Core & Main Announces Fiscal 2024 Fourth Quarter and Full-Year Results
Core & Main (NYSE: CNM) reported its fiscal 2024 Q4 and full-year results, showing mixed performance. Q4 net sales increased 17.9% to $1,698 million, while gross profit rose 17.4% to $451 million. However, Q4 net income decreased 11.8% to $67 million.
For fiscal 2024, the company achieved net sales growth of 11.0% to $7,441 million, though net income declined 18.3% to $434 million. The company maintained a gross profit margin of 26.6% and reported Adjusted EBITDA growth of 2.2% to $930 million.
Key operational highlights include completing ten acquisitions, repurchasing $176 million of shares, and generating $621 million in operating cash flow. For fiscal 2025, Core & Main projects net sales of $7,600-$7,800 million and Adjusted EBITDA of $950-$1,000 million.
The company also announced leadership changes effective March 31, 2025, with CEO Steve LeClair transitioning to executive chair, CFO Mark Witkowski becoming CEO, and Robyn Bradbury assuming the CFO role.
Core & Main (NYSE: CNM) ha riportato i risultati del quarto trimestre e dell'intero anno fiscale 2024, mostrando una performance mista. Le vendite nette del quarto trimestre sono aumentate del 17,9% a $1.698 milioni, mentre il profitto lordo è salito del 17,4% a $451 milioni. Tuttavia, l'utile netto del quarto trimestre è diminuito dell'11,8% a $67 milioni.
Per l'anno fiscale 2024, l'azienda ha raggiunto una crescita delle vendite nette dell'11,0% a $7.441 milioni, sebbene l'utile netto sia calato del 18,3% a $434 milioni. L'azienda ha mantenuto un margine di profitto lordo del 26,6% e ha riportato una crescita dell'EBITDA rettificato del 2,2% a $930 milioni.
I principali punti operativi includono il completamento di dieci acquisizioni, il riacquisto di azioni per $176 milioni e la generazione di $621 milioni in flusso di cassa operativo. Per l'anno fiscale 2025, Core & Main prevede vendite nette di $7.600-$7.800 milioni e un EBITDA rettificato di $950-$1.000 milioni.
L'azienda ha anche annunciato cambiamenti nella leadership con effetto dal 31 marzo 2025, con il CEO Steve LeClair che passerà a presidente esecutivo, il CFO Mark Witkowski che diventerà CEO e Robyn Bradbury che assumerà il ruolo di CFO.
Core & Main (NYSE: CNM) informó sus resultados del cuarto trimestre y del año fiscal 2024, mostrando un desempeño mixto. Las ventas netas del cuarto trimestre aumentaron un 17,9% a $1,698 millones, mientras que el beneficio bruto subió un 17,4% a $451 millones. Sin embargo, el ingreso neto del cuarto trimestre disminuyó un 11,8% a $67 millones.
Para el año fiscal 2024, la compañía logró un crecimiento de ventas netas del 11,0% a $7,441 millones, aunque el ingreso neto cayó un 18,3% a $434 millones. La empresa mantuvo un margen de beneficio bruto del 26,6% y reportó un crecimiento de EBITDA ajustado del 2,2% a $930 millones.
Los aspectos operativos clave incluyen la finalización de diez adquisiciones, la recompra de acciones por $176 millones y la generación de $621 millones en flujo de efectivo operativo. Para el año fiscal 2025, Core & Main proyecta ventas netas de $7,600-$7,800 millones y EBITDA ajustado de $950-$1,000 millones.
La empresa también anunció cambios en el liderazgo con efecto a partir del 31 de marzo de 2025, con el CEO Steve LeClair pasando a presidente ejecutivo, el CFO Mark Witkowski convirtiéndose en CEO y Robyn Bradbury asumiendo el rol de CFO.
Core & Main (NYSE: CNM)은 2024 회계연도 4분기 및 연간 실적을 발표하며 혼합된 성과를 보였습니다. 4분기 순매출은 17.9% 증가하여 16억 9,800만 달러에 달했으며, 총 이익은 17.4% 증가하여 4억 5,100만 달러에 이르렀습니다. 그러나 4분기 순이익은 11.8% 감소하여 6,700만 달러를 기록했습니다.
