GMS - Earnings call transcript Q1 2019

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Operator

Greetings, and welcome to the GMS First Quarter Fiscal 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Lynn Ross, Chief Accounting Officer and Corporate Controller for GMS. ahead. go Please

Lynn Ross

in Mike and earnings morning fiscal for CFO. www.gms.com. us presentation today issued of joining posted to the to ended CEO; our Yes. Investors section accompany call thank for GMS' by joined I'm conference this XX, of Web and this And President press the we for and July Good XXXX. at morning, you Doug addition Goforth, Callahan, the site first have XXXX, slides release call quarter in

slide two; answers the of to as contain on Turning Act prepared today's in remarks to forward-looking call, and Private defined may Reform management's Securities Litigation your questions XXXX. statements

subject discussed Forward-looking actual may uncertainties, risks cause and which today. to control, statements that many from differ and address results are those to are matters of beyond our

more quarter Callahan. With management's Listeners XXXX, measures July measures. XX, that, fiscal the and As includes ended no assumes in The to reports. The April reminder, first over discussion fiscal and of statements Risk certain a encouraged XXXX and in SEC, respectively. non-GAAP in quarter reconciliations are these forward-looking of in relate the the the company's XX, other the slides. note, and the I'll are Factor estimates to definitions this filings call year to that to on Mike also XXXX, call XX-K discussions the and these Also provided to presentation Today's release expectations. with forward-looking press and Mike? ended turn periodic including a the the references company's company current the the presentation forward-looking statements update detailed statements future. related contained any section to obligation represent review

Mike Callahan

Lynn. Thank Good joining today. thank us everyone, for morning you and you much, very

today's quarter call of our begin review detail. results with cover first in financial highlights, our and Doug then a will We more operating will

quarter record questions. solid quarter first Even report face to our of to we contribution organic of adjusted highlighted year-over-year inflationary across industry growth growth million, of we that of The for changes second categories. revenue organic of to compared increase hard delivered each open delivered the by We wallboard product growth though these all year. We our since achieving of to line first sales our year-over-year will our an last up pleased the represents of our accounting, quarter year. in continues profitability a to which lease X.X% your colleagues work then organic by am in EBITDA results. contributed pressures, revenue, wallboard increase and over XX% $XX.X last Titan, GMS delivered to I

North very pleased of our our advances in also building are We products of premier America. the distribution which acquisition platform the of being goal performance recent with Titan,

area, working in presence in many the to on supply while additional the area cost California, metropolitan California, Los are acquisition Southern pleased Charles We expands nationwide. our cross-selling Angeles to of G. leverage And continuing in in our the are also closely business. which which savings enhanced second Hardy, announce, partners key of scale, X, and August is Paramount, largest metropolitan look while opportunities for operational our the with we combined through nature, smaller and to particular,

organization size pace opened Greenfields to quarter, annual with this in progress made year. also three And our on keeps future right we to generate have cost five expectations Frederick, locations reduce which in We to our new Maryland opening approximately two significant and plan Pennsylvania; per of Philadelphia, $XX and savings. Greenfield lastly, our on million us

QX. reduction expect results, to second these savings run in with savings of significant flow see rollout the to quarter rate of full through coming timing the begin we cost Given initiatives, our

to like Now healthy across of our are as that remain that before I conditions point would end seeing demand in we our markets as provide Doug, I categories, believe industry. view turn the the the call We what product over we serve. on well to the

face to our executing cost meaningful and The realize have been pressures, as to market to expect inflationary we increases competitive in fiscal continue begun to industry of backdrop stable price inflationary throughout the we While able reduction have, to these of the see persist offset Furthermore, continue we XXXX. wallboard they but dynamics always are demand, headwinds. conditions we signs initiatives to remain have with healthy stabilization.

growth we believe relatively of to sequentially flat we the share quarter improved market our pleased fiscal during volume organic fourth product steel organic all 'XX, quarter; XX%, our increasing ceilings, Titan, and that X% products respectively. remained revenue revenue Excluding framing, other and in this versus wallboard again see were with our our the wallboard X%, of categories other however, once strong by across quarter, and

acquisitions. good our feel growing and Looking bolt-on very to business and our about ahead, organically we through remain revenue both committed profitably

increasing also on and balance And a adjusted of review our EBITDA, generating structure, for our to Doug? turn that, initiatives our improving flow our with focus will our I call detailed cash on the We Doug to de-lever to execute will cost financial continue free sheet. performance. to and over

