Brightview Holdings Inc (BV) 2023 Q4 法說會逐字稿

Hello, everyone, and welcome to the BrightView Fourth Quarter Fiscal Year 2023 Earnings Call. My name is Bruno. I'll be operating your call today. (Operator Instructions).

大家好，歡迎參加 BrightView 2023 財年第四季財報電話會議。我的名字是布魯諾。今天我將接聽您的電話。 （操作員說明）。

I'll now hand over to your host, Chris Stoczko. Please go ahead.

我現在將會議交給主持人克里斯·斯托茨科 (Chris Stoczko)。請繼續。

Good morning and thank you for joining BrightView's Fourth Quarter and Full Year 2023 Earnings Call.

早安，感謝您參加 BrightView 的 2023 年第四季和全年財報電話會議。

Dale Asplund, BrightView's President and Chief Executive Officer; and Brett Urban, Chief Financial Officer are on this call. I will now refer you to Slide 2 of the presentation, which can also be found on our Investor Relation Website and which contains our safe harbor disclaimer. This call may include forward-looking statements that are subject to certain risks and uncertainties. In addition, during this call we will refer to certain non-GAAP financial measures. Please see our 8-K issued earlier this morning for reconciliation of these non-GAAP financial measures. I will now turn the call over to Dale.

BrightView 總裁兼執行長 Dale Asplund；財務長布雷特·厄本 (Brett Urban) 出席了本次電話會議。現在我將向您推薦簡報的投影片 2，該投影片也可以在我們的投資者關係網站上找到，其中包含我們的安全港免責聲明。本次電話會議可能包含前瞻性陳述，這些陳述受到某些風險和不確定性的影響。此外，在本次電話會議中，我們將提及某些非公認會計準則財務指標。請參閱我們今天早上早些時候發布的 8-K，以了解這些非 GAAP 財務指標的調整。我現在將把電話轉給戴爾。

Thank you, Chris and good morning, everyone. I'm honored to join my first earnings call since the appointment as BrightView CEO in October.

謝謝克里斯，大家早安。我很榮幸參加自 10 月被任命為 BrightView 執行長以來的第一次財報電話會議。

First, I want to thank all our employees which (inaudible) this past year. I'm proud to be joining a team that is motivated and committed to continuous improvement. In my first 45 days, I spent a lot of time in the field and at the branches, meeting employees and customers. Submerging myself in all aspects to BrightView's (inaudible) there's a great (inaudible) interactions as they'll have opportunities to listen, to learn and to the build relationships. I'll look forward to meeting many more of our associates and partners in weeks and months to come.

首先，我要感謝過去一年（聽不清楚）的所有員工。我很自豪能夠加入一個充滿動力並致力於持續改進的團隊。在我的前 45 天裡，我花了很多時間在現場和分支機構，會見員工和客戶。讓我自己沉浸在 BrightView 的各個方面（聽不清楚），這是一種很棒的（聽不清楚）互動，因為他們將有機會傾聽、學習和建立關係。我期待在未來幾週和幾個月內見到更多我們的同事和合作夥伴。

I will begin today's call on Slide 4 by sharing some initial [optimization] about the areas we're focused on and some of my initial (inaudible). I will then provide some highlights for fiscal year 2023 before handing over Brett to discuss our results in more detail and provide our initial outlook for fiscal 2024.

我將透過投影片 4 開始今天的電話會議，分享一些關於我們關注的領域的初步[優化]以及我的一些初步（聽不清楚）。然後，我將介紹 2023 財年的一些要點，然後讓 Brett 更詳細地討論我們的結果，並提供我們對 2024 財年的初步展望。

A vague background. I spent the past 25 years at United Rentals, the world's largest equipment rental company. In my most recent role as COO, I was focused on relentless execution and delivering exceptional customer experience. This was accomplished by prioritizing our employees so they are equipped with appropriate resources to serve our [company]. All while leveraging the size and scale of the business. By doing this, we can increase the shareholder value significantly.

背景模糊。過去 25 年我在世界最大的設備租賃公司 United Rentals 工作。在我最近擔任營運長期間，我專注於不懈的執行和提供卓越的客戶體驗。這是透過優先考慮我們的員工來實現的，以便他們配備適當的資源來為我們的[公司]服務。同時利用業務的規模和規模。透過這樣做，我們可以顯著增加股東價值。

What attracted me to BrightView was the (inaudible) confident employees through their next stage of profitable growth and operational improvement by leveraging my experience (inaudible). At BrightView we have a tremendous opportunity network to become great operators of our business and partner to our customers. In order to capitalize on these opportunities and send BrightView into the next stage of growth we must invest in our employees and prioritizing our relationship with our customers while delivering (inaudible) execution and service. We will do this by everyone working together to operate as One BrightView.

BrightView 吸引我的是（聽不清楚）員工透過利用我的經驗（聽不清楚）來實現下一階段的獲利成長和營運改進，充滿信心。在 BrightView，我們擁有龐大的機會網絡，可以成為我們業務的優秀營運商和客戶的合作夥伴。為了利用這些機會並使 BrightView 進入下一個成長階段，我們必須投資我們的員工並優先考慮我們與客戶的關係，同時提供（聽不清楚）執行和服務。我們將透過每個人共同努力以 One BrightView 的方式來實現這一目標。

As CEO, I am focused on establishing a unified BrightView, a company that prioritizes its employees, the customer and a winning culture. This renewed commitment and investment in the business will be critical to our ability to drive profitable growth. It will also allow us to leverage our vast branch network to drive operational efficiency. Another key area of focus would be the strategic allocation of capital, ensuring that our investments in the business both organic and inorganic, are creating value and generating attractive returns for our stakeholders.

身為首席執行官，我致力於建立一個統一的 BrightView，一家優先考慮員工、客戶和致勝文化的公司。這種對業務的新承諾和投資對於我們推動獲利成長的能力至關重要。它還將使我們能夠利用龐大的分支機構網路來提高營運效率。另一個重點關注領域是資本的策略配置，確保我們對有機和無機業務的投資為我們的利害關係人創造價值並產生有吸引力的回報。

Moving to Slide 5. The initial goal of operating as One BrightView is to become the employer of choice. We do that by putting our employees first and by delivering a culture where people seek to achieve individual and group success. By prioritizing our employees, we are ensuring that they have the capabilities and tools required to do their jobs at a high level. Doing this materially impacts the level of service provided to customers and leads to an exceptional customer experience.

前往投影片 5。作為 One BrightView 營運的最初目標是成為首選雇主。為此，我們將員工放在第一位，並創造一種人們尋求個人和團體成功的文化。透過優先考慮我們的員工，我們確保他們擁有高水準完成工作所需的能力和工具。這樣做會極大地影響為客戶提供的服務水平，並帶來卓越的客戶體驗。

This includes investing in employee safety, fleet and systems, all of which will allow us to better serve our customers. By making these investments in our employees, and in turn, employees taking care of our customers, this will allow us to become the partner of choice in our industry. These investments are aimed at improving customer retention and accelerating profitable growth. Creating a customer-centric focus for our employees is critical to our objective under One BrightView.

這包括對員工安全、車隊和系統的投資，所有這些都將使我們能夠更好地服務客戶。透過對我們的員工進行這些投資，反過來，員工也會照顧我們的客戶，這將使我們成為業界的首選合作夥伴。這些投資旨在提高客戶保留率並加速獲利成長。為我們的員工創造以客戶為中心的焦點對於我們在 One BrightView 下實現的目標至關重要。

As you can tell, we are highly focused and committed to One BrightView and building a stronger foundation. There is a lot of work ahead of us on these initiatives, but I firmly believe these are the areas we must prioritize. Once we have established this foundation, we will have earned the right to expand strategically.

如您所見，我們高度專注並致力於 One BrightView 並建立更堅實的基礎。在這些舉措上，我們還有很多工作要做，但我堅信這些是我們必須優先考慮的領域。一旦奠定了這個基礎，我們就獲得了策略擴張的權利。

M&A can be a powerful lever for growth and generating meaningful returns on capital only when it fits strategically, culturally and financially. And in order to have that fit, we must be a better owner that accelerates revenue, increases operational efficiencies and create significant synergies, so that 1 plus 1 equals 3. As One BrightView, we have to be the best of what we do for our customers, and I'm confident that we can deliver on these goals.

只有在策略、文化和財務上都適合時，併購才能成為成長的強大槓桿，並產生有意義的資本回報。為了實現這種契合，我們必須成為更好的所有者，加速收入成長、提高營運效率並創造顯著的協同效應，從而使1 加1 等於3。作為One BrightView，我們必須為我們所做的一切做到最好。客戶，我相信我們能夠實現這些目標。

Now moving to our results. As you can see on Slide 6, fiscal 2023 was a successful year for BrightView. As we achieved solid execution and deliver results in line with expectations. During the year, we focused on targeting profitable growth, driving consistent EBITDA margin expansion and improving our cash flow. We were pleased with the results for the year considering the challenging economic environment, consisting of elevated inflation, higher interest rates and a winter with very little snow. Despite these challenges, we executed our plan for the year. Additionally, during the year, we achieved a transformational reduction in our leverage, driven by the strategic investment from One Rock Capital and our improved profitability.

