Gms Group Co., Ltd. · TSE:544A
Gms — Investor Presentation (August 2023)
25 slides from Gms's investor presentation, Aug 9, 2023
Slide 1: Investor Overview August 2023
Investor Overview August 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 FY 2023 Net Sales $ 5.3 B 300+ Distribution yards GMS at a Glance 7,000+ GMS Team Members NYSE Ticker Symbol GMS & 100+ Tool Sales, Rentals & Service Centers 1. For a reconciliation of Adjusted EBITDA to the most directly comparable GAAP metrics, see Appendix. Informat
Slide 4: Diversified and Balanced End Market Exposure
4 Diversified and Balanced End Market Exposure Diversified exposure across commercial and residential new and repair and remodel construction markets continues to be an advantage Residential • Single - Family New • Multi - Family New • Repair & Remodel ~45% Commercial • New Construction • Repair & R
Slide 5: Providing Value to Contractors and Builders
5 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 6: Local Go-To-Market Strategy with Scale Benefits
6 Local Go - To - Market Strategy with Scale Benefits GMS distribution locations USA and Canada 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
Slide 7: GMS – FY2023 Highlights
7 FY23 Net Income $ 333 M FY23 Cash from Operations GMS – FY2023 Highlights FY23 Free Cash Flow* *For a reconciliation of Adjusted EBITDA or Free Cash Flow to the most directly comparable GAAP metrics, see Appendix. Unless indicated otherwise, comparisons are to full year fiscal 2022. FY23 Adj. EBIT
Slide 8: Strategic Growth Priorities – Q4 Fiscal 2023 Update
8 Strategic Growth Priorities – Q4 Fiscal 2023 Update Capitalize on existing fixed investments in locations and equipment where we are underpenetrated or below expected share Grow Complementary Products opportunities outside of core products to diversify and profitably expand our offerings Expand th
Slide 9: Continuing to Diversify and Profitably Expand Offerings
9 20% 19% 16% 45% 29% 12% 19% 40% Continuing to Diversify and Profitably Expand Offerings Successfully Growing Complementary Products Complementary Products 2014 Net Sales: $1.4B NET SALES BREAKDOWN (FISCAL 2014) 2023 Net Sales: $5.3B NET SALES BREAKDOWN (FISCAL 2023) Complementary Products Ceilings
Slide 10: Track Record of Successful Platform Expansion
10 Track Record of Successful Platform Expansion Date Acquisition/Greenfield Locations Strategic Rationale May - 23 ▪ 1 Location – Victoria, BC ▪ Margin - accretive Complementary Products acquisition in desirable Vancouver Island market Apr - 23 ▪ 1 Location – Toronto, ON area ▪ Margin - accretive C
Slide 11: Opportunities for Further Platform Expansion
11 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 over 300 distribution yard locations covering 47 U.S. States and 6 C
Slide 12: Attractive Capital Structure Supports Strategic Priorities
12 Attractive Capital Structure Supports Strategic Priorities Repurchased 2.3 million shares for $110.6 million during FY23; $100.2 million of repurchase authorization remaining at 4/30/23 $89.9 1.8x 1.8x 1.6x 1.6x 1.4x 4/30/2022 7/31/2022 10/31/2022 1/31/2023 4/30/2023 $52 $38 $31 $25 $128 $831 FY2
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 near - term high levels of multi - family residential activity • While varying by region, we expect single - family demand levels to continue to improve from lows experienced ove
Slide 14: Appendix
14 Appendix
Slide 15: End Market & Product-Level Expectations for Q1 FY2024
15 End Market & Product - Level Expectations for Q1 FY2024 Product Category Q1 FY24 YOY Volume Expectations Q1 FY24 YOY Price Expectations Wallboard • Multi - family: Up high teens • Single - family: Down 10 – 15% • Commercial: Up mid - to - high single - digits • Total Wallboard: Flat to down low s
Slide 16: Consolidated GMS Expectations for Q1 FY24 and Full Year Fiscal 2024
16 Consolidated GMS Expectations for Q1 FY24 and Full Year Fiscal 2024 Metric for Q1 FY24 Q1 FY24 Expectation Net Sales Up low single - digits YOY on a per day basis Gross Margin At or near prior year gross margin of 32% Adjusted EBITDA 1 $170 million - $175 million Metric for Full Year FY24 Full Ye
Slide 17: Summary Quarterly Financials
17 Summary Quarterly Financials (In millions) 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 (Unaudited) Wallboard Volume (MSF) 1,095 1,104 1,054 1,181 4,433 1,191 1,232 1,058 1,130 4,611 Wallboard Price ($ / '000 Sq. Ft.) 356$ 376$ 394$ 416$ 386$ 438$ 474$ 473$ 481$ 467$ Wallboard 390$ 415$ 415$
Slide 18: Quarterly Cash Flows
18 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 4Q23 FY23 Net income $ 61.2 $ 74.4
Slide 19: Q4 2023 Net Sales
19 Q4 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) 1,297.0$ 1,288.7$ Acquisitions 18.1
Slide 20: Quarterly Net Income to Adjusted EBITDA Reconciliation
20 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 21: Net Income to Pro Forma Adjusted EBITDA Reconciliation
21 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 22: Income Before Taxes to Adjusted Net Income Reconciliation
22 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 23: Reported SG&A to Adjusted SG&A Reconciliation
23 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 24: Leverage Summary
24 Leverage Summary (1) Net of unamortized discount of $0.5mm, $0.4mm, $0.4mm, $0.3mm and $0.3mm as of April 30, 2022, July 31, 2022, October 31, 202 2, January 31, 2023 and April 30, 2023 respectively. (2) Net of deferred financing costs of $3.1mm, $2.9mm, $2.6mm, $2.4mm and $2.1mm as of April 30,
Slide 25: Net Income to Adjusted EBITDA Outlook
25 Net Income to Adjusted EBITDA Outlook Q1 FY24 Net Income $89 - $92 Interest expense, net 18.4 - 18.9 Provision for income taxes 30.1 - 31.0 Depreciation and amortization expense 30.5 - 31.4 Other Adjustments 2.0 Adjusted EBITDA $170 - $175 Reconciliation