SiteOne Landscape Supply (NYSE: SITE) reported Q1 EPS of $0.16, $0.60 better than the analyst estimate of ($0.44). Revenue for the quarter came in at $650.2 million versus the consensus estimate of $537.96 million.

First Quarter 2021 Highlights (Compared to First Quarter 2020):

• Net sales increased by 41% to $650.2 million
• Organic Daily Sales increased by 32%
• Gross profit increased 41% to $201.5 million; gross margin decreased 10 basis points to 31.0%
• SG&A as a percentage of Net sales decreased by 670 basis points to 29.6%
• Net income increased to $7.4 million from a Net loss of ($17.5) million
• Adjusted EBITDA increased to $34.5 million from a loss of ($3.6) million
• Adjusted EBITDA margin increased 610 basis points to 5.3%
• Closed two acquisitions: Lucky Landscape Supply and Arizona Stone and Solstice

“Following our strong finish last year, we are off to a fantastic start in 2021 as our talented and seasoned teams continue to provide outstanding service and support to our customers and take advantage of the ongoing robust market demand for landscaping products and services,” said Doug Black, SiteOne’s Chairman and CEO. “With favorable demand across all regions and product lines, we achieved record Organic Daily Sales growth and excellent operating leverage resulting in strong EBITDA growth. Additionally, we have added four new high-performing companies to the SiteOne family, while continuing to invest in our commercial and operational initiatives. Overall, I am pleased that we are executing our strategy at a high level and gaining strength as a company, which is allowing us to take advantage of the current market developments while setting us up for continued performance and growth in the longer term. We expect the underlying market trends to remain positive and are confident in our ability to deliver superior results to our stakeholders in 2021 and beyond.”

Outlook

“Sales continued to be strong in April and we are pleased with the momentum in our business as we approach the tougher comparable sales from last year, which started in June and continued through December. Though we expect our growth this year to moderate significantly in the second half, we believe the underlying market trends will remain positive. Given the stronger than expected first four months, we are raising our expectations for full year 2021. We now expect low-double digit Organic Daily Sales growth for the full year, compared to our prior expectation for mid-single digit growth,” Doug Black continued.

We expect Adjusted EBITDA for 2021 to be in the range of $300 million to $320 million, representing year-over-year growth of 15% to 23%. This compares to our prior expectation for Adjusted EBITDA of $275 million to $292 million. This guidance does not include any contribution from unannounced acquisitions.

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