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 [5][12] - Adjusted EBITDA for the quarter increased 6% to $22.4 million, with an adjusted EBITDA margin improvement of 10 basis points to 2.4% [16][29] - 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 [28] Business Line Data and Key Metrics Changes - Organic daily sales decreased 1% in Q1 2025, with agronomic products increasing by 7% and landscaping products decreasing by 4% [25][23] - Acquisitions contributed approximately $45 million or 5% to net sales growth [26] - Selling, general and administrative expenses (SG&A) increased 5% to approximately $343 million, with SG&A as a percentage of net sales rising to 36.5% [26][16] 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 [25] - The company estimates its market share at approximately 18% in a fragmented $25 billion wholesale landscaping products distribution market [7] Company Strategy and Development Direction - The company aims to leverage its scale and resources to deliver superior value to customers and suppliers while focusing on organic growth and acquisitions [9][10] - The acquisition strategy remains robust, with the company completing its 100th acquisition in March 2025, adding over $2 billion in acquired revenue since 2014 [12][33] - The company plans 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 expects commodity price deflation to continue moderating in 2025, with price increases expected to offset declines in certain products [37] - The outlook for new residential single-family completions is flat for 2025, with mixed feedback from builders regarding future demand [38][39] - The company anticipates low single-digit organic daily sales growth for the full year 2025, supported by strong commercial initiatives [41] Other Important Information - The company has increased its working capital to approximately $1 billion, primarily due to acquisitions and early inventory purchases [30] - The effective tax rate for Q1 2025 was 25.5%, down from 33.4% in the prior year, due to a decrease in excess tax benefits from stock-based compensation [28] Q&A Session Summary Question: Can you define and provide recent wins regarding Dispatch Track and focus branch efforts? - Management highlighted significant progress in both areas, with Dispatch Track improving customer service and efficiency in delivery operations [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 the second quarter? - Management expects low single-digit organic growth in Q2, with pricing anticipated to be flat to negative 1% [61][62] Question: Can you provide details on the impact of tariffs on pricing? - 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 is the company managing inventory levels amid inflationary pressures? - The company is selectively purchasing inventory to mitigate risks associated with supply chain disruptions and inflation [76][77] Question: How does the company balance cash for acquisitions versus share repurchases? - Management emphasized a focus on maintaining a strong balance sheet while being selective in capital allocation, including share repurchases when stock performance is favorable [78][79]

Financial Performance - Q1 2025 - Net sales increased by 4% year-over-year to $939.4 million[25, 27, 28] - Gross profit increased by 3% to $309.8 million, but gross margin contracted by 30 basis points to 33.0%[25, 27, 31] - Adjusted EBITDA increased by 6% to $22.4 million, with margin improving by 10 basis points to 2.4%[25, 27, 30] - Net loss attributable to SiteOne was $27.3 million, compared to a net loss of $19.3 million in the prior year[25, 27, 29] - Organic Daily Sales decreased by 1% due to a later start to the spring selling season, lower commodity prices, and softer repair and remodel demand[25, 31] Acquisitions and Growth - Acquired sales contributed $45.1 million, representing 5% of the overall growth rate[31] - Completed the acquisitions of Green Trade Nursery and Pacific Nurseries[24, 25] - Since 2014, the company has acquired 100 companies, adding approximately $2,005 million in annualized net sales[33] Balance Sheet and Cash Flow - Cash used in operating activities increased by $30.3 million to $129.6 million, reflecting early purchases of inventory[25, 32] - Net debt was $580.4 million, resulting in a net debt to Adjusted EBITDA leverage ratio of 1.5x[32] Outlook - Full year Adjusted EBITDA is expected to be in the range of $400 million to $430 million[43]

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].

