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 Q2) (2) Wallboard 46% Ceilings 15% Steel Framing 16% Other 23% CAGR: 39.5% (3) ($ in millions, April FYE) #1 North American specialty distributor of interior construction products (1) More than 210 branches across 42 states 14.5% 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: Q2 2018 Highlights
Q2 2018 Highlights Above-Market Growth Attractive Capital Structure Accretive Acquisitions Continued Profit Improvement Net sales increased 9.5% to a record $648.0 million Base business net sales up 5.1% Wallboard unit volume grew 4.3% to a record 929 million square feet Net income increased 4.6% to
Slide 5: Profitable Sales Expansion in Fiscal Q2 2018
Profitable Sales Expansion in Fiscal Q2 2018 Gross Profit ($ mm) Fiscal Q2 2018 Gross Profit & Margin Adj. EBITDA ($ mm) Fiscal Q2 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 three
Slide 6: Attractive Capital Structure
Attractive Capital Structure Leverage of 2.9x Net Debt / LTM Pro Forma Adj. EBITDA as of 10/31/17, down from 3.4x Net Debt / LTM Pro Forma Adj. EBITDA as of 10/31/16 Substantial liquidity, with $19.8 million of cash and an additional $322 million undrawn on the ABL facility, as of 10/31/17 Moody’s a
Slide 7: Leading Specialty Distributor Poised for Continued Growth
Leading Specialty Distributor Poised for Continued Growth Market Leader with Significant Scale Advantages – #1 North American Distributor of Wallboard and Ceilings Differentiated Service Model Drives Market Leadership Multiple Levers to Drive Above-Market Growth – Market Share, Greenfields, M&A, Ope
Slide 8: Appendix
5 :4 2 2 / 4 1 0 /2 /6 2 / t n e m Docu d ve Unsa Appendix
Slide 9: Summary Quarterly Financials
Summary Quarterly Financials Note: Fiscal year end April 30. 11 (In millions, except per share data) 1Q17 2Q17 3Q17 4Q17 FY17 1Q18 2Q18 (Unaudited) Wallboard Volume (MSF) 818 891 842 906 3,458 914 929 Wallboard Price ($ / '000 Sq. Ft.) 307 $ 303 $ 303 $ 311 $ 306 $ 311 $ 311 $ Wallboard 251 $ 270 $
Slide 10: 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 11: 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 12: LTM Net Income to Pro Forma Adjusted EBITDA
LTM Net Income to Pro Forma Adjusted EBITDA Pro Forma Adjusted EBITDA Reconciliation Commentary 14 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 13: 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 14: Quarterly Cash Flows
Quarterly Cash Flows 16 ($ in millions) (Unaudited) 1Q17 2Q17 3Q17 4Q17 FY17 1Q18 2Q18 Net income (loss) $ 9.2 $ 17.2 $ 8.2 $ 14.3 $ 48.9 15.3 $ 18.0 Non-cash changes (5.0) 11.5 23.8 30.1 60.4 (2.8) 13.3 Changes in primary working capital components: Trade accounts and notes receivable (19.4) 0.0 16
Slide 15: SG&A Adjustments Table
SG&A Adjustments Table 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-based compensatio
Slide 16: SG&A Adjustments Table
SG&A Adjustments Table GAAP SG&A Reconciliation T) ES ra ET (ene eat a cee oe sae cannes Pen Goo Go Go| ele eee ‘Adjustments ‘expense related to changes in the fair values re pect eae Redeemable noncontrolling interests (8) a eee if ferret can enya ae poco ecrly acer eee cat oss (gain) on disposal o
Slide 17: www.gms.com
www.gms.com i