SiteOne Landscape (SITE) came out with a quarterly loss of $0.61 per share versus the Zacks Consensus Estimate of a loss of $0.50. This compares to loss of $0.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -22%. A quarter ago, it was expected that this company would post a loss of $0.28 per share when it actually produced a loss of $0.48, delivering a surprise of -71.43%.Over the last four quarters, the company has surpass ...

Financial Data and Key Metrics Changes - The company achieved 4% net sales growth and 6% growth in adjusted EBITDA during Q1 2025, despite challenging weather conditions [4][12] - Adjusted EBITDA for the quarter increased to $22.4 million, with an adjusted EBITDA margin improvement of 10 basis points to 2.4% [15][28] - The net loss attributable to the company was $27.3 million for Q1 2025, compared to a loss of $19.3 million in the prior year [27] Business Line Data and Key Metrics Changes - Organic daily sales for agronomic products increased by 7%, while landscaping products saw a decline of 4% due to lower prices and a softer market [24] - Acquisitions contributed approximately $45 million or 5% to net sales growth [25] - Selling, general and administrative expenses (SG&A) increased by 5% to approximately $343 million, with SG&A as a percentage of net sales rising to 36.5% [25][26] Market Data and Key Metrics Changes - Four out of nine regions achieved positive organic daily sales growth in Q1 2025, with weather and tough comparisons being the primary differentiators [24] - The company estimates its market share at approximately 18% in a fragmented $25 billion wholesale landscaping products distribution market [6][7] - The repair and upgrade market, representing 30% of sales, was the weakest end market in 2024, with expectations of low single-digit declines in 2025 [38] Company Strategy and Development Direction - The company continues to execute its acquisition strategy, having completed its 100th acquisition in March 2025, adding over $2 billion in acquired revenue since 2014 [12][33] - The strategy focuses on leveraging scale and resources to support local teams, driving organic growth, and improving productivity [9][10] - The company aims to fill in its product portfolio primarily through acquisitions, especially in nursery, hardscapes, and landscape supplies categories [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating market uncertainties and achieving solid performance in 2025, despite macroeconomic challenges [5][20] - The outlook for pricing in 2025 has been revised to flat to up 1%, reflecting current prices and announced increases from suppliers [23][35] - The company expects low single-digit organic daily sales growth for the full year 2025, supported by positive sales volume trends observed in April [40] Other Important Information - The company has a robust pipeline of potential acquisition deals, although 2025 may see lower acquired revenue compared to previous years due to market uncertainties [20][33] - The effective tax rate for Q1 2025 was 25.5%, down from 33.4% in the prior year, primarily due to a decrease in excess tax benefits from stock-based compensation [27] Q&A Session Summary Question: Can you define recent wins in Dispatch Track and focus branch efforts? - Management highlighted significant progress in both areas, with Dispatch Track improving delivery efficiency and focus branches showing overhead savings and improved customer service [46][48] Question: What efforts are being targeted to gain a larger share of wallet from existing customers? - The company is focusing on increasing product lines for existing customers and targeting small customers, where market share is currently low [50][52] Question: What is the expectation for organic sales growth in Q2? - Management expects low single-digit organic growth in Q2, with pricing anticipated to be roughly negative 1% to flat [61][62] Question: Can you provide details on the impact of tariffs? - The company indicated that 10% to 15% of sales are indirectly affected by tariffs, primarily from suppliers sourcing from Mexico and China [63][64] Question: How are you managing inventory levels amid inflationary pressures? - The company is selectively purchasing inventory to mitigate risks associated with supply chain disruptions and inflation [76] Question: How do you balance cash for acquisitions versus share repurchases? - Management emphasized maintaining a strong balance sheet while being selective in capital allocation, considering both acquisitions and share repurchases [78] Question: What is the outlook for gross margins? - The company expects gross margins to remain steady for the year, with improvements primarily coming from SG&A leverage rather than significant changes in gross margin [82][83]

