Group 1: Earnings Performance - SiteOne Landscape reported a quarterly loss of $0.48 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.28, and compared to a loss of $0.08 per share a year ago, indicating a significant decline in performance [1] - The earnings surprise for this quarter was -71.43%, and the company had previously expected earnings of $1.18 per share but reported $0.97, resulting in a surprise of -17.80% [1][2] - Over the last four quarters, SiteOne Landscape has surpassed consensus EPS estimates only once [2] Group 2: Revenue Performance - The company posted revenues of $1.01 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 0.60%, and this represents an increase from year-ago revenues of $965 million [2] - SiteOne Landscape has topped consensus revenue estimates four times over the last four quarters [2] Group 3: Stock Performance and Outlook - SiteOne Landscape shares have increased by approximately 1.1% since the beginning of the year, while the S&P 500 has gained 3.2% [3] - The future price movement of the stock will largely depend on management's commentary during the earnings call and the earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.53 on revenues of $952.7 million, and for the current fiscal year, it is $3.84 on revenues of $4.82 billion [7] Group 4: Industry Context - The Industrial Services industry, to which SiteOne Landscape belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Financial Performance - Fourth Quarter 2024 net sales increased 5% to $1.01 billion compared to $965.0 million in the prior year[5] - Full Year 2024 net sales increased 6% to $4.54 billion, with acquisitions contributing $286.0 million, or 7%, to net sales growth[9] - Fourth Quarter 2024 gross profit increased 3% to $337.6 million, while gross margin decreased 50 basis points to 33.3%[6] - Full Year 2024 adjusted EBITDA decreased 8% to $378.2 million, with an adjusted EBITDA margin of 8.3%[13] - Net sales for the year reached $4,540.6 million, up 5.6% from $4,301.2 million in 2023[29] - Gross profit for the year was $1,560.1 million, an increase of 4.6% compared to $1,491.2 million in 2023[29] - Net income for the year was $124.4 million, down 28.3% from $173.4 million in 2023[29] - Operating income for the year was $192.3 million, down 23.1% from $250.3 million in 2023[29] - Basic net income per share for the year was $2.73, down from $3.84 in 2023[29] - Reported net income for the 2024 fiscal year was $124.4 million, a significant recovery from a net loss of $21.5 million in Q4 2023[35] - Adjusted EBITDA for the 2024 fiscal year was $378.2 million, with Q4 2024 contributing $331.3 million, reflecting a 10.7% increase from Q4 2023[35] Acquisitions - The company closed two acquisitions in the fourth quarter and seven acquisitions during the full year, contributing approximately $200 million in trailing twelve months net sales[4] - The company made acquisitions totaling $138.2 million in 2024, compared to $192.7 million in 2023[31] - Acquisition contribution to net sales for the 2024 fiscal year was $406.5 million, with Q4 contribution at $100.8 million[39] Debt and Assets - Net debt to adjusted EBITDA at year-end was 1.1x, compared to 0.9x at year-end 2023[14] - Total assets increased to $3,070.8 million in 2024 from $2,828.9 million in 2023, representing an increase of 8.5%[27] - Total current liabilities increased to $640.8 million in 2024 from $578.3 million in 2023, a rise of 10.8%[27] Cash Flow and Expenses - The company reported a net cash provided by operating activities of $283.4 million, a decrease from $297.5 million in 2023[31] - The company reported an interest expense of $31.9 million in Q4 2024, compared to $27.1 million in Q4 2023, reflecting increased financing costs[35] - Depreciation and amortization expenses for the 2024 fiscal year totaled $139.0 million, with Q4 expenses at $35.6 million[35] - The company recorded stock-based compensation of $25.0 million for the 2024 fiscal year, with Q4 expenses at $5.5 million[35] Sales Outlook - The company expects low single-digit organic daily sales growth for 2025, despite ongoing commodity price deflation[16] - The projected adjusted EBITDA for 2025 is expected to be in the range of $400 million to $430 million[16] - The company anticipates continued growth in organic daily sales, projecting $17.6 million for the 2025 fiscal year[41] - Organic sales for the 2024 fiscal year were $4,134.1 million, with Q4 organic sales at $912.3 million, indicating a growth trend[39] Other Information - SG&A as a percentage of net sales increased 150 basis points to 36.0% in the fourth quarter, primarily due to acquisitions[7] - The number of selling days in 2024 was 252, consistent with the previous year, which may impact sales comparisons[39] - Cash and cash equivalents at the end of 2024 were $107.1 million, up from $82.5 million in 2023[31]

