Wed, Sep 4, 11:35 AM (132 days ago)
Core & Main, Inc. reported its financial results for the quarter ending July 28, 2024, showing a 5.5% increase in net sales to $1,964 million compared to $1,861 million in the same period last year. Gross profit rose 3.4% to $518 million, while operating income decreased by 9.7% to $204 million, attributed to higher selling, general, and administrative (SG&A) expenses, which increased 12.6% due to acquisitions. Interest expense surged to $36 million from $22 million, leading to a 23.2% decline in net income to $126 million. Adjusted EBITDA fell 4.8% to $257 million. The company’s total assets increased to $6,098 million, driven by higher receivables and inventory. Core & Main's debt obligations rose significantly, with total liabilities at $4,378 million, including $2,404 million in long-term debt. Cash flow from operating activities decreased to $126 million, primarily due to increased investment in working capital. Future operations may be impacted by ongoing supply chain uncertainties and interest rate fluctuations. The firm has also initiated a share repurchase program, reflecting its strategy to enhance shareholder value.