2024 회계연도 동안 회사는 순매출이 11.0% 증가하여 74억 4,100만 달러에 달했습니다, 하지만 순이익은 18.3% 감소하여 4억 3,400만 달러에 그쳤습니다. 회사는 26.6%의 총 이익률을 유지하며 조정 EBITDA는 2.2% 증가하여 9억 3,000만 달러에 달했습니다.
주요 운영 하이라이트로는 10건의 인수 완료, 1억 7,600만 달러의 자사주 매입, 그리고 6억 2,100만 달러의 운영 현금 흐름 생성이 포함됩니다. 2025 회계연도에 대해 Core & Main은 76억~78억 달러의 순매출과 95억~100억 달러의 조정 EBITDA를 예상합니다.
회사는 또한 2025년 3월 31일부터 효력이 발생하는 리더십 변경을 발표했습니다. CEO Steve LeClair는 집행 의장으로 전환하고, CFO Mark Witkowski는 CEO가 되며, Robyn Bradbury는 CFO 역할을 맡게 됩니다.
Core & Main (NYSE: CNM) a publié ses résultats du quatrième trimestre et de l'exercice fiscal 2024, affichant des performances mitigées. Les ventes nettes du quatrième trimestre ont augmenté de 17,9% pour atteindre 1,698 milliard de dollars, tandis que le bénéfice brut a progressé de 17,4% pour atteindre 451 millions de dollars. Cependant, le bénéfice net du quatrième trimestre a diminué de 11,8% pour s'établir à 67 millions de dollars.
Pour l'exercice fiscal 2024, l'entreprise a réalisé une croissance des ventes nettes de 11,0% pour atteindre 7,441 milliards de dollars, bien que le bénéfice net ait chuté de 18,3% pour s'établir à 434 millions de dollars. L'entreprise a maintenu une marge brute de 26,6% et a enregistré une croissance de l'EBITDA ajusté de 2,2% pour atteindre 930 millions de dollars.
Les points opérationnels clés incluent la réalisation de dix acquisitions, le rachat d'actions pour 176 millions de dollars et la génération de 621 millions de dollars de flux de trésorerie opérationnel. Pour l'exercice fiscal 2025, Core & Main prévoit des ventes nettes de 7,600 à 7,800 millions de dollars et un EBITDA ajusté de 950 à 1,000 millions de dollars.
L'entreprise a également annoncé des changements de direction prenant effet le 31 mars 2025, avec le PDG Steve LeClair passant à président exécutif, le CFO Mark Witkowski devenant PDG et Robyn Bradbury assumant le rôle de CFO.
Core & Main (NYSE: CNM) hat die Ergebnisse für das vierte Quartal und das gesamte Geschäftsjahr 2024 veröffentlicht, die eine gemischte Leistung zeigen. Die Nettoumsätze im vierten Quartal stiegen um 17,9% auf 1.698 Millionen Dollar, während der Bruttogewinn um 17,4% auf 451 Millionen Dollar anstieg. Allerdings sank der Nettogewinn im vierten Quartal um 11,8% auf 67 Millionen Dollar.
Für das Geschäftsjahr 2024 erzielte das Unternehmen ein Wachstum der Nettoumsätze von 11,0% auf 7.441 Millionen Dollar, obwohl der Nettogewinn um 18,3% auf 434 Millionen Dollar zurückging. Das Unternehmen hielt eine Bruttogewinnmarge von 26,6% und berichtete über ein Wachstum des bereinigten EBITDA von 2,2% auf 930 Millionen Dollar.
Zu den wichtigsten operativen Höhepunkten gehören der Abschluss von zehn Akquisitionen, der Rückkauf von Aktien im Wert von 176 Millionen Dollar und die Generierung von 621 Millionen Dollar an operativem Cashflow. Für das Geschäftsjahr 2025 prognostiziert Core & Main Nettoumsätze von 7.600 bis 7.800 Millionen Dollar und ein bereinigtes EBITDA von 950 bis 1.000 Millionen Dollar.
Das Unternehmen gab auch Führungswechsel bekannt, die am 31. März 2025 in Kraft treten werden, wobei CEO Steve LeClair zum Executive Chair wechselt, CFO Mark Witkowski CEO wird und Robyn Bradbury die CFO-Rolle übernimmt.
