Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — Q1 2021 Earnings Presentation
22 slides from Siteone Landscape Supply's earnings presentation, May 5, 2021
Slide 1: First Quarter 2021 Earnings
SiteOne™ LANDSCAPE SUPPLY Stronger Together First Quarter 2021 Earnings
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 2021 Adjusted EBITDA outlo
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 wholesale distributor of landscape supplies ■ $20 billion highly fragmented market(1) ■ More than five times the size of next competitor and only ~13% market share(1) ■ Serving residential and commercial landscape professionals Distribution C
Slide 5: SiteOne is poised for continued growth and margin enhancement
SiteOne is poised 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 integ
Slide 6: Track record of performance and growth
Track record of performance and growth Net Sales Adjusted EBITDA (in Millions) 2,705 (in Millions) 260 2,358 2,112 ’15-’20 201 ’15-’20 1,862 Growth 176 Growth 1,648 33.3% 157 1,452 32.8% Sales $ 134 9.6% Adj. EBITDA $ +86% 107 +144% 32.0% 32.1% 8.5% 31.3% GM % 8.4% 8.3% Adj. EBITDA % 8.1% 29.6% +370
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 ~45 product lines in only ~21% of our target markets today… ~85 ~50 ~50 (1) Target markets as of Q4 2020 a
Slide 8: First Quarter 2021 highlights and recent developments
First Quarter 2021 highlights and recent developments First Quarter 2021 highlights (compared to first quarter 2020): ✓ Net sales increased 41% to $650.2 million ✓ Organic Daily Sales increased by 32% ✓ Gross profit increased 41% to $201.5 million; gross margin decreased 10 basis points to 31.0% ✓ S
Slide 9: Review of First Quarter 2021 financial results
Review of First Quarter 2021 financial results Summary financials Financial highlights ($ in millions) +41% ■ Net sales increased 41% to $650.2 million Net sales 650.2 – Organic Daily Sales increased by 32% 459.8 – Acquired sales growth was $33.5 million, contributing 7% to Q1’20 Q1’21 the overall g
Slide 10: Balance sheet & cash flow highlights
Balance sheet & cash flow highlights First Quarter 2021 Balance sheet & cash flow highlights (compared to prior-year period) ($ in millions) ■ Working capital increased to $538.5 million, compared to $520.8 million Working capital $538.5 – Reflects strong sales growth and additions from new acquisit
Slide 11: Proven track record of successful acquisitions
Proven track record of successful acquisitions 2014 – 2015 2016 2017 2018 2019 2020 2021 YTD Total ▪ Eljay ▪ Hydro- ▪ Aspen Valley ▪ Pete Rose ▪ Cutting Edge ▪ Wittkopf ▪ Lucky Scape Landscape Landscape ▪ Diamond ▪ Stone Forest ▪ Atlantic Irrigation ▪ All Pro Supplies Head ▪ Blue Max Horticulture ▪
Slide 12: M&A continues to add significant value: Lucky Landscape Supply
M&A continues to add significant value Lucky Landscape Supply ✓Closed on February 17, 2021 ✓Extends leading nursery position in Houston with 4th dedicated branch ✓Complements current irrigation, agronomics, landscape lighting, and hardscapes businesses in Houston ✓Purchasing synergies SiteOne existi
Slide 13: M&A continues to add significant value: Arizona Stone and Solstice
M&A continues to add significant value Arizona Stone and Solstice ✓Closed on April 1, 2021 ✓Establishes a leading hardscapes platform with 9 locations across Arizona (7) and Nevada (2) ✓Cross-sell opportunities ✓Purchasing synergies SiteOne existing SiteOne existing AZ Stone & Solstice AZ Stone & So
Slide 14: M&A continues to add significant value: Timberwall
M&A continues to add significant value Timberwall Landscape & Masonry Products ✓Closed on April 30, 2021 ✓Extends our leading hardscapes and landscape supplies platform in the greater Minneapolis market ✓Cross-sell opportunities ✓Purchasing synergies SiteOne existing Hedberg Supply (Oct 2020) Timber
Slide 15: M&A continues to add significant value: Melrose Irrigation Supply
M&A continues to add significant value Melrose Irrigation Supply ✓Closed on April 30, 2021 ✓Expands our market leading irrigation presence across South Florida with 6 locations ✓Cross-sell opportunities ✓Purchasing synergies SiteOne existing Melrose Source: Company data 15
Slide 16: Robust pipeline provides significant growth opportunity
Robust pipeline provides significant growth opportunity ✓ SiteOne is the leading industry consolidator 13% ✓ Significant sourcing advantage with 80+ associates scouting new growth opportunities 87% ✓ Our pipeline is deep and expanding ~$20bn market(1) ✓ M&A team in place to execute our acquisition s
Slide 17: 2021 outlook
2021 outlook ✓ Near-term market trends remain positive; strong growth moderating in the second half against tougher comparisons ✓ Key commercial and operational initiatives are expected to support market share gains and gross margin expansion ✓ Healthy M&A activity with robust pipeline ✓ Raising 202
Slide 18: Investment highlights
Investment highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 18
Slide 19: Appendix
Appendix Non-GAAP Reconciliations
Slide 20: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation 2021 2020 2019 ($ in millions) Q1’21 Q4’20 Q3’20 Q2’20 Q1’20 Q4’19 Q3‘19 Q2‘19 Net income (loss) $7.4 $11.5 $48.2 $79.1 $(17.5) $2.5 $34.6 $64.7 Income tax expense (benefit) (2.5) 1.6 13.8 25.6 (13.5) (5.6) 9.7 19.3 Interest expense, net 5.5 9.
Slide 21: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation ($ in millions) 2020 2019 2018 2017 2016 2015 Net income $121.3 $77.7 $73.9 $54.6 $30.6 $28.9 Income tax expense 27.5 13.8 1.3 18.0 21.3 19.5 Interest expense, net 31.0 33.4 32.1 25.2 22.1 11.4 Depreciation & amortization 67.2 59.5 52.3 43.1 37
Slide 22: Non-GAAP reconciliations
Non-GAAP reconciliations 2021 Organic Daily Sales Reconciliation 2021 2020 ($ in millions) FY’21 Q4’21 Q3’21 Q2’21 Q1’21 FY’20 Q4’20 Q3’20 Q2’20 Q1’20 Reported Net Sales -- -- -- -- $650.2 $2,704.5 $675.1 $751.9 $817.7 $459.8 A Organic Sales -- -- -- -- $613.3 $2,629.3 $641.0 $732.7 $799.2 $456.4 B
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