On January 03, Core & Main Inc. (CNM) launched an underwritten secondary public offering. Consequently, the stock plunged deep after hours on Monday.
During the regular session, the stock traded in the green with a small gain of 1.45%. After closing the session at $30.78, CNM stock became bearish in the after-hours on the emergences of the news. Hence, the stock fell down to $28.20, with a loss of 8.38% at 25.51K shares after hours.
Core & Main Inc. distributes water, wastewater, storm drainage, and fire protection products, and other related services. Currently, its 169.07 million outstanding shares trade at a market capitalization of $7.46 billion.
CNM’s Secondary Offering
The company has launched 20,000,000 shares of its Class A common stock (by some selling stockholders) in an underwritten secondary public offering. Moreover, a 30-day option for buying 3,000,000 additional shares of the company’s stock is also expected to be granted.
Furthermore, the lead book-running managers of the offering are Goldman Sachs & Co. LLC, Credit Suisse, and J.P Morgan.
In addition, CNM won’t be receiving any proceeds from the offering.
Acquisition of Catalone Pipe & Supply
On November 08, the company announced the closing of the previously announced Catalone Pipe & Supply acquisition. Catalone Pipe & Supply has a wide variety of products including water, wastewater, electrical conduits, and concrete catch basins. Furthermore, the concrete catch basins are essential to the drainage system of stormwater.
According to the CEO of CNM, Steve LeClair, this acquisition will expand the company’s waterworks product offering to the Northwest region as Catalone is based in Pennsylvania.
Moreover, Jack Schaller, president of CNM, also welcomed Catalone to the CNM family.
CNM’s Fiscal 2021 Q3
On December 07, the company declared the financial results for the third quarter of fiscal 2021, which ended on October 31.
In the third quarter of fiscal 2021, CNM generated sales of $1,404.8 million against $1,012.5 million in the year-ago quarter. This shows an increase of $392.3 million or 38.7% year over year.
Moreover, the company had a net income of $109.3 million in the third quarter of fiscal 2021. This shows an increase of $87.7 million or 406.0% against $21.6 million in the year-ago quarter.
In addition, the third quarter of fiscal 2021 saw an increase of 51.6% or $126.2 million in gross profit. Consequently, the gross profit was $370.6 million in the Q3 of fiscal 2021, against $244.4 million a year ago.
