Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — Q1 2023 Earnings Presentation
20 slides from Siteone Landscape Supply's earnings presentation, May 3, 2023
Slide 1: First Quarter 2023 Earnings
SiteOne™ LANDSCAPE SUPPLY Stronger Together First Quarter 2023 Earnings
Slide 2: Disclaimer
Disclaimer Forw ard-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forw ard-looking statements may include, but are not limited to, statements relating to our 2022 Adjusted EBITDA outlook and our
Slide 3: Conference call agenda
Conference call agenda Introduction John Guthrie, CFO Business Update Doug Black, Chairman and CEO Financial Update John Guthrie, CFO Development Update Scott Salmon, EVP Strategy & Development Closing & Outlook Doug Black, Chairman and CEO Q&A 3
Slide 4: Company and industry overview
Company and industry overview ■ Largest and only national full product line wholesale distributor of landscape supplies ■ $25 billion highly fragmented market(1) ■ More than four times the size of next competitor and only ~16% market share(1) ■ Serving residential and commercial landscape profession
Slide 5: SiteOne is built for continued growth and margin enhancement
SiteOne is built for continued growth and margin enhancement Current strategy ✓ Leverage strengths of both large and local company ■ Fully exploit our scale, resources and capabilities ■ Execute local market growth strategies ■ Deliver superior value to our customers and suppliers ■ Close and integr
Slide 6: Track record of performance and growth
Track record of performance and growth Net Sales Adjusted EBITDA ($ in Millions) ($ in Millions) $464 $4,015 ’16-’22 $415 $3,476 ’16-’22 Growth Growth $2,705 35.4% $2,358 34.9% Sales $ $260 Adj. EBITDA $ $2,112 11.9% $1,862 33.3% +144% $201 11.6% +246% $1,648 $176 32.8% $157 GM % $134 32.0% 32.1% 9.
Slide 7: Significant room to grow across product lines
Significant room to grow across product lines # of markets (1) Missing either Missing both Full Product No Hardscapes or Hardscapes Line Offering Presence Nursery and Nursery SiteOne offers all ~55 product lines in only ~21% of our target markets today… ~70 ~65 ~50 (1) Target markets as of Q4 2022 a
Slide 8: First Quarter 2023 highlights
First Quarter 2023 highlights First Quarter 2023 highlights (compared to First Quarter 2022): ✓ Net sales increased 4% to $837.4 million ✓ Organic Daily Sales decreased 2% ✓ Gross profit increased 7% to $287.1 million; gross margin expanded 90 basis points to 34.3% ✓ SG&A as a percentage of Net sale
Slide 9: Review of First Quarter 2023 financial results
Review of First Quarter 2023 financial results Summary financials Financial highlights (compared to prior-year period) (in millions) ■ Net sales increased 4% YoY to $837.4 Million – Organic Daily Sales decreased 2% primarily due to Net sales $805.3 $837.4 unfavorable weather in the Western and North
Slide 10: Balance sheet & cash flow highlights
Balance sheet & cash flow highlights For the quarter ended April 2, 2023 Balance sheet & cash flow highlights (compared to prior-year period) (in millions) ■ Working capital increased to $959.5 million, compared to $788.4 million – Larger seasonal increase in inventory in preparation for spring sell
Slide 11: Proven track record of successful acquisitions
Proven track record of successful acquisitions 2014-2018 2019 2020 2021 2022 2023 Total ▪ Cutting Edge ▪ Wittkopf Landscape ▪ Lucky Landscape ▪ JK Enterprise ▪ J&J Materials Supplies ▪ All Pro Horticulture ▪ Arizona Stone & ▪ BellStone Masonry ▪ Triangle Landscape ▪ Empire Supplies Solstice Supplies
Slide 12: M&A continues to add significant value: J&J Materials
M&A continues to add significant value J&J Materials ✓Closed on March 14th SiteOne ✓Extends our leading hardscapes J&J presence in the Rhode Island and Southeastern Massachusetts markets ✓Purchasing synergies ✓Cross-selling synergies Source: Company data 12
Slide 13: M&A continues to add significant value: Triangle Landscape Supplies
M&A continues to add significant value Triangle Landscape Supplies SiteOne Triangle ✓Closed on March 28th ✓Establishes a leading landscape supplies and hardscapes presence in the Raleigh - Durham market ✓Cross-selling synergies ✓Purchasing synergies Source: Company data 13
Slide 14: Robust pipeline provides significant growth opportunity
Robust pipeline provides significant growth opportunity ✓ SiteOne is the leading industry consolidator 16% ✓ Significant sourcing advantage with 80+ associates scouting new growth opportunities 84% ✓ Our pipeline is deep and expanding ~$25bn market(1) ✓ Experienced M&A team driving strong acquisitio
Slide 15: 2023 Outlook
2023 Outlook ✓ Overall market expected to be down with weakness in new residential construction partially offset by flat to modest growth in other end markets ✓ Key commercial and operational initiatives expected to support market share gains ✓ Organic Daily Sales growth expected to be flat to down
Slide 16: Investment highlights
Investment highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 16
Slide 17: Appendix
Appendix Non-GAAP Reconciliations
Slide 18: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation 2023 2022 2021 ($ in millions) Q1’23 Q4’22 Q3’22 Q2’22 Q1’22 Q4’21 Q3’21 Q2’21 Reported Net income (loss) $(4.5) $(0.9) $73.3 $140.7 $32.3 $27.5 $80.0 $123.5 Income tax (benefit) expense (2.7) (4.6) 22.9 44.8 4.6 2.7 19.1 36.8 Interest expense,
Slide 19: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation ($ in millions) 2022 2021 2020 2019 2018 2017 2016 Reported Net income $245.4 $238.4 $121.3 $77.7 $73.9 $54.6 $30.6 Income tax expense 67.7 56.1 27.5 13.8 1.3 18.0 21.3 Interest expense, net 20.0 19.2 31.0 33.4 32.1 25.2 22.1 Depreciation & amo
Slide 20: Non-GAAP reconciliations
Non-GAAP reconciliations 2023 Organic Daily Sales Reconciliation 2023 2022 ($ in millions) FY’23 Q4’23 Q3’23 Q2’23 Q1’23 FY’22 Q4’22 Q3’22 Q2’22 Q1’22 Reported Net Sales -- -- -- -- $837.4 $4,014.5 $890.0 $1,102.6 $1,216.6 $805.3 A Organic Sales -- -- -- -- $777.6 $3,929.3 $857.0 $1,068.9 $1,201.4 $
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