Company Overview - The company is the largest national full product line wholesale distributor of landscape supplies in the U.S., with over 690 branch locations across 45 states and six Canadian provinces[20]. - The company is the only national wholesale distributor to carry a full product line of landscape supplies, competing primarily against regional and local distributors[66]. Market Segmentation - Approximately 61% of the company's 2024 Fiscal Year net sales were derived from the residential construction sector, 31% from the commercial construction sector, and 8% from recreational and other sectors[22]. - The addressable market for wholesale distribution of landscape supplies in North America was estimated at approximately $25 billion in revenue for 2024[26]. - The customer base consists of more than 430,000 firms and individuals, with the top 10 customers accounting for less than 4% of the 2024 Fiscal Year Net sales[62]. - Small customers (annual purchases up to $25,000) made up 23% of the 2024 Fiscal Year Net sales, while large customers (annual purchases over $150,000) accounted for 46%[62]. Sales and Revenue - Net sales for the fiscal year ending December 29, 2024, reached $4,540.6 million, up from $4,301.2 million in the previous year, indicating an increase of about 5.6%[348]. - Gross profit for the same period was $1,560.1 million, compared to $1,491.2 million in the prior year, reflecting a growth of approximately 4.6%[348]. - The majority of the company's net sales in the 2024 fiscal year were derived from credit sales, which depend on the economic strength of the geographic areas where customers operate[147]. Product Offerings - Proprietary branded products, including LESCO, SiteOne Green Tech, and Pro-Trade, accounted for approximately 14% of the company's 2024 Fiscal Year net sales[44]. - The company has a balanced mix of sales across product categories, with approximately 35% of net sales from products related to new construction and another 35% from maintenance of existing properties[22]. - The company plans to expand its Pro-Trade product line in the 2025 Fiscal Year, which includes new products such as synthetic turf and garden hoses[45]. Operational Strategy - The Partners Program had approximately 52,000 enrolled customers as of December 29, 2024, contributing to about 60% of the company's net sales for the 2024 Fiscal Year[51]. - The company aims to grow market share in existing markets with limited capital investment by optimizing its network of locations and improving sales force performance[30]. - The company sources products from approximately 5,800 suppliers, ensuring a comprehensive product offering for its customers[21]. Financial Performance - The company reported a net income of $124.4 million for the year ending December 29, 2024, down from $173.4 million in the previous year, a decrease of about 28.2%[348]. - Total liabilities increased to $1,478.9 million as of December 29, 2024, from $1,342.8 million at the end of 2023, reflecting a rise of about 10.1%[347]. - The company’s cash and cash equivalents increased to $107.1 million as of December 29, 2024, compared to $82.5 million at the end of 2023, marking a growth of approximately 29.8%[347]. Challenges and Risks - The company experienced a softening in the residential construction sector during the 2024 Fiscal Year, attributed to home price inflation and higher mortgage rates, which persisted despite a 50-basis point reduction in interest rates in September 2024[96]. - Inflation and increased operating costs have adversely impacted the company’s business, with ongoing inflationary pressures expected to continue affecting financial performance[99]. - The company is subject to various environmental, health, and safety laws, which could result in significant compliance costs and liabilities[90]. - Supply chain disruptions, including delays and product shortages, have negatively impacted revenues and margins, particularly during the COVID-19 pandemic[124]. Human Resources - As of December 29, 2024, the company employed approximately 8,300 associates, with 92% being full-time, year-round employees[70]. - The ability to attract and retain key personnel is critical for the company's success, and losing key executives could adversely affect operations and growth[137]. - The company relies on approximately 8,300 associates, and changes in labor laws or increased competition for workers could significantly impact operating costs and business performance[133]. Acquisitions and Growth Strategy - Future acquisitions are a key element of the company's growth strategy, but challenges include identifying suitable targets and potential integration difficulties[130]. - The company completed various acquisitions during the year, accounting for customer relationship intangible assets valued at $34.0 million[342]. Debt and Financing - As of December 29, 2024, the company had $393.3 million in total long-term consolidated indebtedness and $130.6 million in finance lease obligations excluding interest[163]. - The company’s ability to engage in acquisitions is limited due to its current indebtedness, which may impair its ability to obtain additional financing[165]. - An increase of one percentage point in interest rates would result in an increase of approximately $4.0 million in projected interest payments for the 2025 Fiscal Year[167]. Environmental and Regulatory Factors - The company has identified short-, medium-, and long-term climate-related risks and opportunities for its business strategy and financial planning[79]. - Compliance with environmental regulations could result in significant costs and liabilities, impacting the company's reputation and financial position[110]. - The company is subject to public perception risks regarding the environmental safety of its products, which could adversely affect demand and lead to increased regulatory scrutiny[116].

