SiteOne Landscape Supply, Inc. (NYSE:SITE) Q3 2018 Earnings Conference Call Transcript

Oct 31, 2018 • 08:00 am ET

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SiteOne Landscape Supply, Inc. (NYSE:SITE) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings and welcome to the SiteOne Landscape Supply Third Quarter 2018 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Pascal Convers, Executive Vice President of Strategy and Development for SiteOne Landscape Supply. Thank you. You may begin.

Executive
Pascal Convers

Thank you, and good morning, everyone. We issued our third quarter earnings press release this morning and posted a slide presentation to the Investor Relations portion of our website at investors.siteone.com. We will be referencing the slides during this call. I'm joined today by Doug Black, our Chairman and Chief Executive Officer, and John Guthrie, our Chief Financial Officer.

Before we begin, I would like to remind everyone that today's press release, the slide presentation and statements made during this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainty that could cause actual results to differ materially from our expectations and projections. Such risks and uncertainties include the factors set forth in the earnings release and in our filings with the Securities and Exchange Commission.

Additionally, during today's call, the company will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. A reconciliation of these measures can be found in our earnings release and in the slide presentation.

I would now like to turn the call over to our Chairman and CEO, Doug Black.Thank you, Pascal. Good morning and thank you for taking the time to join us today. During the third quarter we delivered solid organic sales growth, double-digit growth in overall revenue, strong gross margin and adjusted EBITDA margin expansion and excellent cash flow, all despite some tough weather-related and inflationary headwinds. We also added five more terrific companies to SiteOne during the quarter and in October, bringing the total number of acquisitions to 12 for the year. Lastly, we made further progress on our investments for the future by completing the rollout of our new e-Commerce platform during the quarter.

I will start today's call with a review of our unique market position, our strategy to deliver long-term performance and growth and our progress over the past four months. John Guthrie will then walk you through our third quarter financial results in more detail, and Pascal will address our acquisition strategy. Finally, I will discuss the trends that we see in our markets as well as our outlook for the balance of 2018 and how we are generally thinking about 2019, before taking your questions.

I'll start on Slide 4 of the earnings presentation. As the largest and only national wholesale distributor of landscaping products, we have grown our footprint to 552 branches and three major distribution centers in the United States and Canada. By the end of 2018 we will have approximately 11% share of the wholesale landscaping products distribution market. We are 4x larger than our nearest competitor and larger than two through