Good afternoon, ladies and gentlemen, and welcome to Richelieu Hardware first quarter results conference call. At this time, all lines 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. This call is being recorded on April 6th, 2023. Merci. Thank you. Good afternoon, ladies and gentlemen, and welcome to Richelieu's conference call for the first quarter ended February 28, 2023. With me is Antoine Auclair, CFO. As usual, note that some of today's issue include forward-looking informations which is provided with the usual disclaimer as reported in our financial filings. We started 2023 with good result for the first quarter, and we are pleased to have seized new acquisition opportunities as we completed four transactions in Canada earlier this quarter and one in the U.S. on April 3. It's important to note that the comparative numbers of 2022 were exceptionally strong, benefiting from the business context resulting from the pandemic. Just in the first quarter of last year, sales increased by 29.2% and EBITDA by 14.8%. In the first quarter of 2023, our sales increased by 4.8% or CAD 18.5 million, including 1.8% organic growth and 3% from acquisition to CAD 403 million. We are also proud to mention that our U.S. sales now represent 43% of our total sales. With the acquisition of Quincaillerie Rabel Inc., Trans-World Distributing, Unigrav and Usimm in January 2023, we strengthened our presence in Eastern Canada. After the end of the quarter, we completed the acquisition of Maverick Hardware in Eugene, Oregon, which reinforced our presence in this market, where we already operated a distribution center in Portland. With these five acquisitions, we add CAD 22 million in annual sales, new customers, complementary product, and teams that are experienced in their market. The expansion, modernization, and opening of centers in the U.S. have progressed well, including Atlanta, Nashville, Pompano, Seattle, and Chicago. We moved our Fort Myers operation to a brand-new building, and our new location in Carlstadt, New Jersey, and Minneapolis are now open for business. In addition, by the end of the year, we will consolidate two centers in the Calgary area, in which we will include a first-class showroom while increasing our service capacity in Western Canada. Following these recent developments, we are now operating 113 interconnected centers, 50 in Canada, 60 in the U.S., +2 manufacturing facilities in Canada. Antoine will now review the financial highlights of the quarter, and then I will conclude, and we'll take your questions. Thanks, Richard. First quarter sales reached CAD 403 million, up 4.8%, of which 1.8% from internal growth and 3% from acquisitions. In comparable currency to Q1 2022, total sales growth would have been 2.2% for the quarter. Sales to manufacturers stood at CAD 344 million, up 5.4% of which 2% from internal growth and 3.4% from acquisitions. In hardware retailers and renovation superstores market, we achieved sales of CAD 59 million, up CAD 0.8 million or 1.4%. In Canada, sales amounted to CAD 251 million, same as last year. Our sales to manufacturers reached CAD 185.5 million. In hardware retailers and renovation superstores market, sales stood at CAD 45.4 million, up 2.4%. In the U.S., sales grew to $127.7 million, up 5%, all from acquisitions. They reached CAD 172 million, an increase of 11% and represented 42.7% of total sales. Sales to manufacturers reached $118 million, up 6.2%, 0.7% from internal growth, and 5.5% from acquisitions. In hardware retailers and renovation superstores market, sales were down 10.6% from the corresponding quarter of 2022. First quarter EBITDA reached CAD 29.1 million, down CAD 4.6 million or 8.6% over the first quarter of 2022. Gross margin remained stable, and the EBITDA margin was 12.2% compared to 14% last year. First quarter net earnings attributable to shareholders totaled CAD 22.4 million, down 25.6%. In addition to the fact that 2022 first quarter was a period where our financial results were especially strong. The factors that also affected our results were mainly the retain of operating expenses closer to pre-pandemic levels, as well as outside warehousing costs due to temporary inventory increase, amortization and costs related to our U.S. expansion projects, as well as the interest rate on the line of credit. Diluted net earnings per share was CAD 0.40 compared to CAD 0.53 last year. First quarter cash flow from operating activities before net change in non-cash working capital balances was CAD 38 million or CAD 0.68 per value per share. The net change in non-cash working cap used cash flow of CAD 22 million, mainly reflecting the decrease in accounts payable and tax payable, while accounts receivable represented a cash inflow of CAD 8.4 million. As a result of operating activities represented a cash inflow of CAD 16.5 million compared to cash outflow of CAD 37.5 million in Q1 2022. Regarding our working free position, as indicated last January, inventory levels stabilized in February and started to decrease thereafter. We paid dividends of CAD 8.4 million to shareholders, and we invested CAD 22.3 million, including CAD 16.8 million for four business acquisitions and CAD 6.5 million in CapEx. At the end of the quarter, financial situation was healthy and solid, with working capital of CAD 564.9 million and an average return on shareholders' equity of 21%. I now turn it over to Richard. Thank you, Antoine. We are confident we will seize and create new short and long-term growth opportunities and deliver solid future results. We stay alert and are monitoring market conditions while keeping a disciplined approach in cost control. We will build our strengths with the exceptional quality of our team, the distinctive quality of our service, our ability to innovate, to pursue strategic acquisition and to integrate them efficiently, while using our flexibility to adapt to changing market conditions. Richelieu remains customer, innovation, service, and results-oriented. Thanks, everyone. I'll be happy to answer your question. Thank you. Ladies and gentlemen, we will now take questions from our analysts. Should you have a question, please press the star followed by the one on your touchtone phone. If you'd like to withdraw your question, please press the star followed by the two. If you're using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Your first question comes from Hamir Patel from CIBC Capital Markets. Please go ahead. Hi, good afternoon. Good afternoon. Could, could you comment on how demand has fared in March for the both on the manufacturer's side and retailers segment? Yeah. The demand for the month of March as we speak, was high single digit down, which is still really good performance considering that last year for the same month, we had an increase of, remember that, Antoine? 18%. 