Siteone Landscape Supply, Inc. · NYSE:SITE

Siteone Landscape Supply — Q3 2018 Earnings Presentation

20 slides from Siteone Landscape Supply's earnings presentation, 2018

  1. Slide 1: Third Quarter 2018 Earnings

    SiteOne”™ LANDSCAPE SUPPLY Stronger Together Third Quarter 2018 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 2018 Adjusted EBITDA outlook. S

  3. 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

  4. Slide 4: Company and industry overview

    Company and industry overview ■ Largest and only national wholesale distributor of landscape supplies ■ $18 billion highly fragmented market(1) ■ More than four times the size of next competitor and only ~10% market share(1) ■ Serving residential and commercial landscape professionals Distribution C

  5. 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

  6. Slide 6: Accelerating performance and growth led by recent transformation

    Accelerating performance and growth led by recent transformation Net Sales Adjusted EBITDA (in Millions) (in Millions) 157 1,862 ’14-’17 Growth ’14-’17 Growth 1,648 134 1,452 32.0% Sales +58% 107 8.4% Adj. EBITDA 1,177 +113% 31.3% GM% +560 bps 74 8.1% 29.6% Adj. EBITDA % 7.3% +210 bps 26.4% 6.3% FY

  7. 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

  8. Slide 8: Third Quarter 2018 highlights and recent developments

    Third Quarter 2018 highlights and recent developments Third Quarter 2018 highlights:  Net sales increased by 15% to $578.5 million  Organic Daily Sales increased by 5%  Gross profit increased by 19% to $191.0 million; gross margin expanded 110 bps to 33.0%  Net income increased by 77% to $29.9 m

  9. Slide 9: Review of Third Quarter 2018 financial results

    Review of Third Quarter 2018 financial results Summary financials Financial highlights ($ in millions) ■ Net sales increased 15% YoY to $578.5 million – Organic Daily Sales increased by 5% Net sales 502.4 578.5 – Acquired sales growth was $53.9 million, or 11% of overall growth Q3 ’17 Q3’18 ■ Gross

  10. Slide 10: Review of Third Quarter 2018 balance sheet & cash flow highlights

    Review of Third Quarter 2018 balance sheet & cash flow highlights Third Quarter 2018 Balance sheet & cash flow highlights ($ in millions) ■ Operating cash flow improved $53.0 million, or 310%, to $70.1 million over same period prior-year – Reflects the increased earnings and improvements in working

  11. Slide 11: Proven track record of successful acquisitions

    Proven track record of successful 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  Bissett  Angelo's  Village Nurseries Resource  BISCO  Glen Allen 

  12. Slide 12: M&A continues to add significant value

    M&A continues to add significant value Landscape Express Kirkwood SiteOne existing SiteOne existing Landscape Express Kirkwood  Closed in July 2018  Closed in July 2018  Leading hardscapes and landscape supplies platform  Leading hardscapes and nursery platform  Creates full product line capabi

  13. Slide 13: M&A continues to add significant value

    M&A continues to add significant value Stone Center CentralPro SiteOne existing SiteOne existing Stone Center CentralPro  Closed in July 2018  Closed in July 2018  #1 Hardscapes position in Southern Maryland &  #1 Irrigation position in the Orlando, Tampa and Northern Virginia SE Florida markets

  14. Slide 14: M&A continues to add significant value

    M&A continues to add significant value C&C Sand and Stone  Closed in October 2018  Leading hardscapes & landscape supplies position in Denver and Colorado Springs, CO  Creates full product line capability in market  Cross-sell opportunities  Purchasing synergies SiteOne existing C&C Sand & Ston

  15. Slide 15: 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 expanding ~$16bn(1) opportunity  M&A team in place to execute our acquisition strategy  Acquisitio

  16. Slide 16: 2018 outlook

    2018 outlook  Underlying market trends remain positive  Market share gains expected to continue  Robust M&A activity from a strong pipeline  2018 Adjusted EBITDA expectation of $175 million to $180 million  Adjusted EBITDA margin expected to be flat in 2018 with expansion in 2019 and beyond 16

  17. 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

  18. Slide 18: Appendix

    Appendix Non-GAAP Reconciliations

  19. Slide 19: Non-GAAP reconciliations

    Non-GAAP reconciliations Adjusted EBITDA Reconciliation 2018 2017 2016 ($ in millions) Q3 ‘18 Q2 ‘18 Q1 ‘18 Q4 ‘17 Q3 ‘17 Q2 ‘17 Q1 ‘17 Q4 ‘16 Net income (loss) 29.9 63.1 (17.0) 4.0 16.9 44.2 (10.5) (5.6) Income tax expense (benefit) 2.4 14.7 (10.2) (11.4) 10.7 26.3 (7.6) (4.1) Interest expense, net

  20. Slide 20: Non-GAAP reconciliations

    Non-GAAP reconciliations Organic Daily Sales Reconciliation 2018 2017 ($ in millions) Q3 Q2 Q1 Q3 Q2 Q1 Net Sales $578.5 $687.8 $371.4 $502.4 $608.6 $335.0 Organic Sales 498.2 609.1 337.9 476.0 578.3 329.4 A Acquisition contribution 80.3 78.7 33.5 26.4 30.3 5.6 Selling Days (#) 63 64 64 63 64 64 Org

SiteOne Landscape Supply — Q3 2018 Earnings Presentation on 6ix