The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Patrick Michael Baumann - JPMorgan Chase & Co, Research Division - Analyst
: I just want to dig into that 50 to 100 basis points of temporary benefit in the gross margin, I suppose, now you're saying it's off of the first-half run
rate, which is around 26.5%. And I'm just curious, what gives you confidence that the temporary benefit is more than that?
Can you talk about your visibility to, I guess, your core performance improvement, since, I guess, pricing really took off versus kind of what you've
seen in terms of inventory profits over that period? I think you were kind of run rating at a 24.5%, 25% type of gross margin before this inflationary
period. So any additional color on that would be helpful.
Question: Patrick Michael Baumann - JPMorgan Chase & Co, Research Division - Analyst
: That's encouraging and helpful. Appreciate the comment. And then can you provide some additional color on the pipeline for acquisitions, like
the types of multiples you're seeing, the types of prospects, I mean, should we continue to expect bolt-on type deals?
And then in terms of that $95 million of M&A revenue you highlight on Slide 6, is that all now added to the guidance or just a portion? And if it's
just a portion, just curious kind of in rough terms, what percentage of that is now included in the guidance?
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SEPTEMBER 13, 2022 / 12:30PM, CNM.N - Q2 2022 Core & Main Inc Earnings Call
Question: Patrick Michael Baumann - JPMorgan Chase & Co, Research Division - Analyst
: Should we assume since it's like -- should we just assume kind of a percentage of sales based on branch count or something like that?
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