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 June 30,						Nine Months Ended June 30,
	2019			2018			2019			2018
Maintenance Services	$	492,105		$	474,581		$	1,357,952		$	1,341,375
Development Services		166,319			157,379			424,692			433,620
Eliminations		(1,215	)		(1,630	)		(2,785	)		(3,195	)
Net service revenues	$	657,209		$	630,330		$	1,779,859		$	1,771,800
Maintenance Services	$	91,138		$	91,349		$	204,800		$	210,241
Development Services		26,966			21,953			55,018			55,284
Corporate		(16,196	)		(15,469	)		(46,687	)		(49,649	)
Adjusted EBITDA⁽¹⁾	$	101,908		$	97,833		$	213,131		$	215,876
Maintenance Services	$	24,434		$	14,292		$	54,449		$	33,759
Development Services		3,242			2,182			9,902			3,955
Corporate		6,940			11,174			12,874			34,029
Capital expenditures	$	34,616		$	27,648		$	77,225		$	71,743

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

	Three Months Ended					Nine Months Ended
	June 30, 2019		June 30, 2018			June 30, 2019		June 30, 2018
Net income (loss)	$	31,709	$	(1,397	)	$	19,276	$	(4,139	)
Interest expense		18,360		27,499			54,429		77,481
Income tax expense (benefit)		11,033		1,247			6,582		(58,150	)
Depreciation expense		20,884		17,839			61,851		56,642
Amortization expense		13,936		29,247			42,873		89,611
Establish public company financial reporting compliance (a)		1,140		555			2,832		3,372
Business transformation and integration costs (b)		4,431		2,466			13,354		21,402
Expenses related to initial public offering (c)		108		4,678			108		6,808
Equity-based compensation (d)		307		14,951			11,826		20,753
Management fees (e)		—		748			—		2,096
Adjusted EBITDA	$	101,908	$	97,833		$	213,131	$	215,876

(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 expenses incurred for the IPO in fiscal 2018 and subsequent registration statements.

(d)	Represents equity-based compensation expense recognized for equity incentive plans outstanding, including $7,328 related to the IPO during the nine months ended June 30, 2019.

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