Slide 1: Q3 2022 Earnings Call March 3, 2022
Q3 2022 Earnings Call March 3, 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: Q3 Fiscal 2022 Highlights
3 Q3 Fiscal 2022 Highlights Highest Levels of Net Sales, Net Income and Adjusted EBITDA 1 Ever Recorded for our Fiscal 3rd Quarter ▪ Quarterly net sales of $1.15 billion, up 53.6% from Q321 ‒ Same day sales growth of 51.1% ▪ Sales growth of more than 30% in all four major product categories, includi
Slide 4: Attractive Market Dynamics
4 Attractive Market Dynamics GMS is well - positioned to benefit from favorable fundamentals that support growth and demand for our products Strong residential market demand Low interest rate environment Favorable demographics support future growth in housing Low levels of existing homes for sale to
Slide 5: Strategic Growth Priorities – Q3 FY22 Update
5 Strategic Growth Priorities – Q3 FY22 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 offering Expand the
Slide 6: Q3 Fiscal 2022 Performance – Net Sales of $1.15 Billion
6 $243.3 $367.8 $0 $50 $100 $150 $200 $250 $300 Fiscal Q3 2021 Fiscal Q3 2022 Gross Profit Q3 Fiscal 2022 Performance – Net Sales of $1.15 Billion Net Sales & Mix Gross Profit ▪ Gross Profit increased 51.1% ▪ Gross margin was 31.9% ‒ One - time purchase accounting - related adjustments negatively im
Slide 7: Q3 Fiscal 2022 – Improved Profitability
7 $62.6 $135.1 8.3% 11.7% Fiscal Q3 2021 Fiscal Q3 2022 Adj. EBITDA Adj. EBITDA Margin $181.7 $235.6 24.2% 20.4% 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 Q3 2021 Fiscal Q3 2022 Adj.
Slide 8: Attractive Capital Structure Supports Strategic Priorities
8 Attractive Capital Structure Supports Strategic Priorities • Cash provided by Operations was $57.2 million, compared to $44.4 million in Q3 FY21 • Free Cash Flow 1 was $40.2 million, compared to $38.4 million in Q3 FY21 • Increased inventory balances as a result of the Company’s commitment to our
Slide 9: Expectations
9 Expectations 1. For a reconciliation of Adjusted SG&A, Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow to the mo st directly comparable GAAP metrics, see Appendix. 2. Free Cash Flow for fiscal 2022 is expected to be below the longer - term objective to generate 40%
Slide 10: GMS is Well-Positioned Now and for the Long-Term
10 GMS is Well - Positioned Now and for the Long - Term Industry leader with local expertise and broad North American scale Superior safety track record and logistics execution Breadth of product offerings, with growing Complementary Product opportunities Strong balance sheet , substantial liquidity
Slide 11: Appendix
11 Appendix
Slide 12: Summary Quarterly Financials
12 Summary Quarterly Financials (In millions, except per share data) 1Q21 2Q21 3Q21 4Q21 FY21 1Q22 2Q22 3Q22 (Unaudited) Wallboard Volume (MSF) 1,054 1,073 997 1,147 4,270 1,095 1,104 1,054 Wallboard Price ($ / '000 Sq. Ft.) 311$ 308$ 312$ 329$ 311$ 356$ 376$ 394$ Wallboard 328$ 331$ 311$ 377$ 1,330
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) 1Q21 2Q21 3Q21 3Q21 FY21 1Q22 2Q22 3Q22 Net income $ 27.2 $ 28.5 $ 16.1 $ 3
Slide 14: Q3 2022 Net Sales
14 Q3 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) 1,063.0$ 751.2$ Acquisitions 87.7 -
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 $1.4 mm, $0.6 mm, $0.6 mm , $0.5 mm and $0.5mm as of January 31,2021, April 30,2021, July 31, 2021, October 31, 2021, and January 31, 2022 respectively. (2) Net of deferred financing costs of $7.6 mm, $4.1 mm, $3.9 mm, $3.6 mm and $3.4mm as of J
Slide 20: GMS Completes Acquisition of AMES Taping Tools
20 Acquisition: On 12/1/21, GMS acquired AMES Taping Tools Holding LLC (“AMES”) for a preliminary purchase price of $212.5 million in cash. GMS Completes Acquisition of AMES Taping Tools Geographic Footprint Company & Acquisition Overview Business Profile: AMES is the nation’s foremost provider of a