Core & Main Announces Fiscal 2024 Second Quarter Results
Core & Main (NYSE: CNM) reported its fiscal 2024 second quarter results, showing net sales growth of 5.5% to $1,964 million. However, the company faced challenges, with net income decreasing 23.2% to $126 million and diluted earnings per share dropping 7.6% to $0.61. The company's performance was impacted by project delays due to wet weather conditions and lower end-market volumes. Despite these challenges, Core & Main's meter initiative showed strong growth of 48%. The company acquired five new businesses during and after the quarter, expanding its geographical reach and product lines. Core & Main also announced a $500 million share repurchase program, demonstrating its commitment to returning capital to shareholders.
Core & Main (NYSE: CNM) ha riportato i risultati del secondo trimestre fiscale 2024, evidenziando una crescita delle vendite nette del 5,5% a 1.964 milioni di dollari. Tuttavia, l'azienda ha affrontato delle difficoltà, con un reddito netto che è diminuito del 23,2% a 126 milioni di dollari e un utile per azione diluito che è calato del 7,6% a 0,61 dollari. La performance dell'azienda è stata influenzata da ritardi nei progetti a causa di condizioni meteorologiche avverse e volumi di mercato finale inferiori. Nonostante queste sfide, l'iniziativa sui contatori di Core & Main ha mostrato una forte crescita del 48%. L'azienda ha acquisito cinque nuove attività durante e dopo il trimestre, ampliando la propria portata geografica e le linee di prodotto. Core & Main ha anche annunciato un programma di riacquisto di azioni da 500 milioni di dollari, dimostrando il proprio impegno a restituire capitale agli azionisti.
Core & Main (NYSE: CNM) informó sus resultados del segundo trimestre fiscal 2024, mostrando un crecimiento en las ventas netas del 5.5% a 1,964 millones de dólares. Sin embargo, la compañía enfrentó desafíos, con un ingreso neto que disminuyó un 23.2% a 126 millones de dólares y las ganancias por acción diluidas cayendo un 7.6% a 0.61 dólares. El desempeño de la empresa se vio afectado por retrasos en los proyectos debido a condiciones climáticas húmedas y menores volúmenes en el mercado final. A pesar de estos desafíos, la iniciativa de medidores de Core & Main mostró un fuerte crecimiento del 48%. La compañía adquirió cinco nuevos negocios durante y después del trimestre, ampliando su alcance geográfico y líneas de productos. Core & Main también anunció un programa de recompra de acciones de 500 millones de dólares, demostrando su compromiso de devolver capital a los accionistas.
Core & Main (NYSE: CNM)는 2024 회계연도 2분기 결과를 발표하며 순매출 19억 6400만 달러로 5.5% 성장했다고 밝혔습니다. 그러나 회사는 순이익이 1억 2600만 달러로 23.2% 감소하고 희석 주당 순이익이 0.61달러로 7.6% 하락하는 등 어려움에 직면했습니다. 프로젝트 지연과 낮은 최종 시장 수요로 인해 회사의 성과에 부정적인 영향을 미쳤습니다. 이러한 도전에도 불구하고 Core & Main의 계량기 이니셔티브는 48%의 강력한 성장을 기록했습니다. 또한 회사는 분기 동안 및 이후에 다섯 개의 신규 사업을 인수하여 지리적 범위와 제품 라인을 확장했습니다. Core & Main은 또한 5억 달러 규모의 자사주 매입 프로그램을 발표하여 주주에게 자본을 환원하겠다는 의지를 보여주었습니다.
Core & Main (NYSE: CNM) a annoncé ses résultats du deuxième trimestre fiscal 2024, montrant une croissance des ventes nettes de 5,5 % à 1 964 millions de dollars. Cependant, l'entreprise a rencontré des défis, avec un revenu net en baisse de 23,2 % à 126 millions de dollars et un bénéfice par action dilué en baisse de 7,6 % à 0,61 dollar. La performance de l'entreprise a été affectée par des retards de projet en raison de conditions météorologiques humides et de volumes de marché final plus faibles. Malgré ces défis, l'initiative de compteurs de Core & Main a montré une forte croissance de 48 %. L'entreprise a acquis cinq nouvelles entreprises pendant et après le trimestre, élargissant sa portée géographique et ses gammes de produits. Core & Main a également annoncé un programme de rachat d'actions de 500 millions de dollars, démontrant son engagement à restituer du capital aux actionnaires.
