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Core & Main (CNM)

Participants
Robyn Bradbury VP of IR and FP&A
Steve LeClair CEO
Mark Witkowski CFO
David Manthey Robert W. Baird
Jamie Cook Credit Suisse
Keith Hughes Truist Securities
Pat Bowman JPMorgan
Joe Ritchie Goldman Sachs
Matthew Bouley Barclays Capital
Kathryn Thompson Thompson Research Group
Anthony Pettinari Citi
Nigel Coe Wolfe Research
Mike Dahl RBC Capital Markets
Call transcript
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Operator

Hello, and welcome to the Core & Main Q2 2021 Earnings Call. My name is Charlie and I will be coordinating your call today. [Operator Instructions]. I will now hand you over to your host, Robyn Bradbury, from Core & Main to begin. Robyn, please go ahead.

Robyn Bradbury

you. Thank welcome & and second-quarter fiscal the call. earnings to morning Main Core XXXX Good Bradbury, of Vice FP&A Robyn is This President & for Investor Main. Core and Relations earnings morning Thank attend us for a this you our company. joining first call as public to

results our to Financial our today's our highlights. lead with you. with Mark second-half second-quarter Officer, execution a discuss company and Witkowski, We Chief share Steve financial by Officer, Chief Executive will followed are then a second-quarter results thrilled our our will call LeClair, outlook overview and Q&A.

with conclude the closing will We call Steve's remarks.

one For Q&A please and [Operator limit your to Instructions] for Thank cooperation. question you follow-up. one

concerning Some flows, today strategies. statements our may results of of may prospects hear beliefs, include will regarding They information the include our or forward-looking expectations assumptions growth financial operations, you position, cash statements. intentions, current or

not statements suggested and risks forward-looking of control. and forward-looking those We are caution be or differ made or materially they uncertainties, from may the in many are call. contained of operating obligation do to statements call. statements known subject this forward-looking made not that future as in assumptions, outside Forward-looking which may or outcomes changes and our guarantees in this reflect unknown you that by events future of performance to of revise of changes date results. undertake of These only any any or or to the statements update are statements forward-looking on We cautionary occurrence the

all liquidity and are measures are adjusted leverage, of but of margin, operating financial to financial GAAP, not present EBITDA, assess we use them providing GAAP, debt EBITDA are measures the In performance results U.S. of These non-GAAP that income EBITDA, net results determined or we considered in business. which our addition with under accordance measures. to adjusted adjusted net

found on presentation to will please call in your be participating our interest in the Main. for for the of website. Thank over Core to second-quarter a XXXX investor measure, now reconciliation GAAP Officer, Chief Relations Steve nearest which & the you fiscal the For to refer slides Executive on the and turn can appendix the call Investor LeClair. I

Steve LeClair

Robyn. before strategy review you, sharing and first cover today welcome joining publicly call will I'm fiscal our it of traded as pleased XXXX be and I call, will our begin of to call you you. Thank earnings non-residential water, industry. the business us morning, second-quarter growth for second-quarter a to with our our very to Thank serving ESG will discussing I brief Core for of & a then I earnings results an second-half and milestone is call XXXX turning Core second-quarter outlook. Mark water related companies the with municipal, residential by and contractors professional municipalities, brief our Main fiscal of protection Main. execution and fire our private and markets presentation Officer, a discuss Page products leading storm distributor wastewater, drainage over specialty Witkowski, start our company. everyone. Company characteristics. a today's Financial will on services our followed Good overview across and our end nationwide. a Chief by exciting and highlights of to is acquisition I financial key and X with drivers & overview This end

and the and infrastructure. repair, maintenance, of Our and protection specialty products in fire water replacement services construction are used

between With and billion customers. a over and two XX,XXX in of be across size. approximately suppliers highly national critical We more estimate $XX only branches X,XXX base large markets, are as one across the and a of XXX we diverse than we which U.S., long-standing operating fragmented serve to distributors link over

specialized repair year projects fiscal we XX% and of of XXXX. pipes, specialized an over a including our Aboveground core covering diversified an the building of of a At existing On ability and our municipal, and products, exposure you mix XXX,XXX valves, and sprinklers market Fire but structures and construction our and residential projects types fabricate have will year SKUs for are requires service broad estimated many XX% their we non-residential not in underground equal protection fire portfolio in of water overview the XX% components. treatment Page exposure had to Furthermore, end end XXXX. product blocks new offer and provide products. on and see near infrastructure to business with full protection X We set in offering. the line. sprinkler which plants. infrastructure fiscal fittings We the are spectrum comprehensive systems and valves a fundamental replace water offering only and market also of assemble

only water We are to services benefits variety management. product software, hardware installation, meter of economic also and municipalities. a lifelong but a significant national environmental which not of value-added distributor smart meters management, system also brings and provide including And

We due recent disasters. in storm our increased the are are natural suppliers. and On X strong Page impacts geosynthetics we provider value and both to our customers importance to solutions, growing control climate offer drainage of a also which flooding proposition and we national show of and the erosion change

our of take of broad services. throughout approach, We source services operational We plans offering because excellence key help sales life and to understanding to local our a our project. consultative customers of design a trusted leveraging the specifications deep products project offer material the of value-added are and across a

as is a distributor role national than just more supplying products. Our

any key secure customers. have differentiate national branch environment with for our we the to value-added services access our that offering to products have offer network competitors. any us complementary we also We to are proposition our Paired value a product in which broad for from job and our and believe ability

material favorable relationships We and arrangements periods our preferred from long-standing suppliers exclusive products, benefit shortages. cases, many in to we during have access with especially or and, purchasing of

adoption understanding the customer the growth mile drive communities reach and to the of we a and local to technologies the and of delivery footprint last and highly because market, is support. new suppliers opportunities. have We our geographic products ability the logistics offer and the essential expertise and of base believe customer we Our developed to have

large sales Page drive reach base. highly force the we highly growth. outline We the sustainable X to to fragmented trained a customer that have us and our with On ability levers enable

the and drive past Over people we ability our few invested in to to years have capabilities growth. strengthen

we multiple ahead to look see we continue As pursuing. avenues

construction supported end population historical to traditionally accelerate, underinvestment demographic trends to to currently growth, due surging low we necessary address secular see growth spending and is shifts, Residential support population housing additional population rates. inventory industry First, stable poised market is and beneficial drivers. by The municipal low interest but record is growth.

as With commercial the a the storm nonresidential communities long development centers and construction for are surge beginning tail favorable such our waterworks, particularly new and cycle warehousing non-residential in expand We rejuvenated institutional tailwinds a and in and residential buildings, investment demand data of and ahead, drainage projects. we fire see at protection increases construction comes as believe products. verticals

have growth We several organic levers.

