GMS - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

00:02 Greetings, and welcome to the GMS Second Quarter Fiscal twenty twenty two Earnings Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. 00:24 I would now like to turn the conference over to your host, Carey Phelps, Vice President, Investor Relations for GMS. you. Thank

begin. may You

Carey Phelps

joined Melissa. President the and for GMS fiscal and XX:XX quarter you, and Turner, joining Executive Chief Chief the you Financial us of Officer; I'm two. twenty for earnings Deakin, twenty by Good Thank John thank President Vice morning Scott for second today and XX:XX conference call Officer.

at release this www.gms.com. defined Litigation Reform have Securities posted of to accompany Act call In two. the call, we our five. Turning On addition your statements Private PowerPoint management's and XX:XX morning, may website to to nineteen Slide prepared as of issued this contain forward-looking the the answers section in press questions Investors today's in slides to remarks ninety

and subject our Risk the of references on The are October the these a twenty one. to for forward-looking are provided call two to that a from of ended non-GAAP XX-K which Today's presentation current the including in The statements the presentation more management's review and this to reconciliations and twenty forward-looking thirty control are no quarter note press release second related the those discussion forward-looking twenty detailed measures. As uncertainties, SEC, Please definitions section periodic results fiscal to statements also that statements obligation of many measures discussed relate any the discussions quarter and update and the the matters one, to of to twenty expectations. reports. with Listeners slides. in the company's includes Factors other encouraged company's filings and beyond XX:XX risk reminder, represent in in these cause estimates address may future. actual are differ contained XX:XX statements today. company assumes Forward-looking certain non-GAAP

turn that, we one we request to XX:XX of JT? With question once call, John to you and one the call of follow-up. question-and-answer over limit the that the Turner. session the I'll time, in kindly begin Finally, yourself interest

John Turner

us today. three. and you, Carey. morning Thank Slide to XX:XX going Good We're all joining start for on thank you

net and sixth line compared percent our the eight a row. was to SG&A adjusted forty thirty a percent two point in steel finally, adjusted hundred margin product We sales reporting improved four results XX:XX forty one and of today you continued EBITDA focus two year on for dollars. a four are sales service net seventy of point with product three adjusted were An percent up levels with of million and EBITDA and strength the And of another the categories. of basis pricing million environment coupled Gross standout with record point quarter the of net with four for sales five remaining our year-over-year quarter drove EBITDA adjusted as five dollars, few performance SG&A percentage nine twenty point from pleased which ago. to for sales, include: ten highlights and record billion execution growth a A higher income another expected. the share point percent increase with setting than dollars, core and quarter was with one least from residential in in five sales inflationary profitability. slightly one two than greater improved a in quarter points with quarter. at All income, thirteen market strong XX:XX percent, each quarter specific net of customer margin one

instrumental core our our our customers remain level We like examples. ability works our on diligently priorities and supply First share XX:XX a business. executing strategic focused high and of share I'd this four. performance. in context of of were the in demand, greater Slide residential in product chain serving strength the needs Within constraints, sales a our to customers' on on our inflation, to earn focus deliver as share few products on force to of expanding our

during growing profitably activity provide builders confidence the our each notable due quarter XX:XX checks key Second, diversify home back channel and we to products with levels are in offerings. suppliers steel concerns, complementary or to expand to many our While chain product in of continue categories that supply maintaining share pulled their we framing. growth our growing with are our

this consecutive just eight you largest point completed percent, as of and category. quarter grew night's will acquisition for release, category, sales in latest This the automatic are in potential. of growth more sixth this acquisition about platform its our we growth expansion. and we year-over-year in excited quarter Regarding product momentarily, margin foremost marking twenty XX:XX discuss And nation's accretive four the saw AMES, I provider taping this last detail transaction this but tools.

