Slide 1: Q4 2023 Earnings Call June 22, 2023
Q4 2023 Earnings Call June 22, 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 – FY2023 at a Glance
3 FY23 Net Income $ 333 M FY23 Cash from Operations GMS – FY2023 at a Glance FY23 Free Cash Flow* * For a reconciliation of Adjusted EBITDA or Free Cash Flow to the most directly comparable GAAP metrics, see Appendix. Unless indicated otherwise, comparisons are to full year fiscal 2022. FY23 Adj. EB
Slide 4: Strategic Growth Priorities – Q4 Fiscal 2023 Update
4 Strategic Growth Priorities – Q4 Fiscal 2023 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: Q4 Fiscal 2023 Sales Highlights
5 Q4 Fiscal 2023 Sales Highlights • Inconsistent fundamentals with strong levels of multi - family demand, signs of a recovering commercial environment with softness in single - family and office. • Resilient Wallboard, Ceilings and Complementary Products pricing but with deflationary trends in Stee
Slide 6: Net Income Declined While Adj. EBITDA Improved YOY for Q4 FY23
6 $412.8 $424.5 32.0% 32.5% 31.1% 31.6% 32.1% 32.6% $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Fiscal Q4 2022 Fiscal Q4 2023 Gross Profit Gross Margin ($ mm) With Higher SG&A & Increased Interest Expense, Net Income Declined While Adj. EBITDA 1 Improved YOY for Q423 1 For a reconciliation o
Slide 7: Attractive Capital Structure Supports Strategic Priorities
7 Attractive Capital Structure Supports Strategic Priorities Repurchased approximately 497 thousand shares for $27.9 million during Q4 FY23; $100.2 million of repurchase authorization remaining at 4/30/23 $89.9 1.8x 1.8x 1.6x 1.6x 1.4x 4/30/2022 7/31/2022 10/31/2022 1/31/2023 4/30/2023 $52 $38 $31 $
Slide 8: End Market & Product-Level Expectations for Q1 FY2024
8 End Market & Product - Level Expectations for Q1 FY2024 Product Category Q1 FY24 YOY Volume Expectations Q1 FY24 YOY Price Expectations Wallboard • Multi - family: Up high teens • Single - family: Down 10 – 15% • Commercial: Up mid - to - high single - digits • Total Wallboard: Flat to down low si
Slide 9: Consolidated GMS Expectations for Q1 FY24 and Full Year Fiscal 2024
9 Consolidated GMS Expectations for Q1 FY24 and Full Year Fiscal 2024 Metric for Q1 FY24 Q1 FY24 Expectation Net Sales Up low single - digits YOY on a per day basis Gross Margin At or near prior year gross margin of 32% Adjusted EBITDA 1 $170 million - $175 million Metric for Full Year FY24 Full Yea
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) 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 (Unaudited) Wallboard Volume (MSF) 1,095 1,104 1,054 1,181 4,433 1,191 1,232 1,058 1,130 4,611 Wallboard Price ($ / '000 Sq. Ft.) 356$ 376$ 394$ 416$ 386$ 438$ 474$ 473$ 481$ 467$ Wallboard 390$ 415$ 415$
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) 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 Net income $ 61.2 $ 74.4
Slide 14: Q4 2023 Net Sales
14 Q4 2023 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) FY23 FY22 Reported Organic (1) Organic (1) 1,297.0$ 1,288.7$ Acquisitions 18.1
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 $0.5mm, $0.4mm, $0.4mm, $0.3mm and $0.3mm as of April 30, 2022, July 31, 2022, October 31, 202 2, January 31, 2023 and April 30, 2023 respectively. (2) Net of deferred financing costs of $3.1mm, $2.9mm, $2.6mm, $2.4mm and $2.1mm as of April 30,
Slide 20: Net Income to Adjusted EBITDA Outlook
20 Net Income to Adjusted EBITDA Outlook Q1 FY24 Net Income $89 - $92 Interest expense, net 18.4 - 18.9 Provision for income taxes 30.1 - 31.0 Depreciation and amortization expense 30.5 - 31.4 Other Adjustments 2.0 Adjusted EBITDA $170 - $175 Reconciliation