? highlighted one size I and the start into year? the when And and And you the equipment rental things we P&L? are benefits in even of we seeing well maintenance be the like do of Or program, a sense reinvestment benefits? is XX-year trucks start

Yes.

X Bob. there's it, look So at ways to

that process. I say started First, would we've

we mowers are starting -- a continue mowers, of received We pace. We're at some to upgrade the the regular trucks. mowers lot our getting on to new will we've and of a this replace year and older

right end In QX of fact, lot land the saw we a of at fleet QX. --

And received the take knew employee that the on the today, The depend bigger we QX, future as originally into expect of guide that's accurate. X.X% can Even we've impact reduced be can But of the a is we the maintenance, about great. on having fleet with residual customers employee. our started that are they revenue we with. they care that head values to mower still Bob,

employer them. like choice. have office. getting spend is started we their with The truck of truck their the new whole day employee I them. from truck to They that said in That become today. important whole a the X, conversation for is we And day

sure have that frontline. of on We to the make our better customers care touch take we people the

employees I result that. anybody that want better -- basis we've most great. metric, we bigger help miss program, the in They're we to That's than getting the on down they investments exciting. next The to new new want trucks, so taking our the of our let's transition, if can metric add turnover helping better over December, overall to they so the it, Brett, getting a we'll going since our Boots but customers our of better. had making X these frontline so points. long it's the of our -- care what's mowers. only the like X,XXX shared. you crews don't go important And through said, P&L service That's customers In not years, come can but us us But taking term. it's I comments. of care last call are any

you're No, for this mowers right then call, is last fleet we I new to enact timely dispose on, and we trucks sure department think mentioned, our on acquire, earnings we Bob, brought of to and leader how the and our strategy we make of with fleet a just really truly a fleet have. strategy maintain

we're now process fleet So of mowers. upgrading of that going age through the our and

those also of procurement brought going that is materials pieces leader procure of how procure better. better, how through to We a equipment to on

long-term timely of a think our So retention enacting them focus. We're customers. less not yes, expensive significant Those XX-plus the think in we're as to and of now it down. the as it's fleet and amount about customers a keeping It's breaks years margin fleet I -- and than maintenance maintaining disposing buying, are much you acquiring manner. business, customer acquire spending of strategy where new then

to rent forward. as margin take away. to us strategy, full to all That's that all improvement to going few move through years we going get new. a incremental We be that's to but going It's go have something

Our next Andy is Baird. with question Wittmann from

to, wanted the on I capital question build last from I person guess, the here.

$XX calculations year-to-date. -- are million million and my you $XX that's to great. and Your $XXX at up, by guide at here flow million is But free guys cash

there why what's going So is so Or Is quarter. that there's give drag a heavy I XQ. there? I'd burn considerably a is you in about CapEx a that Brett, thought maybe cash there's talk on big chance to is capital? fourth the or in And -- working cash

Yes, is I'd positioned sheet right invest our the business. now One, balance back in things, say Andy. to X so well

We lows. at leverage have all-time

all-time at liquidity highs. have We

at Our debt lows since going public. are all-time

So to back business. in the is so reinvest sheet the balance well positioned

you As $XX about to of on that we're free flow, CapEx. of million $XXX date, million cash think that's where

But right of million still around seeing get we are capital, to $XXX lot in the spend if $XX weeks A June, We July trucks we mainly in in, of CapEx. lot capital the end it would. we this guiding coming when worth, in at we paying about quicker, but of could end to of up the like trucks that hit of million significant amount we're for first a going CapEx. a received

adjust million put of right of And or number, if you would So cash in $XXX is $XXX cash us like more million QX for another to there, so pace just that $XX on that flow flow. million for capital. spend

biggest the of So sure in to QX And we're million still we item, as to to of in our going that's that have That's right impact continue fleet. versus a make drive going $XX that QX. us we're reinvesting CapEx, spend track about for sheet so down. what's but get now P&L could timing in the about to would that $XXX Andy, capital, to end million in data that's looking drag from in now QX, on the the we're and what's balance the

the you, then, of I I think And guess, took Dale, comp for at the looked job, Okay. you you kind plan. since