us estimated to With have at We still faster competitive we have grow advantages only demonstrated allow grow. share local $XX continue market. believe opportunity significant that XX% across addressable we level. than gain We an underlying share to can addressable our to billion the market, our

organic drive under-penetrated to to new geographies continue We expansion locations. through greenfield

with accounts. increase penetration have We runway strategic to meaningful

procurement accounts We specialized and focused technical have which include team ever on a and on contractors. more than needs. national water larger we positioned these are expertise strategic large serving We complex to sales private national companies projects greater requiring believe serve dedicated customers specialized better personnel,

Our as are our size and scale technology, to positions continue industry other accelerating of geosynthetics meters, such smart usable HDPE Acquisitions number us of of key control and component and strategy. adoption erosion the another categories. our growth product to solutions in developing products a

consolidate We industry. have to our a long runway fragmented

focus I'll where in geographies coming market consolidation existing Our detail categories in discuss strategy the acquisition product clearly into positions, we more expansion includes our underpenetrated. slides. are of and new

identified we gross global private margins, and through long pricing opportunities and Finally, enhance label list initiatives. have including procurement sourcing a of to

that internally private tier no our into to have from supplier products expenditures. As made roughly of but we transition label of XXXX, have products transitioning of disrupting of ancillary be sourced, opportunity highly worth partners. an intention or several our million year label fiscal to X% any product We private top dollars' total specified believe we spend up hundred

to We increases price our have recently pricing built product pricing who able using analysts pricing enhance updating margins decisions data visibility network. a branch to drive been team have of proactively pricing by to and to increase

the continue spend margins. shifting team Additionally, with in suppliers programs pricing to optimize our gross order category and best to payment opportunities has to management

we see the initiatives We a acquisitions. innings timeline are these of executing X provide of in ahead. long on On many our recent of and runway of a opportunity early Page

for of cultivate record integrating robust continue track long short the a strong term. and of We pipeline have a and we and targets businesses to acquiring

independent and XXXX, in discuss in than annual I including executed second detail which closed integrated will X since have recent to quarter We historical sales, XX more becoming $XXX net that company deals aggregate million more subsequent in an the acquisitions shortly. adding

the purchasing attractive viewed which refined and margin we businesses. choice entrepreneurial and the long-standing acquire use to reduction from culture targets acquirer branches. development to are We capabilities, our drive operational as efficiencies we We our our synergy due in have generate IT through in of a platforms identifying seek an process to acquisitions our cost bolt-on improvement We source, well-positioned and widely of relationships people. value investment and new are scalable believe of integrate and of our fixed at our

large highly industry Our and fragmented. is

for categories. Pacific contractors with the in focus to irrigation It robust new We expand acquire us new significant acquisitions infrastructure talent future As focus of of Supply pursue in waterworks spanning growth been businesses very in market, four and roughly Maui see The help Pipe serving offering. the our newest in we growth Pacific a expanding highlights size. since L&M water, our disciplined product no geographic operation presence and locations a and maintain and pipeline into which large XXXX, water is billion and provides presence and into that control The look our Page in We complementary Pacific XX sizable Pacific a Pipe islands positions, acquisitions we on which Pipe player in drainage Pacific municipalities we and be geosynthetics opportunity in erosion market modernizing our state offer prioritize show operates areas, Hawaii, in runway through Hawaii, our we Bag industries L&M existing underserved products. on key and and ahead consolidate and we the geographies. expanding underpenetrated product a a we Oahu. $X M&A. approach. fragmented acquisition wastewater, expanding acquisitions, highlight Bag Pipe. through On previously. had broad has storm estimate Pipe a Supply

geosynthetics Over Annual L&M million, XX, half erosion specialized larger better decades customers Pipe the one for joining and incremental and nationwide leading be and of and erosion control together, for XXXX. of ended highly have and second our will the the year and a acquisitions to we earnings our XXXX, with and Supply suppliers $XX specialists the the were fiscal both rapidly team Bag growth dedicated serve itself for reach a growing majority roughly into products. has nation's sales expertise market. of the geosynthetics December and sales respectively L&M and fiscal will teams net three control Pacific our expand built million and of $XX of products services serving By of to our our

XX to we model. ESG our Page to ESG Turning business core share is our characteristics.

our to resource the core our most and providing of provision throughout the to earth's Company the water States. water of safe clean communities what do. Our infrastructure and we people and sustainable the Preserving are committed valuable are and United safe

are career challenges, storm We development supply local product help our short ensure community award-winning and investment our partner Our differentiator believe through Water available and and is repairing including flooding, to in long-term and resources with services a water, is fire and water essential integral finite needs. severity. and protection contamination natural us. training a maintaining to customers We drainage for community's and drought, true building, each continue resource to people our systems. wastewater, to in increase facilities and meet are water

preparing the leaders We our are proud for nationwide. are of we tomorrow to of experts experts have who tradition industry local continue seasoned

and to committed communities deeply associates. are our We our

and communication published report our of our sustainability piece with our the ESG was non-rural last matters believe on business our Our associates, and has customers, communities a stakeholders. benefit focus of our critical our our We enhancing which operate. by suppliers fall become in ESG relationships with we all will that

over ESG on second presentation. of Page With XX now time. area focus reporting cover communication quarter to our highlights We continue the will enhance this that, around execution I our on will

XX quarter, offering option. us full second million, of to the the approximately overallotment deleverage of of to underwriter's completed to with common proceeds public We from Class including pursue gross the our stock, initial $XXX financial shares flexibility our of subsequent approximately A offering proceeds strategies. greater we successfully generating and During balance the the exercise sheet, positioning growth used million the

great which was $XXX focused milestone a $X.X EBITDA environment. year prior on period. year over record of driving for and second prior XX% we million, record solid delivered nearly we the period results business dynamic IPO sales over a the remain While the XX% very In nearly of nearly us, the quarter net billion, growing was in adjusted

