Slide 1: Second Quarter 2024 Earnings
Second Quarter 2024 Earnings
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation 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 2024 Adjusted EBITDA outlook and our sh
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: Second Quarter 2024 highlights
Second Quarter 2024 highlights Second Quarter 2024 highlights (compared to Second Quarter 2023): ✓ Net sales increased 4% to $1.41 billion and Organic Daily Sales decreased 3% ✓ Gross profit increased 4% to $510.3 million; gross margin decreased 10 basis points to 36.1% ✓ SG&A as a percentage of Net
Slide 9: Review of Second Quarter 2024 financial results
Review of Second Quarter 2024 financial results Summary financials Financial highlights (compared to prior-year period) (in millions) +4% ■ Net sales increased 4% YoY to $1.41 billion – Organic Daily Sales decreased 3% due to soft demand and Net sales price deflation for commodity products $1,353.7
Slide 10: Balance sheet & cash flow highlights
Balance sheet & cash flow highlights For the quarter ended June 30, 2024 Balance sheet & cash flow highlights (compared to prior-year period) ($ in millions) ■ Working capital increased to $1.01 billion, compared to $903.1 million – Reflects additional working capital from acquisitions Working capit
Slide 11: Proven track record of successful acquisitions
Proven track record of successful acquisitions 2014-2019 2020 2021 2022 2023 2024 Total ▪ Wittkopf Landscape ▪ Lucky Landscape ▪ JK Enterprise ▪ J&J Materials ▪ Eggemeyer Supplies ▪ Arizona Stone & ▪ BellStone Masonry ▪ Triangle Landscape ▪ Devil Mountain ▪ Empire Supplies Solstice Supplies Wholesal
Slide 12: M&A continues to add significant value
M&A continues to add significant value Eggemeyer ✓ Closed on April 26th ✓ Expands our leading bulk landscape supplies presence in the San Antonio-Austin metroplex ✓ Cross-selling synergies SiteOne ✓ Purchasing synergies Eggemeyer 12 Source: Company data
Slide 13: M&A continues to add significant value
M&A continues to add significant value Devil Mountain Wholesale Nursery ✓ Closed on April 30th ✓ Acquired a 75% interest ✓ Includes put and call options for the remaining interest in Devil Mountain future years 73 pre-existing SiteOne branches in California ✓ Enables SiteOne to provide nursery produ
Slide 14: M&A continues to add significant value
M&A continues to add significant value Hardscape.com ✓ Closed on May 31st SiteOne Hardscape Sites ✓ Expands our ability to provide Hardscape.com hardscapes products to our Florida customers ✓ Enhances our premium hardscapes offering nationally ✓ Cross-selling synergies ✓ Purchasing synergies 14 Sour
Slide 15: M&A continues to add significant value
M&A continues to add significant value Cohen & Cohen Natural Stone ✓ Closed on June 7th SiteOne Cohen & Cohen ✓ Expands our ability to provide hardscapes products into the Ottawa, Canada market ✓ Cross-selling synergies ✓ Purchasing synergies 15 Source: Company data
Slide 16: M&A continues to add significant value
M&A continues to add significant value Millican Nurseries SiteOne ✓ Closed on July 1st Millican ✓ Expands our ability to provide the full range of products to customers in the greater Boston and New England markets ✓ Purchasing synergies ✓ Cross-selling synergies 16 Source: Company data
Slide 17: 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 ~$25bn market(1) ✓ Experienced M&A team driving strong acquisition g
Slide 18: 2024 Outlook
2024 Outlook ✓ Demand expected to remain soft primarily due to weaker repair and remodel end market ✓ Commodity price deflation expected to continue through the end of the year ✓ Key commercial and operational initiatives expected to support market share gains and flat to slightly down sales volume
Slide 19: Investment highlights
Investment highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 19
Slide 20: Appendix
Appendix Non-GAAP Reconciliations
Slide 21: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation 2024 2023 2022 ($ in millions) Q2’24 Q1’24 Q4’23 Q3’23 Q2’23 Q1’23 Q4’22 Q3’22 Reported Net income (loss) $120.6 $(19.3) $(3.4) $57.3 $124.0 $(4.5) $(0.9) $73.3 Income tax expense (benefit) 40.0 (9.7) (5.0) 17.5 40.0 (2.7) (4.6) 22.9 Interest e
Slide 22: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation ($ 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 $30.6 Income tax expense 49.8 67.7 56.1 27.5 13.8 1.3 18.0 21.3 Interest expense, net 27.1 20.0 19.2 31.0 33.4 32.1 25.2 2
Slide 23: Non-GAAP reconciliations
Non-GAAP reconciliations 2024 Organic Daily Sales Reconciliation 2024 2023 ($ in millions) FY’24 Q4’24 Q3’24 Q2’24 Q1’24 FY’23 Q4’23 Q3’23 Q2’23 Q1’23 Reported Net Sales -- -- -- $1,413.9 $904.8 $4,301.2 $965.0 $1,145.1 $1,353.7 $837.4 A Organic Sales -- -- -- $1,291.5 $840.7 $4,180.7 $907.2 $1,103.