Acquisition and Expansion Strategy - SiteOne Landscape Supply's majority-owned joint venture, Devil Mountain Wholesale Nursery, acquired Pacific Nurseries, a wholesale distributor of nursery products [1] - The acquisition aligns with SiteOne Landscape Supply and Devil Mountain's growth strategies and expands their presence in the Bay Area [2] - SiteOne Landscape Supply has been actively pursuing acquisitions, completing seven in 2024 and 11 in 2023, reflecting its expansion strategy [3] - Devil Mountain's acquisition of Pacific Nurseries marks its first acquisition in 2025 [3] Financial Performance - SiteOne Landscape Supply reported an adjusted EPS of 97 cents in Q3 2024, missing the Zacks Consensus Estimate of $1.18 [4] - The company's Q3 2024 revenue was $1.21 billion, surpassing the Zacks Consensus Estimate of $1.18 billion and representing a 2.4% year-over-year increase [4] - SiteOne Landscape Supply's stock price declined by 15.6% over the past year, underperforming the industry's 8.9% growth [5] Industry Comparison - Graham Corporation (GHM) delivered an average trailing four-quarter earnings surprise of 101.85% and is expected to achieve 145.2% year-over-year earnings growth in 2024 [8] - Federal Signal Corporation (FSS) delivered an average trailing four-quarter earnings surprise of 11.8% and is expected to achieve 29.5% year-over-year earnings growth in 2024 [9] - Gates Industrial Corporation plc (GTES) is expected to achieve 11.8% year-over-year earnings growth in 2024 [9]

Core Insights - SITE Centers Corp. reported a decline in operating funds from operations (OFFO) per share to 81 cents, missing the Zacks Consensus Estimate of 87 cents, leading to a 3.97% drop in share price on October 30, 2024 [1] - The company generated revenues of $89.4 million, which was below the Zacks Consensus Estimate of $101.8 million, reflecting a year-over-year decline of 37.5% [2] - The leased rate decreased to 91.3% as of September 30, 2024, down from 93.2% as of June 30, 2024, and lower than the prior year's figure of 94.6% [3] Financial Performance - OFFO per share fell by 31.1% year-over-year [2] - Base rent per square foot decreased to $19.60 from $20.20 a year ago [4] - The company ended the third quarter with $1.06 billion in cash, down from $1.18 billion as of June 30, 2024 [4] Portfolio Activity - During the third quarter, SITE Centers disposed of 25 properties for an aggregate price of $1.4 billion, completing the sale of most properties in its active disposition pipeline [3][6] - The company acquired seven convenience shopping centers for $145.3 million, which were included in the Curbline spin-off [5] - The spin-off of Curbline was completed on October 1, 2024, with Curbline holding a portfolio of 79 properties and $800 million in unrestricted cash [5] Market Outlook - Upcoming earnings releases for other retail REITs, such as Realty Income and Tanger, Inc., are anticipated, with Realty Income's FFO per share estimated at $1.05, indicating a 2.9% year-over-year increase [7] - The Zacks Consensus Estimate for Tanger's FFO per share is pegged at 53 cents, implying a 6% year-over-year increase [8]

