Q3 2022 Earnings Call March 3, 2022 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. You can generally identify forward-looking statements by the Company's use of forward-looking terminology such as "anticipate," "believe," "confident," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "seek," or "s ...

Cautionary Note Regarding Forward-Looking Statements [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section outlines the forward-looking statements within the report and warns that actual results may differ materially due to various known and unknown risks and uncertainties, including the impact of the COVID-19 pandemic, economic conditions, market competition, and supply chain disruptions - The company identifies numerous risk factors that could materially affect future performance, including but not limited to: - The negative impact of the COVID-19 pandemic - Dependency on commercial and residential construction and repair/remodeling (R&R) markets - Competition in a highly fragmented industry - Fluctuations in product prices and the ability to pass increases to customers - Product shortages and supply chain disruptions - Ability to successfully implement strategic initiatives like acquisitions and greenfield expansions - Cybersecurity breaches and IT system disruptions - Risks related to Canadian operations, including currency fluctuations - Restrictions and limitations imposed by debt agreements[11](index=11&type=chunk)[12](index=12&type=chunk)[15](index=15&type=chunk) PART I: Financial Information [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the period ended October 31, 2021, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows, along with detailed accompanying notes [Condensed Consolidated Balance Sheets (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Oct 31, 2021 | Apr 30, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$2,824,983** | **$2,483,898** | | Total Current Assets | $1,365,093 | $1,102,252 | | Goodwill | $589,561 | $576,330 | | **Total Liabilities** | **$1,873,632** | **$1,661,436** | | Total Current Liabilities | $636,575 | $562,501 | | Long-term debt, less current portion | $1,062,291 | $932,409 | | **Total Stockholders' Equity** | **$951,351** | **$822,462** | [Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Unaudited)) Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Oct 31, 2021 | Three Months Ended Oct 31, 2020 | Six Months Ended Oct 31, 2021 | Six Months Ended Oct 31, 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $1,150,551 | $812,856 | $2,192,627 | $1,615,429 | | Gross Profit | $371,870 | $265,071 | $707,703 | $525,529 | | Operating Income | $111,936 | $49,474 | $205,974 | $99,723 | | **Net Income** | **$74,361** | **$28,469** | **$135,563** | **$55,688** | | Diluted EPS | $1.69 | $0.66 | $3.09 | $1.29 | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Cash Flow Summary for the Six Months Ended October 31 (in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(77,095) | $24,048 | | Net cash used in investing activities | $(140,629) | $(11,176) | | Net cash provided by (used in) financing activities | $110,103 | $(106,895) | | **Decrease in cash and cash equivalents** | **$(107,702)** | **$(92,741)** | | Cash and cash equivalents, end of period | $59,310 | $118,168 | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The notes provide detailed information supporting the financial statements, covering accounting policies, business combinations, debt, leases, income taxes, equity-based compensation, and segment reporting, including the acquisition of Westside Building Material for **$139.6 million** and subsequent acquisitions of AMES and Kimco - On July 1, 2021, the Company acquired Westside Building Material for preliminary consideration of **$139.6 million**, expanding its geographical coverage in California and Nevada[46](index=46&type=chunk) - Goodwill increased from **$576.3 million** at April 30, 2021, to **$589.6 million** at October 31, 2021, primarily due to acquisitions[55](index=55&type=chunk) - Subsequent to the quarter end, on December 1, 2021, the Company acquired AMES Taping Tools Holding LLC for a preliminary purchase price of **$212.5 million**, funded by borrowings under the ABL Facility[96](index=96&type=chunk) - On November 30, 2021, the ABL Facility was amended to increase commitments by **$100.0 million** to **$545.0 million** and to change the interest rate provisions from LIBOR to SOFR[98](index=98&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for the three and six months ended October 31, 2021, highlighting significant growth in net sales and net income driven by inflationary pricing, strong residential end markets, complementary products, and recent acquisitions, with net sales for the six-month period increasing **35.7%** to **$2.2 billion** and net income rising **143.4%** to **$135.6 million** - The company's business strategy focuses on organic growth by expanding market share in core products (wallboard, ceilings, steel framing), growing complementary product lines, and pursuing greenfield branch openings and strategic acquisitions[102](index=102&type=chunk) - During the six months ended October 31, 2021, the company opened six new greenfield locations in North Carolina, Ontario, Colorado, Mississippi, Delaware, and Tennessee[109](index=109&type=chunk) Financial Highlights for the Six Months Ended October 31, 2021 | Metric | Amount | % Change vs. Prior Year | | :--- | :--- | :--- | | Net Sales | $2,192.6 million | +35.7% | | Net Income | $135.6 million | +143.4% | | Adjusted EBITDA | $277.6 million | +67.7% | [Results of Operations](index=28&type=section&id=Results%20of%20Operations) The company experienced significant