Fiscal 2023 Third Quarter Results DECEMBER 5, 2023 CAUTIONARY 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 statements other than statements of historical or current facts relating to our intentions, beliefs, assumptions or current expectations concerning, among other things, our future results of operations and financial ...

Financial Data and Key Metrics Changes - Net sales for the third quarter were just over $1.8 billion, slightly above the prior year period, and up 30% from the third quarter of fiscal 2021 [23][28] - Gross margin was 27%, which was 50 basis points lower than last year due to inventory costs catching up with current market prices [8][17] - Adjusted EBITDA decreased approximately 5% to $260 million, with adjusted EBITDA margin decreasing 90 basis points to 14.2% [13] - Net income for the third quarter was $158 million compared to $178 million in the prior year period, primarily due to lower operating income [9] Business Line Data and Key Metrics Changes - Municipal repair and replacement activity remained stable year-over-year, while new residential lot development improved sequentially from the second quarter [3] - Nonresidential volumes began to stabilize late in the third quarter due to balanced exposure across various project types [3] - Price contribution to net sales growth was flat for the quarter, with organic volumes down low single digits [28][11] Market Data and Key Metrics Changes - The company expects municipal repair and replacement activity to remain stable year-over-year in the fourth quarter, with new residential lot development growth anticipated to improve sequentially [31] - Nonresidential volumes are expected to be flat to slightly down year-over-year, similar to the third quarter [31] Company Strategy and Development Direction - The company continues to target attractive M&A opportunities, announcing three new acquisitions after the quarter, with a total of eight acquisitions signed or closed this year, enhancing product offerings and market position [4][26] - The company aims for 2% to 4% annual net sales growth from M&A over the next several years [4][26] - Focus remains on customer service, technical expertise, productivity, and pricing execution, with significant liquidity expected to drive shareholder value through share repurchases or dividends [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to sustain margins through ongoing margin initiatives and synergies from M&A, despite expectations of gross margin normalization in the fourth quarter [11][33] - The company anticipates end market volumes to be roughly flat to up low single digits in 2024, depending on broader economic conditions [32][38] - Management noted that the IIJA funds have been slower than anticipated but are starting to see projects utilizing that funding, particularly in the upper Midwest [117] Other Important Information - The company executed share repurchases totaling $770 million so far this year, retiring 30 million shares in total [10][18] - The company opened two new greenfield locations in the third quarter, expanding product offerings in underpenetrated markets [24][36] Q&A Session Summary Question: What is the outlook for end markets in 2024? - Management expects overall end markets to be flat to low single digits, with municipal base remaining stable and potential growth in residential if mortgage rates stabilize [81][82] Question: How is the company managing inventory and cost pressures? - Management reported good progress in reducing inventory levels and optimizing sourcing, which has contributed to better margin performance than anticipated [91][96] Question: What is the company's strategy regarding M&A? - Management indicated a consistent appetite for M&A, with a robust pipeline and no significant changes in strategy despite market conditions [85][88] Question: How does the company view pricing in 2024? - Management anticipates a neutral price environment in 2024, with potential ups and downs in specific product categories [57][94] Question: What are the expectations regarding IIJA spending? - Management noted that while IIJA funds have been slow to materialize, there are signs of projects starting to utilize these funds, particularly in certain states [117]

