SiteOne Landscape Supply Announces First Quarter 2026 Earnings
First Quarter 2026 Highlights (Compared to First Quarter 2025):
-
Net sales increased
$0.7 million to$940.1 million - Organic Daily Sales decreased 1%
-
Gross profit increased 3% to
$318.8 million ; gross margin improved 90 basis points to 33.9% - SG&A as a percentage of Net sales increased 70 basis points to 37.2%; Base Business SG&A was flat on an adjusted basis
-
Net loss attributable to SiteOne of
$26.6 million , compared to$27.3 million for the prior year period -
Adjusted EBITDA1 increased 14% to
$25.5 million ; Adjusted EBITDA margin improved 30 basis points to 2.7% -
Cash used in operating activities decreased
$7.5 million to$122.1 million -
Closed the acquisitions of Bourget Flagstone and
Reinders -
Repurchased
$20.0 million of shares under the share repurchase authorization
Post Quarter Highlights
-
Amended ABL Facility and extended maturity to
April 2031
“We are pleased with our first quarter performance as we more than offset the weather and market-related softness in sales volume and delivered Adjusted EBITDA growth with meaningful gross margin improvement and continued tight SG&A management,” said
First Quarter 2026 Results
Net sales for the First Quarter 2026 increased
Gross profit increased 3% to
Selling, general and administrative expenses (“SG&A”) for the First Quarter 2026 increased to
Net loss attributable to SiteOne for the First Quarter 2026 was
Adjusted EBITDA1 for the First Quarter 2026 increased 14% to
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
As of
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Outlook
“We achieved 3% growth in pricing during the quarter, and we expect overall prices in 2026 to increase 2% to 3% for the full year,”
In fiscal year 2026, our results will include an extra week compared to the prior year period. The extra week occurs in December of our fiscal fourth quarter during a historically slower sales period and, as a result, is expected to reduce Adjusted EBITDA for the year by approximately
With all these factors in mind and including the negative effect of the 53rd week, we continue to expect Adjusted EBITDA for fiscal year 2026 to be in the range of
Reconciliation for the forward-looking full year 2026 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,
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
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our acquisition pipeline, organic and acquisition growth, execution of commercial and operational initiatives, and 2026 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: cyclicality in residential and commercial construction markets; general business, economic, and financial market conditions, the level of new home sales and construction activity, geopolitical conflicts, trade disputes, inflationary pressures, capital markets volatility, and declines in consumer confidence; severe weather and climate conditions; seasonality of our business and its impact on demand for our products; volatility in the prices for the products we purchase and the costs required to operate our business; laws and regulations governing our operations; hazardous materials and related materials; laws and government regulations applicable to our business that could negatively impact demand for our products; competitive industry pressures; supply chain disruptions (including as a result of geopolitical conflicts, the imposition of
Non-GAAP Financial Information
This release includes certain financial information, not prepared in accordance with
We present Adjusted EBITDA in order to evaluate the operating performance and efficiency of our business. Adjusted EBITDA represents EBITDA as further adjusted for items permitted under the covenants of our credit facilities. EBITDA represents Net income (loss) plus the sum of income tax expense (benefit), interest expense, net of interest income, and depreciation and amortization. Adjusted EBITDA represents EBITDA as further adjusted for stock-based compensation expense, (gain) loss on sale of assets and termination of finance leases not in the ordinary course of business, financing fees, as well as other fees and expenses related to acquisitions, and other non-recurring (income) loss. Adjusted EBITDA includes Adjusted EBITDA attributable to non-controlling interest. Adjusted EBITDA does not include pre-acquisition acquired Adjusted EBITDA. Adjusted EBITDA is not a measure of our liquidity or financial performance under
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Consolidated Balance Sheets (Unaudited) |
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(In millions, except share and per share data) |
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Assets |
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Current assets: |
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|
|
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Cash and cash equivalents |
|
$ |
84.0 |
|
|
$ |
190.6 |
|
|
Accounts receivable, net of allowance for doubtful accounts of |
|
|
576.8 |
|
|
|
546.8 |
|
|
Inventory, net |
|
|
1,107.9 |
|
|
|
876.5 |
|
|
Income tax receivable |
|
|
32.9 |
|
|
|
22.4 |
|
|
Prepaid expenses and other current assets |
|
|
80.4 |
|
|
|
62.5 |
|
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Total current assets |
|
|
1,882.0 |
|
|
|
1,698.8 |
|
|
|
|
|
|
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Property and equipment, net |
|
|
304.3 |
|
|
|
295.4 |
|
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Operating lease right-of-use assets, net |
|
|
443.9 |
|
|
|
439.7 |
|
|
|
|
|
567.7 |
|
|
|
530.4 |
|
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Intangible assets, net |