SiteOne Landscape Supply (SITE) Q1 2025 Earnings Call April 30, 2025 08:00 AM ET Company Participants John Guthrie - Executive VP, CFO & Assistant SecretaryDoug Black - Chief Executive OfficerScott Salmon - Executive Vice President of Strategy & DevelopmentDamian Karas - Executive DirectorMike Dahl - Managing Director - Equity ResearchW. Andrew Carter - Vice PresidentCollin Verron - Director Conference Call Participants David Manthey - Senior Research AnalystRyan Merkel - Research AnalystCharles Perron-Pich ...

First Quarter 2025 Earnings Disclaimer Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our acquisition pipeline, organic and acquisition growth, and 2025 Adjusted EBITDA outlook. Some of the forward-looking statements can be identified by the use of terms such as "may," "intend," "might," "will," "should," "could ...

Financial Performance - Net sales for Q1 2025 increased by 4% to $939.4 million compared to $904.8 million in Q1 2024[4] - Net sales for the first quarter of 2025 increased to $939.4 million, up from $904.8 million in the same period of 2024, representing a growth of approximately 3.9%[26] - Organic sales for Q1 2025 were reported at $894.3 million, while acquisition contributions added $45.1 million to net sales[34] - Gross profit increased by 3% to $309.8 million, with gross margin contracting by 30 basis points to 33.0%[5] - Adjusted EBITDA increased by 6% to $22.4 million, with an Adjusted EBITDA margin improvement of 10 basis points to 2.4%[9] - The adjusted EBITDA for Q1 2025 was $22.4 million, compared to $21.1 million in Q1 2024, showing a slight improvement[30] Expenses and Losses - SG&A expenses rose to $343.2 million, with SG&A as a percentage of net sales increasing by 30 basis points to 36.5%[6] - The company incurred $343.2 million in selling, general and administrative expenses in Q1 2025, an increase from $327.7 million in Q1 2024[26] - Net loss attributable to SiteOne was $27.3 million, compared to $19.3 million in the prior year period[7] - The company reported a net loss of $27.5 million for Q1 2025, compared to a net loss of $19.3 million in Q1 2024, indicating a deterioration in profitability[26] Assets and Liabilities - Total current assets rose to $1,747.0 million as of March 30, 2025, compared to $1,549.6 million at the end of 2024, reflecting an increase of 12.8%[24] - The company's total liabilities increased to $1,688.2 million as of March 30, 2025, up from $1,478.9 million at the end of 2024, marking a rise of 14.2%[24] - Cash and cash equivalents decreased to $56.6 million at the end of Q1 2025, down from $107.1 million at the end of 2024, a decline of 47.2%[27] - Inventory levels increased significantly to $1,032.1 million as of March 30, 2025, compared to $827.2 million at the end of 2024, reflecting a rise of 24.8%[24] Future Outlook - The company expects full-year Adjusted EBITDA to be in the range of $400 million to $430 million for 2025[11] - The company anticipates low single-digit Organic Daily Sales growth for the full year 2025[11] Acquisitions - The acquisition of Green Trade Nursery was completed during the quarter, contributing to growth[2] Sales Trends - Organic Daily Sales decreased by 1% due to a later start to the spring selling season and lower prices for commodity products[4]

