STOCK TITAN

SiteOne Landscape Supply Announces Third Quarter 2024 Earnings

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

SiteOne Landscape Supply reported Q3 2024 results with net sales increasing 6% to $1.21 billion, while organic daily sales decreased 1%. Gross profit rose 6% to $411.0 million with a margin of 34.0%. Net income declined to $44.4 million from $57.3 million year-over-year. The company faced market headwinds including 3% price deflation and softer repair and remodel market. Adjusted EBITDA decreased 4% to $114.8 million. The company plans to consolidate or close 16 branches in Q4, resulting in a $5 million one-time charge, and updated its FY2024 Adjusted EBITDA guidance to $370-380 million.

SiteOne Landscape Supply ha riportato i risultati del terzo trimestre 2024 con vendite nette aumentate del 6% a 1,21 miliardi di dollari, mentre le vendite organiche giornaliere sono diminuite dell'1%. L'utile lordo è aumentato del 6% a 411,0 milioni di dollari, con un margine del 34,0%. L'utile netto è sceso a 44,4 milioni di dollari rispetto ai 57,3 milioni dell'anno precedente. L'azienda ha affrontato ostacoli di mercato, tra cui una deflazione dei prezzi del 3% e un mercato delle riparazioni e ristrutturazioni più debole. Il EBITDA rettificato è diminuito del 4% a 114,8 milioni di dollari. L'azienda prevede di consolidare o chiudere 16 filiali nel quarto trimestre, comportando un costo straordinario di 5 milioni di dollari, e ha aggiornato le previsioni per l'EBITDA rettificato FY2024 a 370-380 milioni di dollari.

SiteOne Landscape Supply reportó los resultados del tercer trimestre de 2024 con ventas netas que aumentaron un 6% a 1.21 mil millones de dólares, mientras que las ventas diarias orgánicas disminuyeron un 1%. La ganancia bruta creció un 6% a 411.0 millones de dólares con un margen del 34.0%. La renta neta disminuyó a 44.4 millones de dólares desde 57.3 millones de dólares en comparación con el año anterior. La compañía enfrentó vientos en contra del mercado, incluida una deflación de precios del 3% y un mercado de reparaciones y remodelaciones más suave. El EBITDA ajustado disminuyó un 4% a 114.8 millones de dólares. La empresa planea consolidar o cerrar 16 sucursales en el cuarto trimestre, resultando en un cargo excepcional de 5 millones de dólares, y actualizó su guía de EBITDA ajustado para el FY2024 a 370-380 millones de dólares.

SiteOne Landscape Supply는 2024년 3분기 실적을 보고하면서 순매출이 6% 증가하여 12억 1천만 달러에 달했다고 밝혔고, 동시에 유기적 일일 매출은 1% 감소했습니다. 총 이익은 6% 증가하여 4억 1,100만 달러에 이르고, 마진은 34%입니다. 순수익은 작년 5천7백30만 달러에서 4천4백만 달러로 감소했습니다. 이 회사는 3%의 가격 디플레이션과 부진한 수리 및 리모델링 시장 등으로 인해 시장의 난관에 직면했습니다. 조정된 EBITDA는 4% 감소하여 1억 1천4백80만 달러에 달했습니다. 이 회사는 4분기 동안 16개의 지점을 통합하거나 폐쇄할 계획이며, 이로 인해 500만 달러의 일회성 비용이 발생할 것이며 FY2024 조정 EBITDA 가이드를 3억7천-3억8천만 달러로 업데이트했습니다.

SiteOne Landscape Supply a publié les résultats du troisième trimestre 2024 avec une augmentation des ventes nettes de 6% à 1,21 milliard de dollars, tandis que les ventes quotidiennes organiques ont diminué de 1%. Le bénéfice brut a augmenté de 6% pour atteindre 411,0 millions de dollars, avec une marge de 34,0%. Le bénéfice net a chuté à 44,4 millions de dollars contre 57,3 millions de dollars l'année précédente. L'entreprise a fait face à des obstacles sur le marché, y compris une déflation des prix de 3% et un marché de réparation et de rénovation plus faible. L'EBITDA ajusté a diminué de 4% pour atteindre 114,8 millions de dollars. L'entreprise prévoit de consolider ou de fermer 16 succursales au quatrième trimestre, ce qui entraînera une charge unique de 5 millions de dollars, et a mis à jour ses prévisions d'EBITDA ajusté pour l'année fiscale 2024 à 370-380 millions de dollars.

