Cohen and Cohen Natural Stone provides a range of natural stone, concrete, masonry and landscape accessories. It has one location in Ottawa, Canada and is an authorized dealer for brands such as Unilock, Best Way Stone, Porcea Stone and Banas Stone. Cohen and Cohen also provides in-house fabrication services, such as ripping, cutting and coring, to ensure that every piece of stone is tailor-made to the client's specific requirements. On Apr 30, the company announced that it purchased a majority stake in Dev ...

SiteOne Landscape (SITE) announced that it has acquired AC Florida Pavers, LLC, which operates under the trade name Hardscape.com. This buyout will expand SITE's ability to provide hardscapes products to its Florida customers and is a significant addition to its existing premium hardscapes offerings nationally. Hardscape.com is a producer and supplier of porcelain pavers. It has exclusive rights to the premier line of Saxa Gres Italian porcelain products and serves the U.S. and Canada markets from its four ...

Financial Data and Key Metrics Changes - The company reported a net sales increase of 8% to $905 million for the first quarter, with organic daily sales growth of 1% [10][56] - Adjusted EBITDA decreased 47% to $21.1 million, with an adjusted EBITDA margin decline of 250 basis points to 2.3% [32][53] - Gross profit for the first quarter was $301 million, a 5% increase compared to the prior year, while gross margin decreased by 100 basis points to 33.3% [29][52] - Selling, general and administrative expenses (SG&A) increased 12% to $328 million, with SG&A as a percentage of net sales rising by 140 basis points to 36.2% [30][11] Business Line Data and Key Metrics Changes - Organic daily sales for landscaping products decreased by 2% due to lower prices and unfavorable weather, while agronomic products saw a 10% increase in organic daily sales driven by strong volume growth [28][57] - The company achieved 7% of net sales growth through acquisitions, contributing approximately $62 million [10][58] Market Data and Key Metrics Changes - Five out of nine regions achieved positive organic daily sales growth, with double-digit growth in the Midwest due to solid demand and favorable weather [28] - The company expects repair and upgrade demand to be slightly down in 2024, while new residential construction is anticipated to grow modestly [40][69] Company Strategy and Development Direction - The company aims to expand its product lines and market presence through acquisitions, having completed 93 acquisitions since 2014 [9][35] - The strategy focuses on organic growth, acquisition growth, and EBITDA margin expansion, targeting a long-term adjusted EBITDA margin of 13% to 15% [21][20] - The company is positioned as the largest national full product line wholesale distributor in the landscaping market, with a significant opportunity for growth due to its modest market share [48][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current environment and achieving continued success in 2024, despite challenges from commodity price deflation [17][18] - The company expects gross margin in 2024 to be similar to 2023, with negative effects from price deflation offset by initiatives and acquisitions [42][94] - Management noted that the first quarter was traditionally slower, and they anticipate positive operating leverage as the selling season progresses [45][89] Other Important Information - The company has a robust acquisition pipeline and expects to continue adding and integrating new companies throughout the year [9][35] - Cash used in operations decreased to approximately $99 million, reflecting improved replenishment capabilities [33] Q&A Session Summary Question: Context on first quarter misses relative to expectations - Management indicated that SG&A came in largely in line with expectations, with higher healthcare costs being a notable factor [44][75] Question: Gross margin expectations - Management acknowledged that gross margins were affected more than expected, primarily in January and February, but anticipated improvements in the second quarter [82][100] Question: Impact of competitor acquisition by Home Depot - Management stated that competition dynamics would not significantly change, as they have been competing against the company for years [86] Question: Pricing and deflation expectations - Management expects commodity price deflation to moderate in the second half of 2024, with overall pricing down approximately 2% for the year [71][93] Question: SG&A leverage expectations - Management expressed confidence in achieving SG&A leverage by year-end, despite the impact of acquisitions [119][142]

