Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — Q2 2016 Earnings Presentation
13 slides from Siteone Landscape Supply's earnings presentation, 2016
Slide 1: Second Quarter 2016 Earnings
Second Quarter 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 2016 Adjusted EBITDA outlook.
Slide 3: Company and Industry Overview
Company and Industry Overview ■ Largest and only national wholesale distributor of landscape supplies ■ Approximately four times the size of next competitor and only 9% market share(1) ■ Large $16 billion highly fragmented market ■ Serving residential and commercial landscape professionals ■ Complem
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 large and local company Superior value propositions to our customers and suppliers Fully exploit our scale Develop and execute local market strategies Close and integrate high value-added
Slide 5: Second Quarter 2016 and Recent Highlights
Second Quarter 2016 and Recent Highlights Successfully completed IPO in May Net Sales increased by 7% year-over-year to $513.4 million Gross Margin increased by 220 basis points to 32.8% Net income of $26.9 million includes $7.4 million of IPO and debt recapitalization costs Adjusted EBITD
Slide 6: Second Quarter 2016 Financial Details
Second Quarter 2016 Financial Details Net Sales ($M) Financial Highlights $481.5 $513.4 ■ Net sales increased 7% year-over-year to $513.4 million Q2 - 2015 Q2 - 2016 – Impact from strong pull-forward in Q1 2016 Gross Profits ($M) ■ Gross profit increased 14% to $168.5 million $147.5 $168.5 – Gross m
Slide 7: Balance Sheet & Cash Flow Highlights
Balance Sheet & Cash Flow Highlights Financial Highlights For the three months ended July 3, 2016: ■ New capital structure put in place to support growth including acquisitions Net Debt(1) $397.3 million – New $275M 6-year term loan on April 29, 2016 – ABL facility upsized to $325M (5-year maturity)
Slide 8: Acquisitions are a Key Part of our Value Creation Strategy
Acquisitions are a Key Part of our Value Creation Strategy Year Target Location Strategic Rationale ■ 9 locations in Western Canada ■ #1 irrigation platform in Western Canada ■ 3 locations in HI ■ #1 irrigation platform in Hawaii 2014 ■ 1 location in TN ■ #1 nursery position in Memphis metro ■ 5 loc
Slide 9: Recent Acquisitions – Continued Execution
Recent Acquisitions – Continued Execution Bissett New York, NY Existing SiteOne Bissett Closed in the third quarter of fiscal 2016 Leads to #1 nursery position in Long Island & NYC markets Allows for full product line offering to local customers Purchasing and fixed cost synergies Cross-se
Slide 10: Outlook
Outlook Underlying market trends remain positive On track to achieve commercial and operational improvement targets Forecasting strong sales and profit growth for the full year Anticipate closing additional acquisitions in the second half of the year Reiterate 2016 Adjusted EBITDA expectat
Slide 11: Investment Highlights
Investment Highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 11
Slide 12: Appendix
Appendix Adjusted EBITDA Reconciliation
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in millions) TTM (7/3/2016) Q2 2016 Q2 2015 Reported net income 26.8 26.9 33.2 Income tax expense 19.4 18.1 21.1 Interest expense, net 15.4 6.5 2.7 Depreciation & amortization 34.7 9.1 7.8 EBITDA $96.3 $60.6 $64.8 A Stock-based compensation 4.4 2.2 0.8 B Loss on sal
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