systems, including from cybersecurity threats; impairment in the carrying value of goodwill, intangible assets or other long-lived assets; our ability to continue our customer relationships with short-term contracts; risks associated with exporting our products internationally; our ability to maintain effective internal controls over financial reporting and remediate any material weaknesses; our indebtedness and the potential that we may incur additional indebtedness that might restrict our operating flexibility; the limitations and restrictions in the agreements governing our indebtedness, the Amended and Restated Limited Partnership Agreement of Core & Main Holdings, LP, as amended, and the Tax Receivable Agreements (each as defined in our Annual Report on Form 10-K for the fiscal year ended January 28, 2024); increases in interest rates; changes in our credit ratings and outlook; our ability to generate the significant amount of cash needed to service our indebtedness; our organizational structure, including our payment obligations under the Tax Receivable Agreements, which may be significant; our ability to sustain an active, liquid trading market for our Class A common stock; and risks related to other factors discussed under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended January 28, 2024.
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 Nine Months Ended
-------------------------- --------------------------
October 27, October 29, October 27, October 29,
2024 2023 2024 2023
------------ ------------ ------------ ------------
Net sales $ 2,038 $ 1,827 $ 5,743 $ 5,262
Cost of sales 1,495 1,333 4,214 3,828
----------- ----------- ----------- -----------
Gross profit 543 494 1,529 1,434
Operating expenses:
Selling, general
and
administrative 274 240 799 701
Depreciation and
amortization 46 37 135 109
----------- ----------- ----------- -----------
Total
operating
expenses 320 277 934 810
----------- ----------- ----------- -----------
Operating income 223 217 595 624
Interest expense 36 20 106 59
----------- ----------- ----------- -----------
Income before
provision for income
taxes 187 197 489 565
Provision for
income taxes 47 39 122 110
----------- ----------- ----------- -----------
Net income 140 158 367 455
Less: net income
attributable to
non-controlling
interests 7 46 20 147
----------- ----------- ----------- -----------
Net income
attributable to Core
& Main, Inc. $ 133 $ 112 $ 347 $ 308
=========== =========== =========== ===========
Earnings per share
Basic $ 0.69 $ 0.65 $ 1.81 $ 1.81
Diluted $ 0.69 $ 0.65 $ 1.79 $ 1.80
Number of shares
used in computing
EPS
Basic 191,538,672 170,999,291 192,173,529 169,989,859
Diluted 201,165,553 224,686,413 202,146,712 232,485,740
CORE & MAIN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Amounts in millions (except share and per share data), unaudited
October 27, 2024 January 28, 2024
------------------ ------------------
ASSETS
Current assets:
Cash and cash equivalents $ 10 $ 1
Receivables, net of allowance for
credit losses of $19 and $12,
respectively 1,378 973
Inventories 950 766
Prepaid expenses and other current
assets 43 33
--- ------------- --- -------------
Total current assets 2,381 1,773
Property, plant and equipment, net 167 151
Operating lease right-of-use assets 220 192
Intangible assets, net 964 784
Goodwill 1,884 1,561
Deferred income taxes 555 542
Other assets 44 66
--- ------------- --- -------------
Total assets $ 6,215 $ 5,069
=== ============= === =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 23 $ 15
Accounts payable 782 504
Accrued compensation and benefits 112 106
Current operating lease liabilities 63 55
Other current liabilities 134 94
--- ------------- --- -------------
Total current liabilities 1,114 774
Long-term debt 2,384 1,863
Non-current operating lease
liabilities 158 138
Deferred income taxes 85 48
Tax receivable agreement liabilities 702 706
Other liabilities 22 16
--- ------------- --- -------------
Total liabilities 4,465 3,545
Commitments and contingencies
Class A common stock, par value
$0.01 per share, 1,000,000,000
shares authorized, 190,189,434 and
191,663,608 shares issued and
outstanding as of October 27, 2024
and January 28, 2024, respectively 2 2
Class B common stock, par value
$0.01 per share, 500,000,000 shares
authorized, 8,483,709 and 9,630,186
shares issued and outstanding as of
October 27, 2024 and January 28,
2024, respectively -- --
Additional paid-in capital 1,213 1,214
Retained earnings 433 189
Accumulated other comprehensive
income 23 46
--- ------------- --- -------------
Total stockholders' equity
attributable to Core & Main,
Inc. 1,671 1,451
Non-controlling interests 79 73
--- ------------- --- -------------
Total stockholders' equity 1,750 1,524
--- ------------- --- -------------
Total liabilities and
stockholders' equity $ 6,215 $ 5,069
=== ============= === =============
CORE & MAIN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Amounts in millions, unaudited
Nine Months Ended
------------------------------------------
October 27, 2024 October 29, 2023
-------------------- --------------------
Cash Flows From Operating
Activities:
Net income $ 367 $ 455
Adjustments to reconcile net
cash from operating activities:
Depreciation and
amortization 144 114
Equity-based compensation
expense 11 8
Deferred income tax expense 9 6
Other 10 5
Changes in assets and
liabilities:
(Increase) decrease in
receivables (316) (236)
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