SiteOne Landscape Supply hat die Ergebnisse des 3. Quartals 2024 veröffentlicht, mit netto Verkäufen, die um 6% auf 1,21 Milliarden Dollar gestiegen sind, während die organischen Tagesverkäufe um 1% gesunken sind. Der Bruttogewinn stieg um 6% auf 411,0 Millionen Dollar bei einer Marge von 34,0%. Der Nettoertrag sank auf 44,4 Millionen Dollar von 57,3 Millionen Dollar im Vorjahr. Das Unternehmen sah sich Marktherausforderungen gegenüber, unter anderem einer Preissenkung von 3% und einem schwächeren Markt für Reparaturen und Renovierungen. Das bereinigte EBITDA fiel um 4% auf 114,8 Millionen Dollar. Das Unternehmen plant, im 4. Quartal 16 Standorte zu konsolidieren oder zu schließen, was zu einer einmaligen Belastung von 5 Millionen Dollar führen wird, und hat seine Prognose für das bereinigte EBITDA für das Geschäftsjahr 2024 auf 370-380 Millionen Dollar aktualisiert.

Positive
  • Net sales increased 6% to $1.21 billion
  • Gross profit increased 6% to $411.0 million
  • Operating cash flow improved by $27.2 million to $115.9 million
  • Successfully refinanced term loan with 25 basis points lower interest rate
Negative
  • Net income decreased by $12.9 million to $44.4 million
  • Organic Daily Sales declined 1%
  • Adjusted EBITDA decreased 4% to $114.8 million
  • SG&A as percentage of Net sales increased 170 basis points to 28.9%
  • Planned closure of 16 branches with $5 million one-time charge

Insights

The Q3 2024 results reveal mixed performance for SiteOne Landscape Supply. While $1.21 billion in net sales represents a 6% increase, organic daily sales declined 1% due to price deflation. The 3% price deflation and softer repair/remodel market are concerning headwinds. Gross margin improved slightly by 10 basis points to 34.0%, but SG&A as a percentage of sales increased significantly by 170 basis points to 28.9%.

The planned closure of 16 branches and expected $5 million one-time charge signals proactive cost management but also indicates operational challenges. With net debt to Adjusted EBITDA at 1.2x and revised EBITDA guidance of $370-380 million, the company maintains a stable financial position despite market pressures. The successful refinancing of the term loan with improved terms provides additional financial flexibility.

Market conditions present significant challenges for SiteOne's growth trajectory. The 3% price deflation in commodity products and weakening repair/remodel segment indicate broader industry pressures. While maintenance and new construction markets remain resilient, the estimated $15 million revenue impact from hurricanes Helene and Milton adds to near-term headwinds.

The company's ability to achieve 2% organic daily sales volume growth partially offsetting price declines demonstrates market share gains. The robust acquisition pipeline, evidenced by the Millican Nurseries purchase, supports the company's consolidation strategy in the fragmented landscape supply market. However, the projected low single-digit organic daily sales decline for the remainder of the year suggests continued market challenges ahead.

Third Quarter 2024 Highlights (Compared to Third Quarter 2023):

  • Net sales increased 6% to $1.21 billion
  • Organic Daily Sales decreased 1%
  • Gross profit increased 6% to $411.0 million; gross margin improved 10 basis points to 34.0%
  • SG&A as a percentage of Net sales increased 170 basis points to 28.9%
  • Net income attributable to SiteOne decreased $12.9 million to $44.4 million
  • Adjusted EBITDA1 decreased 4% to $114.8 million; Adjusted EBITDA margin was 9.5%
  • Cash provided by operating activities increased $27.2 million to $115.9 million
  • Closed one acquisition: Millican Nurseries
  • Refinanced and extended the maturity of term loan

ROSWELL, Ga.--(BUSINESS WIRE)-- SiteOne Landscape Supply, Inc. (the “Company” or “SiteOne”) (NYSE: SITE) announced earnings for its third quarter ended September 29, 2024 (“Third Quarter 2024”).

