Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — Q4 2024 Earnings Presentation
23 slides from Siteone Landscape Supply's earnings presentation, Feb 12, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings
Fourth Quarter and Full Year 2024 Earnings
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our 2024 Adjusted EBITDA outlook and our sh
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 ■ $25 billion highly fragmented market(1) ■ More than three times the size of next competitor and only ~18% market share(1) ■ Serving residential and commercial landscape professio
Slide 5: SiteOne is built for continued growth and margin enhancement
SiteOne is built for continued growth and margin enhancement Current strategy ✓ Leverage strengths of both large and local company ■ Fully exploit our scale, resources and capabilities ■ Execute local market growth strategies ■ Deliver superior value to our customers and suppliers ■ Close and integr
Slide 6: Track record of performance and growth
Track record of performance and growth Net Sales Adjusted EBITDA ($ in Millions) ($ in Millions) ’16-’24 ’16-’24 $4,301 $4,541 $464 $4,015 Growth $415 Growth $3,476 $411 $378 $2,705 Sales $ Adj. EBITDA $ $2,358 +176% +182% $2,112 $260 $1,862 GM % $201 $1,648 $176 Adj. EBITDA +310bps $157 $134 % +20
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 ~50 product lines in only ~25% of our target markets today… ~60 ~70 ~60 (1) Target markets as of Q4 2024 ar
Slide 8: Fiscal Year 2024 highlights
Fiscal Year 2024 highlights Fiscal Year 2024 highlights (compared to Fiscal Year 2023): ✓ Net sales increased 6% to $4.54 billion and Organic Daily Sales decreased 1% ✓ Gross profit increased 5% to $1.56 billion; gross margin decreased 30 basis points to 34.4% ✓ SG&A as a percentage of Net sales inc
Slide 9: Review of Fourth Quarter 2024 financial results
Review of Fourth Quarter 2024 financial results Summary financials Financial highlights (compared to prior-year period) (in millions) +5% ■ Net sales increased 5% YoY to $1.01 billion – Organic Daily Sales increased 1% driven by higher volume, Net sales $1,013.1 partially offset by lower pricing due
Slide 10: Review of Fiscal Year 2024 financial results
Review of Fiscal Year 2024 financial results Summary financials Financial highlights (in millions) +6% ■ Net sales increased 6% YoY to $4.54 billion – Organic Daily Sales decreased 1% due to price deflation for $4,540.6 commodity products, offsetting volume growth Net sales $4,301.2 – Acquired sales
Slide 11: Balance sheet & cash flow highlights
Balance sheet & cash flow highlights Year ended December 29, 2024 Balance sheet & cash flow highlights (compared to prior-year period) ($ in millions) ■ Working capital increased to $908.8 million, compared to $827.0 million – Increase attributable to additional working capital from acquisitions Wor
Slide 12: Balanced Approach to Capital Allocation – 2024 Performance
Balanced Approach to Capital Allocation – 2024 Performance ✓Healthy cash flow generation ✓Low capex requirements Return capital to shareholders through share repurchase ✓Strong balance sheet Maintain strong balance $52 million in shares repurchased sheet for strategic flexibility 1.1x Net Debt / Adj
Slide 13: Proven track record of successful acquisitions
Proven track record of successful acquisitions 2014 – 2020 2021 2022 2023 2024 2025 Total 2019 ▪ Wittkopf ▪ Lucky Landscape ▪ JK Enterprise ▪ J&J Materials ▪ Eggemeyer ▪ Pacific Nurseries Landscape ▪ Arizona Stone & ▪ BellStone Masonry ▪ Triangle ▪ Devil Mountain Supplies Solstice Landscape Wholesal
Slide 14: M&A continues to add significant value: OakStreet Wholesale Nursery
M&A continues to add significant value OakStreet Wholesale Nursery ✓ Closed on December 12th ✓ Makes us the leading wholesale nursery distributor in the Dallas-Fort Worth market ✓ Purchasing synergies ✓ Cross-selling synergies SiteOne OakStreet 14 Source: Company data
Slide 15: M&A continues to add significant value: Custom Stone
M&A continues to add significant value Custom Stone ✓ Closed on December 20th ✓ Extends our leading hardscape presence in three high-growth Texas markets—Dallas- Fort Worth, Houston, and Austin ✓ Purchasing synergies ✓ Cross-selling synergies SiteOne Custom Stone 15 Source: Company data
Slide 16: M&A continues to add significant value: Pacific Nurseries
M&A continues to add significant value Pacific Nurseries ✓ Closed on January 2nd ✓ Acquired by our Devil Mountain joint venture partner ✓ Expands our leading wholesale Devil Mountain nursery presence in the Bay Area Pacific Nurseries ✓ Purchasing synergies ✓ Cross-selling synergies 16 Source: Compan
Slide 17: Robust pipeline provides significant growth opportunity
Robust pipeline provides significant growth opportunity ✓ SiteOne is the leading industry consolidator 18% ✓ Significant sourcing advantage with 80+ leaders scouting new growth opportunities 82% ✓ Our pipeline is deep and expanding ~$25bn market(1) ✓ Experienced M&A team driving strong acquisition g
Slide 18: 2025 Outlook
2025 Outlook ✓ Uncertainty in interest rates, potential tariffs, and labor supply could affect end markets ✓ Demand expected to be flat to slightly up with modest maintenance growth and resilient repair and upgrade, residential, and commercial new construction ✓ Price deflation in select commodity p
Slide 19: Investment highlights
Investment highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 19
Slide 20: Appendix
Appendix Non-GAAP Reconciliations
Slide 21: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation 2024 2023 ($ in millions) FY’24 Q4’24 Q3’24 Q2’24 Q1’24 FY’23 Q4’23 Q3’23 Q2’23 Q1’23 Reported Net income (loss) $124.4 $(21.5) $44.6 $120.6 $(19.3) $173.4 $(3.4) $57.3 $124.0 $(4.5) Income tax expense (benefit) 36.0 (10.1) 15.8 40.0 (9.7) 49.8
Slide 22: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation ($ in millions) 2024 2023 2022 2021 2020 2019 2018 2017 2016 Reported Net income $124.4 $173.4 $245.4 $238.4 $121.3 $77.7 $73.9 $54.6 $30.6 Income tax expense 36.0 49.8 67.7 56.1 27.5 13.8 1.3 18.0 21.3 Interest expense, net 31.9 27.1 20.0 19.2
Slide 23: Non-GAAP reconciliations
Non-GAAP reconciliations 2024 Organic Daily Sales Reconciliation 2024 2023 ($ in millions) FY’24 Q4’24 Q3’24 Q2’24 Q1’24 FY’23 Q4’23 Q3’23 Q2’23 Q1’23 Reported Net Sales $4,540.6 $1,013.1 $1,208.8 $1,413.9 $904.8 $4,301.2 $965.0 $1,145.1 $1,353.7 $837.4 A Organic Sales $4,134.1 $912.3 $1,089.6 $1,29
SiteOne Landscape Supply — Q4 2024 Earnings Presentation on 6ix