Core & Main Announces Record Fiscal 2025 First Quarter Results
Fiscal 2025 First Quarter Results (Compared with Fiscal 2024 First Quarter)
-
Net sales increased
9.8% to$1,911 million -
Gross profit increased
9.0% to$510 million 26.7% -
Net income increased
4.0% to$105 million -
Diluted earnings per share increased
6.1% to$0.52 -
Adjusted EBITDA (Non-GAAP) increased
3.2% to$224 million -
Net cash provided by operating activities of
$77 million -
Repurchased
$39 million $46.64
“We are proud to report another quarter of record performance that showcases the resilience of our end markets and the strength of our business model,” said Mark Witkowski, CEO of Core & Main.
“Our associates executed exceptionally well, generating continued market outperformance with a sequential step up in volume growth from last quarter. We were particularly pleased with our gross margin performance in the first quarter, as we continued to deliver on the value of our initiatives to achieve sequential margin expansion.
With a broad range of products and services, Core & Main is uniquely positioned to capture the benefits of investments needed to address aging water infrastructure across the
Three Months Ended May 4, 2025
Net sales for the three months ended May 4, 2025 increased
Gross profit for the three months ended May 4, 2025 increased
Selling, general and administrative ("SG&A") expenses for the three months ended May 4, 2025 increased
Operating income for the three months ended May 4, 2025 increased
Net income for the three months ended May 4, 2025 increased
The Class A common stock basic earnings per share for the three months ended May 4, 2025 increased
Adjusted EBITDA for the three months ended May 4, 2025 increased
Liquidity and Capital Resources
Net cash provided by operating activities was
Net Debt, calculated as gross consolidated debt net of cash and cash equivalents, as of May 4, 2025 was
As of May 4, 2025, we had
Fiscal 2025 Outlook
Core & Main reaffirms its full-year outlook issued in March for fiscal 2025, a 52-week year compared to fiscal 2024, a 53-week year.
-
Net sales of
$7,600 $7,800 million -
Net sales growth of
2% to5% , reflecting average daily sales growth of4% to7% -
Adjusted EBITDA (Non-GAAP) of
$950 $1,000 million -
Adjusted EBITDA margin (Non-GAAP) of
12.5% to12.8% -
Operating Cash Flow of
$570 $650 million
Conference Call & Webcast Information
Core & Main will host a conference call and webcast on June 10, 2025 at 8:30 a.m. ET to discuss the company's financial results. The live webcast will be accessible via the events calendar at ir.coreandmain.com. The conference call may also be accessed by dialing 833-470-1428 or +1-404-975-4839 (international). The passcode for the call is 528579. To ensure participants are connected for the full call, please dial in at least 10 minutes prior to the start of the call.
An archived version of the webcast will be available immediately following the call. A slide presentation highlighting Core & Main’s results will also be made available on the Investor Relations section of Core & Main’s website prior to the call.
About Core & Main
Based in
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, without limitation, all statements other than statements of historical facts contained in this press release, including statements relating to our intentions, beliefs, assumptions or current expectations concerning, among other things, our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding expected growth, future capital expenditures, capital allocation and debt service obligations, and the anticipated impact on our business.
Some of the forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,” “projects,” “is optimistic,” “intends,” “plans,” “estimates,” “anticipates” or the negative versions of these words or other comparable terms.
Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be outside our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of the market in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if our results of operations, financial condition, cash flows and the development of the market in which we operate are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. A number of important factors, including, without limitation, the risks and uncertainties discussed under the captions “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025, could cause actual results and outcomes to differ materially from those reflected in the forward-looking statements. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release.
Factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation, declines, volatility and cyclicality in the
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
CORE & MAIN, INC. |
||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||
Amounts in millions (except share and per share data), unaudited |
||||||
|
|
Three Months Ended |
||||
|
|
May 4, 2025 |
|
April 28, 2024 |
||
|
|
|
|
|
||
Net sales |
|
$ |
1,911 |
|
$ |
1,741 |
Cost of sales |
|
|
1,401 |
|
|
1,273 |
Gross profit |
|
|
510 |
|
|
468 |
Operating expenses: |
|
|
|
|
||
Selling, general and administrative |
|
|
293 |
|
|
257 |
Depreciation and amortization |
|
|
46 |
|
|
43 |
Total operating expenses |
|
|
339 |
|
|
300 |
Operating income |
|
|
171 |
|
|
168 |
Interest expense |
|
|
30 |
|
|
34 |
Income before provision for income taxes |
|
|
141 |
|
|
134 |
Provision for income taxes |
|
|
36 |
|
|
33 |
Net income |
|
|
105 |
|
|
101 |
Less: net income attributable to non-controlling interests |
|
|
5 |
|
|
6 |
Net income attributable to Core & Main, Inc. |
|
$ |
100 |
|
$ |
95 |
|
|
|
|
|
||
Earnings per share (“EPS”) |
|
|
|
|
||
Basic |
|
$ |
0.53 |
|
$ |
0.49 |
Diluted |
|
$ |
0.52 |
|
$ |
0.49 |
Number of shares used in computing EPS |
|
|
|
|
||
Basic |
|
|
189,802,381 |
|
|
192,194,061 |
Diluted |
|
|
198,700,476 |
|
|
202,615,824 |
CORE & MAIN, INC. |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
Amounts in millions (except share and per share data), unaudited |
|||||
|
May 4, 2025 |
|
February 2, 2025 |
||
ASSETS |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
8 |
|
$ |
8 |
Receivables, net of allowance for credit losses of |
|
1,319 |
|
|
1,066 |
Inventories |
|
1,069 |
|
|
908 |
Prepaid expenses and other current assets |
|
48 |
|
|
43 |
Total current assets |
|
2,444 |
|
|
2,025 |
Property, plant and equipment, net |
|
174 |
|
|
168 |
Operating lease right-of-use assets |
|
265 |
|
|
244 |
Intangible assets, net |
|
901 |
|
|
935 |
Goodwill |
|
1,899 |
|
|
1,898 |
Deferred income taxes |
|
566 |
|
|
558 |
Other assets |
|
29 |
|
|
42 |
Total assets |
$ |
6,278 |
|
$ |
5,870 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Current liabilities: |
|
|
|
||
Current maturities of long-term debt |
$ |
24 |
|
$ |
24 |
Accounts payable |
|
923 |
|
|
562 |
Accrued compensation and benefits |
|
68 |
|
|
123 |
Current operating lease liabilities |
|
70 |
|
|
67 |
Other current liabilities |
|
161 |
|
|
90 |
Total current liabilities |
|
1,246 |
|
|
866 |
Long-term debt |
|
2,239 |
|
|
2,237 |
Non-current operating lease liabilities |
|
196 |
|
|
178 |
Deferred income taxes |
|
87 |
|
|
87 |
Tax receivable agreement liabilities |
|
669 |
|
|
706 |
Other liabilities |
|
20 |
|
|
22 |
Total liabilities |
|
4,457 |
|
|
4,096 |
Commitments and contingencies |
|
|
|
||
Class A common stock, par value |
|
2 |
|
|
2 |
Class B common stock, par value |
|
— |
|
|
— |
Additional paid-in capital |
|
1,220 |
|
|
1,220 |
Retained earnings |
|
515 |
|
|
449 |
Accumulated other comprehensive income |
|
7 |
|
|
27 |
Total stockholders’ equity attributable to Core & Main, Inc. |
|
1,744 |
|
|
1,698 |
Non-controlling interests |
|
77 |
|
|
76 |
Total stockholders’ equity |
|
1,821 |
|
|
1,774 |
Total liabilities and stockholders’ equity |
$ |
6,278 |
|
$ |
5,870 |
CORE & MAIN, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