Doug Goforth

everyone Thank you, Mike. little earlier us today. We appreciate a joining

organic growth increase net million highlighted base X.X% initiatives. pleased our growth, were year-over-year. to and consisted top decline fiscal good on a by volume. line, a price, margin-enhancement the Let's during we on million, to net This partially $XXX in XX.X% quarter, first top-line deliver adjusted Starting Wallboard slide increased the to compared the business quarter offset by an strong a including performance, slight last to organic increased solid sales the strong same quarter and grew sales $XXX.X turn X% period by basis. to four. in sales EBITDA in XX.X% on of progress year, We first X.X%

in $XXX by driven wallboard improvement. business, volumes mainly XX.X% Our and framing to the indicator stronger by year-over-year performance. year-over-year includes base in in higher sales pricing Steel an the XX.X% driven steel framing million. volumes increased view We by typically during quarter strength by XX.X% X.X% and of million, ceiling prices. increase business, a the increase driven the $XXX future during continued an This as to quarter increased base by ceiling

are and over million, an XX% the this of gross over to X% we impacted Adjusted XX a of on pull-through mainly while business on framing. efforts increased usually to improvement products, margins the lease relationships we sales to the of the major increased customer had see The to pleased reflect of believe contribution sales strength products our during the changes serve cost slightly quarter balance competitive this portfolio, in impact sales from addition effects XX profit So, lower our reduced of points improved improvement $XXX year-over-year to net Seventy the margins up and a breadth million, points points XX.X% $XXX of points the related also initiatives was expands volume of product quarter. decline product the by category XX sequentially approximately XXX XX.X% product structure, of our quarter, net other on in to advantage, X.X%, adjusted highlighting grow to product and cost remaining our a to They of The is basis success basis. many sequential accounting. base products. a of quarter. the so the highlight fourth and on wallboard, increase related to Other tariffs, categories increased we year-over-year basis metal continues SG&A this the XXX We was including to ceilings, continued neutral. in but recent early in declined efficiencies of from of Mix XXXX. by fiscal our is for adjusted the EBITDA which a approximately Titan The the basis. which Titan and operational as responsible complementary the further improvement basis basis those fourth but decline of quarter. the basis by drove steel improve points our points throughout streamline benefit our quarter basis the of our percentage in

operating as our in in impact fiscal change Canadian delivered as We by XXXX exclude favorably adjusted first the of from if well X.X% you our that EBITDA the converted changing percentage or approximately improvement $XX.X cash the SG&A XX capital to accounting sales, of $X.X EBITDA basis year-over-year leases performance enabled to expect a provided our $XX operations million. affects approximately EBITDA or our organic during from the adjusted as points on majority strong accounting adjusted quarter, and of economics. favorably it has our As in we without an This million last us discussed our an benefit was lease accrue reflecting EBITDA to change call, million margin the leverage. This up in quarter, million. benefit Adjusted we X.X% our operating first leases. quarter, first $XX.X

$XX we enhancements, $XX to detailed, the year fiscal in underway previously-stated the as plan and to well late are Mike that reduction realize strategic As million we on of a margin result cost in implemented June. expect savings million this

after pro Turning pre-transaction. adjusted acquisition, our to of debt X.X and July to forma up X.X XX at the Titan as slide stood five; LTM net EBITDA times, from

and track are cash We flow debt. leverage quickly record pay given our of ability our current our generation down with comfortable to

IPO when as X.X was leverage compares when just before XXXX well ratio times, Titan ratio post as current leverage was XXXX six May to Our times. favorably our our it

of million $XX.X on million on cash ABL availability with facilities. healthy, remains sheet our balance and $XXX of hand, Our

teams have Before quarter, here to relaxing nights back to a weekend. and the Day countless great hope team over extraordinary all as I everyone the Mike, Titan I as Legal their few Labor weekends very integration to at and take seconds Tucker, call. and efforts We up thank Finance, of this turn you of this the all who've call want leading well particularly worked Mike? HR, a to for

