Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — 40th Annual William Blair Growth Stock Conference (June 2020)
24 slides from Siteone Landscape Supply's conference presentation, Jun 9, 2020
Slide 1: 40th Annual William Blair Growth Stock Conference
40th Annual William Blair Growth Stock Conference June 9, 2020
Slide 2: Disclaimer
Disclaimer Forw ard-Looking Statements This presentation contains “forw ard-looking statements” w ithin the meaning of the Federal Private Securities Litigation Reform A ct of 1995. Forw ard-looking statements may include, but are not limited to, statements relating to our 2020 Adjusted EBITDA outlo
Slide 3: Today's Presenters
Today’s Presenters Joined SiteOne in April 2014 Previously spent 18 years at CRH plc most recently as President and COO of Oldcastle Inc. Held a variety of roles including CEO and COO of Oldcastle Materials Doug Black Previously a consultant with McKinsey Chairman & CEO M.B.A. from Duke an
Slide 4: Overview
Overview 12% 2020 Performance and Outlook with COVID-19 Impacts SiteOne Strategic Position (1) As of year end 2019. Management Estimates 4
Slide 5: COVID-19 response and update
COVID-19 response and update Early response to secure inventory prior to outbreak in the U.S. • Leveraged national distribution network to buy forward for select products to help ensure that branches remain well-stocked to support customers Established four key objectives as outbreak spread to t
Slide 6: COVID-19 response and update: managing liquidity
COVID-19 response and update Managing liquidity in uncertain market environment • Borrowed ~$100 million under $375 million ABL Facility on April 1, 2020 to increase financial flexibility amid uncertainty in capital markets • Repaid borrowing on May 29, 2020 reflecting good cash flow and increased
Slide 7: First Quarter 2020 highlights
First Quarter 2020 highlights Net sales increased 10% to $459.8 million Organic Daily Sales increased 5% Gross profit increased 10% to $142.8 million; gross margin declined 10 bps to 31.1% Net loss of $17.5 million, compared to net loss of $24.1 million in the prior-year period Adjusted EB
Slide 8: 2020 Outlook
2020 Outlook Continue to focus on keeping everyone safe Sales trends have improved as state and local COVID-19 restrictions have eased Going forward sales expected to be supported by maintenance and commercial end markets Carefully managing expenses and capital expenditures to maintain solid
Slide 9: Company and industry overview
Company and industry overview ■ Largest and only national wholesale distributor of landscape supplies ■ $20 billion highly fragmented market(1) ■ More than four times the size of next competitor and only ~12% market share(1) ■ Serving residential and commercial landscape professionals Distribution C
Slide 10: SiteOne plays a critical role in the professional landscape supply value chain
SiteOne plays a critical role in the professional landscape supply value chain Thousands Hundreds of thousands of suppliers of customers Critical Business Partner Sm all: ~28% of 2019 net sales ■ <$25K in avg. annual purchases SiteOne provides: SiteOne provides: Coast-to-coast Broadest national netw
Slide 11: We are the only National full product line provider in the industry
We are the only National full product line provider in the industry Four Verticals Merchandised Products Landscape Irrigation & Lighting Agronomics Nursery Hardscapes Accessories Market #1 #1 #1 #1 #1 Position % of 2019 33% 28% 12% 13% 14% Sales Concrete paver & Merchandised Sprinklers Ferti
Slide 12: Track record of performance and growth
Track record of performance and growth Net Sales Adjusted EBITDA (in Millions) (in Millions) 2,358 201 2,112 ’14-’19 176 ’14-’19 1,862 1,648 Growth 157 Growth 1,452 134 Sales $ 107 Adj. EBITDA $ 1,177 32.1% 32.8% 32.0% +100% +172% 31.3% 74 29.6% 8.4% 8.5% GM % 8.1% 8.3% Adj. EBITDA % 26.4% 7.3% +640
Slide 13: 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 14: 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 ~21% of our target markets today… ~80 ~50 ~50 (1) Target markets as of 2019 are
Slide 15: Robust pipeline provides significant growth opportunity
Robust pipeline provides significant growth opportunity SiteOne is the leading industry consolidator 12% Significant sourcing advantage with 80+ associates scouting new growth opportunities 88% Our pipeline is deep and expanding ~$20bn market(1) M&A team in place to execute our acquisition s
Slide 16: Proven management team driving performance and growth
Proven management team driving performance and growth Local Leadership Team Senior Leadership Team Functional Excellence Avg yrs % former Name Experience ■ Functional areas are led by top industry contractors / industry talent from best-in-class Position #1 expertise golf super’int Doug Black compan
Slide 17: Investment highlights
Investment highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 17
Slide 18: Appendix
SiteOne LANDSCAPE SUPPLY Stronger Together Appendix
Slide 19: Review of First Quarter 2020 financial results
Review of First Quarter 2020 financial results Summary financials Financial highlights ($ in millions) ■ Net sales increased 10% YoY to $459.8 million – Organic Daily Sales increased by 5% Net sales 417.3 459.8 – Acquired sales growth was $20.7 million, contributing 5% to the overall growth rate Q1’
Slide 20: Balance sheet & cash flow highlights
Balance sheet & cash flow highlights First Quarter 2020 Balance sheet & cash flow highlights ($ in millions) ■ Working capital increased to $520.8 million, compared to $482.9 million in the prior-year period – Reflects working capital additions from 2019-2020 acquisitions Net debt1 $650.2 – Working
Slide 21: Proven track record of successful acquisitions
Proven track record of successful acquisitions 2014 – 2015 2016 2017 2018 2019 2020 YTD Total Eljay Hydro- Aspen Valley Pete Rose Cutting Edge Wittkopf Scape Landscape Diamond Head Stone Forest Atlantic Irrigation All Pro Supplies Blue Max Horticulture Stockyard Angelo's
Slide 22: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation 2020 2019 2018 ($ in millions) Q1’20 Q4’19 Q3’19 Q2’19 Q1’19 Q4’18 Q3 ‘18 Q2 ‘18 Net income (loss) $(17.5) $2.5 $34.6 $64.7 $(24.1) $(2.1) $29.9 $63.1 Income tax expense (benefit) (13.5) (5.6) 9.7 19.3 (9.6) (5.6) 2.4 14.7 Interest expense, net
Slide 23: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation ($ in millions) 2019 2018 2017 2016 2015 Net income $77.7 $73.9 $54.6 $30.6 $28.9 Income tax expense 13.8 1.3 18.0 21.3 19.5 Interest expense, net 33.4 32.1 25.2 22.1 11.4 Depreciation & amortization 59.5 52.3 43.1 37.0 31.2 EBITDA $184.4 $159.
Slide 24: Non-GAAP reconciliations
Non-GAAP reconciliations 2020 Organic Daily Sales Reconciliation 2020 2019 ($ in millions) FY’20 Q4’20 Q3’20 Q2’20 Q1’20 FY’19 Q4’19 Q3’19 Q2’19 Q1’19 Reported Net Sales -- -- -- -- $459.8 $2,357.5 $535.0 $652.8 $752.4 $417.3 A Organic Sales -- -- -- -- $434.8 $2,292.9 $513.6 $630.8 $735.5 $413.0 B
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