BrightView Holdings (NYSE: BV) reported Q3 EPS of $0.42, $0.09 better than the analyst estimate of $0.33. Revenue for the quarter came in at $608.1 million versus the consensus estimate of $620.94 million.

Third Quarter Fiscal 2020 Highlights

• Net cash provided by operating activities of $76.2 million, an increase of 71.2% compared to $44.5 million in the prior year.
• Free Cash Flow of $66.5 million, an increase of 385.4% compared to prior year of $13.7 million.
• Total revenue of $608.1 million; a 7.5% decrease compared to prior year of $657.2 million.
• Maintenance revenue of $460.0 million; a 6.5% decrease compared to prior year of $492.1 million;
  • Land revenue of $454.9 million; 6.5% decrease compared to prior year of $486.4 million.
• Development revenue of $149.1 million, a 10.3% 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%, compared to Net Income of $31.7 million, or $0.31 per share, and a net income margin of 4.8%, in the prior year.
• Adjusted EBITDA of $91.0 million and Adjusted EBITDA margin of 15.0%, compared to Adjusted EBITDA of $101.9 million and Adjusted EBITDA margin of 15.5% in the prior year.

“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 on-going focus on working capital and reducing capital expenditures,” said Andrew Masterman, BrightView President and Chief Executive Officer. “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.”

GUIDANCE:

BrightView Holdings sees Q4 2020 revenue of $585-610 million, versus the consensus of $618.5 million.

For earnings history and earnings-related data on BrightView Holdings (BV) click here.