[ working ] weren't of too lots They plans. plan. you things comp said about You many said the comp -- there's

your mentioned prepared You in well. remarks as

comp just a little you incentives your I give as and changes maybe detail What can were levels changed that a more level change. the positions the those And by retention affected been have hindered those any one. would received bit how So employee helped importantly, and more they've what about on you included? talk at high on around or and it's you specifically this company as plan positions were impacted maybe even

it a lot of We Yes. the company. people up. you say, Good had differently I would being across question, brought Andy. compensated

we joined, people for perform. compensation I direction. in the when obviously that create That fact, same In discretionary the programs rowing XX our to had didn't over way reward everybody they different

a for branch grow to a when plan branch our they key. profitably. what's with We everybody it. shares That's that pool come So and simple at found the a they we way grow redid up in common profit-sharing

talked Brett And for use because headwind year-over-year know after me that budget. care profitable people so a year creates the the the that. their that, frontline make next make service our use important is we don't about they investments can of That increase our that about and customers customers to the all branches we program better. decision growth. We that making that saw, sure makes what those We $XX year will taking have on million in happiest impact

it's So everybody one program. on all getting about

corporate we have with our some we is, we key fact, program as that EBITDA corporate program company is now. X based public and have our a put the overall like difference growth. then and We program have companies, we In on into that programs diversity, XX% branch a basically and market EBITDA and metrics such our but safety, many use program, only as

aligned. goal So getting long about Andy, all branch, make working they're and It's about every at at term. sure the the all of profitable all common taking it's person everybody driving growth

at line. people do. very rewarded. in And going shrunk, the past. received to that's if could been Today, grow what who that level. program lowest well is they to Bonus were they dollars the we and want be budgeted budget shrink reward the distributed profit-sharing the It's even the could the by And they bottom

customers know it's been the their it. responsibly, run it's going very the they're business great take motivating to to question. it they their for run So received, grow But be of and well people care rewarded that and if and business,

Palm Capital Greg with from is Craig-Hallum question Group. next Our

levers, bit to return It's a know positive little dig progress core a alluded Congrats that indicators segment, continued we of pretty this retention potential, seems cross-selling to point. early. lots There's growth Brett, but into rates. of still there's clearly, in just like here. It that on more? the at Maintenance can I you lot the

for thanks in reacceleration, -- kind I longer-term how just to the love you you're -- initial some mean, the more of question. bit of these So get confident that a about do metrics more ultimate long I little on the color thinking term. Would potential. make mean maybe

me in, real Look, I jump think Greg, let quick. --

the each we the Brett of his not had grow quarter. progress cut opening believer We seen But says not think quarter. our not the we next is showing need to with way We just had commitment we core today are ended land an our to and ways. Brett we're unbelievable development, for need managing overhead, that business. in the now That I the many so lot. our we record employees business, Brett business, just QX because this a part the a made and in grow level. reinvest to business for is a

through So we today but I'll going out you're are positioned into we talk in position let is are next other sees that year going than level, 'XX, 'XX Brett he it were our a Greg. going and into. how we better any right, This about

So Brett, comment. I'll let you

That's that's Slide be I in QX. No, divestiture number the I a to our you $XX headwind X QX. million loans stepping to headwind Look, QX, business exit some agree. aggregator still think if at going in of of Yes. about ending million be U.S. going we're fully to that $XX look presentation, over about land a

land untapped it's I a of that going points next annualized standpoint, behind So were conversions, basis tell doing ancillary that year. can't call or growth opportunity. year, in are and every of million you $XX -- half on $XX June look, momentum March year, if retention such next Those the of of And of we customer retention metric. it of $XX you July of April so be next to next but growth. from million contract what year, XXX But year, of we're such million development Greg, the about think customer first

