Slide 1: Q1 FY 2020 Earnings Conference Call
August 29, 2019 Q1 FY 2020 Earnings Conference Call
Slide 2: Safe Harbor and Basis of Presentation
2 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-lo
Slide 3: Q1 Fiscal 2020 Highlights
3 Q1 Fiscal 2020 Highlights We are off to a strong start to fiscal 2020 with record Q1 results Net sales in Q1 2020 increased 8.9% to $847.2 million; Organic net sales growth of 3.4% Wallboard sales increased 7.5% (3.5% organic) Ceilings sales increased 11.4% (8.3% organic) Steel framing sales incre
Slide 4: Q1 Fiscal 2020 Performance: Net Sales & Mix, Gross Profit & Margin
4 Q1 Fiscal 2020 Performance Net Sales & Mix Organic net sales growth of 3.4% Wallboard: +3.5% organic (Volume ~+4%/Price <-1%) Ceilings: +8.3% organic (Volume ~+3%/Price ~+5%) Steel: -0.8% organic (Volume ~+5%/ Price & Mix ~-6%) Other: +3.1% organic Gross Profit & Margin Net Sales ($ mm) Gross Prof
Slide 5: SG&A and Adjusted SG&A; Net Income and Adjusted EBITDA
5 SG&A and Adjusted SG&A (1) Q1 Fiscal 2020 Performance Reported SG&A was $194.6 million (23.0% of sales) in Q1 2020 and $185.4 million (23.8% of sales) in Q1 2019 Adjusted SG&A was $191.1 million (22.6% of sales) in Q1 2020 and $174.1 million (22.4% of sales) in Q1 2019 Adjusted SG&A as % of sales
Slide 6: Cash Flow, Liquidity and Net Leverage
6 Cash Flow, Liquidity and Net Leverage Cash used in operating activities and free cash flow (1) of $(12.4) million and $(18.3) million, respectively, improved from $(47.8) million and $(51.6) million a year ago. Q1 typically results in a use of free cash flow Substantial liquidity, with $24.1 milli
Slide 7: Moving Forward
7 Moving Forward We have a strong market position through our extensive North American network coupled with local expertise and teams focused on superior service delivery We remain focused on leveraging the foundation of our business and positioning GMS for long-term growth and profitability We are
Slide 8: Leading Specialty Distributor Poised for Continued Growth
8 Leading Specialty Distributor Poised for Continued Growth North American market leader in specialty distribution of interior construction products Significant scale combined with local expertise Differentiated Service Model Drives Market Leadership Multiple Levers to Drive Above-Market Growth – Or
Slide 9: Summary Quarterly Financials
10 Summary Quarterly Financials (In millions, except per share data) 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 (Unaudited) Wallboard Volume (MSF) 985 1,025 912 993 3,915 1,064 Wallboard Price ($ / '000 Sq. Ft.) 323 $ 327 $ 326 $ 324 $ 325 $ 321 $ Wallboard 318 $ 335 $ 297 $ 322 $ 1,272 $ 342 $ Ceilings 116 118
Slide 10: Quarterly Cash Flows
11 Quarterly Cash Flows Free cash flow is a non-GAAP financial measure defined as net cash provided by (used in) operations less capital expenditures. Differences may occur due to rounding. ($ in millions) (Unaudited) 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 Net income $ 8.7 $ 24.9 $ 5.8 $ 16.6 $ 56.0 $ 24.8 N
Slide 11: Q1 Net Sales
12 Q1 Net Sales Organic net sales growth calculation modified to exclude net sales of acquired businesses until first anniversary of acquisition date and impact of foreign currency translation. ($ in millions) (Unaudited) FY19 FY20 Reported Organic (1) Organic (1) 778.1 $ 804.2 $ Acquisitions - 43.8
Slide 12: Prior Period Organic Net Sales Calculation – Prior and Current Method
13 Prior Period Organic Net Sales Calculation – Prior and Current Method Prior Method: Through FY 2019, organic net sales growth calculation excluded net sales of businesses acquired in the current fiscal year, prior fiscal year and three months prior to the start of the prior fiscal year. Current M
Slide 13: Net Income to Pro Forma Adjusted EBITDA Reconciliation
15 Net Income to Pro Forma Adjusted EBITDA Reconciliation Commentary Represents non-cash expense related to stock appreciation rights agreements Represents non-cash compensation expense related to changes in the values of noncontrolling interests Represents non-cash equity-based compensation expense
Slide 14: Reconciliation of Income Before Taxes to Adjusted Net Income
16 Reconciliation of Income Before Taxes to 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. Normalized cash tax ra
Slide 15: Reported SG&A to Adjusted SG&A Reconciliation
17 Reported SG&A to Adjusted SG&A Reconciliation Commentary Represents non-cash expense related to stock appreciation rights agreements Represents non-cash compensation expense related to changes in the values of noncontrolling interests Represents non-cash equity-based compensation expense related
Slide 16: Gypsum Management & Supply, Inc.
GYPSUM MANAGEMENT & SUPPLY, INC. www.gms.com DRYWALL | STEELSTUDS | JOINTTREATMENT® FINISHES | ACOUSTICALCEILINGS INSULATION | EIFS&EXTERIORFINISHES | TOOLS | SAFETY | ACCESSORIES