Summary: SiteOne Landscape Supply, Inc.

Narrow product focus (landscaping supplies). Growing, but still smaller in size than its larger, rated building materials peers, with less than $2 billion in revenues and $200 million in adjusted EBITDA. Exposure to cyclical construction markets, with roughly 40% of revenues tied to less cyclical repair and remodel markets. Leading market share and size (with revenues nearly four times larger than its closest competitor) in the fragmented landscaping distribution market, with strong brand recognition for some products, including LESCO. Relatively high selling, general, and administrative (SG&A) expenses (roughly 25% of revenues) compared to industry peers. Improving adjusted EBITDA margins in the 10%-11% range, which is above average relative to other distributors in the building materials industry. Aggressive acquisition strategy, financed

...Business Risk: Fair Financial Risk: Aggressive + Narrow product focus (landscaping supplies). + Growing, but still smaller in size than its larger, rated building materials peers, with less than $2 billion in revenues and $200 million in adjusted EBITDA. + Exposure to cyclical construction markets, with roughly 40% of revenues tied to less cyclical repair and remodel markets. + Leading market share and size (with revenues nearly four times larger than its closest competitor) in the fragmented landscaping distribution market, with strong brand recognition for some products, including LESCO. + Relatively high selling, general, and administrative (SG&A) expenses (roughly 25% of revenues) compared to industry peers. + Improving adjusted EBITDA margins in the 10%-11% range, which is above average relative to other distributors in the building materials industry. + Aggressive acquisition strategy, financed primarily through its asset-based lending (ABL) facility and typically paid down using...

Summary