growth in the three and six months ended October 31, 2021, with six-month net sales growing **35.7%** to **$2.2 billion** driven by price inflation and strong demand, particularly in steel framing (up **111.1%**), while gross profit increased **34.7%** to **$707.7 million** and operating income more than doubled to **$206.0 million** Net Sales by Product - Six Months Ended October 31 (in thousands) | Product | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | Wallboard | $804,657 | $658,600 | +22.2% | | Ceilings | $278,937 | $226,769 | +23.0% | | Steel framing | $468,276 | $221,825 | +111.1% | | Complementary products | $640,757 | $508,235 | +26.1% | | **Total net sales** | **$2,192,627** | **$1,615,429** | **+35.7%** | - For the six months ended October 31, 2021, organic (base business) net sales grew by **27.2%** year-over-year, driven by inflationary pricing and healthy residential end markets[126](index=126&type=chunk)[127](index=127&type=chunk) - Selling, general and administrative (SG&A) expenses as a percentage of net sales decreased to **20.3%** for the six-month period, down from **23.0%** in the prior year, primarily due to the impact of inflationary market pricing on sales[129](index=129&type=chunk)[130](index=130&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity sources are cash flow from operations, cash on hand, and its ABL Facility, with available borrowing capacity of **$278.0 million** as of October 31, 2021, and subsequent upsizing to **$545.0 million**, while cash used in operating activities was **$77.1 million** for the six-month period, a significant shift from **$24.0 million** provided in the prior year - Cash used in operating activities for the six months ended Oct 31, 2021 was **$77.1 million**, compared to cash provided of **$24.0 million** in the prior year period, primarily due to a decrease in cash from net working capital, driven by an increase in inventory and accounts receivable[139](index=139&type=chunk)[140](index=140&type=chunk) - Cash used in investing activities increased to **$140.6 million** from **$11.2 million** in the prior year, mainly due to a **$124.9 million** increase in cash used for acquisitions[139](index=139&type=chunk)[141](index=141&type=chunk) - The company repurchased approximately **280,000 shares** for **$13.1 million** during the six months ended October 31, 2021, with **$41.2 million** remaining under its repurchase authorization[137](index=137&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes to its exposure to market risks from those reported in its Annual Report on Form 10-K for the fiscal year ended April 30, 2021 - There have been no material changes to the company's market risk exposure since the fiscal year ended April 30, 2021[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of October 31, 2021, and the company is integrating the newly acquired Westside Building Material into its internal control system, expecting to exclude it from its fiscal 2022 assessment - The Chief Executive Officer and Chief Financial Officer concluded that as of October 31, 2021, the company's disclosure controls and procedures were effective[159](index=159&type=chunk) - The company is integrating Westside Building Material, acquired on July 1, 2021, into its internal control over financial reporting and plans to exclude it from the fiscal 2022 assessment[160](index=160&type=chunk) PART II: Other Information [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits in the normal course of business but is not currently a party to any legal proceedings expected to have a material adverse effect, specifically noting its ongoing defense against asbestos-related personal injury lawsuits, of which **981** out of **1,026** filed since 2002 have been dismissed without payment - The company is not currently party to any legal proceedings expected to have a material adverse effect on its business or financial condition[163](index=163&type=chunk) - Since 2002, approximately **1,026** asbestos-related personal injury lawsuits have been filed against the company; as of October 31, 2021, **981** have been dismissed without payment, **35** are pending, and **10** have been settled without material impact[163](index=163&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes in the risks facing the company as described in its Annual Report on Form 10-K for the fiscal year ended April 30, 2021 - There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended April 30, 2021[164](index=164&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company provides details on its common stock repurchase program, noting that during the three months ended October 31, 2021, a total of **195,415** shares were repurchased, with approximately **$41.2 million** remaining available for future repurchases Share Repurchases for the Three Months Ended October 31, 2021 | Period | Total Shares Repurchased | Average Price Paid Per Share | Remaining Authorization (in thousands) | | :--- | :--- | :--- | :--- | | August 2021 | 58,734 | $49.34 | $47,567 | | September 2021 | 64,058 | $47.39 | $44,531 | | October 2021 | 72,623 | $45.92 | $41,196 | | **Total** | **195,415** | **-** | **$41,196** | [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) This section reports a key subsequent event: on November 30, 2021, the company amended its ABL Facility to increase commitments by **$100.0 million**, bringing the total to **$545.0 million**, and to transition the interest rate benchmark from LIBOR to SOFR - On November 30, 2021, the Company's ABL Facility was amended to increase commitments by **$100.0 million** to **$545.0 million** and to change the LIBOR interest rate provisions to SOFR[168](index=168&type=chunk)

