SiteOne Landscape Supply Inc (NYSE:SITE)
$ 152.54 2.02 (1.34%) Market Cap: 6.88 Bil Enterprise Value: 7.67 Bil PE Ratio: 49.37 PB Ratio: 4.24 GF Score: 92/100

Q3 2024 SiteOne Landscape Supply Inc Earnings Call Transcript

Oct 30, 2024 / 12:00PM GMT
Release Date Price: $148.2 (+3.65%)

Key Points

Positve
  • SiteOne Landscape Supply Inc (SITE) achieved a 6% net sales growth in the third quarter, driven by acquisitions and a 2% organic sales volume growth.
  • The company added 7% sales growth from acquisitions and welcomed one additional company to SiteOne during the quarter.
  • SiteOne Landscape Supply Inc (SITE) has a robust acquisition pipeline, having completed 96 acquisitions since 2014, which strengthens its market position.
  • The company is making significant progress in integrating Pioneer, which is expected to improve performance and contribute positively in 2025.
  • SiteOne Landscape Supply Inc (SITE) is leveraging digital sales, which have increased by over 170% year-to-date, enhancing customer connectivity and market share.
Negative
  • SiteOne Landscape Supply Inc (SITE) faced significant market headwinds, including commodity price deflation and reduced demand in the repair and upgrade market, impacting sales growth and margins.
  • The company experienced a 3% price decline in the third quarter, primarily driven by double-digit declines in PVC pipe and grass seed prices.
  • Adjusted EBITDA for the quarter decreased by 4% year-over-year, with a 100 basis point decline in adjusted EBITDA margin to 9.5%.
  • SiteOne Landscape Supply Inc (SITE) expects continued challenges from market headwinds, including the impact of Hurricane Milton, affecting the full-year financial outcome.
  • The integration of Pioneer has been slower and more costly than initially planned, contributing to adjusted EBITDA margin dilution.
Operator

Greetings, and welcome to the SiteOne Landscape Supply, Inc. third quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, John Guthrie, Executive Vice President and Chief Financial Officer. Thank you. You may begin.

John Guthrie
SiteOne Landscape Supply Inc - Chief Financial Officer, Executive Vice President, Assistant Secretary

Thank you, and good morning, everyone. We issued our third quarter's 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 this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to

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