X If way that's XXX past. from in we up to the we've we even new never the to that's that than found to to XX% I growth opportunity executed XX% mean, less XX% incrementally this company tick overnight. significant if go that all from to don't start

that, is as and we said expanding think job our doing are coming produce. good business I continuing the a restructuring the margins which to year, and this such in cost really Dale business controls So from Development company

we half operating on long-term ever confident land get really the development into than to going as you off. where you that growth organic company the But about with with year, streamlined yes, to of the seeing, we're half today back land next the year. speed going exit think feel structure As next takes coupled growth, or that's it's this the back that next of be that year, coupled to getting growth more organic be

the I do to that those this investments metric, fleet big investments and down to maybe of employee it retention mean, what of how is that really reason metric going like. sure the around forward primary caused improve the I come that's Okay. Good. out. have guess I'm metric level? boots, the sounds Appreciate this frontline you continue to after it on sounds that. initial stood some even lapping then you've And the some that like, made And and

I Brett. starts Greg, it it starts over important how country. the been they flex are. start, out around our above people I'll my crews the when to we to that with every the those our stretch have I every have That's time have customers frontline importance But the They them. day, where And starts visit service doing to for understand the level. culture see at and that The is day person take traveled yard Look, way our they it I with. most crews. of start I'll transformed understand recognizing and day with work I that, it remind highest -- every every these branches. has leave they

culture. let that be sure XX is #X easier them Brett were is months That's jobs probably make a That But customers. to service That's quickest tell XX, we can where What's you. work word. We I their XX, ago. you... the change for I'll should turnover reduction the way to than causing complete our

add in those of sure the trucks taking to months to a like X safety, to would right Greg, things recognize quarter, where boot continue have employees, and XX-day to business. We back that to delivering first we that care I we cycle look this we like we of on at can comfortable continue and mowers, the health sure making long-term been every that, did year. right going continue our in will QX. just of lead the get And the importance shoes and just of No, the have strategy. work get long-term we program the them because this We we business new to make unwavering to be through -- but be decisions I executing unwavering making

so the shift guidance we're our decisions. goes to a we're annual public long-term company. through We quarterly cycle, But focused even guidance XX-day from right because recognize the on from that going

continue conversions We of easier increase be us have driving references In for development first. conversations, will price that employees sure to care driving customer turn, satisfaction, come to get maintenance, more enabled our to unwavering into customers, on making customers. that into more and satisfaction, they that new take those

So unwavering and sure that we just we chance we on get. got make to strategy be continue to execute every

from Capital. is Stevenson Our question Loop next from Jeffrey

on Congrats quarter. the nice

also, that expansion what included the coming margin drivers of to you And are margin improvement pricing well. off is the contracts of that believe development primary in worked the and during strong beginning in lower So is were development protections schedule ahead as be do work quarter? margin now

Okay.

let with Jeff, So me that. answer start the

You the saw the with me. Obama work we're doing Center President at

to we we forward. second to North in team, development continue development hands The does some we is got of have that down, We've sure of our across Our most skill make work as none. America. go amazing level group the

the of about I'll comment let partner the BrightView, by So Brett your But with customers margin to group best the do make to they're comment remember, for starts know let But choice margin being it business. the choosing choosing Brett, you of sure work. I'll they expansion. the on their

so or Look, X Yes, going We've say now this again quarters. to the said we business. for Jeff, great X quarter. about last feel this it we're optimistic question. that

year Our of year. Development essentially this through backlog and is end next time next the through QX out sold or

doesn't So to even we're this sold next if now sell point more business work between any then, that essentially and year.

