Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — Q4 2021 Earnings Presentation
21 slides from Siteone Landscape Supply's earnings presentation, Feb 16, 2022
Slide 1: Fourth Quarter and Full Year 2021 Earnings
Fourth Quarter and Full Year 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 2022 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 ■ $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 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) (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 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 ~55 product lines in only ~21% of our target markets today… ~75 ~60 ~50 (1) Target markets as of Q4 2021 ar
Slide 8: Fiscal Year 2021 highlights
Fiscal Year 2021 highlights Fiscal Year 2021 highlights (compared to Fiscal Year 2020): ✓ Net sales increased 29% to $3.5 billion ✓ Organic Daily Sales increased by 22% ✓ Gross profit increased 35% to $1.2 billion; gross margin increased 160 basis points to 34.9% ✓ SG&A as a percentage of Net sales
Slide 9: Review of Fourth Quarter 2021 financial results
Review of Fourth Quarter 2021 financial results Summary financials Financial highlights ($ in millions) +19% ■ Net sales increased 19% YoY to $805.2 million Net sales – Four fewer selling days compared to the prior year period 675.1 805.2 – Organic Daily Sales increased by 21% driven by solid Q4’20
Slide 10: Review of Fiscal Year 2021 financial results
Review of Fiscal Year 2021 financial results Summary financials Financial highlights (compared to prior year period) ($ in millions) +29% ■ Net sales increased 29% to $3.5 billion Net sales – Organic Daily Sales increased by 22% 3,475.7 2,704.5 – Acquired sales growth was $241.6 million, contributin
Slide 11: Balance sheet & cash flow highlights
Balance sheet & cash flow highlights For the year ended January 2, 2022 Balance sheet & cash flow highlights (compared to prior-year period) ($ in millions) ■ Working capital increased to $615.9 million, compared to $483.0 million – Increased inventory reflected higher stocking levels to prevent sup
Slide 12: Proven track record of successful acquisitions
Proven track record of successful acquisitions 2014 – 2015 2016 2017 2018 2019 2020 2021 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 ▪ Ariz
Slide 13: M&A continues to add significant value: Semco Stone
M&A continues to add significant value Semco Stone St. Louis Cincinnati ✓ Closed on November 12th ✓ One of the largest natural stone distributors in the Midwest ✓ Purchasing synergies ✓ Cross-selling synergies Kansas City Columbus SiteOne Semco Stone Source: Company data 13
Slide 14: M&A continues to add significant value: Seffner Rock & Gravel
M&A continues to add significant value Seffner Rock & Gravel ✓ Closed on December 1st ✓ Establishes hardscapes and bulk material presence in Florida ✓ Purchasing synergies ✓ Cross-selling synergies SiteOne Seffner Rock & Gravel Source: Company data 14
Slide 15: 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 ~$23bn market(1) ✓ Experienced M&A team recently expanded to driv
Slide 16: 2022 outlook
2022 outlook ✓ Market trends remain positive, sustaining growth against tough comparisons ✓ Key commercial and operational initiatives are expected to support market share gains and high-single digit organic daily sales growth ✓ Continued M&A activity with robust pipeline ✓ Full year Adjusted EBITDA
Slide 17: Investment highlights
Investment highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 17
Slide 18: Appendix: Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 19: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation 2021 2020 ($ in millions) FY’21 Q4’21 Q3’21 Q2’21 Q1’21 FY’20 Q4’20 Q3’20 Q2’20 Q1’20 Net income (loss) $238.4 $27.5 $80.0 $123.5 $7.4 $121.3 $11.5 $48.2 $79.1 $(17.5) Income tax (benefit) expense 56.1 2.7 19.1 36.8 (2.5) 27.5 1.6 13.8 25.6 (13
Slide 20: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation ($ in millions) 2021 2020 2019 2018 2017 2016 Net income $238.4 $121.3 $77.7 $73.9 $54.6 $30.6 Income tax expense 56.1 27.5 13.8 1.3 18.0 21.3 Interest expense, net 19.2 31.0 33.4 32.1 25.2 22.1 Depreciation & amortization 83.0 67.2 59.5 52.3 4
Slide 21: Non-GAAP reconciliations
Non-GAAP reconciliations 2021 Organic Daily Sales Reconciliation 2021 2020 ($ 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 $3,475.7 $805.2 $936.4 $1,083.9 $650.2 $2,704.5 $675.1 $751.9 $817.7 $459.8 A Organic Sales $3,158.9 $726.9 $843.7 $975.0 $613.3 $
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