Core & Main Inc. (NYSE: CNM) saw its shares climb Tuesday, as the leader in advancing reliable infrastructure with local service, nationwide, announced financial results for the first quarter ended April 30, 2023.
Net sales decreased 1.5% to $1,574 million but increased 49.2% compared with the first quarter of fiscal 2021. Gross profit margin increased 160 basis points to 27.9%. Net income decreased 2.9% to $133 million. Adjusted EBITDA (Non-GAAP) increased 0.5% to $220 million. Net cash provided by operating activities was $120 million compared with a $37 million outflow in the prior year.
The company also executed a $332-million share repurchase concurrent with a five-million share secondary offering, reducing diluted shares outstanding by 15 million. It also closed three acquisitions during the quarter and signed a definitive agreement to acquire another business subsequent to the quarter: Landscape & Construction Supplies, UPSCO, Midwest Pipe Supply and Foster Supply. Core & Main also opened new locations in San Diego, California and Lincoln, Nebraska, and has raised expectation for fiscal 2023 Adjusted EBITDA to be in the range of $820 to $880 million
Said CEO Steve LeClair. "We had an excellent quarter from a profitability standpoint, with Adjusted EBITDA margin increasing 30 basis points to a new first quarter record of 14.0%. Prices remained elevated against improving supply chains and gross margins outperformed our expectations, offsetting lower sales volume and inflationary cost pressure to deliver a solid Adjusted EBITDA outcome for the quarter."
CNM shares jumped $1.37, or 5%, to $28.56.
