Slide 1: First Quarter 2024 Earnings Presentation
First Quarter 2024 Earnings Presentation First Quarter 2024 Earnings| 1
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements that involve risks and uncertainties and are generally identifiable through the use of words such as “anticipate,” “estimate,” “expect,” “intend,” “believe,” “will likely result,” “outlook,” “project,” “may,” “can,” “plan,”
Slide 3: Q1 2024 Results at a glance
Q1 2024 Results at a glance ($ in millions) Net Sales Gross Profit1 $1,120.8 $338.6 -7% vs Q1 2023 -8% vs Q1 2023 Gross Margin1 30.2% -40 bps vs Q1 2023 Operating Income1 Diluted EPS (GAAP)1 $108.7 $2.04 -25% vs Q1 2023 -21% vs Q1 2023 Operating Margin 1 Diluted EPS1 (excluding ASU) 9.7% $1.85 -240
Slide 4: Quarterly Activity
QUARTERLY ACTIVITY 4% $1.3B 4% Q1 2024 Sales Q1 2024 Gross Margin 31.6% Import Inflation $1.2B Tax Supply 2% 2% Chain 2% $1.2B 30.6% 0% 0% -1% -1% $1.1B -2% -2% -3% Commodity Horizon & Product Customer Customer 29.6% Pricing Europe -2% $1.1B -2% Mix Mix Pricing Reno. Selected Inv. Avg. $1.2B 1 Marke
Slide 5: Quarterly Financial Trends
QUARTERLY FINANCIAL TRENDS Net Sales & Y/Y Sales Change % Gross Profit & Gross Margin ($ in millions) ($ in millions) $2,400 $720 32.4% 15% 30.6% $2,000 -10% $600 31.2% 14% 31.7% $1,600 33% -9% $480 29.1% 30.6% 1 6% -15% -7% 2 30.2% $1,200 -8% $360 28.8% 29.3% $800 $240 $400 $120 $0 $0 Q1 Q2 Q3 Q4 Q
Slide 6: Balance Sheet, Cash Flow & Capital Allocation
BALANCE SHEET, CASH FLOW & CAPITAL ALLOCATION Q1 2024 Capital Allocation ($ in millions) Cash Flow from Operating Share Repurchases Dividends Inventory Activities $16.3 $190M Decrease $145M +41% vs. Q1 2023 vs. Q1 2023 Acquisitions $1.3 Debt 1.4x Debt/EBITDA $42.3 $387M Decrease vs. 1.5x Q1 2023 vs.
Slide 7: 2024 Expectations
2024 EXPECTATIONS 2024 Earnings Driver 2024 Expected Range Net Sales Flat to slightly up Inflation + 2% to 3% Maintenance from installed base Flat New construction Flat to down 10% Renovation and remodel Flat to down 10% Gross margin Approximately 30.0% Operating margin Approximately 13.0% GAAP dilu
Slide 8: Appendix
Appendix First Quarter 2024 Earnings| 8
Slide 9: Appendix: Reconciliations of non-GAAP financial measures
APPENDIX Reconciliations of non-GAAP financial measures Three Months Ended March 31, March 31, Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS 2024 2023 Reported Diluted EPS $ 2.04 $ 2.58 Less: Per diluted share effect of application of ASU 2016-09, Improvements to Employee Share-Base