Financial Data and Key Metrics Changes - The company reported a net sales increase of 5% to $1.01 billion for Q4 2024 and a 6% increase to $4.54 billion for the full fiscal year 2024 [33] - Organic daily sales increased by 1% in Q4 2024, driven by a 4% growth in volume, partially offset by 3% price deflation [34] - Adjusted EBITDA decreased by 20% to $31.8 million for Q4 2024 and by 8% to $378.2 million for the full year [48][49] - The net loss attributable to the company was $21.7 million for Q4 2024, compared to a net loss of $3.4 million in the prior year [46] Business Line Data and Key Metrics Changes - Organic daily sales for agronomic products increased by 6% in Q4 and 4% for the full year, driven by strong volume growth [36] - Organic daily sales for landscaping products decreased by 1% in Q4 and 3% for the full year due to price deflation and weaker demand [38] - Acquisition sales contributed approximately $43 million or 4% to net sales growth in Q4 2024 and approximately $286 million or 7% for the full year [39][40] Market Data and Key Metrics Changes - Five out of nine regions achieved positive organic daily sales growth in Q4 2024, with solid growth in northern markets [38] - The repair and upgrade market, representing 30% of sales, was the weakest end market in 2024, with high single-digit volume declines [67] - The maintenance end market, which represents 35% of sales, achieved good sales volume growth in 2024 and is expected to continue growing steadily in 2025 [68] Company Strategy and Development Direction - The company aims to leverage its scale and resources to support local teams and deliver superior value to customers and suppliers [13] - The strategy includes filling in product lines through acquisitions and organic growth, with a focus on maintaining a balanced mix of business [12][14] - The company has a robust pipeline of potential acquisitions and expects to continue adding companies to support growth [18] Management's Comments on Operating Environment and Future Outlook - Management noted that while the macro environment remains uncertain, they expect commodity price deflation to moderate in 2025 [64] - The company anticipates low single-digit organic daily sales growth for 2025, driven by sales volume offsetting price deflation [69] - Management expressed confidence in achieving solid performance and growth in 2025, supported by commercial initiatives and improved operating leverage [9][70] Other Important Information - The company completed 99 acquisitions since 2014, adding approximately $2 billion in trailing 12-month net sales [60] - Digital sales grew by 180% in 2024, with a significant increase in regular online purchasers [27][130] - The company expects to achieve good operating leverage in 2025, yielding solid improvement in adjusted EBITDA margin [69] Q&A Session Summary Question: Are the focus branches and Pioneer the most impactful cost initiatives for 2025? - Management confirmed that focus branches and Pioneer are significant cost initiatives, with expectations for good results in 2025 [74][76] Question: Are there any initial signs of labor issues from customers? - Management indicated that while customers are concerned about labor issues, no significant impacts have been observed yet [78] Question: How much of the product is coming from China and Mexico regarding tariffs? - Management estimated that 10% to 15% of sales are sourced from Mexico, China, and Canada, and they expect to pass through any tariff-related price increases relatively quickly [91] Question: What is the impact of grass seed pricing on the business? - Management noted that grass seed pricing is expected to continue its deflation trend, with more clarity expected in the spring [81] Question: Can you provide details on the focus stores and Pioneer? - Management explained that significant restructuring and integration efforts have been made at Pioneer, and improvements in focus branches are expected to yield benefits over the next few years [115]