been from months recent impact to to we in Louisiana. on stemming inventories in a manufacturing but On PVC felt capacity The shortages, has the Texas industry strengthened, X the PVC than high. have constrained returned issues to categories and continued and rebuild working port short prices pipe inventory. and growing using to entire through full other that PVC PVC the satisfy We suppliers declined the our execution rose closures and smaller while through our strong are ability gain Demand second and manufacturing expand access container our be result prices our capacity, and margin quarter. metering our leadership year. sales of our profitability the share and manufacturing in In initiatives and above fully chip continue to force all-time PVC smart Ida to of position to market improve purchase weather product winter this declared was chain. cost pushed our but so to were availability second likely an expect known, PVC or our announced material Earlier for year, in resin and scale products as months, unprecedented our to is experienced have will demand. effects manufacturers raw all of expand also hard-to-find supply It the the across supply semiconductor impacted to Industry wide those customer prices ahead due majeure in shortages customers of unprecedented ripple plant of components not margins. PVC force less resin majeure pipe this at opportunistically product while a keep products capacity increases we of which gross supply and far chip due shortages. impacts significance, that further Hurricane we experiencing are chain still has it portion A have products and that demand, to in impact demand

our products shipping to the materials raw due and costs an to the import and import we're of and availability rising to beginning or those suppliers cost finished impact of Some declining containers. see supply of products

the We of have our navigated deferral industry capacity are result teams these well. environment some also notable shipments from challenges as across the seeing of suppliers a our customers. Despite constrained to our labor

suppliers with and with we notice our Given preferred Through to able we and service in gained during mitigating supply leadership of and for of believe increases access industry, we information period production cost products shortages credible periods product customers to and coordinated chain access assist the served by dedication and often team, planning. have find More events suppliers impacts product this pricing a our experts products nationwide. branches market market to demand advanced and on our by unprecedented providing customers, suppliers and source share successfully to ensuring efforts of ever these incredibly reliable reliable to to than challenging our our the long-term as our of have our while customers our the and I'm availability material shortages, gain relationships we them proud with are regarding customers. information of helping logistic environment. to products them providing during during increases of provide our leadership

new strategy closed and Company, announcing L&M both acquisitions of and subsequent As quarter. by Pipe previously our growth on to Pacific mentioned, we two the quarter, the to during execute Supply continued which Bag

improve have We the customers the Throughout the providing we the across of operate continue as business, continued to monitor an with the our impacts that country. to variants essential and surfaced COVID-XX closely place pandemic products continuity in and and suppliers. and put the policies At infrastructure. pandemic business nation's our our services beginning necessary customers we to of to maintain water associates, and the plans protect

Our have while teams ever remained the and agile to protocols quickly efficiency new throughout adapted increasing process.

still we As also began keeping while en vaccines out rolled restrictions, COVID-XX certain our loosening one safety cities number priority. protocols as and began easing masse

We customers the federal open. our water things, quarter historic changing plan passed trillion of investment end the all are in in a infrastructure the the America $X other and Act, an the to infrastructure in continuing keep century. while and branches resilience clean Invest suppliers infrastructure, nation's keeping committed that bipartisan of the to our largest to nearly safe Subsequent our investments transformational Senate provides Among long-term makes in the to associates, climate.

law, water, uncertain making it's on wastewater created believe signed accelerate by of replacement funds funds drainage additional well-positioned markets, has favorable We their implications when capitalize and infusion storm end direct we and activity. when and investment. for immense While a the infrastructure start our or will tailwinds repair any if are the into to into bill federal the still to will be way

discuss grow results now to turn to However, I we our and Mark the XXXX outlook. without financial second-half fiscal infusion of Officer, funds. are Financial Chief to well-positioned over this call even our second-quarter to continue potential will Witkowski,

Mark Witkowski

Steve. Good you, Thank morning, everyone.

year prior period. was begin Turning relative Net the billion, in our and over volume operating approximately increase to nearly by $X.X XX, sales selling period. the year prices gains The higher second-quarter were quarter to an prior average second the driven results. covering I'll Page XX% by of increase

construction started end Residential benefited housing of municipal of each continued markets sales has strong to see have our and growth. live demand from to an development. The acceleration benefit across from demand markets. end Our

mix project and end a but to types bridges, overall market, experienced contains buildings ranging quarter. Our of positive which in non-residential roads growth the volume saw varying from commercial results

our have half in our expected through execution which end than the and on roughly experienced believe core to leadership inflation, by to due sales but efficiently for our material to pipe, price increase position We a our allowed Our lesser ability needed sales net material costs. and share rising and initiatives other when to higher solid products they of and pass rapidly where customers much has the rising markets ensuring We gains deliver our lines, us quarter to industry them. was product team's of access our driven to addition by in PVC. PVC was than costs extent many outperform

rising increased fantastic done job strong mix navigating working price to give environment fitting and drainage costs. valves XX% teams Pipe Our period compared drove storm sales XX%, the the to the XX% inflationary of of growth with increases. and The product gains and them due our and compared and up have our fire notice market in customers to same nearly advanced a were which price lines, volume year inflation factors respectively, protection prior to these year material closely the period. from prior

improvements compared was by increased points. due in XX.X% prior the grew was metering sourcing XX.X% the the year with by year component global of Gross profit $XXX pricing. product in basis period, primarily million. to X% was approximately certain in percent second percentage and devices. metering XXX a profit increase gross quarter is smart Our to the prior as product of in Gross in with necessary XX% an shortage, The a line sales which tempered improvement Metering profit semiconductor chip period. compared growth

enhancement. our increases, give an slow margin opportunistic purchases teams we've visibility field period. scale to make to net to our our helped our We price announced inflationary initiatives gross been inventory during has ahead growth Given vendors believe the to which of in resulted cost the these cost of of has increases able products from our better

and increased to continued to an and sourced internally attributable volume higher second progress doubled increase quarter label compensation expenses on variable for expenses of initiative We sales also products incentive and resulting personnel profitability. to last administrative million. stronger private relative year. in $XXX the the our amount XX% Selling, same primarily general make was by quarter from The to increase driven higher the

higher due also in reductions and prior and experienced spending awards we in public offering. million to addition, accounting increased to initial expense associated with the due to million SG&A to and COVID-XX the for furloughs In headcount expenses year related expenses X.X equity-based response higher period. discretionary relating the by to costs $XX equity compensation

EBITDA SG&A margin income was EBITDA was expansion we margin The adjusted exclude rate premiums, flow evaluate of debt during as result interest refinancing, gross As instrument net and income during compensation non-capitalized amount to sales the sales our net of interest This $XXX strong be expected we the early loss debt basis on points. third-party net The higher manage business fixed fee EBITDA whole. fees. sales period. million. increase rate approximately leveraging a non-controlling savings refinancing a net interest swap to XXX% offset write-offs, million. of extinguishment gross margin of due recognized XX% attributable primarily to adjusted In settlement as and expenses debt costs and structure result on XXX growth expansion, of redemption expense is consisted effects by $XX.X a partially $XX our quarter due our and as on Annual a grew the million. financing roughly increased by Adjusted the of higher to growth, we improving Adjusted strong rate increase growth. $XX modification cost adjusted cash margin the to preparing million, in to variable deferred the

of at will slides quarter. Page and income of On the income position now I the refer appendix adjusted our XX, For presentation. reconciliation cover to net the to the liquidity net end a the in debt of