Financial Performance - Net sales for Q1 2024 increased to $904.8 million, an 8% rise compared to $837.4 million in Q1 2023[4] - Gross profit rose 5% to $301.2 million, while gross margin decreased by 100 basis points to 33.3% due to lower price realization[5] - Net loss for Q1 2024 was $19.3 million, compared to a net loss of $4.5 million in the prior year[7] - Adjusted EBITDA decreased by 47% to $21.1 million, with an adjusted EBITDA margin of 2.3%[7] - Net sales for the three months ended March 31, 2024, were $904.8 million, an increase of 8.0% compared to $837.4 million for the same period in 2023[22] - Gross profit for the same period was $301.2 million, up from $287.1 million, reflecting a gross margin improvement[22] - The net loss for Q1 2024 was $19.3 million, compared to a net loss of $4.5 million in Q1 2023, resulting in a net loss per share of $0.43[22] - Adjusted EBITDA for Q1 2024 was $21.1 million, compared to $39.8 million in Q1 2023, indicating a decrease in operational profitability[26] Sales and Growth - Organic Daily Sales grew by 1% year-over-year, driven by solid demand, despite commodity price deflation[4] - The company anticipates low single-digit Organic Daily Sales growth for the full year 2024, despite ongoing commodity price deflation[9] - Organic sales for Q1 2024 were $840.7 million, with an organic daily sales figure of $13.1 million, consistent with Q1 2023[31] Expenses and Cash Flow - SG&A expenses increased to $327.7 million, with SG&A as a percentage of net sales rising 140 basis points to 36.2%[6] - The company reported a net cash used in operating activities of $99.3 million for Q1 2024, an improvement from $152.6 million in Q1 2023[24] - Cash and cash equivalents at the end of Q1 2024 were $41.5 million, down from $40.3 million at the end of Q1 2023[24] - The company experienced a significant increase in accounts payable, which rose by $39.2 million to $121.0 million in Q1 2024[24] Acquisitions and Future Guidance - The company closed two acquisitions in April 2024, contributing to its growth strategy[2] - For the full year 2024, the company expects adjusted EBITDA in the range of $420 million to $455 million, unchanged from previous guidance[9] - The company made no acquisitions in Q1 2024, contrasting with $33.2 million spent on acquisitions in Q1 2023[24] Debt and Equity - Net debt as of March 31, 2024, was $508.0 million, down from $586.1 million a year earlier, with a net debt to adjusted EBITDA ratio of 1.3 times[8] - The company raised $2.6 million from equity proceeds in Q1 2024, compared to $1.1 million in Q1 2023[24]

