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SiteOne Landscape Supply (SITE) Tops Q4 EPS by 32c, Revenues Beat

February 24, 2021 6:13 AM EST

SiteOne Landscape Supply (NYSE: SITE) reported Q4 EPS of $0.25, $0.32 better than the analyst estimate of ($0.07). Revenue for the quarter came in at $675.1 million versus the consensus estimate of $608.56 million.

Fourth Quarter 2020 Highlights (Compared to Fourth Quarter 2019):

  • Net sales increased by 26% to $675.1 million
  • Organic Daily Sales increased by 12%
  • Gross profit increased 31% to $222.3 million; gross margin increased 110 basis points to 32.9%
  • SG&A as a percentage of Net sales decreased by 120 basis points to 30.0%
  • Net income increased to $11.5 million from $2.5 million
  • Adjusted EBITDA increased by $21.7 million, or 98%, to $43.9 million; Adjusted EBITDA margin increased 240 basis points to 6.5%
  • Closed five acquisitions: BURNCO Landscape Centres, Hedberg Supply, Alpine Materials, Dirt & Rock, and Stone Center of Virginia

“With strong demand for our products, we delivered an excellent fourth quarter performance and finished the year with exceptional results on all fronts. I am very proud of the entire SiteOne team for their passion, commitment and teamwork in overcoming the many challenges and uncertainties of 2020 and delivering outstanding service and support to our customers and terrific results for our other key stakeholders,” said Doug Black, SiteOne’s Chairman and CEO. “The stay at home trend associated with COVID-19 has increased demand for new homes and accelerated investment in outdoor living, both of which have increased demand for landscaping products. This strong demand, coupled with our market share gains, helped us to achieve 8% Organic Daily Sales growth for the year. Our teams leveraged the strong sales growth through disciplined cost management and great execution of our initiatives to achieve excellent Adjusted EBITDA growth, Adjusted EBITDA margin expansion and record operating cash flow. We did this while serving our customers better than ever before, which was reflected in our highest customer Net Promoter Score to date. We also finished the year well from an M&A standpoint, adding five more exceptional companies to our team in the fourth quarter, bringing the total to eleven acquisitions for the full year. We are entering 2021 with a stronger team, stronger systems, a stronger balance sheet and greater momentum than at any time in our history. Accordingly, we remain confident in our ability to execute our strategy and deliver superior performance and growth in 2021 and beyond.”

Outlook

“We are pleased with the continuing momentum in our business and the current favorable underlying demand trends,” Doug Black continued. “As we look out over the full year, we expect to achieve mid-single digit Organic Daily Sales growth, with strong growth in the first half of the year moderating in the second half with more difficult comparisons. We also expect another year of healthy margin expansion, cash flow generation, and contribution from acquired companies.”

For 2021 we expect Adjusted EBITDA to be in the range of $275 million to $292 million, representing year-over-year growth of 6% to 12%. This guidance does not include any contributions from unannounced acquisitions.

Reconciliation for the forward-looking full-year 2021 Adjusted EBITDA outlook is not being provided, as the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation.

For earnings history and earnings-related data on SiteOne Landscape Supply (SITE) click here.



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