Core & Main (NYSE: CNM) hat die Ergebnisse des zweiten Quartals des Geschäftsjahres 2024 veröffentlicht und zeigt ein Umsatzwachstum von 5,5% auf 1.964 Millionen Dollar. Die Firma sah sich jedoch Herausforderungen gegenüber, da der Nettogewinn um 23,2% auf 126 Millionen Dollar sank und der verwässerte Gewinn pro Aktie um 7,6% auf 0,61 Dollar fiel. Die Leistung des Unternehmens wurde durch Verzögerungen bei Projekten aufgrund von nassen Wetterbedingungen und geringeren Endmarktvolumina beeinträchtigt. Trotz dieser Herausforderungen zeigte die Zählerinitiative von Core & Main ein starkes Wachstum von 48%. Das Unternehmen erwarb fünf neue Unternehmen während und nach dem Quartal, wodurch es seine geografische Reichweite und Produktlinien erweiterte. Core & Main kündigte auch ein Aktienrückkaufprogramm über 500 Millionen Dollar an, was das Engagement des Unternehmens zeigt, Kapital an die Aktionäre zurückzugeben.
- Net sales increased 5.5% to $1,964 million, reaching a new quarterly record
- Meter initiative grew by 48%, outpacing end-market growth
- Acquired five new businesses, expanding geographical reach and product lines
- Announced $500 million share repurchase program
- Strong balance sheet and cash generation position for future growth opportunities
- Net income decreased 23.2% to $126 million
- Diluted earnings per share decreased 7.6% to $0.61
- Gross profit margin decreased 50 basis points to 26.4%
- Adjusted EBITDA decreased 4.8% to $257 million
- Project delays due to wet weather conditions and lower end-market volumes
- Lowered full-year net sales and Adjusted EBITDA guidance
Insights
Core & Main's Q2 fiscal 2024 results show mixed performance. While net sales increased by
Profitability metrics declined, with net income decreasing by
The company's aggressive acquisition strategy is evident, with five new businesses acquired. However, this has led to increased SG&A expenses and higher debt levels, with Net Debt Leverage rising to 2.7x. The revised full-year outlook, with lowered net sales and Adjusted EBITDA targets, suggests ongoing challenges in the near term.
Core & Main's results reflect broader industry trends and market dynamics. The meter initiative's
The acquisition of HM Pipe Products opens up a new multi-billion-dollar addressable market in Canada, signaling geographic expansion opportunities. The
The revised outlook, citing that some growth will be pushed into 2025, suggests a potential market recovery on the horizon. This aligns with expectations of increased infrastructure spending, though timing remains uncertain. The company's focus on smart meter technology and advanced storm water management systems positions it well for future growth in modernizing infrastructure.
Fiscal 2024 Second Quarter Results (Compared with Fiscal 2023 Second Quarter)
-
Net sales increased
5.5% to$1,964 million -
Gross profit increased
3.4% to ; gross profit margin decreased 50 basis points to$518 million 26.4% -
Net income decreased
23.2% to$126 million -
Diluted earnings per share decreased
7.6% to$0.61 -
Adjusted EBITDA (Non-GAAP) decreased
4.8% to ; Adjusted EBITDA margin (Non-GAAP) decreased 140 basis points to$257 million 13.1% - Acquired five new businesses during and after the quarter: EGW Utilities, Geothermal Supply Company, HM Pipe Products, GroGreen Solutions and Green Equipment Company
"We grew net sales by approximately
"Despite the challenging weather and market conditions, our meter initiative continues to outpace the growth of our end markets, highlighted by the
We acquired five new businesses during and shortly after the quarter, each of which offers expansion into new geographies, access to new product lines or the addition of key talent. We are particularly excited by the acquisition of HM Pipe Products, which will allow us to tap into to a new multi-billion-dollar addressable market opportunity in
We continue to maintain a disciplined capital allocation strategy, balancing investments in our business with returning capital to shareholders, and in June, our board of directors approved a
Supported by our strong management team, which was further enhanced by the organizational realignment we completed in July, our associates continue to demonstrate unwavering dedication to our customers and their critical projects. I'm proud of their ability to remain agile, even in challenging market conditions. We are confident in our ability to deliver outstanding service to our customers, drive value creation, and execute our growth and capital allocation priorities now and in the future," LeClair concluded.
