Siteone Landscape Supply, Inc. · NYSE:SITE

Siteone Landscape Supply — Q1 2016 Earnings Presentation

16 slides from Siteone Landscape Supply's earnings presentation, 2016

  1. Slide 1: First Quarter 2016 Earnings

    SiteOne LANDSCAPE SUPPLY First Quarter 2016 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 2016 Adjusted EBITDA outlook.

  3. Slide 3: Company and Industry Overview

    Company and Industry Overview ■ Largest and only national wholesale distributor of landscape supplies ■ Approximately four times the size of next competitor and only 9% market share(1) ■ Large $16 Billion highly fragmented market ■ Serving residential and commercial landscape professionals ■ Complem

  4. Slide 4: 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 Small: ~17% of revenue ■ <$10K in avg. annual purchases SiteOne provides: SiteOne provides: Broadest Coast-to-coast product national netw

  5. Slide 5: We are the Only National One-stop Shop Provider of Landscape Supplies

    We are the Only National One-stop Shop Provider of Landscape Supplies Fertilizer Control Landscape Outdoor Irrigation & Other Products Nursery Accessories Hardscapes Lighting % of 2015 31% 24% 12% 16% 8% 5% 4% Sales1 Key Products Key Suppliers Market #1 #1 #1 #1 #1 #1 #1 Position2 (1) Excludes Retai

  6. Slide 6: 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  Superior value propositions to our customers  Fully exploit our scale  Develop and execute local market strategies  Close and integrate high value-added acquisitio

  7. Slide 7: First Quarter 2016 and Recent Highlights

    First Quarter 2016 and Recent Highlights  Net Sales increased by 45%, including 23% organic growth  Gross Margin increased by 350 basis points to 29.5%  Net loss decreased to $5.6 million vs. $9.8 million for the prior year period  Adjusted EBITDA(1) increased to $4.5 million vs. $5.7 million lo

  8. Slide 8: First Quarter 2016 Financial Details

    First Quarter 2016 Financial Details Net Sales ($M) Financial Highlights $328.5 $225.8 ■ Net sales increased 45% year-over-year to Q1 - 2015 Q1 - 2016 $328.5 million Gross Profits ($M) – Strong organic growth of 23% $58.6 $97.0 – Acquisitions contributed 22% Q1 - 2015 Q1 - 2016 ■ Gross profit increa

  9. Slide 9: Balance Sheet & Cash Flow Highlights

    Balance Sheet & Cash Flow Highlights Financial Highlights For the three months ended April 3, 2016: ■ New capital structure put in place to support growth including acquisitions Pro-forma Net Debt(1) $403.5 million – New $275M 6-year term loan April 29, 2016 – ABL facility upsized to $325M (5-year m

  10. Slide 10: Acquisitions are a Key Part of our Value Creation Strategy

    Acquisitions are a Key Part of our Value Creation Strategy Year Target Location Strategic Rationale ■ 9 locations in Western ■ #1 irrigation platform in Western Canada Canada ■ 3 locations in HI ■ #1 irrigation platform in Hawaii 2014 ■ 1 location in TN ■ #1 nursery position in Memphis metro ■ 5 loc

  11. Slide 11: Recent Acquisitions – Continued Execution

    Recent Acquisitions – Continued Execution Hydro-Scape Products Blue Max Materials  Closed in the first quarter of fiscal 2016  Closed in the second quarter of fiscal 2016  Leads to #1 Irrigation position in So California  Leads to #1 Hardscapes position in the Carolinas  Grow share with small a

  12. Slide 12: Robust Pipeline of Opportunities Provides Accelerated Growth

    Robust Pipeline of Opportunities Provides Accelerated Growth ~9% A SiteOne is the only current industry consolidator B Significant sourcing advantage with 60+ associates scouting C Our pipeline is deep and rapidly expanding 91% opportunity ~$14.6bn D M&A team in place to execute larger pipeline E Ac

  13. Slide 13: Outlook

    Outlook  Underlying market trends remain positive  On track to achieve commercial and operational improvement targets  April and May weather unfavorable; June back to normal  Forecasting strong sales and profit growth  Anticipate closing additional acquisitions in the second half of the year 

  14. Slide 14: 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 14

  15. Slide 15: Appendix

    Appendix Adjusted EBITDA Reconciliation

  16. Slide 16: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation ($ in millions) TTM (4/3/2016) Q1 2016 Q1 2015 Reported net income (loss) 33.1 ($5.6) ($9.8) Income tax (benefit) expense 22.4 (3.4) (6.3) Interest expense, net 11.6 2.6 2.4 Depreciation & amortization 33.4 8.6 6.4 EBITDA 100.5 $2.2 ($7.3) A Non-cash stock-based compen

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