The from connection in debt times, leverage prior to and the to IPO net which turns debt generated net favorable primarily the at quarter a $X.XXX initial billion, of down proceeds result end debt reduction is X.X of is the quarter. the bringing refinancing the transactions net EBITDA. leverage our the Our X.X in net offering, with adjusted public taken in an increase was

maturing to what July per hedge We of XXXX. XX accomplished the X-year reduce $XXX fixed business million at hedge value value past, $X to XXX basis deleveraging new similar rate despite end points interest the in investments term the $X.X strategic year LIBOR which in We may through term. of July in notional rate LIBOR we correspondingly on entered which continue IPO, beginning interest conjunction expect balance initial acquisitions. to The the closed the refinancing in of the into the our include margin grow of plus We have in basis making closing an with sheet loan to our of billion notional carries lock will at by a XXXX with points. billion

to prior pursuing believe $XXX availability continue Operating to term refinancing, scheduled together $XXX principal growth the of facility our facility on to in credit the interest we cash strategies. than with with anticipated our refinancing, in $XXX our $XX asset-based capital loan, of investments sufficient be our borrowings interest and meet flow cash acceleration payments expenditures, quarter needs, period million quarter At expanded capital We and approximately working liquidity over As that near million equivalents. along cash extended will and was million the capital to growth. on cash end less payments asset-based the due in July through revolving revolving cash credit and our support and part year also our from working second generated of hand, million the in the of to of under our operations term with had second from including debt the the debt associated the XXXX. we

ensure reduced we and access operating along compared working larger second We the last growth in a of quarter. to have capital in the our for customer the of in have receivables. unwind as in year, and business the lowered current invest products cash with we customers. most These to to continued Historically spending the to that's generated in our availability resulted build inventory investments, capital year working half inventory

We a to of cash the half the expect generation initial our Subsequent the operating offering exercised the year. end see of flow public this to similar second quarter, underwriters of of in seasonal A resulted additional their intend net in of proceeds generating corporate $XX.X net issuance to the million. million shares which for overallotment option, We use proceeds Class of an X.X the purposes. general

Page our I'll for the to remainder Turning XX, of outlook the discuss now year. fiscal

markets growth market environment and execution the and continue as core bidding of quarter. snapback against Each order prior We fourth we half to demand cities year growth expect flow a loosened continued for COVID-XX-related a restrictions half, second of based softer restrictions into and the trends the expected the first of experienced the activity in initiatives defined due comps though half in weather continue driving and end to the pricing experienced poised favorable year first our is tempered tougher markets appears Last anticipated began constraints. to we demand and as recover, gains. as year the our well on in share half in in to supply-chain second

Main growth are is far chain experiencing results believe with that constraints we capacity so product Hurricane volume year, this this While acquisitions $XXX pleased in our our of temper end Supply Pipe by year Ida. generated anticipate of the the at L&M and of with a we ended half half to lines, supply and Bag across adding August the to net while family. year. in and The year quarter Pipe acquisition through closing million operating a these XXXX. high forward strong and beginning On of results fiscal further August. We end & throughout believe half L&M high the each historically variability the second very of a will weather year in levels winter will the and of typically due roughly the impacted experience northern quality basis the which at sales seasonal be the geographies. look many We year the particular fourth closing Pacific acquisitions slowdown second for them of susceptible targets at to contribute will combined Supply XX, Core December keeping of is the pipeline prices nearly we to Pacific cold maintain more a We of

are acquisitions create continue to and to ability synergies we Our integrate our well Company together. improve them our performing into and

our costs up our as on the We initiatives compared catch half the second expect stabilize. product product with to continue though delivering moderated expansion margin margin market costs to generating year-over-year in half, and gross prices first

leveraging improvement to our expect half. in also the cost rate year-over-year structure, second SG&A We continue delivering

However, the SG&A the we compared $XX first Company following support rate initial a annual our costs of be to the will to offering. half million public ongoing approximately scaled what in as of result delivered needed improvement

ability margins, of in the range. weather availability across top constraints, labor could each end of declining the supplier's Taken result higher million, end all be demand lower XX% and adjusted The towards million position to the continued our prices the towards expect to us of levels that of to ongoing range. COVID-XX commodity in of with shortages, range. meet to end uncertainties Sustained position for end along EBITDA $XXX estimates significantly us the full-year of of near $XXX our the representing or pricing pandemic, are year-over-year several XX%. exist and the gross product range balance we lower year our impact the There markets, XXXX and performance together, demand could a that increase could the unfavorable

to second-quarter will feel availability that I'll and performance represents interest and of challenges pricing, few year. now experiencing view organizational where a finish right Given believe range unrelated topics we unprecedented our structure agreements. we are receivable this best of we regarding the our our demand tax cover product we the now,

shares have same interest B terms Core have currently common outstanding. Class we stock stock B Main, voting our roughly shared In of and the common structure, do XXX Class stock in X-for-X A B Class of not Class economic Class million shareholders stock Inc. A rights. of and & and common issued Shares common hold

financial of share LP & common of holdings one B However, common of they interest A to The one Holdings of is whole interest we place take ownership interest. size. time in as share ability the & the Class Main one Class reduce Over non-controlling non-controlling in will as non-controlling exchange partnership have in interest In stock interest. as in exclude Core business and the exchanges shareholder's reflected partnership Core evaluating LP Class consolidated B effects stock. our a Main and statements for these managing

agreements part as generate favorable C enables owners establish the pre-IPO be Up A favorable new potentially an receivable how will the an each favorable tax tax our the is typical and reorganized Company sizable IPO, of details us As tax of with C to certain appendix of attributes. Up enter it tax which organization TRA the the terms retain shared. to of located to In attributes in presentation. the into of attributes we is structure, the summary

Class results. this mid-single A our price first-half and the introduce Net Assuming pretax we per expect Further, be our share in the I July the common of interest payments a of business Class hope quarter XXXX full benefits of we digits A we TRA, income. rates, we booked stock, stock B shares In anticipate tax you our our their very cash stock pleased unless substantial additional of performance second actually and in helpful that as partnership tax shareholders are this and of savings not under to structure. of stock are with detail the tax are of closing, find common made XX, closing TRA low of the realized. and reduction net to current rate. cash obligations exchange payment shares to B as Class Class common

consistent the our remarks. We concludes to generating like I'd on and prepared profitability for At market continue this increasing cash focus operating questions. time That our to call turn the flow. improving to share, efforts over operator

Operator

[Operator Instructions] question David from of Our Baird. Manthey first is

open. is line go Your Please ahead.

