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 our tree and nursery division, which grows and sells trees as well as 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” in the notes to our consolidated financial statements in the Annual Report on Form 10-K for the fiscal year ended September 30, 2018. 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:

	Three Months Ended December 31,
	2018			2017
Maintenance Services	$	392,533		$	406,690
Development Services		134,396			145,223
Eliminations		(916	)		(824	)
Net service revenues	$	526,013		$	551,089
Maintenance Services	$	48,706		$	60,610
Development Services		17,018			20,450
Corporate		(15,604	)		(14,638	)
Adjusted EBITDA⁽¹⁾	$	50,120		$	66,422
Maintenance Services	$	11,082		$	6,662
Development Services		3,194			911
Corporate		3,052			22,215
Capital expenditures	$	17,328		$	29,788

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

	Three Months Ended
	December 31, 2018			December 31, 2017
Net (loss) income	$	(8,827	)	$	19,324
Interest expense		17,124			24,913
Income tax benefit		(3,135	)		(51,539	)
Depreciation expense		19,281			21,072
Amortization expense		15,130			31,046
Establish public company financial reporting compliance (a)		383			2,632
Business transformation and integration costs (b)		4,256			16,809
Equity-based compensation (c)		5,908			1,526
Management fees (d)		—			639
Adjusted EBITDA	$	50,120		$	66,422

(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 new revenue recognition standard (ASU 2014-09 – 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 equity-based compensation expense recognized for equity incentive plans outstanding, including $3,957 related to the IPO during the three months ended December 31, 2018.

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