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: Meaghen Annett - TD Securities Equity Research - Analyst
: Just looking at the EBITDA margin, very strong again this quarter. Can you just give some color maybe around the cost containment initiatives that
might be contributing to that performance? Are there any costs you anticipate to maybe come back as we hopefully continue to manage through
the pandemic things like travel? And is there any color you can give us around your margin expectations for Q4?
Question: Meaghen Annett - TD Securities Equity Research - Analyst
: Okay. Great. And then just looking at the inventory position. So it was a pretty sizable increase there. Can you maybe just talk about the rationale
for the magnitude of the increase? And just how you plan to manage that, assuming you continue to see sales at retail tapering off?
Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst
: How long of a tail do you see on the professional market before it also pulls back to prepandemic levels? You mentioned a few quarters given the
cost inflation we've seen postponing some projects. Do you have a number in mind?
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OCTOBER 07, 2021 / 6:30PM, RCH.TO - Q3 2021 Richelieu Hardware Ltd Earnings Call
Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst
: That makes sense. And then your inventories ticked up, which is good. But would you say that you're having any difficulty sourcing certain products?
And is that constraining your organic growth in any areas?
Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst
: Got you. And then could you just compare and contrast? You have this open bar policy where no matter where it is in the country, your customers
will get it and RCH will absorb that cost and you have RCH absorbing the cost for higher-priced containers and airfreight as well. But then you have
these fantastic margins reported in the quarter from cost containment and higher gross margins. So how long do you think you can drive that?
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OCTOBER 07, 2021 / 6:30PM, RCH.TO - Q3 2021 Richelieu Hardware Ltd Earnings Call
Question: Zachary Evershed - National Bank Financial, Inc., Research Division - Analyst
: Great color. And just one last one for me. The acquisition pipeline. How is it shaping up for the rest of the year and for 2022. And with the Pennsylvania
acquisition expanding your panel offering, do you see any major acquisition opportunities in similar markets?
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