“During the quarter we continued to face market headwinds with 3% price deflation and a softer repair and remodel market. Given these, we were pleased to achieve 2% Organic Daily Sales volume growth to partially offset the price decline,” said Doug Black, SiteOne’s Chairman and CEO. “Overall, our teams are executing our strategy, outperforming the market with organic sales volume growth, and pushing forward on our commercial and operational initiatives to yield organic growth and adjusted EBITDA margin expansion in 2025 and beyond. With a clear leadership position in wholesale landscape distribution, strong teams, a robust acquisition pipeline, and a winning strategy to create value for our stakeholders, we are confident in our ability to perform and grow in the years to come.”

Third Quarter 2024 Results

Net sales for the Third Quarter 2024 increased to $1.21 billion, or 6%, compared to $1.15 billion for the prior-year period. Organic Daily Sales decreased 1% compared to the prior-year period due to price deflation for commodity products more than offsetting positive volume growth. Acquisitions contributed $77.3 million, or 7%, to Net sales growth for the quarter.

Gross profit increased 6% to $411.0 million for the Third Quarter 2024 compared to $388.1 million for the prior-year period. Gross margin improved 10 basis points to 34.0% reflecting the positive impact from acquisitions, partially offset by lower price realization in the Base Business compared to the prior year period.

Selling, general and administrative expenses (“SG&A”) for the Third Quarter 2024 increased to $349.1 million from $311.8 million for the prior-year period. SG&A as a percentage of Net sales increased 170 basis points to 28.9% primarily due to the impact of acquisitions. SG&A for the Base Business increased 1% for the Third Quarter 2024 compared to the prior year period.

Net income attributable to SiteOne for the Third Quarter 2024 was $44.4 million, compared to $57.3 million for the same period in the prior year reflecting the Organic Daily Sales decline and lower gross margin in the Base Business.

Adjusted EBITDA1 for the Third Quarter 2024 decreased to $114.8 million, or 4%, compared to $119.8 million for the prior-year period. Adjusted EBITDA margin contracted 100 basis points to 9.5%.

Operating cash flow for the Third Quarter 2024 increased to $115.9 million compared to $88.7 million in the prior-year period primarily reflecting seasonal timing differences in working capital.

Net debt, calculated as long-term debt (net of issuance costs and discounts) plus finance leases, net of cash and cash equivalents on our balance sheet as of September 29, 2024, was $449.3 million compared to $446.0 million as of October 1, 2023. Net debt to Adjusted EBITDA for the last twelve months was 1.2 times compared to 1.1 times during the prior year period.

On July 2, 2024, we refinanced our term loan, extending the maturity by two years to March 2030 and reducing the interest rate by 25 basis points to Term SOFR plus 175 basis points. The term loan was also increased by $25.0 million to $392.7 million.

  1. Adjusted EBITDA includes contribution from non-controlling interest of $0.8 million for the Third Quarter 2024.

Outlook

“Our maintenance and new construction markets remain resilient, but we continue to experience soft demand driven primarily by a weaker repair and remodel end market. In addition, we estimate that hurricanes Helene and Milton have negatively impacted Net sales by approximately $15 million ($8 million in the fourth quarter). The pricing environment continues to be challenging and will have a negative impact on both our sales growth and gross margin. Against these headwinds, our teams are executing our commercial and operational initiatives well, and we expect to continue outperforming the market with a low single digit Organic Daily Sales decline for the remainder of the year,” Doug Black continued. “We are managing our SG&A tightly and making the necessary changes to optimize our cost structure for the long run. As a part of these efforts, we plan to consolidate or close 16 branches in the fourth quarter, resulting in an expected one-time charge to adjusted EBITDA of approximately $5 million.”

Taken all together, for Fiscal 2024, we now expect our Adjusted EBITDA to be in the range of $370 million to $380 million, which includes the $5 million one-time charge. Our guidance does not include any contributions from unannounced acquisitions.