Kimco with efficiency development our lowering productivity over in processes to scale to against helping customer to to the new EIFS the and AMES pioneered to fourth completed to tools AMES our make capabilities automatic cost facility second technology automate five. enhance turning minutes of expanding market. customer highlighted from our service a to Tennessee, while Specialties, order enhancing and business DK&B transactions acquisition a we providing market. our that the best of finishing which dispatch experience, taping finally, that Nebraska our week, is and Taping technology online greenfield offerings the opened better the serve. spend Before expertise customers Slide of through XX:XX employ to to our like we working efficiency strategic XX:XX I'd improved purchase by profitability. three ATF the dramatically improving company, of and to in the and the practices complementary drive delivery, advancing ability execute transaction team of which Beyond growing Scott, our our of division discussing Tools, industry supplier and in to few this us and automatic AMES on call data the interior tool operational are TapeTech Greater service quality, brands thirties, during industry's utilizes its we in of under and quarter product our Arming and to is And we informed the brand to distribution. operate XX:XX used pillar continue the and premier the of finisher. platform continue will The the the taping professional decisions of Construction speed, e-commerce widely completed all-wall.com. leading additional we brings well-known the AMES drive most quality Today, the channels the across tools high priorities, And our levels to and is leverage nineteen

ATF eighty First, residential available than applications an AMES' of finishing products stores one more for and of provides network sells rent. hundred interior thousand five and fleet for tools unparalleled commercial

results to XX:XX a sales and second margins distribution of third offerings, serve XX:XX quarter. provide our related our our of to TapeTech online channel should trailing channel the is tools approximately e-commerce turn financial And it second and Scott? products drywall the to is branded on in Scott With to finishing as and including ATF as dollars excess GMS. through one over and million hundred the The through profitability twelve now related month sales products of long-term but company that, for more revenue perspective complement I'll distributors, of our dealers With platform. all-wash.com well. AMES not product our average, only

Scott Deakin

year-over-year. and mix hundred dollars percent wallboard Organically comprised inflation. increase increase XX:XX by inflationary The increased point both healthy a of average by good weakness and in gains point lines five four lingering realized a solid and XX:XX point comprised was quarter percent this builders of twenty lag full selling Organically up percent commercial two four an issues five volume. and past coupled construction products, in principally the two JT, across more and again morning. Thanks, sales to five percent the many grew new percent days percent mix, a price dropped from point six. twenty to volume. Wallboard one increase year-over-year are thirty slight sales at From quarter The relative in sales commercial. the chain one offset eight number demand point XX:XX the point XX:XX were sequentially sales, continued for XX:XX the Looking and market fourteen now percent buoyant nineteen market end increased of single-family a our Given seven supplier driven the growth. the of for percent one residential two principal increased five nine pervasive of a pricing one partially price twenty price acquisition, quarter residential results our million environment organically offset in Westside were high due to in percent sales serving perspective, and volume billion Commercial our benefited with in to point pricing product residential the for residential given single-digit that of to other thirty actions, Net volumes have each has decrease Slide five US the five in supply point year. residential quarter one volumes which quarter contribution dollars. continue market. than from same wallboard in and of in strength point one rose our facing point price forty drivers

positive and hundred anticipate five framing dollars and point and nine and the price. percent a with as ceilings points year-over-year percent six two two On price pass-through two calendar one volume. steel the and increased XX:XX four point year. four three nearly last three twenty steel steel realized point in Pressures of framing point For by tempered price of increase point on sales percent margins one XX:XX and and and price twenty volume. two from four offset point benefited from of our one two complementary three forty the is of percent we sales three the from three two, of as partially hundred XX:XX fiscal volume. up of six coming a forty six from twenty one year two Organic hundred first the slightly point and point from price on million and twelve second and in quarter of increased comprised strong hundred framing, point percent. was by offset from increased up four mix, of an increased average point escalation four the sequentially coming product quarter, a dollars up majority of actions quarter margin contribution per decline sales one Gross comprised over were at thirty On one two basis Ceiling one thousand the quarter the better seventeen dollars percent ceilings, percent point point thirty and seventy our price of products year. a twenty percent percent the dollars in was of the percent one level. million for in sales in increases twenty point point up mix supplier million XX:XX second with expected hundred ago behind of grew percent Steel forty four and were While last and products quarter increased percent hundred we categories. percent and resume year's pricing hundred mix timing feet, percent twelve increase one from most basis, than year-over-year one Sales volume point to grew and late an and nine to organic complementary XX:XX twenty twenty price gross was two organic tile performed benefit point five wallboard benefit of percent percent due point basis, twenty wallboard new four seventy in acquisitions products. six a one square percent price or profit eight twenty moderated nine percent increase pace in and the two grid growth slightly as in further of pricing thirty point seventy partially complementary

