Core & Main Inc Q2 2023 Earnings Call Transcript

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

Question: Patrick Michael Baumann - JPMorgan Chase & Co, Research Division - Analyst : First one on operating costs, SG&A. Could you just talk about your ability to manage those expenses in the current environment? I imagine you're still seeing some inflation with respect to people costs as well as facility costs. I'm just curious how you think about that bucket of cost. Maybe if you want to talk about it fixed versus variable or however you think is relevant in the performance in the quarter as well as your expectation to be able to manage it over the next -- for the rest of the year, I guess.

Question: Patrick Michael Baumann - JPMorgan Chase & Co, Research Division - Analyst : Helpful. And then maybe just one on the balance sheet and capital allocation. So the leverage, I think, is 1.7x as of this quarter. Just remind us what the target financial leverage is for the company and how to think about your priorities for capital allocation, especially kind of just wondering if you can update us on the pipeline from an M&A perspective.

Question: Patrick Michael Baumann - JPMorgan Chase & Co, Research Division - Analyst : Sorry, just one follow-up there, just more related to cash. On inventory, how much inventory still opportunity is there from a normalization perspective? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 06, 2023 / 12:30PM, CNM.N - Q2 2023 Core & Main Inc Earnings Call