Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — Q1 2018 Earnings Presentation
21 slides from Siteone Landscape Supply's earnings presentation, 2018
Slide 1: First Quarter 2018 Earnings
SiteOne”™ LANDSCAPE SUPPLY Stronger Together First Quarter 2018 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 2018 Adjusted EBITDA outlook. S
Slide 3: Conference call agenda
Conference call agenda Introduction Pascal Convers, EVP S&D and IR Business Update Doug Black, Chairman and CEO Financial Update John Guthrie, CFO Development Update Pascal Convers, EVP S&D and IR 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 ■ $18 billion highly fragmented market ■ More than four times the size of next competitor and only ~10% market share(1) ■ Serving residential and commercial landscape professionals Distribution Cent
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
Slide 6: Accelerating performance and growth led by recent transformation
Accelerating performance and growth led by recent transformation Net Sales Adjusted EBITDA 1,862 157 (in Millions) (in Millions) 1,648 ’14-’17 Growth 134 ’14-’17 Growth 1,452 32.0% Sales +58% 107 Adj. EBITDA +113% 8.4% 1,177 31.3% GM% +560 bps Margin +210 bps 74 8.1% 29.6% 7.3% 26.4% 6.3% FY 2014 FY
Slide 7: Significant room to grow across product lines
Significant room to grow across product lines # of markets1 Missing either Missing both Full Product No Hardscapes or Hardscapes Line Offering Presence Nursery and Nursery SiteOne offers all ~50 product lines in only ~20% of our target markets today… ~80 ~50 ~45 (1) Target markets are represented by
Slide 8: First Quarter 2018 highlights and recent developments
First Quarter 2018 highlights and recent developments First Quarter 2018 highlights: Net sales increased by 11% to $371.4 million Organic Daily Sales increased by 3% Gross profit increased 8% to $108.5 million; gross margin decreased 90 basis points to 29.2% Net loss of $17.0 million, compar
Slide 9: Review of First Quarter 2018 financial results
Review of First Quarter 2018 financial results Summary financials Financial highlights ($ in millions) ■ Net sales increased 11% YoY to $371.4 million – Organic Daily Sales increased 3%, despite unfavorable Net sales 335.0 371.4 weather headwinds – Acquisitions contributed $27.9 million, or 8% to gr
Slide 10: Review of First Quarter 2018 balance sheet & cash flow highlights
Review of First Quarter 2018 balance sheet & cash flow highlights First Quarter 2018 Balance sheet & cash flow highlights ($ in millions) ■ Working Capital increased 16% YoY to $460.5 million – The increase reflects higher inventory and receivables attributable to seasonality of our business, acquis
Slide 11: Robust track record of acquisitions
Robust track record of acquisitions 2014 2015 2016 2017 2018YTD Total Eljay Shemin Hydro-Scape Aspen Valley Pete Rose Diamond Head AMC Blue Max Stone Forest Atlantic Irrigation Stockyard Green Resource Bissett Angelo's Village Nurseries BISCO Tieco Glen Allen AB
Slide 12: M&A strategy continues to gain momentum: Pete Rose
M&A strategy continues to gain momentum Pete Rose Closed in January 2018 Leading hardscapes position in Richmond, VA Allows for full product line offering to local customers Cross-sell SiteOne full suite of products SiteOne existing Pete Rose Source: Company data 12
Slide 13: M&A strategy continues to gain momentum: Atlantic Irrigation
M&A strategy continues to gain momentum Atlantic Irrigation Closed in February 2018 Leading supplier of Irrigation products along the East Coast 33 locations, covering 22 MSAs in 12 U.S. States and 2 Canadian Provinces Makes SiteOne the clear #1 in Irrigation in the East Opportunities to c
Slide 14: M&A strategy continues to gain momentum: Village Nurseries
M&A strategy continues to gain momentum Village Nurseries Closed in March 2018 Leading Nursery position in California Allows for full product line offering to local customers Cross-sell SiteOne full suite of products Purchasing synergies SiteOne existing Village Nurseries Source: Company d
Slide 15: M&A strategy continues to gain momentum: Terrazzo & Stone Supply
M&A strategy continues to gain momentum Terrazzo & Stone Supply Closed in April 2018 Leading hardscapes platform in Seattle, WA Cross-sell SiteOne full suite of products Purchasing synergies SiteOne existing Terrazzo & Stone Supply Source: Company data 15
Slide 16: Robust pipeline provides significant growth opportunity
Robust pipeline provides significant growth opportunity SiteOne is the leading industry consolidator 10% Significant sourcing advantage with 70+ associates scouting 90% Our pipeline is deep and rapidly expanding ~$16bn(1) opportunity M&A team in place to execute larger pipeline Acquisition
Slide 17: 2018 outlook
2018 outlook Underlying market trends remain positive Market share gains expected to continue Continued EBITDA margin expansion M&A activity continues to gain momentum from a robust pipeline 2018 Adjusted EBITDA expectation of $180 million to $192 million 17
Slide 18: Investment highlights
Investment highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 18
Slide 19: Appendix
Appendix Non-GAAP Reconciliations
Slide 20: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation 2018 2017 2016 ($ in millions) Q1 ‘18 Q4 ‘17 Q3 ‘17 Q2 ‘17 Q1 ‘17 Q4 ‘16 Q3 ‘16 Q2 ‘16 Net income (17.0) 4.0 16.9 44.2 (10.5) (5.6) 14.9 26.9 Income tax expense (benefit) (10.2) (11.4) 10.7 26.3 (7.6) (4.1) 10.7 18.1 Interest expense, net 6.6 6
Slide 21: Non-GAAP reconciliations
Non-GAAP reconciliations Organic Daily Sales Reconciliation 2018 2017 ($ in millions) Q1 Q1 Net Sales $371.4 $335.0 Organic Sales $337.9 $329.4 A Acquisition contribution $33.5 $5.6 Selling Days (#) 64 64 Organic Daily Sales $5.3 $5.1 A Represents Net Sales from acquired branches that have not been
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