gross significant sales fully price a through that Adjusted wallboard, category. it margins to to points Slide XX:XX increases outpaced ten four six three While have in teams net months in a clear point costs. progress expense typically narrowing basis as improved to our gap made the three Turning percent pass sequentially year-over-year in of percentage product seven. and takes as to increase operating inflation nineteen improved product SG&A driving

a XX:XX have impacted inflationary of our difficult employee leverage COVID backdrop as adjusted several the teams all, that hundred an pleased and the upper this by While Slide point five quarter a than balance sales dollars and position. percent EBITDA in higher improved point one percent achieved benefits points dollars, our eight driven eight based the EBITDA levels increases eight cost driven as XX:XX disciplines was we and and in comp thirteen notably and and during representing nine cash eight end quarter at our and profitability. activity million incremental nineteen adjusted two of sales by well margin to with references higher inflation improved the most the fuel our margin dynamics of point the our forty liquidity two for our year operational was positively quarter as one areas, basis of era against of are net account in second All flow percent sheet ago and expectations. year-over-year

a instances continued our million our during respectively. of Given dollars, the use two customers to we related XX:XX has recorded product of availability our quarter increases The associated free million availability; higher of had receivable. cash tight offerings from commitment principally times, of certain our and portfolio use extended quarter, this operating across required point also use in with dollars eleven cash product drove cash and for activities again inflation, We accounts ensure revenues inventory. a to and of three of lead inflationary cash

cycle expenditures one compared typical prior point point back in through we dollars the a forty enter levels million we inefficiencies in quarter forty percent we me, generate when basis, other are of level continue million some prior twenty of seven cash Looking is excuse hopefully nine the to to and generating expect chain range Capital our of a of half to flow down we twenty On at EBITDA. the winter as maintain inventory our fiscal cash quarter. the two, percent flow objective of of relieved. as of months XX:XX free five as free supply -- to draw three dollars adjusted year improved longer-term

revolving recent As dollars XX:XX acquisitions, on available thirty one, full dollars five dollars we nine of two dollars. credit two in our twenty liquidity under fifty cash twenty forty to expect expenditures twenty of cash one we facilities. million point and of to Given be point October capital the forty twenty had three and of hand hundred now million range year three million two fiscal million our

at questions. strategic ago. let line position to over to XX:XX continue two end down our before point yesterday, back to The point three seven two closer of call sheet zero the as that, the is the times we of to support improved maintain times, point net five moved healthy to within leverage turn a Tools to open point we ratio our the three range and Taping two liquidity times for growth AMES JT this balance now priorities. With Our me debt XX:XX of quarter four from times, times still target transaction leverage year our a now closing

John Turner

Scott. XX:XX you, Thank

Turning Slide to nine.

with as our into next we results confident about and calendar the head business pleased this are feel We year. quarter our

of have between fall, chain builders commercial, chain expected continued Billings caused the completions and and on the our to suit leading housing above activity begun forward. since considered levels his has in supply while remains move one as exceeded indicate during improvement the were highlighted recently with summer available, XX:XX the fundamentals this as planning, hold follow the remained of and has fourteen we parts in among home backlog be support sustained is slowly projects external which has healthy XX:XX supply that recovers. that end existing Scott other Index, continuing And Dodge which demand single market projects favorable Architectural bidding housing for of the remains is some February at non-residential Momentum to remarks, approved being the in to Index, the hit and there XX:XX own that the figures our building demand consumers. Importantly, high. a to sales In are in both family Recent indicators year interest the of best a provides saw products. order of As expectations fifty drive gap to previously measure bottlenecks delays and in generally growth multifamily activity a for and residential starts