Financial Performance - For the three months ended March 30, 2025, Organic Daily Sales declined by 1% compared to the prior year period, primarily due to a later start to the spring selling season and lower prices for commodity products [118]. - Net sales growth for the same period was 4%, primarily driven by acquisitions, despite a negative pricing trend that began in the second half of the 2023 Fiscal Year [118]. - Gross margin decreased by 30 basis points for the three months ended March 30, 2025, primarily due to lower price realization and higher freight expenses [118]. - Net loss attributable to SiteOne was $27.3 million for the three months ended March 30, 2025, compared to a net loss of $19.3 million for the same period in 2024 [118]. - Net cash used in operating activities was $129.6 million for the three months ended March 30, 2025, compared to $99.3 million for the same period in 2024 [118]. - Selling, general and administrative expenses increased by 5% for the three months ended March 30, 2025, primarily reflecting the impact of acquisitions [118]. - Net sales for the three months ended March 30, 2025, increased 4% to $939.4 million compared to $904.8 million for the same period in 2024, primarily driven by acquisitions [141]. - Organic Daily Sales decreased 1% year-over-year due to a later start to the spring selling season and lower prices for commodity products, with acquisitions contributing $45.1 million, or 5%, to net sales growth [141]. - Gross profit rose 3% to $309.8 million, while gross margin decreased by 30 basis points to 33.0% due to lower price realization and higher freight expenses [145]. - Net income attributable to SiteOne for Q1 2025 was a loss of $27.3 million, compared to a loss of $19.3 million in Q1 2024 [157]. - Adjusted EBITDA for Q1 2025 was $22.4 million, down from $21.1 million in Q1 2024 [157]. - The company reported a net loss per share of $0.61 for Q1 2025, compared to a loss of $0.43 per share in Q1 2024 [157]. - The contribution from acquisitions in Q1 2025 was $45.1 million, with no contribution from acquisitions in Q1 2024 [161]. - The company reported an operating loss of $29.5 million in Q1 2025, compared to a loss of $22.3 million in Q1 2024 [157]. Economic Outlook - The company anticipates sustained pressure on net sales growth and net income for the foreseeable future due to economic challenges [118]. - The long-term outlook for the landscape supply industry remains strong, driven by favorable population trends and continued interest in outdoor living [119]. - The impact of pricing is projected to be flat to up 1% for the 2025 Fiscal Year, indicating a potential improvement in pricing trends [118]. Strategic Initiatives - The company has a robust acquisition pipeline and remains committed to driving growth organically and through acquisitions [119]. - The company continues to focus on strategic initiatives to improve profitability, enhance supply chain efficiency, and invest in technology systems and data analytics [137]. - The company completed several acquisitions since the start of the 2024 Fiscal Year, including Devil Mountain Wholesale Nursery and Custom Stone, enhancing its product lines and geographic reach [135]. Cash Flow and Financing - Net cash used in investing activities increased to $21.0 million for the three months ended March 30, 2025, from $7.3 million in the prior year, reflecting higher capital expenditures [170]. - Net cash provided by financing activities was $100.0 million for the three months ended March 30, 2025, compared to $65.7 million for the same period in 2024, driven by higher borrowings under the ABL Facility [171]. - The company incurred $325.0 million of new term loans as part of the Fifth Amendment to the Amended and Restated Credit Agreement [172]. - The company expects sufficient liquidity from cash on hand and operations to meet its requirements for the next 12 months [164]. - Working capital increased by $97.4 million to $1,006.2 million as of March 30, 2025, primarily due to seasonal business factors and early inventory purchases [167]. Interest Rates and Debt - The effective tax rate for the first quarter of 2025 was 25.5%, down from 33.4% in the prior year, primarily due to a decrease in excess tax benefits from stock-based compensation [149]. - Interest and other non-operating expenses increased to $7.4 million for the three months ended March 30, 2025, attributed to higher average borrowings [148]. - The interest rate on the outstanding balance of the Tranche B Term Loans was 6.06406% as of March 30, 2025 [178]. - The weighted average interest rate on outstanding balances under the ABL Facility was 5.54866% as of March 30, 2025 [183]. - The ABL Facility has a maturity date of July 22, 2027, with a total commitment amount of $600.0 million [181]. - The company has a minimum consolidated fixed charge coverage ratio of at least 1.00 to 1.00, tested when specified availability is below 10% [187]. - Interest rate swaps were utilized to convert variable interest rates to fixed rates, with existing contracts terminated upon maturity on March 23, 2025 [201]. - The company has recognized $5.9 million in liabilities related to interest rate swap arrangements, reclassified into long-term debt [196]. - The company is subject to interest rate risk due to existing and future debt issuances, with all term loan borrowings now subject to variable interest rates following the termination of interest rate swaps [201]. Regulatory and Compliance - The ability of subsidiaries to pay dividends is restricted based on their operating results and financial condition [191]. - The agreements governing the credit facilities restrict subsidiaries from making distributions or loans to the parent company [192]. - There have been no material changes to critical accounting estimates, including inventory valuation and goodwill, as noted in the most recent Annual Report [198]. - The company has a commitment fee of 0.25% on undrawn portions of the Devil Mountain ABL Facility [190].

