Gms Group Co., Ltd. · TSE:544A
Gms — Q1 FY2024 Earnings Presentation
20 slides from Gms's earnings presentation, Aug 31, 2023
Slide 1: Q1 2024 Earnings Call August 31, 2023
Q1 2024 Earnings Call August 31, 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 – Q1 FY24 at a Glance
3 Q124 Net Income $ 86.8 M Q124 Cash from Operations GMS – Q1 FY24 at a Glance Q124 Net Income Margin *For a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to the most directly comparable GAAP metrics, see Appendix. Unless indicated otherwise, comparisons are to Q1 2023. Q124 Adj. EBIT
Slide 4: Strategic Growth Priorities – Q1 Fiscal 2024 Update
4 Strategic Growth Priorities – Q1 Fiscal 2024 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 5: Q1 Fiscal 2024 Sales Highlights
5 Q1 Fiscal 2024 Sales Highlights • Mixed end market economics, with continuing multi - family demand and strength in myriad commercial applications, offset by softness in single - family and office. • Resilient Wallboard, Ceilings and Complementary Products pricing, but with deflationary trends in
Slide 6: Solid Levels of Profitability
6 $434.7 $450.6 32.0% 32.0% 31.1% 31.6% 32.1% 32.6% $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Fiscal Q1 2023 Fiscal Q1 2024 Gross Profit Gross Margin ($ mm) Solid Levels of Profitability 1 For a reconciliation of Adjusted SG&A, Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margi
Slide 7: Attractive Capital Structure Supports Strategic Priorities
7 Attractive Capital Structure Supports Strategic Priorities Repurchased approximately 469 thousand shares for $30.5 million during Q1 FY24; $69.6 million of repurchase authorization remaining 1.8x 1.6x 1.6x 1.4x 1.5x 7/31/2022 10/31/2022 1/31/2023 4/30/2023 7/31/2023 $43 $41 $34 $28 $134 $834 FY24
Slide 8: End Market & Product-Level Expectations for Q2 FY2024
8 End Market & Product - Level Expectations for Q2 FY2024 Product Category Q2 FY24 YOY Volume Expectations Q2 FY24 YOY Price/Mix Expectations Wallboard • Multi - family: Up high single - digits • Single - family: Down low double - digits • Commercial: Up low single - digits • Total Wallboard: Down s
Slide 9: Consolidated GMS Expectations for Q2 FY24 and Full Year Fiscal 2024
9 Consolidated GMS Expectations for Q2 FY24 and Full Year Fiscal 2024 Metric for Q2 FY24 Q2 FY24 Expectation Net Sales Down low single - digits primarily driven by steel price declines Gross Margin At or near long term average of 32% Adjusted EBITDA 1 $160 million - $165 million Metric for Full Year
Slide 10: Appendix
10 Appendix
Slide 11: GMS at a Glance
11 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. Informa
Slide 12: Summary Quarterly Financials
12 Summary Quarterly Financials (In millions) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 (Unaudited) Wallboard Volume (MSF) 1,191 1,232 1,058 1,130 4,611 1,204 Wallboard Price ($ / '000 Sq. Ft.) 438$ 474$ 473$ 481$ 467$ 475$ Wallboard 522$ 585$ 501$ 545$ 2,152$ 571$ Ceilings 167 160 147 155 629 175 Steel framing
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) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 Net income $ 89.5 $ 103.2 $ 64.8 $ 75.6 $ 333
Slide 14: Q1 2024 Net Sales
14 Q1 2024 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.
Slide 15: Quarterly Net Income to Adjusted EBITDA Reconciliation
15 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 16: Net Income to Pro Forma Adjusted EBITDA Reconciliation
16 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 17: Income Before Taxes to Adjusted Net Income Reconciliation
17 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 18: Reported SG&A to Adjusted SG&A Reconciliation
18 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 19: Leverage Summary
19 Leverage Summary (1) Net of unamortized discount of $0.4mm, $0.4mm, $0.3mm, $0.3mm and $2.5mm as of July 31, 2022, October 31, 2022, January 31, 2 023 , April 30, 2023 and July 31, 2023 respectively. (2) Net of deferred financing costs of $2.9mm, $2.6mm, $2.4mm, $2.1mm and $4.1mm as of July 31, 2
Slide 20: Net Income to Adjusted EBITDA Outlook Reconciliation
20 Net Income to Adjusted EBITDA Outlook Reconciliation