SiteOne Landscape Supply Files Q2 2024 10-Q

TL;DR

SiteOne Landscape Supply's Q2 10-Q is in. Check financials for H1 2024.

AI Summary

SiteOne Landscape Supply, Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers financial performance and operational details for the second quarter and the first half of the fiscal year. Key financial data and disclosures relevant to investors are included.

Why It Matters

This filing provides investors with crucial financial updates for SiteOne Landscape Supply, detailing their performance and financial position as of mid-2024.

Risk Assessment

Risk Level: medium — 10-Q filings inherently carry medium risk due to the detailed financial and operational information that can impact stock price.

Key Players & Entities

• SiteOne Landscape Supply, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240731 (date) — Filing date

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share SITE New York Stock

Filing Documents

• site-20240630.htm (10-Q) — 1403KB
• site_06302024xex101.htm (EX-10.1) — 20KB
• site_06302024xex311.htm (EX-31.1) — 8KB
• site_06302024xex312.htm (EX-31.2) — 8KB
• site_06302024xex321.htm (EX-32.1) — 4KB
• site_06302024xex322.htm (EX-32.2) — 4KB
• site-20240630_g1.jpg (GRAPHIC) — 673KB
• 0001650729-24-000013.txt ( ) — 9446KB
• site-20240630.xsd (EX-101.SCH) — 47KB
• site-20240630_cal.xml (EX-101.CAL) — 83KB
• site-20240630_def.xml (EX-101.DEF) — 249KB
• site-20240630_lab.xml (EX-101.LAB) — 659KB
• site-20240630_pre.xml (EX-101.PRE) — 479KB
• site-20240630_htm.xml (XML) — 1172KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) Consolidated Balance Sheets 5 Consolidated Statements of Operations 6 Consolidated Statements of Comprehensive Income 7 Consolidated Statements of Equity and Redeemable Non-controlling Interest 8 Consolidated Statements of Cash Flows 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 30

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 48

Controls and Procedures

Item 4. Controls and Procedures 48

OTHER INFORMATION

Part II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 49

Risk Factors

Item 1A. Risk Factors 49

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49

Other Information

Item 5. Other Information 49

Exhibits

Item 6. Exhibits 50 Signature 51 1 Table of Contents Special Note Regarding Forward-Looking Statements and Information This Quarterly Report on Form 10-Q, other periodic reports filed by us under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and other written or oral statements made from time to time by our management contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 often signify forward-looking statements. Forward-looking statements are subject to risks and uncertainties that are beyond our control, and because they also relate to the future, they are likewise subject to inherent uncertainties and other factors that may cause actual results to differ materially from the views, beliefs, and projections expressed in such statements. 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. 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: cyclicality in residential and commercial construction markets; general business, financial market, and economic conditions; seasonality of our business and its impact on demand for our products; weather and climate conditions; prices for the products we purchase may fluctuate; market variables, including inflation and elevated interest rates for prolonged periods; increases in operating costs; public perceptions that our products and services are

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) 4 Table of Contents SiteOne Landscape Supply, Inc. Consolidated Balance Sheets (Unaudited) (In millions, except share and per share data) Assets June 30, 2024 December 31, 2023 Current assets: Cash and cash equivalents $ 71.9 $ 82.5 Accounts receivable, net of allowance for doubtful accounts of $ 25.9 and $ 27.3 , respectively 610.4 490.6 Inventory, net 935.1 771.2 Prepaid expenses and other current assets 72.2 61.0 Total current assets 1,689.6 1,405.3 Property and equipment, net ( Note 5 ) 285.2 249.4 Operating lease right-of-use assets, net ( Note 7 ) 406.6 388.9 Goodwill ( Note 6 ) 509.6 485.5 Intangible assets, net ( Note 6 ) 278.5 280.8 Deferred tax assets 5.4 5.3 Other assets 10.5 13.7 Total assets $ 3,185.4 $ 2,828.9 Liabilities, Redeemable Non-controlling Interest, and Stockholders' Equity Current liabilities: Accounts payable $ 347.6 $ 270.8 Current portion of finance leases ( Note 7 ) 26.3 21.8 Current portion of operating leases ( Note 7 ) 86.4 83.6 Accrued compensation 60.5 74.2 Long-term debt, current portion ( Note 9 ) 4.9 5.3 Income tax payable 27.7 8.0 Accrued liabilities 129.6 114.6 Total current liabilities 683.0 578.3 Other long-term liabilities 13.1 11.5 Finance leases, less current portion ( Note 7 ) 89.0 69.8 Operating leases, less current portion ( Note 7 ) 327.4 313.3 Deferred tax liabilities 1.7 2.3 Long-term debt, less current portion ( Note 9 ) 475.3 367.6 Total liabilities 1,589.5 1,342.8 Commitments and contingencies ( Note 11 ) Redeemable non-controlling interest 19.0 — Stockholders' equity: Common stock, par value $ 0.01 ; 1,000,000,000 shares authorized; 45,549,753 and 45,404,091 shares issued, and 45,119,721 and 45,082,070 shares outstanding at June 30, 2024 and December 31, 2023, respectively 0.5 0.5 Additional paid-in capital 615.4 601.8 Retained earnings 1,017.2 916.3 Accumulated other comprehensive income 0.3 4.2

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1. Nature of Business and Significant Accounting Policies 11 Note 2. Revenue from Contracts with Customers 14 Note 3. Acquisitions 15 Note 4. Fair Value Measurement and Interest Rate Swaps 16 Note 5. Property and Equipment, Net 19 Note 6. Goodwill and Intangible Assets, Net 19 Note 7. Leases 21 Note 8. Employee Benefit and Stock Incentive Plans 22 Note 9. Long-Term Debt 25 Note 10. Income Taxes 28 Note 11. Commitments and Contingencies 28 Note 12. Earnings (Loss) Per Share 29 Note 13. Subsequent Events 29 10 Table of Contents Note 1. Nature of Business and Significant Accounting Policies Nature of Business SiteOne Landscape Supply, Inc. (hereinafter collectively with all its consolidated subsidiaries referred to as the "Company") is a wholesale distributor of irrigation supplies, hardscapes (including pavers, natural stone, and blocks), fertilizer and control products (e.g., herbicides), landscape accessories, nursery goods, outdoor lighting, and ice melt products to green industry professionals. The Company also provides value-added consultative services to complement its product offering and to help customers operate and grow their businesses. Substantially all of the Company's sales are to customers located in the United States of America ("U.S."), with less than three percent of sales and less than three percent of total assets in Canada for all periods presented. As of June 30, 2024, the Company had over 710 branches. Based on the nature of the Company's products and customers' business cycles, sales are significantly higher in the second and third quarters of each fiscal year. Share Repurchase Program On October 20, 2022, the Company's Board of Directors authorized the Company to repurchase, at any time or from time to time, shares of the Company's common stock having an aggregate purchase price not to exceed $ 400.0 million pursuant to a Rule 10b5

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View this 10-Q filing on SEC EDGAR