Core & Main, Inc. · NYSE:CNM
Core & Main — Q1 2024 Earnings Presentation
18 slides from Core & Main's earnings presentation, Jun 4, 2024
Slide 1: Fiscal 2024 First Quarter Results
Fiscal 2024 First Quarter Results JUNE 4, 2024
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS Cautionary Note Regarding Forward-Looking Statements This presentation and accompanying discussion may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, all st
Slide 3: Today's Presenters
TODAY’S PRESENTERS Steve LeClair Mark Witkowski Robyn Bradbury Chair & CEO Chief Financial Officer SVP, Finance & Investor Relations © Core & Main All Rights Reserved. Confidential and Proprietary Information. 3
Slide 4: Business Update
Business Update STEVE LECLAIR
Slide 5: Core & Main Snapshot
CORE & MAIN SNAPSHOT Key Stats Market Reach(1) $11.5B $6.7B $910M $1.1B 350+ ~5,500 49 60K+ ~5,000 200K+ Market Cap(1) FY23 Net Sales FY23 Adjusted EBITDA(2) FY23 Operating Cash Flow Branches Employees States Customers Suppliers SKUs Market Share Product Mix 8% Pipes, Valves, & 17% Fittings 10% Stor
Slide 6: Business Update
BUSINESS UPDATE Cash Flow & End Markets Growth Initiatives Margins Capital Allocation ▪ End market demand healthy ▪ Strong execution across ▪ As expected, underlying ▪ Achieved positive operating with backlog and bidding organic growth initiatives to product margins impacted cash flow in a historica
Slide 7: Driving Sustainable Growth Through M&A
DRIVING SUSTAINABLE GROWTH THROUGH M&A Eastern Supply Dana Kepner ACF West EGW Utilities Geothermal Supply Status Closed February 2024 Closed March 2024 Closed April 2024 Closed April 2024 Closed May 2024 # of Locations 2 21 6 1 1 Arizona, Colorado, Connecticut, Oregon, Washington, Geography Virgini
Slide 8: Financial Results
Financial Results MARK WITKOWSKI
Slide 9: Q1 2024 Financial Results
Q1 2024 FINANCIAL RESULTS ($ in Millions, Except Per Share Amounts) Net Sales Gross Profit $1,741 $468 $1,574 $439 +11% +7% % Margin 27.9% (100 bps) 26.9% Q1'23 Q1'24 Q1'23 Q1'24 Adjusted EBITDA(1) Diluted Earnings Per Share $220 $217 $0.50 $0.49 (1%) (2%) % Margin(1) 14.0% (150 bps) 12.5% Q1'23 Q1'
Slide 10: Cash Flow & Balance Sheet
CASH FLOW & BALANCE SHEET ($ in Millions) Operating Cash Flow Capital Structure Q1’23 Q1’24 Δ Facility Maturity Interest Rate Q1’23 Q1’24 (1) Adjusted EBITDA $220 $217 ($3) Senior ABL Credit Facility 2/9/29 S + 125(3) $130 $241 Working Capital (52) (76) (24) Senior Term Loan due 2028 7/27/28 S + 200
Slide 11: Fiscal 2024 Outlook
FISCAL 2024 OUTLOOK Metric Outlook Considerations ▪ Narrowing sales outlook due to contribution from recent Net Sales $7.5B - $7.6B acquisitions % Growth vs. FY23 +12% to +13% ▪ Continue to expect end market volumes to grow low single- digits in FY24 Adjusted EBITDA $935M - $975M % Growth vs. FY23 +
Slide 12: Appendix
Appendix
Slide 13: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Capital Allocation Framework Organic Growth & ▪ Expect future capital expenditures to Operating Cash Flow Operational Initiatives average ~0.5% – 0.6% of net sales Target ~60 –70% of Adjusted EBITDA ▪ Maintain a robust M&A pipeline and a Priority Uses M&A disciplined app
Slide 14: Product & Service Offering
PRODUCT & SERVICE OFFERING © Core & Main All Rights Reserved. Confidential and Proprietary Information. 14
Slide 15: Compounding Growth Through M&A
COMPOUNDING GROWTH THROUGH M&A ~$1.7B of Capital Deployed on 35+ Acquisitions Since 2017 Maximize Market Presence Drive Value Creation Leverage Entrepreneurial Culture ▪ Significant opportunity to fill existing geographies ▪ Our size, scale and differentiated capabilities ▪ Successful track record o
Slide 16: Critical Investments from the Infrastructure Investment & Jobs Act
CRITICAL INVESTMENTS FROM THE INFRASTRUCTURE INVESTMENT & JOBS ACT $55B $50B $110B $25B to expand access to clean to protect against droughts, floods, to repair roads and bridges to create more modern, drinking water heat and wildfires, in addition to major and support major resilient and sustainabl
Slide 17: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES ($ in Millions) Adjusted EBITDA & Adjusted EBITDA Margin Three Months Ended Twelve Months Ended April 28, 2024 April 30, 2023 April 28, 2024 January 28, 2024 April 30, 2023 Net income attributable to Core & Main, Inc. $ 95 $ 86 $ 380 $ 371 $ 366 Plus: net income a
Slide 18: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES ($ in Millions) Net Debt Leverage As of April 28, 2024 April 30, 2023 Senior ABL Credit Facility due February 2029 $ 241 $ 130 Senior Term Loan due July 2028 1,459 1,474 Senior Term Loan due February 2031 749 - Total Debt 2,449 1,604 Less: Cash & Cash Equivalents