In This Article:
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Net Sales: Increased 6% to $1.21 billion for the third quarter.
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Organic Daily Sales: Declined 1% due to a 3% price deflation, partially offset by 2% volume growth.
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Gross Margin: Improved 10 basis points to 34%.
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SG&A Expenses: Increased 12% to $349 million, representing 28.9% of net sales.
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Adjusted EBITDA: Decreased 4% to $114.8 million, with a margin decline of 100 basis points to 9.5%.
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Net Income: Decreased $12.9 million to $44.4 million.
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Acquisition Sales Growth: Contributed approximately $77 million or 7% of net sales growth.
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Branch Network: Expanded to more than 700 branches and four distribution centers.
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Working Capital: Increased to approximately $992 million.
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Net Debt: Approximately $449 million, with a leverage ratio of 1.2 times trailing 12-month adjusted EBITDA.
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Available Liquidity: Approximately $647 million.
Release Date: October 30, 2024
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 6% net sales growth in the third quarter, driven by acquisitions and a 2% organic sales volume growth.
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The company added 7% sales growth from acquisitions and welcomed one additional company to SiteOne during the quarter.
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SiteOne Landscape Supply Inc (NYSE:SITE) has a robust acquisition pipeline, having completed 96 acquisitions since 2014, which strengthens its market position.
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The company is making significant progress in integrating Pioneer, which is expected to improve performance and contribute positively in 2025.
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SiteOne Landscape Supply Inc (NYSE:SITE) is leveraging digital sales, which have increased by over 170% year-to-date, enhancing customer connectivity and market share.
Negative Points
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SiteOne Landscape Supply Inc (NYSE:SITE) faced significant market headwinds, including commodity price deflation and reduced demand in the repair and upgrade market, impacting sales growth and margins.
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The company experienced a 3% price decline in the third quarter, primarily driven by double-digit declines in PVC pipe and grass seed prices.
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Adjusted EBITDA for the quarter decreased by 4% year-over-year, with a 100 basis point decline in adjusted EBITDA margin to 9.5%.
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SiteOne Landscape Supply Inc (NYSE:SITE) expects continued challenges from market headwinds, including the impact of Hurricane Milton, affecting the full-year financial outcome.
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The integration of Pioneer has been slower and more costly than initially planned, contributing to adjusted EBITDA margin dilution.