Slide 1: Q2 2023 Earnings Call
Q2 2023 Earnings Call December 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: Q2 Fiscal 2023 Highlights
3 Q2 Fiscal 2023 Highlights Record Levels of Net Sales, Net Income and Adjusted EBITDA 1 ▪ Quarterly net sales of $1.4 billion, up 24.4% from Q2 FY22; Organic sales growth of 22.2% ‒ Sales growth driven by product inflation as well as year - over - year volume growth in Wallboard, Ceilings and Compl
Slide 4: Strategic Growth Priorities – Q2 Fiscal 2023 Update
4 Strategic Growth Priorities – Q2 Fiscal 2023 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 offerings Expand the
Slide 5: Q2 Fiscal 2023 Performance – Net Sales of $1.4 Billion
5 Q2 Fiscal 2023 Performance – Net Sales of $1.4 Billion $371.9 $464.5 $200 $250 $300 $350 $400 $450 Fiscal Q2 2022 Fiscal Q2 2023 Gross Profit Net Sales & Mix Gross Profit ▪ Gross Profit increased 24.9% ▪ Gross margin was 32.5% ‒ 20 basis point year - over - year increase with strong margins in Com
Slide 6: Q2 Fiscal 2023 – Improved Profitability
6 $149.5 $195.5 13.0% 13.7% Fiscal Q2 2022 Fiscal Q2 2023 Adj. EBITDA Adj. EBITDA Margin ($ mm) $223.2 $270.9 19.4% 18.9% 18.0% 18.5% 19.0% 19.5% 20.0% 20.5% 21.0% $0 $50 $100 $150 $200 $250 $300 Fiscal Q2 2022 Fiscal Q2 2023 Adj. SG&A Adj. SG&A % ($ mm) Q2 Fiscal 2023 – Improved Profitability 1 For
Slide 7: Attractive Capital Structure Supports Strategic Priorities
7 Attractive Capital Structure Supports Strategic Priorities • Significant improvement in cash flow as the supply chain improved • Generated Cash from Operating Activities of $107.3 million, compared to a use of $2.0 million in Q2 FY22 • Generated Free Cash Flow 1 of $96.5 million, compared to a use
Slide 8: GMS is Well Positioned across Commercial and Residential Markets
8 GMS is Well Positioned across Commercial and Residential Markets with Scale and Balanced Product Mix • Continue to see high levels of multi - family residential activity • In the medium term - some backlog remains in certain markets within single - family residential, but a decline in demand in th
Slide 9: Expectations for Q3 Fiscal 2023
9 Expectations 1. For a reconciliation of Adjusted SG&A, Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow to the mo st directly comparable GAAP metrics, see Appendix. Expectations for Q3 Fiscal 2023 Anticipate continued strength in multi - family; Timing of single - fa
Slide 10: GMS is Well-Positioned Now and for the Long-Term
10 GMS is Well - Positioned Now and for the Long - Term Industry leader with local expertise and broad North American scale Superior safety track record and logistics execution Breadth of product offerings, with growing Complementary Product opportunities Strong balance sheet , substantial liquidity
Slide 11: Appendix
11 Appendix
Slide 12: Summary Quarterly Financials
12 Summary Quarterly Financials (In millions) 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 (Unaudited) Wallboard Volume (MSF) 1,095 1,104 1,054 1,181 4,433 1,191 1,232 Wallboard Price ($ / '000 Sq. Ft.) 356$ 376$ 394$ 416$ 386$ 438$ 474$ Wallboard 390$ 415$ 415$ 491$ 1,711$ 522$ 585$ Ceilings 138 141 140 149
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) 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 Net income $ 61.2 $ 74.4 $ 61.4 $ 76.5 $
Slide 14: Q2 2023 Net Sales
14 Q2 2023 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) FY23 FY22 Reported Organic (1) Organic (1) 1,405.8$ 1,150.6$ Acquisitions 35.7
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 $ 0.5 mm, $0.5mm, $0.5mm, $0.5mm and $0.4mm as of October 31, 2021, January 31, 2022, April 30, 2022 , July 31, 2022 and October 31, 2022 respectively. (2) Net of deferred financing costs of $3.6 mm, $3.4mm, $3.1mm, $2.8mm and $2.6mm as of Octob