that mean years a hyperinflation saw we protection grow then But I'd business this grow And there, in back, have that contract We a in was from go to and price continue revenue. standpoint, I and back margin margin. backlog to few XX% that that. business to operating around all XXXX, say you see didn't significant we right? EBITDA fixed opportunities we had

a we those ability now to be little place. more XXXX, pricing commodity of in backlog protections put the with to leading expansion bids the to business. them In in after after the price and And the XXXX, margin have, That's on in we're selective protections going price going started we're we bit all the with. have place, we amount

operations, which Specifically as as saw significantly saw We that in wins level our overhead that to efficient caused that margin well we business. lower costs really reducing expansion in led QX, job business. X margins increase in more

and points very essentially at end That's basis results for see QX. XX guide high we've X% why expect revenue last were to in raised similar we've around go twofold. margins the in our development to guide of the the year. of increased We We

Now in go we're XX.X% of us at XXX range that around this basis And for points back margins. gets EBITDA. really that

business Remember, 'XX, this was XX%. company this was at --

So still to 'XX the go and margin levels. there. back XXXX that with of level opportunity job room I in the continue get projects high-quality more coupled to feel results up get produce with in we're there's to business still selective that beyond to to those There's our at in XXXX, to efficiency restructuring like overhead bidding, being that more grow

likelihood and 'XX the M&A fiscal you then That's Dale, sheet on of given in types helpful, an And I moving of was for provide company and could Great. your forward? position very would be to Brett. leverage the hoping improved update balance acquisitions what attractive returning

We've restructuring this start can find doing good they want to did a who the changing within in own and very the my said, us at bit getting to company. people are business, M&A. ready, who culture us are looking close business Jeff, we branches M&A. to year being little deals we as is The paused support our this able all And the

Our it different when the drastically the is process to company than to M&A do struggled was businesses. integrate

join be joint who We buy to has We would operation To privilege. think to don't customers. that their companies teams add in market the our are us to shouldn't us tell BrightView. value a fit asking servicing they be our BrightView best to

on that probably that we greenfield We markets will in don't focus today. operate

look the will we're partners. doing businesses could like that using into not where at fold Tree we work perhaps we're today, We ancillary markets

in our to Do better going Absolutely. think I to our a we're him last versus today. that just XXXX, ways we we in position a think at on done it's to ready what look an comment job, where was partner worth means getting sit I'll where can I cash our customers. And sheet noting, that amazing go. quickly has balance because we're with return Brett be let position me year that We'll

Brett, let you [indiscernible] So that. I'll to

had year, million and we make liquidity Yes, of that $XXX of X a now, Look, or is million right with $XXX cash. X.Xx over that sit question. Last payroll. it's which $XX cash, great liquidity, essentially Jeff, we of million

does And M&A, One synergies, from thinking position. kind we such day, a will we're we back process. it to we -- not only to do out differently, Capital and this start a and to track that about build M&A. diligence going but get on how have look do the to how even fortify fund synergies is at Rock get board that cash have spot Rock, areas we of M&A, who how from to cash opportunities now partner into identify would say every our that One us of help process partners differently, So into a I when When have we better standpoint, we strategic

field managers about with think of bringing going diligence through us. the Rock, One process you you our to the support those of the about from So process opportunities changes think

So with to positioned are to have on balance bottoms we that M&A, been go execute. not the sheet we're liquidity the tops ready we a and do we've couple today you better and When down than up, ever execute. cash to

from with Goldman Tong Sachs. Our question next is George

into will You get over play next into back sense quarters. exactly couple the just of talked and about those out and business the of to the a where better I investments investments dedicating personnel. want timing

be can talk great. would little that, you a that more about If bit

Thanks, Good Yes. question. George.

is to our that customer employees sure I make quarters of sure it think our nobody cut get to service they're want pushing to that that to service. provided. when the make comes all we any We want customers

in majority the So do labor. that expense of to of hours at the cost form have enough sure service they comes making the of that

people feel But less that that lot we're to a with driving retention, what's time. because decrease seeing do employee like employee of don't that's them more turnover asking we're

the do our to can feel customer enough and required up the engagement they're They in And in our retention. It's employee numbers. service that and our like levels showing -- customer up they time allocated service it's showing in customers. our being to

