Q2 2024 Core & Main Inc Earnings Call Transcript
Key Points
- Core & Main Inc (CNM) achieved a new quarterly record of $1.96 billion in net sales, driven by 9% growth from acquisitions.
- The company expanded its operations into Canada through the acquisition of HM Pipe Products, marking its first venture into the Canadian waterworks market.
- Core & Main Inc (CNM) saw a 48% growth in meter sales this quarter, highlighting the success of its meter initiative.
- The company has a deep and expanding pipeline of actionable M&A opportunities, contributing significantly to its top-line growth.
- Gross margins were in line with expectations, driven by solid performance of private label and sourcing initiatives, as well as synergies from M&A.
- Second quarter results were below expectations due to project delays from wet weather conditions and lower end-market volumes.
- Heavy rain and flooding impacted operations, causing significant project delays and complicating underground construction.
- Municipal volumes were slightly lower than expected, primarily due to project delays at the local level.
- Non-residential construction activity saw mixed performance, with fewer projects breaking ground and existing project start dates being pushed back.
- Adjusted EBITDA in the second quarter decreased approximately 5% to $257 million, and adjusted EBITDA margin decreased 140 basis points to 13.1%.
Hello and welcome to the Core & Main Q2 2024 Earnings Call. My name is Alex and I'll be coordinating the call today. (Operator Instructions)
I'll now hand it over to your host, Robyn Bradbury, to 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 happy to have you join us this morning for our fiscal 2024 second quarter earnings call. I am joined today by Steve LeClair, our Chair and Chief Executive Officer; Mark Witkowski, our Chief Financial Officer; and Brad Cowles, President. Steve will leave today's call with a business update and an overview of our recent acquisitions.
Brad will then discuss the evolution of our smart utility solutions and how we drive the adoption of the latest and most effective technologies to improve efficiency for our municipal customers. We will then turn it over to Mark to discuss our second quarter financial
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