Mike Callahan

in ability another of In XXXX. the solid Doug. had start adjusted deliver closing, keeps a to in sales and our year, to record Thanks, me we fiscal EBITDA confident which year

the remain end continue We position scale As portfolio North our of in believe advantages support allow growth and to health growth. very to for we us feel indicates, slide position and top business the in the good markets our we our built balanced significant a will distributors ceilings with for the as revenue leading about very which long-term. of one and our America, confident line industry properly wallboard in six that's well

our to business, margins. We committed previously our remain stated will and continue invest expanding of objective to in

mix our drive time. questions. to with support are actions acquisition call managed have with we help that, positive profitable margin operator, our to initiatives, open anticipated provide cost the ready will implemented higher for over synergies of continuing with These superior margins coupled prices our growth. We and proactively customers service our and And with saving Titan associated to appropriately, up

Operator

Stephens. now today session. is a We'll be from you. Grooms conducting question-and-answer question Thank first Our coming from Instructions] Trey [Operator

live. now is line Your

Trey Grooms

gentlemen. morning, good Hey,

Mike Callahan

Trey. Hey,

Trey Grooms

since So is that question in my of improved kind your it response helpful. in Is that about little competitive first fiscal a witnessed timing quarter, the then of the these has landscape to more manufacturer, the and I feel you be around competitive seeing signs do have can you think, or that just landscape. talk first in like -- you there? mentioned there come you color from the stabilization, would something some additional or increases that of Is it's

Mike Callahan

Yes, face -- costs, competitive. for doing the in that I of get Trey, always we've for environment compete; regard. rising there's kind I wants the increase markets quarter, that throughout terms it think been return price is first to costs of what we've think XX bit, stabilized new July, in and have it experience doing, mean, wallboard ramped years, nothing and I the of a going the of to a it's so well been rising I as everybody But throughout obviously think the to think mean, operating as frankly. they're as quarter, We're I I pricing and in competitive

Trey Grooms

initial kind of around mid-year with your days, of know Okay, thoughts still cost from increase I on just the kind approach pricing, additional any that traction early coming been mid-year mentioned manufacturers, then, topic this in around so cutting that that's the the but increase? of it's encouraging. price here, this what's And you to

Mike Callahan

to that much Well, on of pretty prices region is up now, based The divisions. say current all holding. are It region our that seem be as the would price to set market up a environment take say are but but in going holding, generally pricing finally settle at would to fundamentally, market, while and to to it's a number. varies, you just from I right throughout know, I prices

Trey Grooms

all And okay. of Right, across was was for wallboard that that your lines, product comment or specifically or ceilings?

Mike Callahan

well, prices I was assume specifically products in wallboard, Well, frankly. were across you as general, all but referencing I headed, are that's because up where

Trey Grooms

Yes, okay, there. just clarifying

Lastly, just on want the about your that is of and light, that wallboard it be with Can compares time from inventory this in line, you obviously just -- about to price it'd going talk just inventory levels, levels? there, ceilings, witnessed how year, or you note, and mid-year that? into of there manufacturers. well kind it a us was anything about Where is could in the heavy, whether talk industry some give pre-buy little increases pre-buy everybody that you that these at on it

Doug Goforth

Hey, Trey, it's Doug.

inventory are levels Our up.

pre-buying You that sheet wallboard. flow various we so products can in do cash our including balance for see and some our numbers numbers, did

inventory middle So of some come is the rapidly time is a level so an time uncomfortable this unusual little with. so This It's that's increase that you are those for an in of levels we the that's wallboard, reflected the not calendar -- throughout since saw unusual. the results. the quite balance to expect year, I particularly pretty been the and do of down in it's year, year. a

Trey Grooms

Got place inventory just stuff it. the it's type right any fairly limited stack time, kind of actually Yes, anyway? pre-buy given on kind amount can think tough thinking, because of the I you this and of wrong, limited at have and correct -- of could distribution, it's is I right? so it's of me wallboard mean, mean nature I in but if you it's the to what that outside, I'm

