Core & Main Announces Preliminary Fiscal 2023 Third Quarter Results
- Core & Main Inc. expects strong net sales for the third fiscal quarter, with estimates ranging from $1,822 million to $1,832 million.
- The company's net income for the quarter is estimated to be between $153 million and $163 million.
- Adjusted EBITDA is expected to be between $257 million and $263 million.
- None.
Unaudited Preliminary Estimated Results for the Three Months Ended October 29, 2023
Set forth below are unaudited preliminary estimated financial results for the Company, based on information available to the Company as of the date of this press release. The amounts set forth below are subject to revision based upon the completion of the Company’s quarter-end financial closing process, a final review by the management, as well as the related external review of the Company’s results of operations for the three months ended October 29, 2023 and the preparation of full financial statements and related notes. The unaudited preliminary estimated financial information included in this press release has been prepared by, and is the responsibility of, the management.
PricewaterhouseCoopers LLP has not audited, reviewed, compiled or applied agreed-upon procedures with respect to the preliminary financial information. Accordingly, PricewaterhouseCoopers LLP does not express an opinion or any other form of assurance with respect thereto. The processes the Company used to produce the unaudited preliminary estimated financial information required a greater degree of estimation and assumptions than required during a typical period end closing process. During the completion of such procedures and preparation, the Company may identify additional items that require material adjustments to the unaudited preliminary estimated financial information presented below. The unaudited preliminary estimated financial information should not be considered a substitute for the financial statements for the three months ended October 29, 2023 prepared in accordance with
|
Three Months Ended |
|||||
October 29,
|
October 29,
|
October 30,
|
||||
|
Dollars in millions, unaudited |
|||||
Net sales |
|
|
|
|||
Net income |
|
|
|
|||
Adjusted EBITDA(1) |
|
|
|
|||
|
||||||
(1) Adjusted EBITDA is a non-GAAP financial measure. See below for reconciliations of these amounts to the most directly comparable GAAP financial measure. |
In addition to providing results that are determined in accordance with GAAP, the Company presents Adjusted EBITDA, which is a non-GAAP financial measure. This measure is not considered a measure of financial performance or liquidity under GAAP and the items excluded therefrom are significant components in understanding and assessing the Company’s financial performance or liquidity. This measure should not be considered in isolation or as an alternative to GAAP measures such as net income, cash provided by or used in operating, investing or financing activities or other financial statement data presented in the Company’s financial statements as an indicator of the Company’s financial performance or liquidity.
The Company defines EBITDA as net income adjusted for depreciation and amortization, provision for income taxes and interest expense. The Company defines Adjusted EBITDA as EBITDA as further adjusted for certain items management believes are not reflective of the underlying operations of the Company’s business, including (a) loss on debt modification and extinguishment, (b) equity-based compensation, (c) expenses associated with public offerings and (d) expenses associated with acquisition activities. Net income is the most directly comparable GAAP measure to Adjusted EBITDA.
The Company uses Adjusted EBITDA to assess the operating results and effectiveness and efficiency of its business. The Company presents this non-GAAP financial measure because it believes that investors consider it to be an important supplemental measure of performance, and it believes that this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in its industry. Non-GAAP financial measures as reported by the Company 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 the Company’s results as reported under GAAP. For example, Adjusted EBITDA:
- does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on debt;
- does not reflect income tax expenses, the cash requirements to pay taxes or related distributions;
- does not reflect cash requirements to replace in the future any assets being depreciated and amortized; and
- excludes certain transactions or expenses as allowed by the various agreements governing our indebtedness.
Adjusted EBITDA is not an alternative measure of financial performance or liquidity under GAAP and therefore should be considered in conjunction with net income 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, the Company may incur expenses similar to those eliminated in this presentation.
The following table sets forth a reconciliation of net income to Adjusted EBITDA for the periods presented.
|
Three Months Ended |
|||||
|
October 29,
|
October 29,
|
October 30,
|
|||
|
Dollars in millions, unaudited |
|||||
Net income |
|
|
|
|||
Depreciation and amortization (1) |
38 |
38 |
37 |
|||
Provision for income taxes |
41 |
37 |
40 |
|||
Interest expense |
20 |
20 |
16 |
|||
EBITDA |
|
|
|
|||
Equity-based compensation |
3 |
3 |
2 |
|||
Acquisition expenses(2) |
1 |
1 |
1 |
|||
Offering expenses(3) |
1 |
1 |
1 |
|||
Adjusted EBITDA |
|
|
|
|||
|
|
|
||||
(1) Includes depreciation of certain assets, which is expected to be reflected in “cost of sales” in the Company’s Statement of Operations in the unaudited condensed consolidated financial statement for the three months ended October 29, 2023.
(2) Represents expenses associated with acquisition activities, including transaction costs, post-acquisition employee retention bonuses, severance payments, expense recognition of purchase accounting fair value adjustments (excluding amortization) and contingent consideration adjustments.
(3) Represents costs related to secondary offerings. |
About Core & Main
Based in
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 include, without limitation, all matters that are not historical facts. They appear in a number of places throughout this press release and include, without limitation, statements regarding our intentions, beliefs, assumptions or current expectations concerning, among other things, the Company’s financial position, results of operations, cash flows, prospects, and growth strategies.
Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be outside the Company’s control. The Company cautions you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, the Company’s actual results of operations, financial condition and liquidity, and the development of the market in which it operates, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if the Company’s results of operations, financial condition and cash flows, and the development of the market in which it operates, 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 caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2023 and those described from time to time in the Company’s other filings with the SEC, 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 the Company 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
You should read this press release, the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2023, the Company’s Quarterly Reports on Form 10-Q for the quarterly periods ended April 30, 2023 and July 30, 2023 and the Company’s other filings with the SEC, completely and with the understanding that actual future results may be materially different from expectations. All forward-looking statements attributable to the Company or persons acting on its behalf that are made in this press release are qualified in their entirety by these cautionary statements. These forward-looking statements are made only as of the date presented, and the Company does not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, and changes in future operating results over time or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231105434201/en/
Investor Relations:
Robyn Bradbury, 314-995-9116
InvestorRelations@CoreandMain.com
Source: Core & Main, Inc.
FAQ
What are Core & Main Inc.'s estimated net sales for the third fiscal quarter?
What is the estimated net income for Core & Main Inc. in the third fiscal quarter?
What is the estimated Adjusted EBITDA for Core & Main Inc. in the third fiscal quarter?
What is Adjusted EBITDA?