現在轉向我們的結果。正如您在投影片 6 中看到的，2023 財年對 BrightView 來說是成功的一年。我們取得了紮實的執行力並交付了符合預期的結果。這一年裡，我們專注於實現獲利成長，推動 EBITDA 利潤率持續擴張並改善現金流。考慮到充滿挑戰的經濟環境，包括通膨上升、利率上升和冬季降雪很少，我們對今年的業績感到滿意。儘管面臨這些挑戰，我們還是執行了今年的計畫。此外，在同石資本策略投資和獲利能力提升的推動下，年內我們實現了槓桿率的轉型性降低。

As shown on Slide 7, prior to One Rock, our leverage profile and interest expense payments were restricting our growth and cash flow and reducing the overall financial flexibility of the business. By partnering with One Rock, we were able to use those proceeds to pay down debt, resulting in a significant reduction in our leverage and interest expense. This added flexibility allows us to invest in the business with an emphasis on profitable growth. In addition to the financial benefits of this partnership, we are also leveraging One Rock's operational expertise, including previous experience in our industry which will allow us to accelerate the execution of our strategy. The investment also reflects a strong vote of confidence in BrightView's strategy and potential to drive profitable growth for years to come.

如投影片 7 所示，在 One Rock 之前，我們的槓桿狀況和利息支出限制了我們的成長和現金流，並降低了企業的整體財務靈活性。透過與 One Rock 合作，我們能夠利用這些收益來償還債務，從而大幅減少我們的槓桿率和利息支出。這種增加的靈活性使我們能夠以獲利成長為重點投資業務。除了這種合作夥伴關係帶來的經濟利益外，我們還利用 One Rock 的營運專業知識，包括我們行業的先前經驗，這將使我們能夠加快策略的執行。這項投資也反映出人們對 BrightView 的策略和未來幾年推動獲利成長的潛力投下了強烈的信任票。

With that, I'll turn it over to Brett, who will discuss our financial performance and outlook in more detail. Brett?

接下來，我會將其交給布雷特，他將更詳細地討論我們的財務表現和前景。布雷特？

Thank you, Dale, and good morning to everyone. I'll start on Slide 9. I am pleased to report on another solid quarter. We grew total revenues by 2.8%, increased EBITDA by $10 million, delivered margin expansion in all segments and generated significantly more cash despite increased interest expense. Our ability to achieve these results reflects BrightView's attractive business model and gives us confidence as we pursue new opportunities to drive further financial and operational improvement.

謝謝你，戴爾，祝大家早安。我將從幻燈片 9 開始。我很高興報告又一個堅實的季度。儘管利息支出增加，但我們的總收入增長了 2.8%，EBITDA 增加了 1000 萬美元，所有部門的利潤率均實現了增長，並產生了顯著增加的現金。我們實現這些成果的能力反映了 BrightView 有吸引力的商業模式，並讓我們在尋求新機會以進一步推動財務和營運改善時充滿信心。

Moving to Slide 10. Total revenue during the quarter increased 2.8% year-over-year to $744 million reflecting 2.1% year-over-year organic revenue growth. Revenue during the quarter benefited from demand in our core businesses, favorable pricing and M&A contribution. In our Maintenance business, total revenue decreased 1.5% to $521 million as we continue to pursue higher quality contracts which reflects our relentless focus on profitable growth and margin expansion as we discussed last quarter. We grew our Development business, a robust 13.5% organically, due to our ability to convert our strong backlog into higher project volumes. We remain very optimistic about the pipeline of projects and the momentum of our Development business headed into fiscal '24.

轉向投影片 10。本季總營收年增 2.8%，達到 7.44 億美元，有機收入年增 2.1%。本季的收入受益於我們核心業務的需求、有利的定價和併購貢獻。在我們的維護業務中，由於我們繼續追求更高品質的合同，總收入下降了 1.5% 至 5.21 億美元，這反映了我們對盈利增長和利潤擴張的不懈關注，正如我們上季度討論的那樣。由於我們有能力將大量的積壓訂單轉化為更高的項目量，我們的開發業務有機成長了 13.5%。我們對進入 24 財年的專案儲備和開發業務的勢頭仍然非常樂觀。

Turning now to profitability and the details on Slide 11. Total adjusted EBITDA for the fourth quarter was $101.6 million, an increase of $10 million driven by both land and development growth, margin expansion in all segments and a strategic asset sale, which came in above expectations. In the Maintenance segment, total adjusted EBITDA of $81.7 million was up slightly year-over-year. This resulted in margin expansion of 30 basis points and marks the fourth consecutive quarter of margin expansion in our core land business. As I mentioned, our focus on higher quality contracts led to a modest near-term impact on land revenue but as evidenced throughout this year, this strategy led to continued profitability growth and margin expansion.

現在轉向幻燈片 11 上的盈利能力和詳細信息。第四季度調整後 EBITDA 總額為 1.016 億美元，由於土地和開發增長、所有部門的利潤擴張以及戰略資產出售的推動，增加了 1,000 萬美元。期望。在維修部門，調整後 EBITDA 總額為 8,170 萬美元，較去年同期略有成長。這導致利潤率擴大了 30 個基點，標誌著我們核心土地業務的利潤率連續第四個季度擴大。正如我所提到的，我們對更高品質合約的關注導致了對土地收入的短期影響不大，但正如今年全年所證明的那樣，這一策略導致了盈利能力的持續增長和利潤率的擴大。

In the Development segment, adjusted EBITDA for the fourth quarter was $29.1 million, an increase of approximately 14% compared to the prior year. Adjusted EBITDA margin expanded 10 basis points, which marks our fifth consecutive quarter of Development margin expansion and we expect this trend to continue as we head into fiscal '24. As part of our ongoing initiatives, we executed a strategic sale of our corporate airplane that generated both cash and future cost savings. This sale benefited profitability and cash flow, which allowed us to immediately reinvest back into the business by replacing some of our oldest [construction] vehicles.

在開發部門，第四季度調整後 EBITDA 為 2,910 萬美元，比上年增長約 14%。調整後的 EBITDA 利潤率擴大了 10 個基點，這標誌著我們的開發利潤率連續第五個季度擴大，我們預計這一趨勢將在進入 24 財年時繼續下去。作為我們持續計劃的一部分，我們對公務機進行了策略性銷售，既節省了現金，也節省了未來的成本。此次出售有利於盈利能力和現金流，使我們能夠透過更換一些最舊的[建築]車輛立即重新投資回業務。

Important to note, in our previous guidance, we assumed an approximate $4 million EBITDA benefit from selling the airplane in our corporate segment. Through favorable negotiations, we were able to secure an approximate $7 million benefit to EBITDA on the sale of the asset. Lastly, the sale had both a positive impact on our corporate and environmental initiatives.

值得注意的是，在我們先前的指導中，我們假設在我們的企業部門銷售飛機可以帶來約 400 萬美元的 EBITDA 收益。透過有利的談判，我們在出售該資產時獲得了約 700 萬美元的 EBITDA 收益。最後，此次出售對我們的企業和環境舉措都產生了正面影響。

Turning to Slide 12. I'll provide you with our full fiscal year '23 results. Total revenue for the year was $2.82 billion, which represented a 1.5% increase compared to the prior year. Total land services increased 1.7% to $1.86 billion, reflecting healthy growth despite the contraction in our noncore business. Additionally, snow represented a year-over-year headwind of $47 million due to the absence of material snowfall. Revenue in the Development segment increased a meaningful 8.5% and with a robust 6.8% organic growth for the full year.

轉向投影片 12。我將為您提供 23 財年的完整業績。全年總收入為28.2億美元，較上年增長1.5%。陸域服務總額成長 1.7%，達到 18.6 億美元，儘管非核心業務收縮，但仍呈現健康成長。此外，由於沒有實質降雪，降雪帶來的同比逆風達 4700 萬美元。開發部門的收入顯著成長了 8.5%，全年有機成長強勁 6.8%。

As you can see on Slide 13, we delivered EBITDA growth and margin expansion throughout the year. We're committed to growing profitability and expanding margins in fiscal '23, and we are proud to report that we delivered on these commitments. I am extremely delighted with the team's ability to execute this growth and margin expanding despite the challenging operating environment.

正如您在幻燈片 13 中看到的，我們全年實現了 EBITDA 成長和利潤率擴張。我們致力於在 23 財年提高盈利能力並擴大利潤率，我們很自豪地報告我們兌現了這些承諾。儘管營運環境充滿挑戰，但我對團隊執行成長和利潤擴大的能力感到非常高興。

Let's now turn to Slide 14 to review our free cash flow, debt and capital expenditures for the year. We committed to improving our cash flow in fiscal '23 and deliver upon this commitment. This improvement was a result of higher profitability, a strategic reduction to capital expenditures, favorable working capital and benefits from our tax planning which more than offset the higher cash interest expense in the year.

