Siteone Landscape Supply, Inc. · NYSE:SITE
Siteone Landscape Supply — Q2 2017 Earnings Presentation
17 slides from Siteone Landscape Supply's earnings presentation, 2017
Slide 1: Second Quarter 2017 Earnings
Second 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.
Slide 3: Conference call agenda
Conference call agenda Introduction Pascal Convers, EVP S&D and IR Business Update Doug Black, Chairman and CEO Financial Update John Guthrie, CFO Development Update Pascal Convers, EVP S&D and IR 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 ■ 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 ■ Close and integ
Slide 6: Second Quarter 2017 highlights and recent developments
Second Quarter 2017 highlights and recent developments Second Quarter 2017 highlights: Grew net sales 19% to $609 million Organic Daily Sales increased by 8% Gross profit increased 20% to $202 million; gross margin improved 50 bps to 33.3% Adjusted EBITDA grew 23% to $92 million; Adjusted EB
Slide 7: Review of Second Quarter 2017 financial results
Review of Second Quarter 2017 financial results Summary financials Financial highlights ($ in millions) ■ Net sales increased 19% YoY to $608.6 million – Organic Daily Sales increased 8% Net sales 608.6 513.4 – Acquisitions contributed $53.7 million to growth, or 10% Q2 ’17 Q2 ’16 ■ Gross margin imp
Slide 8: Review of Second Quarter 2017 balance sheet & cash flow highlights
Review of Second Quarter 2017 balance sheet & cash flow highlights Second Quarter 2017 Balance sheet & cash flow highlights ($ in millions) ■ Working Capital increased to $408.7 million – Inventory increase due to acquisitions, product expansions and higher stocking levels for supply chain rollout N
Slide 9: Robust track record of acquisitions
Robust track record of acquisitions 2014 2015 2016 2017 YTD # Acquisitions 4 4 6 6 Annualized sales 1 ~$40M ~$230M ~$150M ~$105M # branches added 18 50 29 22 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
Slide 10: M&A strategy continues to gain momentum
M&A strategy continues to gain momentum Evergreen Partners South Coast Supply SiteOne existing SiteOne existing Evergreen South Coast Supply Closed in May 2017 Closed in August 2017 #1 nursery position in Myrtle Beach Leading hardscapes position in Orange County Strengthened nursery footpr
Slide 11: Robust pipeline provides significant growth opportunity
Robust pipeline provides significant growth opportunity SiteOne is the leading industry consolidator 10% Significant sourcing advantage with 60+ associates scouting 90% Our pipeline is deep and rapidly expanding ~$15bn(1) opportunity M&A team in place to execute larger pipeline Acquisition
Slide 12: SiteOne's 2017 outlook
SiteOne’s 2017 outlook Underlying market trends remain positive Sales & marketing initiatives expected to accelerate market share gains Gross margin expansion expected to continue SG&A as % of net sales expected to decline slightly M&A activity continues to gain momentum from a robust pipe
Slide 13: Investment highlights
Investment highlights Uniquely Clear market leader attractive industry Compelling and Proven management sustainable team growth strategy Operational and Value-creating commercial acquisitions excellence 13
Slide 14: Appendix
Appendix Non-GAAP Reconciliations
Slide 15: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted EBITDA Reconciliation Three Months Ended Six Months Ended ($ in millions) July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Net income $44.2 $ 26.9 $33.7 $21.3 Income tax expense 26.3 18.1 18.7 14.7 Interest expense, net 6.6 6.5 12.8 9.1 Depreciation and amortizat
Slide 16: Non-GAAP reconciliations
Non-GAAP reconciliations Organic Daily Sales Reconciliation 2017 2016 ($ in millions) Q2 ‘17 Q1 ‘17 Q2 ‘16 Q1 ‘16 Net Sales $608.6 $335.0 $513.4 $328.5 Organic Sales 548.1 318.5 506.6 328.5 A Acquired Sales 60.5 16.5 6.8 -- Selling Days (#) 64 64 64 65 Organic Daily Sales $8.6 $5.0 $7.9 $5.1 A Repre
Slide 17: Accelerating performance and growth led by recent transformation
Accelerating performance and growth led by recent transformation 2005 2016 (May) 2017 (May) 2013 (Q4) Initial public offering Acquired UGM Follow -on secondary CD&R acquired 60% of JDL Strategy 2016 (Nov/Dec) 2017 (July) & Brand Development Debt re-pricing & secondary Follow -on secondary 2014 2015
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