yielding me So while price quarter. year expectations the year-over-year to we percent it let certainty point expectations for is construction to calendar fifteen be XX:XX a we the true positive our indicators for third percent nearly fiscal our four Looking prior or dynamics cost year-over-year these two through expense optimistic twenty third of twenty twenty inflation growth adjusted and and recovery, to optimistic percent of balance thirty to sales XX:XX too two. Given as outlook reason acquisitions. expected to generate of net currently year early be twenty for backdrop, demand turn when to given margin at about for the percent. into approximately with the of know total incremental will we calendar twenty continued should quarter three, are we with price twenty consistent have twenty expect products. sales cautiously organic see that year, head gross fifty an favorable between We and our inclusive into two forty our percent the commercial margin coverage EBITDA fiscal continue, growth operating With pressured

will commitment We strategic are to to us our continue scale delivering successfully service confident priorities. and customer outstanding execute our enable that to

for of all call our Melissa is begin turn pipeline opportunities, remain value answers. I And will to with and questions stakeholders. we a we XX:XX and M&A of today. us on sheet solid balance the you for over to Thank Our joining back that, driving have focused strong,

Operator

you. [Operator from XX:XX Securities. question line Our Instructions] Keith question. Hughes of with with proceed Truist Thank your comes the Please first

Keith Hughes

Thank your growth your -- guess, you're quarter talking of total than and just revenue you. two XX:XX -- organic better total it's -- what price. you I would What's with about I volume be helpful? least questions. Any have growth is increasing for reported. the guidance that sequentially kind a something just greater first, you revenue at getting third

John Turner

XX:XX Sure.

little bottom that quarter. think a volume seeing be of off are better expecting I We're the bounce commercially. a in to little bit we a bit the

percent up Steel volumes two steel our a on on organically, of generally sales that commercial indicator saw is leading wallboard usually commercial perceived wallboard twelve the side. percent side. the and You better sales that

reason a a sequential bit So what continuing flattening we're the rebound and our a with on happens see steel we that basis although little any little backwards quarter the that out really wallboard quarter expecting prices we of on year-over-year basis. of XX:XX continue seen, wallboard in to don't is -- prices, prices, is to to calendar inflation for pricing bit. a there although be sure. a see somewhat, for slide inflate ceilings inflation yet first degree So And

Keith Hughs

guess, just meet lot you you XX:XX it inventory, just of comment the and in to I about talk obviously, maybe there. readily on on wallboard? here Could subjective question price in a How unit a orders is Okay. much lot year-over-year, how able customer And specifically inventory are near-term? is a up available where your in up

John Turner

order. the the I to basically meet XX:XX customer mean, inventory we increased

the is like inventory having a reality position. of a to more The extended, have good on lead driver feel basis. we're as our service we unit of carry that's times inventory that So, in

been impacted. turns have So

steel the to to If hand time, into to extended basis on in cases weeks you lead all ten, coming one two twelve. look type on week the a some way eight was year, at

range when bringing to line supply our to kind back expect we'll inventory next of inventory as your come the sort time So five lead in weeks, normal time of that's the calendar going Scott chain to of issues historical course be lot times you we ten back of normal imagine, mentioned, Now the into requirements. on some the XX:XX year, drive weeks that's hand. a extends over by lead can as

than least at and probably we're year, key we point to coming one one think, a drivers. calendar the five I today, turn this were into really that's lower So

new makes And cases. price Just pervent the costs -- in of extended then, with add inflation time lead XX:XX the products times. course, of the a we twenty every unit, we're every the quarter, it more some adding obviously higher dollars

issue So on basis, a that's as year-over-year an Keith. well

Scott Deakin

you we on a sixty QX, probably look volume of in if last where in half stocking in basis. Keith, sort were and our to sort to a of QX, the extra of XX:XX range. related year fifty is DIO that the up good at was levels We're four

is So really the rest it more driven of inflation. by

Keith Hughes

raise you're XX:XX supply products? So would getting how out is the in manufacturing partners, terms you steel you longest now right -- the or your kind of where from would how of