Three Months Ended July 28, 2024
Net sales for the three months ended July 28, 2024 increased
Gross profit for the three months ended July 28, 2024 increased
Selling, general and administrative ("SG&A") expenses for the three months ended July 28, 2024 increased
Net income for the three months ended July 28, 2024 decreased
The Class A common stock basic earnings per share for the three months ended July 28, 2024 decreased
Adjusted EBITDA for the three months ended July 28, 2024 decreased
Six Months Ended July 28, 2024
Net sales for the six months ended July 28, 2024 increased
Gross profit for the six months ended July 28, 2024 increased
SG&A expenses for the six months ended July 28, 2024 increased
Net income for the six months ended July 28, 2024 decreased
The Class A common stock basic earnings per share for the six months ended July 28, 2024 decreased
Adjusted EBITDA for the six months ended July 28, 2024 decreased
Liquidity and Capital Resources
Net cash provided by operating activities for the three months ended July 28, 2024 was
Net debt, calculated as gross consolidated debt net of cash and cash equivalents, as of July 28, 2024 was
As of July 28, 2024, we had
On May 21, 2024, we amended the terms of the
Fiscal 2024 Outlook
"We are revising our outlook for fiscal 2024 to reflect significant weather disruptions in the second quarter and our expectation that some of the growth we anticipated in the second half of the year will likely be pushed into 2025," LeClair said. "Pricing and gross margins have sustained well and are in line with our expectations through the first half of the year. As a result of lower-than-expected end market volumes, we are lowering our full year net sales range to
Conference Call & Webcast Information
Core & Main will host a live conference call and webcast on September 4, 2024 at 8:30 a.m. ET to discuss the Company's financial results. The webcast will be accessible via the events calendar at ir.coreandmain.com. The conference call may also be accessed by dialing 833-470-1428 or +1-404-975-4839 (international). The passcode for the live call is 823702. To ensure participants are connected for the full call, please dial in at least 10 minutes prior to the start of the call.
An archived version of the webcast will be available immediately following the call. A slide presentation highlighting Core & Main’s results will also be made available on the Investor Relations section of Core & Main’s website prior to the call.
About Core & Main
Based in
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, without limitation, all statements other than statements of historical facts contained in this press release, including statements relating to our intentions, beliefs, assumptions or current expectations concerning, among other things, our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding expected growth, future capital expenditures, capital allocation and debt service obligations, and the anticipated impact on our business.
Some of the forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,” “projects,” “is optimistic,” “intends,” “plans,” “estimates,” “anticipates” or the negative versions of these words or other comparable terms.
Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be outside our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of the market in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if our results of operations, financial condition, cash flows and the development of the market in which we operate are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. A number of important factors, including, without limitation, the risks and uncertainties discussed under the captions “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 28, 2024 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Quarterly Report on Form 10-Q for the fiscal period ended July 28, 2024, could cause actual results and outcomes to differ materially from those reflected in the forward-looking statements. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release.
Factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation, declines, volatility and cyclicality in the
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
CORE & MAIN, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Amounts in millions (except share and per share data), unaudited |
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
July 28, 2024 |
|
July 30, 2023 |
|
July 28, 2024 |
|
July 30, 2023 |
||||
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
1,964 |
|
$ |
1,861 |
|
$ |
3,705 |
|
$ |
3,435 |
Cost of sales |
|
|
1,446 |
|
|
1,360 |
|
|
2,719 |
|
|
2,495 |
Gross profit |
|
|
518 |
|
|
501 |
|
|
986 |
|
|
940 |
Operating expenses: |
|
