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. All of these forward-looking statements are based on estimates and assumptions made by our
Slide 2: GMS at a Glance
GMS at a Glance Based on FY2015 results. Wallboard share based on volume. Ceilings share based on sales. GMS Overview Net Sales Breakdown (FY 2016) #1 North American specialty distributor of interior construction products (1) 13% market share in wallboard 14% market share in ceilings Critical link b
Slide 3: Multiple Levers to Drive Growth
Multiple Levers to Drive Growth End Market Recovery and Expansion Market Growth Operating Leverage Operational Excellence Margin Expansion Organic Growth Strategic Acquisitions ($ in millions, April FYE) 5-yr CAGR: 16.1% 5-yr CAGR: 50.8% (2) % Margin 2.0% 3.3% 5.0% 6.4% 6.7% 7.4% % Growth NA 12% 17%
Slide 4: Highly Fragmented Market with Significant Consolidation Opportunity
Highly Fragmented Market with Significant Consolidation Opportunity 5 Acquisition Strategy Recent GMS Acquisitions Expansion into metropolitan Chicago area’s residential market Strong cultural fit Target Date Rationale February 2016 January 2016 Strategic entrance into Michigan and Northwestern Ohio
Slide 5: Record Fiscal Q4 2016 and FY 2016 Sales
Record Fiscal Q4 2016 and FY 2016 Sales 6 Net Sales ($ mm) Fiscal Q4 2016 Net Sales (1) +30.3% YOY (5) Net Sales ($ mm) FY 2016 Net Sales (1) +18.3% YOY GMS continues to outpace construction end market expansion (5) +16.0% Base Business YOY +7.6% Base Business YOY Completed three acquisitions in Fis
Slide 6: Continued Margin Expansion in Fiscal Q4 2016 and FY 2016
Continued Margin Expansion in Fiscal Q4 2016 and FY 2016 7 Gross Profit ($ mm) Fiscal Q4 2016 Adjusted Gross Profit & Margin (1) (5) Adj. EBITDA ($ mm) Fiscal Q4 2016 Adjusted EBITDA (2) Gross Profit ($ mm) FY 2016 Adjusted Gross Profit & Margin (1) Tailored investments in yard support center, IT an
Slide 7: Attractive Capital Structure
Attractive Capital Structure Pro forma leverage of ~3.2x Net Debt / LTM Adj. EBITDA as of 4/30/16, after use of net proceeds from IPO together with cash on hand to pay off $160 million Second Lien Term Loan Continued improvement in credit metrics from 6.0x Net Debt / LTM Adj. EBITDA as of 4/30/14 an
Slide 8: Attractive Capital Structure
Attractive Capital Structure Pro forma leverage of ~3.2x Net Debt / LTM Adj. EBITDA as of 4/30/16, after use of net proceeds from IPO together with cash ‘on hand to pay off $160 million Second Lien Term Loan = Continued improvement in credit metrics from 6.0x Net Debt / LTM Adj. EBITDA as of 4/30/14
Slide 9: Quarterly Financials Summary
Quarterly Financials Summary Quarterly Financials Note: Fiscal year end April 30. 10 ($ in millions) 1Q15 2Q15 3Q15 4Q15 FY15 1Q16 2Q16 3Q16 4Q16 FY16 (Unaudited) Wallboard Volume (MSF) 578 613 537 600 2,328 681 700 646 816 2,843 Wallboard Price ($ / '000 Sq. Ft.) 307 $ 305 $ 307 $ 315 $ 309 $ 310 $
Slide 10: Quarterly Sales
Quarterly 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. Quarterly business days for FY17 are 63, 65, 63 and 63
Slide 11: Quarterly Net Income to Adjusted EBITDA
Quarterly Net Income to Adjusted EBITDA GAAP 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 redemption values of noncontrolling interests Represents
Slide 12: Quarterly Cash Flows
Quarterly Cash Flows 13 ($ in millions) (Unaudited) 1Q15 2Q15 3Q15 4Q15 FY15 1Q16 2Q16 3Q16 4Q16 FY16 Net income (loss) $ (5.5) $ 2.7 $ (11.0) $ 2.1 $ (11.7) $ 3.0 $ 2.8 $ (2.2) $ 8.9 $ 12.6 Non-cash changes 11.1 17.7 26.2 24.5 79.6 (2.6) 17.2 12.2 35.4 62.2 Changes in primary working capital compon
Slide 13: EBITDA Adjustments Table Excludes Contributions from Acquisitions
EBITDA Adjustments Table 14 Excludes Contributions from Acquisitions (1) (Unaudited) ($ in millions) 1Q15 2Q15 3Q15 4Q15 FY2015 1Q16 2Q16 3Q16 4Q16 FY2016 Gross Profit - Reported 114.9 $ 125.8 $ 112.0 $ 126.2 $ 479.0 $ 140.9 $ 143.9 $ 134.2 $ 174.2 $ 593.2 $ Adjustments Inventory Fair Value 4.5 - 0.
Slide 14: EBITDA Adjustments Table
EBITDA Adjustments Table (Sin mitions) 3ais 2015 3x5 ears [Fvamis| s16 2016 306 sane | FY2016 (Unaudied) ‘Gross Profit- Reported $149 $1258 $1120 $1262|$4790| $1409 $1499 Sim? $1742| $5032 ‘Adjustments Inventory Fair Value 45-03 __03| _so| __- - os _o2| 10 Gross Profit- Adjusted $194 $1258 $1123 $12
Slide 15: ie a: oe
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