Richelieu Hardware Ltd Q2 2021 Earnings Call Transcript

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

Question: Meaghen Annett - TD Securities Equity Research - Analyst : So looking at the EBITDA margin, a really strong performance there in the quarter. Are there any onetime benefits that you would call out here? And as we think about the rest of this year and fiscal '22, just on an annual basis, can you maybe update your thoughts on where you see the EBITDA margin trending maybe relative to 2019?

Question: Meaghen Annett - TD Securities Equity Research - Analyst : Okay. And just thinking about input costs and price increases, Richard, I think you touched on this a little bit. So I think we're in a fairly unique environment here where we've seen costs rise at a rapid pace, but then we're also seeing some relief now on the cost side. So how do you manage pricing with the customer in an environment like this? And do you see any reluctance to purchase from customers in an environment such as this?

Question: Meaghen Annett - TD Securities Equity Research - Analyst : Okay. And just last question. So in light of some of those global supply chain challenges, can you just talk about your approach to inventory management? Are you seeing any challenges there in sourcing key products? And then as we see some of that slowdown take place or maybe more of a normalization with the retailers, how do you plan for that from an inventory standpoint in terms of your purchases?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : Congrats on the quarter. So you've got a great pace of M&A set up thus far in 2021. Can you tell me a little bit about the pipeline? And if you think you can keep up that pace?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : Great news. And you've really got cash burning a hole in your pocket at this point. Any plans for a substantial dividend hike or more significant activity on the NCIB?

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : Great color. And then in terms of the expansion in the U.S., what kind of expenditure do you expect over what time line? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 08, 2021 / 6:30PM, RCH.TO - Q2 2021 Richelieu Hardware Ltd Earnings Call

Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst : That's great. And then just one last one for me. We've already talked quite a bit about margins on the call. But could you help us break out how much is really torque on the higher top line? And how much is a reduction in your overall central cost structure? And there's also some gross margin left in there. Is that correct?