In This Article:
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Revenue: Record quarterly sales of over $2 billion, a 12% increase from the previous year.
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Adjusted EBITDA: $277 million, reflecting a 7% increase year-over-year.
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Gross Margin: 26.6%, a decrease of 40 basis points from the prior year.
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Operating Cash Flow: $260 million generated during the quarter.
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Net Income: $140 million, down from $158 million in the prior year.
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Diluted Earnings Per Share: Increased by 6% to $0.69.
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SG&A Expenses: Increased 14% to $274 million.
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Interest Expense: $36 million, up from $20 million in the prior year.
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Net Debt: Approximately $2.4 billion with a net debt leverage of 2.7 times.
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Share Repurchase: $100 million deployed to repurchase and retire 2.46 million shares.
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Acquisitions: Completed five acquisitions during and after the quarter, contributing to $150 million in annualized net sales.
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Fiscal 2024 Outlook: Raised full-year net sales estimate to range from $7.35 billion to $7.45 billion and adjusted EBITDA to range from $915 million to $935 million.
Release Date: December 03, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Core & Main Inc (NYSE:CNM) achieved record quarterly sales of over $2 billion and adjusted EBITDA of $277 million, demonstrating strong performance.
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The company reported nearly 12% sales growth in the third quarter, driven by organic market share gains and disciplined M&A activities.
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Core & Main Inc (NYSE:CNM) expanded its gross margins by 20 basis points sequentially from the second quarter, showcasing successful margin enhancement initiatives.
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The company completed five acquisitions during and after the quarter, contributing approximately $150 million in annualized net sales.
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Core & Main Inc (NYSE:CNM) generated robust operating cash flow of $260 million during the quarter, reflecting a strong conversion rate from adjusted EBITDA.
Negative Points
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Gross margins for the quarter decreased by 40 basis points year-over-year, indicating some pressure on profitability.
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Interest expense increased to $36 million from $20 million in the prior year, primarily due to additional borrowings.
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Net income decreased to $140 million from $158 million in the prior year, impacted by higher SG&A and amortization expenses.
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The company faces challenges from environmental and demographic factors affecting water supply and demand, which could impact future operations.
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Core & Main Inc (NYSE:CNM) operates in a competitive market with hundreds of local and regional distributors, posing challenges to maintaining market share.