Financial Data and Key Metrics - Net sales increased by 6% to $1.21 billion in Q3 2024, with organic daily sales declining by 1% due to a 3% price deflation, partially offset by 2% volume growth [31] - Gross profit increased by 6% to $411 million, with gross margin improving by 10 basis points to 34% [35] - Adjusted EBITDA decreased by 4% to $114.8 million, with adjusted EBITDA margin declining by 100 basis points to 9.5% [41] - SG&A expenses increased by 12% to $349 million, with SG&A as a percentage of net sales rising by 170 basis points to 28.9% [36] - Net income attributable to SiteOne decreased by $12.9 million to $44.4 million [40] Business Line Performance - Organic daily sales for agronomic products increased by 2%, driven by strong volume growth, while landscaping products decreased by 2% due to price deflation and weak repair and remodel demand [33] - Price deflation was primarily driven by double-digit declines in PVC pipe and grass seed, while most other product prices remained flat [21] - The company expects price deflation to moderate in 2025, with modest price increases in most products [21] Market Performance - Five out of nine regions achieved positive organic daily sales growth in Q3, with strong agronomic sales in the Midwest and Northeast, and robust construction demand in Texas [34] - Hurricane Helene negatively impacted sales in the Southeast by approximately $7 million, with an additional $8 million impact expected in Q4 due to Hurricane Milton [34] Company Strategy and Industry Competition - The company aims to leverage its scale and resources to drive organic growth, improve productivity, and expand its product portfolio through acquisitions [15] - SiteOne has completed 96 acquisitions since 2014, adding approximately $1.9 billion in trailing 12-month net sales, and expects to continue acquiring companies to strengthen its market position [18][46] - The company is focused on improving the performance of underperforming branches, with plans to consolidate or close 16 branches in Q4 to reduce costs and improve operational efficiency [28] Management Commentary on Operating Environment and Future Outlook - Management expects challenging market conditions to persist through Q4, with price declines offsetting sales volume growth, leading to low single-digit organic daily sales decline [50] - The company anticipates a more stable pricing environment in 2025, with commodity price deflation moderating and modest price increases in most products [8][21] - Adjusted EBITDA for fiscal 2024 is expected to be in the range of $370 million to $380 million, including a $5 million charge related to branch consolidations [55] Other Important Information - The company repurchased approximately 14,000 shares for $1.8 million in Q3 [40] - Net debt at the end of Q3 was approximately $449 million, with leverage at 1.2x trailing 12-month adjusted EBITDA [43] - The company refinanced its term loan, extending the maturity to March 2030 and reducing the interest rate by 25 basis points [44] Q&A Session Summary Question: Sales performance and market stabilization - Management noted that while the repair and remodel market remains weak, the company is gaining market share, particularly in the maintenance and new construction markets, contributing to better-than-expected organic sales performance [57] Question: Growth and EBITDA margin outlook - Management expects EBITDA growth to be enhanced in the future, driven by a recovery in price realization, improved performance of underperforming branches, and the integration of Pioneer, which is expected to contribute to margin expansion in 2025 and beyond [58][59] Question: Pricing trends and branch closures - Price deflation is expected to persist through 2024, with normalization expected in 2025, particularly for grass seed and PVC pipe [63] - The branch closures are part of a broader effort to optimize the branch network, with most closures being consolidations aimed at retaining sales while reducing costs [66] Question: Pioneer acquisition performance - The integration of Pioneer has been slower than expected due to the decision to merge its point-of-sale and delivery systems with SiteOne's, but management remains confident in its long-term potential [81][82] Question: End market dynamics and pricing for 2025 - Management expects modest price increases in non-commodity products in 2025, with low single-digit pricing expected from manufacturers [87] - The company is optimistic about the potential for improved demand in the repair and remodel market if interest rates decline, but it is too early to make definitive predictions for 2025 [85][92]

SiteOne Landscape (SITE) came out with quarterly earnings of $0.97 per share, missing the Zacks Consensus Estimate of $1.18 per share. This compares to earnings of $1.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -17.80%. A quarter ago, it was expected that this company would post earnings of $2.50 per share when it actually produced earnings of $2.63, delivering a surprise of 5.20%. Over the last four quarters, the comp ...

Exhibit 99.1 October 30, 2024 SiteOne Landscape Supply Announces Third Quarter 2024 Earnings Third Quarter 2024 Highlights (Compared to Third Quarter 2023): · Net sales increased 6% to $1.21 billion · Organic Daily Sales decreased 1% · Gross profit increased 6% to $411.0 million; gross margin improved 10 basis points to 34.0% · SG&A as a percentage of Net sales increased 170 basis points to 28.9% · Net income attributable to SiteOne decreased $12.9 million to $44.4 million · Adjusted EBITDA decreased 4% to ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________ FORM 10-Q __________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 29, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From __________ to ___________ Commission file number: 001-37760 SiteOne Landscape Supply, Inc. (E ...

Wall Street expects a year-over-year decline in earnings on higher revenues when SiteOne Landscape (SITE) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on October 30, 2024, might help the stock move higher if these key numbers are better ...

I ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I approach investing purely from a fundamental long-term point of view. On Seeking Alpha I mostly cover REITs and financials, with occasional articles on ETFs and other stocks driven by a macro trade idea. Analyst's ...