Gms Group Co., Ltd. · TSE:544A
Gms — Raymond James Institutional Investors Conference 2022
26 slides from Gms's conference presentation, Mar 8, 2022
Slide 1: Raymond James Institutional Investors Conference
Raymond James Institutional Investors Conference March 8, 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: GMS at a Glance
3 LTM Q322 Net Sales $ 4.3 B LTM Q322 Adj. EBITDA* $ 503.9 M Market Cap $ 2.2 B Leading Brands 50+ Distribution locations across the U.S. & Canada 290+ GMS at a Glance ~6,500 Employees NYSE Ticker Symbol GMS Tool Sales, Rentals & Service Centers 90+ *For a reconciliation of Adjusted EBITDA margin to
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 Demographics support future growth in housing Lack of existing homes for sale supports new home
Slide 5: US and Canada Housing Starts and Commercial Put-in-Place
5 $479.9 $463.6 $479.1 $505.5 $488.9 $435.3 $442.2 $459.5 $478.0 $548.2 $610.2 2019A 2020A 2021E 2022E 2023E Median Low High 1,180 1,210 1,250 1,295 1,397 1,587 1,628 1,590 6% 3% 3% 4% 8% 14% 3% (2%) 2016 2017 2018 2019 2020 2021E 2022E 2023E Housing Starts YoY Growth United States Housing Starts (0
Slide 6: Diversified and Balanced End Market Exposure
6 Diversified and Balanced End Market Exposure Net Sales Breakdown Fiscal 2021 Diversified exposure across commercial and residential new and repair and remodel construction markets continues to be an advantage Residential • Single - Family New • Multi - Family New • Repair & Remodel ~45% Commercial
Slide 7: Providing Value to Contractors and Builders
7 Providing Value to Contractors and Builders A Leading North American specialty distributor of construction products GMS provides the products and value - added service needed by the contractor who installs wallboard, ceilings, steel framing and other complementary building products needed to compl
Slide 8: Local Go-To-Market Strategy with Scale Benefits
8 Local Go - To - Market Strategy with Scale Benefits GMS distribution locations USA and Canada GMS’s model provides for the customer intimacy of a local business plus significant economies of scale, while maintaining high service levels and an entrepreneurial culture • Combines the benefits of a lo
Slide 9: Strategic Growth Priorities
9 Strategic Growth Priorities Capitalize on existing fixed investments in locations & equipment where we’re underpenetrated or below expected share Grow Complementary Product opportunities outside of core products to diversify and profitably expand our product offering Expand the platform through ac
Slide 10: Proven Track Record of Growth & Improved Profitability
10 CAGR FY - 16 through LTM Q322 : Net Sales: Adjusted EBITDA*: Proven Track Record of Growth & Improved Profitability *For a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to the most directly comparable GAAP metrics, see Appendi x. $1,858 $2,319 $2,511 $3,116 $3,241 $3,299 $4,278 7.4
Slide 11: Attractive Capital Structure Supports Strategic Initiatives
11 Attractive Capital Structure Supports Strategic Initiatives • Substantial liquidity, with $87.0 million of cash on hand and an additional $183.2 million available under our revolving credit facilities as of 1/31/2022 • No near - term debt maturities • “Through the Cycle” objective of Free Cash Fl
Slide 12: GMS is Well-Positioned Now and for the Long-Term
12 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 13: Appendix
Appendix OMS,
Slide 14: Q3 Fiscal 2022 Highlights
14 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 $1.15 billion, up 53.6% from Q321 ‒ Same day sales growth of 51.1% ▪ Sales growth of more than 30% in all four major product categories, includ
Slide 15: Strategic Growth Priorities – Q3 FY22 Update
15 Strategic Growth Priorities – Q3 FY22 Update Capitalize on existing fixed investments in locations and equipment where we are underpenetrated or below expected share Grow Complementary Product opportunities outside of core products to diversify and profitably expand our product offering Expand th
Slide 16: Continuing to Diversify and Profitably Expand Offerings
16 20% 19% 16% 45% 31% 14% 14% 41% Continuing to Diversify and Profitably Expand Offerings Successfully Growing Complementary Products • Wallboard: Used to finish the interior walls and ceilings in residential, commercial and institutional construction projects • Ceilings: Suspended ceiling systems
Slide 17: Track Record of Successful Platform Expansion
17 Track Record of Successful Platform Expansion Date Acquisition/Greenfield Locations Strategic Rationale Dec - 21 ▪ 85 US Locations ▪ Diversified core products with complementary product offerings Dec - 21 ▪ 2 US Locations (Florida) ▪ Added market density in a top 20 MSA while adding extensive gro
Slide 18: Significant Opportunities for Further Platform Expansion
18 Significant Opportunities for Further Platform Expansion GMS has a significant opportunity to expand its geographic footprint in under - served and under - penetrated markets through accretive greenfield locations and acquisitions • Current footprint comprises ~295 locations covering 46 U.S. Stat
Slide 19: Summary Quarterly Financials
19 Summary Quarterly Financials (In millions, except per share data) 1Q21 2Q21 3Q21 4Q21 FY21 1Q22 2Q22 3Q22 (Unaudited) Wallboard Volume (MSF) 1,054 1,073 997 1,147 4,270 1,095 1,104 1,054 Wallboard Price ($ / '000 Sq. Ft.) 311$ 308$ 312$ 329$ 311$ 356$ 376$ 394$ Wallboard 328$ 331$ 311$ 377$ 1,330
Slide 20: Quarterly Cash Flows
20 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. Raymond James Conference March 8, 2022 ($ in millions) (Unaudited) 1Q21 2Q21 3Q21 4Q21 FY21 1Q22 2Q22 3
Slide 21: Q3 2022 Net Sales
21 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 22: Quarterly Net Income to Adjusted EBITDA Reconciliation
22 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 23: Net Income to Pro Forma Adjusted EBITDA Reconciliation
23 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 24: Income Before Taxes to Adjusted Net Income Reconciliation
24 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 25: Reported SG&A to Adjusted SG&A Reconciliation
25 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 26: Leverage Summary
26 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
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