Slide 1: Q2 FY2025 Earnings Call December 5, 2024
Q2 FY2025 Earnings Call December 5, 2024
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 2025 At a Glance
3 Q2 Fiscal 2025 At a Glance Comparisons are to Q 2 FY2 4 unless noted otherwise • Resilient or improved pricing in all major product categories, including slight sequential improvement in Steel Framing • Volume growth, inclusive of acquisitions in Ceilings, Steel Framing and Complementary Products
Slide 4: Strategic Growth Priorities – Q2 FY25 Update
4 Drive Improved Productivity & Profitability Strategic Growth Priorities – Q2 FY25 Update Capitalize on existing fixed investments in locations & equipment where we are underpenetrated or below expected share Grow Complementary Product opportunities to diversify and profitably expand our product of
Slide 5: Sales Highlights – Q2 FY25
5 Sales Highlights – Q2 FY25 U.S. Per Day Residential Sales Q225 Net Sales $ 1.5 B Per Day Net Sales 2.1% U.S. Per Day Commercial Sales 1.2% 2.7% 3.5% • Hurricanes Helene and Milton negatively impacted sales by an estimated $20 million • Single - family demand was flat YOY; the hurricanes most heavi
Slide 6: Mix Shift and Price/Cost Dynamics Impact Profitability
6 Mix Shift and Price/Cost Dynamics Impact Profitability * For a reconciliation of Adjusted SG&A, Adjusted EBITDA and Adjusted EBITDA Margin to the most directly comparable GAAP metric s, see Appendix. $167.6 $152.2 11.8% 10.3% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% $0 $
Slide 7: Attractive Capital Structure Supports Strategic Priorities
7 Attractive Capital Structure Supports Strategic Priorities • Repurchased 593K shares for $52.3 million during Q225 • Repurchase authorization renewed at $250 million in early December 1.5x 1.5x 1.7x 2.1x 2.3x 10/31/2023 01/31/2024 04/30/2024 7/31/2024 10/31/2024 $27 $52 $47 $491 $32 $841 FY25 FY26
Slide 8: End Market & Product-Level Expectations Q3 FY25
8 End Market & Product - Level Expectations Q3 FY25 YOY Price/Mix Expectations Q3 FY25 YOY Volume Expectations Product Category Total (Incl. acquisitions) Organic Roughly flat •Single - family: Down ~25% •Multi - family: Down high - single digits •Commercial: Up slightly Down low - to - mid single d
Slide 9: Consolidated Expectations Q3 FY25
9 Consolidated Expectations Q3 FY25 Expectation Metric for Q3 FY25 Up low - single digits YOY in total, Down low - to - mid single digits organically Net Sales ~31.5% to 31.7% Gross Margin $38 million - $40 million Net Income $113 million - $118 million Adjusted EBITDA 1 ~9.0% Adjusted EBITDA Margin
Slide 10: Appendix
10 Appendix
Slide 11: Summary Quarterly Financials
11 Summary Quarterly Financials (In millions) 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 (Unaudited) Wallboard Volume (MSF) 1,204 1,231 1,101 1,234 4,769 1,233 1,211 Wallboard Price ($ / '000 Sq. Ft.) 475 $ 476 $ 473 $ 475 $ 475 $ 477 $ 481 Wallboard 571 $ 585 $ 521 $ 586 $ 2,263 $ 588 $ 582 Ceilings 175 17
Slide 12: Quarterly Cash Flows
12 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) 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 Net income $ 86.8 $ 81.0 $ 51.9 $ 56.4 $
Slide 13: Q2 2025 Net Sales
13 Q2 2025 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) FY25 FY24 Reported Organic (1) Organic (1) 1,355.0$ 1,420.9$ Acquisitions 117.0
Slide 14: Quarterly Net Income to Adjusted EBITDA Reconciliation
14 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 15: Net Income to Pro Forma Adjusted EBITDA Reconciliation
15 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 16: Income Before Taxes to Adjusted Net Income Reconciliation
16 Income Before Taxes to Adjusted Net Income Reconciliation Commentary A. Represents all non - cash amortization resulting from business combinations. To make the financial presentation more consistent with other public building products companies, beginning in the first quarter 2025 we are now inc
Slide 17: Reported SG&A to Adjusted SG&A Reconciliation
17 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 18: Leverage Summary
18 Leverage Summary (1) Net of unamortized discount of $2.4mm, $2.3mm, $2.0mm, $1.9mm and $1.8mm as of October 31, 2023, January 31, 2024, April 2024 , J uly 31, 2024, and October 31, 2024, respectively. (2) Net of deferred financing costs of $3.9mm, $3.8mm, $4.4mm, $4.3mm and $4.0mm as of October 3
Slide 19: Net Income to Adjusted EBITDA Outlook Reconciliation
19 Net Income to Adjusted EBITDA Outlook Reconciliation Q3 FY25 Net Income $38 - $40 Interest expense, net 20.7 - 21.6 Provision for income taxes 10.8 - 11.2 Depreciation and amortization expense 35.2 - 36.7 Other Adjustments 8.0 Adjusted EBITDA $113 - $118 $ in millions