SiteOne Landscape Supply (NYSE: SITE) reported Q4 EPS of ($0.05), $0.02 better than the analyst estimate of ($0.07). Revenue for the quarter came in at $474.6 million versus the consensus estimate of $474.59 million.

• Net sales increased by 14% to $474.6 million
• Organic Daily Sales increased by 4%
• Gross profit increased 13% to $148.7 million; gross margin decreased 40 basis points to 31.3%
• Net loss of $2.1 million, compared to net income of $4.0 million in the prior year period
• Adjusted EBITDA increased 18% to $18.1 million; adjusted EBITDA margin increased 10 basis points to 3.8%
• Completed two acquisitions: C&C Sand and Stone and All Around Landscape Supply

“Despite the inflationary headwinds in the first half of 2018 coupled with challenging weather in both the spring and fall seasons, our teams worked hard to deliver another year of double digit growth in net sales and adjusted EBITDA. We regained our EBITDA margin expansion momentum in both the third and fourth quarters, executed on a number of strategic and operational initiatives during the year, achieved strong organic growth in our important agronomics (primarily maintenance) product line and added approximately $230 million in TTM net sales through the acquisition of 13 excellent companies,” said Doug Black, SiteOne’s Chairman and CEO. “We enter 2019 with our three distribution centers and our e-Commerce platform up and running, an expanded product mix and stronger teams and good momentum on our initiatives – all positioning us to further execute our strategy and deliver strong performance and growth in a solid market demand environment.”

Outlook

“We expect an overall solid market in 2019 to support continued organic daily sales growth in the mid-single digits,” Doug Black continued. “We expect the construction markets to be driven by stronger activity in commercial construction and repair and upgrade partially offset by softening growth in new residential construction. We expect steady demand in the maintenance end market where we are beginning to achieve consistent market share gains with our agronomic product lines. Organic sales growth should also be supported by continued inflation. Our acquisition pipeline remains robust which should support another year of healthy activity, following a strong 2018. Lastly, we expect to make good progress improving our Adjusted EBITDA margin during 2019.”

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