Doug Goforth

able historically, to that's pre-buying that. bit that wallboard for a did flattish partly volumes. results We're say we and little more have the Well, to I the we our would than pretty much us of quarter, actually were so do enable do

you of quickly recently through our they Mike facilities have larger what actually saw And you busy our of the And I were. excess that's a actually the part also there. referred how saw were sales in you for time, of some there, were our yards, of particularly actually and it pace July. moving store one length they can we this you saw is they August as so same sheds You and were in product were of also in country, again, are in to, was running facilities storage. how up in you for number about one board reasonable as in yourself going on outside provide a busy at that and August. the And Their mean, was just how that. prices

for feel our in quarter we This about what's really So and good up. coming same Canada, quarters, strongest current is team up historically thing of so… the the one

Trey Grooms

good right, got on back and it All quarter, queue. but in and I've pass good okay. jump a work on more I'll luck. the Hey, few

Doug Goforth

Trey. Thanks,

Operator

from [Operator you. Humphrey. coming is next SunTrust Thank Keith Hughes Instructions] Our from Robinson question

Your line live. is now

Keith Hughes

we've organically. implying little seen volume still gains comments, all you your the you think you to really that as like my Feel you. industry, during markets. end-user Mike, good given Thank it's reported kind maintained period of on share a is your surprising I flattish a question guess generally

is just could think user months? you last demand end of what characterize on of going sort couple If the the in you

Mike Callahan

that's of pipeline labor solid. and frankly Generally but be Keith, that the in interesting, out. the constraints our backlogs very, it of of reality what, recent work, don't whether the demand very -- It's speaking strong, levels divisional the pushed know to I but been is seems our that that work the have is we're some we And strong. are getting of one frankly. out our would've volumes or some calls the a here. it And bullish a backlog work Doug the very little that is we through quarter. getting still some And of Demand just like yet, position But incurred and conditions taken strong. with slower had backlog very as the record line about are outlook seems said,

So hopefully that answers question. your

Keith Hughes

fleet. higher done includes margin margin you four graph, EBITDA the in business. quarter EBITDA GMS a we of change has prior breakout does of slide basis year? that which your the year in how on improvement. take historic financing do you second, of in margins have do excluding to that traditionally been versus Okay, prior Titan XX Titan points the quarter believe this higher the I out margin shows versus It the If

Doug Goforth

It slightly. actually improved

Keith Hughes

Okay. improvement? gross the helped was And what there SG&A, that margin,

Doug Goforth

more It cost gross some operating the some It from going was benefits we We both. margin. reduction started actually was as than other see well as SG&A the to efforts that initiatives on. of had

in initiated million in terms we the the late but that Although in that minimal, of $X we're less definitely quarter, that we the fairly good because feel leverage. was on than about really trajectory quarter

Keith Hughes

Okay, thank you.

Mike Callahan

Keith. Thanks,

Operator

Thank you.

Capital from is Mike question. your RBC Please Markets. question next coming with from Dahl Our proceed

Mike Eisen

Good taking Dahl. Mike the Eisen morning, This is actually on question. thanks for for

question call your about partners been Just steel around on think I a you working in last this the volatility volatility. guys first a pricing segment the on quick lengths the business, given There's in more lot with spoke framing in market.

imply comments price about help your core was about that should quarter how in margins Can the segment? means benefits moving business. double-digit think gross think from this on this what the we I on us you and pricing there forward, think

Doug Goforth

framing particularly were a one the more our because year. year throughout of only deal next and balance into Ceiling but in ceiling year increases this a tough also with going the has that's been indicator about the That's for question. had I good as after that. coming wallboard of really forward Pricing, to mean, a were number but we said, It's up we and so a volumes has price the grids good jobs challenging steel products X%, of complementary of set for other late, as grids. a lot not first-half of probably one answer. to stabilized commercial

been on and difficult, freight been things transportation, also with. some so say guys ceiling that's going particularly of challenges the stable. getting tariff-wise a now compression have that But job They impact getting more the terms so and that. because around of probably And manage. doing ahead have of out can country, so products was good happen anything difficult grids side manufacturers longwinded the prices I'd tweak-wise or et the But and restoring rolling I than that's that kind they're we've been have we're to it that dealing right had margins shipping current different could but from of on a forward. were freight the know really other still general And steel ceilings transportation steel, question, ceiling in more parts been that. surcharges, and of and into those in cetera, are