Conference Call Information

SiteOne management will host a conference call today, October 30, 2024, at 8:00 a.m. Eastern Time, to discuss the Company’s financial results. The conference call can also be accessed by dialing 877-704-4453 (domestic) or 201-389-0920 (international), or by clicking on this link for instant telephone access to the call. A telephonic replay will be available approximately two hours after the call by dialing 844-512-2921, or for international callers, 412-317-6671. The passcode for the replay it is 13749081 The replay will be available until 11:59 p.m. (ET) on November 13, 2024.

Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company's website at http://investors.siteone.com. The online replay will be available for 30 days on the same website immediately following the call. A slide presentation highlighting the Company’s results and key performance indicators will also be available on the Investor Relations section of the Company’s website.

To learn more about SiteOne, please visit the company's website at http://investors.siteone.com.

About SiteOne Landscape Supply, Inc.

SiteOne Landscape Supply, Inc. (NYSE: SITE), is the largest and only national full product line wholesale distributor of landscape supplies in the United States and has a growing presence in Canada. Its customers are primarily residential and commercial landscape professionals who specialize in the design, installation and maintenance of lawns, gardens, golf courses and other outdoor spaces.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our 2024 Adjusted EBITDA outlook and our share repurchase program. Some of the forward-looking statements can be identified by the use of terms such as “may,” “intend,” “might,” “will,” “should,” “could,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “project,” “potential,” or the negative of these terms, and similar expressions. You should be aware that these forward-looking statements are subject to risks and uncertainties that are beyond our control. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. Factors that may cause actual results to differ materially from those expressed or implied by the forward-looking statements include, but are not limited to, the following: cyclicality in residential and commercial construction markets; general business, financial market, and economic conditions; seasonality of our business and its impact on demand for our products; severe weather and climate conditions, such as Hurricanes Helene and Milton; prices for the products we purchase may fluctuate; market variables, including inflation and elevated interest rates for prolonged periods; increases in operating costs; public perceptions that our products and services are not environmentally friendly or that our practices are not sustainable; climate, environmental, health and safety laws and regulations; hazardous materials and related materials; laws and government regulations applicable to our business that could negatively impact demand for our products; competitive industry pressures, including competition for our talent base; supply chain disruptions, product or labor shortages, and the loss of key suppliers; inventory management risks; ability to implement our business strategies and achieve our growth objectives; acquisition and integration risks, including increased competition for acquisitions; risks associated with our large labor force and our customers’ labor force and labor market disruptions; retention of key personnel; construction defect and product liability claims; impairment of goodwill; adverse credit and financial markets events and conditions; inefficient or ineffective allocation of capital; credit sale risks; performance of individual branches; cybersecurity incidents involving our systems or third-party systems; failure or malfunctions in our information technology systems; security of personal information about our customers; intellectual property and other proprietary rights; unanticipated changes in our tax provisions; threats from terrorism, violence, uncertain political conditions (including as a result of the upcoming 2024 elections), and geopolitical conflicts such as the ongoing conflict between Russia and Ukraine, the conflict in the Gaza Strip, and general unrest in the Middle East; risks related to our current indebtedness and our ability to obtain financing in the future; financial institution disruptions; risks related to our common stock; and other risks, as described in Item 1A, “Risk Factors”, and elsewhere in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as may be updated by subsequent filings under the Securities Exchange Act of 1934, as amended, including Forms 10-Q and 8-K.

Non-GAAP Financial Information

This release includes certain financial information, not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Further, these measures should not be considered substitutes for the information contained in the historical financial information of the Company prepared in accordance with U.S. GAAP that is set forth herein.

