ROSWELL, Ga. - SiteOne Landscape Supply, Inc. (NYSE: NYSE:SITE) reported its financial results for the first quarter ended March 31, 2024, with net sales increasing by 8% to $904.8 million compared to $837.4 million in the same quarter last year.
The company's performance exceeded the analyst consensus estimate of $865.82 million. However, the company posted a net loss of $19.3 million, or ($0.43) per share, which was more substantial than the anticipated analyst estimate of a $0.21 loss per share.
SiteOne's Chairman and CEO, Doug Black, attributed the positive sales growth to solid demand and improved operating cash flow, despite significant commodity pricing deflation. The company's gross profit saw a 5% increase to $301.2 million, but gross margin contracted by 100 basis points to 33.3%, primarily due to lower price realization, though partially offset by acquisitions. Selling, general, and administrative expenses (SG&A) as a percentage of net sales climbed 140 basis points to 36.2%, chiefly impacted by acquisitions.
Compared to the prior-year period, the company's net loss deepened from $4.5 million to $19.3 million, with higher net sales offset by lower gross margin and increased SG&A expense. Adjusted EBITDA fell 47% to $21.1 million, with the adjusted EBITDA margin shrinking by 250 basis points to 2.3%.
Looking ahead, Black noted that commodity price deflation is expected to persist into the third quarter, with full-year 2024 prices projected to be down approximately 2%. Despite this, the company anticipates low single-digit Organic Daily Sales growth for the full year, supported by commercial initiatives, SG&A management, and contributions from acquisitions. For fiscal 2024, SiteOne maintains its adjusted EBITDA guidance range of $420 million to $455 million, not accounting for any unannounced acquisitions.
SiteOne Landscape Supply, a leading wholesale distributor of landscape supplies in the United States with a growing presence in Canada, continues to focus on its long-term strategy for performance and growth, as evidenced by the recent acquisitions of Eggemeyer and a 75% interest in Devil Mountain Wholesale Nursery. The company's acquisition pipeline remains active, leveraging its market leadership and strong balance sheet.
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