Mike Eisen

August? that's helpful. the on And trends talked on to it, indications through trend think Got being if demand the talk about general, just Can to coming continued mid and you how stronger then out end played last call seen of and in the quarter you've then u pace. May actually single-digit the for guys I any

Mike Callahan

Well, is single-digit at volumes overall, from to continue industry terms I the the think looking here. the our the in be world to how August think, we're kind relative growth rates, overall. of looking quarter. probably of at we're low I That's strong And expectation

Doug Goforth

as the I would quarter. Yes, add Still, basis accelerated throughout we've talked the pretty quarter. as Wallboard daily volumes actually the consistent there on of the you to got were about, towards a end that. volumes again, on

in as that's again, in and positive good certainly well, upcoming that's products So of then were that regard. to up other indicator the a leading so months,

Mike Eisen

you guys Appreciate it. the questions. luck. taking Got Good

Mike Callahan

thanks. Yes,

Operator

Thank you.

from David Manthey from next is question Our Baird. coming

live. now is line Your

David Manthey

wallboard. price growth landscape? good that see at when And you wallboard assuming that when both is you just the Hi, imply competitive stabilizing morning. market I'm say or quarter that to we the could going the look in guys, wondering next is volume you are and that market improve does

Mike Callahan

question on was just the addressing specifically based landscape I think Well, competitive earlier. I the

as goes. And going I better. with strong. We -- rate think even really to little maybe or the we of steady growth it's will industry bit forward, the market volume it tend with kind she a kind the the anticipate in of remain will go

Doug Goforth

we're trough the to we Yes, we've wallboard, that I moving the forward. levels. right quarter the point momentum market going flat hit inflection or a and back that expect an we would say believe to -- see were get over essentially volumes probably And over next to that next upside that first quarters few in would

is next line our So to X% going we X%, market the that over volumes in few quarters up will believe with the right be be that number.

David Manthey

Okay.

Doug Goforth

we expect that see to addition to price in then some appreciation. And

David Manthey

Canada Then Titan? you you some for up distributing market experiencing about specifically, to slowing to business? the in any risks when offering has Titan any at there second, thinking you the there product plans translated translate product Do or specifically, stress up interest test seems have their and/or they're GMS have the residential the be rate on that there anyway. look And currently Okay. core and back side expect change been to

Mike Callahan

say actually would I Dave, Well, a very think in that still the good position. is I generally, market Canadian

the Titan very, Coast are with the Toronto. We very and performance West to that goes organization, and the pleased strength all way the of from the

of all their I think of their companies; performance. markets experiencing all are solid

in to a things the into In kind different and differently scale mixes sharing, early some there's versa. perhaps and they on some help there's of vice do exploring of introduce daily, closed we what what during and and they the product even those and new but do do question first, can products because on opportunities, than our to that terms leverage do perhaps we're we respective collaborate We products, it's process. no what can cross-border

discussions and there's go a couple And continues of So We've some we're collaboration. opportunity discuss to to forward. a yes, already experiencing had definitely of number meetings pretty there. that. some solid that But

Doug Goforth

I and trending where their we margin Dave, that right sales Yes, are expect it. would add,

Mike Callahan

Right.

David Manthey

thank Okay, you.

Operator

Thank you.

from question next Our Wells coming from Patterson Fargo. is Truman

is line now live. Your

Truman Patterson

quarter. nice and guys, Hey, good morning,

Mike Callahan

Good Truman. morning. Thanks,

Truman Patterson

Hey.

some to margins? guys you Is of steel gross much you call, believe costs have a but versus the in lines. earlier the might mentioned just guys segment any there been cost are for your or pretty could pricing you about pricing talk headwind I product believe offsetting framing each I question, comments First made the lags?