|
|
231.8 |
|
|
|
220.0 |
|
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Deferred tax assets |
|
|
9.0 |
|
|
|
14.7 |
|
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Other assets |
|
|
18.8 |
|
|
|
20.6 |
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Total assets |
|
$ |
3,457.5 |
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$ |
3,219.6 |
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Liabilities, Redeemable Non-controlling Interest, and Stockholders' Equity |
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Current liabilities: |
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Accounts payable |
|
$ |
454.0 |
|
|
$ |
310.8 |
|
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Current portion of finance leases |
|
|
33.6 |
|
|
|
33.2 |
|
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Current portion of operating leases |
|
|
98.4 |
|
|
|
97.3 |
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Accrued compensation |
|
|
63.0 |
|
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|
104.6 |
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Long-term debt, current portion |
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|
3.9 |
|
|
|
3.9 |
|
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Accrued liabilities |
|
|
155.7 |
|
|
|
137.0 |
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Total current liabilities |
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808.6 |
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|
686.8 |
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|
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Other long-term liabilities |
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4.0 |
|
|
|
4.0 |
|
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Finance leases, less current portion |
|
|
99.1 |
|
|
|
101.6 |
|
|
Operating leases, less current portion |
|
|
365.8 |
|
|
|
362.5 |
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Long-term debt, less current portion |
|
|
531.9 |
|
|
|
381.5 |
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Total liabilities |
|
|
1,809.4 |
|
|
|
1,536.4 |
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|
|
|
|
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Commitments and contingencies |
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Redeemable non-controlling interest |
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26.5 |
|
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24.0 |
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|
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Stockholders' equity: |
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Common stock, par value |
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0.5 |
|
|
|
0.5 |
|
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Additional paid-in capital |
|
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667.9 |
|
|
|
658.1 |
|
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Retained earnings |
|
|
1,165.1 |
|
|
|
1,191.7 |
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Accumulated other comprehensive loss |
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|
(5.7 |
) |
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|
(4.9 |
) |
|
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|
|
(206.2 |
) |
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|
(186.2 |
) |
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Total stockholders' equity |
|
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1,621.6 |
|
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|
1,659.2 |
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Total liabilities, redeemable non-controlling interest, and stockholders' equity |
|
$ |
3,457.5 |
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$ |
3,219.6 |
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Consolidated Statements of Operations (Unaudited) |
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(In millions, except share and per share data) |
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Three Months Ended |
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Net sales |
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$ |
940.1 |
|
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$ |
939.4 |
|
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Cost of goods sold |
|
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|
621.3 |
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|
629.6 |
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Gross profit |
|
|
|
318.8 |
|
|
|
309.8 |
|
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|
|
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|
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Selling, general and administrative expenses |
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|
349.9 |
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|
343.2 |
|
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Other income |
|
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|
5.2 |
|
|
|
3.9 |
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Operating loss |
|
|
|
(25.9 |
) |
|
|
(29.5 |
) |
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|
|
|
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Interest and other non-operating expenses, net |
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|
8.0 |
|
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|
7.4 |
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Loss before taxes |
|
|
|
(33.9 |
) |
|
|
(36.9 |
) |
|
Income tax benefit |
|
|
|
(9.8 |
) |
|
|
(9.4 |
) |
