Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — Q4 2023 Earnings Presentation
21 slides from Siteone Landscape Supply's earnings presentation, Feb 14, 2024
Slide 1: Fourth Quarter and Full Year 2023 Earnings
Fourth Quarter and Full Year 2023 Earnings
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our 2023 Adjusted EBITDA outlook and our share r
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 full product line wholesale distributor of landscape supplies ■ $25 billion highly fragmented market(1) ■ More than three times the size of next competitor and only ~17% market share(1) ■ Serving residential and commercial landscape professio
Slide 5: SiteOne is built for continued growth and margin enhancement
SiteOne is built for continued growth and margin enhancement Current strategy ✓ Leverage strengths of both large and local company ■ Fully exploit our scale, resources and capabilities ■ Execute local market growth strategies ■ Deliver superior value to our customers and suppliers ■ Close and integr
Slide 6: Track record of performance and growth
Track record of performance and growth Net Sales Adjusted EBITDA ($ in Millions) ($ in Millions) $3,476 $4,015 $4,301 ’16-’23 $464 ’16-’23 $415 $411 Growth Growth $2,705 $2,112 $2,358 Sales $ $260 Adj. EBITDA $ $1,862 +161% +206% $1,648 35.4% 34.7% $201 34.9% 34.7% $157 $176 33.3% GM % 11.9% 32.8% $
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 ~23% of our target markets today… ~65 ~70 ~55 (1) Target markets as of Q4 2023 ar
Slide 8: Fiscal Year 2023 highlights
Fiscal Year 2023 highlights Fiscal Year 2023 highlights (compared to Fiscal Year 2022): ✓ Net sales increased 7% to $4.30 billion ✓ Flat Organic Daily Sales ✓ Gross profit increased 5% to $1.49 billion; gross margin decreased 70 basis points to 34.7% ✓ SG&A as a percentage of Net sales increased 190
Slide 9: Review of Fourth Quarter 2023 financial results
Review of Fourth Quarter 2023 financial results Summary financials Financial highlights (compared to prior-year period) (in millions) ■ Net sales increased 8% YoY to $965.0 million +8% – Organic Daily Sales decreased 1% due to price deflation for Net sales $965.0 commodity products, partially offset
Slide 10: Review of Fiscal Year 2023 financial results
Review of Fiscal Year 2023 financial results Summary financials Financial highlights (in millions) +7% ■ Net sales increased 7% YoY to $4.30 billion – Organic Daily Sales were flat due to moderating economic Net sales $4,301.2 conditions in our end markets $4,014.5 – Acquired sales growth was $278.7
Slide 11: Balance sheet & cash flow highlights
Balance sheet & cash flow highlights Year ended December 31, 2023 Balance sheet & cash flow highlights (compared to prior-year period) ($ in millions) ■ Working capital increased to $827.0 million, compared to $759.5 million – Reflects increase in cash on hand and higher receivables supporting Worki
Slide 12: Balanced Approach to Capital Allocation – 2023 Performance
Balanced Approach to Capital Allocation – 2023 Performance ✓Healthy cash flow generation ✓Low capex requirements Return capital to shareholders through share repurchase ✓Strong balance sheet Maintain strong balance $11 million in shares repurchased sheet for strategic flexibility 0.9x Net Debt / Adj
Slide 13: Proven track record of successful acquisitions
Proven track record of successful acquisitions 2014-2018 2019 2020 2021 2022 2023 Total ▪ Cutting Edge ▪ Wittkopf Landscape ▪ Lucky Landscape ▪ JK Enterprise ▪ J&J Materials Supplies ▪ All Pro Horticulture ▪ Arizona Stone & ▪ BellStone Masonry ▪ Triangle Landscape ▪ Empire Supplies Solstice Supplies
Slide 14: M&A continues to add significant value
M&A continues to add significant value Newsom Seed ✓ Closed on December 1st ✓ Expands our strong agronomics presence in the Baltimore and Washington, D.C. markets ✓ Cross-selling synergies ✓ Purchasing synergies SiteOne Newsom Seed Source: Company data 14
Slide 15: Robust pipeline provides significant growth opportunity
Robust pipeline provides significant growth opportunity ✓ SiteOne is the leading industry consolidator 17% ✓ Significant sourcing advantage with 80+ leaders scouting new growth opportunities 83% ✓ Our pipeline is deep and expanding ~$25bn market(1) ✓ Experienced M&A team driving strong acquisition g
Slide 16: 2024 Outlook
2024 Outlook ✓ End market demand expected to modestly improve ✓ Commodity price deflation expected to continue for the first half of the year ✓ Key commercial and operational initiatives expected to support market share gains and positive sales volume growth ✓ Organic Daily Sales growth expected to
Slide 17: Investment highlights
Investment highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 17
Slide 18: Appendix
Appendix Non-GAAP Reconciliations
Slide 19: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation 2023 2022 ($ in millions) FY’23 Q4’23 Q3’23 Q2’23 Q1’23 FY’22 Q4’22 Q3’22 Q2’22 Q1’22 Reported Net income (loss) $173.4 $(3.4) $57.3 $124.0 $(4.5) $245.4 $(0.9) $73.3 $140.7 $32.3 Income tax (benefit) expense 49.8 (5.0) 17.5 40.0 (2.7) 67.7 (4.
Slide 20: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation ($ in millions) 2023 2022 2021 2020 2019 2018 2017 2016 Reported Net income $173.4 $245.4 $238.4 $121.3 $77.7 $73.9 $54.6 $30.6 Income tax expense 49.8 67.7 56.1 27.5 13.8 1.3 18.0 21.3 Interest expense, net 27.1 20.0 19.2 31.0 33.4 32.1 25.2 2
Slide 21: Non-GAAP reconciliations
Non-GAAP reconciliations 2023 Organic Daily Sales Reconciliation 2023 2022 ($ in millions) FY’23 Q4’23 Q3’23 Q2’23 Q1’23 FY’22 Q4’22 Q3’22 Q2’22 Q1’22 Reported Net Sales $4,301.2 $965.0 $1,145.1 $1,353.7 $837.4 $4,014.5 $890.0 $1,102.6 $1,216.6 $805.3 A Organic Sales $3,937.3 $860.6 $1,046.7 $1,252.
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