Financial Performance - Net income for the three months ended October 29, 2023, was $158 million, a decrease of 11.2% from $178 million for the same period in 2022[54]. - Total comprehensive income attributable to Core & Main, Inc. for the three months ended October 29, 2023, was $109 million, down from $131 million in the prior year, representing a decline of 16.8%[54]. - Total net sales for the three months ended October 29, 2023, were $1.827 billion, slightly up from $1.818 billion in the same period last year, reflecting a growth of 0.5%[72]. - The company’s total comprehensive income for the nine months ended October 29, 2023, was $451 million, down from $557 million in the same period of 2022, indicating a decline of 18.9%[54]. - The Company reported net income of $158 million for the three months ended October 29, 2023, compared to $178 million for the same period in the previous year[90]. - Basic earnings per share for the three months ended October 29, 2023, was $0.65, consistent with the same period in the previous year[90]. Assets and Liabilities - Total assets increased to $5,067 million as of October 29, 2023, compared to $4,909 million on January 29, 2023, reflecting a growth of approximately 3.2%[39]. - Current assets decreased slightly to $2,171 million from $2,211 million, with cash and cash equivalents dropping from $177 million to $101 million[39]. - Total liabilities increased to $2,852 million from $2,499 million, marking a rise of approximately 14.1%[39]. - Long-term debt remained relatively stable at $1,436 million compared to $1,444 million, showing a minor decrease[39]. - As of October 29, 2023, total debt obligations amounted to $1,478 million, with a Senior Term Loan due July 2028 of $1,463 million and no amounts outstanding under the Senior ABL Credit Facility[96][97]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended October 29, 2023, was $775 million, significantly higher than $94 million for the same period in 2022[59]. - The company reported a net cash used in investing activities of $(182) million for the nine months ended October 29, 2023, compared to $(133) million in the same period last year[59]. - The company made acquisitions with an aggregate transaction value of $161 million during the nine months ended October 29, 2023, compared to $110 million in the same period of the previous year[73]. - In Fiscal 2023, the Company acquired J.W. D'Angelo Company, Inc., Foster Supply Inc., Midwest Pipe Supply Inc., UPSCO Manufacturing & Distribution Company, and Landscape & Construction Supplies, totaling a net cash outflow of $151 million[74]. Acquisitions and Goodwill - The net assets acquired in Fiscal 2023 amounted to $159 million, while the net assets acquired in Fiscal 2022 were $114 million[76]. - Goodwill associated with Fiscal 2023 acquisitions was recorded at $3 million, while Fiscal 2022 acquisitions had goodwill of $20 million[76]. - The carrying amount of the Company's goodwill as of October 29, 2023, was $1,552 million, an increase from $1,535 million at the beginning of the period[79]. - Goodwill acquired during the nine months ended October 29, 2023, was related to Fiscal 2023 Acquisitions, reflecting the excess of purchase price over the fair value of net assets acquired[93]. Market and Operational Insights - The company operates approximately 320 branches across 48 states, enhancing its market reach and service capabilities[46]. - The company is focused on expanding its product offerings, including smart meter systems and fusible HDPE piping solutions, to meet evolving market demands[46]. - The company expects increased federal infrastructure investment, particularly from the IIJA's $55 billion allocation for water infrastructure, to positively impact its business[119]. - The company experienced a decline in the residential end market due to interest rate increases, which slowed home buying and new lot development[119]. - The company is exposed to price fluctuations in product procurement, which can impact margins and overall financial performance[228]. Shareholder Activities - The company repurchased 9,377,183 shares of Class A common stock for a total consideration of $332 million during the April 2023 repurchase transaction[47]. - A secondary public offering of 14,000,000 shares of Class A common stock was completed at a price of $28.215 per share, raising significant capital for the company[47]. - The Company completed several secondary offerings in 2023, with the latest on November 9, 2023, involving 8,190,569 Partnership Interests exchanged at a price per share of $30.440[117]. - The November 2023 Secondary Offering involved the sale of 19,000,000 shares of Class A common stock at a price of $30.440 per share, raising significant capital[138]. Debt and Interest Rates - The weighted average interest rate on the Senior Term Loan Facility was 7.97% as of October 29, 2023, with a fair value of $1,461 million[96]. - Each one percentage point change in interest rates would result in an approximately $15 million change in annual interest expense on the Senior Term Loan Facility[227]. - The Company estimates $41 million of cash flow interest rate swap gains will be reclassified from accumulated other comprehensive income into earnings over the next 12 months[100]. Compliance and Governance - The Company was in compliance with all debt covenants as of October 29, 2023[97]. - The company is no longer classified as a "controlled company" under NYSE rules as of September 19, 2023, and is transitioning to meet corporate governance requirements[233]. - CD&R Investors beneficially own approximately 33.3% of the combined voting power of the company's common stock, influencing significant corporate decisions[232]. Risks and Legal Proceedings - The company is not currently involved in any material legal proceedings, although it faces inherent risks related to product liability claims[231]. - The company’s cash flows from operating activities are typically lower during the first and second fiscal quarters due to working capital investments and incentive compensation payments[120].

