Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — FY2016 Earnings Presentation
19 slides from Siteone Landscape Supply's earnings presentation, March 2017
Slide 1: Fourth Quarter & FY 2016 Earnings
Fourth Quarter & FY 2016 Earnings
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our 2017 Adjusted EBITDA outlook. S
Slide 3: Company and Industry Overview
Company and Industry Overview ■ Largest and only national wholesale distributor of landscape supplies ■ Large $17 billion highly fragmented market ■ More than four times the size of next competitor and only 10% market share(1) ■ Serving residential and commercial landscape professionals ■ Complement
Slide 4: SiteOne is Poised for Long-term Growth and Value Creation
SiteOne is Poised for Long-term Growth and Value Creation Current Strategy Leverage strengths of both a large and local company Fully exploit our scale, resources and capabilities Execute local market growth strategies Deliver superior value to our customers and Value Creation Levers supplie
Slide 5: Accelerating Performance and Growth Led by Recent Transformation
Accelerating Performance and Growth Led by Recent Transformation 2005 2016 (May) 2013 (Q4) Initial public offering Acquired UGM CD&R acquired 60% of JDL Strategy 2016 (Nov) & Brand Development Debt re-pricing & secondary offering 2014 2015 2016 2001 2007 2017 YTD New Management Acquired Acquired Acq
Slide 6: Fiscal Year 2016 Highlights
Fiscal Year 2016 Highlights Grew Net Sales by 14% year-over-year to $1.65 billion Expanded Gross Margin by 170 basis points to 31.3% Increased Adjusted EBITDA 26% to $134.3 million Adjusted EBITDA margin expanded 80 bps to 8.1% Generated Free Cash Flow of $64.1 million, converted at 209% o
Slide 7: Fiscal Year 2016 and Fourth Quarter 2016 Financial Details
Fiscal Year 2016 and Fourth Quarter 2016 Financial Details Financial performance Fiscal Year 2016 highlights Net sales ($M) Net sales increased by 14% YoY to $1.65 billion 1,800 +14% 1,648 Organic Sales increased by 3%; Organic Daily Sales 1,452 increased 4% 1,200 Acquisitions contributed $157
Slide 8: Fiscal Year 2016 and Fourth Quarter 2016 Financial Details
Fiscal Year 2016 and Fourth Quarter 2016 Financial Details Financial performance Fiscal Year 2016 highlights Net Income ($M) Net income for the year was $30.6 million, compared to +6% $28.9 million in 2015 35 30.6 28.9 30 25 Adjusted EBITDA increased 26% to $134.3 million, 20 compared to $106.5
Slide 9: Balance Sheet & Cash Flow Highlights
Balance Sheet & Cash Flow Highlights For the year ended January 1, 2017: Balance sheet & cash flow highlights ■ New capital structure put in place to support growth including acquisitions Net Debt $370.2M – New $275M 6-year term loan on April 29, 2016 – Term loan repriced to L + 450 bps and resized
Slide 10: Acquisitions are a Key Part of our Value Creation Strategy
Acquisitions are a Key Part of our Value Creation Strategy 2014 2014 2015 2015 2016 2016 2017 (Q1) 2017 YTD Eljay Shemin Hydro-Scape Aspen Valley Diamond Head AMC Blue Max Stone Forest Stockyard Green Resource Bissett Angelo's BISCO Tieco Glen Allen AB Supply Loma V
Slide 11: 2016 and First Quarter 2017 Acquisitions
2016 and First Quarter 2017 Acquisitions East Haven Aspen Valley SiteOne SiteOne Aspen Valley East Haven Chicago New Haven Closed in January 2017 Closed in December 2016 #1 Landscape accessories and #2 Hardscapes position in Chicago Strengthens #1 nursery position in New Haven, CT Expansio
Slide 12: First Quarter 2017 Acquisitions
First Quarter 2017 Acquisitions Stone Forest Angelo's SiteOne SiteOne Angelo’s East Haven Atlanta Detroit SiteOne Stone Forest Closed in March 2017 Closed in February 2017 #1 hardscapes position in the Detroit, MI metro Strengthens position as #1 Hardscapes distributor in Atlanta, GA Snow
Slide 13: First Quarter 2017 Acquisition
First Quarter 2017 Acquisition AB Supply Las Vegas SiteOne AB Supply Los Angeles Closed in March 2017 Leading hardscapes platform in the attractive Southern California and Las Vegas, NV markets Allows for full product line offering to local customers Cross-sell SiteOne full suite of products
Slide 14: Robust Pipeline of Opportunities Provides Accelerated Growth
Robust Pipeline of Opportunities Provides Accelerated Growth SiteOne is the only current industry consolidator 10% Significant sourcing advantage with 60+ associates scouting Our pipeline is deep and rapidly expanding 90% opportunity ~$15bn(1) M&A team in place to execute larger pipeline A
Slide 15: 2017 Outlook
2017 Outlook Underlying market trends remain positive Sales & marketing initiatives expected to accelerate market share gains Gross margin expansion expected to continue SG&A as a percentage of sales expected to be slightly down Anticipate additional acquisition activity from a robust pipe
Slide 16: Investment Highlights
Investment Highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 16
Slide 17: Appendix
Appendix Non-GAAP Reconciliations
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDA Reconciliation ($ in millions) FY2016 FY2015 FY2014 Q4 2016 Q4 2015 Reported net income $30.6 $28.9 $21.7 $(5.6) $(5.9) Income tax expense 21.3 19.5 14.4 (4.1) (2.7) Interest expense, net 22.1 11.4 9.1 6.7 3.7 Depreciation & amortization 37.0 31.2 20.3 9.6 8.
Slide 19: Non-GAAP Reconciliations (Continued)
Non-GAAP Reconciliations (Continued) Organic Sales Reconciliation Free Cash Flow Reconciliation ($ in millions) FY2016 FY2015 ($ in millions) FY2016 FY2015 Net Sales $1,648 $1,452 Cash flow from operating activities $72.9 $71.0 Organic Sales 1,317 1,278 A Acquired Sales 331 174 Less: capital expendi
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