Brett, that we're We put week service I'll It's So saw hours importantly, more investing in that. they people. But can did let the program. the to to, our making But need Everybody the it. customers. sure it's in labor boots you for they these that kind every of...

just quantify little George, Yes, bit to that further. a

half we QX. of Maintenance revenue our about you first If our half then our year. revenue in the -- in our think we our do revenue do about in the we about business, do X/X of QX X/X X/X of and and of

of right same over just our and our in isn't that first third we quarters quarter X did frontline in the million that is the -- as half first frontline guide to included labor. $XX invest as in the mark in $X around the labor, right? in the remarks that million labor big QX. we $XX around It's So invested we invested year, million prepared in frontline Actually, in said about we more this more script, business

mentioned, sure looking and to investments Dale as to those deserve sustainable those service we're incremental So again, being I customer that all year, the lead record they growth for that mean, a level service and we're making now that to we're investments improvement that that build. guiding while all now, to making they while long-term unwavering get will making on that they're paying guiding

the some of service. show able their how we that development have the dollars and the had So about with back savings to to momentum and we've business be into our in excited more flexibility overhead customer be we continues go those reinvest to couldn't

you're customer the some should customer overall going experience. past? service, to And labor forward and to that could how tackling of are better the some staff exactly some helpful. and That's the then examples with of the blocking with of help with respect practices doing improve the improve give What to and best hoping you compared

the make helps Unfortunately, get do we lot customers work you example the and related. our sure to something that of give a service. working employee weather is George, me let outside on, and we're it's Look, X morale of

customer us off don't still win So week on we're It to X-hour still the X to day the days XX hours. employees we We day us if short next service can the Friday. markets, Thursday, try provide week versus catch that our them rain work and work. It's in appreciate the Monday we a can't that, week, employees day have X during By the get up employees expect. XX-hour try the a term, X the for but to doing it, The with work take their doing through it. work to get makeup service that days. the We have just long We money costs they a customers appreciate cycle. term. during for

us know, just a to service It's different do culture ago. And X be to there. out for all let it be what able months is "Hey, the Friday." had not customer we in takes the it's your today. to on business We'll ranking on We're going than

way week. every a say It's the to said do sure that's great going can about it. I do we're making So we what it's we best example.

question next Moore from Our with is Jefferies. Stephanie

is Moore. This on Harold for Antor Stephanie

On about the talked tech side, optimization. I route know you

quantify guess, and side. savings around of helpful. the fuel be the percentage where that represents you're route idea that much if an us some on front, get that less how I Any seeing of what would goods? using cost fuel of comments from for could on optimization to and tech are the initiatives wanted other doing Just And of on you're you you

Yes.

let tool To that deployed he I our add our me off step branch. second at go-to-market that we've But better look, strategy. the Harold, efficiencies could with start think any comments branch the our So in then to is drive Brett and wants.

If under the to in have that after to you our people X year, market. the our team earlier force so remember operations sales go realigned we we together go working

servicing to, This customers. tool not spending too enough spending we time as shows have are enables the time much them that to driving identify maybe we're customers, we're where that and example remote

enables is profitability close today to go be term. we drive do have to customers we customer, remote so retain that this that and which are actually the to that what us after can customers long our geographically all So might technology

tool in the stages. This is early

But the is early Our business of them working in to better. their another with example is stages. branch our technology are still manage to able that branches their giving force allow that this we're sales be

tool everybody we year, the early we If our them this beginning business to a the was like wanted beginning branches. the they way to I in business we're in the said transform tools of we stage, divest, better. support U.S. sold give year. that that you the big better. when the remembers, the driver run lawns We're are to going We're said showing that going business to a them That that of can giving we so at them allows we manage their playbook their

why what That's to give that's don't tool in We grow. that did want we're branches -- divested that that investing because drive to this to I people we our business.

is tools this Now of looking that just example one we're at.