現在讓我們轉向投影片 14，回顧我們今年的自由現金流、債務和資本支出。我們承諾在 23 財年改善現金流並兌現這項承諾。這項改善是由於更高的獲利能力、策略性減少資本支出、有利的營運資金以及稅務規劃帶來的好處，這些都抵消了當年較高的現金利息支出。

The reduction in capital expenditures reflects the resiliency and flexibility of our balance sheet in the year with low snowfall. For the full year, we generated $80 million in free cash flow compared to $7 million last year. These levels of cash generation reflecting improvements in our business and laid the foundation for continued momentum going into fiscal '24.

資本支出的減少反映了我們的資產負債表在降雪量較少的一年中的彈性和靈活性。全年我們產生了 8000 萬美元的自由現金流，而去年為 700 萬美元。這些現金產生水準反映了我們業務的改善，並為進入 24 財年的持續成長動能奠定了基礎。

In addition to the improved cash levels in the business, we announced a strategic investment from One Rock Capital that contributed to a significant reduction of our leverage profile. This investment resulted in leverage coming down by approximately 2 turns and reaching a historical low of 2.9x to the 4.8x in the prior year. This strengthens our balance sheet and provides us with flexibility and the opportunity to reinvest in the business. specifically towards customer and employee satisfaction, which as Dale mentioned, will lead to profitable growth and operational improvement.

除了業務現金水準有所改善外，我們還宣布了 One Rock Capital 的一項策略投資，這有助於大幅降低我們的槓桿率。這項投資導致槓桿率下降約 2 倍，並達到 2.9 倍的歷史低點，至前一年的 4.8 倍。這增強了我們的資產負債表，並為我們提供了靈活性和再投資業務的機會。特別是客戶和員工滿意度，正如戴爾所提到的，這將帶來利潤成長和營運改善。

Let's now turn to Slide 15 to provide an update on Project Liberty. As a refresher on our Q3 earnings call, we announced an expanded strategic review of our business beyond just cost initiatives. These initiatives include areas such as branch performance, customer growth and retention, procurement and capital allocation with a collective goal of expanding profitable growth and generating higher returns. We have seen the early successes of these initiatives reflected in our EBITDA margin and cash flow performance in the back half of the year.

現在讓我們轉向投影片 15，提供有關 Project Liberty 的最新資訊。作為第三季財報電話會議的回顧，我們宣布對我們的業務進行擴大的策略審查，而不僅僅是成本計劃。這些舉措包括分支機構績效、客戶成長和保留、採購和資本配置等領域，其共同目標是擴大獲利成長並產生更高的回報。我們已經看到這些措施的早期成功反映在我們下半年的 EBITDA 利潤率和現金流表現。

Under Dale's leadership, Project Liberty continues to take shape across the business and has aligned with our goal of becoming a collaborative and unified One BrightView. Branch performance will be driven by investing in our employees, while also aligning sales and operations to better service our customers. Profitable growth, led by new sales and improved customer retention will be driven by prioritizing the customer and aligning incentives for our employees. We will continue to focus on high-quality business strategic pricing efforts and deliberate capital allocation, underscoring our prioritization of profitable growth. Taken together, continuous execution of these initiatives will create higher returns and lead to shareholder value.

在 Dale 的領導下，Project Liberty 在整個企業中不斷成形，並與我們成為協作和統一的 One BrightView 的目標保持一致。分行業績將透過對員工的投資來推動，同時調整銷售和營運以更好地服務客戶。以新銷售和提高客戶留任率為主導的獲利成長將透過優先考慮客戶並調整對員工的激勵措施來推動。我們將繼續專注於高品質的業務策略定價工作和審慎的資本配置，強調我們優先考慮獲利成長。總而言之，持續執行這些措施將創造更高的回報並帶來股東價值。

Let's now turn to Slide 16 to review our outlook for fiscal '24. Profitable growth will continue to be our guiding factor and focus. We are now providing full year guidance for fiscal '24 with expected total revenue of $2.825 billion to $2.975 billion, reflecting a range of relatively to flat 5% revenue growth. This assumes the following: in Maintenance, we expect our focus on profitable growth to continue to have a near-term impact, while we remain encouraged by the underlying health of the market and recent trends within our business. For snow, our fiscal '24 guidance range assumes flat at the low end and a return to 5-year historical averages at the high end. And for Development, the conversion of our strong backlog projects will continue to benefit revenue and margin growth.

現在讓我們轉向投影片 16 來回顧我們對 24 財年的展望。獲利成長將繼續成為我們的指導因素和重點。我們現在提供 24 財年的全年指引，預計總收入為 28.25 億美元至 29.75 億美元，反映了相對持平的 5% 收入成長範圍。這是假設如下：在維護方面，我們預期對獲利成長的關注將繼續產生短期影響，同時我們仍然對市場的基本健康狀況和我們業務的最新趨勢感到鼓舞。對於降雪，我們的 24 財年指導範圍假設低端持平，高端回歸 5 年歷史平均。對於開發而言，我們強大的積壓項目的轉換將繼續有利於收入和利潤的成長。

Moving to adjusted EBITDA. One BrightView will be the key driver to growing profit and expanding our margins. In fiscal '24, we expect margin expansion in both Maintenance and Development segments, benefiting from One BrightView key initiatives and disciplined management of the business. We expect these improvements to generate margin expansion of 40 to 80 basis points and adjusted EBITDA of $310 million to $340 million. In fiscal '24, we expect a continuation of healthy cash flow generation driven by profitable growth and improved operating performance.

轉向調整後的 EBITDA。 One BrightView 將成為增加利潤和擴大利潤的關鍵驅動力。在 24 財年，我們預期維護和開發領域的利潤率都會擴大，受益於 One BrightView 關鍵措施和嚴格的業務管理。我們預計這些改進將使利潤率擴大 4,000 至 80 個基點，調整後 EBITDA 達到 3.1 億美元至 3.4 億美元。在 24 財年，我們預期在獲利成長和經營績效改善的推動下，現金流將持續健康發展。

Our outlook on Slide 17, reflects our commitment to growth as we expect an increase in capital intensity to support our strategy. These higher levels are consistent with historical requirements to support the business and reflect a more normal snowfall this year. Contributions from reduced interest expense will be managed alongside the ongoing requirements to optimize the business. Altogether, we expect to generate free cash flow of $45 million to $75 million, supporting the financial flexibility we maintain today, while enhancing our ability to generate future profitable growth.

我們對投影片 17 的展望反映了我們對成長的承諾，因為我們預期資本密集度會增加以支持我們的策略。這些較高的水平符合支持業務的歷史要求，並反映出今年降雪更為正常。利息支出減少帶來的貢獻將與優化業務的持續需求一起管理。總的來說，我們預計將產生 4,500 萬至 7,500 萬美元的自由現金流，支持我們目前保持的財務靈活性，同時增強我們實現未來獲利成長的能力。

With that, let me now turn the call back to Dale to wrap up on Slide 18.

現在，讓我將電話轉回 Dale，以結束投影片 18。

Thank you, Brett. Before we open the call for questions, I'd like to provide a few final thoughts. It's an exciting time at BrightView, and I'm honored to be leading such a talented team. There are tremendous opportunities ahead of us. We are moving this business forward with a clear strategy and vision for One BrightView. We are strategically positioned to accelerate profitable growth and to create meaningful values for our shareholders. We will now open the call for questions.

謝謝你，布雷特。在我們開始提問之前，我想提供一些最後的想法。在 BrightView，這是一個令人興奮的時刻，我很榮幸能夠領導這樣一個才華洋溢的團隊。我們面前有巨大的機會。我們正在透過 One BrightView 的明確策略和願景推動這項業務向前發展。我們的策略定位是加速獲利成長並為股東創造有意義的價值。我們現在開始提問。

(Operator Instructions) We do have our first question comes from Bob Labick from CJS Securities.

（操作員說明）我們的第一個問題確實來自 CJS 證券的 Bob Labick。

Dale. Congratulations on your new role, your new position. Two, I wanted to start -- I wanted to start, and I think you began the call this way, so reiterate, your employee first focus will drive customer satisfaction and improve retention and all that kind of good stuff. So that all makes a lot of sense. Can you like take it one level further and talk about what you've seen so far? I know it's 45 days, but thoughts on how to improve branch operations and change things, tweak things, what are your intentions operationally to grow organically from here?

戴爾.恭喜您擔任新角色、新職位。第二，我想開始——我想開始，我想你是這樣開始通話的，所以重申一下，你的員工第一關注點將提高客戶滿意度並提高保留率和所有類似的好東西。所以這一切都很有意義。您能否更進一步並談談您迄今為止所看到的內容？我知道這是 45 天，但是關於如何改善分支機構運作並改變事物、調整事物的想法，您從這裡開始有機成長的營運意圖是什麼？

Yes, yes, great question, Bob. First, I think you're right, 45 days, I've had a chance to, as I said, visit many of our associates, some of our customers in different parts of the country. And what I've seen to start with is we have a very talented group of people that service our customers every day. We have a Development group. We have a Tree Care business. We have a turf business, we have an irrigation business. We have a golf course Maintenance business, and of course, our primary business, the Maintenance group.

