Brightview Holdings Inc (NYSE: BV) stock rose over 12% on November 28th, 2018 pre market session. For fiscal 2018, total revenue increased 5.7% to $2,353.6 million supported by growth in both the Maintenance Services Segment and Development Services Segment revenues. Total Adjusted EBITDA was $300.1 million, up 12.6% versus the prior year, driven by higher revenues, improved profitability in the Maintenance Services Segment and efficiencies captured in SG&A
BV in the fourth quarter of FY 18 has reported the adjusted earnings per share of 35 cents, beating the analysts’ estimates for the adjusted earnings per share of 28 cents, as per Zacks Investment Research. The company had reported the adjusted revenue growth of 2.6 percent to $581.8 million in the fourth quarter of FY 18, missing the analysts’ estimates for revenue of $584.6 million. For the fourth quarter fiscal 2018, revenue in the Maintenance Services Segment rose 3.5% to $433.4 million. Landscape Maintenance Services revenue rose 3.7%, driving the segment’s revenue growth. Acquisitions added 7.7% but were partially offset by a 4.0% negative revenue contribution from commercial landscaping. Within this decline, underlying commercial landscaping contributed 1.5% to growth with offsetting impacts of 2.9%, from a difficult comparison with the revenue related to Hurricane Irma clean-up in the fourth quarter of 2017, and 2.6%, from Managed Exits as the Company strategically reduced the number of less profitable accounts established in previous years. Adjusted EBITDA for the Maintenance Services Segment in the quarter increased 3.5% to $79.6 million, with the Adjusted EBITDA margin remaining flat versus the prior year quarter.
For FY19, BV expects total Revenue to be between $2,400 million and $2,470 million, Adjusted EBITDA to be between $310 million and $318 million, Managed Exits of $15 to $25 million in revenue, declining over the course of the fiscal year and Net Capital Expenditures of approximately 2.5% of revenue. Although the first quarter of 2019 faces a comparison of $17.5 million in hurricane clean-up revenue in the prior-year first quarter (including $4.0 million from acquired businesses), underlying trends in the industry are expected to remain positive for the 2019 fiscal year, supporting topline growth in the Company’s existing footprint as well as a robust acquisition pipeline for the year. BrightView plans to continue its strategic approach to pricing, service enhancements, customer retention, new business development and “strong on strong” acquisitions. Finally, the Company will work to identify additional opportunities to leverage its SG&A and Corporate expenses in order to further expand operating margins.