Gms Group Co., Ltd. · TSE:544A
Gms — Q3 FY2021 Earnings Presentation
18 slides from Gms's earnings presentation, Mar 4, 2021
Slide 1: Q3 FY 2021 Earnings Conference Call
Q3 FY 2021 Earnings Conference Call March 4, 2021
Slide 2: Forward-Looking Statement Safe Harbor
2 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 forward - looking terminology such as “ant
Slide 3: Q3 Fiscal 2021 Highlights
3 Q3 Fiscal 2021 Highlights Outstanding execution by our entire team enabled us to again deliver results that exceeded previous expectations. ▪ Net sales decreased 1.3%; on a per day basis, net sales increased 0.3%, the first time since onset of the pandemic. ▪ Dynamic operating environment. ▪ Sharp
Slide 4: Q3 Fiscal 2021 Performance: Net Sales, Mix, Gross Profit
4 $253.5 $243.3 33.3% 32.4% 20.0% 20.5% 21.0% 21.5% 22.0% 22.5% 23.0% 23.5% 24.0% 24.5% 25.0% 25.5% 26.0% 26.5% 27.0% 27.5% 28.0% 28.5% 29.0% 29.5% 30.0% 30.5% 31.0% 31.5% 32.0% 32.5% 33.0% 33.5% 34.0% 34.5% 35.0% 35.5% 36.0% 36.5% 37.0% $0 $50 $100 $150 $200 $250 $300 Fiscal Q3 2020 Fiscal Q3 2021
Slide 5: Q3 Fiscal 2021 Performance: SG&A, Net Income, Adjusted EBITDA
5 Q3 Fiscal 2021 Performance 1. For a reconciliation of Adjusted SG&A, Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin to the most directly c omp arable GAAP metrics, see Appendix. SG&A and Adjusted SG&A (1) ▪ Reported SG&A was 24.6% of sales compared to 25.4% of sales a year ago. ▪
Slide 6: Cash Flow, Liquidity and Net Leverage
6 Cash Flow, Liquidity and Net Leverage Cash From Operations and Free Cash Flow (1) LTM Net Debt / PF Adjusted EBITDA (2) $89.9 $82.5 ▪ Free cash lower year - over - year due to proactive inventory build in advance of manufacturer price increases and to ensure product availability for our customers.
Slide 7: Strategic Growth Priorities
7 Strategic Growth Priorities Expand Share in Core Products Grow Other Products Platform Expansion Capitalize on existing fixed investment in locations and equipment where we’re underpenetrated or below expected share Grow select “Other Product” opportunities outside of core products to diversify an
Slide 8: GMS is Well-Positioned Both Now and for the Long-Term
8 GMS is Well - Positioned Both Now and for the Long - Term ▪ A North American market leader in specialty distribution of interior construction products. ▪ Significant scale combined with local expertise. ▪ Differentiated service model. ▪ Entrepreneurial culture. ▪ We are successfully executing our
Slide 9: Q3 FY 2021 Earnings Conference Call
9 Q3 FY 2021 Earnings Conference Call
Slide 10: Appendix
10 Appendix
Slide 11: Summary Quarterly Financials
11 Summary Quarterly Financials (In millions, except per share data) 1Q20 2Q20 3Q20 4Q20 FY20 1Q21 2Q21 3Q21 (Unaudited) Wallboard Volume (MSF) 1,064 1,103 993 1,029 4,189 1,054 1,073 997 Wallboard Price ($ / '000 Sq. Ft.) 321$ 318$ 317$ 314$ 317$ 311$ 308$ 312$ Wallboard 342$ 351$ 314$ 323$ 1,330$
Slide 12: Quarterly Cash Flows
12 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) 1Q20 2Q20 3Q20 4Q20 FY20 1Q21 2Q21 3Q21 Net income (loss) $ 24.8 $ 29.1 $ 1
Slide 13: Q3 2021 Net Sales
13 Q3 2021 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) FY21 FY20 Reported Organic (1) Organic (1) 747.1$ 761.4$ Acquisitions 2.1 - Fx
Slide 14: Quarterly Net Income to Adjusted EBITDA Reconciliation
14 Quarterly Net Income to Adjusted EBITDA Reconciliation Commentary A. Represents changes in the fair value of stock appreciation rights B. Represents changes in the fair value of noncontrolling interests C. Represents non - cash equity - based compensation expense related to the issuance of share
Slide 15: Net Income to Pro Forma Adjusted EBITDA Reconciliation
15 Net Income to Pro Forma Adjusted EBITDA Reconciliation Commentary A. Represents changes in the fair value of stock appreciation rights B. Represents changes in the fair value of noncontrolling interests C. Represents non - cash equity - based compensation expense related to the issuance of share
Slide 16: Income Before Taxes to Adjusted Net Income Reconciliation
16 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 cash tax rate determi
Slide 17: Reported SG&A to Adjusted SG&A Reconciliation
17 Reported SG&A to Adjusted SG&A Reconciliation Commentary A. Represents changes in the fair value of stock appreciation rights B. Represents changes in the fair value of noncontrolling interests C. Represents non - cash equity - based compensation expense related to the issuance of share - based a
Slide 18: Leverage Summary
18 Leverage Summary (1) Net of unamortized discount of $1.9mm, $1.8mm, $1.5 mm, $1.4 mm and $1.4 mm as of January 31,2020, April 30, 2020, July 31, 202 0, October 31, 2020, and January 31,2021 respectively. (2) Net of deferred financing costs of $10.0 mm, $9.0 mm, $8.5 mm, $8.1 mm, and $7.6 mm as of