是的，是的，好問題，鮑伯。首先，我認為你是對的，正如我所說，在 45 天裡，我有機會拜訪了我們的許多同事，以及我們在全國不同地區的一些客戶。首先我看到的是我們有一群非常有才華的人每天為我們的客戶提供服務。我們有一個開發小組。我們有樹木護理業務。我們有草坪業務，我們有灌溉業務。我們有高爾夫球場維護業務，當然還有我們的主要業務——維護團隊。

All these groups service customers at extremely high levels. Our biggest opportunity, like I said in my statement, is going to be to get everybody operating as One BrightView, getting all these people to leverage their skills together to service our customers. And when we do that, Bob, we will accelerate our organic growth internally because we have talented people with the right focus of customers. We just haven't leveraged the ability for them to really act as one team when they go to market to the customer. So that upside is there within our own control of working as One BrightView, one group to drive profitable growth.

所有這些團體都為客戶提供極高水準的服務。正如我在聲明中所說，我們最大的機會是讓每個人都以 One BrightView 的方式運營，讓所有這些人共同利用他們的技能來為我們的客戶提供服務。鮑勃，當我們這樣做時，我們將加速內部的有機成長，因為我們擁有以客戶為中心的人才。我們只是沒有利用他們在向客戶推銷產品時真正作為一個團隊的能力。因此，作為 One BrightView，一個推動利潤成長的團隊，我們可以控制自己的優勢。

So I would tell you, I am more optimistic than ever by talking to the people in the field because the closer I get to the customer, the more our team is engaged to service the customer. So that's a great way to start when you're going to focus on how can we grow the business. And that starts and ends with those people that touch our customer every day. And we, as a leadership team, have to find a way to provide them all the tools they need to be able to do it efficiently and make our customers feel the choice they made to choose BrightView is the obvious choice.

所以我想告訴你，透過與該領域的人們交談，我比以往任何時候都更加樂觀，因為我離客戶越近，我們的團隊就越致力於為客戶提供服務。因此，當您要關注我們如何發展業務時，這是一個很好的開始方式。這一切都始於和結束於那些每天接觸我們客戶的人。作為領導團隊，我們必須找到一種方法，為他們提供高效完成工作所需的所有工具，並讓我們的客戶感到他們選擇 BrightView 的選擇是顯而易見的選擇。

Okay. Great. I appreciate that. And it sounds obviously with the employee and therefore, customer focus, that's the direction you're going to start with. How does this align with investing in the employees, aligned with margin enhancements. And is there lull period where you invest more in the employees, you get your improved retention and then later margins start improving. Is it -- like how do those connect if you're going to continue to really invest in employees first?

好的。偉大的。我很感激。這聽起來顯然是針對員工的，因此，以客戶為中心，這就是你要開始的方向。這如何與對員工的投資、與利潤的提升一致。是否存在一段間歇期，您在員工身上投入更多，保留率提高，然後利潤率開始提高。如果你要繼續先對員工進行真正的投資，那麼這些之間如何連結？

Because obviously, the goal being lower churn, higher retention and therefore, better growth. The investment comes before the improved retention, right? It can't be simultaneous. So how do you think about that as it relates to margins over the year or next 1, 2, 3 years?

因為顯然，我們的目標是降低客戶流失率、提高留存率，以實現更好的成長。投資先於保留率的提高，對吧？不可能是同時的。那麼，您如何看待這一點，因為它與一年或未來 1、2、3 年的利潤率有關？

Yes. I would just say, in our business, we have obviously have a lot of seasonality. But even the number of employees that were tasked with hiring to service our customers, training and onboarding every year, is a significant number. And the more we put those employees as our primary focus to give them the tools, the safety equipment, the systems, the vehicles to operate their jobs the right way, the more their job satisfaction will go up and the more we'll see that valuable resource of our employees turnover come down.

是的。我只想說，在我們的業務中，我們顯然有很多季節性。但即使是每年負責招募客戶服務、培訓和入職的員工數量也是一個很大的數字。我們越把這些員工當作我們的首要關注點，為他們提供工具、安全設備、系統和車輛，讓他們以正確的方式開展工作，他們的工作滿意度就會越高，我們就越會看到我們員工的寶貴資源流動率下降了。

So that will, Bob, drive the margin expansion just by being able to reduce the cost we pay to recruit and onboard employees. So that is our first step. And by doing that, that translate to them being able to serve the customer better and help us in that retention, as you said, to drive additional organic growth in the business.

因此，鮑勃，只要能夠降低我們為招募和入職員工支付的成本，就能推動利潤率的擴張。這是我們的第一步。透過這樣做，他們能夠更好地為客戶服務，並幫助我們留住客戶，正如您所說，從而推動業務的額外有機成長。

But our efforts to onboard and train customers right now are too high. That's why we have to prioritize our employees so we can make sure those employees are embracing a customer-centric focused business, and they know the importance they play in that journey.

但我們目前在客戶入職和培訓方面的投入太大了。這就是為什麼我們必須優先考慮我們的員工，這樣我們就可以確保這些員工正在擁抱以客戶為中心的業務，並且他們知道自己在這過程中發揮的重要性。

Our next question comes from Tim Mulrooney from William Blair.

我們的下一個問題來自威廉布萊爾的提姆穆魯尼。

This is Luke on for Tim. So it looks like land organic growth was down about 2.5% in the fourth quarter. I think you had previously expected it to be flat. Could you share what drove that decline? Was it primarily attributable to lower contract renewals or lower enhancement revenue or maybe something else?

這是盧克替蒂姆發言。因此，第四季土地有機成長似乎下降了約 2.5%。我想你之前預計它會持平。您能否分享一下導致這種下降的原因？主要是因為合約續約減少或增強收入減少還是其他原因？

Yes. So I'll start off and then I'll kick it over to Brett. I'd just remind everybody, our focus was profitable growth and margin expansion. So the team has been focused to make sure the customers that we're going after are the customers that fit that profile. And the businesses that we're focused on growing are businesses that are focused in that area, more of our core business, as you heard Brett mention on the call.

是的。所以我先開始，然後把它交給布雷特。我只是提醒大家，我們的重點是獲利成長和利潤率擴張。因此，團隊一直致力於確保我們所追求的客戶是符合該要求的客戶。我們重點發展的業務是專注於該領域的業務，更多的是我們的核心業務，正如您在電話中聽到布雷特所提到的那樣。

So let me let Brett kind of decompose this for you. But just remember, our focus is not just chasing revenue. It's going to be make sure the revenue we bring is accretive to our base business as we bring in new customers. So Brett, why don't you give them a little more detail on the financial side.

那麼讓我讓布雷特為你分解這個問題。但請記住，我們的重點不僅僅是追逐收入。當我們引進新客戶時，將確保我們帶來的收入能夠增加我們的基礎業務。那麼布雷特，為什麼不給他們更多關於財務方面的細節呢？

I appreciate the question. Yes. As Dale mentioned, profitable growth is going to be our guiding factor moving forward. And I think as you heard in previous calls, previous quarters, we were growing, but margin was not. And I think as you look at this year and you normalize for snow, which we've talked about quite a bit and the margin profile has improved significantly, not only in Development business and our Maintenance business and corporate segment as well.

我很欣賞這個問題。是的。正如戴爾所提到的，獲利成長將成為我們前進的指導因素。我認為正如您在之前的電話會議中聽到的那樣，前幾個季度，我們正在成長，但利潤率卻沒有。我認為，當你看看今年，你會發現降雪正常化，我們已經談論了很多，而且利潤狀況顯著改善，不僅在開發業務以及我們的維護業務和企業部門。

If you think about organic growth for the quarter, look, I think that drive towards profitable growth and high-quality business will continue in the near term as we move forward. We're still getting favorable benefits on pricing. We're still being strategic in those efforts of about 50 basis points with our pricing efforts. We did last year with heightened fuel, have fuel surcharges that were in our top line of about 50 basis points as well. So those 2 things sort of offset from a jump-off point, Q4 over Q4.

如果您考慮本季的有機成長，我認為隨著我們的前進，獲利成長和高品質業務的推動力將在短期內繼續下去。我們仍然在定價方面獲得有利的好處。我們仍在定價方面採取策略性的策略，將價格上調約 50 個基點。去年我們提高了燃油價格，燃油附加費也達到了我們的最高水平，約 50 個基點。因此，這兩件事有點偏離了起點，即 Q4 超過 Q4。

And then as Dale mentioned, there's a heightened focus on One BrightView, bringing all of our businesses together, whether it be golf or aggregator business, et cetera. And I think if you look at our core underlying land business, we saw very stable demand and growth in that business, offset by maybe some contraction in our noncore businesses. But as we move forward under Dale's leadership and really towards One BrightView, you'll see that alignment of the businesses, especially over the medium to long term.

