Gms Group Co., Ltd. · TSE:544A
Gms — Q1 FY2025 Earnings Presentation
21 slides from Gms's earnings presentation, Aug 29, 2024
Slide 1: Q1 FY2025 Earnings Call August 29, 2024
Q1 FY2025 Earnings Call August 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: Q1 Fiscal 2025 At a Glance
3 Wallboard 41% Ceilings 14% Steel Framing 14% Complementary Products 31% Q1 Fiscal 2025 At a Glance Comparisons are to Q 1 FY2 4 • Volume growth across all four major product categories, inclusive of acquisitions • Resilient or improved pricing in Wallboard, Ceilings and Complementary Products • Po
Slide 4: Strategic Growth Priorities – Q1 FY25 Update
4 Drive Improved Productivity & Profitability Strategic Growth Priorities – Q1 FY25 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: Sales Highlights – Q1 FY25
5 Sales Highlights – Q1 FY25 U.S. Per Day Residential Sales Q125 Net Sales $ 1.4 B Per Day Net Sales 2.1% U.S. Per Day Commercial Sales 1.7% 2.7% 2.8% • Single - family demand was up YOY for second consecutive quarter • Commercial and multi - family activity levels slowed more than expected for the
Slide 6: Shifts in Price Realization and Demand Mix Impacted Profitability
6 $450.6 $451.6 32.0% 31.2% 30.0% 30.5% 31.0% 31.5% 32.0% 32.5% 33.0% 33.5% $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Fiscal Q1 2024 Fiscal Q1 2025 Gross Profit Gross Margin ($ mm) Shifts in Price Realization and Demand Mix Impacted Profitability * For a reconciliation of Adjusted SG&A, Ad
Slide 7: Attractive Capital Structure Supports Strategic Priorities
7 Attractive Capital Structure Supports Strategic Priorities • Repurchased 538K shares for $46.2 million during Q125 • $154.3 million of repurchase authorization remaining 1.5x 1.5x 1.5x 1.7x 2.1x 07/31/2023 10/31/2023 01/31/2024 04/30/2024 7/31/2024 $40 $49 $44 $397 $27 $834 FY25 FY26 FY27 FY28 FY2
Slide 8: End Market & Product-Level Expectations
8 End Market & Product - Level Expectations Product Category Q2 FY25 YOY Volume Expectations Q2 FY25 YOY Price/Mix Expectations Organic Total (Incl. acquisitions) •Single - family: Up mid - single digits •Multi - family: Down low - double digits •Commercial: Down high - single digits Total Wallboard
Slide 9: Consolidated Expectations
9 Consolidated Expectations Metric for Q2 FY25 Q2 FY25 Expectation Net Sales Up low - to - mid single digits YOY Gross Margin ~31.6% - 31.8% Net Income $67 million - $69 million Adjusted EBITDA 1 $163 million - $168 million Adjusted EBITDA Margin 1 Approximately 11% Metric for Full Year FY25 Full Ye
Slide 10: Appendix
10 Appendix
Slide 11: Summary Quarterly Financials
11 Summary Quarterly Financials (In millions) 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 (Unaudited) Wallboard Volume (MSF) 1,204 1,231 1,101 1,234 4,769 1,109 Wallboard Price ($ / '000 Sq. Ft.) 475$ 476$ 473$ 475$ 475$ 479$ Wallboard 571$ 585$ 521$ 586$ 2,263$ 588$ Ceilings 175 175 156 189 695 207 Steel framing
Slide 12: Quarterly Cash Flows
12 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) 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 Net income $ 86.8 $ 81.0 $ 51.9 $ 56.4 $ 276.
Slide 13: Q1 2025 Net Sales
13 Q1 2025 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) FY25 FY24 Reported Organic (1) Organic (1) 1,378.0$ 1,409.6$ Acquisitions 75.5
Slide 14: Quarterly Net Income to Adjusted EBITDA Reconciliation
14 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 15: Net Income to Pro Forma Adjusted EBITDA Reconciliation
15 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 16: Income Before Taxes to Adjusted Net Income - Legacy
16 Income Before Taxes to Adjusted Net Income - Legacy 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 acquisiti
Slide 17: Income Before Taxes to Adjusted Net Income – New as of 1Q25
17 Income Before Taxes to Adjusted Net Income – New as of 1Q25 Reconciliation Commentary A. Represents all non - cash amortization resulting from business combinations. To make the financial presentation more consistent with other public building products companies, beginning in the first quarter 20
Slide 18: Income Before Taxes to Adjusted Net Income – Historical FY24
18 Income Before Taxes to Adjusted Net Income – Historical FY24 Reconciliation Commentary A. Represents all non - cash amortization resulting from business combinations B. Normalized cash tax rate excluding the impact of acquisition accounting and certain other deferred tax amounts ($ in 000s) 1Q24
Slide 19: Reported SG&A to Adjusted SG&A Reconciliation
19 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 20: Leverage Summary
20 Leverage Summary (1) Net of unamortized discount of $2.5mm, $2.4mm, $2.3mm, $2.0mm and $1.9mm as of July 31, 2023, October 31, 2023, January 31, 2 024 , April 2024 and July 31, 2024, respectively. (2) Net of deferred financing costs of $4.1mm, $3.9mm, $3.8mm, $4.4mm and $4.3mm as of July 31, 2023
Slide 21: Net Income to Adjusted EBITDA Outlook Reconciliation
21 Net Income to Adjusted EBITDA Outlook Reconciliation Q2 FY25 Net Income $67 - $69 Interest expense, net 20.8 - 21.4 Write-off of debt discount and deferred financing fees - Provision for income taxes 25.0 - 25.7 Depreciation and amortization expense 39.1 - 40.3 Other Adjustments 12.0 Adjusted EBI