We present Adjusted EBITDA in order to evaluate the operating performance and efficiency of our business. Adjusted EBITDA represents EBITDA as further adjusted for items permitted under the covenants of our credit facilities. EBITDA represents Net income (loss) plus the sum of income tax (benefit) expense, interest expense, net of interest income, and depreciation and amortization. Adjusted EBITDA represents EBITDA as further adjusted for stock-based compensation expense, (gain) loss on sale of assets and termination of finance leases not in the ordinary course of business, financing fees, as well as other fees and expenses related to acquisitions, and other non-recurring (income) loss. Adjusted EBITDA includes Adjusted EBITDA attributable to non-controlling interest. Adjusted EBITDA does not include pre-acquisition acquired Adjusted EBITDA. Adjusted EBITDA is not a measure of our liquidity or financial performance under U.S. GAAP and should not be considered as an alternative to Net income, operating income or any other performance measures derived in accordance with U.S. GAAP, or as an alternative to cash flow from operating activities as a measure of our liquidity. The use of Adjusted EBITDA instead of Net income has limitations as an analytical tool. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies, limiting its usefulness as a comparative measure. Net debt is defined as long-term debt (net of issuance costs and discounts) plus finance leases, net of cash and cash-equivalents on our balance sheet. Leverage Ratio is defined as Net debt to trailing twelve months Adjusted EBITDA. Free Cash Flow is defined as Cash Flow from Operating Activities, less capital expenditures. Base Business is defined as SiteOne operations excluding acquired branches that have not been under our ownership for at least four full fiscal quarters at the start of the fiscal year. We define Organic Daily Sales as Organic Sales divided by the number of Selling Days in the relevant reporting period. We define Organic Sales as Net sales, including Net sales from newly-opened greenfield branches, but excluding Net sales from acquired branches until they have been under our ownership for at least four full fiscal quarters at the start of the fiscal year. Selling Days are the number of business days, excluding Saturdays, Sundays, and holidays, that SiteOne branches are open during the relevant reporting period.

SiteOne Landscape Supply, Inc.
Consolidated Balance Sheets (Unaudited)
(In millions, except share and per share data)

Assets

 

September 29, 2024

 

December 31, 2023

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

85.5

 

 

$

82.5

 

Accounts receivable, net of allowance for doubtful accounts of $25.8 and $27.3, respectively

 

 

574.9

 

 

 

490.6

 

Inventory, net

 

 

884.9

 

 

 

771.2

 

Income tax receivable

 

 

4.0

 

 

 

 

Prepaid expenses and other current assets

 

 

91.4

 

 

 

61.0

 

Total current assets

 

 

1,640.7

 

 

 

1,405.3

 

 

 

 

 

 

Property and equipment, net

 

 

288.4

 

 

 

249.4

 

Operating lease right-of-use assets, net

 

 

419.9

 

 

 

388.9

 

Goodwill

 

 

509.9

 

 

 

485.5

 

Intangible assets, net

 

 

268.3

 

 

 

280.8

 

Deferred tax assets

 

 

7.2

 

 

 

5.3

 

Other assets

 

 

11.8

 

 

 

13.7

 

Total assets

 

$

3,146.2

 

 

$

2,828.9

 

 

 

 

 

 

Liabilities, Redeemable Non-controlling Interest, and Stockholders' Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

327.8

 

 

$

270.8

 

Current portion of finance leases

 

 

28.1

 

 

 

21.8

 

Current portion of operating leases

 

 

86.1

 

 

 

83.6

 

Accrued compensation

 

 

67.5

 

 

 

74.2

 

Long-term debt, current portion

 

 

4.7

 

 

 

5.3

 

Income tax payable

 

 

 

 

 

8.0

 

Accrued liabilities

 

 

134.8

 

 

 

114.6

 

Total current liabilities

 

 

649.0

 

 

 

578.3

 

 

 

 

 

 

Other long-term liabilities

 

 

10.5

 

 

 

11.5

 

Finance leases, less current portion

 

 

96.1

 

 

 

69.8

 

Operating leases, less current portion

 

 

342.2

 

 

 

313.3

 

Deferred tax liabilities

 

 

 

 

 

2.3

 

Long-term debt, less current portion

 

 

405.9

 

 

 

367.6

 

Total liabilities

 

 

1,503.7

 

 

 

1,342.8

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Redeemable non-controlling interest

 

 

19.2

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

Common stock, par value $0.01; 1,000,000,000 shares authorized; 45,583,961 and 45,404,091 shares issued, and 45,118,918 and 45,082,070 shares outstanding at September 29, 2024 and December 31, 2023, respectively

 

 

0.5

 

 

 

0.5

 

Additional paid-in capital

 

 