然後，正如 Dale 所提到的，我們更加關注 One BrightView，將我們所有的業務整合在一起，無論是高爾夫業務還是聚合業務等等。我認為，如果你看看我們的核心基礎土地業務，我們會發現該業務的需求和成長非常穩定，但可能被我們的非核心業務的一些收縮所抵消。但當我們在 Dale 的領導下向前邁進並真正邁向 One BrightView 時，您將看到業務的一致性，尤其是中長期的一致性。

Great. And then maybe switching gears here. Just on your guidance for 2024. It looks like you're assuming maintenance land organic growth somewhere between down 2% -- up 2%. Can you share what you're assuming in both those situations? And maybe if you could give us a sense, breakdown just between pricing and volume expectations as we head into next year?

偉大的。然後也許在這裡換檔。就您對 2024 年的指導而言。看起來您假設維護土地有機增長在下降 2% 到增長 2% 之間。能分享一下您在這兩種情況下的假設嗎？也許您可以在我們進入明年時讓我們了解定價和銷售預期之間的細分？

Yes. I think, obviously, it's a good question. I think if you look at what we've done for guidance is we gave a full annual guide on revenue. And really in that annual revenue guide of $2.825 billion to $2.975 billion. We've also given a range for where we believe our snow revenue will come out, which is $210 million to $270 million. Our Development business, which had an outstanding year last year, we think we'll continue to grow slightly. So we give a range because we don't want to really break down exactly each component.

是的。我認為，顯然，這是一個好問題。我認為，如果你看看我們為指導所做的事情，我們會提供完整的年度收入指南。事實上，年收入指南為 28.25 億美元至 29.75 億美元。我們也給出了我們認為雪收入的範圍，即 2.1 億至 2.7 億美元。我們的開發業務去年表現出色，我們認為我們將繼續小幅成長。所以我們給出一個範圍，因為我們不想真正分解每個組件。

We think potentially, as we go through Q1 here, we'll see a similar trend to what we saw in Q4 as we focus our employees so that we can look to enhance our employees so they can make sure they drive retention with our customers. So I know that the change to give annual guide is a little difference. So one way I think everybody should think about those numbers is our Q1 would normally be roughly about 22.5% of our total revenue.

我們認為，當我們經歷第一季時，我們可能會看到與第四季度類似的趨勢，因為我們專注於員工，以便我們可以尋求增強員工的能力，從而確保他們能夠提高客戶保留率。所以我知道提供年度指南的變化有點不同。因此，我認為每個人都應該考慮這些數字，而我們的第一季通常約為總收入的 22.5% 左右。

And then that snow business, you could consider roughly about 25% of it coming in Q1, 75% coming in Q2. And that probably would allow you to kind of back into your assumptions, looking at last year's development by quarter of where we think revenue will grow over the next couple of months on maintenance. I hope that gives you enough on the pieces. But Brett, do you got anything you want to add or...

然後是雪業務，您可以考慮大約 25% 的業務來自第一季度，75% 的業務來自第二季度。這可能會讓您回到您的假設，並按季度查看去年的發展情況，我們認為未來幾個月維護收入將會成長。我希望這能給你足夠的了解。但是布雷特，你有什麼想要補充的嗎？

No, I'm just, (inaudible) at the change in guidance. We're going from prior years where we would only provide Q1 guidance at this point in time. We would not provide Q2 or full year. So now we're going out and providing a full year guide. And I think in that land guide, as you can see it on Slide 16 in the presentation, it's minus 2% to positive 2%.

不，我只是（聽不清楚）指導方針發生了變化。與往年相比，我們目前僅提供第一季的指導。我們不會提供第二季或全年數據。所以現在我們要出去提供全年指南。我認為在該土地指南中，正如您在簡報中的幻燈片 16 中看到的那樣，它是負 2% 到正 2%。

And like as Dale mentioned, we are working through our guiding factor of profitable growth and through that profitable growth mantra and bringing together as One BrightView. What we experienced in Q4 of a revenue impact, we'll probably experience in land in Q1 and in the early half of '24. But as One BrightView gains traction as we take care of our employees and in turn, they take care of our customers, we're going to get back to that profitable growth over the medium and longer term in this business.

正如戴爾所提到的，我們正在努力實現獲利成長的指導因素和獲利成長的口號，並將其整合為 One BrightView。我們在第四季度經歷的收入影響，我們可能會在第一季和 24 年上半年在土地領域經歷。但隨著 One BrightView 獲得吸引力，因為我們照顧我們的員工，反過來，他們也照顧我們的客戶，我們將在這項業務的中長期恢復獲利成長。

Just important to note, too, just one last factor. Q1 of last year, we did have a hurricane impact in the business of about $7 million. We don't see any type of unusual events like that happening right now for this quarter.

還需要注意的是最後一個因素。去年第一季度，我們的業務確實受到了約 700 萬美元的颶風影響。本季我們沒有看到任何類型的異常事件發生。

Our next question comes from Phil Ng from Jefferies.

我們的下一個問題來自 Jefferies 的 Phil Ng。

This is Maggie on for Phil. I wanted to start out -- yes, I wanted to start out on free cash flow. You had a really impressive step up this year. Can you talk about the nonrecurring benefit from this year and any of the other moving pieces that kind of get you to that fiscal '24 guidance? And then on the CapEx side, the guide implies a pretty big increase next year. Is that more of a catch-up for the business? Or is this a reasonable level to assume going forward?

這是瑪姬為菲爾代言的。我想從自由現金流開始。今年你的進步確實令人印象深刻。您能談談今年的非經常性收益以及任何其他能讓您達到 24 財年指導的動態因素嗎？然後在資本支出方面，該指南暗示明年會有相當大的成長。這對企業來說是否更像是一種追趕？或者說，這是一個合理的未來假設水準嗎？

Yes, Maggie, let me start. I'll take the back half of your question with the capital, and then I'll kick it over to Brett on the free cash flow. I think, as Brett had commented, the business did the right things in 2023, when we made strategic decisions to manage the capital down when we saw the snow business with the record level of reduced snow that we saw last year and the business reacted very well. Thus, demonstrating our ability to flex the business up or down and drive it by our CapEx and produce the free cash flow that we did.

是的，瑪吉，讓我開始吧。我將用資本來回答你問題的後半部分，然後我會把自由現金流問題交給布雷特。我認為，正如Brett 所評論的那樣，該企業在2023 年做了正確的事情，當時我們看到雪業務的降雪量達到去年創紀錄的減少水平，並且該企業的反應非常好，因此我們做出了管理資本的策略決策。出色地。因此，這證明了我們有能力上下調整業務並透過我們的資本支出推動業務並產生我們所做的自由現金流。

As far as the future guide on that free cash flow, I think a healthy range is probably closer, maybe 3.5% that Brett mentioned is a little elevated, but I do think there's a plan for us to drive maybe a little shorter-term use of our vehicles and get a little more residual value as we go through the process, and we're going to have a little catch-up on that. Because don't forget, these vehicles that our employees operated in, they are our billboard that goes out and visits our customers. So the appearance of those that our employees work in every day is critical our brand that we represent the customers. But let me kick it over to Brett, and he can give you some on the nonreoccurring.

就自由現金流的未來指南而言，我認為健康範圍可能更接近，布雷特提到的 3.5% 可能有點高，但我確實認為我們有一個計劃來推動短期使用我們的車輛，並在我們完成這個過程時獲得更多的剩餘價值，我們將在這方面有所趕上。因為不要忘記，我們員工駕駛的這些車輛，它們是我們出去拜訪客戶的廣告看板。因此，我們員工每天工作的外觀對於我們代表客戶的品牌至關重要。但讓我把它交給布雷特，他可以給你一些關於非重複發生的資訊。

Yes, Maggie, great question. Look, first off, I'll say we are extremely pleased with our cash flow performance this year. Coming off the year in FY '22, where we generated $7 million of free cash flow and then we went and bought acquisitions after that and essentially took out debt to do so. That was not the game plan coming into '23. We were very clear with that early in our in our conversations on earnings calls and just really excited to report we delivered great cash flow performance of $80 million in the year. And we actually put money into the bank to keep on the sidelines for future strategic investments in the business. So extremely pleased about that.

是的，瑪吉，好問題。首先，我想說我們對今年的現金流表現非常滿意。在 22 財年結束時，我們產生了 700 萬美元的自由現金流，然後我們進行了收購，並為此基本上償還了債務。這不是 23 年的計劃。我們在財報電話會議的早期對話中就非常清楚這一點，並且非常高興地報告我們今年實現了 8000 萬美元的出色現金流表現。實際上，我們將資金存入銀行，以便為未來的業務策略投資保持觀望。對此非常高興。

And as you think about last year, is a $70 million to the $80 million, yes, we saw, as it wasn't snowing in Q2, we made a strategic decision to pull back on CapEx that benefited our cash flow year-over-year, roughly $50 million for the CapEx year-over-year down. But look, I think that was very strategic and shows the flexibility of our balance sheet, as Dale mentioned.