Amounts in millions, unaudited |
|||||||
|
Three Months Ended |
||||||
|
May 4, 2025 |
|
April 28, 2024 |
||||
Cash Flows From Operating Activities: |
|
|
|
||||
Net income |
$ |
105 |
|
|
$ |
101 |
|
Adjustments to reconcile net cash from operating activities: |
|
|
|
||||
Depreciation and amortization |
|
48 |
|
|
|
46 |
|
Equity-based compensation expense |
|
5 |
|
|
|
3 |
|
Deferred income tax expense |
|
3 |
|
|
|
2 |
|
Other |
|
4 |
|
|
|
2 |
|
Changes in assets and liabilities: |
|
|
|
||||
(Increase) decrease in receivables |
|
(257 |
) |
|
|
(170 |
) |
(Increase) decrease in inventories |
|
(163 |
) |
|
|
(104 |
) |
(Increase) decrease in other assets |
|
(5 |
) |
|
|
(17 |
) |
Increase (decrease) in accounts payable |
|
361 |
|
|
|
244 |
|
Increase (decrease) in accrued liabilities |
|
(24 |
) |
|
|
(29 |
) |
Net cash provided by operating activities |
|
77 |
|
|
|
78 |
|
Cash Flows From Investing Activities: |
|
|
|
||||
Capital expenditures |
|
(13 |
) |
|
|
(7 |
) |
Acquisitions of businesses, net of cash acquired |
|
— |
|
|
|
(564 |
) |
Other |
|
(3 |
) |
|
|
(3 |
) |
Net cash used in investing activities |
|
(16 |
) |
|
|
(574 |
) |
Cash Flows From Financing Activities: |
|
|
|
||||
Repurchase and retirement of equity interests |
|
(39 |
) |
|
|
— |
|
Distributions to non-controlling interest holders |
|
(2 |
) |
|
|
(4 |
) |
Payments pursuant to Tax Receivable Agreements |
|
(18 |
) |
|
|
(11 |
) |
Borrowings on asset-based revolving credit facility |
|
100 |
|
|
|
585 |
|
Repayments on asset-based revolving credit facility |
|
(93 |
) |
|
|
(774 |
) |
Issuance of long-term debt |
|
— |
|
|
|
750 |
|
Repayments of long-term debt |
|
(6 |
) |
|
|
(6 |
) |
Debt issuance costs |
|
— |
|
|
|
(12 |
) |
Other |
|
(3 |
) |
|
|
(3 |
) |
Net cash (used in) provided by financing activities |
|
(61 |
) |
|
|
525 |
|
Increase in cash and cash equivalents |
|
— |
|
|
|
29 |
|
Cash and cash equivalents at the beginning of the period |
|
8 |
|
|
|
1 |
|
Cash and cash equivalents at the end of the period |
$ |
8 |
|
|
$ |
30 |
|
|
|
|
|
||||
Cash paid for interest (excluding effects of interest rate swap) |
$ |
14 |
|
|
$ |
34 |
|
Cash paid for income taxes |
|
29 |
|
|
|
47 |
|
Non-GAAP Financial Measures
In addition to providing results that are determined in accordance with accounting principles generally accepted in
We define EBITDA as net income or net income attributable to Core & Main, Inc., as applicable, adjusted for non-controlling interests, depreciation and amortization, provision for income taxes and interest expense. We define Adjusted EBITDA as EBITDA as further adjusted for certain items management believes are not reflective of the underlying operations of our business, including but not limited to (a) loss on debt modification and extinguishment, (b) equity-based compensation, (c) expenses associated with the initial public offering and subsequent offerings and (d) expenses associated with acquisition activities. Net income attributable to Core & Main, Inc. is the most directly comparable GAAP measure to EBITDA and Adjusted EBITDA. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net sales. We define Net Debt as total consolidated debt (gross of unamortized discounts and debt issuance costs), net of cash and cash equivalents.