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Net loss |
|
|
|
(24.1 |
) |
|
|
(27.5 |
) |
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|
|
|
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Less: |
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|
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||||
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Net loss attributable to non-controlling interest |
|
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|
(0.1 |
) |
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|
(0.2 |
) |
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Adjustment of non-controlling interest to redemption value |
|
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|
2.6 |
|
|
|
— |
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Net loss attributable to SiteOne |
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|
$ |
(26.6 |
) |
|
$ |
(27.3 |
) |
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Net loss per common share: |
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Basic |
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$ |
(0.60 |
) |
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$ |
(0.61 |
) |
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Diluted |
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$ |
(0.60 |
) |
|
$ |
(0.61 |
) |
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Weighted average number of common shares outstanding: |
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Basic |
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44,586,582 |
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45,084,610 |
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Diluted |
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44,586,582 |
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45,084,610 |
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Consolidated Statements of Cash Flows (Unaudited) |
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(In millions) |
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Three Months Ended |
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Cash Flows from Operating Activities: |
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Net loss |
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$ |
(24.1 |
) |
|
$ |
(27.5 |
) |
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Adjustments to reconcile Net loss to net cash used in operating activities: |
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Amortization of finance lease right-of-use assets and depreciation |
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|
20.4 |
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|
19.9 |
|
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Stock-based compensation |
|
|
14.2 |
|
|
|
13.6 |
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Amortization of software and intangible assets |
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|
14.7 |
|
|
|
15.5 |
|
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Amortization of debt related costs |
|
|
0.3 |
|
|
|
0.3 |
|
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Gain on sale of equipment |
|
|
(1.6 |
) |
|
|
(0.2 |
) |
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Other |
|
|
(0.4 |
) |
|
|
(2.7 |
) |
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Changes in operating assets and liabilities, net of the effects of acquisitions: |
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Receivables |
|
|
(15.4 |
) |
|
|
(14.3 |
) |
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Inventory |
|
|
(203.7 |
) |
|
|
(204.4 |
) |
|
Income tax receivable |
|
|
(10.5 |
) |
|
|
(9.4 |
) |
|
Prepaid expenses and other assets |
|
|
(11.3 |
) |
|
|
(17.8 |
) |
|
Accounts payable |
|
|
124.0 |
|
|
|
118.8 |
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Accrued expenses and other liabilities |
|
|
(28.7 |
) |
|
|
(21.4 |
) |
|
|
|
$ |
(122.1 |
) |
|
$ |
(129.6 |
) |
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Cash Flows from Investing Activities: |
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Purchases of property and equipment |
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(23.0 |
) |
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(14.8 |
) |
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Purchases of intangible assets |
|
|
(5.0 |
) |
|
|
— |
|
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Acquisitions, net of cash acquired |
|
|
(75.9 |
) |
|
|
(7.1 |
) |
|
Proceeds from the sale of property and equipment |
|
|
2.3 |
|
|
|
0.9 |
|
|
|
|
$ |
(101.6 |
) |
|
$ |
(21.0 |
) |
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|
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Cash Flows from Financing Activities: |
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||||
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Equity proceeds from common stock |
|
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0.7 |
|
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|
0.8 |
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Repurchases of common shares |
|
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(20.0 |
) |
|
|
(3.8 |
) |
|
Repayments under term loan |
|
|
(1.0 |
) |
|
|
(1.0 |
) |
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Borrowings on asset-based credit facilities |
|
|
205.2 |
|
|
|
220.5 |
|
|
Repayments on asset-based credit facilities |
|
|
(54.1 |
) |
|
|
(104.5 |
) |
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Payments on finance lease obligations |
|
|
(8.5 |
) |
|
|
(7.7 |
) |
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Other financing activities |
