Siteone Landscape Supply, Inc. · NYSE:SITE

Siteone Landscape Supply — Q1 2019 Earnings Presentation

22 slides from Siteone Landscape Supply's earnings presentation, 2019

  1. Slide 1: First Quarter 2019 Earnings

    SiteOne™ LANDSCAPE SUPPLY Stronger Together First Quarter 2019 Earnings

  2. 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 2019 Adjusted EBITDA outlook. S

  3. 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

  4. Slide 4: Company and industry overview

    Company and industry overview ■ Largest and only national wholesale distributor of landscape supplies ■ $19 billion highly fragmented market(1) ■ More than four times the size of next competitor and only ~11% market share(1) ■ Serving residential and commercial landscape professionals Distribution C

  5. Slide 5: SiteOne is poised for long-term growth and margin enhancement

    SiteOne is poised for long-term 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

  6. Slide 6: Track record of performance and growth

    Track record of performance and growth Net Sales Adjusted EBITDA 176 (in Millions) (in Millions) 2,112 157 1,862 ’14-’18 Growth ’14-’18 Growth 1,648 134 1,452 Sales $ +79% 107 Adj. EBITDA $ 1,177 +138% 32.0% 32.1% 8.4% 8.3% GM % +570 bps 74 31.3% 8.1% Adj. EBITDA % 29.6% 7.3% +200 bps 26.4% 6.3% FY

  7. 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 ~21% of our target markets today… ~80 ~50 ~50 (1) Target markets are represented

  8. Slide 8: First Quarter 2019 highlights and recent developments

    First Quarter 2019 highlights and recent developments First Quarter 2019 highlights:  Net sales increased by 12% to $417.3 million  Organic Daily Sales increased by 5%  Gross profit increased by 20% to $130.0 million; gross margin expanded 200 bps to 31.2%  Net loss of $24.1 million, compared to

  9. Slide 9: Review of First Quarter 2019 financial results

    Review of First Quarter 2019 financial results Summary financials Financial highlights ($ in millions) ■ Net sales increased 12% YoY to $417.3 million – Organic Daily Sales increased by 5% Net sales 371.4 417.3 – Acquired sales growth was $29.5 million, or 8% of overall growth Q1’18 Q1’19 ■ Gross pr

  10. Slide 10: Review of First Quarter 2019 balance sheet & cash flow highlights

    Review of First Quarter 2019 balance sheet & cash flow highlights First Quarter 2019 Balance sheet & cash flow highlights ($ in millions) ■ Working Capital increased to $482.9 million, compared to $460.5 million in the prior year period – Excluding lease accounting change, working capital would have

  11. Slide 11: Proven track record of successful acquisitions

    Proven track record of successful acquisitions 2014 – 2015 2016 2017 2018 2019 YTD Total  Eljay  Hydro-Scape  Aspen Valley  Pete Rose  Cutting Edge  Diamond Head  Blue Max  Stone Forest  Atlantic Irrigation  All Pro Horticulture  Stockyard  Bissett  Angelo's  Village Nurseries  Landsc

  12. Slide 12: M&A continues to add significant value: Cutting Edge

    M&A continues to add significant value Cutting Edge  Closed in January 2019  Leading hardscapes and landscape supplies platform in Phoenix metro  Cross-sell opportunities  Purchasing synergies SiteOne existing Cutting Edge Source: Company data 12

  13. Slide 13: M&A continues to add significant value: All Pro Horticulture

    M&A continues to add significant value All Pro Horticulture  Closed in February 2019  Leading agronomics platform on Long Island, NY  Purchasing synergies  Cross-sell opportunities SiteOne existing All Pro Source: Company data 13

  14. Slide 14: M&A continues to add significant value: Landscape Depot Supply

    M&A continues to add significant value Landscape Depot Supply  Closed in April 2019  Leading hardscapes & landscape supplies position in Boston, MA  Cross-sell opportunities  Purchasing synergies SiteOne existing Landscape Depot Supply Source: Company data 14

  15. Slide 15: M&A continues to add significant value: Fisher's Landscape Depot

    M&A continues to add significant value Fisher’s Landscape Depot  Closed in April 2019  Leading hardscapes & landscape supplies position in Western Ontario  Cross-sell opportunities  Purchasing synergies SiteOne existing Fisher’s Landscape Depot Source: Company data 15

  16. Slide 16: Robust pipeline provides significant growth opportunity

    Robust pipeline provides significant growth opportunity  SiteOne is the leading industry consolidator 11%  Significant sourcing advantage with 70+ associates scouting new growth opportunities 89%  Our pipeline is deep and expanding ~$19bn market(1)  M&A team in place to execute our acquisition p

  17. Slide 17: 2019 outlook

    2019 outlook  Underlying market trends remain positive  Market share gains expected to continue  Expect robust M&A activity from a strong pipeline  2019 Adjusted EBITDA expectation of $193 million to $207 million, representing year-over-year growth of 10-18%(1)  Adjusted EBITDA margin expected

  18. 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

  19. Slide 19: Appendix

    Appendix Non-GAAP Reconciliations

  20. Slide 20: Non-GAAP reconciliations

    Non-GAAP reconciliations Adjusted EBITDA Reconciliation 2019 2018 2017 ($ in millions) Q1’19 Q4’18 Q3 ‘18 Q2 ‘18 Q1 ‘18 Q4 ‘17 Q3 ‘17 Q2 ‘17 Net income (loss) $(24.1) (2.1) 29.9 63.1 (17.0) 4.0 16.9 44.2 Income tax expense (benefit) (9.6) (5.6) 2.4 14.7 (10.2) (11.4) 10.7 26.3 Interest expense, net

  21. Slide 21: Non-GAAP reconciliations

    Non-GAAP reconciliations Adjusted EBITDA Reconciliation ($ in millions) 2018 2017 2016 2015 2014 Net income $73.9 $54.6 $30.6 $28.9 $21.7 Income tax expense 1.3 18.0 21.3 19.5 14.4 Interest expense, net 32.1 25.2 22.1 11.4 9.1 Depreciation & amortization 52.3 43.1 37.0 31.2 20.3 EBITDA $159.6 $140.9

  22. Slide 22: Non-GAAP reconciliations

    Non-GAAP reconciliations Organic Daily Sales Reconciliation 2019 2018 ($ in millions) Q1 Q1 Net Sales $417.3 $371.4 Organic Sales $377.3 $360.9 A Acquisition contribution $40.0 $10.5 Selling Days 64 64 Organic Daily Sales $5.9 $5.6 A Represents Net Sales from acquired branches that have not been und

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