Gms Group Co., Ltd. · TSE:544A
Gms — Q3 FY2019 Earnings Presentation
17 slides from Gms's earnings presentation, Mar 5, 2019
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. You can generally identify forward-looking statements by the Company’s use of forward-look
Slide 2: Fiscal Q3 2019 Highlights
Fiscal Q3 2019 Highlights 3 We achieved record third quarter results Net sales increased 23.6% to a record $723.9 million Organic net sales growth of 6.6% Wallboard sales increased 16.0% (3.9% organic) Ceilings sales increased 16.4% (10.6% organic) Steel framing sales increased 21.4% (13.1% organic)
Slide 3: Fiscal Q3 2019 Performance: Net Sales and Gross Profit
Fiscal Q3 2019 Performance Gross Profit ($ mm) Gross Profit & Margin Net Sales & Mix 4 Net Sales ($ mm) +23.6% YOY Organic net sales growth of 6.6% Wallboard: +3.9% organic (Volume flat/Price ~+4%) Ceilings: +10.6% organic (Volume ~ +3%/Price ~ +7%) Steel: +13.1% organic (Volume ~+3%/Price ~+10%) Ot
Slide 4: Fiscal Q3 2019 Performance: Net Income and Adjusted EBITDA
Fiscal Q3 2019 Performance Adj. EBITDA ($ mm) Net Income & Adjusted EBITDA (1) For a reconciliation of Adj. SG&A to reported SG&A and Adj. EBITDA and Adj. Net Income to Net Income, the most directly comparable GAAP metrics, see Appendix. Fiscal Q3 2019 includes the $5.9 million favorable impact to A
Slide 5: Attractive Capital Structure
Attractive Capital Structure Generated $59.8 million of cash from operations and $55.6 million of free cash flow (1) during the quarter, reducing net debt by $32.8 million and repurchasing $11.5 million of common stock Post Titan transaction capital structure as of 1/31/19: Reflects the June 1, 2018
Slide 6: Leading Specialty Distributor Poised for Continued Growth
Leading Specialty Distributor Poised for Continued Growth 7 Market – Leading Distributor of Interior Building Products with significant scale and local expertise Differentiated Service Model Drives Market Leadership Multiple Levers to Drive Market Leading Growth – Organic Growth, Greenfields, M&A, O
Slide 7: Leading Specialty Distributor Poised for Continued Growth
Leading Specialty Distributor Poised for Continued Growth Market ~ Leading Distributor of Interior Building Products with significant scale and local expertise Y Differentiated Service Model Drives Market Leadership Muttiple Levers to Drive Market Leading Growth — Organic Growth, Greenfields, M&A, O
Slide 8: Summary Quarterly Financials
Summary Quarterly Financials 9 FY19 Business Days 1Q19 64 days 2Q19 65 days 3Q19 62 days 4Q19 63 days FY19 254 days Note: Fiscal year end April 30. Includes greenfields, which we consider extensions of “base business.” FY18 acquired branches have been updated to reflect the number of acquired branch
Slide 9: Quarterly Cash Flows
Quarterly Cash Flows 10 Free cash flow is a non-GAAP financial measure defined as net cash provided by operations less capital expenditures. Differences may occur due to rounding. ($ in millions) (Unaudited) 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 Net income $ 15.3 $ 18.0 $ 19.7 $ 9.9 $ 63.0 $ 8.7 $
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. FY18 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 13 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: Reconciliation of Income Before Taxes to Adjusted Net Income
Reconciliation of Income Before Taxes to Adjusted Net Income Adjusted Net Income Reconciliation Commentary 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. Full
Slide 14: Reconciliation of Gross Profit to Adjusted Gross Profit
Reconciliation of Gross Profit to Adjusted Gross Profit GAAP Gross Profit Reconciliation Commentary Represents the non-cash cost of sales impact of purchase accounting adjustments to increase inventory to its estimated fair value 15 (Unaudited) 1Q18 2Q18 3Q18 4Q18 FY2018 1Q19 2Q19 3Q19 ($ in million
Slide 15: Reconciliation of SG&A to Adjusted SG&A & Organic Adjusted SG&A
Reconciliation of SG&A to Adjusted SG&A & Organic Adjusted SG&A 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 Rep
Slide 16: Reconciliation of SG&A to Adjusted SG&A & Organic Adjusted SG&A
Reconciliation of SG&A to Adjusted SG&A & Organic Adjusted SG&A GAAP SG&AReconciliation jonas ‘lou mas sais eas [rome] igi aie a Samirg Sona tapered sie sea sisss sists [sens] suse susss s.ue2 aguzerent feapprcatenigneeceejenet ges asa] a] swe oe Sesreaveronewiry eet 9 2 es @s| us| fo) ea 80 hurnses
Slide 17: Q&A