Q1 2024 Core & Main Inc Earnings Call Transcript
Key Points
- Core & Main Inc (CNM) achieved nearly 11% net sales growth in the first quarter, with organic sales growth of roughly 3% and approximately 8% added through acquisitions.
- The company reported a record $1.74 billion in revenue, driven by strong end market volumes and an earlier start to the selling season in northern geographies.
- Core & Main Inc (CNM) saw a 31% growth in metering products, highlighting their ability to drive the adoption of new products and technologies.
- The company successfully integrated five complementary businesses, including its largest acquisition to date, enhancing geographic reach and product offerings.
- Operating cash flow was strong at $78 million, reflecting effective inventory optimization efforts and a lower than normal seasonal inventory build.
- Gross margin decreased to 26.9% from 27.9% in the prior year, impacted by higher average cost of inventory and competitive pressures.
- Interest expense increased significantly to $34 million from $17 million in the prior year, primarily due to higher borrowings and increased interest rates on variable rate debt.
- Net income decreased to $101 million from $133 million in the prior year, mainly due to lower operating income and higher interest expenses.
- Diluted earnings per share decreased to $0.49 from $0.50 in the prior year, affected by a decline in net income despite a lower share count.
- Selling, general, and administrative expenses increased by approximately 15%, driven by inflation and investments in personnel to support current volumes and future growth.
Good morning, everyone, and welcome to the current need Q1 2020 14 earnings call. My name is Angela, and I'll be coordinating your call today.(Operator Instructions) I will now hand you over to your host, Robyn Brandbury, Senior Vice President of Finance and Investor Relations t o begin, please go ahead.
Thank you. Good morning, everyone. This is Robyn Bradbury, Senior Vice President of Finance and Investor Relations for Core&Main. We are excited to have you join us this morning for our fiscal 2024 first quarter earnings call. I am joined today by Steve LeClair our Chair and Chief Executive Officer, Mark Witkowski, our Chief Financial Officer. Steve will lead today's call with an overview of our first quarter execution highlights. Mark will then discuss our financial results and updated fiscal 2024 outlook, followed by a Q&A session.
We will conclude the call with his closing remarks. We issued our earnings press release this morning and posted a presentation to the Investor
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