Core & Main, Inc. · NYSE:CNM
Core & Main — Q2 FY2021 Earnings Presentation
22 slides from Core & Main's earnings presentation, Sep 14, 2021
Slide 1: Fiscal 2021 Second Quarter Financial Results
Fiscal 2021 Second Quarter Financial Results
Slide 2: Cautionary Statements
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Cautionary Statements 2 Cautionary Note Regarding Forward-Looking Statements This presentation and accompanying discussion may include “forward-looking statements” within the meaning of the Private Securities Litigation Ref
Slide 3: Today's Presenters
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Today’s Presenters 3 000 Steve LeClair Chief Executive Officer Mark Witkowski Chief Financial Officer Robyn Bradbury VP, Investor Relations and FP&A
Slide 4: Agenda
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Agenda 4 1 Company Overview & Business Update 2 Financial Highlights 3 Q&A and Closing Remarks
Slide 5: Company Overview
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Company Overview 5 Key Business Highlights(1) Branch Footprint(3) End Markets(1) 45% 37% 18% Municipal Construction Non-Residential Construction Residential Construction 55% 45% Repair & Replace New Construction Est. End Ma
Slide 6: Product & Service Offering
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Product & Service Offering 6
Slide 7: Why Core & Main
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Why Core & Main 7 Value Proposition To Suppliers ▪ Broadens sales force / geographic reach ▪ Access to fragmented customer base ▪ Highly developed understanding of the market and growth opportunities ▪ Ability to drive adop
Slide 8: Multiple Growth Drivers
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Multiple Growth Drivers 8 Multiple Levers To Drive Profitable Growth And Generate Shareholder Value ✓ Strong underlying market fundamentals ✓ Grow share locally ✓ Underpenetrated markets and product categories ✓ Accelerate
Slide 9: Proven Track Record Of Acquisitions
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Proven Track Record Of Acquisitions 9 Dedicated & Highly Experienced M&A Team Aug’17 Core & Main Separation Oct’17 Jun’18 Jul’18 Aug’18 Jan’19 Feb’19 Jul’19 Oct’19 Oct’19 Mar’20 Aug’20 Why We Succeed Robust Target Pipeline
Slide 10: Recent Acquisitions
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Recent Acquisitions 10 Geographic Expansion New Product Lines & Service Capabilities August 2021 L & M Bag and Supply Co.Pacific Pipe Co. Acquisition Date Annualized Net Sales(1) Strategic Rationale August 2021 ~$70M ~$60M
Slide 11: ESG Characteristics
© Core & Main All Rights Reserved. Confidential and Proprietary Information. ESG Characteristics 11 ▪ Ability to attract top talent and drive engagement is a competitive advantage and allows us to develop diverse industry leaders ▪ Award-winning training is woven into the fabric of our culture with
Slide 12: Second Quarter Execution Highlights
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Second Quarter Execution Highlights 12 ✓ Successfully executed an initial public offering of ~40 million shares of Class A common stock – Inclusive of the underwriters’ over-allotment option that was exercised subsequent to
Slide 13: Agenda
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Agenda 13 1 Company Overview & Business Update 2 Financial Highlights 3 Q&A and Closing Remarks
Slide 14: Second Quarter Operating Results
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Second Quarter Operating Results 14 Net Sales Gross Profit Adjusted EBITDA(1) Adjusted Net Income(1) (1) Adjusted EBITDA, Adjusted EBITDA margin and Adjusted Net Income are non-GAAP financial measures. Refer to the appendix
Slide 15: Net Debt Leverage & Liquidity
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Net Debt Leverage & Liquidity 15 Net Debt Leverage Liquidity(2) ($ in Millions) ($ in Millions) (1) Net debt leverage represents gross consolidated debt net of cash & cash equivalents divided by Adjusted EBITDA for the last
Slide 16: 2H'21 Outlook
© Core & Main All Rights Reserved. Confidential and Proprietary Information. 2H’21 Outlook 16 ✓ Growth trends expected to remain positive – End market demand remains strong supported by healthy backlog and bidding activity – Continued traction against our growth initiatives expected to drive additio
Slide 17: Agenda
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Agenda 17 1 Company Overview & Business Update 2 Financial Highlights 3 Q&A and Closing Remarks
Slide 18: Why Core & Main?
© Core & Main All Rights Reserved. Confidential and Proprietary Information. 18 Leading position with size and scale in a fragmented market1 Multiple levers for organic growth3 Proven ability to execute and integrate acquisitions4 Strong value proposition & pivotal role in shaping our industry2 Why
Slide 19: Appendix
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Appendix
Slide 20: Org Structure & Tax Receivable Agreements
© Core & Main All Rights Reserved. Confidential and Proprietary Information. Org Structure & Tax Receivable Agreements 20 Organizational Structure Tax Receivable Agreements (“TRA”) ▪ Class A & Class B common stock have the same voting rights ▪ Public ownership = 16.3% ▪ Non-controlling interests (re
Slide 21: Reconciliation of Non-GAAP Measures: Adjusted EBITDA and Adjusted Net Income
© Core & Main All Rights Reserved. Confidential and Proprietary Information. 21 Adjusted EBITDA and Adjusted EBITDA Margin Adjusted Net Income ($ in Millions) ($ in Millions) (1) Includes depreciation of certain assets which are reflected in “cost of sales” in our historical statement of operations.
Slide 22: Reconciliation of Non-GAAP Measures: Adjusted EBITDA and Net Debt Leverage
© Core & Main All Rights Reserved. Confidential and Proprietary Information. 22 Adjusted EBITDA Net Debt Leverage ($ in Millions) ($ in Millions) Reconciliation of Non-GAAP Measures May 2, 2021 Aug. 1, 2021 Net income attributable to Core & Main, Inc. $76.3 Plus: Net loss attributable to non-control