On this page of StockholderLetter.com we present the latest annual shareholder letter from Core & Main, Inc. — ticker symbol CNM. Reading current and past CNM letters to shareholders can bring important insights into the investment thesis.
FISCAL YEAR 2023
ANNUAL REPORT
COREANDMAIN.COM
A LETTER FROM OUR
CHAIR & CEO
Dear Shareholders,
We are proud to report another year marked by new records and accomplishments
for Core & Main. We achieved record net sales of $6.7 billion while maintaining
a strong balance sheet and generating record operating cash flow of nearly
$1.1 billion, providing us the capacity to reinvest in the business and return
capital to shareholders. Our teams in the field persevered through a challenging
economic environment to provide exceptional service to our customers and deliver
outstanding results.
Our product and customer initiatives produced strong results throughout fiscal
2023 as we capitalized on our scale and capabilities to accelerate the adoption of
new products in our industry. We also expanded our relationships with national
contractors and private water companies by generating value for them through
the reliable service we provide and the ease of doing business with us. We invest
in each of these initiatives to drive scale while focusing on profitability. These
initiatives produced consistent above market growth for the business historically,
and it has accelerated since becoming an independent company in 2017.
Our entrepreneurial culture empowers leaders at all levels of the organization
to make decisions that best serve our customers. Our 335 branches operate in
diverse markets, where localized decision-making and accountability are essential
to our success, which is why we empower our branches to tailor their approach
to specific customer needs and local municipal specifications. Our local expertise
is backed by national scale and access to capital and technology platforms that
provide our field leaders with a competitive edge in their markets. Our ability
to combine local expertise and entrepreneurship with Core & Main   s national
resources truly sets us apart in the industry.
We opened four new locations in underserved markets in fiscal 2023, building
on our commitment to make our products and expertise more accessible
nationwide. We also deployed approximately $780 million to welcome several
new companies to the Core & Main team during and immediately after the fiscal
year, moving us toward our goal of providing a complete line of water, wastewater,
storm drainage and fire protection products to our customers across the country.
Our acquisition strategy continues to create value for Core & Main, and we are
honored that so many owners and operators in our space choose us as a home for
their businesses.
FISCAL 2023 ANNUAL REPORT | I
Throughout fiscal 2023, we invested in additional capacity to expand our assortment of private label brands and
products used in water, wastewater, geosynthetics and fire protection applications. We also made great progress in
streamlining our pricing processes and utilizing data-driven analytics across our branch network. Our teams in the
field have the flexibility to price locally when needed, but behind them is a centralized team analyzing our extensive
transaction data to optimize pricing. We expect this team will continue to use the tools and capabilities we built to
further drive margin expansion into the future.
A key part of our growth strategy also includes investing in technology to better serve our customers and help them
grow their business. This includes investments to create a more efficient bidding and submittal process, digitizing
product deliveries and improvements to our customer-facing technology. These are just a few of the investments
we are making to help us provide best-in-class service, improve the customer experience and enhance our existing
customer relationships.
We continued to execute on our capital allocation priorities by deploying over $1.3 billion throughout fiscal 2023 to
repurchase and retire 45 million shares from our former private equity sponsor. At the end of fiscal 2023, our sponsor
exited its remaining stake in Core & Main, after which its representatives resigned from our board and I was appointed
as board chair.
This February, we expanded our financial capacity by adding a new $750 million term loan to our capital structure.
This additional capacity puts us in a position to continue executing our growth strategy now and in the future. We are
at an inflection point with our strategic investments and operational improvements to drive long-term organic growth
and margin improvement. Additionally, our investment capacity, coupled with our history of operating efficiency
and superior execution, gives us great confidence that we will continue achieving strong financial performance. We
generated a significant amount of momentum for the business in fiscal 2023, and we look forward to capitalizing on
that momentum next year and beyond.
We take great pride in being a leader in our industry and in our role of advancing reliable infrastructure for the
communities where we live, work and play. Our focus on water, wastewater, storm drainage and fire protection
infrastructure is at the heart of our growth strategy, and the need for infrastructure improvement has never been
greater. While much of the nation   s water infrastructure is not visible to the general population, it becomes all too
clear when problems arise that affect our everyday lives. From water scarcity to historic flooding events, communities
continue to face extreme weather challenges requiring advanced infrastructure solutions and technologies. Our team
is committed to playing a pivotal role in this effort by partnering with municipalities and contractors and introducing
them to innovative solutions. I would like to thank each of our approximately 5,000 associates across the country for
their commitment to delivering local knowledge, local experience and local service, nationwide.
Sincerely,
Steve LeClair
Chair & Chief Executive Officer
FISCAL 2023 ANNUAL REPORT | II
FISCAL 2023 ANNUAL REPORT | III
Core & Main is a leader
in advancing reliable infrastructure
with local service, nationwide.
As a leading specialized distributor with a focus on water,
wastewater, storm drainage and fire protection products,
and related services, Core & Main provides solutions to
municipalities, private water companies and professional
contractors across municipal, non-residential and residential end markets, nationwide.
St. Louis, MO
$6.7 Billion
Headquarters
FY23 Net Sales
~335
60,000+
Branches
Customers
~5,000
200,000+
Employees
SKUs
Branch Locations
Corporate HQ
Deep & Differentiated Product Portfolio
FISCAL 2023 ANNUAL REPORT | IV
 • shareholder letter icon 5/14/2024 Letter Continued (Full PDF)
 • stockholder letter icon 5/16/2023 CNM Stockholder Letter
 • stockholder letter icon More "Consumer Goods" Category Stockholder Letters
 • Benford's Law Stocks icon CNM Benford's Law Stock Score = 93


