Richelieu Hardware Ltd Q1 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : Congrats on the great quarter. It looks like great wins in sales to retailers in the quarter. Can you tell us if there was a high proportion of cyclical sales that won't repeat in Q2?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : That's helpful. And then drilling down into the big increase in EBITDA margin in Q1, 280 basis points year-over-year. Can you give us an idea of how much was attributable to sustainable cost containment? And how much was better operating leverage? And what your views are on both of those going forward?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : Understood. And then looking back over the last decade or so, Q2 margins have generally been 150 to 200 basis points stronger than Q1. But given how strong Q1 was this year, do you still believe that seasonality will apply?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : Absolutely, and it's going great so far. And then your sales stepped up 19%, but your inventory has barely moved. So have international freight issues been causing any delays in shipments from Asia or Europe? Are you expecting to restock?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : And then on the topic of that increase in freight costs, how the rollout of the price hike going so far?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : Oh, sorry. How is the rollout of the price hike going so far?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : And then on your acquisitions, very quick start to the year, great to see that. How active is the pipeline for the rest of the year compared to that?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : Got you. And then on the 2 undisclosed acquisitions, would they be active in manufacturers markets or do they sell through retailers?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : Understood. And then 1 last 1 for me. Are you noticing any increase in acquisition target expectation, given how strong the renovation market is now?