Gms Group Co., Ltd. · TSE:544A
Gms — Q3 FY2024 Earnings Presentation
20 slides from Gms's earnings presentation, Feb 29, 2024
Slide 1: Q3 2024 Earnings Call
Q3 2024 Earnings Call February 29, 2024
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: Q3 Fiscal 2024 At a Glance
3 Q3 Fiscal 2024 At a Glance Comparisons are to Q 3 FY2 3 • Volume growth across all four major product categories • High levels of multi - family and commercial activity • An improving single - family backdrop • Resilient pricing in Wallboard, Ceilings and Complementary Products • Positive contribu
Slide 4: Strategic Growth Priorities – Q3 FY24 Update
4 Drive Improved Productivity & Profitability Strategic Growth Priorities – Q3 FY24 Update Capitalize on existing fixed investments in locations & equipment where we are underpenetrated or below expected share Grow Complementary Product opportunities to diversify and profitably expand our product of
Slide 5: GMS + Kamco NY: A Highly Strategic Transaction
5 Expands share in core product categories Adds notable cross - selling opportunities and broader suite of top - tier product offerings Creates significant entry into underpenetrated NYC metro area GMS + Kamco NY A Highly Strategic Transaction Represents strong cultural alignment to GMS’ core values
Slide 6: Q3 Fiscal 2024 Sales Highlights
6 Q3 Fiscal 2024 Sales Highlights U.S. Residential Sales Q324 Net Sales $ 1.3 B Per Day Net Sales 2.1% U.S. Commercial Sales 1.7% 2.4% 1.9% • Solid demand in commercial and multi - family construction drove volume increases • Deflationary pricing in Steel Framing reduced net sales by an estimated $5
Slide 7: Solid Gross Margin and Adj. EBITDA Despite Deflationary Steel Pricing
7 $402.2 $414.7 32.6% 33.0% 32.0% 32.5% 33.0% 33.5% $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Fiscal Q3 2023 Fiscal Q3 2024 Gross Profit Gross Margin ($ mm) Solid Gross Margin and Adj. EBITDA Despite Deflationary Steel Pricing 1 For a reconciliation of Adjusted SG&A, Adjusted EBITDA and Ad
Slide 8: Attractive Capital Structure Supports Strategic Priorities
8 Attractive Capital Structure Supports Strategic Priorities • Repurchased 370K shares for $24.8 million during Q324 • $216.5 million of repurchase authorization remaining at 01/31/24 1.6x 1.4x 1.5x 1.5x 1.5x 1/31/2023 4/30/2023 7/31/2023 10/31/2023 1/31/2024 $12 $48 $41 $36 $58 $844 FY24 FY25 FY26
Slide 9: End Market & Product-Level Expectations for Q4 FY2024
9 End Market & Product - Level Expectations for Q4 FY2024 Product Category Q4 FY24 YOY Per Day Volume Expectations Q4 FY24 YOY Price/Mix Per Day Expectations Wallboard • Multi - family: Up low single - digits • Single - family: Up low single - digits • Commercial: Up mid to high single - digits • To
Slide 10: Consolidated GMS Expectations for Q4 FY24 and Full Year Fiscal 2024
10 Consolidated GMS Expectations for Q4 FY24 and Full Year Fiscal 2024 Metric for Q4 FY24 Q4 FY24 Expectation (on a Per Day Basis) Net Sales Up mid single - digits Gross Margin Approximately 32.2% Net Income $66 million - $69 million Adjusted EBITDA 1 $145 million - $150 million Metric for Full Year
Slide 11: Appendix
11 Appendix
Slide 12: Summary Quarterly Financials
12 Summary Quarterly Financials (In millions) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 (Unaudited) Wallboard Volume (MSF) 1,191 1,232 1,058 1,130 4,611 1,204 1,231 1,101 Wallboard Price ($ / '000 Sq. Ft.) 438$ 474$ 473$ 481$ 467$ 475$ 476$ 473$ Wallboard 522$ 585$ 501$ 545$ 2,152$ 571$ 585$ 521$ Ceil
Slide 13: Quarterly Cash Flows
13 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) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 Net income $ 89.5 $ 103.2 $ 64.8 $
Slide 14: Net Sales
14 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) FY24 FY23 Reported Organic (1) Organic (1) 1,231.8$ 1,234.6$ Acquisitions 27.2 - Fx Im
Slide 15: Quarterly Net Income to Adjusted EBITDA Reconciliation
15 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 16: Net Income to Pro Forma Adjusted EBITDA Reconciliation
16 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 17: Income Before Taxes to Adjusted Net Income Reconciliation
17 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 18: Reported SG&A to Adjusted SG&A Reconciliation
18 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 19: Leverage Summary
19 Leverage Summary (1) Net of unamortized discount of $0.3mm, $0.3mm, $2.5mm, $2.4mm and $2.3mm as of January 31, 2023, April 30, 2023, July 31, 20 23, October 31, 2023 and January 31, 2024 respectively. (2) Net of deferred financing costs of $2.4mm, $2.1mm, $4.1mm, $3.9mm and $3.8mm as of January
Slide 20: Net Income to Adjusted EBITDA Outlook Reconciliation
20 Net Income to Adjusted EBITDA Outlook Reconciliation Q4 FY24 Net Income $66 - $69 Interest expense, net 15.6 - 16.3 Provision for income taxes 23.0 - 23.9 Depreciation and amortization expense 32.0 - 33.3 Other Adjustments 7.0 Adjusted EBITDA $145 - $150 $ in millions Note: There will be 64 selli