Gms Group Co., Ltd. · TSE:544A
Gms — Q4 FY2021 Earnings Presentation
20 slides from Gms's earnings presentation, Jun 24, 2021
Slide 1: Q4 FY 2021 Earnings Conference Call
Q4 FY 2021 Earnings Conference Call June 24, 2021
Slide 2: Forward-Looking Statement Safe Harbor
2 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 forward - looking terminology such as “ant
Slide 3: Q4 Fiscal 2021 Highlights
3 Q4 Fiscal 2021 Highlights Delivered a strong finish to fiscal 2021 as evidenced by quarterly record levels of net sales, net income and Adjusted EBITDA. ▪ Net sales increased 20.9%; organic net sales increased 17.1%. ▪ Net income of $33.7 million, or $0.77 per diluted share; adjusted net income (1
Slide 4: Full Year Fiscal 2021 Highlights
4 Full Year Fiscal 2021 Highlights Achieved record full year results despite challenges of COVID - 19 as our team met and overcame challenges presented throughout the past year. ▪ Net sales of $3.3 billion increased 1.8%; organic net sales increased 0.4%. ▪ Net income of $105.6 million, or $2.44 per
Slide 5: Q4 Fiscal 2021 Performance: Net Sales and Gross Profit
5 $251.6 $293.9 32.6% 31.5% 20.0% 20.5% 21.0% 21.5% 22.0% 22.5% 23.0% 23.5% 24.0% 24.5% 25.0% 25.5% 26.0% 26.5% 27.0% 27.5% 28.0% 28.5% 29.0% 29.5% 30.0% 30.5% 31.0% 31.5% 32.0% 32.5% 33.0% 33.5% 34.0% 34.5% 35.0% 35.5% 36.0% 36.5% 37.0% $0 $50 $100 $150 $200 $250 $300 Fiscal Q4 2020 Fiscal Q4 2021
Slide 6: Q4 Fiscal 2021 Performance: SG&A, Net Income and Adjusted EBITDA
6 Q4 Fiscal 2021 Performance 1. For a reconciliation of Adjusted SG&A, Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin to the most directly c omp arable GAAP metrics, see Appendix. SG&A and Adjusted SG&A (1) ▪ Reported SG&A was 22.2% of sales compared to 25.4% of sales a year ago. ▪
Slide 7: Cash Flow, Liquidity and Net Leverage
7 Cash Flow, Liquidity and Net Leverage Cash From Operations and Free Cash Flow (1) LTM Net Debt / PF Adjusted EBITDA (2) $89.9 $82.5 ▪ Free cash flow of $72.8 million was approximately 80% of Adjusted EBITDA. ▪ Free cash flow lower year - over - year primarily due to the Company’s efforts to preser
Slide 8: Attractive Capital Structure
8 Attractive Capital Structure Debt (1) Maturity Schedule as of 4/30/2021 $89.9 $82.5 1. As of fiscal year ending April 30; Debt includes First Lien Term Loan, ABL Facility, Senior Notes, Finance Leases & Insta llm ent Notes. $46 $41 $32 $21 $497 $353 2022 2023 2024 2025 2026 Thereafter Q4 Debt Tran
Slide 9: Strategic Growth Priorities
9 Strategic Growth Priorities Expand Share in Core Products Grow Complementary Products Platform Expansion Capitalize on existing fixed investment in locations and equipment where we’re underpenetrated or below expected share Grow select complementary product opportunities outside of core products t
Slide 10: GMS is Well-Positioned for the Long-Term
10 GMS is Well - Positioned for the Long - Term ▪ A North American market leader in specialty distribution of interior construction products. ▪ Significant scale combined with local expertise. ▪ Differentiated service model. ▪ Entrepreneurial culture. ▪ We are successfully executing our business as
Slide 11: Q4 FY 2021 Earnings Conference Call
11 Q4 FY 2021 Earnings Conference Call
Slide 12: Appendix
12 Appendix
Slide 13: Summary Quarterly Financials
13 Summary Quarterly Financials (In millions, except per share data) 1Q20 2Q20 3Q20 4Q20 FY20 1Q21 2Q21 3Q21 4Q21 FY21 (Unaudited) Wallboard Volume (MSF) 1,064 1,103 993 1,029 4,189 1,054 1,073 997 1,147 4,270 Wallboard Price ($ / '000 Sq. Ft.) 321$ 318$ 317$ 314$ 317$ 311$ 308$ 312$ 329$ 311$ Wallb
Slide 14: Quarterly Cash Flows
14 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) 1Q20 2Q20 3Q20 4Q20 FY20 1Q21 2Q21 3Q21 3Q21 FY21 Net income (loss) $ 24.8
Slide 15: Q4 2021 Net Sales
15 Q4 2021 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) FY21 FY20 Reported Organic (1) Organic (1) 902.7$ 770.9$ Acquisitions 15.8 - Fx
Slide 16: Quarterly Net Income (Loss) to Adjusted EBITDA Reconciliation
16 Quarterly Net Income (Loss) 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
Slide 17: Net Income to Pro Forma Adjusted EBITDA Reconciliation
17 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 18: Income (Loss) Before Taxes to Adjusted Net Income Reconciliation
18 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. Normalized cash tax rate
Slide 19: Reported SG&A to Adjusted SG&A Reconciliation
19 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 20: Leverage Summary
20 Leverage Summary (1) Net of unamortized discount of $1.8mm, $1.5 mm, $1.4 mm, $1.4 mm, and $0.6 million as of April 30, 2020, July 31, 2020, Octo ber 31, 2020, January 31,2021, and April 30,2021, respectively. (2) Net of deferred financing costs of $9.0 mm, $8.5 mm, $8.1 mm, $7.6 mm, and $4.1 mm