Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — Q1 2017 Earnings Presentation
17 slides from Siteone Landscape Supply's earnings presentation, 2017
Slide 1: First Quarter 2017 Earnings
SiteOne LANDSCAPE SUPPLY Stronger Together First Quarter 2017 Earnings
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 2017 Adjusted EBITDA outlook. S
Slide 3: Conference call agenda
Conference call agenda Introduction Pascal Convers, EVP S&D and IR Business Update Doug Black, CEO Financial Update John Guthrie, CFO Development Update Pascal Convers, EVP S&D and IR Closing & Outlook Doug Black, CEO Q&A 3
Slide 4: Company and industry overview
Company and industry overview ■ Largest and only national wholesale distributor of landscape supplies ■ Large $17 billion highly fragmented market ■ More than four times the size of next competitor and only 10% market share(1) ■ Serving residential and commercial landscape professionals ■ Complement
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 Value creation le
Slide 6: First Quarter 2017 highlights and recent developments
First Quarter 2017 highlights and recent developments First Quarter First Quarter 2017 2017 highlights: highlights: Grew net sales 2% to $335 million vs increase of 45% during the same period last year Organic Daily Sales decreased by 2% vs increase of 22% during the same period last year Expa
Slide 7: Review of First Quarter 2017 financial results
Review of First Quarter 2017 financial results Summary financials Financial highlights ($ in millions) ■ Net sales increased 2% YoY to $335 million vs an increase of 45% during the prior-year period 329 335 Net sales – Organic Daily Sales decreased 2% compared to an increase of 22% during the prior-
Slide 8: Review of First Quarter 2017 balance sheet & cash flow highlights
Review of First Quarter 2017 balance sheet & cash flow highlights First Quarter 2017: Balance sheet & cash flow highlights ($ in millions) ■ Capital structure supports organic growth and acquisitions Net debt1 $485.4 – $115M in liquidity available to support business operations and execute M&A strat
Slide 9: Robust track record of acquisitions
Robust track record of acquisitions 2014 2015 2016 2017 YTD Annualized sales1 ~$40M ~$230M ~$150M ~$85M # branches added 18 50 29 18 Target Locations Strategic rationale Bissett 3 locations in NY Led to #1 nursery position in Long Island & NYC Glen Allen 1 location in VA #1 nursery position in the R
Slide 10: Continued acceleration of M&A strategy
Continued acceleration of M&A strategy Aspen Valley Stone Forest Woodstock Woodstock Alpharetta Roswell Duluth Marietta Lawrenceville North Atlanta Mableton Geneva Chicago Atlanta Wheaton Naperville Aurora Joliet SiteOne existing SiteOne existing Aspen Valley Stone Forest Closed in January 2017
Slide 11: Continued acceleration of M&A strategy
Continued acceleration of M&A strategy Angelo's AB Supply Las Vegas Rochester Hills Mount Clemens Bakersfield Farmington Hills Pomona San Bernardino Ann Arbor Detroit Los Angeles SiteOne existing SiteOne existing Angelo's AB Supply Closed in March 2017 Closed in March 2017 #1 hardscapes positi
Slide 12: Robust pipeline of opportunities provides accelerated growth
Robust pipeline of opportunities provides accelerated growth SiteOne is the only current industry consolidator 10% Significant sourcing advantage with 60+ associates scouting Our pipeline is deep and rapidly expanding 90% opportunity ~$15bn(1) M&A team in place to execute larger pipeline A
Slide 13: SiteOne's 2017 outlook
SiteOne’s 2017 outlook Underlying market trends remain positive Sales & marketing initiatives expected to accelerate market share gains Gross margin expansion expected to continue SG&A as % of net sales expected to decline slightly Expected acceleration of M&A activity from a robust pipeli
Slide 14: Investment highlights
Investment highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 14
Slide 15: Appendix
Appendix Non-GAAP Reconciliations
Slide 16: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation Organic Daily Sales Reconciliation ($ in millions) FY ‘16 FY ‘15 FY ‘14 Q1 ‘17 Q1 ‘16 ($ in millions) Q1 ‘17 Q1 ‘16 Net income $30.6 $28.9 $21.7 $(10.5) $(5.6) Net Sales $335.0 $328.5 Income tax (benefit) expense 21.3 19.5 14.4 (7.6) (3.4) Orga
Slide 17: Accelerating performance and growth led by recent transformation
Accelerating performance and growth led by recent transformation 2005 2016 (May) 2013 (Q4) Initial public offering Acquired UGM CD&R acquired 60% of JDL Strategy 2016 (Nov/Dec) 2017 (May) & Brand Development Debt re-pricing & secondary Follow-on secondary 2014 2015 2016 2001 2007 2017 YTD New Manage
SiteOne Landscape Supply — Q1 2017 Earnings Presentation on 6ix