Page 1

SiteOne INVESTOR RELATIONS LANDSCAPE SUPPLY SITEONE LANDSCAPE SUPPLY ANNOUNCES SECOND QUARTER 2021 EARNINGS August 04 , 2021 Second Quarter 2021 Highlights ( Compared to Second Quarter 2020 ) : • Net sales increased 33 % to $ 1.1 billion • Organic Daily Sales increased by 22 % • Gross profit increased 36 % to $ 388.2 million ; gross margin increased 80 basis points to 35.8 % • SG & A as a percentage of Net sales decreased by 60 basis points to 20.8 % • Net income increased 56 % to $ 123.5 million • Adjusted EBITDA increased 44 % to $ 190.6 million • Adjusted EBITDA margin increased 140 basis points to 17.6 % • Closed three acquisitions : Timberwall Landscape & Masonry Products , Melrose Irrigation Supply , and Rock & Block Hardscape Supply ROSWELL , Ga .-- ( BUSINESS WIRE ) -- SiteOne Landscape Supply , Inc. ( the " Company " or " SiteOne " ) ( NYSE : SITE ) announced earnings for second quarter ended July 4 , 2021 ( " Second Quarter 2021 " ) . " We sustained excellent momentum in the second quarter of 2021 as our functional and field teams continued to work together and take advantage of the robust demand for professional landscaping products and services , resulting in strong organic sales and significant earnings growth , " said Doug Black , SiteOne's Chairman and CEO . " The investments in our product category management and supply chain capabilities enabled us to serve our customers well and gain market share , despite product shortages and rising inflation . Concurrently , the execution of our commercial and operational initiatives enabled us to achieve outstanding operating leverage and improved profitability , even as we invested heavily in building our capabilities for the future . Finally , our acquisition teams remained active in adding three new excellent companies to SiteOne during the quarter . The underlying market trends remain positive and given our robust acquisition pipeline and increasing capabilities , we are confident in our ability to deliver superior results to our stakeholders in 2021 and beyond . " Second Quarter 2021 Results Net sales for the Second Quarter 2021 increased to $ 1.1 billion , or 33 % , compared to $ 817.7 million for the prior - year period . Organic Daily Sales increased 22 % compared to the prior year period as end customers continued to invest in their outdoor living spaces . Acquisitions contributed $ 90.4 million , or 11 % , to Net sales growth for the quarter . Gross profit increased to 36 % to $ 388.2 million , compared to $ 286.1 million for the prior - year period . Gross margin increased by 80 basis points to 35.8 % for the Second Quarter 2021 due to the execution of our supply chain initiatives and more favorable pricing and customer mix . Selling , general and administrative expenses ( " SG & A " ) for the Second Quarter 2021 increased to $ 225.8 million from $ 175.0 million for the prior - year period . SG & A as a percentage of Net sales decreased to 20.8 % , an improvement of 60 basis points compared to the same period last year due to strong organic sales growth and effective cost management . Net income for the Second Quarter 2021 increased 56 % to $ 123.5 million , compared to $ 79.1 million for the prior - year period . Net income was driven by higher Net sales , gross margin improvement , and SG & A leverage . Adjusted EBITDA for the Second Quarter 2021 increased 44 % to $ 190.6 million , compared to $ 132.1 million for the prior - year period . Adjusted EBITDA margin increased 140 basis points to 17.6 % driven by gross margin improvement and SG & A leverage . Balance Sheet and Liquidity Net debt , calculated as long - term debt ( net of issuance costs and discounts ) plus finance leases , net of cash and cash equivalents on our balance sheet as of July 4 , 2021 , was $ 257.2 million compared to $ 476.5 million as of June 28 , 2020. Net debt to Adjusted EBITDA for the last twelve months was 0.7 times compared to 2.2 times at the same time last year . As of July 4 , 2021 , cash on hand was $ 107.8 million and available capacity under the ABL Facility was $ 364.1 million . Outlook " Organic sales growth has continued to be strong in June and July against the much tougher comparable sales of last year in these months . Market trends remain favorable across all residential segments and now look more positive than they did three months ago in commercial construction . Our customers are very busy with ongoing constraints in labor and robust backlogs . Accordingly , while we expect sales growth to moderate further in the third and fourth quarters , we now have a more positive outlook for the full year 2021 , " Doug Black continued . " We expect Adjusted EBITDA for 2021 to be in the range of $ 335 million to $ 365 million , representing year - over - year growth of 29 % to 40 % . This compares to our prior expectation for Adjusted EBITDA of $ 300 million to $ 320 million . This guidance does not include any contribution from unannounced acquisitions . " Reconciliation for the forward - looking full - year 2021 Adjusted EBITDA outlook is not being provided , as the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation . Conference Call Information SiteOne management will host a conference call today , August 4 , 2021 , at 8:00 a.m. , Eastern Time , to discuss the Company's financial results . The conference call may be accessed by dialing ( 877 ) 705-6003 ( domestic ) or ( 201 ) 493-6725 ( international ) . A telephonic replay will be available approximately two hours after the call by dialing ( 844 ) 512-2921 , or for international callers , ( 412 ) 317-6671 . The passcode for the live call and the replay is 13721128. The replay will be available until 11:59 p.m. ( ET ) on August 18 , 2021 . Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company's website at http://investors.siteone.com . The online replay will be available for 30 days on the same website immediately following the call . A slide presentation highlighting the Company's results and key performance indicators will also be available on the Investor Relations section of the Company's website . To learn more about SiteOne , please visit the company's website at http://investors.siteone.com . About SiteOne Landscape Supply , Inc. SiteOne Landscape Supply , Inc. is the largest and only national wholesale distributor of landscape supplies in the United States and has a growing presence in Canada . Its customers are primarily residential and commercial landscape professionals who specialize in the design , installation and maintenance of lawns , gardens , golf courses and other outdoor spaces . Forward - Looking Statements This release contains " forward - looking statements " within the meaning of the Federal Private Securities Litigation Reform Act of 1995 . Forward - looking statements may include , but are not limited to , statements relating to our 2021 Adjusted EBITDA outlook . Some of the forward - looking statements can be identified by the use of terms such as " may , " " intend , " " might , " " will , " " should , " " could , " " would , " " expect , " " believe , " " estimate , " " anticipate , " " predict , " " project , " " potential , " or the negative of these terms , and similar expressions . You should be aware that these forward - looking statements are subject to risks and uncertainties that are beyond our control . Further , any forward looking statement speaks only as of the date on which it is made , and we undertake no obligation to update any forward - looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances . New factors emerge from time to time that may cause our business not to develop as we expect , and it is not possible for us to predict all of them . Factors that may cause actual results to differ materially from those expressed or implied by the forward - looking statements include , but are not limited to , the following : the potential negative impact of the COVID - 19 pandemic ( which , among other things , may exacerbate each of the risk listed below ) ; economic downturn or recession ; cyclicality in residential and commercial construction markets ; general economic and financial conditions ; weather conditions , seasonality and availability of water to end - users ; public perceptions that our products and services are not environmentally friendly ; competitive industry pressures ; product shortages and the loss of key suppliers ; product price fluctuations ; ability to pass along product cost increases ; inventory management risks ; ability to implement our business strategies and achieve our growth objectives ; acquisition and integration risks ; increased operating costs ; risks associated with our large labor force ( including work stoppages due to COVID - 19 ) ; retention of key personnel ; construction defect and product liability claims ; impairment of goodwill ; adverse credit and financial markets events and conditions ( which have worsened and may continue to worse as a result of the COVID - 19 pandemic ) ; credit sale risks ; performance of individual branches ; environmental , health and safety laws and regulations ; hazardous materials and related materials ; laws and government regulations applicable to our business that could negatively impact demand for our products ; computer data processing systems ; cybersecurity incidents ( including the July 2020 ransomware attack ) ; security of personal information about our customers ; intellectual property and other proprietary rights ; the possibility of securities litigation ; unanticipated changes in our tax provisions ; our substantial indebtedness and our ability to obtain financing in the future ; increases in interest rates ; risks related to our common stock ; terrorism or the threat of terrorism ; and other risks , as described in Item 1A , " Risk Factors , " and elsewhere in our Annual Report on Form 10 - K for the fiscal year ended January 3 , 2021 , as updated by our subsequent filings under the Securities Exchange Act of 1934 , as amended , including Forms 10 - Q and 8 - K . Non - GAAP Financial Information