Q – Unidentified Analyst: Hello. This is [Harold] on for Stephanie Moore. Yes. So developments are some particular strength in the business. I just wanted to get an idea of what are some of the drivers of the strength in the development business this year? And do you expect the strength to be carried over throughout the rest of the year?
Dale Asplund : Yes. So Harold, I think it was, Harold, you broke up a little bit, but our development business obviously has been the benefactor of what the country has seen on the construction cycle over the last couple of years. And some of those mega projects that you heard a lot of people talk about as they come towards the end, and will continue to come towards the end for the next 1.5 years. We offer one of the top 50 specialized construction companies in North America that can actually support the final stages of those projects. So that team is very hitting the stride right now. They have a great backlog. We’re winning new jobs every day, and we’ll continue to see that demand, as Brett said, well into 2025 as we continue to bid work. So that business has been a huge benefactor of all the construction that’s gone on over the last 24 months. So we are very optimistic about development.
Unidentified Analyst: And then just on EBITDA margin. How should we think about the cadence of EBITDA margin throughout the rest of the year for you to hit, that 40 to 80 basis points in it? Just any insight on that, on the cadence of it for the rest of the – for the year will be helpful.
Brett Urban : Yes. Great question. Look, I think when you look at Q1, if not for the timing of snowfall, our margin would have been right at our guided range of the total company for the year of 40 to 80 basis points would have actually been at the higher end of that range of 60 to 80 basis points. So a little bit is just the timing of snow in Q1 and how that – what our guide would be then for the full year snow holding at $210 million to $270 would imply that, that snow shortfall in Q1 would come back in Q2. And therefore, we’d see that margin rebound here in Q2. As you think about quarter-to-quarter, we’re not again providing quarterly guidance. But as we look at the full year, we feel strong sitting here today with some of the actions we’ve taken towards One BrightView and to align the business and the momentum we’re seeing in the underlying core business and land and the momentum we’re seeing in our development business and some of the cost structure changes we’ve made in corporate that for the full year guide, we feel confident in that 60 to – 40 to 80 basis points total margin expansion for the business.
Operator: Our next question comes from George Tong with Goldman Sachs.
George Tong: You’ve reiterated your full year guide despite the sale of U.S. Lawns and the shortfall in snow revenue in fiscal 1Q. Can you elaborate on some of the assumptions around snow in the land business for the rest of the year that you’re incorporating into your full year guide?
Brett Urban : I think, George, great question. Like reiterating our full guide, we also feel exactly where we felt after we’ve worked through January on snow with that range of $210 million to $270 million of snow. So we will update everybody where we finish once we get past the snow season. But like I had said earlier, where we sit today, we still feel that guide we gave you will come in despite the shortfall we felt in Q1, but the activity we saw in January. So snow, we feel good about — and overall, with U.S. Lawns, U.S. Lawns was a strategic sale with $11 million of revenue at a double-digit multiple that we got $52 million for us. So you can do some quick math there. We believe we can still step over that incremental 3/4 of the EBITDA that that business would have generated.
It’s somewhat de minimis with the multiple we got. So we feel good about the momentum that we have as we go through the year. So we are not concerned that that’s going to have a negative effect either on revenue or on EBITDA for our full year guide overall.
George Tong: And then development revenue growth of 6% came above your full year guide range of 2% to 5% for the segment. Can you discuss your growth expectations for development for the rest of the year? Any timing considerations or comp issues to be mindful of?
Dale Asplund : So I’ll start with, then I’ll let Brett. Just at a high level, the one thing I would say, the benefit that — or the lack of benefit we saw in snow that we told everybody we didn’t see a lot of snow until January. That means that the construction season can actually be running a little longer into the year. So our development group gets the benefit of that. So they did have an outstanding quarter with that growth. And I would just say, in Q2, depending on what we see for snow, that could trim that down year-over-year, especially last year, like I said, snow in February and March was relatively light. So — but Brett, do you want to add anything to that?
Brett Urban : Yes, George. Typically, development’s lowest quarter is Q2, same with our land business. So as you think about seasonality and snow, et cetera, Q2 is a bit lower. If you think about last Q2, we were essentially flat in the business just given timing of projects and seasonality. So we do still expect that full year revenue guide of 2% to 5% for the year, Q2 being a little bit less than Q1. And then as you look back to the back half of the year being right kind of in the middle of that guide. So again, we feel bullish on that business. We are essentially sold through 2024 in our backlogs. We’re selling into 2025. There could be some quarterly noise just getting projects in the ground. But at the end of the day, we feel great about that business and really the momentum in the overall company.
And if you think about us reaffirming guidance, we sit here today excited by the fact that this will be a breakthrough year for BrightView, especially with EBITDA and EBITDA margin expansion. And despite what happened in Q1 timing of snow or despite what happened with stepping over a tough comp with the hurricane, we really feel confident that getting EBITDA at a breakthrough year this year for the company is where we’re reaffirming, and we feel optimistic about that.
Operator: This concludes our Q&A. I will now hand back to Dale Asplund, CEO, for closing remarks.
Dale Asplund : Thank you, operator. As everyone can tell, we are very excited about the opportunities ahead, and I’m thrilled to be leading this great company through this important period. Our objectives are clear. We are committed to becoming One BrightView, growing profitably and creating meaningful shareholder value. With that, thank you. And operator, you may end the call.
Operator: Ladies and gentlemen, today’s call has now concluded. We’d like to thank you for your participation. You may now disconnect your lines.
