Good afternoon, ladies and gentlemen, and welcome to Richelieu Hardware first quarter results conference call. At this time, 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 the call is being recorded on April 7th, 2022. Merci. Thank you. Good afternoon, ladies and gentlemen, and welcome to Richelieu's conference call for the first quarter ended February 28, 2022. With me is Antoine Auclair, CFO. Richelieu 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 impact of our acquisitions 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 acquisitions, an increase of 14.8% 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 the first period with a sound financial position and an average return on equity of 24%. As for the expansion achieved in the quarter, 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 Compi Distributors in Illinois and Missouri, HGH Hardware Supply in Alabama, Tennessee, and Georgia, and National Builders Hardware in Oregon, and a combined CAD 100 million in sales on an annual basis. With the five previously completed in 2021, CAD 180 million in yearly sales are added, along with access to new territories, new customers, and teams that know 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 CAD 384.5 million, up by 29.2%, of which 16.3% from internal growth and 12.9% from acquisitions. Sales to manufacturers totaled at CAD 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 CAD 57.8 million, up CAD 1.9 million or 2.4% 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 CAD 230.5 million, up by 19.3%, of which 13.2% from internal growth and 6.1% from acquisitions. Our sales to manufacturers reached CAD 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 totaled at CAD 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, up 48%, 22.5% from internal growth, and 25.5% from acquisitions. They reached CAD 154 million, an increase of 48% and represented 40% of total sales. Sales to manufacturers reached $110 million, up by 58.8%, 29.3% from internal growth and 29.5% from acquisitions. 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 CAD 53.7 million, up CAD 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 CAD 30.1 million, up 43.4%. Diluted net earnings per share rose to CAD 0.53 compared with CAD 0.37 last year, an increase of 43.2%. First quarter cash flow from operating activities before net change in working capital balances amounted to CAD 42.6 million or CAD 0.75 per share, an increase of 38.5%. Net change in non-cash working capital balances used cash flow of CAD 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 CAD 7.3 million to shareholders, and we invested CAD 46.2 million, including CAD 42.4 million for three business acquisitions and CAD 3.8 million in CapEx. I now turn it over to Richard. Thank you, Antoine. In the coming quarters, we pursue the integration of our eight recent acquisitions. To better serve our market and respond to demand, we will continue to expand our U.S. network. In addition to the 2021 expansion in Detroit, Reading, Boston, Orlando, Dallas and Rochester, we will finalize the expansion of our Fort Myers, Atlanta and Chicago centers. We are keeping our focus on our value-added multi-access service and our main growth driver, which are our new, our innovation and acquisition strategies and market penetration in Canada and the U.S. This year, we will always remain customer, innovation, and result-oriented. Thanks, everyone. We'll now be happy to answer your question. Thank you, Richard Lord. Ladies and gentlemen, if you would like to ask a question, which is restricted to analysts today, you will need to please slowly press star followed by one on your touch-tone phone. You will then hear a three-tone prompt acknowledging your request. If you would like to remove yourself from the question queue, please press star followed by two. If you're using a speakerphone, you will need to lift the handset before pressing any keys. Please go ahead and press star one now if you have any questions. [Foreign language] Please press star followed by one if you have any questions. Your first question will be from Meaghen Annett at TD. Please go ahead. Thank you. Good afternoon. First question on the EBITDA margin in the quarter. Understanding that Q1 is a seasonally weaker period, is there anything to note that pressured the margin in the quarter? Would you expect to remain above the 13.5%-14% level in the near term? Yeah, it's Antoine speaking. The answer to your question is yes, we expect it to remain over the thresholds you just mentioned. There's nothing specific. It's really important to understand that the EBITDA margin in Q1 is historically the lowest one. The Q1 is a softer period compared to the next period. Historically, it's always been the case. In terms of what you're hearing from your customers, on the residential side, are customers noting any weakness in light of the current macro environment? Are you seeing any change in their tone given the rising interest rate environment and perhaps inflationary headlines? If you could also just talk to your exposure in institutional markets and any trends you're seeing from customers servicing those end markets as well. For all the market that we're servicing, whether it is residential or commercial, it seems that our customers are still quite busy. While consulting our salespeople, they keep saying us that the customers are probably busy until the end of the year, at least. We never know about 2023. It's too early. We only know that the shipping period, you know, has been shortened. The shipping kitchen cabinet, you know, three months ago would take eight months. Now the delay would be four to five months. It means that it's improving, but also there are many projects that has been postponed as well that will be coming back to the market. Regarding the commercial, those things, it remains very strong because of the infrastructure for the government, whatever it is, schools, you know, whatever. You know, the governments and institutions, they have huge budget actually for infrastructure, which generates some pretty good business. We're also extending in various market like the closet, in which our sales increased something like 40% so far still this year. The RV market, you know, that's a new market for us. We have the good surprise to see that our sales growth in this market are very interesting and will continue to grow in the future. We even have added a new sales force just to cover the RV market in the U.S. because this is a huge market and this is market that is presently very busy. Basically, we expect, you know, the trend to continue on for the rest of the year, but we never know about 2023. We're optimistic because many project has been postponed. I think the COVID is not 100% finished, so people will be traveling probably less and go less to the restaurant as well. They will probably undertake other project, like the closet, the kitchen cabinets, the bathroom, while the commercial will remain to be strong in the future as well. That's about what I could say, what I could comment about the situation. Great. The last question for you, Richard. You