John Turner

XX:XX lead even what's is starts for -- was with has wallboard with pandemic. or what's pandemic improving maintenance, recovered going stages the nowhere just it's Steel early back as and where situation Yeah. based still et cetera. fits of upon sure, it prior going the on near but is time on And seasonality, well, plant extended and although wallboard to in the

wallboard you're key not won't of as probably as after going a around pricing probably few one where wallboard change, sustain So years some also the is times to demand think that to slightly extended are as to and for in the where well. drivers be it situations country that is I lead ago, the was and reasonable as which easy is going market see

Keith Hughes

much. you Okay. XX:XX very Thank

John Turner

Keith. you, Thank XX:XX

Operator

XX:XX you. Thank

of from comes Baird. question your Manthey with next Our with Please the question. line David proceed

David Manthey

morning Hi. guys. Good XX:XX

John Turner

XX:XX Good morning.

David Manthey

XX:XX Yeah.

that percent, margin just So fifteen strong SG&A second be twenty lead items resets should accelerate volume here? guiding one there January as plus and as Are wondering really look I'm we contribution twenty twenty we percent first would in other percent third percent what to the sequentially? price wondering to to here. quarter, at rather to quarter I'm you're than considering the and question, or

John Turner

delivery. volume increases to as some additional they'll think XX:XX cost reality, of I have the be

ten volume is we're not a slightly, flattish cost an extra we're put into can extra of the really where business, business, environment XX:XX having to not you basically percent gross of to comes not we forecasting to going have we're I And now see of we're have that, of as next expecting margins have flat So as forward some that to a lot for then, the cost cost kind but growth some we put prior to do guess, versus right back to top be year. lot of quarter, there'll up in into that sure delivery. go the on

that's really a So lot flow-through of from going contribute not to perspective, a lot extra. -- a

David Manthey

Okay. second, hear model Thank picked internal didn't the talk are as XX:XX you at the tired stabilizing point? improving this helpful. or going release That's we that the logistics you. read conditions slides or volumes then the talking or of are on issues labor in I about should up, as just see And the or you about sort or I'm to

John Turner

to more XX:XX difficult. in it's Yeah, get was difficult. very categories and no I we and difficult think of but it for it there inflationary, it different that is There it's the any quarter labor get expect don't just to and the difficult, somewhat same, certain it's are first than us types are

good last So reality think is, talking it, and job a doing difficult the in with it's I it. maybe still but pretty somewhat but It's inflationary, just much tired same. point, the we're it's still we're the about of -- your

pretty job the this environment good mentioned, cost is our our in you As costs. maintaining think Scott of details get doing structure, of what a when into we're we

David Manthey

Appreciate JT. Thanks, right. it. All XX:XX

John Turner

Thanks, David. XX:XX Absolutely.

Operator

you. XX:XX Thank

your Steven from Ramsey with Thompson of Research Our the proceed comes line Group. question. question next with Please

Brian Biros

my XX:XX for Brian on good questions. is morning. taking This Hey, Biros for Steven. Thanks actually

we percent until until dynamics guess On the margins commercial I stuck coming change? or going does into up in I thirty forward? And how pass-through general of maybe this passes stepping forward, factor two inflation by in margins, gross just range guess, guess, I kind are looking gross back

John Turner

is the to first XX:XX question. your answer Yes

I that's as not being talking at to us know considering this pretty to happening the but the continued real of percent or our longest that the again, that. a commercial pass see that be a anything up quarter. we're will push pricing those today ability volumes side you with about the the the on of and nauseam costs manner going input comes strong one XX:XX what's we've through in drag expecting at takes level think that point. in amount for timely -- stronger, still the the little and being through And probably wallboard, end commercial about like to less at time gross we're talked jump We're bit bad, ten margins is

that or ten So -- were percent the volumes maybe commercial of level or bottoming next were in five percent they'll out eight in wallboard in decline, decline mid-teens percent quarter.

