Siteone Landscape Supply, Inc. · NYSE:SITE

Siteone Landscape Supply — Q1 2020 Earnings Presentation

18 slides from Siteone Landscape Supply's earnings presentation, Apr 29, 2020

  1. Slide 1: First Quarter 2020 Earnings

    SiteOne™ LANDSCAPE SUPPLY Stronger Together First Quarter 2020 Earnings

  2. 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

  3. 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

  4. 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 four times the size of next competitor and only ~12% market share(1) ■ Serving residential and commercial landscape professionals Distribution C

  5. 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

  6. Slide 6: First Quarter 2020 highlights and recent developments

    First Quarter 2020 highlights and recent developments 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

  7. Slide 7: 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’

  8. Slide 8: 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

  9. Slide 9: 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 

  10. Slide 10: M&A continues to add significant value

    M&A continues to add significant value Wittkopf Landscape Supplies  Closed on January 2, 2020  Two locations in the greater Spokane, Washington Spokane Valley market  Provides hardscapes and landscaping products platform in Spokane  Completes full product line offering in Spokane  Cross-selling

  11. Slide 11: M&A continues to add significant value

    M&A continues to add significant value Empire Supplies  Closed on January 7, 2020 SiteOne  Establishes a leading hardscapes and landscaping Empire Supplies products platform with three locations in the greater Newark-Union, New Jersey market  Cross-selling opportunities  Purchasing synergies Sou

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

    M&A continues to add significant value The Garden Dept.  Closed on January 14, 2020  Expands our leading nursery and landscaping products position, adding three locations on Long Island, NY  Cross-selling opportunities  Purchasing synergies SiteOne The Garden Dept. Source: Company data 12

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

    M&A continues to add significant value Big Rock Natural Stone & Hardscapes  Closed on March 6, 2020  Gives SiteOne the #1 Hardscape position in the GSP market  Completes full product line offering in GSP  Cross-selling opportunities  Purchasing synergies SiteOne The Garden Dept. SiteOne Big Roc

  14. Slide 14: 2020 outlook

    2020 outlook  Continue to focus on keeping everyone safe  Expect organic daily sales trends to improve as government imposed COVID-19 restrictions are eased  Going forward sales expected to be supported by maintenance and commercial end markets  Carefully manage expenses and capital expenditures

  15. Slide 15: Appendix

    Appendix Non-GAAP Reconciliations

  16. Slide 16: 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

  17. Slide 17: 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.

  18. Slide 18: 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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