Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — Investor Presentation (September 2016)
18 slides from Siteone Landscape Supply's investor presentation, September 2016
Slide 1: SiteOne Landscape Supply, September 2016
SiteOne LANDSCAPE SUPPLY September 2016
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.
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 10% market share(1) ■ Large $16 billion highly fragmented market ■ Serving residential and commercial landscape professionals ■ Comple
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 Hundreds of Thousands thousands of suppliers of customers Critical business partner Small: ~17% of revenue ■ <$10K in avg. annual purchases SiteOne provides: SiteOne provides: Broadest Coast-to-coast product national netw
Slide 5: We are the Only National One-stop Shop Provider of Landscape Supplies
We are the Only National One-stop Shop Provider of Landscape Supplies Fertilizer Control Landscape Outdoor Irrigation & Other Products Nursery Accessories Hardscapes Lighting % of 2015 31% 24% 12% 16% 8% 5% 4% Sales1 Key Products Key Suppliers Market #1 #1 #1 #1 #1 #1 #1 Position2 (1) Excludes Retai
Slide 6: Growth is enhanced by sustainable industry trends
Growth is enhanced by sustainable industry trends Outdoor living Water and energy efficiency ■ Desire to increase usable living space, driving ■ Drought driving demand for water-efficient demand for: products – Concrete pavers – Precision irrigation – Bricks and stones ■ Regulation driving increased
Slide 7: Accelerating performance and growth led by recent transformation
Accelerating performance and growth led by recent transformation 2013 (Q4) 2015 2005 CD&R acquired Acquired Acquired UGM 60% of JDL ■ Shemin ■ AMC ■ Green Resource ■ Tieco Strategy & Brand 2001 2007 Development Acquired McGinnis Farms Acquired & Century RainAid LESCO 2014 2016 New Management Acquire
Slide 8: SiteOne is poised for long-term growth and margin enhancement
SiteOne is poised for long-term growth and margin enhancement Current Strategy Leverage strengths of both large and local company Superior value propositions to our customers Fully exploit our scale Develop and execute local market strategies Close and integrate high value-added acquisitio
Slide 9: Our financial performance is accelerating
Our financial performance is accelerating Net sales1 Gross profit1 1,600 1,549 500 472 33 1,452 429 1,177 400 ($ in millions) 1,200 1,027 1,078 30 ($ in millions) 982 311 30.4% 290 300 243 260 29.6% 800 27 200 27.0% 26.4% 400 25.3% 24 100 24.8% 0 0 21 2011 2012 2013 2014 2015 TTM 2011 2012 2013 2014
Slide 10: Second Quarter 2016 and Recent Highlights
Second Quarter 2016 and Recent Highlights Successfully completed IPO in May Net Sales increased by 7% year-over-year to $513.4 million Gross Margin increased by 220 basis points to 32.8% Net income of $26.9 million includes $7.4 million of IPO and debt recapitalization costs Adjusted EBITD
Slide 11: Second Quarter 2016 Financial Details
Second Quarter 2016 Financial Details Net Sales ($M) Financial Highlights $481.5 $513.4 ■ Net sales increased 7% year-over-year to $513.4 million Q2 - 2015 Q2 - 2016 – Impact from strong pull-forward in Q1 2016 Gross Profits ($M) ■ Gross profit increased 14% to $168.5 million $147.5 $168.5 – Gross m
Slide 12: Balance Sheet & Cash Flow Highlights
Balance Sheet & Cash Flow Highlights Financial Highlights For the three months ended July 3, 2016: ■ New capital structure put in place to support growth including acquisitions Net Debt(1) $397.3 million – New $275M 6-year term loan on April 29, 2016 – ABL facility upsized to $325M (5-year maturity)
Slide 13: Acquisitions are a Key Part of our Value Creation Strategy
Acquisitions are a Key Part of our Value Creation Strategy ■ Strengthens our business Geographic footprint Growth, margin Product expansion & cash flow Market consolidation improvement Talent / capabilities ■ Significant synergies Purchasing scale Overhead leverage Cross-selling Bran
Slide 14: Robust Track Record of Acquisitions
Robust Track Record of Acquisitions Year Target Location Strategic Rationale ■ 9 locations in Western Canada ■ #1 irrigation platform in Western Canada ■ 3 locations in HI ■ #1 irrigation platform in Hawaii 2014 ■ 1 location in TN ■ #1 nursery position in Memphis metro ■ 5 locations in the Northeast
Slide 15: Recent Acquisitions – Continued Execution
Recent Acquisitions – Continued Execution Bissett New York, NY Existing SiteOne Bissett Closed in the third quarter of fiscal 2016 Leads to #1 nursery position in Long Island & NYC markets Allows for full product line offering to local customers Purchasing and fixed cost synergies Cross-se
Slide 16: Robust Pipeline of Opportunities Provides Accelerated Growth
Robust Pipeline of Opportunities Provides Accelerated Growth ~10% A SiteOne is the only current industry consolidator B Significant sourcing advantage with 60+ associates scouting C Our pipeline is deep and rapidly expanding ~90% Opportunity D M&A team in place to execute larger pipeline E Acquisiti
Slide 17: 2016 Outlook
2016 Outlook Underlying market trends remain positive On track to achieve commercial and operational improvement targets Forecasting strong sales and profit growth for the full year Anticipate closing additional acquisitions in the second half of the year Adjusted EBITDA expectation of $13
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
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