Core & Main Inc (NYSE:CNM) stock fell 4.97% (As on December 14, 12:02:26 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22. Net income increased 63.3% to $178 million. Adjusted EBITDA (Non-GAAP) increased 45.5% to $275 million. Adjusted EBITDA margin (Non-GAAP) increased 160 basis points to 15.1%. Net cash provided by operating activities increased $121 million to $154 million. The improvement in operating cash flow was primarily driven by higher operating income and lower investment in working capital, partially offset by a $31 million increase in tax payments due to higher income before provision for income taxes. Net Debt Leverage (Non-GAAP) declined to 1.7x as of October 30, 2022. The company has closed four acquisitions during and subsequent to the quarter: Inland Water Works Supply Co., the municipal waterworks division of Trumbull Industries and an affiliated entity (collectively “Trumbull”), Distributors, Inc. and Lanier Municipal Supply Co. As of October 30, 2022, Core & Main had total liquidity of $1,151 million, consisting of excess availability under the Senior ABL Credit Facility, which is net of $90 million of borrowings and approximately $9 million of outstanding letters of credit.

CNM in the third quarter of FY 22 has reported the adjusted earnings per share of 65 cents, beating the analysts’ estimates for the adjusted earnings per share of 57 cents. The company had reported the adjusted revenue growth of 29.4 percent to $1.82 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $1.71 billion. The increase in net sales was primarily attributable to price inflation, volume growth and acquisitions, with price inflation representing approximately three-fourths of the net sales increase. The volume increases were driven by market volume growth, which helped drive growth across all product lines, and share gains from the execution of our sales initiatives. Net sales growth for pipes, valves & fittings and storm drainage products benefited from price inflation, end-market growth and acquisitions. Net sales growth for fire protection products also benefited from price inflation and end-market growth. Net sales growth for meter products benefited from higher volumes due to improving supply chains for semi-conductor chips, which are components of certain smart meter products.

The company has raised expectation for fiscal 2022 Adjusted EBITDA to be in the range of $910 to $930 million, representing year-over-year growth of 51% to 54%.