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Group 1 - Core & Main (NYSE: CNM) experienced a significant positive impact on its shareholders on December 3rd, indicating strong market performance [1] - The company is involved in the distribution of a vast array of products, with hundreds of thousands of SKUs available [1] Group 2 - Crude Value Insights provides an investment service focused on the oil and natural gas sector, emphasizing cash flow and the potential for value and growth [1] - Subscribers to Crude Value Insights benefit from a model account featuring over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Core Insights - Core & Main exceeded third-quarter earnings and revenue forecasts, benefiting from acquisitions [1] - The company set records for quarterly revenue and adjusted EBITDA [1] - CEO Steve LeClair highlighted the impact of five acquisitions on expanding geographic presence and product lines [1] Financial Performance - Core & Main reported third-quarter earnings per share (EPS) of $0.69, with revenue increasing 11.5% year-over-year to a record $2.04 billion [1] - Adjusted EBITDA reached an all-time high of $277 million, surpassing consensus estimates [1] - Sales gains were primarily driven by acquisitions and higher end-market volumes [1] Outlook and Guidance - Core & Main raised its fiscal 2024 guidance, projecting net sales between $7.35 billion and $7.45 billion, and adjusted EBITDA between $915 million and $935 million [2] - This is an increase from previous estimates of $7.30 billion to $7.40 billion in sales and $900 million to $930 million in adjusted EBITDA [2] - The company's shares have risen approximately 38% this year [2]

Financial Data and Key Metrics Changes - Core & Main reported record quarterly sales of over $2 billion and adjusted EBITDA of $277 million, achieving nearly 12% sales growth in Q3 2024 [7][38] - Net sales grew approximately 12% in Q3 to $2.04 billion, with acquisitions contributing about 9% of sales growth and organic volumes up mid-single digits [38][39] - Gross margins for the quarter were 26.6%, down from 27% in the prior year, but improved sequentially by 20 basis points from the second quarter [40][41] - Net income decreased to $140 million from $158 million in the prior year, primarily due to higher SG&A and interest expenses [43] - Adjusted EBITDA increased approximately 7% to $277 million, with adjusted EBITDA margins decreasing 60 basis points year-over-year to 13.6% [44] Business Line Data and Key Metrics Changes - The residential end market showed modest growth, with expectations for stronger construction activity if mortgage rates decline [14] - Municipal demand, representing over 40% of the business, demonstrated steady growth historically due to the need to replace aged water infrastructure [16] - Meter sales grew by 24% during the quarter, highlighting the success of product expansion initiatives [19] Market Data and Key Metrics Changes - The U.S. faces a growing disparity between water supply and demand, necessitating significant investments in water infrastructure [9][12] - The Infrastructure Investment & Jobs Act is expected to provide critical funding for water system improvements, with bipartisan support anticipated [12] - Municipal repair and replacement activity remains resilient, with an increase in new project starts observed [15] Company Strategy and Development Direction - Core & Main aims to leverage its extensive product and service portfolio to meet the growing demand for infrastructure upgrades [13] - The company plans to continue its disciplined approach to M&A, having completed five acquisitions during and after the quarter [23][28] - The focus remains on organic growth through geographic expansion and enhancing the private label portfolio [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stability of end markets and the positive trajectory of municipal projects funded by the Infrastructure Investment & Jobs Act [60][61] - The company raised its full-year estimates for net sales and adjusted EBITDA, expecting net sales to range from $7.35 billion to $7.45 billion [49] - Management anticipates continued organic growth of 2 to 4 points above market growth through execution of expansion initiatives [51] Other Important Information - The company generated robust operating cash flow of $260 million during the quarter, reflecting over 90% conversion from adjusted EBITDA [46] - Core & Main maintains a strong pipeline of acquisition opportunities and expects to remain acquisitive moving forward [53] - Approximately $379 million remains under the existing share repurchase authorization, with $100 million deployed for share repurchases in Q3 [48][24] Q&A Session Summary Question: Insights on municipal end market expectations - Management noted stable and modest growth in the municipal end market, with IIJA funds becoming more prominent and projects moving from planning to execution [60][61] Question: Breakdown of guidance raise - The guidance raise was primarily driven by recent acquisitions, a better-than-expected quarter, and optimism about end markets [68] Question: Factors affecting growth and margin enhancement for 2025 - Management expects a more typical year for 2025, with slightly positive end market volumes and a commitment to margin enhancement [75] Question: Impact of labor conditions and tariffs - Management indicated minimal impact from labor changes and noted that less than 15% of products are imported, viewing tariffs as neutral to positive [79] Question: Drivers of upside in Q3 performance - The quarter exceeded expectations due to improved construction cycles and the release of deferred projects from Q2 [88] Question: Pricing environment outlook for 2025 - Management anticipates a neutral pricing environment for 2025, with no significant contributors expected to impact pricing [90] Question: Contribution of water treatment initiatives to growth - Management highlighted long-term investments in water treatment capabilities, expecting continued growth in this area [104] Question: Ranking of factors behind gross margin improvement - Strategic sourcing and optimization were the primary drivers of gross margin improvement, with private label contributing as well [111] Question: Allocation of IIJA funding - Approximately one-third of the $55 billion IIJA funding for water has been allocated, with expectations for continued momentum in project bidding [125] Question: Opportunities from recent acquisitions - Recent acquisitions in utility servicing and damage prevention equipment are expected to complement existing offerings and add value for municipal customers [128]

Fiscal 2024 Third Quarter Results DECEMBER 3, 2024 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 th ...

