Slide 1: Q2 2024 Earnings Call
Q2 2024 Earnings Call December 7, 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 – Q2 FY24 at a Glance
3 Q224 Net Income $ 81.0 M Q224 Cash from Operations GMS – Q2 FY24 at a Glance Q224 Net Income Margin *For a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to the most directly comparable GAAP metrics, see Appendi x. Unless indicated otherwise, comparisons are to Q2 2023. Q224 Adj. EBI
Slide 4: Strategic Growth Priorities
4 Strategic Growth Priorities 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 offerings Expand the platform through accretive acquisition and
Slide 5: Q2 Fiscal 2024 Sales Highlights
5 Q2 Fiscal 2024 Sales Highlights Solid demand in commercial and multi - family construction drove volume increases in Ceilings, Steel Framing and Complementary Products, offset by price deflation in Steel Framing U.S. Residential Sales Q224 Net Sales $ 1.4 B Per Day Net Sales 2.1% U.S. Commercial S
Slide 6: Gross Profit, SG&A and Adjusted EBITDA Results
6 $464.5 $458.6 32.5% 32.3% 31.1% 31.6% 32.1% 32.6% $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Fiscal Q2 2023 Fiscal Q2 2024 Gross Profit Gross Margin ($ mm) Deflationary Steel Pricing Impacts Profitability Cost Containment and Efficiency Gains Drive Favorable SG&A Results 1 For a reconcili
Slide 7: Attractive Capital Structure Supports Strategic Priorities
7 Attractive Capital Structure Supports Strategic Priorities Expanded repurchase authorization up to $250 million approved in October; $241.3 million of repurchase authorization remaining at 10/31/23 1.6x 1.6x 1.4x 1.5x 1.5x 10/31/2022 1/31/2023 4/30/2023 7/31/2023 10/31/2023 $25 $45 $38 $32 $106 $8
Slide 8: End Market & Product-Level Expectations for Q3 FY2024
8 End Market & Product - Level Expectations for Q3 FY2024 Product Category Q3 FY24 YOY Volume Expectations Q3 FY24 YOY Price/Mix Expectations Wallboard • Multi - family: Up mid - teens • Single - family: Down low single - digits • Commercial: Up mid single - digits • Total Wallboard: Up mid single -
Slide 9: Consolidated GMS Expectations for Q3 FY24 and Full Year Fiscal 2024
9 Consolidated GMS Expectations for Q3 FY24 and Full Year Fiscal 2024 Metric for Q3 FY24 Q3 FY24 Expectation Net Sales Up low single - digits Gross Margin Similar to Q224’s Gross Margin of 32.3% Adjusted EBITDA 1 $123 million - $127 million Metric for Full Year FY24 Full Year FY24 Expectation Intere
Slide 10: Appendix
10 Appendix
Slide 11: Summary Quarterly Financials
11 Summary Quarterly Financials (In millions) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 (Unaudited) Wallboard Volume (MSF) 1,191 1,232 1,058 1,130 4,611 1,204 1,231 Wallboard Price ($ / '000 Sq. Ft.) 438$ 474$ 473$ 481$ 467$ 475$ 476$ Wallboard 522$ 585$ 501$ 545$ 2,152$ 571$ 585$ Ceilings 167 160 147 155
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) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 Net income $ 89.5 $ 103.2 $ 64.8 $ 75.6
Slide 13: Q2 2024 Net Sales
13 Q2 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. ($ in millions) (Unaudited) FY24 FY23 Reported Organic (1) Organic (1) 1,386.5$ 1,431.0$ Acquisitions 38.3
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. 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 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 $0.4mm, $0.3mm, $0.3mm, $2.5mm and $2.4mm as of October 31, 2022, January 31, 2023, April 30, 202 3, July 31, 2023 and October 31, 2023 respectively. (2) Net of deferred financing costs of $2.6 mm, $2.4mm, $2.1mm, $4.1mm and $3.9mm as of October
Slide 19: Net Income to Adjusted EBITDA Outlook Reconciliation
19 Net Income to Adjusted EBITDA Outlook Reconciliation ($ in millions) Q3 FY24 Net Income $48 - $50 Interest expense, net 17.1 - 17.6 Provision for income taxes 16.5 - 17.0 Depreciation and amortization expense 29.7 - 30.6 Other Adjustments 12.0 Adjusted EBITDA $123 - $127