Core & Main, Inc. (NYSE:CNM) Q2 2023 Earnings Call Transcript September 6, 2023 8:30 AM ET Company Participants Robyn Bradbury - Vice President of Finance and Investor Relations Steve LeClair - Chief Executive Officer Mark Witkowski - Chief Financial Officer Conference Call Participants Matthew Bouley - Barclays David Manthey - Baird Brian Biros - Thompson Research Mike Dahl - RBC Capital Vivek Srivastava - Goldman Sachs Patrick Baumann - JPMorgan Anthony Pettinari - Citi David Ridley-Lane - Bank of America ...

Fiscal 2023 Second Quarter Results SEPTEMBER 6, 2023 Cautionary Note Regarding Forward-Looking Statements In addition to providing results that are determined in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), we present EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Operating Cash Flow Conversion and Net Debt Leverage, all of which are non-GAAP financial measures. These measures are not considered measures of financial performance or liquidity under GAAP and the items excluded the ...

Part II - Other Information • exposure to product liability, construction defect and warranty claims and other litigation and legal proceedings; The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | --- | --- | --- | --- | --- | |--------|--------|--------|--------|----------------------| | | | | | | | | | | | Additional Paid In | | Shares | Amount | Shares | Amount | Capital | Shareholder Ownership 3) REVENUE | --- | --- | --- | |--------------------- ...

Fiscal 2023 First Quarter Results JUNE 6, 2023 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 statements other than statements of historical or current facts relating to our intentions, beliefs, assumptions or current expectations concerning, among other things ...

Core & Main, Inc. (NYSE:CNM) Q1 2023 Earnings Conference Call June 6, 2023 8:30 AM ET Company Participants Robyn Bradbury - Vice President, Finance, and Investor Relations Steve LeClair - Chief Executive Officer Mark Witkowski - Chief Financial Officer Conference Call Participants Kathryn Thompson - Thompson Research Group Michael Dahl - RBC Capital Market Joe Ritchie - Goldman Sachs Asher Sohnen - Citigroup David Ridley-Lane - Bank of America Operator Good morning everyone and welcome to the Core & Main Fi ...