Financial Data and Key Metrics Changes - The company reported record net sales of $1.15 billion, net income of $74.4 million, and adjusted EBITDA of $149.5 million for the second quarter of fiscal 2022, reflecting strong performance driven by an inflationary pricing environment and robust residential market demand [8][9][29] - Gross margin improved to 32.3%, slightly above expectations, while adjusted EBITDA margin increased by 208 basis points to 13% compared to 10.2% a year ago [9][29] Business Line Data and Key Metrics Changes - All core product line sales increased by at least 25%, with steel framing sales surging by over 144% due to significant price increases and volume growth [9][24] - Sales of complementary products grew by 24.8%, marking the sixth consecutive quarter of year-over-year growth, with a 12.6% organic increase primarily driven by pricing [12][25] Market Data and Key Metrics Changes - Both residential and commercial sales in the U.S. rose over 35% organically year-over-year, largely due to price inflation [19] - Wallboard sales reached $414.5 million, up 25.4%, driven by a 22.5% increase in price and mix, alongside a 2.9% increase in volume [20] Company Strategy and Development Direction - The company is focused on expanding market share in core products and diversifying its offerings through acquisitions, such as the recent purchase of AMES Taping Tools, which is expected to enhance profitability [12][15] - Strategic priorities include leveraging scale and technology to improve productivity and customer service, with ongoing efforts to automate transaction processes [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the healthy residential market and favorable fundamentals supporting growth, despite some supply chain bottlenecks [36][38] - The company anticipates continued year-over-year price inflation and expects organic sales growth of approximately 40% for the third quarter, with gross margins consistent with the prior year [41][42] Other Important Information - The company experienced cash flow challenges due to inflation and extended lead times, resulting in a use of cash from operating activities of $2 million [30] - As of October 31, 2021, the company had $59.3 million in cash and $302.2 million in available liquidity, with net debt leverage improving to 2.4 times [33][34] Q&A Session Summary Question: Guidance on total revenue growth and organic revenue growth for the third quarter - Management expects volume to improve slightly, with a rebound in commercial sales anticipated, alongside continued inflation in wallboard and ceiling prices [45][46] Question: Inventory levels and availability to meet customer orders - The company increased inventory to meet customer demand, with lead times extending significantly, necessitating higher inventory levels [47][51] Question: Contribution margin expectations for the third quarter - Management indicated that while volume increases may lead to additional delivery costs, they expect margins to remain stable [58][60] Question: Acquisition landscape and challenges - The company maintains a strong acquisition pipeline but emphasizes the need for careful evaluation of financial performance in the current environment [68] Question: Wallboard pricing dynamics and pushback from customers - Management noted significant pushback from large residential customers, with ongoing negotiations regarding pricing amidst inflationary pressures [96][98]