David Manthey

assuming PVC, that would at levels? be inflation assuming the you morning, it PVC the volume Good that think growth can saw been half. quantify And of will XXXX you. that start I decline in had now the you to everyone. you XX% Are sustained you Thank approximately Of in previously versus second in current impact growth? price

Mark Witkowski

going PVC I the you over product bigger Dave, tell other on I'll give kind best was of the I'd quarter of pricing be some can on PVC pricing had terms the you impact impact categories. obviously on of to in half target the PVC. PVC answer on of a there. than It's for certainly the

forward, that? of talk terms to Steve, go the want about you In do

Steve LeClair

Hurricane the with you I'd of share significantly Ida. last in over that Laurel the now beginning Dave, disrupted that fall, deep-freeze the to happened certainly has from PVC this year been Texas last year to in Hurricane

seeing So product highs at we all-time and all-time supply lows. are and at availability demand

months. there like hold at those next dynamics we're see in going the So that given least several to through the for feel we duration here, pricing

And year. through so, was we see pricing along didn't obviously had those we as expect as this lines carry strong that -- to

down to hold some we bit. stabilized We levels. given more it a expect But taper in think for will of external to factors, these probably it there

David Manthey

down already current And infrastructure and incremental? you And the in to around if be in changing that think as through to to long-term? you on infrastructure? as might relative if you all there's there if to start bill, out changing municipal some thanks. level? the relates to Okay, infrastructure then second, any those just do stretched goes U.S. billion can positive $XX attitudes, filter the that a it dollars crowding budgets as the view That it priorities at comment or the spending just relates debate that's Do today municipalities, maybe

Steve LeClair

strong. of grow remained it's COVID. and and really to due third to go you quarter XXXX, I started and if the But Obviously, starting strong, we has demand continued infrastructure in the even half would municipal XXXX accelerate. say back took seeing that it a to very back second spend remain Dave, of pause to

a I positioned been municipalities do think been unlike they to rate are have decade better able get to the able now, they've certainly ago.

So, along and strong those lines really feel budgets we are those secure.

throw think all billion what water Now an to if based seeing. infrastructure we dedicated bill on we modernizing America, clean in are systems and that is incremental $XX drinking do obviously, across you

that that industry with how better see the how a think gets when and bill we decade plays than infrastructure we'll ago is positioned that passed sector. what and I were out. if much in Now spending those funds get do down there,

David Manthey

guys. very Sounds Thanks great. much,

Steve LeClair

Thanks, Dave.

Operator

question Our Suisse. Credit comes from from next Jamie Cook

ahead. open. is go Please line Your

Jamie Cook

morning. pipe in impressive. PVC harp this guess I quarter just X on quarter. margins Nice questions, to were good your really Hi, again. sorry But

might EBITDA sustain think think the from the can be back what a in record And wondering can to guys. a is in I just margins I'm was gross I'm half? margins then you trying PVC your that you contribution two pipe in for about Your lot us the half. back and of that increased understand EBITDA acquisitions get just the to help we how guidance. Thanks. level

Mark Witkowski

Yeah. Thanks, Jamie; thanks for the question.

the nice impacts, of saw terms across our margin In really lines. margin really gross product all of we and improvement PVC

As well board, And cost were we across was PVC on we board. some PVC, across I the material mentioned, able did larger different. case but those to that in the increases the see of certainly manage no pretty

margin we able realize there. So, were improvement to some

we've much seen in As those than rising we material which is certainly pretty at the increase were those and get time PVC rapidly to during frame, buy along prices when been to passed better we've the appropriate started able environment increases. to do well past able the

some product board where across were to So, margin lines. up various pick the across it's I'd able we enhancement really say

Jamie Cook

the And contribution the margins I'm implied? from in sustain half, XX% back half? the what's range two just in sorry, EBITDA back can the gross acquisitions the at then

Mark Witkowski

back up the but the see we anyway, half. a kind of still those. catch are say are of equation half as a margin would think, able margins that's in being in terms half cost I back stabilize the I little how the expect Jamie the prices But side to think to compression bit of little of there. and the we Typically, we these would way looking stronger is to at back sustain about that

tell for to we terms acquisitions, expect EBITDA the business. to the post-synergy be that increment I would you those In the of accretive both of

Jamie Cook

Okay, you. thank

Mark Witkowski

Yeah, thanks.

Operator

question from next Truist. Our Keith Hughes comes of

go open. line ahead. Your is Please

Keith Hughes

going know Thank or effects on timeframe the you is know be still telling of Is do in Ida. of this figured I you of drag But have now a you. within suppliers like? out. A this situation question terms on are to will your said when week what the to you what they for was months? a looks it

Steve LeClair

question, look Tough Keith as at we it.

the at PVC. biggest it the look you had, when impact seen, that we've certainly obviously So, is has impact

of So, during came capacity in PVC Texas. time Ida the through and of period about that Louisiana shuttered the it when XX%

bit to power truck and particularly rail which and is second unpredictable and going that's challenge up restored. And more the is being So, getting one transportation situation, then those of running, the little out back plants a be challenge, in there. is

we it's of be anticipated we're we X going X ballpark, but that. right the could we by somewhere in the where shorter, longer, that And in seeing expect somewhere be somewhere could be it neighborhood of weeks now So, in it. to ballpark. day effects do that It as to through go day after

it's are things can that across has our Ida have we -- When unable the really areas degree wet has weather, that get lesser to of into been so the weather soil, impact impact country. with to much is been contractors like used Secondary into a that certainly do oftentimes to that push But a inundated lesser had next when extent much saturated been a piece get to to going are the and going that's sorting that. something one out into out the be we several week. PVC are be events to But have we over weeks. we to weather dig

Keith Hughes

along or And ductile same lines, bridge just Okay. you do just with the anything gap substitution the with able to or are the of customers any too to is or kind much? HDPE that iron

Steve LeClair

at also is haven't too would with as availability frankly with seen at there capacity at well, even manufacturers is all-time either point. we We've iron I are as lows where ductile levels material before a that certainly premium substitutes this inventory at at price share or seen been network quite availability, the you have in situations as the due pipe to in well past. The really too.

categories challenge to through working those be of a product viable going substitutes. it's all to find So,

Keith Hughes

Okay, thank you.