Part I [Financial Statements (unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for the three-month period ended April 30, 2023, covering key financial positions, performance, and cash flows, with accompanying notes Condensed Consolidated Balance Sheet Highlights (in millions) | Account | April 30, 2023 | January 29, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$4,929** | **$4,909** | | Total current assets | $2,166 | $2,211 | | Goodwill | $1,536 | $1,535 | | **Total Liabilities** | **$2,737** | **$2,499** | | Long-term debt | $1,571 | $1,444 | | **Total Stockholders' Equity** | **$2,192** | **$2,410** | Condensed Consolidated Statements of Operations (in millions, except per share data) | Metric | Three Months Ended April 30, 2023 | Three Months Ended May 1, 2022 | | :--- | :--- | :--- | | Net sales | $1,574 | $1,598 | | Gross profit | $439 | $421 | | Operating income | $181 | $180 | | Net income | $133 | $137 | | Net income attributable to Core & Main, Inc. | $86 | $86 | | Diluted EPS | $0.50 | $0.50 | Condensed Consolidated Statements of Cash Flows (in millions) | Activity | Three Months Ended April 30, 2023 | Three Months Ended May 1, 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $120 | $(37) | | Net cash used in investing activities | $(74) | $(11) | | Net cash (used in) provided by financing activities | $(222) | $48 | - In April 2023, the company completed the acquisition of UPSCO, Inc. for **$40 million**, with other acquisitions totaling **$32 million** during the quarter, all funded with cash[64](index=64&type=chunk)[68](index=68&type=chunk)[70](index=70&type=chunk) - Concurrently with a secondary offering in April 2023, the company repurchased **9.4 million shares** of Class A common stock and **5.6 million shares** of Class B common stock for a total consideration of **$332 million**[34](index=34&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's first-quarter fiscal 2023 financial performance, highlighting a slight decrease in net sales offset by improved gross profit margins and a strong liquidity position Q1 2023 vs Q1 2022 Performance Summary (in millions) | Metric | Q1 2023 | Q1 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $1,574 | $1,598 | $(24) | (1.5)% | | Gross Profit | $439 | $421 | $18 | 4.3% | | Operating Income | $181 | $180 | $1 | 0.6% | | Net Income | $133 | $137 | $(4) | (2.9)% | | Adjusted EBITDA | $220 | $219 | $1 | 0.5% | - Net sales experienced a **1.5% decrease** primarily due to reduced residential lot development and seasonality, partially offset by higher selling prices and acquisitions, while meter product sales grew **8.4%** due to smart meter adoption[106](index=106&type=chunk)[107](index=107&type=chunk) - Gross profit margin improved to **27.9%** from **26.3%** in the prior-year period, driven by strategic inventory investments, gross margin initiatives, and accretive acquisitions[109](index=109&type=chunk) - Operating cash flow significantly improved to **$120 million** provided by operations, compared to **$37 million** used in the prior year, primarily due to a smaller inventory investment as product lead times became more predictable[122](index=122&type=chunk) - As of April 30, 2023, the company held **$1 million** in cash and approximately **$1,108 million** available under its Senior ABL Credit Facility, ensuring sufficient liquidity for at least the next 12 months[118](index=118&type=chunk)[120](index=120&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section outlines the company's exposure to market risks, primarily interest rate, credit, and price risks, and the strategies employed to mitigate them - The company is exposed to interest rate risk with **$1,604 million** in variable-rate debt as of April 30, 2023, where a one percentage point change in interest rates would alter annual interest expense by approximately **$15 million**, excluding swap impacts[141](index=141&type=chunk) - Credit risk is mitigated by a diverse customer base, with the 50 largest customers contributing only about **12%** of net sales in fiscal 2022[142](index=142&type=chunk) - The company manages price risk from product cost fluctuations through purchasing economies, inventory management, and passing cost increases to customers[143](index=143&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of April 30, 2023, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of the end of the reporting period[144](index=144&type=chunk) - No material changes occurred in the company's internal control over financial reporting during the fiscal quarter[146](index=146&type=chunk) Part II [Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings, though it is involved in ordinary course litigation, including product liability claims - The company is **not currently party to any material legal proceedings** but is subject to ordinary course litigation, including personal injury, workers' compensation, and product liability claims[150](index=150&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) This section indicates that there have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended January 29, 2023 - There have been **no material changes** from the risk factors disclosed in the company's Fiscal 2022 Annual Report on Form 10-K[151](index=151&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities and details repurchases of Class A common stock during the quarter, including a significant repurchase transaction in April 2023 Issuer Purchases of Equity Securities (Q1 2023) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 30 - Feb 28 | 19,110 | $23.02 | | Mar 1 - Mar 31 | 18,784 | $21.49 | | Apr 1 - Apr 30 | 9,384,946 | $22.15 | | **Total** | **9,422,840** | **$22.15** | - Repurchases included **9,377,183 shares** of Class A common stock at **$22.151 per share** on April 14, 2023, as part of the Repurchase Transaction, which also involved repurchasing **5,622,817 shares** of Class B common stock for no additional consideration[154](index=154&type=chunk) [Defaults Upon Senior Securities](index=35&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports that there were no defaults upon its senior securities during the period - There were no defaults upon senior securities during the period[155](index=155&type=chunk) [Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - This item is not applicable to the company's operations[156](index=156&type=chunk) [Other Information](index=36&type=section&id=Item%205.%20Other%20Information) The company reports no other information required to be disclosed under this item for the period - No other information is required to be disclosed under this item for the period[157](index=157&type=chunk) [Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Purchase and Redemption Agreement, CEO/CFO certifications, and Inline XBRL documents - A list of exhibits filed with the report is provided, including the Purchase and Redemption Agreement, CEO/CFO certifications, and XBRL data files[158](index=158&type=chunk)

Core & Main, Inc. (NYSE:CNM) Q4 2022 Earnings Conference Call March 28, 2023 8:30 AM ET Company Participants Robyn Bradbury - Vice President, Finance, and Investor Relations Steve LeClair - Chief Executive Officer Mark Witkowski - Chief Financial Officer Conference Call Participants Jamie Cook - Credit Suisse Kathryn Thompson - Thompson Research Mike Dahl - RBC Capital Markets Dave Manthey - Baird Nigel Coe - Wolfe Research Vivek Srivastava - Goldman Sachs Asher Sohnen - Citi Elizabeth Langan - Barclays Pat ...