正如你想像的那樣，去年是7000 萬美元到8000 萬美元，是的，我們看到，由於第二季度沒有下雪，我們做出了一項戰略決定，減少資本支出，這使我們的現金流年比受益 -今年，資本支出年減約 5000 萬美元。但是，我認為這是非常具有戰略意義的，並且顯示了我們資產負債表的靈活性，正如戴爾所提到的。

In the year with low snow, we're able to flex capital down a bit in years as we're guiding in '24, we're expecting a more call it, historical snowfall, we would flex that CapEx guide up a little bit. And you think about '24 guidance, a range of cash flow of $45 million to $75 million. That's coming off the year where we did have about $25 million of onetime favorable impacts in our cash flow, whether it was related to tax benefits we got from our tax planning or partial sale of our interest rate hedge we had on our collar. But regardless of that, as you think about '24 guide, we're looking at guiding to a point of $60 million to even at the high end, $75 million, $80 million of free cash, which has put us back to where this year was. And that's through improved operating results and some of the savings on our interest expense, which, as you can see, we're redeploying capital back into the business. So dollars, we'e saving our capital, dollars, were saving -- I'm sorry, dollars we're saving on interest and dollars we're saving in other areas of the balance sheet, we'll redeploy back in the capital, as Dale mentioned, we'll refresh our fleet and be able to put our employees in a much more favorable working environment every day.

在降雪量較低的一年，我們能夠在 24 年的指引中稍微下調資本支出，我們預計會有更多的降雪，歷史性的降雪，我們會稍微調高資本支出指引。你想想 24 年的指導，現金流量範圍為 4500 萬美元到 7500 萬美元。今年我們的現金流確實獲得了約 2500 萬美元的一次性有利影響，無論是與我們從稅務規劃中獲得的稅收優惠還是部分出售我們的利率對沖有關。但不管怎樣，當你想到 24 小時指南時，我們正在考慮將指導值提高到 6000 萬美元，甚至在高端，7500 萬美元、8000 萬美元的自由現金，這讓我們今年回到了這個水平曾是。這是透過改善經營業績和節省一些利息費用來實現的，正如您所看到的，我們正在將資本重新部署到業務中。所以美元，我們正在節省我們的資本，美元，我們正在節省——對不起，我們在利息上節省了美元，我們在資產負債表的其他領域節省了美元，我們將重新部署回資本正如戴爾提到的，我們將更新我們的車隊，並能夠每天為我們的員工提供更有利的工作環境。

Okay. Great. That's super helpful. And then, Dale, you kind of touched on this in your prepared remarks, but the guide for next year assumes minimal contribution from incremental M&A which has previously been a bigger focus for the company. I guess how do you think about the strategy around M&A over the near term? And should we expect to pause on deals in fiscal '24?

好的。偉大的。這非常有幫助。然後，戴爾，你在準備好的發言中談到了這一點，但明年的指南假設增量併購的貢獻很小，而增量併購此前一直是公司的更大關注點。我想您如何看待近期的併購策略？我們是否應該預期在 24 財年暫停交易？

Yes. Yes. Great question, Maggie. First of all, I am a absolute firm believer in M&A. I am a supportive person that when we can make an investment, when we can be a better owner of the asset, we should take advantage of that. And as being the nation's largest landscape provider, we should be able to do that.

是的。是的。很好的問題，瑪姬。首先，我是併購的絕對堅定信徒。我是一個支持者，當我們可以進行投資時，當我們可以成為資產的更好所有者時，我們應該利用這一點。作為全國最大的景觀提供者，我們應該能夠做到這一點。

Unfortunately, I think historically, the way we've done M&A, at BrightView, needs to be revamped. We have to get our operators involved earlier. We have to evaluate M&A, not just on the short-term financial benefits. We have to look at culturally and strategically as important as just the initial math. And then the day that we buy a company, we must integrate it into our business. We are going to put our precious capital to work deploying it for M&A. So we have to find a way to make sure our foundation is ready that when that capital gets deployed, we grow that business. and we grow it very profitably because as the owner of that business, we can leverage our size and scale to provide processes, provided systems and corporate overhead that they shouldn't need on their own.

不幸的是，我認為從歷史上看，我們在 BrightView 進行併購的方式需要改進。我們必須讓我們的運營商儘早參與進來。我們必須評估併購，而不僅僅是短期的財務利益。我們必須從文化和策略角度來看待，就像最初的數學一樣重要。然後當我們購買一家公司的那一天，我們必須將其整合到我們的業務中。我們將把寶貴的資金用於併購。因此，我們必須找到一種方法來確保我們的基礎已準備好，以便在部署資本時我們可以發展業務。我們的成長非常有利可圖，因為作為該業務的所有者，我們可以利用我們的規模和規模來提供他們自己不需要的流程、系統和公司管理費用。

So I am a firm believer in M&A. Maybe for the next couple of quarters, we don't plan on doing much, but we have already started to revamp our process to get everybody working together, starting with our field leaders to make sure the deals we do are the right deals. And then as we bring them in, we find a way to make sure we're a much better owner of that asset as part of BrightView. So make no -- we didn't put a lot into our guide, but make no bones about it. I am a firm believer in M&A. We just need to pause here to make sure we get ready. So once we do M&A, it creates shareholder value for all of our shareholders.

所以我是併購的堅定信徒。也許在接下來的幾個季度，我們不打算做太多事情，但我們已經開始改進我們的流程，讓每個人一起工作，從我們的現場領導開始，以確保我們所做的交易是正確的交易。然後，當我們引入它們時，我們會找到一種方法來確保我們是該資產（作為 BrightView 的一部分）的更好所有者。所以，請不要——我們沒有在指南中投入太多內容，但請直言不諱。我是併購的堅定信徒。我們只需要在這裡暫停以確保我們做好準備。因此，一旦我們進行併購，就會為所有股東創造股東價值。

(Operator Instructions). Our next question comes from George Tong from Goldman Sachs.

（操作員說明）。我們的下一個問題來自高盛的喬治唐。

You talked about engaging in contract optimization in your Maintenance business in order to drive profitable growth. Can you elaborate on some of the initiatives there? In other words, are you pruning existing contracts? Are you turning down new business with unfavorable terms? And then when would you expect this initiative to be largely complete?

您談到了在維護業務中進行合約優化，以推動獲利成長。能詳細介紹一下那裡的一些舉措嗎？換句話說，您是否正在削減現有合約？您是否會拒絕條件不利的新業務？那麼您預計這項計劃什麼時候能基本完成？

Yes. So it's a good question, George. What I would say is, as Brett talked about, through our price realization, our focus on every account is to make sure as we feel some of those inflationary impacts, we find a way to work with our customers to make sure that the service we're providing reflects the value they see. Sometimes, that creates price increases. Sometimes, it's service reductions because they don't want to spend more money and we partner with our customers to find a way to make sure it's a win-win situation.

是的。所以這是一個很好的問題，喬治。我想說的是，正如布雷特所說，透過我們的價格實現，我們對每個帳戶的關注是確保當我們感受到一些通膨影響時，我們找到一種與客戶合作的方法，以確保我們的服務所提供的反映了他們所看到的價值。有時，這會導致價格上漲。有時，服務減少是因為他們不想花更多的錢，我們與客戶合作尋找一種方法來確保這是一個雙贏的局面。

So what I can tell you is we continue to evaluate all of our businesses to make sure they're working together well. And every part of our business is accretive to our customer value that we put out there. So after 45 days, I think the team is doing the right thing. And I also think there's a better way for us to go to market, to look at new accounts that could fill out our existing route and our partners at One Rock have really helped us start to look at ways that we can enhance the profitability of existing routes just by adding strategic customers. So I don't think that's a -- on-off point, I think it's going to be an evolution for us to continue to go through and continue to focus on because that is the essence of this business, route optimization, enhancing, making sure that our people service the customers and finding customers that can fill in those routes.

所以我可以告訴你的是，我們將繼續評估我們所有的業務，以確保它們能夠良好地合作。我們業務的每個部分都會增加我們提供的客戶價值。所以 45 天后，我認為團隊正在做正確的事。我還認為，我們有更好的方式進入市場，尋找可以填補我們現有路線的新客戶，我們在 One Rock 的合作夥伴確實幫助我們開始尋找可以提高現有路線盈利能力的方法。只需添加策略客戶即可實現路線。所以我不認為這是一個開關點，我認為這將是我們繼續經歷並繼續關注的一個演變，因為這是這項業務的本質，路線優化、增強、製作確保我們的員工為客戶提供服務並找到可以填滿這些路線的客戶。

And I was looking at what it costs to service the business that we're providing. So I think short term, we made some decisions. But long term, George, it's a much bigger discussion about how are we going to manage the business long term. And as One BrightView, that's where we really see the benefit for our customers.

我正在研究為我們提供的業務提供服務的成本。所以我認為短期內我們做了一些決定。但從長遠來看，喬治，這是一個關於我們如何長期管理業務的更大討論。作為 One BrightView，我們真正看到了為客戶帶來的好處。

Got it. That's helpful. And then in Development, you had strong 7% organic revenue growth on a full year basis. And this followed pretty strong growth of 10% organic in fiscal 2022. Can you unpack the strong growth in Development you've been seeing and the extent to which the Development business has structurally stepped up in growth potential to something north of 5% organically?