CNM Shareholder/Stockholder Letter Transcript:

FISCAL YEAR 2023
ANNUAL REPORT
COREANDMAIN.COM

A LETTER FROM OUR
CHAIR & CEO
Dear Shareholders,
We are proud to report another year marked by new records and accomplishments
for Core & Main. We achieved record net sales of $6.7 billion while maintaining
a strong balance sheet and generating record operating cash flow of nearly
$1.1 billion, providing us the capacity to reinvest in the business and return
capital to shareholders. Our teams in the field persevered through a challenging
economic environment to provide exceptional service to our customers and deliver
outstanding results.
Our product and customer initiatives produced strong results throughout fiscal
2023 as we capitalized on our scale and capabilities to accelerate the adoption of
new products in our industry. We also expanded our relationships with national
contractors and private water companies by generating value for them through
the reliable service we provide and the ease of doing business with us. We invest
in each of these initiatives to drive scale while focusing on profitability. These
initiatives produced consistent above market growth for the business historically,
and it has accelerated since becoming an independent company in 2017.
Our entrepreneurial culture empowers leaders at all levels of the organization
to make decisions that best serve our customers. Our 335 branches operate in
diverse markets, where localized decision-making and accountability are essential
to our success, which is why we empower our branches to tailor their approach
to specific customer needs and local municipal specifications. Our local expertise
is backed by national scale and access to capital and technology platforms that
provide our field leaders with a competitive edge in their markets. Our ability
to combine local expertise and entrepreneurship with Core & Main   s national
resources truly sets us apart in the industry.
We opened four new locations in underserved markets in fiscal 2023, building
on our commitment to make our products and expertise more accessible
nationwide. We also deployed approximately $780 million to welcome several
new companies to the Core & Main team during and immediately after the fiscal
year, moving us toward our goal of providing a complete line of water, wastewater,
storm drainage and fire protection products to our customers across the country.
Our acquisition strategy continues to create value for Core & Main, and we are
honored that so many owners and operators in our space choose us as a home for
their businesses.
FISCAL 2023 ANNUAL REPORT | I

Throughout fiscal 2023, we invested in additional capacity to expand our assortment of private label brands and
products used in water, wastewater, geosynthetics and fire protection applications. We also made great progress in
streamlining our pricing processes and utilizing data-driven analytics across our branch network. Our teams in the
field have the flexibility to price locally when needed, but behind them is a centralized team analyzing our extensive
transaction data to optimize pricing. We expect this team will continue to use the tools and capabilities we built to
further drive margin expansion into the future.
A key part of our growth strategy also includes investing in technology to better serve our customers and help them
grow their business. This includes investments to create a more efficient bidding and submittal process, digitizing
product deliveries and improvements to our customer-facing technology. These are just a few of the investments
we are making to help us provide best-in-class service, improve the customer experience and enhance our existing
customer relationships.
We continued to execute on our capital allocation priorities by deploying over $1.3 billion throughout fiscal 2023 to
repurchase and retire 45 million shares from our former private equity sponsor. At the end of fiscal 2023, our sponsor
exited its remaining stake in Core & Main, after which its representatives resigned from our board and I was appointed
as board chair.
This February, we expanded our financial capacity by adding a new $750 million term loan to our capital structure.
This additional capacity puts us in a position to continue executing our growth strategy now and in the future. We are
at an inflection point with our strategic investments and operational improvements to drive long-term organic growth
and margin improvement. Additionally, our investment capacity, coupled with our history of operating efficiency
and superior execution, gives us great confidence that we will continue achieving strong financial performance. We
generated a significant amount of momentum for the business in fiscal 2023, and we look forward to capitalizing on
that momentum next year and beyond.
We take great pride in being a leader in our industry and in our role of advancing reliable infrastructure for the
communities where we live, work and play. Our focus on water, wastewater, storm drainage and fire protection
infrastructure is at the heart of our growth strategy, and the need for infrastructure improvement has never been
greater. While much of the nation   s water infrastructure is not visible to the general population, it becomes all too
clear when problems arise that affect our everyday lives. From water scarcity to historic flooding events, communities
continue to face extreme weather challenges requiring advanced infrastructure solutions and technologies. Our team
is committed to playing a pivotal role in this effort by partnering with municipalities and contractors and introducing
them to innovative solutions. I would like to thank each of our approximately 5,000 associates across the country for
their commitment to delivering local knowledge, local experience and local service, nationwide.
Sincerely,
Steve LeClair
Chair & Chief Executive Officer
FISCAL 2023 ANNUAL REPORT | II

FISCAL 2023 ANNUAL REPORT | III

Core & Main is a leader
in advancing reliable infrastructure
with local service, nationwide.
As a leading specialized distributor with a focus on water,
wastewater, storm drainage and fire protection products,
and related services, Core & Main provides solutions to
municipalities, private water companies and professional
contractors across municipal, non-residential and residential end markets, nationwide.
St. Louis, MO
$6.7 Billion
Headquarters
FY23 Net Sales
~335
60,000+
Branches
Customers
~5,000
200,000+
Employees
SKUs
Branch Locations
Corporate HQ
Deep & Differentiated Product Portfolio
FISCAL 2023 ANNUAL REPORT | IV



shareholder letter icon 5/14/2024 Letter Continued (Full PDF)
 

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