#X Our asset.

I off with started employees. call our is this, the

from process the and employees the implementing system them through a the HRIS the so them time we way cycle. recruit onboard all in selecting from are We annual of manage new those time we performance can the we

every allow to manage lot tool out that don't better go today, value that day. we create And technology a that we have leverage getting to unfortunately, us. And process. for a So huge do us of will to crews

that But will technology and manage use around. plan resources to in in leave, we're to to out system a still early that new allow We're they that, we to need we roll 'XX and implementing as drastically changing we're us the those days. crews shift

for getting are tough number qualitatively, I'll route optimization, but huge what I comes So progress Brett, add. you making this it's we will quantitative you a tell aligned. give you people let in to from me that But

But on is even our offloading X.X% optimization math. well, There there. mention Yes. all for trucks to equipment, wear the will tear right, and some the us, is about I our that our day, you that cost efficiencies every wear million mentioned. it one on opportunity fuel the of mean Dale that more area, add call from so of fuel mean all and route absolutely I unloading do if fuel not adds is $XX-or-so of Harold, the as as and crews, trucks, tear efficiency is our revenue

example miles, on that all get in and stuff When we pack to the up truck presentation. drive a miles get in XX is gave the and you which the have and XX you is area take the all any minutes, or San or York could time. in New XX X.X miles might But country wasted XX that hours. metropolitan of middle major Francisco take

can labor cetera. costs, our equip and in drive to with we more data P&L going the sales of this efficiencies, cetera, force and efficiencies and that throughout type our the repair we're route see in jobs So optimization, or maintenance fuel et efficiencies et

future, it's So driving we be to as get the going great P&L. the We big unlock a that is feel question. throughout efficiencies like a into really

guys to about And considerable has on around revenue you for a making I SG&A of have XX% but guess historically, as progress. most percentage XX% part, the been

you to business you this think about profitable in share. do on think the when guess, as outlook. a I front the SG&A long-term business So execute growth long-term Where can continue you run the

was Look, proud silos had. we been remove the because Harold, overhead we've of to it created I'm of business able that all of redundant lot a and the start, those I'll some from

to our in going are sales invest force. We

that adding team focused our is We our and are go-to-market resources. on to speak, grow sales going as sales we force

grow As customers are we and ability sales can premium us turn service that loose we get to business. level, crews, our at our gets this so goes that more to going customers we force out a there tools, our

you taken to in reduction, I'll going the make help be needed But new us So we we're thoughts... is was to out made give overhead great let overhead to find we've The investment the Brett, progress. customers. going people

said I right it think you on.

And many creating of well things guide P&L, I business. as if the each investments specific they I to be the going back and but it, not to in so moves X against we're think, centralizing as going efficiencies. on the business. long-term to right to now are the making resources other, line tough areas because -- those it'd but it's working even different are Harold, guide was right a we're do to

the it those centralization goes use some maybe me think committing only call SG&A not to going levels, thing basis stays gain is, year, be saying, reinvest more which whether to to to expansion, are points bit it, into could we're confident the than of margin XX.X%, in what to focused I And term were whether that whether to goes we efficiencies it back range. back well, we're to you a which is as growth. getting Harold next XXX to but XX% little gives That's and year be we're IPO long and those that is key. XX.X% by going be efficiencies this on, XX%, the those, total on less, expansion, at going EBITDA or margin that confident

Thank no you We much. have very currently further questions.

closing So I will hand back any for over remarks. Dale to

of I transformation am can our by level as have clear. and record happy operator. you, Thank a that we the results, term, tell, remain conviction excited, BrightView. I'll objectives regarding extremely of are with you our growing close reiterating Long QX extremely

shareholder are We and profitably committed meaningful operator. creating One BrightView, Thank you, becoming value. growing to

can now call. the You end

joining. today's call. you for Thank concludes This very everyone much,

You may lines. your disconnect now