In This Article:
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Net Sales Growth: 4% increase in the first quarter of 2025.
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Adjusted EBITDA Growth: 6% increase to $22.4 million.
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Gross Margin: Decreased by 30 basis points to 33%.
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SG&A as a Percentage of Net Sales: Increased by 30 basis points to 36.5%.
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Net Loss: $27.3 million for the first quarter of 2025.
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Organic Daily Sales: Decreased by 1%.
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Acquisition Sales Contribution: Approximately $45 million or 5% to net sales growth.
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Digital Sales Growth: Increased by 140% in the first quarter.
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Number of Branches: Over 690 branches across 45 US states and six Canadian provinces.
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Acquisitions: Added two companies with $20 million in trailing 12-month sales.
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Working Capital: Approximately $1 billion at the end of the first quarter.
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Net Debt: Approximately $580 million at the end of the quarter.
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Available Liquidity: Approximately $524 million.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SiteOne Landscape Supply Inc (NYSE:SITE) achieved a 4% net sales growth and a 6% growth in adjusted EBITDA in the first quarter of 2025.
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The company successfully executed its acquisition strategy by adding two companies, enhancing its product line capability.
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SiteOne Landscape Supply Inc (NYSE:SITE) has a strong market position with over 690 branches and four distribution centers across the US and Canada.
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The company is leveraging digital tools, with digital sales growing by 140% in the first quarter, enhancing customer engagement and market share.
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SiteOne Landscape Supply Inc (NYSE:SITE) is effectively managing its SG&A expenses, achieving a 3% reduction in base business SG&A due to cost control actions.
Negative Points
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The company faced challenges with a 1% organic daily sales decline due to colder weather and a softer repair and remodel end market.
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Gross margin decreased by 30 basis points to 33% due to lower price realization and higher freight costs.
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SiteOne Landscape Supply Inc (NYSE:SITE) experienced a net loss of $27.3 million in the first quarter, up from $19.3 million in the prior year period.
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The company anticipates a potentially lighter year in terms of acquired revenue due to macroeconomic uncertainties.
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Price deflation in commodity products like PVC pipe and grass seed continues to impact the company's pricing strategy.
Q & A Highlights
Q: Doug, you mentioned DispatchTrack and your focused branch efforts. Can you define and give us recent wins in each of those? A: DispatchTrack is our tracking software for trucks and deliveries, enhancing customer service. We're moving towards central dispatching to improve efficiency. We've seen progress in reducing delivery expenses. For focused branches, we've made significant progress, particularly with Pioneer, by consolidating and closing branches, reducing overhead, and improving customer service and revenue growth.