Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — Q3 2021 Earnings Presentation
19 slides from Siteone Landscape Supply's earnings presentation, Nov 3, 2021
Slide 1: Third Quarter 2021 Earnings
SiteOne”™ LANDSCAPE SUPPLY Stronger Together Third Quarter 2021 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 2021 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 five times the size of next competitor and only ~13% market share(1) ■ Serving residential and commercial landscape professionals Distribution C
Slide 5: 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 6: Track record of performance and growth
Track record of performance and growth Net Sales Adjusted EBITDA (in Millions) 2,705 (in Millions) 260 2,358 2,112 ’15-’20 201 ’15-’20 1,862 Growth 176 Growth 1,648 33.3% 157 1,452 32.8% Sales $ 134 9.6% Adj. EBITDA $ +86% 107 +144% 32.0% 32.1% 8.5% 31.3% GM % 8.4% 8.3% Adj. EBITDA % 8.1% 29.6% +370
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 ~45 product lines in only ~21% of our target markets today… ~85 ~50 ~50 (1) Target markets as of Q4 2020 ar
Slide 8: Third Quarter 2021 highlights and recent developments
Third Quarter 2021 highlights and recent developments Third Quarter 2021 highlights (compared to third quarter 2020): ✓ Net sales increased 25% to $936.4 million ✓ Organic Daily Sales increased by 15% ✓ Gross profit increased 36% to $340.5 million; gross margin increased 310 basis points to 36.4% ✓
Slide 9: Review of Third Quarter 2021 financial results
Review of Third Quarter 2021 financial results Summary financials Financial highlights ($ in millions) +25% ■ Net sales increased 25% YoY to $936.4 million Net sales – Organic Daily Sales increased by 15% 751.9 936.4 – Acquired sales growth was $73.5 million, contributing 10% to Q3’20 Q3’21 the over
Slide 10: Balance sheet & cash flow highlights
Balance sheet & cash flow highlights Third Quarter 2021 Balance sheet & cash flow highlights (compared to prior-year period) ($ in millions) ■ Working capital increased to $715.2 million, compared to $709.6 million – Increase in inventory and receivables due to strong sales growth Working capital $7
Slide 11: Proven track record of successful acquisitions
Proven track record of successful acquisitions 2014 – 2015 2016 2017 2018 2019 2020 2021 YTD Total ▪ Eljay ▪ Hydro- ▪ Aspen Valley ▪ Pete Rose ▪ Cutting Edge ▪ Wittkopf ▪ Lucky Scape Landscape Landscape ▪ Diamond ▪ Stone Forest ▪ Atlantic Irrigation ▪ All Pro Supplies Head ▪ Blue Max Horticulture ▪
Slide 12: M&A continues to add significant value
M&A continues to add significant value Green Brothers Earth Works ✓ Closed on August 23rd ✓ Strengthens landscape supplies and hardscapes presence in the Atlanta market ✓ Purchasing synergies ✓ Cross-selling synergies SiteOne Green Brothers Source: Company data 12
Slide 13: Robust pipeline provides significant growth opportunity
Robust pipeline provides significant growth opportunity ✓ SiteOne is the leading industry consolidator 13% ✓ Significant sourcing advantage with 80+ associates scouting new growth opportunities 87% ✓ Our pipeline is deep and expanding ~$20bn market(1) ✓ Experienced M&A team recently expanded to driv
Slide 14: 2021 outlook
2021 outlook ✓ Market trends remain positive; sustaining growth against tough comparisons ✓ Key commercial and operational initiatives are expected to support market share gains and gross margin expansion ✓ Continued M&A activity with robust pipeline ✓ Raising 2021 Adjusted EBITDA expectation to $38
Slide 15: Investment highlights
Investment highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 15
Slide 16: Appendix
Appendix Non-GAAP Reconciliations
Slide 17: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation 2021 2020 2019 ($ in millions) Q3’21 Q2’21 Q1’21 Q4’20 Q3’20 Q2’20 Q1’20 Q4’19 Net income (loss) $80.0 $123.5 $7.4 $11.5 $48.2 $79.1 $(17.5) $2.5 Income tax (benefit) expense 19.1 36.8 (2.5) 1.6 13.8 25.6 (13.5) (5.6) Interest expense, net 4.3
Slide 18: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation ($ in millions) 2020 2019 2018 2017 2016 2015 Net income $121.3 $77.7 $73.9 $54.6 $30.6 $28.9 Income tax expense 27.5 13.8 1.3 18.0 21.3 19.5 Interest expense, net 31.0 33.4 32.1 25.2 22.1 11.4 Depreciation & amortization 67.2 59.5 52.3 43.1 37
Slide 19: Non-GAAP reconciliations
Non-GAAP reconciliations 2021 Organic Daily Sales Reconciliation 2021 2020 ($ in millions) FY’21 Q4’21 Q3’21 Q2’21 Q1’21 FY’20 Q4’20 Q3’20 Q2’20 Q1’20 Reported Net Sales -- -- $936.4 $1,083.9 $650.2 $2,704.5 $675.1 $751.9 $817.7 $459.8 A Organic Sales -- -- $843.7 $975.0 $613.3 $2,629.3 $641.0 $732.
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