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
|
268 |
|
|
238 |
|
|
525 |
|
|
461 |
Depreciation and amortization |
|
|
46 |
|
|
37 |
|
|
89 |
|
|
72 |
Total operating expenses |
|
|
314 |
|
|
275 |
|
|
614 |
|
|
533 |
Operating income |
|
|
204 |
|
|
226 |
|
|
372 |
|
|
407 |
Interest expense |
|
|
36 |
|
|
22 |
|
|
70 |
|
|
39 |
Income before provision for income taxes |
|
|
168 |
|
|
204 |
|
|
302 |
|
|
368 |
Provision for income taxes |
|
|
42 |
|
|
40 |
|
|
75 |
|
|
71 |
Net income |
|
|
126 |
|
|
164 |
|
|
227 |
|
|
297 |
Less: net income attributable to non-controlling interests |
|
|
7 |
|
|
54 |
|
|
13 |
|
|
101 |
Net income attributable to Core & Main, Inc. |
|
$ |
119 |
|
$ |
110 |
|
$ |
214 |
|
$ |
196 |
|
|
|
|
|
|
|
|
|
||||
Earnings per share |
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.62 |
|
$ |
0.66 |
|
$ |
1.11 |
|
$ |
1.16 |
Diluted |
|
$ |
0.61 |
|
$ |
0.66 |
|
$ |
1.11 |
|
$ |
1.15 |
Number of shares used in computing EPS |
|
|
|
|
|
|
|
|
||||
Basic |
|
|
192,797,961 |
|
|
167,312,292 |
|
|
192,495,255 |
|
|
169,474,741 |
Diluted |
|
|
202,667,354 |
|
|
228,983,281 |
|
|
202,640,993 |
|
|
236,375,917 |
CORE & MAIN, INC. CONDENSED CONSOLIDATED BALANCE SHEETS Amounts in millions (except share and per share data), unaudited |
|||||
|
July 28, 2024 |
|
January 28, 2024 |
||
ASSETS |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
13 |
|
$ |
1 |
Receivables, net of allowance for credit losses of |
|
1,294 |
|
|
973 |
Inventories |
|
959 |
|
|
766 |
Prepaid expenses and other current assets |
|
52 |
|
|
33 |
Total current assets |
|
2,318 |
|
|
1,773 |
Property, plant and equipment, net |
|
163 |
|
|
151 |
Operating lease right-of-use assets |
|
206 |
|
|
192 |
Intangible assets, net |
|
954 |
|
|
784 |
Goodwill |
|
1,843 |
|
|
1,561 |
Deferred income taxes |
|
559 |
|
|
542 |
Other assets |
|
55 |
|
|
66 |
Total assets |
$ |
6,098 |
|
$ |
5,069 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Current liabilities: |
|
|
|
||
Current maturities of long-term debt |
$ |
23 |
|
$ |
15 |
Accounts payable |
|
738 |
|
|
504 |
Accrued compensation and benefits |
|
80 |
|
|
106 |
Current operating lease liabilities |
|
61 |
|
|
55 |
Other current liabilities |
|
110 |
|
|
94 |
Total current liabilities |
|
1,012 |
|
|
774 |
Long-term debt |
|
2,404 |
|
|
1,863 |
Non-current operating lease liabilities |
|
146 |
|
|
138 |
Deferred income taxes |
|
84 |
|
|
48 |
Tax receivable agreement liabilities |
|
701 |
|
|
706 |
Other liabilities |
|
31 |
|
|
16 |
Total liabilities |
|
4,378 |
|
|
3,545 |
Commitments and contingencies |
|
|
|
||
Class A common stock, par value |
|
2 |
|
|
2 |
Class B common stock, par value |
|
— |
|
|
— |
Additional paid-in capital |
|
1,225 |
|
|
1,214 |
Retained earnings |
|
385 |
|
|
189 |
Accumulated other comprehensive income |
|
32 |
|
|
46 |
Total stockholders’ equity attributable to Core & Main, Inc. |
|
1,644 |
|
|
1,451 |
Non-controlling interests |
|
76 |
|
|
73 |
Total stockholders’ equity |
|
1,720 |
|
|
1,524 |
Total liabilities and stockholders’ equity |
$ |
6,098 |
|
$ |
5,069 |
CORE & MAIN, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Amounts in millions, unaudited |
||||||||
|
Six Months Ended |
|||||||
|
July 28, 2024 |
|
July 30, 2023 |
|||||
Cash Flows From Operating Activities: |
|
|
|
|||||
Net income |
$ |
227 |
|
|
$ |
297 |
|
|
Adjustments to reconcile net cash from operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
95 |
|
|
|
75 |
|
|
Equity-based compensation expense |
|
7 |
|
|
|
5 |
|
|
Deferred income tax expense |
|
5 |
|
|
|
2 |
|
|
Other |
|
7 |
|
|
|
3 |
|
|
Changes in assets and liabilities: |
|
|
|
|||||
(Increase) decrease in receivables |
|
(263 |
) |
|
|
(253 |
) |
|
(Increase) decrease in inventories |
|
(105 |
) |
|
|
185 |
|
|
(Increase) decrease in other assets |
|
(14 |
) |
|
|
— |
|
|
Increase (decrease) in accounts payable |
|
203 |
|
|
|
113 |
|
|
Increase (decrease) in accrued liabilities |
|
(36 |
) |
|
|
(25 |
) |
|
Net cash provided by operating activities |
|
126 |
|
|
|
402 |
|
|
Cash Flows From Investing Activities: |
|
|
|
|||||
Capital expenditures |
|
(16 |
) |
|
|
(15 |
) |
|
Acquisitions of businesses, net of cash acquired |
|
(596 |
) |
|
|
(151 |
) |
|
Other |
|
(6 |
) |
|
|
2 |
|
|
Net cash used in investing activities |
|
(618 |
) |
|
|
(164 |
) |
|
Cash Flows From Financing Activities: |
|
|
|
|||||
Repurchase and retirement of equity interests |
|
(21 |
) |
|
|
(473 |
) |
|
Distributions to non-controlling interest holders |
|
(7 |
) |
|
|
(25 |
) |
|
Payments pursuant to Tax Receivable Agreements |
|
(11 |
) |
|
|
(5 |
) |
|
Borrowings on asset-based revolving credit facility |
|
605 |
|
|
|
235 |
|
|
Repayments on asset-based revolving credit facility |
|
(785 |
) |
|
