Slide 1: Safe Harbor and Basis of Presentation
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. All of these forward-looking statements are based on estimates and assumptions made by our
Slide 2: GMS at a Glance
GMS at a Glance GMS Overview Net Sales Breakdown (FY 2016) #1 North American specialty distributor of interior construction products (1) 13% market share in wallboard 14% market share in ceilings Critical link between suppliers and highly fragmented customer base 20,000+ interior contractor customer
Slide 3: National Platform With Local Presence And Independent Brands
GMS has an integrated national platform, but operates through over 40 local brands that are highly regarded in their markets Branch managers are empowered and incented to run operations like entrepreneurs within parameters of the overall business model GMS’s model ensures customer and product decisi
Slide 4: Product Overview
Product Overview #1 Market Position Used to finish the interior walls and ceilings in residential, commercial and institutional construction projects Exterior wallboard Description Wallboard Ceilings Steel Framing Other Products #1 Market Position Suspended ceiling systems primarily comprised of min
Slide 5: A One-Stop-Shop for the Interior Contractor
A One-Stop-Shop for the Interior Contractor “One-stop-shop” for the Interior Contractor Interior Contractor Wallboard Steel Framing Joint Compound Tools Safety Products Insulation GMS sells a complementary and complete product offering to the interior contractor who installs wallboard, ceilings, ste
Slide 6: Highly Attractive Industry Structure
Highly Attractive Industry Structure Source: Management estimates. Based on 2015 financials. Based on USG Corporation’s public filings and our management estimates. Number of North American suppliers declined from 12 in late 1990s to 7 today The top 4 represent ~76% of the market (1) Highly consolid
Slide 7: Leading Specialty Distributor Poised for Continued Growth
Leading Specialty Distributor Poised for Continued Growth Market Leader with Significant Scale Advantages – #1 North American Distributor of Wallboard and Ceilings Differentiated Service Model Drives Market Leadership Multiple Levers to Drive Above-Market Growth – Market Share, Greenfields, M&A, Ope
Slide 8: Market Leader with Scale Advantages
#1 position in wallboard and ceilings with 13% and 14% market share, respectively National scale and leading market positions drive: Purchasing advantage over smaller competitors Access to market leading ceilings (with exclusivity in many markets) and wallboard brands Ability to sell to large homebu
Slide 9: Differentiated Service Model Drives Market Leadership
Differentiated Service Model Drives Market Leadership Delivery Execution Safety Customer Support Product Availability Breadth of Product Availability Differentiates GMS from Smaller Competitors Ensures product availability Access to latest product innovations; significant customer for its top suppli
Slide 10: Multiple Levers to Drive Growth
Multiple Levers to Drive Growth End Market Recovery and Expansion Market Growth Operating Leverage Operational Excellence Margin Expansion Organic Growth Strategic Acquisitions ($ in millions, April FYE) 5-yr CAGR: 16.1% 5-yr CAGR: 50.8% (2) % Margin 2.0% 3.3% 5.0% 6.4% 6.7% 7.4% % Growth NA 12% 17%
Slide 11: Strong History of Market Share Gains
Source: Gypsum Association and GMS data. Includes the wallboard volume from entities acquired in fiscal 2015 assuming that the entities were acquired on January 1, 2014. Includes the wallboard volume from entities acquired in fiscal 2016 assuming that the entities were acquired on January 1, 2015. S
Slide 12: Acquisition Strategy
Acquisition Strategy Recent GMS Acquisitions February 2016 January 2016 November 2015 September 2015 April 2016 February 2016 November 2015 Tri-Cities Drywall & Supply Industry Structure: Large, highly fragmented industry comprised of ~400 competitors Similar business operations enable efficient int
Slide 13: Significant Opportunity to Further Expand the Platform