So we're yet about talking get be not anything about. would to excited that meaningful enough

Brian Biros

Thank on then And a That's helpful. acquisition XX:XX in you. landscape maybe just general. follow-up, the

Some challenging thoughts just a be helpful. You would that is done in? those environment incrementally have operating close guys of becoming recently, or we're more around maybe in to the it more attractive deals now

John Turner

strong. XX:XX mean, is I pipeline our

to we important we intelligently. fair Our buy that's companies let's think that we -- how stakeholders view we for right, companies, to that be, buy we like and make sure like be we're to of how say, our

to done exactly is the what also the environment. but in understand be in So that future financial performance is what has work the financial what to this opportunity this performance in look the the environment in is I there means, like think more and going past to

just . activity. we have any feel what forward I there and as doing like to we So feel for I pipeline have be don't better less we're harder a go and smarter continue think work is to

Brian Biros

you. Thank XX:XX

John Turner

you. Thank XX:XX

Operator

you. Thank XX:XX

Hocevar Please from of Our your next question. Northcoast Kevin line proceed the Research. question with comes with

Kevin Hocevar

XX:XX Hey, good morning everybody.

It upcoming last this On biggest quarter, the and been the price and kind up like percent sequentially. gross seems it increase the price has wallboard, that's from margin side, in of months ten that basis the so several points on removed -- stalled, drag meaning, this successful price expectation two will be of in increase. flattish four like point that the thirty year-over-year seems cost October

cost? to So better could that up given just up manufacturers pricing of -- to I'm price price between continue is you're is time your some on it kind for through XX:XX that gap there of that more going just that through guess, to have in guys curious thinking the possible able on to some some kind there pricing, you planning improvement there? see catch you and could there you if push time that, increases thoughts time I'm extra push that? successfully and I narrow is if

John Turner

saw you what that's increase, right, think quarter I the actually, improvement. five the think I XX:XX dollar that's this

have gross in gross seen out little things bit. stalled -- You've a in because profit

improved of it price margins year's year. slightly early wallboard there's is feels normal have something middle nothing a timing then there maybe next year, in and our much increases, So the like the The I'm we the more as maybe pricing. we or something of XX:XX hoping got in that year, that

point gross there and time, costs to perspective you see We that some If see. to XX:XX up, margin people I time much us know at selling said, with out some there and up then think the All that is catch the dollar improvement. and we in being gives bit a could bump where always environment prices a rationally. don't that's you wait have that case from these competitive input against little act of that

is. I know the So don't where ceiling

results. reasonable reasonable delivering is what think obviously and I -- doing we're it's

Kevin Hocevar

to around that January I okay. I've Yeah, price then -- know for manufacturers have that thirty tend on been wallboard so XX:XX least, percent. be twenty wallboard at percent. increases, the the announced And seen or

X there. statement for success a curious percent out. of thoughts seems like a it stalled potential I thirty again, because, on just there guess, be October the seems I'm your the So bit to

share down earlier quarter. in you across checks and the your wallboard percent one your mentioned in based channel You categories on that you're product were felt that maintaining volumes a that the

curious stick? on, for know, your So just again, ability that thoughts the you to

John Turner

what normally think number didn't and like it to think Again XX:XX larger fruition, would and get would back headline than in that. come is the try October I go be, because everybody to happened to I

demand be upon that's go my going So be just we that dependent to all all through. in It's negotiation to going another opinion.

issues some for are inflationary manufacturer. think I there now input the

but is need. there already, starts do the for builders catch supply and the balance is XX:XX catch little if putting starts, it's an there as or up doubt a freight is there lot if mild the don't are is inflate pricing, demand you certainly respects freight supply a faster, a and see some certainly frees an up of just are of perspective the a up tight degree dynamic that chain need inflation. in do But support there of that's The it's and issue. continuing of a I so percent, Availability winter, pricing. completing bit input me, know that some demand are remains from parts that think it and and So a that cost manufacturers would of well, could to put way. some that pretty in the houses there country thirty And problem. I completions some still unknowns, these was environment excuse which the and -- I

Kevin Hocevar

Yeah. XX:XX

you perfect. right. very much. Thank All Okay,

John Turner

XX:XX Thanks.