|
(120 |
) |
|
Issuance of long-term debt |
|
750 |
|
|
|
— |
|
|
Repayments of long-term debt |
|
(11 |
) |
|
|
(8 |
) |
|
Debt issuance costs |
|
(14 |
) |
|
|
— |
|
|
Other |
|
(2 |
) |
|
|
1 |
|
|
Net cash provided by (used in) financing activities |
|
504 |
|
|
|
(395 |
) |
|
Increase (decrease) in cash and cash equivalents |
|
12 |
|
|
|
(157 |
) |
|
Cash and cash equivalents at the beginning of the period |
|
1 |
|
|
|
177 |
|
|
Cash and cash equivalents at the end of the period |
$ |
13 |
|
|
$ |
20 |
|
|
|
|
|
|
|||||
Cash paid for interest (excluding effects of interest rate swap) |
$ |
95 |
|
|
$ |
59 |
|
|
Cash paid for taxes |
|
84 |
|
|
|
61 |
|
Non-GAAP Financial Measures
In addition to providing results that are determined in accordance with accounting principles generally accepted in
We define EBITDA as net income or net income attributable to Core & Main, Inc., as applicable, adjusted for non-controlling interests, depreciation and amortization, provision for income taxes and interest expense. We define Adjusted EBITDA as EBITDA as further adjusted for certain items management believes are not reflective of the underlying operations of our business, including but not limited to (a) loss on debt modification and extinguishment, (b) equity-based compensation, (c) expenses associated with the public offerings and (d) expenses associated with acquisition activities. Net income attributable to Core & Main, Inc. is the most directly comparable GAAP measure to EBITDA and Adjusted EBITDA. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net sales. We define Operating Cash Flow Conversion as net cash provided by (used in) operating activities divided by Adjusted EBITDA for the period presented. We define Net Debt Leverage as total consolidated debt (gross of unamortized discounts and debt issuance costs), net of cash and cash equivalents, divided by Adjusted EBITDA for the last twelve months.
We use EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Operating Cash Flow Conversion and Net Debt Leverage to assess the operating results and effectiveness and efficiency of our business. Adjusted EBITDA includes amounts otherwise attributable to non-controlling interests as we manage the consolidated company and evaluate operating performance in a similar manner. We present these non-GAAP financial measures because we believe that investors consider them to be important supplemental measures of performance, and we believe that these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Non-GAAP financial measures as reported by us may not be comparable to similarly titled metrics reported by other companies and may not be calculated in the same manner. These measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. For example, EBITDA and Adjusted EBITDA:
- do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on debt;
- do not reflect income tax expenses, the cash requirements to pay taxes or related distributions;
- do not reflect cash requirements to replace in the future any assets being depreciated and amortized; and
- exclude certain transactions or expenses as allowed by the various agreements governing our indebtedness.
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Operating Cash Flow Conversion and Net Debt Leverage are not alternative measures of financial performance or liquidity under GAAP and therefore should be considered in conjunction with net income, net income attributable to Core & Main, Inc. and other performance measures such as gross profit or net cash provided by or used in operating, investing or financing activities and not as alternatives to such GAAP measures. In evaluating Adjusted EBITDA, you should be aware that, in the future, we may incur expenses similar to those eliminated in this presentation.
No reconciliation of the estimated range for Adjusted EBITDA, Adjusted EBITDA margin or Operating Cash Flow Conversion for fiscal 2024 is included herein because we are unable to quantify certain amounts that would be required to be included in net income attributable to Core & Main, Inc. or cash provided by or used in operating activities, the most directly comparable GAAP measures, without unreasonable efforts due to the high variability and difficulty to predict certain items excluded from Adjusted EBITDA. Consequently, we believe such reconciliation would imply a degree of precision that would be misleading to investors. In particular, the effects of acquisition expenses cannot be reasonably predicted in light of the inherent difficulty in quantifying such items on a forward-looking basis. We expect the variability of these excluded items may have an unpredictable, and potentially significant, impact on our future GAAP financial results.