Q2 FY 2022 Earnings Conference Call December 2, 2021 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. You can generally identify forward-looking statements by the Company's use of forward-looking terminology such as "anticipate," "believe," "confident," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predic ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________. COMMISSION FILE NUMBER: 001-37784 ______________________________________________________________ GMS INC. (Exact name of registrant as ...

Q1 FY 2022 Earnings Conference Call September 2, 2021 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. You can generally identify forward-looking statements by the Company's use of forward-looking terminology such as "anticipate," "believe," "confident," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predi ...

GMS Inc. (NYSE:GMS) Q1 2022 Earnings Conference Call September 2, 2021 9:00 AM ET CorporateParticipants Carey Phelps - Vice President of Investor Relations John Turner - President, Chief Executive Officer Scott Deakin - Vice President, Chief Financial Officer ConferenceCall Participants Trey Grooms - Stephens David Manthey - Baird Mike Dahl - RBC Capital Markets Sam Darkatsh - Raymond James Keith Hughes - Truist Steven Ramsey - Thompson Research Group Kevin Hocevar - Northcoast Research Ashley Kim - Barclay ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Fiscal Year Ended April 30, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-37784 ______________________________________________________________ GMS INC. (Exact name of registrant as specified in its charter) _____________________________ ...

GMS Inc. (NYSE:GMS) Q4 2021 Earnings Conference Call June 24, 2021 8:30 AM ET Company Participants John Turner - President, Chief Executive Officer Scott Deakin - Vice President, Chief Financial Officer Leslie Kratcoski - Vice President, Investor Relations Conference Call Participants Keith Hughes - Truist Securities Chris Kalata - RBC Capital Markets Matthew Bouley - Barclays Kevin Hocevar - Northcoast Research Trey Grooms - Stephens David Manthey - Baird Operator Greetings. Welcome to GMS fourth quarter ...

Financial Performance - Q4 Fiscal 2021 - Net sales increased by 20.9% due to strong residential end markets and favorable pricing[3, 12] - Organic net sales increased by 17.1%[3, 12] - Net income was $33.7 million, or $0.77 per diluted share[3] - Adjusted net income was $46.9 million, or $1.07 per diluted share[3] - Adjusted EBITDA increased by 43.5% to $91.2 million[4, 17] - Adjusted EBITDA margin improved by 160 basis points to 9.8%[4, 17] - Gross profit increased 16.8%[12] Financial Performance - Full Year Fiscal 2021 - Net sales increased by 1.8% to $3.3 billion[8] - Organic net sales increased by 0.4%[8] - Net income was $105.6 million, or $2.44 per diluted share[8] - Adjusted net income was $153.3 million, or $3.54 per diluted share[8] - Adjusted EBITDA increased by 6.5% to $319.4 million[8] - Adjusted EBITDA margin improved by 50 basis points to 9.7%[8] Cash Flow and Liquidity - Free cash flow was approximately 80% of Adjusted EBITDA during the quarter[5] - The company had $167.0 million in cash and $453.8 million available under credit facilities[10, 19] - Net debt leverage was 2.5x, the lowest level since the company's IPO[10, 19] Strategic Initiatives - The company acquired D.L Building Materials in Canada[7] - Four greenfield locations were added in the U.S[7] - A definitive agreement was entered into to acquire Westside Building Material[7]