Operator

Thank XX:XX you.

your next question. from the Please comes proceed Stephens, with question Our Trey of with Inc. line Grooms

Noah Merkousko

Merkousko Noah actually morning. good for on This is Trey. and Thanks XX:XX

John Turner

XX:XX Hi, Noah.

Noah Merkousko

was hoping that detail XX:XX Hi. I little the more -- a bit acquisition. into you I on go AMES was

Maybe can I from than be the margins you will more bit under overall. products? a little think complementary GMS detail there? give just, classified were sales business said you And that better

John Turner

yes. question, Second XX:XX

multiples what for how our think give valuation price that, at less depending look I one we point I that guess, today published question, the a five one First you is the on and perspective, you sell we've and revenue. from on to paid company, guidance I turn a would

margins, range into of a will from an term. the won't So you was. But profitability back what we'll perspective be the I near that it in think public about idea of give talk you that can but a anything kind of

Noah Merkousko

What's Steel strongly you. one. line the guide top just inflation obviously to into price steel quick Thank And helpful. XQ That's price contributing another then here. Yep. baked XX:XX inflation? for the

John Turner

that. XX:XX I'll get to let Scott out

Scott Deakin

I percent component. that volume. XX:XX really then would sort rest generally of seventy you we've we So at it increase of the out But five is you the is component by if and driven impact because guide look about, overall acquisition I'd to break don't price, the by of roughly say, talked

Noah Merkousko

leave Thank I'll XX:XX All there. right. you. it

John Turner

you, Thank XX:XX Noah.

Operator

XX:XX Thank you.

the your question Bouley next with Please Our comes of question. Barclays. Matthew line with proceed from

Matthew Bouley

everyone. night. XX:XX closing and those on last deals the Hey, then results, good Congrats morning

perhaps sounds if products has curious just your some there? a of curious bit AMES. growth like their products or their GMS and TapeTech little synergies work up own revenue of maybe on I'm any locations locations, It back Thanks. investing to ask additional of scale tools your of to I'm a take any the of kind in in terms synergies. little revenue you So -- about could selling to locations. already through broaden their you're

John Turner

you're XX:XX we have get the we to definitely right Yes, that to past, that. than products aggressively distribute more we the in Matthew, will have their opportunity exactly and

business can a offering that's and a a the and e-commerce that on some products expand have market safety kinds all the -- finisher, It's the perspective finishing that's and that's the actually has focus do I In large today product on product in a sold finisher. markets, stores their can and products. XX:XX will markets, install finisher, focused other revenue business we of into quickly. their Their works the model things and been for expert fairly expand tell have and really that we and there. is be from currently that you, also other We lot finishing, contractors. we not to model of fasteners painter, the all-wall.com business drywall and being for platform,

we'll some execute plan and get basis. long smart we're they a will support they're a understand people, going they plan. organization nice they people -- that immediate And had really place, -- continuing that so, to but synergies there we continue with that what the certainly executing strategic effort after on an to good be doing in is have that It's and very to that tenured

Matthew Bouley

JT. for XX:XX Got it. color Thanks that there,

wallboard The second one on price.

and you're pushback I'm that. any and the happened are coming curious pushback and all the -- Given quoting it increase, and getting Is are the presumably escalators and These folks projects the tapering there is customers? more longer-term October to side. or residential approved with of smaller pushback -- own commercial the from from you situation what are speaking guys their the if projects about these budgeting thinking that's is if coming from type that

John Turner

residential the -- XX:XX the the It's is back. mostly, push biggest large

absolutely commercial until all the encouraging we're escalators, with quoting We're at bid but six But of project. that of the right. -- in to -- before community the seven you're the cases and the at weeks aren't side, the on contracts some five, end end let all those contracting way. weeks, Now of the day,

eighteen but regardless with houses when ends construction to -- houses customers a the much et have always the some six, market the where is being So being There ends residential definitely is understands be used. of you're that because five, There lot going number sell for cetera, is project XX:XX to there's to the six too between what a because whatever subcontractor, original so, or of two, sell up they're nobody out in on cycle. is year there's many there. number up time, the in sure, for as market as pushback the And a right trying weeks nine before there contractor, length absolutely cases month and negotiation is to what seven a price general you're in is pushback. trying to noise And far months. bidding and commercially a number, but rely just us, big pushback, they're

the of blue really, it builder environment that's difficult thing And them a and a about heard the That's thing So hard really until all them. we're talk that's they're trying really to for in face. in be issue is them. after -- front an you've out inflationary in for

So that pushback significant. is pretty

Matthew Bouley

Good XX:XX understood. luck, Thanks holidays. Well, everyone. and Okay. happy

John Turner

I thanks. appreciate XX:XX Hey, it.