18% for the month of March organic growth. Basically we compare ourselves with the base, with the best month ever. The last month of March 2022 was our best month ever in this company. We sold something like CAD 113 million. Basically we're quite satisfied with the current sales performance in despite of seeing, you know, a high single digit decline on sales. In the circumstances, we still thing is very good. Okay. Richard, that's helpful. The high single digit decline, how much of that is price versus volume? Nothing. We have not seen any price deflation. We've managed the business, you know, to make sure that our pricing was stable for the quarter and for the month of March as well. So far we didn't see any deflation in our pricing. Richard, you only look back in recent years, there's been quite a big increase in organic growth. You know, I don't know if you have the figure on hand, but do you have a sense as to, from the sort of beginning of the pandemic, you know, kind of early 2020, how much price inflation you've seen through your results and what amount, what type of deflation would you still expect to play out just given maybe pass-throughs on freight, and you know, some moderation maybe on some products? Inflation last year in 2022, I think was something like 10% due to the price increasing because of the what you mentioned for the freight. We see the freight now being, coming back to normal. We don't receive much inventory as we speak because we still have to decrease the inventory that we already have on hand with the, which is already a price at the high cost. All the competitors are in the have to live with the same circumstances. The sales are still maintaining good, we expect, you know, to turn to have one turnover on inventory close to before the end of the second quarter. Things should improve. Also we have to consider that we price our inventory based on average cost. Basically it's going to be almost a full year before the cost come back to where it should be as a normal costing. Again, that's not negative because that does apply to any business in the, you know, in the world. We have to live with the same circumstances. Basically, that's about it. Okay. No, thanks. That's helpful. Just the final question I had, Antoine, you know, it's been kind of with another quarter of visibility. Do you have a sense as to, you know, where you would expect EBIT and margins to stabilize? You know, I'm just thinking maybe on a 2024 basis. No 14, Hamir. Below 14. Okay, that's great. That's all I have for now. I'll turn it over. Thanks. Thank you. Ladies and gentlemen, as a reminder, should you have a question, please press the star followed by the one. Your next question comes from Zachary Evershed from National Bank Financial. Please go ahead. Thank you. Good afternoon. Thanks for taking my question. Good afternoon. You mentioned that March organic growth was down high single digits, but perhaps there's a lower bar in the other months for the quarter since it was an all-time high in March. What are your hopes for the pace of organic growth in the quarter as a whole? Again, the second quarter last year was very strong in terms of growth as well. there's no way we're gonna match the growth that we had last year. what we see now, I guess it's the trend that we're gonna see for the quarter. Antoine, what would you say about that? The growth was what for the total? The second quarter growth last year was 11% in Canada. I'm talking about the internal growth and 23% in the U.S. It was very, very strong. Basically, if we maintain the performance that we had in March, I think that's still gonna be good. Hopefully, we're gonna do better. Gotcha. Inventory rose quarter-over-quarter. You're hopeful for a decline this year. Can you give us an update on how that's trending so far in Q2 and where you hope to end the year? It's the same answer as the one in January, Zach. Increase in December and January, stabilize in February, and it started to decrease in March. The plan is to decrease from CAD 660 million to CAD 60 million-CAD 80 million. That's great. Thanks. Quick questions on your organic expansion projects. For locations where there isn't a showroom in place, how much does it cost to set one up? Do all of your facilities lend themselves to an extra room being used in that way? Basically, when we make some expansion projects, we have, we have, we rent more space, and we either improve the showroom or innovate the new showroom. A new showroom would cost something like $250,000, while you know, expansion of the warehouse requires some racking. That's it. Racking, you know, for, what, a 50,000 sq ft warehouse, we are talking about maybe $200,000. That's helpful. Thanks. Zach, and Zach in the quarter, in the CAD 6.5 million CapEx, you have approximately CAD 2.5 million for all of the expansion that we're talking about, either the new ones or the ones that we're moving. Okay, that's great color. Then on those expansion projects, what's left to do in the quarters ahead? We're gonna finalize the Nashville one in the should finalize that in the second quarter. We're gonna finalize Atlanta as well, Seattle. Well, a lot of things will be moving in the second quarter. After that, it should be business as usual if we don't have any more projects. Thank you. How do clients generally respond when you consolidate facilities? Is there any loss in relationships there, or does it carry over well? Oh, I think our customer would be happy when we expand our space because they know that we're gonna have more products. Very often we add decorative board panels, for example, which our customer like very much. I can show you that type of product for you because we sell higher end decorative panels. Our customer are very well attracted by those panels because it does create more value for the product that they sell to their own customers. Basically, it's very positive. Great color. Thanks. Just one last one. Gross margin seems stable, no price and deflation yet. Could you give us more color on the return of operating expenses to closer to pre-pandemic levels? How will that impact margins in future quarters? I think that we're where we should, we should be. In the last two years, we've mentioned it. It was, the expenses were very low. People were not traveling. Promo expenses was, were very low. Now it's back in terms of payroll because the cost structure, as we showed you, is pretty simple. It's we have people and we have locations. In terms of payroll, we're where we should be. Regarding the rent, we have all of the new location in place. The rent are increasing, but we're where we should be. We are at the level required to maintain this the business volume. In terms of ops cost, in terms of%, we're still better than where we what we were before the pandemic. That's helpful. Thanks. I'll turn it over. Thank you. Richard, there are no further questions at this time. Please proceed with your closing remarks. Well, thank you very much for attending this call. If anybody wants to call us, we are really open to talk with you. Thank you very much. Ladies and gentlemen, this concludes your conference call for today. We thank you for joining, and you may now disconnect your lines. Thank you.