620.9

 

 

 

601.8

 

Retained earnings

 

 

1,061.6

 

 

 

916.3

 

Accumulated other comprehensive income (loss)

 

 

(1.4

)

 

 

4.2

 

Treasury stock, at cost, 465,043 and 322,021 shares at September 29, 2024 and December 31, 2023, respectively

 

 

(58.3

)

 

 

(36.7

)

Total stockholders' equity

 

 

1,623.3

 

 

 

1,486.1

 

Total liabilities, redeemable non-controlling interest, and stockholders' equity

 

$

3,146.2

 

 

$

2,828.9

 

SiteOne Landscape Supply, Inc.
Consolidated Statements of Operations (Unaudited)
(In millions, except share and per share data)

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 29,
2024

 

October 1,
2023

 

September 29,
2024

 

October 1,
2023

Net sales

 

$

1,208.8

 

$

1,145.1

 

$

3,527.5

 

$

3,336.2

Cost of goods sold

 

 

797.8

 

 

757.0

 

 

2,305.0

 

 

2,171.6

Gross profit

 

 

411.0

 

 

388.1

 

 

1,222.5

 

 

1,164.6

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

349.1

 

 

311.8

 

 

1,020.6

 

 

923.8

Other income

 

 

8.0

 

 

4.9

 

 

15.3

 

 

11.4

Operating income

 

 

69.9

 

 

81.2

 

 

217.2

 

 

252.2

 

 

 

 

 

 

 

 

 

Interest and other non-operating expenses, net

 

 

9.5

 

 

6.4

 

 

25.2

 

 

20.6

Income before taxes

 

 

60.4

 

 

74.8

 

 

192.0

 

 

231.6

Income tax expense

 

 

15.8

 

 

17.5

 

 

46.1

 

 

54.8

Net income

 

 

44.6

 

 

57.3

 

 

145.9

 

 

176.8

 

 

 

 

 

 

 

 

 

Less: Net income attributable to non-controlling interest

 

 

0.2

 

 

 

 

0.6

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to SiteOne

 

$

44.4

 

$

57.3

 

$

145.3

 

$

176.8

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

Basic

 

$

0.98

 

$

1.27

 

$

3.21

 

$

3.92

Diluted

 

$

0.97

 

$

1.25

 

$

3.18

 

$

3.87

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

45,229,528

 

 

45,149,650

 

 

45,253,447

 

 

45,096,404

Diluted

 

 

45,572,078

 

 

45,747,398

 

 

45,647,670

 

 

45,690,285

SiteOne Landscape Supply, Inc.
Consolidated Statements of Cash Flows (Unaudited)
(In millions)

 

 

Nine Months Ended

 

 

September 29,
2024

 

October 1,
2023

Cash Flows from Operating Activities:

 

 

 

 

Net income

 

$

145.9

 

 

$

176.8

 

Adjustments to reconcile Net income to net cash provided by operating activities:

 

 

 

 

Amortization of finance lease right-of-use assets and depreciation

 

 

55.3

 

 

 

46.1

 

Stock-based compensation

 

 

19.5

 

 

 

20.7

 

Amortization of software and intangible assets

 

 

48.1

 

 

 

47.0

 

Amortization of debt related costs

 

 

1.0

 

 

 

0.9

 

Loss on extinguishment of debt

 

 

1.8

 

 

 

 

Gain on sale of equipment

 

 

(1.0

)

 

 

(0.4

)

Other

 

 

(5.8

)

 

 

(3.8

)

Changes in operating assets and liabilities, net of the effects of acquisitions:

 

 

 

 

Receivables

 

 

(72.4

)

 

 

(68.8

)

Inventory

 

 

(44.2

)

 

 

(45.4

)

Income tax receivable

 

 

(4.0

)

 

 

7.2

 

Prepaid expenses and other assets

 

 

(28.1

)

 

 

(37.2

)

Accounts payable

 

 

47.2

 

 

 

55.2

 

Income tax payable

 

 

(8.0

)

 

 

 

Accrued expenses and other liabilities

 

 

8.7

 

 

 

(8.4

)

Net Cash Provided By Operating Activities

 

$

164.0

 