Steve LeClair

able products and really and -- the to through. being to And and is product for access So, on does say this this, finding customers news this. I really differentiators the good to and secondarily support of substitutes ourselves in one then Keith, where is prided one our our of those strengths that things through would appropriate, that play pulling is, we

our for heavily so pretty leaning So, on than more ever customers us are that.

Keith Hughes

thank Okay, you.

Operator

Bowman JPMorgan. Pat of question is Our next from

open. Please go line Your ahead. is

Pat Bowman

mute. I was on

for let Good Sorry about the volume quarter how to to that? that. answer are volume as then impacted being trended flesh more. that bit if you it markets, relative each you curious that a And that. was know, frame second-half out by little a on across like that, morning, expectations growth in you could for supply the relative I growth, maybe. most Thanks. assumed ones can resi sense end I'll give markets Just XX% constraints? you everyone. above a which Can don't had us end follow-up of to I those

Mark Witkowski

thanks Pat, Good question. for morning. the

typical has tell right, is and well non-resi in been quarter the say nice resi single-digit. there. typically the And I see strongest muni non-resi you stronger the muni in We quarter. that same end I'd growth in certainly than would the I'd then category our then range. say certainly into markets. For double-digit some did nice and strength of muni, low

the more back demand end now is everything half, would see than this market availability tailwinds. end the markets and continued due performance those. impact product right say fairly I'd good So, No with real to we really other. across impact any across consistent into that going

Pat Bowman

How to relative you'll it growth would growth. you And than frame volume in price like versus get half. growth more the sounds -- volume second price Okay.

wondered you well as on just a revenue I So if out the that could -- flesh little side. bit

Mark Witkowski

Yeah, Pat.

it look started quarter really through fall. the hurricanes to on exception half initial pick the the of of year, That's when pricing we to the to increases due being come the think see like last last up fourth some will price effects of I we a first the with the where lot PVC. see started year

quarter most least at to in So, a less likely fourth seem third will be relative the you second price quarters. and a story the of little

Pat Bowman

executed on M&A your my opportunity sheet pipeline? balance you And on of us current you've then post the on? Okay, the these that Can the given and is that then size execute follow-up on leverage the recent update deals pipeline. just guys

Steve LeClair

really opportunities out a got We've find really strong Yeah. pipeline, continue there. to

to good really look we've then at if been that we acquisitions you what the of close new geographies product enhancement. subsequent, So, do and with indicators just able new and deal bolt-on they're

So, continues to our pipeline be robust.

in you'll quarters, $X next a the $XX the deals continue think the million few we but see I and of range million smaller over in short- probably medium-term to to revenue well, see situation a and the of has interest there. a being the contemplated potential legislation lot tax opportunity lot too. and out stirred Certainly that's of as of lot really sellers potential a

So, a we From continue pipeline. no the to in capital really are impact what be encouraged we whatsoever structure, by with seeing going public.

M&A ample So, to flow targets the business. all addition cash to our have of we just pursue continue liquidity in great characteristics to for

So, really well positioned the to continue M&A pipeline.

Pat Bowman

Great. Thanks luck. for of the color. Best

Mark Witkowski

Thank you.

Operator

Sachs. next Ritchie is from of Joe Goldman Our question

go Your is open. Please line ahead.

Joe Ritchie

everybody. Thanks. Good morning,

Mark Witkowski

Joe. morning, good Hey,

Joe Ritchie

pricing So, my around just really question XXXX. first is for

does curious, little to lot a And just if look I'm of just how curious You implications pricing to a four margin on then the we how prices commodity also going your this price back of customers well. kind on stabilize? I'm to through start think gross clearly XXXX? bit about give year. then as that potentially So,

Steve LeClair

how and play that demand to else. this for have just terms color constraints what's going point. hard anticipate And seen to the to now we dynamics certainly difficult at plays carry pricing out. to happen we'll as right capacity is and in XXXX, A that to this many There in has really what in wait different firm. everything of so Certainly on assess better-than-expected, in XXXX. then It's Yeah. short-term. Joe, see really we've in saw quarter. give second remained we are little and through But

Joe Ritchie

figure I'm if Okay, -- of would around what happens if give out a if follow next to there year, it. to that on price that's depending fair. to guess, one though. here? from commodities, stickiness you've I maybe pricing some got like getting I this that say, Or double-digit type is flattened to let's year? to commodities back there trying there of be on typically expect heuristic guess you Steve, half were, is you're just some with

Steve LeClair

stickiness that, little to market some sticky deflate -- do Typically little Yeah. will in may tend several a a to pricing pricing more we the be the costs over the bit while does months. see so

And that's so, traditional what we've pretty seen. of

be starts deflation there in of lag there hitting. would on So, definitely a the when terms

Joe Ritchie

capital makes cash answer in. at chain follow that we get you're environment, year type really environment kind Again, your And building given maybe should are relief probably XXXX. point of it, we my if capital supply I for sense. difficult this stabilizes one on to from the know some again Clearly is flow. some of that bit working free Got it's working business? of little a But the just

Mark Witkowski

we'll obviously especially closely watching the get Yeah. of Joe, through end we to that's really year. as here something be the

due to just seasonal some the extent geographies. down our You'll certainly see release typical northern a to in line

typically watch we release to if and where you and So, look investments. little make those a make forward constraints we decisions the But capital. beyond, very we're working to when have supply going closely and some about

Joe Ritchie

and That makes Thanks, it. Got sense. everybody, congrats.

Mark Witkowski

Thanks, Joe.

Steve LeClair

Thanks, Joe.

Operator

of Matthew is Barclays. next from Our question Bouley

open. line ahead. go is Your Please

Matthew Bouley

Thanks morning, for the Good everyone. taking questions.

