Q1 2024 SiteOne Landscape Supply Inc Earnings Call Transcript
Key Points
- SiteOne Landscape Supply Inc reported an 8% net sales growth in the first quarter, driven by organic daily sales growth and acquisitions.
- The company successfully integrated 16 companies in the previous year, showcasing strong capabilities in managing and integrating new acquisitions.
- SiteOne Landscape Supply Inc continues to expand its market presence and product lines through strategic acquisitions, adding two high-performing companies in April.
- Despite commodity price deflation, the company achieved organic sales volume growth of 5%, indicating effective market share gains and robust demand management.
- SiteOne Landscape Supply Inc maintains a strong balance sheet with significant liquidity, ensuring readiness for ongoing investments and acquisitions.
- The company experienced a 47% decline in adjusted EBITDA for the quarter, with a 250 basis point decrease in adjusted EBITDA margin.
- Persistent commodity price deflation led to a temporary negative impact on organic daily sales growth, gross margin, and adjusted EBITDA margin.
- Gross profit increased by only 5% due to ongoing price deflation in commodity products, which continues to pose a near-term challenge to gross margin.
- SG&A expenses as a percentage of net sales increased by 140 basis points, driven by acquisitions and a significant increase in healthcare costs in the base business.
- The company recorded a net loss of $90.3 million for the first quarter of 2024, attributed to higher SG&A and reduced gross margin, despite an increase in net sales.
Good morning, and welcome to the SiteOne Landscape Supply First Quarter 2024 Earnings Call. (Operator Instructions)
Please note this event is being recorded. I would now like to turn the conference over to John Guthrie, CFO. Please go ahead.
Thank you, and good morning, everyone. We issued our first quarter 2024 earnings press release this morning, and posted a slide presentation to the Investor Relations portion of our website at investors.siteone.com. I'm joined today by Doug Black, our Chairman and Chief Executive Officer; and Scott Salmon, Executive Vice President, Strategy and Development.
Before we begin, I would like to remind everyone that today's press release, slide presentation and the statements made during the call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from
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