- Completed 10 strategic acquisitions to expand geographic presence and product lines
- Q4 net sales increased 17.9% to $1,698 million
- Full-year net sales grew 11.0% to $7,441 million
- Adjusted EBITDA increased 11.9% to $179 million in Q4
- Strong cash flow generation of $621 million from operations
- Q4 net income decreased 11.8% to $67 million
- Full-year net income declined 18.3% to $434 million
- Gross profit margin decreased from 27.1% to 26.6% for full year
- SG&A expenses increased 15.8% to $1,078 million
- Net debt increased to $2,275 million from $1,892 million
Insights
Core & Main's fiscal 2024 results present a mixed financial picture with strong top-line performance but compressed profitability. The company delivered 17.9% Q4 revenue growth to
Despite the impressive sales trajectory, bottom-line results tell a different story. Net income declined 18.3% for the full year and 11.8% in Q4, primarily due to increased interest expenses from acquisition-related borrowing and higher SG&A expenses growing faster than revenues. This cost structure pressure resulted in a 50 basis point gross margin contraction for the full year.
The company's acquisition-heavy growth strategy (completing 10 deals) continues to drive expansion but comes with integration challenges and increased leverage, with net debt rising to
Management's outlook for fiscal 2025 targets 2-5% revenue growth (or 4-7% on an average daily sales basis, accounting for the 53rd week in fiscal 2024) and Adjusted EBITDA of
Core & Main's investment thesis remains intact with its dominant position in water infrastructure, but investors should monitor whether acquisition synergies and margin initiatives can overcome interest burden and SG&A growth to restore earnings growth.
Fiscal 2024 Fourth Quarter Results (Compared with Fiscal 2023 Fourth Quarter)
-
Net sales increased
17.9% to$1,698 million -
Gross profit increased
17.4% to ; gross profit margin of$451 million 26.6% -
Net income decreased
11.8% to$67 million -
Diluted earnings decreased
2.9% to$0.33 -
Adjusted EBITDA (Non-GAAP) increased
11.9% to$179 million -
Net cash provided by operating activities of
$235 million
Fiscal 2024 Results (Compared with Fiscal 2023)
-
Net sales increased
11.0% to$7,441 million -
Gross profit increased
8.9% to ; gross profit margin of$1,980 million 26.6% -
Net income decreased
18.3% to$434 million -
Diluted earnings per share decreased
0.9% to$2.13 -
Adjusted EBITDA (Non-GAAP) increased
2.2% to$930 million -
Net cash provided by operating activities of
$621 million -
Repurchased
of shares at an average per share price of approximately$176 million $44.31
"Our teams across the country executed at a high level in the fourth quarter, delivering our fifteenth consecutive year of positive sales growth," said Steve LeClair, chair and CEO of Core & Main.
"These consistently strong results are driven by our balanced business mix, the investments we have made to support and execute our growth strategy, and the expertise and dedication of our associates. With growing demand for innovative water infrastructure solutions, we continue to add new products, branches and capabilities to strengthen our leadership position in the industry. We also completed ten acquisitions to expand our presence in important geographies, gain access to new product lines and add key talent. Our strong cash flow generation and flexible balance sheet allow us to invest in organic growth and consolidate our fragmented markets through acquisitions, while returning capital to shareholders.
I am confident in our outlook for fiscal 2025 as the team continues to execute our sales strategies and improve operating leverage across our business. We will continue delivering exceptional service to our customers and pursue growth through attractive product categories and end markets, while investing capital and resources into the business to drive profitable growth over the long-term."
Three Months Ended February 2, 2025
Net sales for the three months ended February 2, 2025 increased
Gross profit for the three months ended February 2, 2025 increased
Selling, general and administrative (“SG&A”) expenses for the three months ended February 2, 2025 increased
Operating income for the three months ended February 2, 2025 increased
Net income for the three months ended February 2, 2025 decreased
The Class A common stock basic earnings per share for the three months ended February 2, 2025 decreased
Adjusted EBITDA for the three months ended February 2, 2025 increased
Fiscal Year Ended February 2, 2025
Net sales for fiscal 2024 increased
Gross profit for fiscal 2024 increased
SG&A expenses for fiscal 2024 increased
Operating income for fiscal 2024 decreased
Net income for fiscal 2024 decreased
The Class A common stock basic earnings per share for fiscal 2024 decreased
Adjusted EBITDA for fiscal 2024 increased
Liquidity and Capital Resources
Net cash provided by operating activities decreased by
Net debt, calculated as gross consolidated debt net of cash and cash equivalents, as February 2, 2025 was
As of February 2, 2025, we had
On December 17, 2024, we amended the terms of the
Fiscal 2025 Outlook
Core & Main provides the following guidance for fiscal 2025, a 52-week year compared to fiscal 2024, a 53-week year.