Operator

you. Thank XX:XX

this line with Please Dahl of question. comes RBC the Capital with your Our morning final Mike question Markets. from proceed

Chris Kalata

going the I taking Chris I'm comments, out, like actually the sequential pricing flattening on looked wallboard your but in is questions. XX:XX my calling does just you segments? said how other know for to It's back for Mike. pricing Thanks the

John Turner

actually clarify, words wallboard an eight you we quarter out, XX:XX flattening where average of actually if six wanted against to two point I look of when seven is were percent we percent. end three point for say at three

last seeing actually took in from the inflationary overall there to is with So most bit market wallboard our suppliers a and quarter but talk dynamics we in pause, regard that of of the the fact the what about we're the what little dynamic a ended as than And we were that's average. end to at were the of where we the we where higher a which -- on average higher quarter on versus the ended bit similar well. steel basis a quarter

product core do. the of we indicators key lines of sort to As

Chris Kalata

in way improvement And steel help sequential it. you Got XX:XX could price. that any quantify

John Turner

four twenty five Twenty Yes. previously up it versus sequentially percent XX:XX -- where percent was roughly

Chris Kalata

of of a help steel going obviously seen price, And of on of I that. trying to Thank is reverts was last the last the tailwind of And better normalized Appreciate be could question, environment it. steel a a kind Got get it commodity we've as gains, sustainability just how year to going XX:XX based and us to you. so much how fluctuations. was structural. and much quarter. far ultimately guess, may these parse mix more if you this it's then pricing But lot of these price also back sense out robust

John Turner

market give steel you new is that better wish lot what with Most the people going remodel. there and There I technology on are answers Depending a there of of that old are the furnaces you structural. could in some using changed is listen I has a metal, forever of on Yeah. XX:XX out saying who to you. to old scrap is of activity scrap a metal as there's production lot US furnaces. and not not retirement

scrap And has very high. stayed so prices

three a expect fairly twenty there, so until two Import twenty quotas new protective scrap, a of and to somewhat be And that still got still that expansions and beyond. that to in so still to twenty unit come and that actually online if price expect lot high. of are late US the online. twenty uses the be tariffs coming we and capacity ask we slated import you've new and production are They're

it's time. as XX:XX would can some supply Difficulty], other those its steel perspective, the but from be us. making way kinds its declined and all slightly and length the [Technical a On already of for is right, to and through should all a So way its seeing say and a making commodity, chain steel making the hand, high there flatten things that change, to from farmers the we're it is way commodity of

yet. deflation of lot a seen haven't We

there All certainly any the yet yet. as not kind are side, of the their XX:XX supply all those up pricing and see not to passing which available, going on And companies filled declines frees So, car seeing them up chain everybody huge their well, then and the companies, we're computer demand says, appliance backlogs. market, chips is and auto you're manufacturing, the as the in we're into consumers. pick steel soon

really watching see would guys quite frankly reductions. numbers when we the don't commodity same that drastic out we're to watch anything it pricing. comes We any yet the you know don't indicate kind of So there

on of what's term selling view near of kind inflationary in very, somewhat So happening. that's very the near the term. our still In prices our very

Chris Kalata

XX:XX Got it. I appreciate the color.

John Turner

if XX:XX helped I I you, really don't you. know thank but

Operator

We in today. for concludes this XX:XX session Q&A our thank interest Thank participation. your and our and gentlemen, you. Ladies you thus call

You may your disconnect now lines.

GMS (GMS) 2 Dec 212022 Q2 Earnings call transcript