We use EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Net Debt to assess the operating results and effectiveness and efficiency of our business. Adjusted EBITDA includes amounts otherwise attributable to non-controlling interests as we manage the consolidated Company and evaluate operating performance in a similar manner. We present these non-GAAP financial measures because we believe that investors consider them to be important supplemental measures of performance, and we believe that these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Non-GAAP financial measures as reported by us may not be comparable to similarly titled metrics reported by other companies and may not be calculated in the same manner. These measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. For example, EBITDA and Adjusted EBITDA:
- do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on debt;
- do not reflect income tax expenses, the cash requirements to pay taxes or related distributions;
- do not reflect cash requirements to replace in the future any assets being depreciated and amortized; and
- exclude certain transactions or expenses as allowed by the various agreements governing our indebtedness.
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Net Debt are not alternative measures of financial performance or liquidity under GAAP and therefore should be considered in conjunction with net income, net income attributable to Core & Main, Inc. and other performance measures such as gross profit or net cash provided by or used in operating, investing or financing activities and not as alternatives to such GAAP measures. In evaluating Adjusted EBITDA, you should be aware that, in the future, we may incur expenses similar to those eliminated in this presentation.
No reconciliation of the estimated range for Adjusted EBITDA or Adjusted EBITDA margin for fiscal 2025 is included herein because we are unable to quantify certain amounts that would be required to be included in net income attributable to Core & Main, Inc., the most directly comparable GAAP measure, without unreasonable efforts due to the high variability and difficulty to predict certain items excluded from Adjusted EBITDA. Consequently, we believe such reconciliation would imply a degree of precision that would be misleading to investors. In particular, the effects of acquisition expenses cannot be reasonably predicted in light of the inherent difficulty in quantifying such items on a forward-looking basis. We expect the variability of these excluded items may have an unpredictable, and potentially significant, impact on our future GAAP financial results.
The following table sets forth a reconciliation of net income or net income attributable to Core & Main, Inc. to EBITDA and Adjusted EBITDA for the periods presented:
(Amounts in millions) |
Three Months Ended |
||||
|
May 4, 2025 |
|
April 28, 2024 |
||
Net income attributable to Core & Main, Inc. |
$ |
100 |
|
$ |
95 |
Plus: net income attributable to non-controlling interest |
|
5 |
|
|
6 |
Net income |
$ |
105 |
|
$ |
101 |
Depreciation and amortization (1) |
|
47 |
|
|
44 |
Provision for income taxes |
|
36 |
|
|
33 |
Interest expense |
|
30 |
|
|
34 |
EBITDA |
$ |
218 |
|
$ |
212 |
Equity-based compensation |
|
5 |
|
|
3 |
Acquisition expenses (2) |
|
1 |
|
|
2 |
Adjusted EBITDA |
$ |
224 |
|
$ |
217 |
| (1) | Includes depreciation of certain assets which are reflected in “cost of sales” in our Statement of Operations. |
|
|
||
| (2) | Represents expenses associated with acquisition activities, including transaction costs, post-acquisition employee retention bonuses, severance payments, expense recognition of purchase accounting fair value adjustments (excluding amortization). |
The following table sets forth a calculation of Net Debt for the periods presented:
(Amounts in millions) |
|
As of |
||||||
|
|
May 4, 2025 |
|
April 28, 2024 |
||||
Senior ABL Credit Facility due February 2029 |
|
$ |
100 |
|
|
$ |
241 |
|
Senior Term Loan due July 2028 |
|
|
1,245 |
|
|
|
1,459 |
|
Senior Term Loan due February 2031 |
|
|
939 |
|
|
|
749 |
|
Total Debt |
|
$ |
2,284 |
|
|
$ |
2,449 |
|
Less: Cash & Cash Equivalents |
|
|
(8 |
) |
|
|
(30 |
) |
Net Debt |
|
$ |
2,276 |
|
|
$ |
2,419 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250606389715/en/
Investor Relations:
Glenn Floyd, 314-995-9108
InvestorRelations@CoreandMain.com
Source: Core & Main, Inc.