Financial Performance - Organic Daily Sales growth was 1% for the three months ended March 31, 2024, with price deflation reducing Organic Daily Sales by 4%[118] - Net sales growth was 8% for the three months ended March 31, 2024, primarily driven by contributions from acquisitions[118] - Net loss increased to $19.3 million for the three months ended March 31, 2024, compared to $4.5 million for the same period in 2023[118] - Net sales for Q1 2024 increased by 8% to $904.8 million compared to $837.4 million in Q1 2023, primarily driven by acquisitions[143] - Organic Daily Sales for Q1 2024 increased by 1%, with agronomic products up 10% and landscaping products down 2%[143] - Acquisitions contributed $62.5 million, or 7%, to the net sales growth in Q1 2024[143] - Gross profit increased by 5% to $301.2 million, but gross margin decreased by 100 basis points to 33.3%[145] - Net loss for Q1 2024 was $19.3 million, an increase of $14.8 million compared to a net loss of $4.5 million in Q1 2023[149] - Adjusted EBITDA for Q1 2024 was $21.1 million, a decrease from $39.9 million in Q4 2023 and $119.8 million in Q1 2023[155] Cost and Expenses - Gross margin decreased by 100 basis points for the three months ended March 31, 2024, due to lower price realization[118] - Cost of goods sold rose by 10% to $603.6 million in Q1 2024, attributed mainly to acquisitions[144] - Selling, general and administrative expenses increased by 12% to $327.7 million, with SG&A as a percentage of net sales rising to 36.2%[146] Cash Flow and Capital Expenditures - Net cash used in operating activities decreased to $99.3 million for the three months ended March 31, 2024, from $152.6 million for the same period in 2023[118] - Net cash used in investing activities was $7.3 million, significantly lower than $39.6 million in the prior year, with no acquisition investments in the first three months of 2024[169] - Capital expenditures increased to $8.9 million in Q1 2024 from $7.1 million in Q1 2023, driven by investments in material handling equipment[169] - Net cash provided by financing activities was $65.7 million, down from $203.4 million in the same period last year, due to lower borrowings under the ABL Facility[170] Debt and Interest Rates - The company had total cash and cash equivalents of $41.5 million and total gross long-term debt of $453.8 million as of March 31, 2024[163] - The company's gross long-term debt increased by $74.8 million since December 31, 2023, reaching a total of $453.8 million as of March 31, 2024[166] - Interest on long-term debt rose by $10.9 million to $123.3 million, primarily due to increased borrowings under the ABL Facility[166] - The interest rate on outstanding balances under the ABL Facility ranged from 6.54483% to 6.55167% as of March 31, 2024[183] - The ABL Facility has a total commitment of $600.0 million, with a maturity date of July 22, 2027[180] - The New Term Loans bear interest at an adjusted Term SOFR rate plus an applicable margin of 2.00%, with a maturity date of March 23, 2028[178] Strategic Initiatives and Outlook - The company has a robust acquisition pipeline and is committed to driving growth organically and through acquisitions[119] - Economic headwinds, including elevated interest rates and reduced consumer spending, are expected to continue impacting net sales growth and net income in 2024[118] - The long-term outlook for the landscape supply industry remains strong, driven by favorable population trends and increased interest in outdoor living[119] - Strategic initiatives include enhancing supply chain efficiency, improving pricing and category management, and investing in IT systems and data analytics[138] - The company continues to expand its distribution network and improve its B2B e-commerce platform to enhance customer service and reduce costs[139] Market and Risk Factors - The company faces interest rate risk related to existing and future debt issuances, utilizing interest rate swap contracts to mitigate this risk[192] - Subsidiaries' ability to pay dividends is restricted by their operating results, cash requirements, financial condition, and legal restrictions[190] - There have been no material changes to critical accounting estimates, including inventory valuation and goodwill, as noted in the Annual Report for the 2023 Fiscal Year[199] - No material changes have occurred in market risk disclosures since the Annual Report for the 2023 Fiscal Year[203]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________ FORM 10-K __________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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. (Exact name ...

Disclaimer This presentation includes certain financial information, not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Further, these measures should not be considered substitutes for the information contained in the historical financial information of the Company prepared in accordance with U.S. GAAP that is set forth ...

SiteOne Landscape Supply Inc. (NYSE:SITE) Q4 2023 Earnings Conference Call February 14, 2024 8:00 AM ET Company Participants Doug Black - Chairman & CEO John Guthrie - EVP & CFO Scott Salmon - EVP, Strategy & Development Conference Call Participants David Manthey - Baird Ryan Merkel - William Blair Steve Volkmann - Jefferies Mike Dahl - RBC Capital Markets Damian Karas - UBS Andrew Carter - Stifel Matthew Bouley - Barclays Operator Greetings. And welcome to the SiteOne Landscape Supply Fourth Quarter 2023 E ...