Significant Opportunity to Further Expand the Platform GMS has a significant opportunity to expand its geographic footprint in under served and under penetrated markets through greenfields and acquisitions GMS has a demonstrated history of successful expansion through greenfields and acquisitions GM
Slide 14: Capitalizing on Large and Diverse End Markets
Capitalizing on Large and Diverse End Markets Poised for Continued Growth GMS’ business mix is diversified across commericial and residential as well as new construction and R&R end markets, all of which are expected to continue to see robust growth End markets still we below historic levels New Com
Slide 15: Entrepreneurial Culture And Experienced Leadership Driving Superior Execution
Entrepreneurial Culture And Experienced Leadership Driving Superior Execution Significant management equity ownership with 71 employees owning ~26% (~30% including options); personally invested in the success and growth of the Company Attractive variable compensation structure, consisting of tiered,
Slide 16: Financial Highlights
Financial Highlights Above-Market Growth Attractive Cash Flow Dynamics Continued margin improvement Attractive End Market Dynamics Proven track record of driving consistent above market growth and share gains Ability to deliver superior service and a comprehensive product suite Well positioned to ca
Slide 17: Record Fiscal Q4 2016 and FY 2016 Sales
Record Fiscal Q4 2016 and FY 2016 Sales Net Sales ($ mm) Fiscal Q4 2016 Net Sales (1) +30.3% YOY (5) Net Sales ($ mm) Twelve Months 2016 Net Sales (1) +18.3% YOY GMS continues to outpace construction end market expansion (5) +16.0% Base Business YOY +7.6% Base Business YOY Completed three acquisitio
Slide 18: Continued Margin Expansion in Fiscal Q4 2016 and FY 2016
Continued Margin Expansion in Fiscal Q4 2016 and FY 2016 Gross Profit ($ mm) Fiscal Q4 2016 Adjusted Gross Profit & Margin (1) (5) Adj. EBITDA ($ mm) Fiscal Q4 2016 Adjusted EBITDA (2) Gross Profit ($ mm) FY 2016 Adjusted Gross Profit & Margin (1) Tailored investments in Yard Support Center, IT and
Slide 19: Attractive Capital Structure
Attractive Capital Structure Pro forma leverage of ~3.2x Net Debt / LTM Adj. EBITDA as of 4/30/16, after use of net proceeds from IPO together with cash on hand to pay off $160 million Second Lien Term Loan Continued improvement in credit metrics from 6.0x Net Debt / LTM Adj. EBITDA as of 4/30/14 an
Slide 20: Attractive Capital Structure
Attractive Capital Structure Pro forma leverage of ~3.2x Net Debt / LTM Adj. EBITDA as of 4/30/16, after use of net proceeds from IPO together with cash ‘on hand to pay off $160 million Second Lien Term Loan "Continued improvement in credit metrics from 6.0x Net Debt / LTM Adj. EBITDA as of 4/30/14
Slide 21: Net Income to Adjusted EBITDA
Net Income to Adjusted EBITDA Non-GAAP Adjusted EBITDA Reconciliation Commentary Represents compensation paid to certain executives who were majority owners prior to the AEA acquisition of GMS. Following the acquisition, these executives’ compensation agreements were amended and, going forward, GMS
Slide 22: Quarterly Financials Summary
Quarterly Financials Summary Quarterly Financials Note: Fiscal year end April 30. 23 (In millions, except per share data) 1Q15 2Q15 3Q15 4Q15 FY15 1Q16 2Q16 3Q16 4Q16 FY16 (Unaudited) Wallboard Volume (MSF) 578 613 537 600 2,328 681 700 646 816 2,843 Wallboard Price ($ / '000 Sq. Ft.) 307 $ 305 $ 30
Slide 23: Quarterly Sales
Quarterly Sales Note: Fiscal year end April 30. When calculating its “base business” results, GMS excludes any branches that were acquired in the current fiscal year, prior fiscal year and three months prior to the start of the prior fiscal year. Quarterly business days for FY17 are 63, 65, 63 and 6
Slide 24: Quarterly Net Income to Adjusted EBITDA
Quarterly Net Income to Adjusted EBITDA GAAP Adjusted EBITDA Reconciliation Commentary Represents non-cash compensation expenses related to stock appreciation rights agreements Represents non-cash compensation expense related to changes in the redemption values of noncontrolling interests Represents
Slide 25: GAAP Adjusted EBITDA Reconciliation
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