SiteOne Landscape Supply Stock Gains On Strong Q2, Raised FY21 Adjusted EBITDA Outlook - SiteOne Landscape Supply (NYSE:SITE)

SiteOne Landscape Supply Inc SITE reported a second-quarter net sales increase of 33% year-over-year to $1.084 billion, beating the consensus of $1.04 billion. Organic Daily Sales increased by 22%.
Net sales growth for the quarter included $90.4 million or 11% in acquisition contributions.
EPS improved to $2.70 from $1.83 in 2Q20, beating the consensus of $2.37.
Gross profit improved 36% to $388.2 million and the gross margin expanded by 80 bps to 35.8%.
The operating income increased by 46.6% Y/Y to $164.4 million, and the margin expanded by 145 bps to 15.2%.
SG&A as a percentage of net sales decreased by 60 bps to 20.8%.
SiteOne generated cash from operating activities year-to-date of $92.2 million, compared to $119.1 million a year ago.
Adjusted EBITDA increased 44% to $190.6 million, versus $132.1 million in 2Q20, and margin expanded by 140 bps to 17.6%.
SiteOne Landscape had cash on hand of $107.8 million and available capacity under the ABL Facility of $364.1 million at the end of the quarter.
"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," said Chairman and CEO Doug Black.
Outlook: SiteOne Landscape Supply expects 2021 Adjusted EBITDA to grow 29% - 40% Y/Y to $335 million - $365 million (prior $300 million - $320 million).
Price action: SITE shares traded higher by 3.63% at $177.835 on the last check Wednesday.

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