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 (LTM FY18 Q3) (2) Wallboard 46% Ceilings 15% Steel Framing 16% Other 23% CAGR: 37.7% (3) ($ in millions, April FYE) #1 North American specialty distributor of interior construction products (1) More than 210 branches across 42 states 14.4% market shar
Slide 3: Market Leader with Scale Advantages
Includes the wallboard volume from entities acquired in calendar 2014 assuming that the entities were acquired on January 1, 2014. Includes the wallboard volume from entities acquired in calendar 2015 assuming that the entities were acquired on January 1, 2015. Includes the wallboard volume from ent
Slide 4: Q3 2018 Highlights
Q3 2018 Highlights Above-Market Growth Attractive Capital Structure Accretive Acquisitions and Greenfield Openings Continued Profit Improvement Net sales increased 4.1% to a record $585.5 million Base business net sales up 2.9% Wallboard price increased 2.9% Net income increased 139.3% to $19.7 mill
Slide 5: Attractive Acquirer with Significant Consolidation Opportunity
Attractive Acquirer with Significant Consolidation Opportunity Acquisition Strategy Recent GMS Acquisitions Acquisition Rationale Industry Structure: Large, highly fragmented industry comprised of hundreds of competitors Similar business operations enable efficient integration Limited number of scal
Slide 6: Profitable Sales Expansion in Fiscal Q3 2018
Profitable Sales Expansion in Fiscal Q3 2018 Gross Profit ($ mm) Fiscal Q3 2018 Gross Profit & Margin Adj. EBITDA(2) ($ mm) Fiscal Q3 2018 Adjusted EBITDA (2) When calculating our “base business” results, we exclude any branches that were acquired in the current fiscal year, prior fiscal year and th
Slide 7: Attractive Capital Structure
Attractive Capital Structure Leverage of 2.8x Net Debt / LTM Pro Forma Adj. EBITDA as of 1/31/18, down from 3.1x Net Debt / LTM Pro Forma Adj. EBITDA as of 1/31/17 Substantial liquidity, with $28.9 million of cash on hand and an additional $333.6 million undrawn on the ABL Facility Moody’s and Stand
Slide 8: Tax Legislation Update
Tax Legislation Update 9 We expect our estimated effective tax rate to be 34-35% in FY 2018. We expect our estimated effective tax rate to be 23-25% in FY 2019. Assuming the effects of tax reform were in place for FY 2017, the table below reflects the estimated impact of tax reform on Adjusted Net I
Slide 9: Leading Specialty Distributor Poised for Continued Growth
Leading Specialty Distributor Poised for Continued Growth Market Leader with Significant Scale Advantages – #1 North American Distributor of Wallboard and Ceilings Differentiated Service Model Drives Market Leadership Multiple Levers to Drive Market Leading Growth – Market Share, Greenfields, M&A, O
Slide 10: Appendix
5 :4 2 2 / 4 1 0 /2 /6 2 / t n e m Docu d ve Unsa Appendix
Slide 11: Summary Quarterly Financials
Summary Quarterly Financials Note: Fiscal year end April 30. 12 (In millions, except per share data) 1Q17 2Q17 3Q17 4Q17 FY17 1Q18 2Q18 3Q18 (Unaudited) Wallboard Volume (MSF) 818 891 842 906 3,458 914 929 826 Wallboard Price ($ / '000 Sq. Ft.) 307 $ 303 $ 303 $ 311 $ 306 $ 311 $ 311 $ 312 $ Wallboa
Slide 12: Quarterly Net Sales
Quarterly Net Sales Note: Fiscal year end April 30. When calculating our “base business” results, we exclude 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. FY17 quarterly sales from acquisitions have been up
Slide 13: Quarterly Net Income to Adjusted EBITDA
Quarterly Net Income to Adjusted EBITDA 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 fair values of noncontrolling interests Represents non-cash e
Slide 14: LTM Net Income to Pro Forma Adjusted EBITDA
LTM Net Income to Pro Forma Adjusted EBITDA Pro Forma Adjusted EBITDA Reconciliation Commentary 15 Represents non-cash compensation expenses related to stock appreciation rights agreements Represents non-cash compensation expense related to changes in the fair values of noncontrolling interests Repr
Slide 15: Net Income to Adjusted EBITDA
Net Income to Adjusted EBITDA 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 does not
Slide 16: Quarterly Cash Flows
Quarterly Cash Flows 17 ($ in millions) (Unaudited) 1Q17 2Q17 3Q17 4Q17 FY17 1Q18 2Q18 3Q18 Net income $ 9.2 $ 17.2 $ 8.2 $ 14.3 $ 48.9 15.3 $ 18.0 $ 19.7 Non-cash changes & other changes (5.0) 11.5 23.8 30.1 60.4 (2.8) 13.3 14.8 Changes in primary working capital components: Trade accounts and note
Slide 17: Reconciliation of SG&A to Adjusted SG&A
Reconciliation of SG&A to Adjusted SG&A GAAP SG&A Reconciliation Commentary Represents non-cash compensation expenses related to stock appreciation rights agreements Represents non-cash compensation expense related to changes in the fair values of noncontrolling interests Represents non-cash equity-
Slide 18: Reconciliation of SG&A to Adjusted SG&A
iation of SG&A to Adjusted SG&A GAAP SG&A Recon AS Ren nt oe Wrote erent aus ied teeta pls earner sma sums soa smi sous tu ©. homue neat orpeasion suse pn teeter oe Pena er Srscnee a eneomerrigae) fe iy ae ee Equity-based compensation © 7 07) (0.6) (05) (04) (os) ©. Represents non-cash equity-based
Slide 19: ie a: oe
ie a: oe i 7