Gms Group Co., Ltd. · TSE:544A
Gms — Q3 FY2020 Earnings Presentation
17 slides from Gms's earnings presentation, Mar 5, 2020
Slide 1: Q3 FY 2020 Earnings Conference Call
March 5, 2020 Q3 FY 2020 Earnings Conference Call
Slide 2: Safe Harbor and Basis of Presentation
2 Safe Harbor and Basis of Presentation Forward - Looking Statement Safe Harbor - This presentation includes “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify forward - looking statements by the Company’s use of forw
Slide 3: Q3 Fiscal 2020 Highlights
3 Q3 Fiscal 2020 Highlights GMS’s third quarter results demonstrate our team’s momentum and effective execution Net sales in Q3 2020 increased 5.2% to $761.4 million; Organic net sales growth of 3.8% » Wallboard sales increased 5.7% (4.6% organic) » Ceilings sales increased 7.2% (4.7% organic) » Ste
Slide 4: Q3 Fiscal 2020 Performance: Net Sales & Gross Profit
4 Q3 Fiscal 2020 Performance Net Sales & Mix $723.9 $761.4 $0 $200 $400 $600 $800 Fiscal Q3 2019 Fiscal Q3 2020 41% 15% 16% 28% ▪ Net sales growth of 5.2% ▪ Organic net sales growth of 3.8% ▪ Wallboard: + 4.6% organic (Volume + 7.9%/Price & Mix - 3.3%) ▪ Ceilings: + 4.7% organic (Volume + 2.8%/Price
Slide 5: SG&A, Net Income, Adjusted Net Income & Adjusted EBITDA
5 SG&A and Adjusted SG&A (1) Q3 Fiscal 2020 Performance ▪ Reported SG&A was $193.4 million (25.4% of sales) in Q3 2020 and $178.2 million (24.6% of sales) in Q3 2019 ▪ Adjusted SG&A was $191.8 million (25.2% of sales) in Q3 2020 and $175.5 million (24.2% of sales) in Q3 2019 ▪ Adjusted SG&A as % of
Slide 6: Cash Flow, Liquidity and Net Leverage
6 Cash Flow, Liquidity and Net Leverage ▪ YTD FY 2020 cash from operating activities and free cash flow (1) increased 28.4% and 24.4%, respectively, from YTD FY 2019. ▪ Substantial liquidity, with $40.9 million of cash on hand and an additional $424.9 million available under our revolving credit fac
Slide 7: Strategic Growth Priorities
7 Expand Share in Core Products Grow Other Products Platform Expansion Capitalize on existing fixed investment in locations and equipment where we’re underpenetrated or below expected share Grow select “Other Product” opportunities outside of core products to diversify and profitably expand our prod
Slide 8: Investment Rationale
8 Investment Rationale • A North American market leader in specialty distribution of interior construction products • Significant scale combined with local expertise • Differentiated service model • Multiple levers to drive above - market growth • Capitalizing on large, diverse end markets poised fo
Slide 9: Appendix
GYPSUM MANAGEMENT & SUPPLY, INC. Appendix DRYWALL | STEELSTUDS | JOINTTREATMENT&FINISHES | ACOUSTICAL CEILINGS INSULATION | EIFS&EXTERIORFINISHES | TOOLS | SAFETY | ACCESSORIES
Slide 10: Summary Quarterly Financials
10 Summary Quarterly Financials (In millions, except per share data) 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 (Unaudited) Wallboard Volume (MSF) 985 1,025 912 993 3,915 1,064 1,103 993 Wallboard Price ($ / '000 Sq. Ft.) 323$ 327$ 326$ 324$ 325$ 321$ 318$ 317$ Wallboard 318$ 335$ 297$ 322$ 1,272$ 342$
Slide 11: Quarterly Cash Flows
11 Quarterly Cash Flows (1) Free cash flow is a non - GAAP financial measure defined as net cash provided by (used in) operations less capital expenditures. D ifferences may occur due to rounding. ($ in millions) (Unaudited) 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 Net income $ 8.7 $ 24.9 $ 5.8 $ 16.
Slide 12: Q3 Net Sales
12 Q3 Net Sales (1) Organic net sales growth calculation excludes net sales of acquired businesses until first anniversary of acquisition date an d i mpact of foreign currency translation. ($ in millions) (Unaudited) FY20 FY19 Reported Organic (1) Organic (1) 751.7$ 723.9$ Acquisitions 8.4 - Fx Impa
Slide 13: Quarterly Net Income to Adjusted EBITDA Reconciliation
13 Quarterly Net Income to Adjusted EBITDA Reconciliation Commentary A. Represents non - cash expense related to stock appreciation rights agreements B. Represents non - cash compensation expense related to changes in the values of noncontrolling interests C. Represents non - cash equity - based com
Slide 14: Net Income to Pro Forma Adjusted EBITDA Reconciliation
14 Net Income to Pro Forma Adjusted EBITDA Reconciliation Commentary A. Represents non - cash expense related to stock appreciation rights agreements B. Represents non - cash compensation expense related to changes in the values of noncontrolling interests C. Represents non - cash equity - based com
Slide 15: Reconciliation of Income Before Taxes to Adjusted Net Income
15 Reconciliation of Income Before Taxes to Adjusted Net Income Reconciliation Commentary A. Depreciation and amortization from the increase in value of certain long - term assets associated with the April 1, 2014 acquisition of the predecessor company and the acquisition of Titan. B. Normalized cas
Slide 16: Reported SG&A to Adjusted SG&A Reconciliation
16 Reported SG&A to Adjusted SG&A Reconciliation Commentary A. Represents non - cash expense related to stock appreciation rights agreements B. Represents non - cash compensation expense related to changes in the values of noncontrolling interests C. Represents non - cash equity - based compensation
Slide 17: Gypsum Management & Supply, Inc.
GYPSUM MANAGEMENT & SUPPLY, INC. www.gms.com DRYWALL | STEELSTUDS | JOINTTREATMENT&FINISHES | ACOUSTICAL CEILINGS INSULATION | EIFS&EXTERIORFINISHES | TOOLS | SAFETY | ACCESSORIES