Financial Data and Key Metrics Changes - The company reported a net sales increase of 4% to $1.15 billion for the third quarter 2023, with organic daily sales decreasing by 2% primarily due to lower prices from commodity products [25][15][8] - Gross profit was flat at $388 million, while gross margin contracted by 130 basis points to 33.9% due to commodity deflation [26][9] - Net income decreased to $57 million compared to $73 million for the same period in the prior year, with adjusted EBITDA down 12% to approximately $120 million [15][11] - SG&A expenses increased by 8% to $312 million, with SG&A as a percentage of net sales rising to 27.2% [14][15] Business Line Data and Key Metrics Changes - Organic daily sales for agronomic products decreased by 2%, while landscaping products also saw a 2% decline due to lower prices and moderating demand [13][22] - Acquisitions contributed approximately $65 million or 6% to net sales growth, with six new companies added during the quarter [6][30] Market Data and Key Metrics Changes - Five out of nine regions achieved positive organic daily sales growth, with the southern markets showing the greatest growth, while the Northeast and Midwest were impacted by wet weather [13][22] - The company expects organic daily sales to be down low single digits in the fourth quarter, driven by price deflation, but anticipates a flat performance for the full year 2023 [34][45] Company Strategy and Development Direction - The company aims to leverage its scale and resources to deliver superior value to customers and suppliers, focusing on commercial and operational initiatives alongside an acquisition strategy [7][20] - The long-term goal is to expand adjusted EBITDA margin toward 13% to 15%, with expectations for a recovery in gross margin as commodity prices stabilize [21][34] Management's Comments on Operating Environment and Future Outlook - Management noted that deflation in select commodity products was stronger than expected, impacting organic daily sales and margins, but expressed confidence in the ability to resume gross margin improvement once deflation subsides [6][11] - The company remains optimistic about maintaining resilient customer demand and gaining market share despite current challenges [20][45] Other Important Information - Capital expenditures for the quarter were $8 million, reflecting greater investment in branch improvements [17] - The company has a strong liquidity position of approximately $588 million, consisting of cash and available capacity under its ABL facility [17] Q&A Session Summary Question: What are the expectations for price deflation in the fourth quarter? - Management indicated that price deflation is expected to be about 4%, similar to the third quarter, but believes it has bottomed out [40][71] Question: How does the company view the impact of higher interest rates on business? - Management noted that the largest impact would be in new residential construction, but builders remain optimistic about single-family housing starts [72] Question: What is the outlook for gross margins in 2024? - Management stated it is too early to quantify gross margins for 2024 but expects improvements as price deflation subsides [62][64] Question: How is the company managing SG&A expenses? - Management highlighted that SG&A dollars were lower than the previous quarter due to steps taken to align spending with lower sales [69] Question: What is the expected impact of commodity price declines on gross margins? - Management indicated that the price declines have created a headwind for gross margins, estimating a 50 to 70 basis points impact [78][82]

Acquisitions and Market Expansion - SiteOne closed on July 3rd, expanding its hardscapes presence in the Connecticut market[3,4] - SiteOne closed on August 28th, extending its landscape supplies and nursery presence in Houston[9,29] - SiteOne closed six acquisitions in Q3 2023, including Hickory Hill Farm & Garden, New England Silica, Timothy's Center for Gardening, Pioneer Landscape Centers, Regal Chemical, and JMJ Organics[63] - SiteOne establishes itself as the 1 bulk landscape supplies distributor in Colorado and Arizona, adding 34 branches[116] Financial Performance (Q3 2023) - Net sales increased 4% year-over-year to $1.15 billion[77,97] - Organic Daily Sales decreased 2% due to price deflation for commodity products[63,97] - Acquired sales growth was $64.7 million, contributing 6% to the overall growth rate[97] - Gross profit was largely unchanged at $388.1 million, but gross margin contracted 130 basis points to 33.9%[96,97] - Adjusted EBITDA decreased 12% to $119.8 million, with Adjusted EBITDA margin contracting 180 basis points to 10.5%[96,97] - Net income decreased 22% to $57.3 million[63] Financial Position - Net debt was $446.0 million, compared to $376.6 million in the prior year[98] - Net debt / Adjusted EBITDA was 1.1x, compared to 0.8x in the prior year[98] Market Overview and Strategy - SiteOne operates in a ~$25 billion highly fragmented market[10] - The company estimates it has only ~16% market share[56]