Core & Main, Inc. · NYSE:CNM
Core & Main — Q3 2024 Earnings Presentation
19 slides from Core & Main's earnings presentation, Dec 3, 2024
Slide 1: Fiscal 2024 Third Quarter Results
Fiscal 2024 Third Quarter Results DECEMBER 3, 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: Q3 2024 Business Update
Q3 2024 BUSINESS UPDATE Emerging Themes End Markets & Growth & Cash Flow & in Water Operations Margin Initiatives Capital Allocation ▪ Existing water supply already ▪ Macro environment largely ▪ Product, customer and ▪ Generated robust operating stressed unchanged from Q2; end geographic expansion c
Slide 6: Driving Sustainable Growth Through M&A
DRIVING SUSTAINABLE GROWTH THROUGH M&A Completed 5 Acquisitions with Combined Annualized Net Sales of ~$150M Green Equipment HM Pipe Products GroGreen Solutions Eastcom Associates ARGCO Northeast Company Closed Closed Closed Closed Closed Status August 2024 September 2024 September 2024 October 2024
Slide 7: Our Investment Highlights
OUR INVESTMENT HIGHLIGHTS Leading position with size and scale in a highly fragmented market Strong value proposition in an industry with secular tailwinds Multiple levers to drive organic growth and margin expansion Proven ability to execute and integrate acquisitions Differentiated service offerin
Slide 8: Financial Results
Financial Results MARK WITKOWSKI
Slide 9: Q3 2024 Financial Results
Q3 2024 FINANCIAL RESULTS Driving Continued Growth & Market Share Gains Net Sales Gross Profit ($ in Millions) ($ in Millions) $2,038 $543 $1,827 +12% $494 +10% % Margin 27.0% (40 bps) 26.6% Q3'23 Q3'24 Q3'23 Q3'24 Adjusted EBITDA(1) Diluted Earnings Per Share ($ in Millions) $277 $260 $0.69 +7% $0.
Slide 10: Cash Flow & Balance Sheet
CASH FLOW & BALANCE SHEET Robust Cash Flow and Strategic Approach to Capital Allocation Operating Cash Flow Capital Structure ($ in Millions) Facility Maturity Interest Rate As of 10/27/24 (3) Senior ABL Credit Facility 2/9/29 S + 125 235 Senior Term Loan due 2028 7/27/28 S + 200 1,451 $40 ($35) Sen
Slide 11: Fiscal 2024 Outlook
FISCAL 2024 OUTLOOK Expect Notable Growth & Cash Flow Generation Metric Prior FY24 Outlook Current FY24 Outlook Considerations Net Sales $7.30B - $7.40B $7.35B - $7.45B ▪ Raising outlook primarily due to the addition of recent % Growth vs. FY23 +8.9% to +10.4% +9.7% to +11.2% acquisitions Adjusted E
Slide 12: Annual Value Creation Targets
ANNUAL VALUE CREATION TARGETS Long-Term Value Creation Targets Remain Intact +2 – 4% +2 – 4% +2 – 4% 30 – 50 bps 60 – 70% Market Volume Organic Above Growth from Adjusted Operating Growth Market Volume Acquisitions EBITDA Margin Cash Flow Growth Enhancement Conversion Fusible HDPE Treatment Greenfie
Slide 13: Appendix
Appendix
Slide 14: Core & Main Snapshot
CORE & MAIN SNAPSHOT Key Stats Market Reach $9.0B $7.2B $911M $680M 350+ ~5,500 49 60K+ ~5,000 200K+ Market Cap(1) LTM Q3’24 LTM Q3’24 LTM Q3’24 Branches Employees States Customers Suppliers SKUs Net Sales Adjusted EBITDA(2) Operating Cash Flow Market Share Product Mix 8% Pipes, Valves, & 17% Fittin
Slide 15: Product & Service Offering
PRODUCT & SERVICE OFFERING © Core & Main All Rights Reserved. Confidential and Proprietary Information. 15
Slide 16: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Significant Cash Generation with a Focus on Fueling Growth & Shareholder Returns 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 robus
Slide 17: Compounding Growth Through M&A
COMPOUNDING GROWTH THROUGH M&A Completed 10 Acquisitions YTD with Combined Annualized Net Sales of ~$620M Maximize Market Presence Drive Value Creation Leverage Entrepreneurial Culture ▪ Significant opportunity to fill existing geographies and ▪ Our size, scale and differentiated capabilities drives
Slide 18: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES ($ in Millions) Adjusted EBITDA & Adjusted EBITDA Margin Three Months Ended Nine Months Ended Twelve Months Ended Three October 27, 2024 October 29, 2023 October 27, 2024 October 29, 2023 October 27, 2024 October 29, 2023 Net income attributable to Core & Main, In
Slide 19: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES ($ in Millions) Net Debt Leverage As of October 27, 2024 October 29, 2023 Senior ABL Credit Facility due February 2029 $ 235 $ - Senior Term Loan due July 2028 1,451 1,466 Senior Term Loan due February 2031 744 - Total Debt 2,430 1,466 Less: Cash & Cash Equivalent