SiteOne Landscape Supply (NYSE: SITE) reported Q1 EPS of ($0.59), $0.10 worse than the analyst estimate of ($0.49). Revenue for the quarter came in at $417.3 million versus the consensus estimate of $426.13 million.

• Net sales increased by 12% to $417.3 million
• Organic Daily Sales increased by 5%
• Gross profit increased 20% to $130.0 million; gross margin expanded 200 basis points to 31.2%
• Net loss of $24.1 million, compared to net loss of $17.0 million in the prior year period
• Adjusted EBITDA loss of $5.9 million, compared to loss of $5.1 million in the prior year period
• Completed two acquisitions: Cutting Edge and All Pro Horticulture

Post-Quarter Highlights:

• Completed two acquisitions: Landscape Depot Supply and Fisher’s Landscape Depot

“We are off to a solid start in 2019 with mid-single digit organic sales growth and excellent gross margin expansion, though Adjusted EBITDA was dampened by the timing of costs during our slowest part of the year. Organic Daily Sales ramped up in the last two weeks of March and we are seeing good momentum continue in April as we move through our busy spring season. Market demand is healthy and we remain focused on delivering superior value to our customers and suppliers in order to gain organic market share,” said Doug Black, SiteOne’s Chairman and Chief Executive Officer. “During the quarter we made good progress on our initiatives to build new commercial and operational capabilities for the future. We also completed two acquisitions during the quarter and two more since quarter end which have enhanced our competitive position in those markets. With solid market demand, our initiatives on track, and a robust acquisition pipeline, we remain confident in our outlook for the full year.”

Outlook

For 2019, we continue to expect Adjusted EBITDA to be in the range of $193 million to $207 million, representing year-over-year growth of 10-18%. This guidance does not include any contributions from unannounced acquisitions.

Reconciliation for the forward-looking full-year 2019 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.

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