知道了。這很有幫助。然後在開發方面，全年有機收入強勁成長 7%。在此之前，2022 財年實現了10% 的強勁有機成長。您能解釋一下您所看到的開發業務的強勁成長，以及開發業務在結構上將成長潛力提高到有機成長5% 以上的程度嗎？

Yes. It's a great question. First, we have a very strong backlog in our Development group. And I think as many people know, the economy has been on a roll. And some of that backlog is at the end of those jobs that have occurred over the last couple of years in the construction industry. So that team has done a very good job securing a backlog of business well north of what we would typically see at this time. But let me let Brett unpack it a little bit for you, if that would help.

是的。這是一個很好的問題。首先，我們的開發團隊有大量的積壓工作。我想正如很多人所知，經濟一直在發展。其中一些積壓工作是在過去幾年建築業出現的工作結束時發生的。因此，團隊做得非常好，確保了積壓的業務遠遠超出了我們目前通常看到的水平。但如果有幫助的話，讓我讓布雷特為你解開一些謎底。

Yes, George. Look, I would echo Dale's comments. The backlog is strong. We see no signs of any type of weakening in the economy. We see no signs of any type of recession looming. Our backlog and development is as high as it's ever been to the historical high levels. In 2022, we reported revenues of $700 million, '23 is close to $760 million and we're guiding at the midpoint of 3.5% growth on 2023 results. So we see no slowing down in that business. We see quite the contrary. We're selling, as of this point, we're selling really into Q3 and Q4 of '24. And then as we get through this quarter and the next quarter, we'll be selling into '25 at that point. So just really, really robust growth in that business. We're very bullish on their ability to grow their backlog to put the projects in the ground. And by the way, they just posted their fifth consecutive quarter of margin improvement in that business. We're extremely excited about, and we expect that margin improvement to continue as you can see in our guidance for '24.

是的，喬治。看，我會贊同戴爾的評論。積壓情況很嚴重。我們沒有看到任何經濟疲軟的跡象。我們沒有看到任何類型的衰退即將來臨的跡象。我們的積壓和開發量達到了歷史最高水準。 2022 年，我們報告的收入為 7 億美元，23 年收入接近 7.6 億美元，我們預計 2023 年業績成長率為 3.5% 的中點。因此，我們認為該業務不會放緩。我們的看法恰恰相反。到目前為止，我們正在銷售，我們實際上正在銷售到 24 年第三季和第四季。然後，當我們度過這個季度和下個季度時，我們將在 25 世紀進行銷售。因此，該業務的成長非常非常強勁。我們非常看好他們增加積壓訂單以落實項目的能力。順便說一句，他們剛剛公佈了該業務連續第五個季度的利潤率改善。我們對此感到非常興奮，並且預計利潤率將持續改善，正如您在 24 年的指導中看到的那樣。

Got it. And just to follow up on the second half of the question. To what extent do you think structurally the growth has stepped up to maybe something north of 5% at the midpoint, you're guiding to 3.5%. In other words, is there upside potential given the strength that you just talked about in the Development business?

知道了。只是為了跟進問題的後半部。您認為結構性成長到什麼程度，中點可能會超過 5%，您的指導是 3.5%。換句話說，考慮到您剛才談到的開發業務的實力，是否存在上升潛力？

Yes. George, I would say there's always potential for upside. And this business is very dependent on cycles somewhat dependent on weather as you get into the winter months. But as you think about the business in general, it's been pretty consistent growth year-over-year on a full year basis. I think as you look at our full year guide, when you think about last year, Q2, we saw a small -- a small revenue decline in Q2 of '23. But you can see for the full year basis, the business is growing north of 7% organically. We feel very bullish that over a course of a full year, that business will grow. Could it grow more than 5%? That's a possibility.

是的。喬治，我想說總是有上升的潛力。這項業務非常依賴週期，在某種程度上取決於進入冬季時的天氣。但當你考慮到整個業務時，你會發現全年的同比增長相當穩定。我認為，當您查看我們的全年指南時，當您想到去年第二季時，我們發現 23 年第二季的收入出現了小幅下降。但您可以看到，就全年而言，該業務的有機成長超過 7%。我們非常樂觀地認為，在一整年的時間裡，這項業務將會成長。成長能超過5%嗎？這是有可能的。

But I think as we stand here today and really look at more improvement in that business as well, which has been a focus and being more selective in projects that we sell. We still expect to grow the business revenue, but margin has to come along with it, which we showed in '23, and we expect margin to come along within in '24. And that may mean not growing at 10% to 15%, that may be growing at 5% with higher margins.

但我認為，當我們今天站在這裡，真正著眼於該業務的更多改進時，這一直是我們所關注的焦點，並且在我們銷售的項目中更具選擇性。我們仍然期望業務收入成長，但利潤率必須隨之成長，正如我們在 23 年所展示的那樣，我們預計利潤率將在 24 年內出現。這可能意味著不會以 10% 到 15% 的速度成長，而可能會以 5% 的速度成長，並且利潤率更高。

Yes. And George, let me jump on in, I think Development has been -- I mean I would just add, George, I think the Development business for us has been a key area of growth. Where we need to get better as a team is finding a way to convert that Development business that we generate to new Maintenance business. And that's where that One BrightView will come into play. We have 1 of the top 50 specialty companies in construction in North America, and they do some of the biggest development on landscaping projects in the country.

是的。喬治，讓我插話，我認為開發業務一直是——我的意思是我只想補充一點，喬治，我認為開發業務一直是我們成長的關鍵領域。作為一個團隊，我們需要做得更好的地方是找到一種方法將我們產生的開發業務轉換為新的維護業務。這就是 One BrightView 發揮作用的地方。我們擁有北美 50 強專業建築公司之一，他們從事該國一些最大的景觀美化項目的開發。

We need to find a way to make sure we have a successful handoff from that development to our Maintenance team as One BrightView. So this is the lead-in to help that organic growth on Maintenance. So I like that it keeps growing and our team in the field continues to enhance and beautify our communities. Now we just need to convert that over to future maintenance revenue so we can get the Maintenance group growing just as fast as the Development group.

我們需要找到一種方法來確保我們能夠成功地將開發工作移交給作為 One BrightView 的維護團隊。因此，這是幫助維護有機成長的先導。所以我喜歡它的不斷發展，我們的現場團隊不斷增強和美化我們的社區。現在我們只需要將其轉換為未來的維護收入，這樣我們就可以讓維修團隊與開發團隊一樣快速成長。

Our next question comes Andy Wittmann from Baird.

我們的下一個問題來自貝爾德 (Baird) 的安迪魏特曼 (Andy Wittmann)。

Great. I have several questions, but I think maybe the one I'll start with has to do with, I guess, Project Liberty and other business transformation costs. The question being, Obviously, Project Liberty has been in flight for some time now, and many of the actions have already been taken and some of the cost benefits realized in 2023. I was just wondering how much cost benefit from actions already taken so far on Project Liberty are going to be benefiting your profit margins in 2024. In other words, what hasn't been recognized in the annual run rate of those cost reductions so far? Maybe Brett, if you could talk about related items to that, what do you expect for the business transformation cost here in 2024?

偉大的。我有幾個問題，但我想我首先要問的問題可能與自由計劃和其他業務轉型成本有關。問題是，顯然，自由計畫已經實施了一段時間，許多行動已經採取，部分成本效益將在 2023 年實現。我只是想知道到目前為止已經採取的行動有多少成本效益自由計畫將使您在2024 年的利潤率受益。換句話說，到目前為止，這些成本削減的年運行率中還沒有認識到哪些內容？也許 Brett，如果您能談談與之相關的項目，您對 2024 年業務轉型成本的預期是多少？

Yes. So that's a great question, Andy. I would just say at a high level, Project Liberty was focused on some initial benefits from cost saves. And if you go back, it started out as Project Accelerate. So I think we've seen a lot of that. We still have an area to go when it comes to the procurement initiative that we'll work through in 2024. But as you've heard, we're going to try to transition from primarily those cost save initiatives to more of that One BrightView approach, where we can focus on customer retention and on new account conversion to make sure we're growing the business at the same time so we can leverage size and scale.

是的。這是一個很好的問題，安迪。我只想說，從較高的層面來看，自由專案的重點是節省成本帶來的一些初步好處。如果你回頭看，它是從 Project Accelerate 開始的。所以我認為我們已經看到了很多這樣的情況。對於我們將在 2024 年完成的採購計劃，我們還有很長的路要走。但正如您所聽到的，我們將嘗試從主要的成本節約計劃轉向更多的 One BrightView 計劃方法，我們可以專注於客戶保留和新帳戶轉換，以確保我們同時發展業務，以便我們可以利用規模和規模。

But Brett can probably give you the numbers. Obviously, the benefit we said that would come in 2024, $20 million is embedded in our guidance that you see coming out with the midpoint EBITDA at $325 million, but I'll let Brett talk to what he feels came in during '23 and where we're at towards our run rate for '24.