Doug Goforth

kind there also Again, not quarter them points margins steel -- getting margin up talked products, was it's see served, But not our basis improved with it to product transportation are been degradation transportation-wise, partners there. we've of backlog comes compression a fourth trucks utilize a on wallboard things effectively, throughout basis. other not framing the when some quarter. wallboard with ones on but steel the able did rail Plus the but a of supply our of of toughest also some ones Well, to own facilities via underneath we on are or bring because able only from fleet particularly number lot lot of fleet the we're tough got done particularly cost product maybe and help related. only product help And pick framing we when grid, we've the rail. that mix ceiling a to of partners of Right. steel to XX deal so to in non-wallboard our then we to about supply our that

do ceilings can't with for You that part. most the

transportation our those and in try proactively try doing with it that get have all adjustments. stuff So the set guys But tough like margins. there they out when to are you that whatever whether to start makes it's price our to surcharges, surcharges are on the that we initiatives where doing can to that, to flat in and come increase certain to surcharges other pretty markets addition up some out implementing own those good margins our guys

those we margins line. first you to to back moving how done be And -- double-digit we up our we're the majority increases see job think forward. passing we are on to based a customers. EBITDA our the of along I in expectation good incremental bottom moving inflationary that mean have putting is I forward going quarter, the performed So in

Mike Callahan

Yes, right the because I that all the unbelievable. time this alluded guys really would very am particularly sure Doug in is to strong you I and now asset that's hear it pressures too emphasis environment are a what transportation rail capacity

that rail we of non-peak advantageous. centers either the to have have directly in facilities operate. facilities we on So that and number rail times to thing and reload a kind volumes or very where offloaded large large ability is got our of have And get

big asset So that's a for us.

Truman Patterson

break to Could quarter how guys Okay, And backlog Titan, EBITDA top was that on know the thanks out between I jumping on core you clarity top the has margin? exactly the And then you that maybe growth performance? and some the in backlog that revenue growth, what line expectations. But, your you maybe it And possibly comments line just maybe up of acquisitions that some you strong -- following both year? and the on just the break your prior past could just made your finally, one and was performing change is maybe quantify strong, of could being guys. then, or up then over Titan year-over-year? wallboard out line with what's that in being in what said

Doug Goforth

that's questions. a lot of question. That's a big Okay,

with me Let start Canada.

reporting company. So, one we and are segment

here sales later for not than will about be going we reported we're U.S. we for our million. no get We July are acquisition to our over North our numbers to how US$XX in Their in do going cetera, throughout here et our thing June the like were it do our obviously the numbers. don't months and But that's a So on all America. other we sales into which same the little just performance their disclosed There in divisions specific reporting file that are are related majority XX-Q materials sales we Titan two obviously tomorrow. of supplemental with EBITDA

to presented we quarter. we strong as were exceptional we how because there. of is we those. And an when did operating their are going margins, they performance get good job managing expenses, and do a that's do the they going just strong have to But definitely for good the So again that operation, acquisition tailwinds that aided do EBITDA our

over very positive have stronger quarter be contribution. for And we it's will going each the are period. next even nine months. So, a we full And to them in

think overall. In terms product specifics you also asked of about I

balance the of X% we volumes of were -- on categories, up that other Other the that the and X%. that such about product that's there other business, that But already is And of well. a products products tough. as then variety believe about The volumes products, we steel -- kind X% to ceilings in up of were price. talked base volumes other

looking split that So, probably XX:XX on a business. at

In talk I'll more let about terms that. backlog, volumes Mike of

Mike Callahan

Well, I is of Commercial most backlog the said is right major to strong wallboard backlog, earlier, metropolitan in there come markets. an feel activity the steel think, mean is because the indicator good that volume. as robust I we follow And tends now. terms to frankly, very is that our I like in sales of steel country the the across

on where now, the based on are we are the outlook backlog. about bullish sitting So we

So, to forward frankly. looking next quarter

Mike Callahan

the do his accounting again are do adjusting to questions, improved just the on asked on Canada to change. specifics here Canada, and we want I for the go make et clear by I I and as that's Truman, do it want And lease a not in U.S., basis. EBITDA that And U.S. and us get margins and going year-over-year of cetera back while Keith to both those on kind