 

$

189.9

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

Purchases of property and equipment

 

 

(31.0

)

 

 

(24.1

)

Purchases of intangible assets

 

 

(3.4

)

 

 

(5.3

)

Acquisitions, net of cash acquired

 

 

(110.4

)

 

 

(181.7

)

Proceeds from the sale of property and equipment

 

 

4.5

 

 

 

1.9

 

Net Cash Used In Investing Activities

 

$

(140.3

)

 

$

(209.2

)

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

Equity proceeds from common stock

 

 

5.1

 

 

 

3.0

 

Repurchases of common shares

 

 

(21.6

)

 

 

(0.6

)

Borrowings under term loan

 

 

220.1

 

 

 

120.0

 

Repayments under term loan

 

 

(197.0

)

 

 

(2.2

)

Borrowings on asset-based credit facilities

 

 

360.9

 

 

 

434.3

 

Repayments on asset-based credit facilities

 

 

(354.9

)

 

 

(461.8

)

Payments of debt issuance costs

 

 

(2.2

)

 

 

(1.8

)

Payments on finance lease obligations

 

 

(19.4

)

 

 

(13.2

)

Payments of acquisition related contingent obligations

 

 

(4.7

)

 

 

(5.6

)

Other financing activities

 

 

(6.8

)

 

 

(7.0

)

Net Cash (Used In) Provided By Financing Activities

 

$

(20.5

)

 

$

65.1

 

 

 

 

 

 

Effect of exchange rate on cash

 

 

(0.2

)

 

 

 

Net change in cash

 

 

3.0

 

 

 

45.8

 

Cash and cash equivalents:

 

 

 

 

Beginning

 

 

82.5

 

 

 

29.1

 

Ending

 

$

85.5

 

 

$

74.9

 

 

 

 

 

 

Supplemental Disclosures of Cash Flow Information:

 

 

 

 

Cash paid during the year for interest

 

$

23.0

 

 

$

19.8

 

Cash paid during the year for income taxes

 

$

56.3

 

 

$

46.0

 

SiteOne Landscape Supply, Inc.
Adjusted EBITDA to Net Income Reconciliation (Unaudited)
(In millions)

The following table presents a reconciliation of Adjusted EBITDA to Net income (loss):

 

 

2024

 

 

2023

 

 

 

2022

 

 

 

 

Qtr 3

 

Qtr 2

 

Qtr 1

 

Qtr 4

 

Qtr 3

 

Qtr 2

 

Qtr 1

 

Qtr 4

 

Reported Net income (loss)

$

44.6

 

$

120.6

 

 

$

(19.3

)

 

$

(3.4

)

 

$

57.3

 

 

$

124.0

 

$

(4.5

)

 

$

(0.9

)

 

 

Income tax expense (benefit)

 

15.8

 

 

40.0

 

 

 

(9.7

)

 

 

(5.0

)

 

 

17.5

 

 

 

40.0

 

 

(2.7

)

 

 

(4.6

)

 

 

Interest expense, net

 

9.5

 

 

9.0

 

 

 

6.7

 

 

 

6.5

 

 

 

6.4

 

 

 

7.3

 

 

6.9

 

 

 

5.5

 

 

 

Depreciation and amortization

 

35.9

 

 

34.6

 

 

 

32.9

 

 

 

34.6

 

 

 

31.3

 

 

 

31.0

 

 

30.8

 

 

 

31.6

 

 

EBITDA

 

105.8

 

 

204.2

 

 

 

10.6

 

 

 

32.7

 

 

 

112.5

 

 

 

202.3

 

 

30.5

 

 

 

31.6

 

 

 

Stock-based compensation(a)

 

5.2

 

 

3.8

 

 

 

10.5

 

 

 

5.0

 

 

 

5.0

 

 

 

7.1

 

 

8.6

 

 

 

4.3

 

 

 

(Gain) loss on sale of assets(b)

 

0.3

 

 

(0.3

)

 

 

(1.0

)

 

 

(0.1

)

 

 

(0.2

)

 

 

0.2

 

 

(0.4

)

 

 

0.2

 

 

 

Financing fees(c)

 

0.5

 

