Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — Q1 2022 Earnings Presentation
22 slides from Siteone Landscape Supply's earnings presentation, 2022
Slide 1: First Quarter 2022 Earnings
SiteOne”™ LANDSCAPE SUPPLY Stronger Together First Quarter 2022 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 2022 Adjusted EBITDA outlook. Some of t
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 wholesale distributor of landscape supplies ■ $23 billion highly fragmented market(1) ■ More than five times the size of next competitor and only ~15% market share(1) ■ Serving residential and commercial landscape professionals ■ Complementar
Slide 5: The SiteOne Vision – A True Company of Excellence
The SiteOne Vision – A True Company of Excellence ✓ Associates – Be a great place to work ✓ Customers – Deliver superior quality, service, and value ✓ Suppliers – Be the distributor of choice ✓ Shareholders – Achieve industry-leading financial performance and growth ✓ Communities – Be a good neighbo
Slide 6: SiteOne is poised for continued growth and margin enhancement
SiteOne is poised 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 integ
Slide 7: Track record of performance and growth
Track record of performance and growth Net Sales Adjusted EBITDA (in Millions) (in Millions) 415 3,476 ’16-’21 ’16-’21 2,705 Growth Growth 2,358 2,112 260 1,862 Sales $ 11.9% Adj. EBITDA $ 1,648 34.9% 201 +111% 176 +209% 33.3% 157 32.8% 134 32.1% 9.6% Adj. EBITDA % 31.3% 32.0% GM % 8.5% +360 bps 8.4
Slide 8: 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… ~75 ~60 ~50 (1) Target markets as of Q4 2021 ar
Slide 9: First Quarter 2022 highlights and recent developments
First Quarter 2022 highlights and recent developments First Quarter 2022 highlights (compared to first quarter 2021): ✓ Net sales increased 24% to $805.3 million ✓ Organic Daily Sales increased by 17% ✓ Gross profit increased 34% to $269.2 million; gross margin increased 240 basis points to 33.4% ✓
Slide 10: Review of First Quarter 2022 financial results
Review of First Quarter 2022 financial results Summary financials Financial highlights ($ in millions) ■ Net sales increased 24% YoY to $805.3 million +24% – Organic Daily Sales increased 17% due to solid demand and Net sales 805.3 pricing to combat inflationary pressures 650.2 Q1’21 Q1’22 – Acquire
Slide 11: Balance sheet & cash flow highlights
Balance sheet & cash flow highlights For the quarter ended April 3, 2022 Balance sheet & cash flow highlights (compared to prior-year period) ($ in millions) ■ Working capital increased to $788.4 million, compared to $538.5 million – Increased inventory reflecting supply chain uncertainty, product c
Slide 12: Proven track record of successful acquisitions
Proven track record of successful acquisitions 2014 - 2017 2018 2019 2020 2021 2022 YTD Total ▪ Pete Rose ▪ Cutting Edge ▪ Wittkopf Landscape ▪ Lucky Landscape ▪ JK Enterprise Supplies ▪ Atlantic Irrigation ▪ All Pro Horticulture ▪ Arizona Stone & ▪ BellStone ▪ Empire Supplies Solstice ▪ Village Nur
Slide 13: M&A continues to add significant value
M&A continues to add significant value JK Enterprise Landscape Supply ✓ Closed on March 18th ✓ Significantly expands landscape supplies and hardscapes footprint in Virginia and Maryland ✓ Purchasing synergies ✓ Cross-selling synergies SiteOne JK Enterprise Source: Company data 13
Slide 14: M&A continues to add significant value
M&A continues to add significant value BellStone Masonry Supply ✓ Closed on April 22nd ✓ Extends hardscapes presence in large DFW market ✓ Purchasing synergies ✓ Cross-selling synergies SiteOne BellStone Source: Company data 14
Slide 15: M&A continues to add significant value
M&A continues to add significant value Preferred Seed ✓ Closed on April 28th ✓ Establishes a leading agronomics presence in Upstate New York ✓ Purchasing synergies ✓ Cross-selling synergies SiteOne Preferred Source: Company data 15
Slide 16: Robust pipeline provides significant growth opportunity
Robust pipeline provides significant growth opportunity ✓ SiteOne is the leading industry consolidator 15% ✓ Significant sourcing advantage with 80+ associates scouting new growth opportunities 85% ✓ Our pipeline is deep and expanding ~$23bn market(1) ✓ Experienced M&A team recently expanded to driv
Slide 17: 2022 outlook
2022 outlook ✓ Market trends remain positive, sustaining growth against tough comparisons ✓ Key commercial and operational initiatives are expected to support market share gains and high-single digit organic daily sales growth ✓ Continued M&A activity with robust pipeline ✓ Full year Adjusted EBITDA
Slide 18: Investment highlights
Investment highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 18
Slide 19: Appendix
Appendix Non-GAAP Reconciliations
Slide 20: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation 2022 2021 2020 ($ in millions) Q1’22 Q4’21 Q3’21 Q2’21 Q1’21 Q4’20 Q3’20 Q2’20 Net income $32.3 $27.5 $80.0 $123.5 $7.4 $11.5 $48.2 $79.1 Income tax (benefit) expense 4.6 2.7 19.1 36.8 (2.5) 1.6 13.8 25.6 Interest expense, net 4.3 5.1 4.3 4.3 5
Slide 21: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation ($ in millions) 2021 2020 2019 2018 2017 2016 Net income $238.4 $121.3 $77.7 $73.9 $54.6 $30.6 Income tax expense 56.1 27.5 13.8 1.3 18.0 21.3 Interest expense, net 19.2 31.0 33.4 32.1 25.2 22.1 Depreciation & amortization 83.0 67.2 59.5 52.3 4
Slide 22: Non-GAAP reconciliations
Non-GAAP reconciliations 2022 Organic Daily Sales Reconciliation 2022 2021 ($ in millions) FY’22 Q4’22 Q3’22 Q2’22 Q1’22 FY’21 Q4’21 Q3’21 Q2’21 Q1’21 Reported Net Sales -- -- -- -- $805.3 $3,475.7 $805.2 $936.4 $1,083.9 $650.2 A Organic Sales -- -- -- -- $760.1 $3,386.4 $772.1 $908.2 $1,057.7 $648.
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