Slide 1: Investor Overview September 2023
Investor Overview September 2023
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 Fiscal 2022 Net Sales 52 yrs FY 2023 Net Sales $ 5.3 B 300+ Distribution yards GMS at a Glance 7,000+ GMS Team Members NYSE Ticker Symbol GMS & 100+ Tool Sales, Rentals & Service Centers 1. For a reconciliation of Adjusted EBITDA to the most directly comparable GAAP metrics, see Appendix. Informat
Slide 4: Diversified and Balanced End Market Exposure
4 Diversified and Balanced End Market Exposure 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 • New Construction • Repair & R
Slide 5: Providing Value to Contractors and Builders
5 Providing Value to Contractors and Builders A leading North American specialty distributor of construction products GMS provides the products and value - added services to contractors who install wallboard, ceilings, steel framing and other complementary building products • Expertise across loca
Slide 6: Local Go-To-Market Strategy with Scale Benefits
6 Local Go - To - Market Strategy with Scale Benefits GMS distribution locations USA and Canada GMS’s model provides for the intimacy of a local business, exceptional customized service and an entrepreneurial culture while leveraging North American economy of scale • Combines the benefits of a local
Slide 7: GMS – FY2023 Highlights
7 FY23 Net Income $ 333 M FY23 Cash from Operations GMS – FY2023 Highlights FY23 Free Cash Flow* *For a reconciliation of Adjusted EBITDA or Free Cash Flow to the most directly comparable GAAP metrics, see Appendix. Unless indicated otherwise, comparisons are to full year fiscal 2022. FY23 Adj. EBIT
Slide 8: GMS – Q1 FY24 at a Glance
8 Q124 Net Income $ 86.8 M Q124 Cash from Operations GMS – Q1 FY24 at a Glance Q124 Net Income Margin *For a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to the most directly comparable GAAP metrics, see Appendix. Unless indicated otherwise, comparisons are to Q1 2023. Q124 Adj. EBIT
Slide 9: Strategic Growth Priorities – Q1 Fiscal 2024 Update
9 Strategic Growth Priorities – Q1 Fiscal 2024 Update Capitalize on existing fixed investments in locations and equipment where we are underpenetrated or below expected share Grow Complementary Products opportunities outside of core products to diversify and profitably expand our offerings Expand th
Slide 10: Continuing to Diversify and Profitably Expand Offerings
10 20% 19% 16% 45% 29% 12% 19% 40% Continuing to Diversify and Profitably Expand Offerings Successfully Growing Complementary Products Complementary Products 2014 Net Sales: $1.4B NET SALES BREAKDOWN (FISCAL 2014) 2023 Net Sales: $5.3B NET SALES BREAKDOWN (FISCAL 2023) Complementary Products Ceiling
Slide 11: Track Record of Successful Platform Expansion
11 Track Record of Successful Platform Expansion Date Acquisition/Greenfield Locations Strategic Rationale May - 23 ▪ 1 Location – Victoria, BC ▪ Margin - accretive Complementary Products acquisition in desirable Vancouver Island market Apr - 23 ▪ 1 Location – Toronto, ON area ▪ Margin - accretive C
Slide 12: Opportunities for Further Platform Expansion
12 Opportunities for Further Platform Expansion • Opportunity to expand our geographic footprint in under - served and under - penetrated markets through accretive greenfield locations and acquisitions • Current footprint comprises over 300 distribution yard locations covering 47 U.S. States and 6 C
Slide 13: Attractive Capital Structure Supports Strategic Priorities
13 Attractive Capital Structure Supports Strategic Priorities Repurchased approximately 469 thousand shares for $30.5 million during Q1 FY24; $69.6 million of repurchase authorization remaining 1.8x 1.6x 1.6x 1.4x 1.5x 7/31/2022 10/31/2022 1/31/2023 4/30/2023 7/31/2023 $43 $41 $34 $28 $134 $834 FY24
Slide 14: GMS is Well Positioned across Commercial and Residential Markets
14 GMS is Well Positioned across Commercial and Residential Markets with Scale and Balanced Product Mix • Continue to see near - term high levels of multi - family residential activity • While varying by region, we expect single - family demand levels to continue to improve from lows experienced ove
Slide 15: Appendix
15 Appendix
Slide 16: End Market & Product-Level Expectations for Q2 FY2024
16 End Market & Product - Level Expectations for Q2 FY2024 Product Category Q2 FY24 YOY Volume Expectations Q2 FY24 YOY Price/Mix Expectations Wallboard • Multi - family: Up high single - digits • Single - family: Down low double - digits • Commercial: Up low single - digits • Total Wallboard: Down
Slide 17: Consolidated GMS Expectations for Q2 FY24 and Full Year Fiscal 2024
17 Consolidated GMS Expectations for Q2 FY24 and Full Year Fiscal 2024 Metric for Q2 FY24 Q2 FY24 Expectation Net Sales Down low single - digits primarily driven by steel price declines Gross Margin At or near long term average of 32% Adjusted EBITDA 1 $160 million - $165 million Metric for Full Yea
Slide 18: Summary Quarterly Financials
18 Summary Quarterly Financials (In millions) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 (Unaudited) Wallboard Volume (MSF) 1,191 1,232 1,058 1,130 4,611 1,204 Wallboard Price ($ / '000 Sq. Ft.) 438$ 474$ 473$ 481$ 467$ 475$ Wallboard 522$ 585$ 501$ 545$ 2,152$ 571$ Ceilings 167 160 147 155 629 175 Steel framing
Slide 19: Quarterly Cash Flows
19 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) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 Net income $ 89.5 $ 103.2 $ 64.8 $ 75.6 $ 333
Slide 20: Q1 2024 Net Sales
20 Q1 2024 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.
Slide 21: Quarterly Net Income to Adjusted EBITDA Reconciliation
21 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 22: Net Income to Pro Forma Adjusted EBITDA Reconciliation
22 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 23: Income Before Taxes to Adjusted Net Income Reconciliation
23 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 24: Reported SG&A to Adjusted SG&A Reconciliation
24 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 25: Leverage Summary
25 Leverage Summary (1) Net of unamortized discount of $0.4mm, $0.4mm, $0.3mm, $0.3mm and $2.5mm as of July 31, 2022, October 31, 2022, January 31, 2 023 , April 30, 2023 and July 31, 2023 respectively. (2) Net of deferred financing costs of $2.9mm, $2.6mm, $2.4mm, $2.1mm and $4.1mm as of July 31, 2
Slide 26: Net Income to Adjusted EBITDA Outlook Reconciliation
26 Net Income to Adjusted EBITDA Outlook Reconciliation