Truman Patterson

guys. Okay, okay, thanks

Doug Goforth

you. Thank

Operator

you. Thank

from Kevin question Research. Hocevar Our from coming next is Northcoast

live. now Your line is

Mike Callahan

Kevin. Hey,

Kevin Hocevar

$X I million believe morning for think synergies $XX expecting so year. good And you just annualized. I Good quarter. everybody. Wondering on or looking morning. you Hey, were Titan, are Nice million this

is and that's maybe number? that that does and how talk upside about synergy you collaboration Titan the wondering some when So, tracking between there, expectations. there to GMS And opportunities that suggest to compared

Doug Goforth

deals the diligently. Well we synergies, Kevin. just we June morning are mean in Xst. I process finding working Yes, closed the good

some So progress. significant work our it's combined aggressively are working and leverage a have found to we But already platform. in opportunities

Kevin Hocevar

A lot there.

Doug Goforth

our here the being which U.S. sequential number markets definitely price That's The is Canada prices. by tends have two a just market higher in like in for had to we the in impacted months. price, increase

So that's them. one of

So we by in quarter. that were aided first the

up year-over-year. So wallboard -- us. part biggest said as Yes, here far came here July the we prices little a their bit in again again the of through our And of the but U.S. up July. prices the again increase in but in aided most was U.S. on increase we August May, in were so so up And in earlier, really I in Canada's were month. really price are in the

the what down about of missed seeing probably running ahead but in Canada we thing running previous running is faster it's here actually is base X.X% I now. than should say I there in actually this questions, think share their in I U.S. is U.S. sales -- right Truman's of on we that, business is it pace would but Canada particularly here expected Again, one on are to I actually set on their the X.X% up

Kevin Hocevar

Got you.

Okay, very you, helpful. Thank guys.

Doug Goforth

you. Thank

Operator

Thanks.

Seaport Global is question next from Our from Securities. McCall Matt coming

is live. Your now line

Reuben Garner

is for Good morning, this Reuben on Matt. actually

Doug Goforth

Good morning.

Mike Callahan

Reuben. Hey,

Reuben Garner

Good morning.

components? and one be of so? us, flow, you from takes the next mentioned the for cash what to puts sheet. free so flow [ph] over you through the us balance X confidence or Any year Just you able think for cash to walk de-lever less? you think Can can And X.X or about to how get that free quickly you down maybe will

Doug Goforth

years. two generate within call, enough on we less -- thing back said offer will the Titan cash below of about X.X times. two will remaining operating than down within to think and place We well term, CapEx, longer in the get would to less same it I X expect then appropriate years And be both which X% to cash a Mike we the to revenue be

that's So our long-term target.

Reuben Garner

and this think free to that no specific takes puts in year for like are or there investments about cash flow anything a And from standpoint? particular Okay.

Doug Goforth

tax with now are a keep Act. you we've in Jobs got that rate modeling mind as the attractive Well, it very

as was et as foreign some we're quarter our on CapEx people interest provide table tax probably million. of you slightly XX% turns probably take CapEx run, then as capital working capital while that. always in well and our cash this their down percent year $XX and result taxes, under up help And model telling income. the pre-buy EBITDA for call out year will we that exchange of Titan little cash million settling release a as and the will our $XX would in other I the mainly between it's currency we say, back of adjust were the payments kind a take it and a revenue million. our same earnings So, working cetera. to about pre-tax somewhere through cash But this of elevated to because This run of model $XX with did

around be XX% down free again to revenue. wise. rate flow cash assume back do pretty We then at taxes it incremental that of tax to that close call should normal you XX% And you if cash expect get should what to we

Reuben Garner

guys. Thanks, Perfect.

Doug Goforth

Thanks right, All Reub.

Mike Callahan

Thanks.

Operator

to would session, We any over comments. closing management you. the floor for to question-and-answer further back I Thank to like end of or turn reached our

Mike Callahan

our joining to I for everybody thank want on just call today. us

And are very in forward look on are about excited updating quarters. have coming a you we We our weekend. good Labor progress to Day I the today. we where

Operator

conclude teleconference. does Thank you. That today's

We a at your You your thank time line for may you this day. today. have participation and wonderful disconnect

GMS (GMS) 30 Aug 182019 Q1 Earnings call transcript