-
Net sales of
to$7,600 $7,800 million -
Net sales growth of
2% to5% , reflecting average daily sales growth of4% to7% -
Adjusted EBITDA (Non-GAAP) of
to$950 $1,000 million -
Adjusted EBITDA margin (Non-GAAP) of
12.5% to12.8% -
Operating Cash Flow of
to$570 $650 million
"As we enter fiscal 2025, we expect overall demand in our industry to be flat to slightly positive with modest growth in municipal repair and replacement activity," said Mark Witkowski, CFO of Core & Main.
"We offer a strong value proposition to the industry and intend to deliver above market sales growth and market share gains from the execution of our product, customer and geographic expansion initiatives. After a period of normalization, we expect to drive gross margin expansion in fiscal 2025, supported by our private label, sourcing optimization and pricing initiatives.
We anticipate strong operating cash flow generation and will continue deploying capital that results in accelerated growth and value creation for our shareholders in what we expect will be another year of profitable growth for Core & Main."
Leadership Transition
As announced separately on March 25, 2025, Steve LeClair, Core & Main’s chief executive officer, will transition to the role of executive chair, where he will act as an advisor to the business, while continuing to lead the board of directors of Core & Main as chair. Mark Witkowski, Core & Main’s current chief financial officer, will succeed Steve LeClair as chief executive officer and become a member of the board. Additionally, Robyn Bradbury, Core & Main’s current senior vice president of finance and investor relations, will succeed Witkowski as chief financial officer. Each of these executives will assume their new roles on March 31, 2025.
Conference Call & Webcast Information
Core & Main will host a conference call and webcast on March 25, 2025 at 8:30 a.m. ET to discuss the company's financial results. The live 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 121316. 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 February 2, 2025 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025, 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. |
|||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||
Amounts in millions (except share and per share data) |
|||||||||||
|
|||||||||||
|
Three Months Ended |
|
Fiscal Years Ended |
||||||||
|
February 2,
|
|
January 28,
|
|
February 2,
|
|
January 28,
|
||||
|
|
|
|
|
|
|
|
||||
Net sales |
$ |
1,698 |
|
$ |
1,440 |
|
$ |
7,441 |
|
$ |
6,702 |
Cost of sales |
|
1,247 |
|
|
1,056 |
|
|
5,461 |
|
|
4,884 |
Gross profit |
|
451 |
|
|
384 |
|
|
1,980 |
|
|
1,818 |
Operating expenses: |
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
279 |
|
|
230 |
|
|
1,078 |
|
|
931 |
Depreciation and amortization |
|
48 |
|
|
38 |
|
|
183 |
|
|
147 |
Total operating expenses |
|
327 |
|
|
268 |
|
|
1,261 |
|
|
1,078 |
Operating income |
|
124 |
|
|
116 |
|
|
719 |
|
|
740 |
Interest expense |
|
36 |
|
|
22 |
|
|
142 |
|
|
81 |
Income before provision for income taxes |
|
88 |
|
|
94 |
|
|
577 |
|
|
659 |
Provision for income taxes |
|
21 |
|
|
18 |
|
|
143 |
|
|
128 |
Net income |
|
67 |
|
|
76 |
|
|
434 |
|
|
531 |
Less: net income attributable to non-controlling interests |
|
3 |
|
|
13 |
|
|
23 |
|
|
160 |
Net income attributable to Core & Main, Inc. |
$ |
64 |
|
$ |
63 |
|
$ |
411 |
|
$ |
371 |
|
|
|
|
|
|
|
|
||||
Earnings per share |
|
|
|
|
|
|
|
||||
Basic |
$ |
0.34 |
|
$ |
0.35 |
|
$ |
2.14 |
|
$ |
2.15 |
Diluted |
$ |
0.33 |
|
$ |
0.34 |
|
$ |
