Siteone Landscape Supply, Inc. · NYSE:SITE

Siteone Landscape Supply — Q3 2016 Earnings Presentation

14 slides from Siteone Landscape Supply's earnings presentation, Nov 7, 2016

  1. Slide 1: Third Quarter 2016 Earnings

    SiteOne™ LANDSCAPE SUPPLY Stronger Together Third Quarter 2016 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 2016 Adjusted EBITDA outlook.

  3. Slide 3: Company and Industry Overview

    Company and Industry Overview ■ Largest and only national wholesale distributor of landscape supplies ■ More than four times the size of next competitor and only 10% market share(1) ■ Large $16 billion highly fragmented market ■ Serving residential and commercial landscape professionals ■ Complement

  4. Slide 4: SiteOne is Poised for Long-term Growth and Value Creation

    SiteOne is Poised for Long-term Growth and Value Creation Current Strategy  Leverage strengths of both large and local company  Superior value propositions to our customers and suppliers  Fully exploit our scale Value Creation Levers  Develop and execute local market strategies  Close and integ

  5. Slide 5: Third Quarter 2016 and Recent Highlights

    Third Quarter 2016 and Recent Highlights  Net Sales increased by 10% year-over-year to $444.5 million  Organic net sales growth of 2% year-over-year  Gross Margin increased by 180 basis points to 31.1%  Net income increased by 31% year-over-year to $14.9 million  Adjusted EBITDA increased by 30

  6. Slide 6: Third Quarter 2016 Financial Details

    Third Quarter 2016 Financial Details Net Sales ($M) Financial Highlights $404.5 $444.5 ■ Net sales increased 10% year-over-year to $444.5 million Q3 - 2015 Q3 - 2016 ■ Gross profit increased 17% to $138.4 million Gross Profits ($M) – Gross margin improved 180 basis points to 31.1% $118.4 $138.4 – We

  7. Slide 7: Balance Sheet & Cash Flow Highlights

    Balance Sheet & Cash Flow Highlights Financial Highlights For the three months ended October 2, 2016: ■ New capital structure put in place to support growth including acquisitions Net Debt(1) $419.2 million – New $275M 6-year term loan on April 29, 2016 – ABL facility upsized to $325M (5-year maturi

  8. Slide 8: Acquisitions are a Key Part of our Value Creation Strategy

    Acquisitions are a Key Part of our Value Creation Strategy Year Target Location Strategic Rationale ■ 9 locations in Western Canada ■ #1 irrigation platform in Western Canada ■ 3 locations in HI ■ #1 irrigation platform in Hawaii 2014 ■ 1 location in TN ■ #1 nursery position in Memphis metro ■ 5 loc

  9. Slide 9: Recent Acquisitions – Continued Execution

    Recent Acquisitions – Continued Execution Glen Allen Existing SiteOne Glen Allen  Closed in the third quarter of fiscal 2016 (September)  Establishes #1 Nursery position in Richmond area markets  Allows for full product line offering to local customers  Cross-sell SiteOne full suite of products

  10. Slide 10: Recent Acquisitions – Continued Execution

    Recent Acquisitions – Continued Execution Loma Vista Existing SiteOne Loma Vista  Closed in the fourth quarter of fiscal 2016 (November)  Establishes #1 Nursery position in Kansas City market  Establishes #3 Hardscapes position in Kansas City market  Allows for full product line offering to loca

  11. Slide 11: Outlook

    Outlook  Underlying market trends remain positive  On track to achieve commercial and operational improvement targets  Forecasting strong sales and profit growth for the full year and into 2017  Anticipate additional acquisition activity in the final quarter of the year with strong deal momentum

  12. Slide 12: 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 12

  13. Slide 13: Appendix

    Appendix Adjusted EBITDA Reconciliation

  14. Slide 14: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation ($ in millions) TTM (10/2/2016) Q3 2016 Q3 2015 Reported net income 30.4 14.9 11.4 Income tax expense 22.7 10.7 7.4 Interest expense, net 19.0 6.3 2.7 Depreciation & amortization 36.1 9.7 8.2 EBITDA $108.2 $41.6 $29.7 A Stock-based compensation 4.7 1.1 0.8 B Loss on sa

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