The operations of the Company are conducted through two operating segments, Maintenance Services and Development Services, which are also its reportable segments.

Maintenance Services primarily consists of recurring landscape maintenance services and snow removal services as well as supplemental landscape enhancement services.

Development Services primarily consists of landscape architecture and development services for new construction and large scale redesign projects.

The operating segments identified above are determined based on the services provided, and they reflect the manner in which operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”) to allocate resources and assess performance. The CODM is the Company’s Chief Executive Officer. The CODM evaluates the performance of the Company’s operating segments based upon Net Service Revenues, Adjusted EBITDA and Capital Expenditures. Management uses Adjusted EBITDA to evaluate performance and profitability of each operating segment.

The accounting policies of the segments are the same as those described in Note 2 “Summary of Significant Accounting Policies.” Corporate includes corporate executive compensation, finance, legal and information technology which are not allocated to the segments. Eliminations represent eliminations of intersegment revenues. The Company does not currently provide asset information by segment, as this information is not used by management when allocating resources or evaluating performance.

During the second quarter of fiscal 2021, to align with changes in how we manage our business, the Company reclassified Net service revenues and expenses related to a second quarter fiscal 2020 acquisition from the Maintenance Services segment to the Development Services segment. Prior period segment results have been reclassified with no significant impact on segment results. There were no changes to the Company’s consolidated financial statements.

The following is a summary of certain financial data for each of the segments:


	Fiscal Year Ended
	September 30, 2021			September 30, 2020			September 30, 2019
Maintenance Services	$	1,982.9		$	1,729.4		$	1,813.4
Development Services		574.9			620.3			595.4
Eliminations		(4.2	)		(3.7	)		(4.2	)
Net Service Revenues	$	2,553.6		$	2,346.0		$	2,404.6
Maintenance Services	$	299.6		$	248.7		$	282.0
Development Services		65.2			81.6			81.7
Corporate		(62.5	)		(58.7	)		(58.6	)
Adjusted EBITDA(1)	$	302.3		$	271.6		$	305.1
Maintenance Services	$	52.4		$	40.6		$	65.4
Development Services		6.2			9.4			10.6
Corporate		2.6			2.7			13.9
Capital Expenditures	$	61.2		$	52.7		$	89.9

(1) Presented below is a reconciliation of Net (loss) income to Adjusted EBITDA:


	Fiscal Year Ended
	September 30, 2021		September 30, 2020			September 30, 2019
Net income (loss)	$	46.3	$	(41.6	)	$	44.4
Interest expense		42.3		64.6			72.5
Income tax (benefit) provision		4.6		(9.6	)		12.8
Depreciation expense		84.7		80.5			80.1
Amortization expense		52.3		55.8			56.3
Establish public company financial reporting compliance (a)		—		0.9			4.8
Business transformation and integration costs (b)		28.5		32.5			17.5
Offering-related expenses (c)		0.6		4.4			1.0
Equity-based compensation (d)		20.0		24.0			15.7
COVID-19 related expenses (e)		23.0		13.8			—
Changes in self-insured liability estimates (f)		—		24.1			—
Sale of tree company (g)		—		22.2			—
Adjusted EBITDA	$	302.3	$	271.6		$	305.1

(a)

Represents costs incurred to establish public company financial reporting compliance, including costs to comply with the requirements of Sarbanes-Oxley and the accelerated adoption of the revenue recognition standard (ASC 606 – Revenue from Contracts with Customers) and other miscellaneous costs.

(b)

Business transformation and integration costs consist of (i) severance and related costs; (ii) vehicle fleet rebranding costs; (iii) business integration costs and (iv) information technology infrastructure, transformation costs, and other.

(c)

Represents transaction related expenses incurred for IPO related litigation and completed or contemplated subsequent registration statements.

(d)

Represents equity-based compensation expense and related taxes recognized for equity incentive plans outstanding.

(e)

Represents expenses related to the Company’s response to the COVID-19 pandemic, principally temporary and incremental salary and related expenses, personal protective equipment and cleaning and supply purchases, and other.

(f)

Represents expenses related to changes in estimates and actuarial assumptions associated with the Company’s self-insured liability amounts for workers’ compensation, general liability, auto liability, and employee health care insurance programs, to reflect uncertainties associated with the current environment, including the COVID-19 pandemic.

(g)

Represents the goodwill impairment charge, realized loss on sale, and transaction related expenses related to the sale of BrightView Tree Company on September 30, 2020.