分组1 - Core & Main reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.65 per share, and showing an increase from $0.65 per share a year ago, resulting in an earnings surprise of 6.15% [1] - The company achieved revenues of $2.04 billion for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 1.86%, and up from $1.83 billion in the same quarter last year [2] - Core & Main's stock has increased approximately 19.5% since the beginning of the year, while the S&P 500 has gained 26.8% [3] 分组2 - The earnings outlook for Core & Main is mixed, with the current consensus EPS estimate for the upcoming quarter at $0.33 on revenues of $1.61 billion, and $2.10 on revenues of $7.32 billion for the current fiscal year [7] - The Zacks Industry Rank for Manufacturing - Tools & Related Products is in the bottom 41% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Core & Main has surpassed consensus EPS estimates only once in the last four quarters, indicating variability in earnings performance [2]

Financial Performance - Net sales for the three months ended October 27, 2024, were $2,038 million, an increase from $1,827 million in the same period last year, representing a growth of 11.5%[17] - Gross profit for the nine months ended October 27, 2024, was $1,529 million, compared to $1,434 million for the same period last year, reflecting a year-over-year increase of 6.6%[17] - Operating income for the three months ended October 27, 2024, was $223 million, slightly up from $217 million in the prior year, indicating a growth of 2.8%[17] - Net income attributable to Core & Main, Inc. for the three months ended October 27, 2024, was $133 million, compared to $112 million for the same period last year, marking a 18.8% increase[17] - The total comprehensive income attributable to Core & Main, Inc. for the three months ended October 27, 2024, was $124 million, up from $109 million in the prior year, indicating a growth of 13.8%[19] - Net income for the period ending October 27, 2024, is reported at $140 million, reflecting an increase from previous periods[22] - Net income for the three months ended October 29, 2023, was $156 million, with a total of $368 million for the nine months ended October 27, 2024[58] - Net income available to Class A common stock for the nine months ended October 27, 2024, was $347 million, with a net income per share of $1.81[82] Assets and Liabilities - Total assets as of October 27, 2024, were $6,215 million, up from $5,069 million as of January 28, 2024, representing a growth of 22.6%[14] - Total liabilities increased to $4,465 million as of October 27, 2024, from $3,545 million as of January 28, 2024, reflecting a rise of 25.9%[14] - The company’s long-term debt increased to $2,384 million as of October 27, 2024, from $1,863 million as of January 28, 2024, reflecting a rise of 27.8%[14] - As of October 27, 2024, total stockholders' equity stands at $1,750 million, with common shares totaling 190,189,434[22] - The carrying amount of goodwill as of October 27, 2024, was $1.884 billion, an increase from $1.561 billion as of January 28, 2024[60] - The company's intangible assets included customer relationships valued at $1.768 billion as of October 27, 2024, with accumulated amortization of $829 million[61] Cash Flow and Capital Management - Cash and cash equivalents stood at $10 million as of October 27, 2024, compared to $1 million as of January 28, 2024, showing a significant increase[14] - Cash flows from operating activities for the nine months ended October 29, 2023, provided $775 million, a decrease from $386 million in the current period[28] - The company repurchased and retired equity interests amounting to $100 million, reflecting a strategic move to manage capital structure[22] - The company repurchased 2,890,483 shares of Class A common stock for a total of $121 million during the nine months ended October 27, 2024[32] - The company’s total consideration paid for repurchase transactions during fiscal 2023 amounted to $1,078 million[37] Acquisitions and Growth - The company completed acquisitions during the nine months ended October 27, 2024, with an aggregate transaction value of $748 million, compared to $161 million for the same period in 2023[47] - Total assets acquired in Fiscal 2024 amounted to $876 million, significantly higher than $199 million in Fiscal 2023[53] - Net assets acquired in Fiscal 2024 were $753 million, compared to $159 million in Fiscal 2023[53] - The total consideration for acquisitions in Fiscal 2024, net of cash, was $722 million, up from $151 million in Fiscal 2023[53] - Goodwill from Fiscal 2024 acquisitions was $322 million, while goodwill from Fiscal 2023 acquisitions was $17 million[60] Revenue Breakdown - The company reported revenue from pipes, valves, and fittings products of $1,386 million for the three months ended October 27, 2024, up from $1,222 million in the same period of 2023, indicating a growth of 13.4%[45] - The company’s revenue from storm drainage products increased to $327 million for the three months ended October 27, 2024, compared to $290 million in the same period of 2023, reflecting a growth of 12.8%[45] - The company’s revenue from fire protection products decreased to $145 million for the three months ended October 27, 2024, down from $170 million in the same period of 2023, a decline of 14.7%[45] - The company’s revenue from meter products increased to $180 million for the three months ended October 27, 2024, compared to $145 million in the same period of 2023, representing a growth of 24.1%[45] Debt and Interest Rates - The company's total debt as of October 27, 2024, was $2.430 billion, reflecting various long-term debt obligations[63] - Core & Main LP amended the $1,500 million 2028 Senior Term Loan, reducing the effective applicable margin from 2.60% to 2.00%[64] - The weighted average interest rate for the 2028 Senior Term Loan was 6.86% as of October 27, 2024, with a fair value of $1,449 million[64] - An additional $750 million 2031 Senior Term Loan was entered into, maturing on February 9, 2031, with a weighted average interest rate of 7.11%[64] - Each one percentage point change in interest rates would result in an approximately $22 million change in annual interest expense under the Senior Term Loan Credit Facility[161] Tax and Regulatory Matters - Core & Main LP's effective tax rate increased to 25.1% for the three months ended October 27, 2024, compared to 19.8% for the same period in 2023[71] - The company recorded payables under Tax Receivable Agreements of $721 million as of October 27, 2024, with expected payments of $19 million in the next 12 months[72] Operational Highlights - The company has approximately 350 branches across 49 states, providing specialized distribution services[30] - The Company’s largest customer accounted for less than 1% of net sales, indicating a diverse customer base[162] - The company aims to recover increases in product costs by passing them on to customers, which may affect gross profit margins[164]