但布雷特也許可以給你數字。顯然，我們所說的2024 年將帶來的收益，即2000 萬美元，已包含在我們的指導中，您可以看到，EBITDA 中點為3.25 億美元，但我會讓Brett 談談他認為23年期間出現的情況以及在哪裡我們正朝著 24 年的運行率邁進。

Yes. Andy, look, as you think about 2023, we said on our last call, we saw about $2 million or so realization from Project Accelerate, which was just a cost-cutting initiative essentially. And then as we morphed into Project Liberty in our Q3 call, we mentioned that we would see $20 million plus of savings related to the entire project. We saw roughly another $2 million to $3 million savings come through Q4 related to the original Accelerate and some early signs of Liberty. But I think as you think about our guidance for '24 and Liberty now morphs into One BrightView. One BrightView is just going to be the way we operate the business. We're going to take care of our customers, who in turn take care to our employees who are in turn take care of our customers.

是的。安迪，你看，當你想到 2023 年時，我們在上次電話會議上說過，我們從 Project Accelerate 中看到了大約 200 萬美元的收益，這本質上只是一項成本削減計劃。然後，當我們在第三季電話會議中轉變為「自由專案」時，我們提到我們將看到與整個專案相關的 2000 萬美元以上的節省。我們看到第四季又節省了約 200 萬至 300 萬美元，與最初的 Accelerate 和 Liberty 的一些早期跡像有關。但我認為，當您考慮我們對 '24 的指導時，Liberty 現在已轉變為 One BrightView。 One BrightView 將成為我們經營業務的方式。我們將照顧我們的客戶，而客戶將照顧我們的員工，而我們的員工將照顧我們的客戶。

And if you think about our guide for 2024. We're guiding at a midpoint of 60 basis points of margin expansion. We're guiding at a midpoint of $26 million of EBITDA growth that's inclusive of One BrightView or as previously talked about as Project Liberty. And to able to get to that transformational cost, able to get to that to get the Project Liberty aka One BrightView and move that needle forward. We don't expect any significant increase in transformational costs above what we had this year, right? This year, we went through a CEO change. We had some business transformation cost that was related to that and some transition to the new CEO.

如果您考慮我們對 2024 年的指導。我們的指導是利潤率擴張的中點 60 個基點。我們預計 EBITDA 成長的中點為 2,600 萬美元，其中包括 One BrightView 或先前提到的 Project Liberty。為了能夠實現這一轉型成本，能夠實現自由專案（又稱 One BrightView）並推動這一目標向前發展。我們預計轉型成本不會比今年顯著增加，對嗎？今年，我們更換了執行長。我們有一些與此相關的業務轉型成本以及向新執行長的過渡。

We don't expect the transformation of getting from Liberty to One BrightView in the way we operate the business to have any type of significant impact on our cash flow that hasn't been already included in our guidance.

我們預計，從 Liberty 到 One BrightView 的業務運作方式轉變不會對我們的現金流產生任何類型的重大影響（尚未納入我們的指導中）。

Okay. That's really clear on the transformation cost. So I heard a couple of million dollars in 3Q saved maybe $3 million in 4Q say. So the implication mean that if you're going for $20 million you've got about $15 million coming -- benefiting the '24 EBITDA. Is that the quick summary?

好的。轉型成本非常清楚。所以我聽說第三季節省了幾百萬美元，第四季可能節省了 300 萬美元。因此，這意味著如果您要花費 2000 萬美元，您將獲得約 1500 萬美元——使 24 年 EBITDA 受益。這是快速總結嗎？

Yes, that's a quick summary. But just as we think about moving forward, and we get on our net to talk about One BrightView. This is the way we're going to operate the business. So we are morphing a project that had a sticker tag on it of $20 million to we operate the business. And the way we operate their business will be included in our future guides. And we did our best to include that in our full year guide this go around the $310 million to $340 million. So yes, I would say that includes somewhere around $15 million of, call it, legacy Project Accelerate, Project Liberty. But the remainder of the improvement in that guide is going to just be the way we wanted it.

是的，這是一個快速總結。但正當我們考慮向前邁進時，我們上網談論 One BrightView。這就是我們經營業務的方式。因此，我們正在將一個貼有 2000 萬美元標籤的專案轉變為我們營運業務。我們經營他們業務的方式將包含在我們未來的指南中。我們盡力將其納入我們的全年指南中，金額約為 3.1 億至 3.4 億美元。所以，是的，我想說這包括大約 1500 萬美元，稱之為遺留項目加速項目、自由項目。但該指南的其餘改進將按照我們想要的方式進行。

Yes. Okay. That's helpful. And I guess stepping way back, I guess, just philosophically, Dale being the new leader of this company, it's always such an opportune time when things can use a change to kind of step back and take stock of the situation. As it comes to the guidance philosophy, I guess, it seems like this would be a time where you guys put out a guidance, which has very little expectations or low bar knowing that you've got the opportunity to kind of clear the ducts and reset things. Is that the way we should kind of think about this guidance from here? Or is this -- it was [their] different approach in terms of how you formulated the approach in putting this guidance together?

是的。好的。這很有幫助。我想退後一步，我想，只是從哲學上來說，戴爾是這家公司的新領導者，這總是一個合適的時機，事情可以利用變化來退後一步並評估情況。至於指導理念，我想，這似乎是你們發布指導的時候，它的期望很低或很低，因為知道你有機會清理管道和重置事物。我們應該以這種方式思考這個指導嗎？或者，就您如何制定將本指南整合在一起的方法而言，這是[他們的]不同方法？

No. I definitely think our guidance is a guidance that we feel comfortable with, with an EBITDA range that's well above the [$299 million] we delivered this year. So I don't see by any means that being a conservative range. Going from $310 million to $3.45 million -- $340 million is very realistic and $345 million is very realistic.

不。我絕對認為我們的指導是我們感到滿意的指導，其 EBITDA 範圍遠高於我們今年交付的 [2.99 億美元]。所以我不認為這是一個保守的範圍。從 3.1 億美元到 345 萬美元——3.4 億美元是非常現實的，3.45 億美元是非常現實的。

So I think somewhere around that $325 million is good starting point for us. Now to be fair, we don't know how much it's going to snow and we don't know when it's going to snow and we gave you a guide on that range. If it snows at the high end, of that expected $210 million to $270 million, we can come in end of that range. If it doesn't snow, like it didn't snow last year, there's a chance we'll come in towards the low end. But I wouldn't look at guide as a complete, we're trying to be conservative as we come out. We feel that where our plan is this year with what we felt in Q4, we're realistic to get into this range where we came out with the start of the year.

所以我認為大約 3.25 億美元對我們來說是一個很好的起點。公平地說，我們不知道會下多少雪，也不知道什麼時候會下雪，但我們為您提供了該範圍的指南。如果下雪的金額達到預期的 2.1 億至 2.7 億美元的上限，我們可能會落在該範圍的末端。如果不下雪，就像去年沒有下雪一樣，我們就有可能進入低階地區。但我不會將指南視為完整的，我們在發佈時試圖保持保守。我們認為，根據我們今年第四季的感受，我們的計劃是現實的，我們可以現實地進入今年年初制定的範圍。

And shifting from given quarterly guidance to giving an annual guidance, that's a big shift. I think we are going to start helping people, see what we plan on doing for the full year versus just running the business tactically quarter-by-quarter.

從提供季度指導轉向提供年度指導，這是一個很大的轉變。我認為我們將開始幫助人們，了解我們全年計劃做什麼，而不是僅僅按季度戰術性地經營業務。

We currently have no further questions. So I'd like to hand the call back to Dale Asplund for closing remarks. Please go ahead.

目前我們沒有進一步的問題。因此，我想將電話轉回戴爾·阿斯普倫德 (Dale Asplund)，讓其致閉幕詞。請繼續。

Thank you, operator. And thank you to everyone for your interest in BrightView. As you can tell by our tone, we are very excited about the opportunity ahead for Brightview, and I'm thrilled to be leading this great company through this improvement period. Our objectives are clear. We are committed to becoming One Brightview, growing profitably and creating meaningful shareholder value. I look forward to getting to know many of you in the weeks and months to come. There's a lot of work ahead of us. But for the future is bright for One for -- BrightView. Thank you. Operator, you can now end the call.

謝謝你，接線生。感謝大家對 BrightView 的興趣。從我們的語氣中你可以看出，我們對 Brightview 面臨的機會感到非常興奮，我很高興能夠領導這家偉大的公司度過這個改進時期。我們的目標很明確。我們致力於成為 One Brightview，實現獲利成長並創造有意義的股東價值。我期待在未來幾週和幾個月內認識你們中的許多人。我們還有很多工作要做。但對 One for 來說，BrightView 的未來是光明的。謝謝。接線員，您現在可以結束通話了。

Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your lines. Thank you.

女士們、先生們，今天的電話會議到此結束。感謝您的加入。現在您可以斷開線路。謝謝。