Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — Q2 2020 Earnings Presentation
15 slides from Siteone Landscape Supply's earnings presentation, Jul 29, 2020
Slide 1: Second Quarter 2020 Earnings
Second Quarter 2020 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 2020 Adjusted EBITDA outlook. S
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 ■ $20 billion highly fragmented market(1) ■ More than four times the size of next competitor and only ~12% market share(1) ■ Serving residential and commercial landscape professionals Distribution C
Slide 5: COVID-19 Update and Second Quarter 2020
COVID-19 Update and Second Quarter 2020 COVID-19 Update: Operating safely and successfully in the COVID-19 environment Market recovered as restrictions were eased Strong outdoor living trend helping to drive further demand Second Quarter 2020 Financial Highlights (Compared to Second Quarter 20
Slide 6: Review of Second Quarter 2020 financial results
Review of Second Quarter 2020 financial results Summary financials Financial highlights ($ in millions) ■ Net sales increased 9% YoY to $817.7 million – Organic Daily Sales increased by 3% Net sales 817.7 752.4 – Acquired sales growth was $42.6 million, contributing 6% to the overall growth rate Q2’
Slide 7: Balance sheet & cash flow highlights
Balance sheet & cash flow highlights Second Quarter 2020 Balance sheet & cash flow highlights ($ in millions) ■ Working capital increased to $583.8 million, compared to $535.7 million in the prior-year period – Reflects decision to increase cash on hand to $163.8 million from $25.2 Net debt1 $476.5
Slide 8: Proven track record of successful acquisitions
Proven track record of successful acquisitions 2014 – 2015 2016 2017 2018 2019 2020 YTD Total Eljay Hydro- Aspen Valley Pete Rose Cutting Edge Wittkopf Scape Landscape Diamond Head Stone Forest Atlantic Irrigation All Pro Supplies Blue Max Horticulture Stockyard Angelo's
Slide 9: Robust pipeline provides significant growth opportunity
Robust pipeline provides significant growth opportunity Restarting acquisition activities 12% SiteOne is the leading industry consolidator 88% Significant sourcing advantage with 80+ associates scouting new growth opportunities ~$20bn market(1) Our pipeline is deep and expanding M&A team i
Slide 10: 2020 outlook
2020 outlook Continue to focus on operating safely and successfully in a COVID-19 environment Near-term market trends are positive Continuing to pursue key commercial and operational initiatives Resuming M&A activity with expectation of closing deals in 2020 Reintroducing 2020 guidance wit
Slide 11: Investment highlights
Investment highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 11
Slide 12: Appendix
Appendix Non-GAAP Reconciliations
Slide 13: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation 2020 2019 2018 ($ in millions) Q2’20 Q1’20 Q4’19 Q3’19 Q2’19 Q1’19 Q4’18 Q3 ‘18 Net income (loss) $79.1 $(17.5) $2.5 $34.6 $64.7 $(24.1) $(2.1) $29.9 Income tax expense (benefit) 25.6 (13.5) (5.6) 9.7 19.3 (9.6) (5.6) 2.4 Interest expense, net
Slide 14: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation ($ in millions) 2019 2018 2017 2016 2015 Net income $77.7 $73.9 $54.6 $30.6 $28.9 Income tax expense 13.8 1.3 18.0 21.3 19.5 Interest expense, net 33.4 32.1 25.2 22.1 11.4 Depreciation & amortization 59.5 52.3 43.1 37.0 31.2 EBITDA $184.4 $159.
Slide 15: Non-GAAP reconciliations
Non-GAAP reconciliations 2020 Organic Daily Sales Reconciliation 2020 2019 ($ in millions) FY’20 Q4’20 Q3’20 Q2’20 Q1’20 FY’19 Q4’19 Q3’19 Q2’19 Q1’19 Reported Net Sales -- -- -- $817.7 $459.8 $2,357.5 $535.0 $652.8 $752.4 $417.3 A Organic Sales -- -- -- $758.2 $434.8 $2,292.9 $513.6 $630.8 $735.5 $
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