2.13 |
|
$ |
2.15 |
Number of shares used in computing EPS |
|
|
|
|
|
|
|
||||
Basic |
|
190,063,322 |
|
|
181,333,247 |
|
|
191,617,275 |
|
|
172,839,836 |
Diluted |
|
199,474,771 |
|
|
213,854,692 |
|
|
201,442,750 |
|
|
227,818,077 |
CORE & MAIN, INC. |
|||||
CONSOLIDATED BALANCE SHEETS |
|||||
Amounts in millions (except share and per share data) |
|||||
|
|||||
|
February 2,
|
|
January 28,
|
||
ASSETS |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
8 |
|
$ |
1 |
Receivables, net of allowance for credit losses of |
|
1,066 |
|
|
973 |
Inventories |
|
908 |
|
|
766 |
Prepaid expenses and other current assets |
|
43 |
|
|
33 |
Total current assets |
|
2,025 |
|
|
1,773 |
Property, plant and equipment, net |
|
168 |
|
|
151 |
Operating lease right-of-use assets |
|
244 |
|
|
192 |
Intangible assets, net |
|
935 |
|
|
784 |
Goodwill |
|
1,898 |
|
|
1,561 |
Deferred income taxes |
|
558 |
|
|
542 |
Other assets |
|
42 |
|
|
66 |
Total assets |
$ |
5,870 |
|
$ |
5,069 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Current liabilities: |
|
|
|
||
Current maturities of long-term debt |
$ |
24 |
|
$ |
15 |
Accounts payable |
|
562 |
|
|
504 |
Accrued compensation and benefits |
|
123 |
|
|
106 |
Current operating lease liabilities |
|
67 |
|
|
55 |
Other current liabilities |
|
90 |
|
|
94 |
Total current liabilities |
|
866 |
|
|
774 |
Long-term debt |
|
2,237 |
|
|
1,863 |
Non-current operating lease liabilities |
|
178 |
|
|
138 |
Deferred income taxes |
|
87 |
|
|
48 |
Tax receivable agreement liabilities |
|
706 |
|
|
706 |
Other liabilities |
|
22 |
|
|
16 |
Total liabilities |
|
4,096 |
|
|
3,545 |
Commitments and contingencies |
|
|
|
||
Class A common stock, par value |
|
2 |
|
|
2 |
Class B common stock, par value 7,936,061 and 9,630,186 shares issued and outstanding as of February 2, 2025 and January 28, 2024, respectively |
|
— |
|
|
— |
Additional paid-in capital |
|
1,220 |
|
|
1,214 |
Retained earnings |
|
449 |
|
|
189 |
Accumulated other comprehensive income |
|
27 |
|
|
46 |
Total stockholders’ equity attributable to Core & Main, Inc. |
|
1,698 |
|
|
1,451 |
Non-controlling interests |
|
76 |
|
|
73 |
Total stockholders’ equity |
|
1,774 |
|
|
1,524 |
Total liabilities and stockholders’ equity |
$ |
5,870 |
|
$ |
5,069 |
CORE & MAIN, INC. |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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Amounts in millions |
|||||||
|
|||||||
|
Fiscal Years Ended |
||||||
|
February 2,
|
|
January 28,
|
||||
Cash Flows From Operating Activities: |
|
|
|
||||
Net income |
$ |
434 |
|
|
$ |
531 |
|
Adjustments to reconcile net cash from operating activities: |
|
|
|
||||
Depreciation and amortization |
|
194 |
|
|
|
154 |
|
Equity-based compensation expense |
|
14 |
|
|
|
10 |
|
Deferred income tax expense |
|
13 |
|
|
|
2 |
|
Other |
|
8 |
|
|
|
5 |
|
Changes in assets and liabilities: |
|
|
|
||||
(Increase) decrease in receivables |
|
(2 |
) |
|
|
21 |
|
(Increase) decrease in inventories |
|
(36 |
) |
|
|
328 |
|
(Increase) decrease in other assets |
|
(13 |
) |
|
|
2 |
|
Increase (decrease) in accounts payable |
|
14 |
|
|
|
11 |
|
Increase (decrease) in accrued liabilities |
|
(5 |
) |
|
|
5 |
|
Net cash provided by operating activities |
|
621 |
|
|
|
1,069 |
|
Cash Flows From Investing Activities: |
|
|
|
||||
Capital expenditures |
|
(35 |
) |
|
|
(39 |
) |
Acquisitions of businesses, net of cash acquired |
|
(741 |
) |
|
|
(231 |
) |
Other |
|
(12 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(788 |
) |
|
|
(270 |