|
|
(5.0 |
) |
|
|
(4.3 |
) |
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Net Cash Provided By Financing Activities |
|
$ |
117.3 |
|
|
$ |
100.0 |
|
|
|
|
|
|
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Effect of exchange rate on cash |
|
|
(0.2 |
) |
|
|
0.1 |
|
|
Net change in cash |
|
|
(106.6 |
) |
|
|
(50.5 |
) |
|
Cash and cash equivalents: |
|
|
|
|
||||
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Beginning |
|
|
190.6 |
|
|
|
107.1 |
|
|
Ending |
|
$ |
84.0 |
|
|
$ |
56.6 |
|
|
|
|
|
|
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Supplemental Disclosures of Cash Flow Information: |
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Cash paid during the year for interest |
|
$ |
8.1 |
|
|
$ |
5.8 |
|
|
Cash paid during the year for income taxes |
|
$ |
1.1 |
|
|
$ |
— |
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Adjusted EBITDA to Net Income Reconciliation (Unaudited) |
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(In millions) |
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The following table presents a reconciliation of Adjusted EBITDA to Net income (loss): |
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2026 |
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2025 |
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2024 |
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Qtr 1 |
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Qtr 4 |
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Qtr 3 |
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Qtr 2 |
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Qtr 1 |
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Qtr 4 |
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Qtr 3 |
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Qtr 2 |
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Reported Net income (loss) |
$ |
(24.1 |
) |
|
$ |
(7.8 |
) |
|
$ |
60.6 |
|
$ |
132.1 |
|
|
$ |
(27.5 |
) |
|
$ |
(21.5 |
) |
|
$ |
44.6 |
|
$ |
120.6 |
|
|
|
|
Income tax expense (benefit) |
|
(9.8 |
) |
|
|
(5.4 |
) |
|
|
15.5 |
|
|
45.0 |
|
|
|
(9.4 |
) |
|
|
(10.1 |
) |
|
|
15.8 |
|
|
40.0 |
|
|
|
Interest expense, net |
|
8.0 |
|
|
|
8.2 |
|
|
|
9.1 |
|
|
10.3 |
|
|
|
7.4 |
|
|
|
6.7 |
|
|
|
9.5 |
|
|
9.0 |
|
|
|
Depreciation and amortization |
|
35.1 |
|
|
|
34.7 |
|
|
|
35.4 |
|
|
35.3 |
|
|
|
35.4 |
|
|
|
35.6 |
|
|
|
35.9 |
|
|
34.6 |
|
|
EBITDA |
|
9.2 |
|
|
|
29.7 |
|
|
|
120.6 |
|
|
222.7 |
|
|
|
5.9 |
|
|
|
10.7 |
|
|
|
105.8 |
|
|
204.2 |
|
|
|
|
Stock-based compensation(a) |
|
14.2 |
|
|
|
5.5 |
|
|
|
5.6 |
|
|
2.3 |
|
|
|
13.6 |
|
|
|
5.5 |
|
|
|
5.2 |
|
|
3.8 |
|
|
|
(Gain) loss on sale of assets(b) |
|
(1.6 |
) |
|
|
0.3 |
|
|
|
0.1 |
|
|
(0.5 |
) |
|
|
(0.2 |
) |
|
|
1.5 |
|
|
|
0.3 |
|
|
(0.3 |
) |
|
|
Financing fees(c) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
— |
|
|
|
Acquisitions and other adjustments(d) |
|
3.7 |
|
|
|
2.1 |
|
|
|
1.2 |
— |
|
2.2 |
|
|
|
3.1 |
|
|
|
14.1 |
|
|
|
3.0 |
|
|
2.8 |
|
|
Adjusted EBITDA (e) |
$ |
25.5 |
|
|
$ |
37.6 |
|
|
$ |
127.5 |
|
$ |
226.7 |
|
|
$ |
22.4 |
|
|
$ |
31.8 |
|
|
$ |
114.8 |
|
$ |
210.5 |
|
|
| _______________ |
|
(a) |
Represents stock-based compensation expense recorded during the period. | |
|
(b) |
Represents any gain or loss associated with the sale of assets and termination of finance leases not in the ordinary course of business. |
|
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(c) |
Represents fees associated with our debt refinancing and debt amendments. |
|
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(d) |
Represents professional fees and settlement of litigation, performance bonuses, and retention and severance payments related to historical acquisitions. Also included is the cost of inventory that was stepped up to fair value during the second quarter of 2024 related to the purchase accounting of |
|
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(e) |
Adjusted EBITDA excludes any earnings or loss of acquisitions prior to their respective acquisition dates for all periods presented. Adjusted EBITDA includes Adjusted EBITDA attributable to non-controlling interest as follows (in millions): |
|
|
2026 |
|
2025 |
|
2024 |
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|
|
Qtr 1 |
|
Qtr 4 |
|
Qtr 3 |
|
Qtr 2 |
|
Qtr 1 |
|
Qtr 4 |
|
Qtr 3 |
|
Qtr 2 |
|||||||||
|
Adjusted EBITDA attributable to non-controlling interest |
$ |
0.7 |
|
$ |
1.1 |
|
$ |
1.0 |
|
$ |
1.8 |
|
$ |
0.3 |
|
$ |
0.8 |
|
$ |
0.8 |
|
$ |
0.9 |
|
|
|
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|
Organic Daily Sales to Net Sales Reconciliation |
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|
(In millions, except Selling Days; unaudited) |
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|
The following table presents a reconciliation of Organic Daily Sales to Net sales: |
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|
|
2026 |
|
2025 |
|||
|
|
|
Qtr 1 |
|
Qtr 1 |
||
|
Reported Net sales |
|
$ |
940.1 |
|
$ |
939.4 |
|
Organic Sales(a) |
|
|
927.7 |
|
|
939.4 |
|
Acquisition contribution(b) |
|
|
12.4 |
|
|
— |
|
Selling Days |
|
|
64 |
|
|
64 |
|
Organic Daily Sales |
|
$ |
14.5 |
|
$ |
14.7 |
| ________________ |
|
(a) |
Organic Sales equal Net sales less Net sales from branches acquired in 2026 and 2025. | |
|
(b) |
Represents Net sales from acquired branches that have not been under our ownership for at least four full fiscal quarters at the start of the 2026 Fiscal Year. Includes Net sales from branches acquired in 2026 and 2025. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260429412645/en/
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