Financial Performance - Net sales for Q3 2024 increased by 11.5% to $2,038 million compared to $1,827 million in Q3 2023[3] - Gross profit for Q3 2024 rose by 9.9% to $543 million, with a gross profit margin of 26.6%, up 20 basis points from Q2 2024[3] - Net income for Q3 2024 decreased by 11.4% to $140 million, primarily due to increased interest and income tax expenses[12] - Adjusted EBITDA for Q3 2024 increased by 6.5% to $277 million, with an Adjusted EBITDA margin of 13.6%[3] - Operating income for the third quarter was $223 million, compared to $217 million in the prior year, indicating stable operational performance[40] - Net income attributable to Core & Main, Inc. was $133 million, an increase from $112 million year-over-year[40] - Basic earnings per share (EPS) for the third quarter was $0.69, compared to $0.65 in the same quarter last year[40] - Core & Main reported a net income of $443 million for the twelve months ended October 27, 2024, compared to $539 million for the previous twelve months[53] Assets and Liabilities - Total current assets increased to $2,381 million from $1,773 million, driven by higher receivables and inventories[43] - Total assets as of October 27, 2024, were $6,215 million, up from $5,069 million at the end of the previous fiscal year[43] - Long-term debt increased to $2,384 million from $1,863 million, reflecting strategic financing activities[43] - Cash and cash equivalents at the end of the period were $10 million, up from $1 million at the beginning of the period[46] - Total Debt as of October 27, 2024, was $2.43 billion, up from $1.47 billion as of October 29, 2023[57] Cash Flow - Net cash provided by operating activities for Q3 2024 was $260 million, down from $373 million in Q3 2023 due to typical working capital investments[23] - The company reported a net cash provided by operating activities of $386 million for the third quarter[46] - Operating Cash Flow Conversion for the period was not specified, but it is a key metric used to assess operational efficiency[49] Expenses - SG&A expenses for Q3 2024 increased by 14.2% to $274 million, attributed to acquisitions and inflation[10] - The company incurred $10 million in acquisition expenses during the three months ended October 27, 2024[53] - Core & Main's interest expense for the three months ended October 27, 2024, was $36 million, compared to $20 million for the same period in 2023, reflecting an 80% increase[53] Future Outlook - For the full year 2024, the company expects net sales to range from $7,350 million to $7,450 million and Adjusted EBITDA to range from $915 million to $935 million[26] - The company is optimistic about its growth strategy and ability to create value for shareholders through its scale and strong balance sheet[26] - The company expects variability in excluded items from Adjusted EBITDA to potentially impact future GAAP financial results significantly[52] Acquisitions - The company completed five acquisitions during and after the quarter to enhance its market presence and product offerings[3]

Core & Main, Inc. CNM will release earnings results for the third quarter, before the opening bell on Tuesday, Dec. 3.Analysts expect Core & Main to report quarterly earnings at 66 cents per share. That's up from 52 cents per share a year ago. The Saint Louis, Missouri-based company projects to report quarterly revenue of $1.99 billion, compared to $1.83 billion a year earlier, according to data from Benzinga Pro.On Nov. 7, Core & Main said it has closed its previously announced acquisition of substantially ...

The latest trading session saw Core & Main (CNM) ending at $42.73, denoting a -1.95% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.1%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 0.06%.Heading into today, shares of the distributor of water and fire protection products had lost 1.07% over the past month, lagging the Industrial Products sector's gain of 4.85% and the S&P 500's gain of 4.37% in that time.Analysts and investors alik ...