 

 

 

 

 

 

 

 

 

 

0.4

 

 

 

0.1

 

 

 

 

 

 

 

 

Acquisitions and other adjustments(d)

 

3.0

 

 

2.8

 

 

 

1.0

 

 

 

2.3

 

 

 

2.1

 

 

 

1.5

 

 

1.1

 

 

 

2.8

 

 

Adjusted EBITDA(e)

$

114.8

 

$

210.5

 

 

$

21.1

 

 

$

39.9

 

 

$

119.8

 

 

$

211.2

 

$

39.8

 

 

$

38.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

____________________________________

(a) Represents stock-based compensation expense recorded during the period.

(b) Represents any gain or loss associated with the sale of assets and termination of finance leases not in the ordinary course of business.

(c) Represents fees associated with our debt refinancing and debt amendments.

(d) Represents professional fees, performance bonuses, and retention and severance payments related to historical acquisitions, as well as the cost of inventory that was stepped up to fair value during the second quarter of 2024 related to the purchase accounting of Devil Mountain. We cannot predict the timing or amount of any such fees or payments. These amounts are recorded in Cost of goods sold and Selling, general and administrative expenses in the Consolidated Statements of Operations.

(e) Adjusted EBITDA excludes any earnings or loss of acquisitions prior to their respective acquisition dates for all periods presented. Adjusted EBITDA includes Adjusted EBITDA attributable to non-controlling interest of $0.8 million and $0.9 million for the third and second quarter of 2024, respectively.

SiteOne Landscape Supply, Inc.
Organic Daily Sales to Net Sales Reconciliation (Unaudited)
(In millions, except Selling Days)

The following table presents a reconciliation of Organic Daily Sales to Net sales:

 

2024

 

2023

 

Qtr 3

 

Qtr 2

 

Qtr 1

 

Qtr 3

 

Qtr 2

 

Qtr 1

Reported Net sales

$

1,208.8

 

$

1,413.9

 

$

904.8

 

$

1,145.1

 

$

1,353.7

 

$

837.4

Organic Sales(a)

 

1,089.6

 

 

1,291.5

 

 

840.7

 

 

1,103.2

 

 

1,334.5

 

 

835.8

Acquisition contribution(b)

 

119.2

 

 

122.4

 

 

64.1

 

 

41.9

 

 

19.2

 

 

1.6

Selling Days

 

63

 

 

64

 

 

64

 

 

63

 

 

64

 

 

64

Organic Daily Sales

$

17.3

 

$

20.2

 

$

13.1

 

$

17.5

 

$

20.9

 

$

13.1

_____________________________________

(a) Organic sales equal Net sales less Net sales from branches acquired in 2024 and 2023.

(b) Represents Net sales from acquired branches that have not been under our ownership for at least four full fiscal quarters at the start of the 2024 Fiscal Year. Includes Net sales from branches acquired in 2024 and 2023.

Investor Relations:

SiteOne Landscape Supply, Inc.

Investor Relations

470-270-7011

investors@siteone.com

Source: SiteOne Landscape Supply, Inc.

FAQ

What was SiteOne's (SITE) revenue growth in Q3 2024?

SiteOne's net sales increased 6% to $1.21 billion in Q3 2024 compared to Q3 2023.

How much did SiteOne's (SITE) net income decline in Q3 2024?

SiteOne's net income decreased by $12.9 million to $44.4 million compared to $57.3 million in Q3 2023.

What is SiteOne's (SITE) Adjusted EBITDA guidance for fiscal 2024?

SiteOne expects Adjusted EBITDA to be between $370 million and $380 million for fiscal 2024, including a $5 million one-time charge.

How many branches is SiteOne (SITE) planning to close in Q4 2024?

SiteOne plans to consolidate or close 16 branches in Q4 2024, resulting in a one-time charge of approximately $5 million.

SiteOne Landscape Supply, Inc.

NYSE:SITE

SITE Rankings

SITE Latest News

SITE Stock Data

6.71B
44.43M
1.54%
106.05%
4.5%
Industrial Distribution
Wholesale-professional & Commercial Equipment & Supplies
Link
United States of America
ROSWELL