Slide 1: Investor Overview March 2023
Investor Overview March 2023
Slide 2: Safe Harbor and Basis of Presentation
2 Safe Harbor and B asis 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 for
Slide 3: GMS at a Glance
3 Fiscal 2022 Net Sales 52 yrs LTM Q3 FY23 1 Net Sales $ 5.3 B Leading Brands 50+ Distribution yard locations across the U.S. & Canada ~300 GMS at a Glance 6,500+ GMS Team Members NYSE Ticker Symbol GMS Tool Sales, Rentals & Service Centers 100+ 1. LTM Q3 FY23 is defined as the twelve months ended J
Slide 4: Providing Value to Contractors and Builders
4 Providing Value to Contractors and Builders A leading North American specialty distributor of construction products GMS provides the products and value - added services to contractors who install wallboard, ceilings, steel framing and other complementary building products • Expertise across loca
Slide 5: Local Go-To-Market Strategy with Scale Benefits
5 Local Go - To - Market Strategy with Scale Benefits GMS’s model provides for the intimacy of a local business, exceptional customized service and an entrepreneurial culture while leveraging North American economy of scale • Combines the benefits of a local “go - to - market” strategy and relations
Slide 6: Fiscal YTD Q3 FY2023 Highlights
6 Fiscal YTD Q3 FY2023 Highlights • Net Sales of $4 billion, up 20% • Gross Profit of $1.3 billion, up 21% • Gross Margin of 32.3%, up 20 basis points • Net Income up 31% • Adjusted EBITDA 1 up 24% to $511 million • Adjusted EBITDA Margin 1 of 12.7%, up 40 basis points • Significantly improved cash
Slide 7: Strategic Growth Priorities – Q3 Fiscal 2023 Update
7 Strategic Growth Priorities – Q3 Fiscal 2023 Update Capitalize on existing fixed investments in locations and equipment where we are underpenetrated or below expected share Grow Complementary Product opportunities outside of core products to diversify and profitably expand our offerings Expand the
Slide 8: Continuing to Diversify and Profitably Expand Offerings
8 20% 19% 16% 45% 29% 12% 22% 37% Continuing to Diversify and Profitably Expand Offerings Successfully Growing Complementary Products Complementary Products 2014 Net Sales: $1.4B NET SALES BREAKDOWN (FISCAL 2014) 2022 Net Sales: $4.6B NET SALES BREAKDOWN (FISCAL 2022) Complementary Products Ceilings
Slide 9: Track Record of Successful Platform Expansion
9 Track Record of Successful Platform Expansion Date Acquisition/Greenfield Locations Strategic Rationale Dec - 22 ▪ 4 Locations - NYC Metro Area ▪ Establishes multi - location complimentary products in the #1 MSA – NYC Metro Area Jun - 22 ▪ Sarasota, FL ▪ Margin - accretive Complementary Products a
Slide 10: Opportunities for Further Platform Expansion
10 Opportunities for Further Platform Expansion • Opportunity to expand our geographic footprint in under - served and under - penetrated markets through accretive greenfield locations and acquisitions • Current footprint comprises ~300 distribution yard locations covering 47 U.S. States and 6 Canad
Slide 11: Proven Track Record of Growth & Improved Profitability
11 CAGR FY - 16 through LTM Q323 : Net Sales: Adjusted EBITDA*: Proven Track Record of Growth & Improved Profitability *For a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to the most directly comparable GAAP metrics, see Appendi x. Note: LTM Q323 refers to the twelve months ended Jan
Slide 12: Attractive Capital Structure Supports Strategic Priorities
12 Attractive Capital Structure Supports Strategic Priorities • Significant improvement in cash flow as the supply chain improved • Generated Cash from Operating Activities of $134.1 million, compared to $57.2 million in Q3 FY22 • Generated Free Cash Flow 1 of $122.5 million, compared to $40.2 milli
Slide 13: GMS is Well Positioned across Commercial and Residential Markets
13 GMS is Well Positioned across Commercial and Residential Markets with Scale and Balanced Product Mix • Continue to see high levels of multi - family residential activity • Further deterioration of single - family residential demand is expected in the near - term; Extent and duration of decline is
Slide 14: Appendix
Appendix GMS...
Slide 15: Expectations for Q4 Fiscal 2023
15 Expectations 1. For a reconciliation of Adjusted SG&A, Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow to the mo st directly comparable GAAP metrics, see Appendix. Expectations for Q4 Fiscal 2023 Wallboard Volume Expectations by End Market (as compared to Q4 FY22):
Slide 16: Summary Quarterly Financials
16 Summary Quarterly Financials (In millions) 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 (Unaudited) Wallboard Volume (MSF) 1,095 1,104 1,054 1,181 4,433 1,191 1,232 1,058 Wallboard Price ($ / '000 Sq. Ft.) 356$ 376$ 394$ 416$ 386$ 438$ 474$ 473$ Wallboard 390$ 415$ 415$ 491$ 1,711$ 522$ 585$ 501$ Ceil
Slide 17: Quarterly Cash Flows
17 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) 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 Net income $ 61.2 $ 74.4 $ 61.4 $ 7
Slide 18: Q3 2023 Net Sales
18 Q3 2023 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) FY23 FY22 Reported Organic (1) Organic (1) 1,227.3$ 1,153.6$ Acquisitions 16.6
Slide 19: Quarterly Net Income to Adjusted EBITDA Reconciliation
19 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 20: Net Income to Pro Forma Adjusted EBITDA Reconciliation
20 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 21: Income Before Taxes to Adjusted Net Income Reconciliation
21 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 amortization of intangible assets from the acquisitions of Ti
Slide 22: Reported SG&A to Adjusted SG&A Reconciliation
22 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 23: Leverage Summary
23 Leverage Summary (1) Net of unamortized discount of $0.5mm, $0.5mm, $0.5mm, $0.4mm and $0.3mm as of January 31, 2022, April 30, 2022, July 31, 202 2, October 31, 2022 and January 31, 2023 respectively. (2) Net of deferred financing costs of $3.4mm, $3.1mm, $2.8mm, $2.6mm and $2.4mm as of January