The first one gross side. the on margin

expect some half at time that I about say costs to ahead pre-buying you increases. I think catch up. guess of And you that heard in so the You second price talked same more I the of opportunistic

do a the you How balance you. given prebuy in Thank together? see more my these two is half second is some So, inflationary question of wouldn't trends? we why reason -- there near-term any benefit similar those

Mark Witkowski

Thanks for Matt. Hey, the question.

product availability the as and happens it's to what second we think those I really levels. looked half, pricing into about

to half. those so benefit So, out the sustained of opportunities. I'd and little rise would that we'll the second continue that a If continue advantage pricing stabilizes they buying been say side to cost of kind pressure a half. probably take see of we catch think back flattens I in expect to little little up And we get and in they've like pricing, a there

challenges driving just what's half the that and in we gave range some really second the half. saying are availability of So, on as happens those what for the price ultimately second

Matthew Bouley

Understood.

the non-residential then Okay, And very there. the second on end market. helpful one

what just sounded some the seeing you of terms at comment seeing. relatively of the or a on in top, confident in the uptick Actually is kind you've longer Thank you indicators you said business being non-res cycle. I in of verticals. curious you based your term tangible own whether a I'm think a yet at I think are backlog beginning it longer-term you're made certain of a you. call making or seen quoting

Steve LeClair

at look in two non-residential We Yeah. ways. really

firm and We've a then roads has which storm of during commercial we're very already already a to see doing construction, COVID. And bridges this And we're a has up. and be lot of starting quoting see to lot didn't commercial protection more area in to fire some are strong. in construction big been and carry obviously starting certainly anticipate of resurgence data area for pretty really lot lot to warehousing to we of activity, there's are which which construction. during are So, an drainage that we are work starting that fire been our see, starting a continued continued that's products center instrumental really but for markets actually that And to hit and systems. a COVID. That what commercial we see hard through we year, was was these now challenged were protection

cycle. We us. some an So, us tailwinds of and that is encouraging to a the ahead ahead of good us that think new has of start really

Matthew Bouley

thanks, Well, Mark. thank and Steve, you, right. All

Steve LeClair

Thanks, Matt.

Operator

question is Thompson with Research from Kathryn next Group. Our Thompson

Please Your line go is ahead. open.

Kathryn Thompson

focus has Ida. opportunities highlight how the the around particularly headwinds events and these some Main and weather Thank you my disruptive change Hurricane events? Hi. climate But you. like on today. Core & are like from for events questions been taking There what other do Thank weather weather solutions,

Steve LeClair

Thanks, Kathryn.

not that look are really that emanated climate some there everybody. is projects as things we that But the out where there's source bigger of large-scale change One we're areas. at in situations may been water drought seeing have to be the projects visible

some to projects water look Mead areas very in to to of a these lot of level the work Wisconsin capability. at lot we be at source ability struggling And The national with expertise big source. are to these that national that plant able about find and Lake teams have local and enhanced account active like ways through projects, strategic treatment then those really thing work in engineering what business for You and in that have of We've and fulfillment is example. water us of same a our pull and ability a large and they really been in new a the contractors number have like firms products. the

investment the of a waterways. us and with a infrastructure water to real lot given lines, runoff construction of systems our specs systems So, of with streams to advantage. for helping lot that's new at the goes storm and that. a vendor see prevent retention partners into that as retention drainage and commercial those for things we're detention and continue We flooding forefront We'll into along situations work efficient to in right more establish other too water more

change our playing And accounts. business these and us are to with those given advantage presence, strategic has into continue couple a as able that all big needs climate to local be impact. it's as then with things those So, support some more that we've built of really the strengths particularly to a

Kathryn Thompson

supply question of Okay, How any managing size, thank national a chain. your But been standpoint then from you And meters follow-on detail this if and nature given my your in to share are been have not you What to your impacted. you're against you. distribution on today chain. managing alone supply a have it, market able lot determine PVC backdrop, specialty if -- gaining everything footprint? ways from provided you you're

Mark Witkowski

preferred to that ability are no that business to get doubt we're don't able that. that. a up I quite to lot share unfortunately, bit of our be competitors, able there's Kathryn, been that right with in able do we've supply scale that And smaller really Yeah. associated to our a access pick have to did given of of a short And now. lot size products and

with we material local can these understanding consulting be to being Secondarily how our a a big the the working we complete able on get are the And there solutions we big do when there try of of process. are diligently find the the sales types which alternative is of materials specifications in to this way complete like shortages used can't what provide product, projects. if work and and to value them projects. these that to that provide and part lot to that's We

little labor our -- talked we've at look you shortages. bit about If a

too. significant pretty as well, have challenges now labor right contractors Our

that on have want crew, when do sitting crew a So, they materials. idle not waiting they

And in help get so, access choices that or able really workforce opportunity product projects and material many either to different that's an where find them can for we to those to complete keep being active. so ways them in alternative their

Kathryn Thompson

as final What better has expectations. been has just and you were relatively Okay. a And then your just relatively on better this been which planning worse fiscal for what was guidance, follow-up your year. expectations than versus

Steve LeClair

at than to that we through to ability able more we pricing get was into were of suppliers in have inflationary the certainly a as again, we've Kathryn. this is the was we field we pricing One able year didn't Thanks in tell continued seen thing see this unique to that that faster. and for margin initially, to the Yeah, environment. nice would product question. we've that do, our I done what think past teams you the and rapidly increase seen anticipate. from rapid year we that I the certainly our And were for certainly the levels planning increase never hands the gross were improvement

ready we it. preparing we both than have through think those we for So, Certainly environment this. could even of and items, this better executed I I'd anticipated while say were for

coming demand obviously areas. out the are those So, and the strength COVID And of two of big as then well.

coming, nice some nice industry. if and tailwinds to certainly our been saw it's we increases see While

areas we're are the guidance. here to So, with really all those at ultimately combine where full-year

Kathryn Thompson

thank you. Perfect,

Steve LeClair

Thank you, Kathryn.

Operator

Our next of question Pettinari Citi. is from Anthony

Your line go is open. Please ahead.

Anthony Pettinari

morning. Good Hi.

morning. issues hey, good With the availability --

matter or With a issues just months how you wondering out is quarters? be any or have just demand shortages. few could that few PVC the bit and this outright Are materials you availability about you other seeing we've if projects of and talk getting a a I'm may your to a in customers the pushed destruction labor challenges seen mentioned. little responded

between and Just about color there new more talked construction if versus or there. can You or repair give replace Is difference regions? big types a earlier. any substitution wondering different customer you

Steve LeClair

point Anthony, shortages we up seen to price of even have projects this at this no material increases really at cancellations due to this point. or point

demand fulfill, been quarter. continued this robust gone with And of as last to over a lot has work the to very able we've So, remain period. the we've through albeit

coming out quarters. think But So, so certainly supply work remained able significant shortages these to been have there in where far demand I constraints. caution a more we've these we incredibly and some have about has some through impact of strong may

Anthony Pettinari

‘XX, very your And missed but that level any helpful. you're XQ? And organic there ‘XX? -- there volume that's organic but reason then not was for for the is about ‘XX growth this, growth directionally I ex-M&A guidance volume if And understanding way of it's for is to what to is Okay, growth in organic sustainable rate what kind guidance think apologies is not embedded of think then giving XXXX? for

Steve LeClair

Anthony, Yeah, thanks.

