Gms Group Co., Ltd. · TSE:544A
Gms — Investor Presentation (September 2018)
18 slides from Gms's investor presentation, Sep 6, 2018
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 #1 North American specialty distributor Other ~29% of interior construction products - Founded in 1971 (1) Steel Framing ~15% Residential ~45% - Completed IPO on May 26, 2016 - More than 245 branches across 42 states and 5 Canadian provinces One-stop-shop for the interior contractor
Slide 3: Fiscal Q1 Highlights
Fiscal Q1 Highlights Highlights Highlights 4 Other Successfully converted ~$23 million of existing equipment operating leases to capital leases on May 1, 2018 Implemented a strategic cost reduction plan to further improve our operational efficiency that is expected to generate annualized cost saving
Slide 4: Fiscal Q1 2019 Performance
Fiscal Q1 2019 Performance Net Sales ($ mm) Adj. Gross Profit ($ mm) 32.0% $800 $700 $600 $500 $400 $300 $200 $100 $0 31.9% 28% $300 $250 $200 $150 $100 $50 $0 32.0% 44% 16% 31.5% 31.0% Fiscal Q1 2018 Fiscal Q1 2019 Fiscal Q1 2018 Fiscal Q1 2019 Gross Margin Gross Profit Adj. EBITDA ($ mm) Adj. SG&A
Slide 5: Leading Specialty Distributor Poised for Continued Growth
Leading Specialty Distributor Poised for Continued Growth GMS has a demonstrated history of successful expansion through greenfields and acquisitions GMS has limited or no presence in just under 40% of the top 100 MSAs in the U.S. Growth opportunities in new Canadian geographies (Prairies, Quebec, E
Slide 6: Attractive Capital Structure
Attractive Capital Structure Post Titan transaction capital structure as of 7/31/18: Pro Forma leverage of 4.1x Net Debt / LTM Pro Forma Adj. EBITDA (1) Compares favorably to 6.0x Net Debt / LTM Pro Forma Adj. EBITDA (1) as of 4/30/14 and 4.3x pre-IPO Moody’s and Standard & Poor’s maintained current
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 Market Leading Growth – Market Share, Greenfields, M&A, O
Slide 8: National Footprint Combined With Local Expertise
National Footprint Combined With Local Expertise Market Leader with Scale Advantages v Market Leader with Significant Scale Advantages — #1 North American Distributor of Wallboard and Ceilings Differentiated Service Model Drives Market Leadership Multiple Levers to Drive Market Leading Growth — Mark
Slide 9: Summary Quarterly Financials
Summary Quarterly Financials 7 Note: Fiscal year end April 30. (1) Includes greenfields, which we consider extensions of “base business.” (2) FY18 acquired branches have been updated to reflect the number of acquired branches that are included within the sales from acquisitions 10 FY19 254 days (In
Slide 10: Quarterly Cash Flows
Quarterly Cash Flows ($ in millions) (Unaudited) Historical 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 Net income Non-cash changes & other changes Changes in primary working capital components: Trade accounts and notes receivable Inventories Accounts payable Cash provided by (used in) operating activities $ 15.3
Slide 11: Quarterly Net Sales
Quarterly Net Sales ($ in millions) (Unaudited) Base Business (1) (2) Acquisitions (2) (3) Total Net Sales Total Net Sales Growth Wallboard Ceilings Steel Framing Other Products Total Net Sales Base Business Sales Growth Wallboard Ceilings Steel Framing Other Products Total Base Business Net Sales N
Slide 12: Quarterly Net Income to Adjusted EBITDA
Quarterly Net Income to Adjusted EBITDA Commentary A. Represents non-cash compensation expenses related to stock appreciation rights agreements B. Represents non-cash compensation expense related to changes in the fair values of noncontrolling interests C. Represents non-cash equity-based compensati
Slide 13: LTM Net Income to Pro Forma Adjusted EBITDA
LTM Net Income to Pro Forma Adjusted EBITDA Commentary ( $ in 000s) (Unaudited) Net Income 1Q19 LTM 2018 2017 2016 A. Represents non-cash compensation expenses related to stock appreciation rights agreements $ 56,278 $ 62,971 $ 48,886 $ 12,564 B. Represents non-cash compensation expense related to c
Slide 14: Reconciliation of Gross Profit to Adjusted Gross Profit
Reconciliation of Gross Profit to Adjusted Gross Profit Commentary A. Non-cash cost of sales impact of purchase accounting adjustments to increase inventory to its estimated fair value (Unaudited) ($ in millions) Gross Profit - Reported 1Q18 2Q18 3Q18 4Q18 1Q19 $ 205.1 $ 212.3 $ 195.4 $ 205.8 $ 244.
Slide 15: Reconciliation of SG&A to Adjusted SG&A & Organic Adjusted SG&A
Reconciliation of SG&A to Adjusted SG&A & Organic Adjusted SG&A Commentary A. Represents non-cash compensation expenses related to stock appreciation rights agreements B. Represents non-cash compensation expense related to changes in the fair values of noncontrolling interests Represents non-cash eq
Slide 16: FY 2019 Q1 LTM Pro Forma Adjusted EPS Reconciliation
(1) FY 2019 Q1 LTM Pro Forma Adjusted EPS Reconciliation Assuming the effects of tax reform, the acquisition of Titan and the FY19 cost reductions were effective 7/1/2017, the table below reflects the estimated impact of both on Adjusted Net Income: ($ in millions, except share and per share data) (
Slide 17: FY 2019 Q1 LTM Pro Forma Adjusted EPS Reconciliation
FY 2019 Q1 LTM Pro Forma Adjusted EPS Reconciliation = Assuming the effects of tax reform, the acquisition of Titan and the FY19 cost reductions were effective 7/1/2017, the table below reflects the estimated impact of both on Adjusted Net Income: (Sin millions, except share and per share data) (Una
Slide 18: Q&A