Slide 1: Safe Harbor and Basis of Presentation
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. All of these forward-looking statements are based on estimates and assumptions made by our
Slide 2: Q3 2017 Highlights
Q3 2017 Highlights Above-Market Growth Attractive Capital Structure Accretive Acquisitions Continued Margin Improvement Net sales increased 33.8% to $562.5 million Base business net sales up 15.5% Wallboard unit volume grew 30.5% to 842 million square feet Net income significantly increased to $8.2
Slide 3: Multiple Levers to Drive Growth
Multiple Levers to Drive Growth GMS Wallboard Market Share Strong track record of executing profitable growth strategy (5) FY 2015, FY 2016 and FY17 Q3 LTM Pro Forma Adj. EBITDA includes approximately $8.1 million, $12.1 million and $14.7 million, respectively, from entities acquired in FY 2015, FY
Slide 4: Attractive Acquirer with Significant Consolidation Opportunity
Attractive Acquirer with Significant Consolidation Opportunity Acquisition Strategy FY 2017 GMS Acquisitions Acquisition Rationale Industry Structure: Large, highly fragmented industry comprised of ~400 competitors Similar business operations enable efficient integration Limited number of scaled pla
Slide 5: Profitable Sales Expansion in Fiscal Q3 2017
Profitable Sales Expansion in Fiscal Q3 2017 Gross Profit ($ mm) FY Q3 2017 Gross Profit & Margin Tailored investments in Yard Support Center, IT and branch talent to support growth are paying off (5) Adj. EBITDA ($ mm) FY Q3 2017 Adjusted EBITDA (2) When calculating our “base business” results, we
Slide 6: One-Stop-Shop Outsized Impact on Other Products Sales
One-Stop-Shop Outsized Impact on Other Products Sales “One-Stop-Shop” for the Interior Contractor Interior Contractor Wallboard Steel Framing Joint Compound Tools Safety Products Insulation GMS sells a complementary and complete product offering to the interior contractor who installs wallboard, cei
Slide 7: Strong, Improving Gross Margin Profile
Strong, Improving Gross Margin Profile Gross Margin Profile Net Sales vs Gross Margin(1) Wallboard Price vs Gross Margin (1) Enhanced profitability through market leadership, purchasing opportunities and price optimization Gross margin represents the total gross margin of the entire Company. Gross m
Slide 8: Attractive Capital Structure
Attractive Capital Structure Leverage of 3.1x Net Debt / LTM Adj. EBITDA as of 1/31/17, continued improvement in credit metrics from 6.0x Net Debt / LTM Adj. EBITDA as of 4/30/14 and 4.3x as of 4/30/16 Substantial liquidity, with $10.6 million of cash on hand and an additional $214 million undrawn o
Slide 9: Leading Specialty Distributor Poised for Continued Growth
Leading Specialty Distributor Poised for Continued Growth Market Leader with Significant Scale Advantages – #1 North American Distributor of Wallboard and Ceilings Differentiated Service Model Drives Market Leadership Multiple Levers to Drive Above-Market Growth – Market Share, Greenfields, M&A, Ope
Slide 10: Appendix
5 :4 2 2 / 4 1 0 /2 /6 2 / t n e m Docu d ve Unsa Appendix
Slide 11: Summary Quarterly Financials
Summary Quarterly Financials Note: Fiscal year end April 30. 12 (In millions, except per share data) 1Q16 2Q16 3Q16 4Q16 FY16 1Q17 2Q17 3Q17 (Unaudited) Wallboard Volume (MSF) 681 700 646 816 2,843 818 891 842 Wallboard Price ($ / '000 Sq. Ft.) 310 $ 306 $ 305 $ 305 $ 306 $ 307 $ 303 $ 303 $ Wallboa
Slide 12: Quarterly Net Sales
Quarterly Net Sales Note: Fiscal year end April 30. When calculating our “base business” results, we exclude any branches that were acquired in the current fiscal year, prior fiscal year and three months prior to the start of the prior fiscal year. FY16 quarterly sales from acquisitions have been up
Slide 13: Quarterly Net Income to Adjusted EBITDA
Quarterly Net Income to Adjusted EBITDA Adjusted EBITDA Reconciliation Commentary Represents non-cash compensation expenses related to stock appreciation rights agreements Represents non-cash compensation expense related to changes in the fair values of noncontrolling interests Represents non-cash e
Slide 14: LTM Net Income to Pro Forma Adjusted EBITDA
LTM Net Income to Pro Forma Adjusted EBITDA Pro Forma Adjusted EBITDA Reconciliation Commentary Represents non-cash compensation expenses related to stock appreciation rights agreements Represents non-cash compensation expense related to changes in the fair values of noncontrolling interests Represe
Slide 15: Quarterly Cash Flows
Quarterly Cash Flows 16 ($ in millions) (Unaudited) 1Q16 2Q16 3Q16 4Q16 FY16 1Q17 2Q17 3Q17 Net income (loss) $ 3.0 $ 2.8 $ (2.2) $ 8.9 $ 12.6 $ 9.2 $ 17.2 $ 8.2 Non-cash changes (2.6) 17.2 12.2 35.4 62.2 (5.0) 11.5 23.8 Changes in primary working capital components: Trade accounts and notes receiva
Slide 16: SG&A Adjustments Table
SG&A Adjustments Table GAAP SG&A Reconciliation Commentary Represents non-cash compensation expenses related to stock appreciation rights agreements Represents non-cash compensation expense related to changes in the fair values of noncontrolling interests Represents non-cash equity-based compensatio
Slide 17: SG&A Adjustments Table
SG&A Adjustments Table GAAP SG&A Recon (Unaudited) ‘A. Represents non-cash compensation ceeme x _ a7 _ tponces toe! sack sprain ‘SGBA- Reported $102 $144 $122 $1332 | $4700] $1351 $198 $147.3 1s Soxeoments, B__ Represents non-cash compensation ster easton Sockapprssioighsespene(oereh) () @) fo? @)—
Slide 18: ie a: oe
ie a: oe i 7