R&B organic first mostly XXXX, was our in the quarter, growth. then closed Company, L&M in For the larger which Supply had Pipe the quarter after our We quarter. second acquisition tell and it would and you I anniversary Pacific was

historical were of million through half Combined should year. annual they you obviously see sales. in expect the to about the So, those come back $XXX

you a And first necessarily we of half into out half yet, see of say those less ‘XX. ‘XX. should can So, haven't little the M&A XXXX than of in forecast the expect coming or I'd won't in that year completed roughly of we you another come but through half through that back about obviously half half

Anthony Pettinari

turn it I'll that's Okay, over. helpful.

Steve LeClair

you. Thank

Operator

The of next is Research. Nigel from question Coe Wolfe

Your line is open. Please go ahead.

Nigel Coe

for everyone. morning, thanks question. And the Good Thanks.

you lot internal We of push the so pass have get the the that's whole that and unusual. But go inflation ground a and very price on good, given were especially lot covered here. commodity a It through. margins there's not seems very commodity like a margin to clearly

I when the curious you the on back might QX. was you of inventory? year that the normal on margins end it function that see to in these of think So, the So, of some prebuying how a am is half incremental relative of And swings commodities? you back look

Steve LeClair

that. enhancement of margin with the our doing, with a what will we elevated we've lot a improved, is the a type little but critical, through of demand expanding and of current do of the say helped and increases certainly couple a lot started probably a in margins. through. importantly we help Nigel, in cost had these year. cases more will management category price I'd we with has our to too. this it this challenges we drive see inflation label of some would one, in we our lot dedicated lagging activity, costs to of some translated of across rapidly we pricing ability absolutely a terms continuing is that faster to than organically that of same a like But of a which prebuying performance was ability But certainly. we It that in inventory market seeing compression get to buying just as into at a product looking processes of felt and start fulfill so to It year at a as these difficult getting happened small hitting translate us more We depleting substantial forward And be are to and that be We think expect half team some opportunity that put of seen. lot that things. the and both see well certainly the last got increases to you've price. We associated Number that. is with categories, that of may are that the hit the first all how part impact lot really many we we some relatively as carry as tell private

Nigel Coe

chain meters. you alluded my commentary And certainly Great, in especially related. follow acute thank to you. And around is seen we've meters. this smart on supply challenges, particularly And your in

stable a Any seeing there you So, half in improvement? of in or second the helpful. curious, deterioration bit the there here I'm color would you to are be supply year, of do meters be just expect little

Steve LeClair

right now for to supply really the most and of critical types that projects type certain meter. there premium higher that The really prioritizing good would been we've of of Yeah. out demand at portion is our meters inventory a available serve a

we're broader think upon So, projects products. bit little some a of will of be dependent availability seeing in that meter those the a I what push is of

And meters will of So, be that some push got year. will that projects next we've of that we particularly into where going for constrained. is meters these subsector types particularly of AMI, to supply in for see few a those that

Nigel Coe

Great. Thanks, Steve.

Steve LeClair

you. Thank

Operator

from Capital Dahl RBC of is Our question next Mike Markets.

Your line is ahead. open. go Please

Mike Dahl

for in. me thanks fitting morning, Good

of chain the some point wanted out a much like Can renewed quantifying and able what uptick maybe now? your comment recently impacted maybe i.e., still expectations what meant follow-up to to side around wondering some to takes issues are a and the is you've on and of thing challenges. and a from part products constraints on the other serve as have It put volume with as Just and been standpoint; question, some finer it's you start an question. seeing the of customer these a large seems labor could by on heard And the if even serve we've supply puts the on the negatively this you you in how for right absenteeism. year. But two labor

Mark Witkowski

to through meters, of that a run demand, other been that smart has handful relatively year, than share tight. and the into would we've where immaterial. with of supply this not half the while meet certainly I first real projects involving you been been that's were here We've situations unable

second guidance strong of be So, we see anticipate through through the strong we'll to that demand here grow tight obviously that supply some some half. that. continue will we'll to We've provided continue work and and

to PVC, et certainly of for and most work determined. a But caution yet to cetera. that's lot that. with able areas be through do anticipate we we'll continue the So, to have We part, we've some been that

Could second -- repeat you Now question? you I'm the had Labor a second question, sorry.

Mike Dahl

It yeah. was really around labor,

Mark Witkowski

Main We've area pretty doubt, attract able It's to Labor and same work. speculate whether lot to right labor to people suppliers, real market look country. a personally been to situation that. part When challenging our every a be labor But that to as up through staff but successful half talent year, any being us, we hard operate they're all work We'll in for there's contractors has challenges we for very a that possible challenge do a continue the able to been we'll to labor of through branches. with we back back as continue bit & to provide think tight to going it now. we to of continue across our get more it. of at we'll incentives work at Core lean be changes of this -- operate been the able be having get no through here. the challenge. A I and pool the associated That's being to and will in

Mike Dahl

your some question efforts? it, kind got is plans constraints expansion by seeing, think these supply you're that okay. then some label do of or related product out you follow-up currently private of of rollout and but private balanced constraints still global availability supply of understand the push constraints But small, a my or the it, is growth label but your I then Got track. when And about

Mark Witkowski

point. this been material hasn't at It

protection built So, some branches, here particularly fire we be to lot to a internally to we've continue build -- our supply in serve able of products.

the to we've had that We're inventory too expand to continuing through through offerings we well level product on in comfortable there. as a So, work so sourcing to that far. have carry

we've next do quarters. the that progress this far lot our up a and continue to certainly so impeded virtually over point. hasn't to to hope it been able We of So, several that

Mike Dahl

you. Okay. Great, thank

Mark Witkowski

Thank you.

Operator

hand are further on There questions no so will to the back call the I Steve. over line,

Steve LeClair

it I the to leading specialized a first company. share key call Well, few out thank To close that joining for for Core today all Main publicly a of again make earnings distributor. a would us traded like you & as our items

and with an size attractive market are and scale leader fragmented We in a market.

industry. role our have shaping We playing a strong a value in pivotal proposition

We have organic faster to grow cultivating and market ways growth, for gain levers the multiple continually than share.

runway. pipeline execute We have a acquisitions with and proven additional large and a ability integrate to

in to each from are We our markets. of favorable industry poised benefit trends end

and and all shortages. characteristics. We strong the to especially product commitment And communities, associates attractive our with to incredibly profile out, resilient given proud COVID-XX, to have to return related it their thank continued of and availability our close labor want I'm disruption challenges customers financial for our an and

Thank to interest We in are and our nationwide. knowledge, you your Operator service for Main. experience with concludes call. local customers providing local committed & our that local Core

Operator

joining call. for today's Thank you

You may now disconnect your lines.