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 the
Slide 2: Q2 2017 Highlights
Q2 2017 Highlights Net sales increased 29.2% to $591.8 million Base business net sales up 10.8% Wallboard unit volume grew 27.2% to 891 million square feet Above-Market Growth Net income significantly increased to $17.2 million Gross margin expanded 120 basis points to 32.6% Adjusted EBITDA grew 42.
Slide 3: Attractive Acquirer with Significant Consolidation Opportunity
Attractive Acquirer with Significant Consolidation Opportunity Quarter Rationale Acquisition Industry Structure: Large, highly fragmented industry comprised of ~400 competitors Similar business operations enable efficient integration Limited number of scaled players LTM Sales of $27.0 million Nice g
Slide 4: Continue to Use Multiple Levers to Drive Growth
Continue to Use Multiple Levers to Drive Growth $184 Continued market share gains Greenfield branch openings Strategic acquisition opportunities in highly fragmented market FY-12 FY-13 FY-14 FY-15 FY-16 LTM Q2 17 End market recovery and expansion 14.4% 13.1% 9.9% Operating leverage Operational excel
Slide 5: Profitable Sales Expansion in Fiscal Q2 2017
Profitable Sales Expansion in Fiscal Q2 2017 ($ in millions) Fiscal Q2 YOY Grow th Base Business Adj. EBITDA ($ mm) (1) FY16 FY17 $50 Wallboard Volume (MSF) Wallboard Price ($/'000 Sq. Ft.) 700 306 891 303 27.2% (1.0%) 9.5% $40 $ $ $30 Net Sales ) $20 Wallboard Ceilings Steel Framing Other Products
Slide 6: One-Stop-Shop Outsized Impact on Other Products Sales
One-Stop-Shop Outsized Impact on Other Products Sales Net Sales ($ mm) 150.0 $140.4 100.0 Steel Framing Fasteners 50.0 Joint Compound Wallboard - Fiscal Q2 2016 Fiscal Q2 2017 Acquisitions Base Business 15.0% organic growth in net sales of Other Products, well in excess of 10.8% overall organic grow
Slide 7: Strong Gross Margin Profile
Strong Gross Margin Profile Continued focus on growing profitability through market leadership, purchasing opportunities and price optimization $2,089 $1,162 $991 GMS gross margin growth largely independent of wallboard price GMS gross margin contribution diversified across product and end markets 2
Slide 8: Attractive Capital Structure
Attractive Capital Structure Leverage of 3.4x Net Debt / LTM Adj. EBITDA as of 10/31/16, continued improvement in credit metrics from 6.0x Net Debt / LTM Adj. EBITDA as of 4/30/14 and 4.3x as of 4/30/16 Substantial liquidity, with $16.4 million of cash on hand and an additional $168 million undrawn
Slide 9: Leading Specialty Distributor Poised for Continued Growth
Leading Specialty Distributor Poised for Continued Growth Market Leader with Significant Scale Advantages – #1 North American Distributor of Wallboard and Ceilings Differentiated Service Model Drives Market Leadership Multiple Levers to Drive Above-Market Growth – Market Share, Greenfields, M&A, Ope
Slide 10: Appendix
Unsaved Document / 2/6/2014 / 22:45 Appendix
Slide 11: Summary Quarterly Financials
Summary Quarterly Financials Note: Fiscal year end April 30. 12 (In millions, except per share data)1Q162Q163Q164Q16 (Unaudited) Wallboard Volume (MSF)681700646816 Wallboard Price ($ / '000 Sq. Ft.)$310$306$305$305 Wallboard$211$214$197$249 Ceilings79756578 Steel framing67706678 Other products959992
Slide 12: Quarterly Net Sales
Quarterly Net Sales ($ in millions) (Unaudited) Base Business (1) (2) Acquisitions (2) Total Net Sales Business Days (3) Net Sales by Business Day Base Business Branches (4) (5) Acquired Branches (5) Total Branches Note: Fiscal year end April 30. (1) When calculating our “base business” results, we
Slide 13: Quarterly Net Income to Adjusted EBITDA
Quarterly Net Income to Adjusted EBITDA Commentary A. Represents non-cash compensation expenses related to stock appreciation rights agreements B. Represents non-cash compensation expense related to changes in the fair values of noncontrolling interests C. Represents non-cash equity-based compensati
Slide 14: LTM Net Income to Pro Forma Adjusted EBITDA
LTM Net Income to Pro Forma Adjusted EBITDA Commentary ( $ in 000s) (Unaudited) 2Q17 LTM A. Represents non-cash compensation expenses related to stock appreciation rights agreements B. Represents non-cash compensation expense related to changes in the fair values of noncontrolling interests Represen
Slide 15: Quarterly Cash Flows
Quarterly Cash Flows ($ in millions) (Unaudited) Historical 1Q16 2Q16 3Q16 4Q16 FY16 1Q17 2Q17 Net income (loss) Non-cash changes Changes in primary working capital components: Trade accounts and notes receivable Inventories Accounts payable Cash provided by (used in) operating activities $ 3.0 (2.6
Slide 16: SG&A Adjustments Table
SG&A Adjustments Table Commentary (Unaudited) ($ in millions) A. Represents non-cash compensation expenses related to stock appreciation rights agreements 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 SG&A - Reported Adjustments Stock appreciation rights expense (benefit) Redeemable noncontrolling interests Equity-
Slide 17: www.gms.com
www.gms.com Unsaved Document / 2/6/2014 / 22:45
Slide 18: Slide 18