Richelieu Hardware Ltd.

Good afternoon, ladies and gentlemen, and welcome to ReShutter Hardware First Quarter Results Conference Call. At this time, note that all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session, which will be restricted to analysts only. If at any time during this call you require immediate assistance, please press star zero for the operator. Also note that this call is being recorded on April 9, 2026. Bonjour, Mesdames et Messieurs, et bienvenue au résultat du premier trimestre 2026 de quinquennat 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, veuillez appuyer sur étoile et zéro. Veuillez aussi prendre note que cet appel est enregistré le 9 avril 2026. I will now give the floor to Mr. Richard Lahr, President and Director-General.

The floor is yours. Thank you. Good afternoon, ladies and gentlemen, and welcome to Richard Lahr's conference call for the first quarter ended February 28, 2026. With me is Antoine Auclair, CFO and CEO. As usual, note that some of today's remarks include forward-looking information, which is provided with a usual disclaimer, as reported in our financial trainings. During the quarter, we maintained our growth momentum with good results. After a strong year of acquisition in 2025, we completed our first acquisition of 2026 in December, adding three distribution centers of mechanical Americans in Oregon and Washington State. As previously announced, additionally, we signed two letters of intent for new acquisition in Canada. quarterly sales increased by 5% to $463.6 million. Excluding the impact of the Canadian dollar's appreciation against the U.S. dollar, the increase in sales would have been 7%. This growth reflects both the solid contribution of our manufacturers market in Canada and in the U.S., where sales rose 6% to $408.2 million, and the contribution from acquisitions which accounted for 3% of total sales growth. Our strategies of innovation, acquisition, distinctive service and market segment diversification have successfully offset supply sector slowdowns. In fact, the hardware, the hardware repairers market, sorry, let me, in fact, the hardware repairers and innovation superstructure market Sorry, my iPad had a problem. Decline by 1.9% compared to the same quarter of 2025. Sales total 55.4 million. Reflecting a slowdown in Canada, where sales decreased by 6% while in the U.S., they rose by 21% in U.S. and Europe. Our EBITDA increased by 1.9%, but would have been up 5.6% if we exclude the FX impact. with also an EBITDA margin slightly higher than last year. Net income rose 4% to $0.26 per share. I am pleased and proud to note that during the quarter, Richerieu was awarded two prestigious top prices at the best of KBIT's 2026 trade show in Orlando, Florida. An annual industry-wide global event that recognizes the most innovative kitchen and bathroom solutions. These awards demonstrate our commitment to always being first to bring innovative products to market, thereby helping to drive the market forward. Our decorative artwork collection, Atypica, received silver in the style statement category. This exclusive collection, created in collaboration with our long-term Italian partner, redefines autumn sleek design. In addition, We earned gold in the wellness trailblazer category for the RETI 440 motorized system for cabinets and closets. This unique innovative system is designed to enhance mobility, safety, and autonomous living in any environment. Antoine, we now review the financial highlights of the first quarter.

Thanks, Richard. First quarter sales reached $463.6 million. up 5%, driven by 2% internal growth and 3% contribution from acquisitions. Sales to manufacturers stood at $408 million, up 6%, including 3.1% from internal growth and 2.9% from acquisitions. In the hardware retailers and renovation superstores market, sales total $55.4 million, down 1.9%. In Canada, sales amounted to $249.8 million, up 3.4%. Our sales to manufacturers reached $206.3 million, and hardware retailers and renovation superstores market, sales stood at $43.5 million, down 6%. In the U.S., sales grew to $155.6 million in U.S. dollar, up 11.3%, reflecting 6.4% in total growth, and 4.9% from acquisitions. In Canadian dollar, sales in the US reached 214 million, an increase of 6.8%, representing 46% of the total sales. First quarter EBITDA reached 43.2 million, up 0.8 million, or 1.9%, despite a negative foreign exchange impact of 1.6 million due to currency fluctuations. The EBITDA margin stood at 9.3% compared to 9.6% last year. First quarter net earnings attributable to shareholders totaled $14.4 million, an increase of 3.6% from the first quarter of 2025. Diluted net earnings per share was $0.26 compared to $0.25 last year, an increase of 4%. First quarter cash flow from operating activities before net change in non-cash working capital balances was 37.9 million or 69 cents per diluted shares. The net change in non-cash working capital used cash flow of 21 million, mainly reflecting the increase in inventories, which is a normal seasonal fluctuation for this period of the year. As a result, operating activities provided a cash inflow of 17.1 million compared to a cash inflow of 3.7 million in the first quarter of 2025. We paid dividends of 8.6 million to shareholders, and we invested 13.2 million, including 10 million for one business acquisition, and 3.2 million in capex. At the end of the quarter, financial situation was healthy and solid, with working capital of 625.7 million, and almost no debt. I now turn it over to Richard.