) |
Cash Flows From Financing Activities: |
|
|
|
||||
Repurchase and retirement of equity interests |
|
(176 |
) |
|
|
(1,344 |
) |
Distributions to non-controlling interest holders |
|
(11 |
) |
|
|
(41 |
) |
Payments pursuant to Tax Receivable Agreements |
|
(11 |
) |
|
|
(5 |
) |
Borrowings on asset-based revolving credit facility |
|
774 |
|
|
|
665 |
|
Repayments on asset-based revolving credit facility |
|
(1,110 |
) |
|
|
(235 |
) |
Issuance of long-term debt |
|
950 |
|
|
|
— |
|
Repayments of long-term debt |
|
(223 |
) |
|
|
(15 |
) |
Debt issuance costs |
|
(15 |
) |
|
|
— |
|
Other |
|
(4 |
) |
|
|
— |
|
Net cash provided by (used in) financing activities |
|
174 |
|
|
|
(975 |
) |
Increase (decrease) in cash and cash equivalents |
|
7 |
|
|
|
(176 |
) |
Cash and cash equivalents at the beginning of the period |
|
1 |
|
|
|
177 |
|
Cash and cash equivalents at the end of the period |
$ |
8 |
|
|
$ |
1 |
|
|
|
|
|
||||
Cash paid for interest (excluding effects of interest rate swap) |
$ |
197 |
|
|
$ |
105 |
|
Cash paid for income taxes |
|
143 |
|
|
|
116 |
|
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 initial public offering and subsequent 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 Net Debt as total consolidated debt (gross of unamortized discounts and debt issuance costs) net of cash and cash equivalents.
We use EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Net Debt 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 and Net Debt 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 or Adjusted EBITDA margin for fiscal 2025 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., the most directly comparable GAAP measure, 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:
(Amounts in millions) |
Three Months Ended |
|
Fiscal Years Ended |
||||||||
|
February 2,
|
|
January 28,
|
|
February 2,
|
|
January 28,
|
||||
Net income attributable to Core & Main, Inc. |
$ |
64 |
|
$ |
63 |
|
$ |
411 |
|
$ |
371 |
Plus: net income attributable to non-controlling interests |
|
3 |
|
|
13 |
|
|
23 |
|
|
160 |
Net income |
|
67 |
|
|
76 |
|
|
434 |
|
|
531 |
Depreciation and amortization (1) |
|
49 |
|
|
38 |
|
|
186 |
|
|
149 |
Provision for income taxes |
|
21 |
|
|
18 |
|
|
143 |
|
|
128 |
Interest expense |
|
36 |
|
|
22 |
|
|
142 |
|
|
81 |
EBITDA |
$ |
173 |
|
$ |
154 |
|
$ |
905 |
|
$ |
889 |
Equity-based compensation |
|
3 |
|
|
2 |
|
|
14 |
|
|
10 |
Acquisition expenses (2) |
|
3 |
|
|
2 |
|
|
11 |
|
|
6 |
Offering expenses (3) |
|
— |
|
|
2 |
|
|
— |
|
|
5 |
Adjusted EBITDA |
$ |
179 |
|
$ |
160 |
|
$ |
930 |
|
$ |
910 |
(1) |
Includes depreciation of certain assets which is 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, expense recognition of purchase accounting fair value adjustments (excluding amortization) and contingent consideration adjustments. |
||||||||||||
(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 for the periods presented:
(Amounts in millions) |
|
Fiscal Years Ended |
||||||
|
|
February 2,
|
|
January 28,
|
||||
Senior ABL Credit Facility due February 2029 |
|
$ |
93 |
|
|
$ |
430 |
|
Senior Term Loan due July 2028 |
|
|
1,248 |
|
|
|
1,463 |
|
Senior Term Loan due February 2031 |
|
|
942 |
|
|
|
— |
|
Total Debt |
|
$ |
2,283 |
|
|
$ |
1,893 |
|
Less: Cash & Cash Equivalents |
|
|
(8 |
) |
|
|
(1 |
) |
Net Debt |
|
$ |
2,275 |
|
|
$ |
1,892 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250324099829/en/
Investor Relations:
Robyn Bradbury, 314-995-9116
InvestorRelations@CoreandMain.com
Source: Core & Main, Inc.