Slide 1: Q4 2022 Earnings Call
Q4 2022 Earnings Call June 23, 2022
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: Q4 Fiscal 2022 Highlights
3 Q4 Fiscal 2022 Highlights Record Levels of Net Sales, Net Income and Adjusted EBITDA 1 ▪ Quarterly net sales of $1.3 billion, up 38.2% from Q421 ‒ Same day sales growth of 40.4% ▪ Sales growth of more than 20% in all four major product categories, including Wallboard, Steel Framing, Ceilings and C
Slide 4: Full Year Fiscal 2022 Highlights
4 Full Year Fiscal 2022 Highlights Record Levels of Net Sales, Net Income and Adjusted EBITDA 1 ▪ Full year fiscal 2022 net sales of $4.6 billion, up 40.5% from 2021 ‒ Same day sales growth of 40.0% ▪ For each of our four major product categories: ‒ Sales growth of more than 25% ‒ Positive year - ov
Slide 5: Strategic Growth Priorities – Full Year Fiscal 2022 Update
5 Strategic Growth Priorities – Full Year Fiscal 2022 Update Capitalize on existing fixed investments in locations and equipment where we are underpenetrated or below expected share Grow Complementary Product opportunities outside of core products to diversify and profitably expand our product offer
Slide 6: Q4 Fiscal 2022 Performance – Net Sales of $1.3 Billion
6 $293.9 $412.8 $0 $50 $100 $150 $200 $250 $300 Fiscal Q4 2021 Fiscal Q4 2022 Gross Profit Q4 Fiscal 2022 Performance – Net Sales of $1.3 Billion Net Sales & Mix Gross Profit ▪ Gross Profit increased 40.5% ▪ Gross margin was 32.0% ‒ 50 basis point year - over - year increase due to our successful pa
Slide 7: Q4 Fiscal 2022 – Improved Profitability
7 $91.2 $154.2 9.8% 12.0% Fiscal Q4 2021 Fiscal Q4 2022 Adj. EBITDA Adj. EBITDA Margin $204.2 21.9% 20.2% 18.0% 18.5% 19.0% 19.5% 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% $0 $50 $100 $150 $200 $250 Fiscal Q4 2021 Fiscal Q4 2022 Adj. SG&A A
Slide 8: Attractive Capital Structure Supports Strategic Priorities
8 Attractive Capital Structure Supports Strategic Priorities • Generated Cash from Operating Activities of $199.5 million, compared to $84.8 million in Q4 FY21 • Free Cash Flow 1 was $191.6 million, compared to $72.8 million in Q4 FY21 • Significant improvement in cash flow as we took down inventory
Slide 9: GMS is Well Positioned across Commercial and Residential Markets
9 GMS is Well Positioned across Commercial and Residential Markets with Scale and Balanced Product Mix • Continue to see high levels of residential activity • Gap between housing starts and completions provides confidence for remainder of calendar 2022 • Favorable demographics in an underbuilt indus
Slide 10: Expectations for Q1 Fiscal 2023
10 Expectations 1. For a reconciliation of Adjusted SG&A, Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow to the mo st directly comparable GAAP metrics, see Appendix. Expectations for Q1 Fiscal 2023 Favorable pricing and continued strength in residential should result
Slide 11: GMS is Well-Positioned Now and for the Long-Term
11 GMS is Well - Positioned Now and for the Long - Term Industry leader with local expertise and broad North American scale Superior safety track record and logistics execution Breadth of product offerings, with growing Complementary Product opportunities Strong balance sheet , substantial liquidity
Slide 12: Appendix
12 Appendix
Slide 13: Summary Quarterly Financials
13 Summary Quarterly Financials (In millions, except per share data) 1Q21 2Q21 3Q21 4Q21 FY21 1Q22 2Q22 3Q22 4Q22 FY22 (Unaudited) Wallboard Volume (MSF) 1,054 1,073 997 1,147 4,270 1,095 1,104 1,054 1,181 4,433 Wallboard Price ($ / '000 Sq. Ft.) 311$ 308$ 312$ 329$ 311$ 356$ 376$ 394$ 416$ 386$ Wal
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) 1Q21 2Q21 3Q21 4Q21 FY21 1Q22 2Q22 3Q22 4Q22 FY22 Net income $ 27.2 $ 28.5
Slide 15: Q4 2022 Net Sales
15 Q4 2022 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) FY22 FY21 Reported Organic (1) Organic (1) 1,201.7$ 932.2$ Acquisitions 87.8 -
Slide 16: Quarterly Net Income to Adjusted EBITDA Reconciliation
16 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 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 Before Taxes to Adjusted Net Income Reconciliation
18 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 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 $0.6 mm, $0.6 mm , $0.5 mm, $0.5mm and $0.5mm as of April 30,2021, July 31, 2021, October 31, 2021, January 31, 2022, and April 30, 2022 respectively . (2) Net of deferred financing costs of $4.1 mm, $3.9 mm, $3.6 mm, $3.4mm and $3.1mm as of Apr
Slide 21: Leverage Summary (FY19 - FY22)
21 Leverage Summary (FY19 - FY22) (1) Net of unamortized discount of $2.1mm, $1.6mm and $0.6mm as of April 30, 2019, 2020 and 2021, respectively. (2) Net of deferred financing costs of $12.1mm, $9.0mm and $4.1mm as of April 30, 2019, 2020 and 2021, respectively (3) Net of Deferred financing costs of