Core & Main(US:CNM)2024-12-03 12:30Financial 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]