Outdoor Home Services Holdings LLC

Overview Key strengths Key risks Largest lawn care provider in the U.S., with about 30% market share. Narrow product focus on residential lawn services, lawn and turf services, and mosquito control services as it participates in a highly fragmented and competitive industry. Asset-light operating model has supported historical cash flow generation. Significant competition from local service providers and do-it-yourself (DIY) alternatives. Record of EBITDA margin expansion driven by operating efficiencies. Highly seasonal business, with about 65% of revenues generated in the summer and spring seasons. Elevated leverage due to sponsor ownership and aggressive financial policies. Potential near term refinancing risk with its revolving credit facility becoming current this year. The company?s $177 million revolving credit facility (undrawn as of Dec.

...April 25, 2024 (Editor's note: The original report, published April 25, 2024, relied on an incorrect calculation of S&P Global Ratings-adjusted EBITDA for fiscal year 2023. A corrected version, which reflects updated S&P Global Ratings-adjusted EBITDA metrics, a revised outlook section, and other related changes, follows.)...

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