SITE Centers Corp’s (SITC) well-located portfolio of retail real estate assets, concentrated mostly in the suburban and high household income regions, positions it well for growth. Its solid tenant roster and focus on the capital-recycling program augur well. However, rising e-commerce adoption and elevated interest rates add to its woes.What’s Aiding SITC?SITE Centers has a well-placed portfolio concentrated mostly in the suburban and high household income communities. The company’s shopping center portfol ...

SiteOne Landscape (SITE) shares rallied 9% in the last trading session to close at $114.18. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 15.8% loss over the past four weeks.SiteOne Landscape recently acquired Green Trade Nursery of Georgia (Green Trad), a wholesale distributor of nursery products with one location in Jasper, GA, north of Atlanta. SiteOne continues to expand the number of markets in which i ...

Group 1 - SITE Centers (NYSE: SITC) has underperformed in 2025, delivering a negative return of approximately 16% compared to the Vanguard Real Estate Index Fund ETF (VNQ) and Curbline Properties (CURB) [1] - The investment strategy includes a focus on REITs, preferred stocks, and high-yield bonds, with a long-term fundamental approach [1] Group 2 - The article expresses a beneficial long position in CBL shares, indicating a personal investment interest [2] - The content reflects the author's opinions and is not influenced by compensation from any mentioned companies [2]

Core Viewpoint - SITE Centers Corp. reported disappointing fourth-quarter 2024 results, with significant declines in both revenues and operating funds from operations (OFFO) per share, leading to a 5.03% drop in share price on the NYSE [1][2]. Financial Performance - The company generated revenues of $32.9 million, missing the Zacks Consensus Estimate of $42.7 million, and reflecting a year-over-year decline of 66.4% [2]. - OFFO per share was reported at 16 cents, falling short of the Zacks Consensus Estimate of 23 cents, and representing an 84.5% decrease year-over-year [1][2]. - For the full year 2024, OFFO per share was $3.17, down 33% from the previous year and below the Zacks Consensus Estimate of $3.24 [3]. - Total revenues for 2024 were $271.1 million, a 39.2% decline year-over-year, also missing the Zacks Consensus Estimate of $366.8 million [3]. Leasing Metrics - The leased rate was reported at 91.1% as of December 31, 2024, slightly down from 91.3% as of September 30, 2024, and lower than the prior year's figure of 92.2% [4]. - The commenced rate improved to 90.6% as of December 31, 2024, up from 89.8% as of September 30, 2024, and better than the year-ago quarter's 89.6% [4]. - The base rent per square foot increased to $19.64 as of December 31, 2024, compared to $19.42 recorded a year ago [4]. Cash Position - SITE Centers exited the fourth quarter with $54.6 million in cash, a significant decrease from $1.06 billion as of September 30, 2024 [5]. Industry Comparison - Federal Realty Investment Trust (FRT) reported fourth-quarter 2024 FFO per share of $1.73, in line with estimates and up 5.5% year-over-year, indicating healthy leasing activity [6]. - Regency Centers Corporation (REG) reported fourth-quarter 2024 NAREIT FFO per share of $1.09, exceeding estimates and reflecting a 6.9% increase from the prior year, supported by strong leasing activity [7].