GMS Inc.

Greetings. Welcome to GMS fourth quarter fiscal 2021 earnings conference column webcast. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note this conference is being recorded. At this time, I'll now turn the conference over to Leslie Krakowski with Investor Relations. Leslie, you may now begin.

Thanks, Rob. Good morning, and thank you for joining us for the GMS earnings conference call for the fourth quarter and full year of fiscal 2021. In addition to the press release issued this morning, we've posted presentation slides to accompany this call in the investor section of our website at gms.com. On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address matters that are subject to risks and uncertainties, many of which are beyond our control and may cause actual results to differ from those discussed today. As a reminder, forward-looking statements represent management's current estimates and expectations. The company assumes no obligation to update any forward-looking statements in the future. Listeners are encouraged to review the more detailed discussions related to these forward-looking statements contained in the company's filings with the SEC. including the risk factor section in the company's 10-K and other periodic reports. Today's presentation also includes a discussion of certain non-GAAP measures. The definition and reconciliations of these non-GAAP measures are provided in the press release and presentation slides. Please note that references on this call to the fourth quarter and fiscal year 2021 relate to the quarter and year ended April 30th, 2021. Once we begin the question and answer session of the call, in the interest of time, we kindly request that you limit yourself to one question and one follow-up. Joining me today are John Turner, President and Chief Executive Officer, Scott Deacon, Chief Financial Officer, and Kerry Phelps, Vice President of Investor Relations, who we recently welcomed to the company and is succeeding me upon my retirement this summer. With that, I'll turn the call over to JT. JT?

Thank you, Leslie. Good morning, and thank you for joining us today. I'd like to take a minute to recognize the outstanding contributions that Leslie has made to GMS over the last several years. Leslie has led our IR function with professionalism, class, and dignity, and has advanced our relationships across the spectrum of the investment community. She also has been a key member of our leadership team and has been a consistent source of common strength throughout the years, and in particular, this last pandemic year. She has been instrumental in the development and execution of our strategic goals, and I think we all recognize that our IR capability is light years ahead of where we were when she joined us. Thank you, Leslie. All of GMS wishes you well in retirement. I am excited now to welcome Carrie into our IR role and our team. We are very lucky to have found a capable professional so familiar with our space and our investment community. During this morning's call, I'll start with a review of our operating highlights and then turn it over to Scott, who will cover our financial results. I'll then share some closing thoughts before taking your questions. Starting on slide three, we delivered a strong finish to fiscal 2021 as evidenced by record levels of net sales, net income, and adjusted EBITDA. Our entire team continued to effectively navigate what remains a very dynamic operating landscape. Through a sharp focus on execution, We successfully capitalized on opportunities created by strong residential market tailwinds and robust demand in complimentary products to deliver solid results for the quarter. Even as we continue to face soft commercial market conditions, supply constraints and inflation. Despite these dynamics, our disciplined execution generated a 21% increase in net sales, including 17.1% growth organically. The benefits of continued cost discipline and favorable operating leverage enabled us to improve SG&A and adjusted SG&A as a percentage of sales for the fourth quarter in a row, while ensuring that we maintained the customer focus that continues to differentiate us in the market. As a result, adjusted EBITDA increased 43.5%, and adjusted EBITDA margin rose 160 basis points to 9.8%. We generated positive free cash flow of approximately 80% of adjusted EBITDA and maintained strong financial flexibility, which was further enhanced with a senior notes offering and term loan repricing during the quarter. Our strong balance sheet and liquidity position enabled us to continue our focus drive for growth via both greenfields and acquisitions, which was meaningfully demonstrated with the acquisition of DL Building Materials in Canada and four greenfield openings in the U.S. during our fourth quarter. In addition, after the conclusion of the fourth quarter, we entered into a definitive agreement to purchase Westside Building Material, one of the nation's largest independent specialty interiors product distributors. This highly strategic, well-managed business will greatly enhance our footprint and provide another exceptionally strong brand offering in California, while also affording us entry into the Las Vegas market. Looking at slide four, for the full fiscal year 2021, we also generated record net sales, net income, and adjusted EBITDA. Net sales increased 1.8% year-over-year to $3.3 billion. We realized a 6.5% year-over-year increase in adjusted EBITDA to $319.4 million, and a 50 basis point improvement in adjusted EBITDA margin to 9.7% for the year. Our disciplined adherence to the alignment of our cost structure at the onset of COVID-19 enabled us to realize a 100 basis point improvement in adjusted SG&A as a percentage of sales. We exited the year with substantial liquidity, and our free cash flow generation of roughly 40% of adjusted EBITDA contributed to a net debt leverage at fiscal year-end of 2.5 times, the lowest level since our initial public offering five years ago. I would like to share my appreciation for all our teammates who met and overcame the numerous challenges presented by the COVID-19 pandemic throughout this past year. My congratulations and thanks go out to the entire GMS team who made our fiscal 2021 results possible, remaining engaged, focused, and proactive as we came together in support of our customers, suppliers, communities, and each other. At the same time, I'd like to extend our gratitude to our customers for entrusting their business to us and to our suppliers for their ongoing partnership as they have both faced their own challenges in navigating the unprecedented circumstances throughout this period. We also express our thanks to our shareholders for their ongoing confidence and support. With that, I'll now turn it over to Scott to provide more perspective on our financial results for Q4. Scott?