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. Development Services also includes the Company’s tree and nursery division, which grows and sells trees and manages removal and installation of specimen trees as part of many development 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. The following is a summary of certain financial data for each of the segments:

	Fiscal Year Ended			Nine Months Ended			Year Ended
	September 30, 2018			September 30, 2017			December 31, 2016

Maintenance Services	$	1,774,797		$	1,278,279		$	1,689,748
Development Services		583,318			437,748			498,907
Eliminations		(4,512	)		(2,448	)		(3,353	)
Net Service Revenues	$	2,353,603		$	1,713,579		$	2,185,302
Maintenance Services	$	289,792		$	210,298		$	263,801
Development Services		78,732			52,869			67,087
Corporate		(68,430	)		(45,989	)		(75,204	)
Adjusted EBITDA⁽¹⁾	$	300,094		$	217,178		$	255,684
Maintenance Services	$	45,548		$	40,255		$	55,554
Development Services		4,884			5,134			10,586
Corporate		35,993			5,244			9,469
Capital Expenditures	$	86,425		$	50,633		$	75,609

(1)

Presented below is a reconciliation of Net Loss to Adjusted EBITDA:

	Fiscal Year Ended			Nine Months Ended			Year Ended
	September 30, 2018			September 30, 2017			December 31, 2016

Net loss	$	(15,087	)	$	(13,955	)	$	(52,364	)
Interest expense		97,782			73,742			94,660
Income tax benefit		(66,248	)		(9,285	)		(32,503	)
Depreciation expense		75,296			56,473			79,255
Amortization expense		104,943			92,863			131,562
Establish public company financial reporting compliance (a)		4,145			800			5,492
Business transformation and integration costs (b)		25,422			10,783			24,094
Expenses related to initial public offering (c)		6,805			—			—
Debt extinguishment (d)		25,109			—			—
Equity-based compensation (e)		28,795			3,839			2,772
Management fees (f)		13,132			1,918			2,716
Adjusted EBITDA	$	300,094		$	217,178		$	255,684

(a)

Represents costs incurred to establish public company financial reporting compliance, including costs to comply with the requirements of Sarbanes-Oxley, the accelerated adoption of the new 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) rebranding of vehicle fleet; (iii) business integration costs and (iv) information technology infrastructure transformation costs and other.

(c)

Represents expenses incurred in connection with the IPO.

(d)

Represents losses on the extinguishment of debt.

(e)

Represents equity-based compensation expense recognized for equity incentive plans outstanding, including $19,590 related to the IPO in the fiscal year ended September 30, 2018.

(f)

Represents fees paid pursuant to a monitoring agreement terminated on July 2, 2018 in connection with the completion of the IPO.