Richelieu Hardware Ltd.

Good afternoon, ladies and gentlemen, and welcome to Richelieu Hardware first quarter results conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session, which will be restricted to analysts only. And if at any time during this call you require needed assistance, please press star zero for the operator. Also note that the call is being recorded on April 7, 2022. Bonjour, mesdames et messieurs, et bienvenue. au résultat du premier trimestre de quincaillerie richelieu. Présentement, vos lignes sont en mode d'écoute seulement. Suite à la présentation, nous allons procéder à une période de questions et réponses qui sera restreinte aux analystes seulement. Si vous avez besoin d'assistance au cours de l'appel, appuyez sur l'étoile et le zéro. Veuillez prendre note que cet appel est enregistré le 7 avril 2022. J'aimerais maintenant céder la parole à M. Richard Lord, président et chef de la direction. La parole est à vous, monsieur.

Merci, thank you. Good afternoon, ladies and gentlemen, and welcome to RicherU's conference call for the first quarter ended February 28, 2022. With me is our CFO. RicherU started 2022 on a very positive track, as shown by the organic growth and expansion through acquisitions in the first quarter. The financial performance of the quarter is all the more significant since the first three months of the year are historically our weakest. Driven by our strong network of interconnected centers, our innovation and value added service strategies, the input of our acquisition and our market penetration initiatives, we have seen the opportunities of our diversified market. Our results are quite satisfactory with an increase of 29.2% in sales from solid internal growth and a substantial contribution from acquisition. an increase of 40.8% in EBITDA and 43.2% in net earnings per share. I would like to point out that our sales in the U.S. now represent 40% of our total sales. We ended that first period with a sound financial position and an average return on equity of 24%. As for the expansion achieved in the quadrant, following the five acquisitions completed in Canada and the U.S. in fiscal 2021. On December 31st, we completed three additional acquisitions in the U.S. As previously announced, I would recall that the three acquisitions of CompuDistributors in Illinois and Missouri, HGH Hardware Supply in Alabama, Tennessee, and Georgia, and National Builders Hardware in Oregon, and a combined $100 million in sales on an annual basis. With the five previously completed in 2021, $180 million in yearly sales are added, along with access to new deliveries, new customers, and things that now their respective market very well. I will now turn it over to Antoine for a review of the results and the financial situation for the quarter.

Thanks, Richard. First quarter sales reached 384.5 million, up by 29.2%, of which 16.3% from internal growth and 12.9% from acquisitions. Sales to manufacturers threw it at 326.7 million, up by 35.2%, of which 21.8% from internal growth and 13.4% from acquisitions. In hardware retailers and renovation superstores market, We achieved sales of 57.8 million, up 1.9 million, or 3.4%, due to acquisition and despite a 7.6% internal decrease over sales in the first quarter 2021, which were up 34.5%. In Canada, sales amounted to 230.5 million, up by 19.3%, of which 13.2% from internal growth and 6.1% from acquisitions. Our sales to manufacturers reached $186.7 million, up by 21.9%, of which 17.7% from internal growth and 4.2% from acquisitions. As for the hardware retailers and renovation superstores market, sales stood at $43.8 million, up 9.5%, of which 13.8% from acquisition and 4.3% of internal decrease. In the U.S., sales grew to 121.2 million U.S. dollars, up 48%, 22.5% from internal growth, and 25.5% from acquisitions. They reached 154 million in Canadian dollars, an increase of 48%, and represented 40% of total sales. Sales to manufacturers reached 110 million in U.S. dollars, up by 58.8%, 29.3% from internal growth, and 29.5% from acquisition. In the hardware retailers and renovation superstores market, sales were down 12% from the corresponding quarter of 2021, which were up 32%. First quarter EBITDA reached 53.7 million, up 15.6 million, or 40.8% over the first quarter of 2021. The gross margin was slightly better, and the EBITDA margin improved to 14% compared to 12.8% last year due to the increase in sales and continued control of expenses. First quarter net earnings attributable to shareholders totaled $30.1 million, up 43.4%. Diluted net earnings per share rose to 53 cents compared with 37 cents last year, an increase of 43.2%. First quarter cash flow from operating activities before net change in working capital balances amounted to 42.6 million or 75 cents per share, an increase of 38.5%. Net change in non-cash working capital balances used cash flow of 80 million mainly due to investment in inventory as a result of the increased demand and to a lesser extent to the higher cost of some products. We paid dividends of 7.3 million to shareholders and we invested $46.2 million, including $42.4 million for three business acquisitions and $3.8 million in CapEx. I now turn it over to Richard.