have mentioned previously that annual sales of CAD 2 billion would be achievable for the business. Can you put some context around that commentary, including when you see that being achieved and also the drivers behind it in terms of organic growth and acquisitions? Thank you. We already have reached CAD 1.4 billion. It's easy to you know forecast the growth of this year, and it's easy to see where we're gonna be at the end of 2022. Let's say that 2023 is also a decent year with a growth, let's say like 10%, including acquisition and everything else. Because that can easily come to CAD 2 billion. In the U.S. actually I think our team in the U.S. is on fire. Because the target you know it's a target among us between us here is to reach CAD 1 billion only in the U.S. That's optimistic for the short term, but we have reached an important, you know, stepping stone, this month, this quarter, because we have reached 40% of our sales now, 40% of our total sales are in the U.S. The goal has always been to be at least 50%, so we're getting close. Last year we were at something like 35% at once, if I remember well. Yes. If we can keep up with that 40%, that's really encouraging. I can tell you one thing, our team in the U.S. is on fire. Thank you. That's all for me. Thank you. Next question will be from Hamir Patel at CIBC Capital Markets. Please go ahead. Hi, good afternoon. Richard, could you give us a sense as to how your sales in the month of March fared for both manufacturers and retailers? We're in the same trend as we were in the first quarter so far. It seems to be continue on like that. We expect that to continue at least for the present quarter. Okay, great. Thanks. That's helpful. Richard, you pointed out a pretty positive picture across your various end markets. You know, I'm sure you've seen some of the reports of disappointing R&R demand, at least for wood products. I was curious, you know, do you think perhaps that's more a story of weakness in the DIY category where you have less exposure? Or is it potentially a sign of weakness ahead for your own business, just given that, you know, maybe the wood products are installed earlier in a renovation process than your categories are? Regarding the price of the wood, if you look at the residential market, I was speaking with contractors last month, and they were saying to me that, you know, the building material including wood, the wood is about 20% of a house, while the building materials in general are 60%, including the wood, and the labor is 60%. Basically, you know, the cost for a house and the renovation is still not that bad. Regarding the retail market, I think the market is just back to where it should have been, like it was before the pandemic. So far this is what we see. We, if you remember last year, we had two strong first quarter and two weak last quarter. I guess it's gonna be difficult to reach the level of last year for the present quarter, I mean, the second quarter. For the last two quarters, we should do better than last year because we see, we look at the sales. Sales are normal actually. We have, as a matter of fact, it does include some inflation, but we have an increase and we will have a slight increase in the second quarter, including, you know, the acquisitions. In the second quarter, that should be much better. I don't know if I answered well your question? But this is what I understood. Okay. No, that's helpful. Just last question from me. You know, Richard, just given the growing concerns, especially in the U.S. about rising mortgage rates and what that could mean for housing, are you seeing signs of some of the acquisition targets that you've you know had discussions with maybe being more inclined to wanna transact this year? What we have seen actually, I think we've made three wonderful acquisition in December 31st, 2021. I think these guys, they have sold their business because they thought probably that they were at the top of what they can reach in terms of results. If the market, you know, is cooled down a little bit, are there some other distributor that will decide to sell? Probably, yes. We don't know yet. For the time being, our pipeline is still interesting, but we need more beef in terms of those acquisitions like the one that we've made last year. That should come in the course of the year. We are on the lookout 100%. We have a team that is dedicated 100% for the acquisitions and hope that we're gonna have a good year for that as well. Okay, great. Thanks. That's all I had. I'll turn over. Thank you. Once again, if you are an analyst and would like to ask a question, please press star followed by one. Your next question will be from Zachary Evershed at National Bank. Afternoon, guys. Thanks for taking my questions. Yeah. Given the inflation that we're seeing ahead, can you give us an idea of the cadence of 2022 price hikes that you're planning? Yeah. We're talking, if you look at the first quarter, we're talking somewhere around 12%. As you know, Zach, we are a very flexible pricing system. If we see increases in product costs, we're gonna be adjusting prices. That's what we've always been doing. At this point in time, not really any further price hikes in the pipeline? As we speak, nothing in the pipeline, but if we need to, we'll do it. Understood. On the sourcing front, can you give us an idea of whether you're seeing any improvements in either freight costs or just some general unlocking in logistics? We don't see any improvement in the freight costs. I think we see that getting worse and worse and worse. Fortunately, though, I guess you have seen that we have increased our inventory. You know, I think as one, you know, has not lost control, but his inventory has increased something like what compared to last year, Antoine? A lot. A lot. I think CAD 60 million-CAD 75 million? Yeah. I think it's very positive. I think it's a very positive risk because we expect the, you know, the procurement to be more difficult in the couple of months to come because of whatever delays in freight and transportation, in the various problems with some Asian suppliers. Not because it's our suppliers, because it's problems typical to Asia as we speak now. I think it's good to have a little bit more inventory at this time of the period. I think that should continue to more sales, and that should contribute as a big advantage compared to some of our competitors, mainly in the U.S. That's helpful. Thanks. One last one. On National Builders, how big is the machinery business there? And in terms of a margin profile, how does it compare to the rest of the business? And do you see any further growth in this area? Well, it's non-material, Zach. Okay. Thank you very much. I'll turn it over. Thank you. At this time, Monsieur Lord, we have no further questions. Please proceed. Thanks, everyone. It's always a pleasure to talk to you. We look forward to meet you in person, hopefully as soon as possible in the course of 2022. Bye-bye, and have a good rest of the afternoon. Thank you. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending, and at this time, we do ask that you please disconnect your line.