Gms Group Co., Ltd. · TSE:544A
Gms — Q4 2020 Earnings Presentation
19 slides from Gms's earnings presentation, Jun 25, 2020
Slide 1: Q4 FY 2020 Earnings Conference Call
June 25, 2020 Q4 FY 2020 Earnings Conference Call
Slide 2: Safe Harbor and Basis of Presentation
2 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. You can generally identify forward - looking statements by the Company’s use of forw
Slide 3: Health and Safety Response to COVID-19
3 Health and Safety Response to COVID - 19 The health, safety and wellbeing of our employees, business partners and communities remains our top priority. Enhanced operating protocols in compliance with public health requirements, recommendations and guidelines: Curtailed non - essential travel and m
Slide 4: Q4 Fiscal 2020 Highlights
4 Q4 Fiscal 2020 Highlights GMS entered Q4 with strong momentum grounded in our team’s focus on effective execution of strategic priorities Robust volume growth through mid - March gave way to COVID - 19 disruptions Net sales in Q4 2020 decreased 1.2% as higher sales in February and March were more
Slide 5: FY Fiscal 2020 Highlights
5 FY Fiscal 2020 Highlights FY 2020 was a year of significant progress for GMS Record net sales of $3.2 billion increased 4% year over year; organic net sales up 2.0% Net income of $23 million; adjusted net income of $126.5 million Generated almost $300 million of Adjusted EBITDA, another record; Ad
Slide 6: Q4 Fiscal 2020 Performance
6 Q4 Fiscal 2020 Performance Net Sales & Mix $780.1 $770.9 $0 $200 $400 $600 $800 Fiscal Q4 2019 Fiscal Q4 2020 41% 14% 16% 28% ▪ Net sales decline of 1.2% ▪ ~7% increase in combined sales in February and March more than offset by ~16% decline in April ▪ Organic net sales down 1.8% ▪ Wallboard: - 0.
Slide 7: SG&A and Adjusted SG&A Q4 Fiscal 2020 Performance
7 SG&A and Adjusted SG&A (1) Q4 Fiscal 2020 Performance ▪ Reported SG&A was 25.4% of sales compared to 24.4% of sales a year ago ▪ Adjusted SG&A was 24.5% of sales compared to 23.6% of sales a year ago in Q4 2019 ▪ Adjusted SG&A as % of sales increased by 90 bps year over year as a result of: ▪ Defl
Slide 8: Cash Flow, Liquidity and Net Leverage
8 Cash Flow, Liquidity and Net Leverage ▪ Q4 2020 cash from operating activities and free cash flow (1) increased 90.2% and 97.4%, respectively, from Q4 2019, primarily due to increased cash from working capital ▪ Reflects both actions to tightly manage working capital to preserve liquidity and defe
Slide 9: Strategic Growth Priorities
9 Expand Share in Core Products Grow Other Products Platform Expansion Capitalize on existing fixed investment in locations and equipment where we’re underpenetrated or below expected share Grow select “Other Product” opportunities outside of core products to diversify and profitably expand our prod
Slide 10: GMS is Well-Positioned Both Now and for the Long-Term
10 GMS is Well - Positioned Both Now and for the Long - Term • Proactive and decisive responses to COVID - 19 pandemic and resulting business conditions to reduce costs, increase liquidity and improve financial flexibility • Strong cash flow generation resulting from defensive nature of business mod
Slide 11: Appendix
GYPSUM MANAGEMENT & SUPPLY, INC. Appendix DRYWALL | STEELSTUDS | JOINTTREATMENT& FINISHES | ACOUSTICALCEILINGS INSUIATION | EIFS@EXTERIORFINISHES | TOOLS | SAFETY | ACCESSORIES
Slide 12: Summary Quarterly Financials
12 Summary Quarterly Financials (In millions, except per share data) 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 4Q20 FY20 (Unaudited) Wallboard Volume (MSF) 985 1,025 912 993 3,915 1,064 1,103 993 1,029 4,189 Wallboard Price ($ / '000 Sq. Ft.) 323$ 327$ 326$ 324$ 325$ 321$ 318$ 317$ 314$ 317$ Wallboard
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) 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 4Q20 FY20 Net income (loss) $ 8.7 $
Slide 14: Q4 Net Sales
14 Q4 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) FY20 FY19 Reported Organic (1) Organic (1) 766.3$ 780.1$ Acquisitions 8.0 - Fx Impa
Slide 15: Quarterly Net Income to Adjusted EBITDA Reconciliation
15 Quarterly Net Income to Adjusted EBITDA Reconciliation Commentary A. Represents non - cash expense related to stock appreciation rights agreements B. Represents non - cash compensation expense related to changes in the values of noncontrolling interests C. Represents non - cash equity - based com
Slide 16: Net Income to Pro Forma Adjusted EBITDA Reconciliation
16 Net Income to Pro Forma Adjusted EBITDA Reconciliation Commentary A. Represents non - cash expense related to stock appreciation rights agreements B. Represents non - cash compensation expense related to changes in the values of noncontrolling interests C. Represents non - cash equity - based com
Slide 17: Reconciliation of Income (loss) Before Taxes to Adjusted Net Income
17 Reconciliation of Income (loss) 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 the acquisition of Titan. B. Normali
Slide 18: Reported SG&A to Adjusted SG&A Reconciliation
18 Reported SG&A to Adjusted SG&A Reconciliation Commentary A. Represents non - cash expense related to stock appreciation rights agreements B. Represents non - cash compensation expense related to changes in the values of noncontrolling interests C. Represents non - cash equity - based compensation
Slide 19: Gypsum Management & Supply, Inc.
GYPSUM MANAGEMENT & SUPPLY, INC. www.gms.com DRYWALL | STEELSTUDS | JOINTTREATMENT& FINISHES | ACOUSTICALCEILINGS INSUIATION | EIFS@EXTERIORFINISHES | TOOLS | SAFETY | ACCESSORIES