GMS Inc.

Greetings and welcome to the GMS third quarter fiscal 2022 earnings conference call and webcast. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kari Feltz, Vice President and Vets of Relations. Thank you, Kari. You may begin.

Thanks, Paul. Good morning, and thank you for joining us for the GMS third quarter of fiscal 2022 earnings conference call. I am joined today by John Turner, President and Chief Executive Officer, and Scott Deacon, Vice President and Chief Financial Officer. In addition to the press release issued this morning, we have posted PowerPoint slides to accompany this call in the investors section of our website at www.gms.com. Turning to slide two, 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 risk and uncertainty, 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 factors section in the company's 10-K and other periodic reports. Today's presentation also includes a discussion of certain non-GAAP measures. The definitions 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 third quarter of fiscal 2022 relate to the quarter ended January 31st, 2022. Finally, 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. With that, I'll turn the call over to John Turner. J.T.?

Thank you, Carrie. Good morning, and thank you all for joining us today. Starting on slide three, the solid momentum we've had throughout this fiscal year has continued into the new calendar year. For our fiscal third quarter, we topped $1.1 billion in net sales and recorded $61 million in net income with $135 million in adjusted EBITDA. In fact, these results reflect a fiscal third quarter record for GMS. Inflationary pricing combined with continued strength in the residential market and our focus on customer service drove our solid performance for the quarter. Some of the highlights include volume growth in each of our four product categories with organic revenue growth of more than 25% for each of our core products, complementary product sales growth of more than 35% in total and 17% organically, growth profit up 51% on sales growth of 53.6%, meaning our team has done a remarkable job responding to the inflationary increases we've seen from suppliers, and adjusted EBITDA margin of 11.7%, up 340 basis points as compared to a year ago. In addition, during the quarter, we completed the AIMS taping tools and Kimco acquisitions, expanding our presence in complementary products as well as the growing Florida market. Turning to slide four, We are optimistic about what lies ahead. While supply chain disruptions continue to cause extended and less predictable project cycle times, solid market dynamics, including strong residential demand and promising indications of improving commercial activity, serve as a positive backdrop as we look to close out our fiscal year at the end of April. We are leveraging our scale to deliver outstanding service and ensure product availability for our customers. And, importantly, the entire GMS team remains fully focused on the continued execution of our strategic priorities. As shown on slide 5, here are a few examples. We have expanded share in our core products with mid-single-digit volume growth in wallboard and double-digit growth in both ceilings and steel framing this quarter. And as I already mentioned, each of our product categories delivered strong organic revenue growth of more than 25% over the third quarter of last year. Additionally, we have grown complementary products to diversify and profitably expand our offerings. Sales of complementary products grew 35.9% this quarter, marking the seventh consecutive quarter of year-over-year growth for this category. And now, at nearly 30% of our total sales mix, it is a more meaningful contributor to our results. Finding opportunities to enhance our product offerings to provide more value to our customers is a top priority and an important growth driver for GMS. Also, we have significantly ramped our platform expansion activities this fiscal year. Through the end of the third quarter, we have invested approximately $350 million to acquire five companies, and we also opened seven new greenfield locations, either to fill white space, or enhance our product assortment and service within an existing GMS territory. These platform expansions are a vital part of our growth strategy, and we expect to continue on this path to supplement our organic growth. Finally, we are leveraging our scale and employing technology and best practices across the business to drive increased productivity and profitability. Arming our team with the tools and data to make better informed decisions to achieve additional operation efficiencies has helped to offset some of the cost inflation we've experienced in the business. Overall, I am very pleased with the results our team delivered this quarter while overcoming continued labor and product shortages, significant COVID-related disruptions, and ongoing inflationary pressure. We remain focused on our strategic priorities and the resulting opportunities to deliver enhanced value to our stakeholders. With that, I'll now turn it over to Scott to provide more perspective on our third quarter financial results. Scott?