The following table sets forth a reconciliation of net income or net income attributable to Core & Main, Inc. to EBITDA and Adjusted EBITDA for the periods presented, as well as a calculation of Adjusted EBITDA margin for the periods presented:
(Amounts in millions) |
Three Months Ended |
|
Six Months Ended |
||||||||
|
July 28, 2024 |
|
July 30, 2023 |
|
July 28, 2024 |
|
July 30, 2023 |
||||
Net income attributable to Core & Main, Inc. |
$ |
119 |
|
$ |
110 |
|
$ |
214 |
|
$ |
196 |
Plus: net income attributable to non-controlling interest |
|
7 |
|
|
54 |
|
|
13 |
|
|
101 |
Net income |
|
126 |
|
|
164 |
|
|
227 |
|
|
297 |
Depreciation and amortization (1) |
|
47 |
|
|
37 |
|
|
91 |
|
|
73 |
Provision for income taxes |
|
42 |
|
|
40 |
|
|
75 |
|
|
71 |
Interest expense |
|
36 |
|
|
22 |
|
|
70 |
|
|
39 |
EBITDA |
$ |
251 |
|
$ |
263 |
|
$ |
463 |
|
$ |
480 |
Equity-based compensation |
|
4 |
|
|
3 |
|
|
7 |
|
|
5 |
Acquisition expenses (2) |
|
2 |
|
|
3 |
|
|
4 |
|
|
3 |
Offering expenses (3) |
|
— |
|
|
1 |
|
|
— |
|
|
2 |
Adjusted EBITDA |
$ |
257 |
|
$ |
270 |
|
$ |
474 |
|
$ |
490 |
(Amounts in millions) |
|
Twelve Months Ended |
||||
|
|
July 28, 2024 |
|
July 30, 2023 |
||
Net income attributable to Core & Main, Inc. |
|
$ |
389 |
|
$ |
361 |
Plus: net income attributable to non-controlling interest |
|
|
72 |
|
|
198 |
Net income |
|
|
461 |
|
|
559 |
Depreciation and amortization (1) |
|
|
167 |
|
|
146 |
Provision for income taxes |
|
|
132 |
|
|
131 |
Interest expense |
|
|
112 |
|
|
75 |
EBITDA |
|
$ |
872 |
|
$ |
911 |
Equity-based compensation |
|
|
12 |
|
|
9 |
Acquisition expenses (2) |
|
|
7 |
|
|
6 |
Offering expenses (3) |
|
|
3 |
|
|
3 |
Adjusted EBITDA |
|
$ |
894 |
|
$ |
929 |
(1) |
Includes depreciation of certain assets which are reflected in “cost of sales” in our Statement of Operations. |
|
|
|
|
(2) |
Represents expenses associated with acquisition activities, including transaction costs, post-acquisition employee retention bonuses, severance payments and expense recognition of purchase accounting fair value adjustments (excluding amortization). |
|
|
|
|
(3) |
Represents costs related to secondary offerings reflected in SG&A expenses in our Statement of Operations. |
The following table sets forth a calculation of Net Debt Leverage for the periods presented:
(Amounts in millions) |
|
As of |
||||||
|
|
July 28, 2024 |
|
July 30, 2023 |
||||
Senior ABL Credit Facility due February 2029 |
|
$ |
250 |
|
|
$ |
115 |
|
Senior Term Loan due July 2028 |
|
|
1,455 |
|
|
|
1,470 |
|
Senior Term Loan due February 2031 |
|
|
747 |
|
|
|
— |
|
Total Debt |
|
$ |
2,452 |
|
|
$ |
1,585 |
|
Less: Cash & Cash Equivalents |
|
|
(13 |
) |
|
|
(20 |
) |
Net Debt |
|
$ |
2,439 |
|
|
$ |
1,565 |
|
Twelve Months Ended Adjusted EBITDA |
|
|
894 |
|
|
|
929 |
|
Net Debt Leverage |
|
2.7 x |
|
1.7 x |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240903029981/en/
Investor Relations:
Robyn Bradbury, 314-995-9116
InvestorRelations@CoreandMain.com
Source: Core & Main, Inc.
FAQ
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