GMS Inc. (NYSE:GMS) Q2 2024 Earnings Call Transcript

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Operator: Thank you. Our last question is from the line of Steven Ramsey with Thompson Research Group. Pleased proceed with your questions.

Brian Biros: Hey, good morning. This is actually Brian Biros for Stephen. Thank you for taking my questions. First of all, it sounds like you’re not really seeing any meaningful pauses or cancellations in non-res activity yet, but obviously expecting an air pocket eventually. I guess outside of office, which sounds like it’s actually not doing so bad right now? Are there any verticals or geographies that look like they would be the next to see kind of this downward pressure based on what you’re seeing today?

John Turner: You know, the West Coast has been the softest throughout the entire period. And so it’s still soft, right? With multi-family has been fine out there. But it’s been soft across the board. When you ask about a geography, that’s really the softest geography is the West for us. But none of the verticals themselves are indicating any more softness than each other. I mean, if you look at the put in place numbers too, it’s fairly reflective of that. The key construction related categories are all, kind of, in that high-single to low-double-digit range as far as activity goes.

Brian Biros: Okay, and then its last follow-up would be, do you provide more color on the, I guess, kind of just the overall platform expansion strategy here as the end of the year, I guess, more, kind of more specifically the AIM stores and the acquired tools distributor you guys mentioned. I think you mentioned earlier some of those acquisitions added some expertise. I guess we’ll just be interested to hear how you guys think you can capitalize on that and kind of roll that expertise type stuff out across the platform? Thank you.

John Turner: Yes, it relates back to — so organically it just relates backward the answer to the previous question and that is primarily using resources that really know and understand that business and understand the supply of those products better and helping our purchasing teams do a better job of nationalizing our approach to the buying of a lot of those products. I’ll give you an example. Our fasteners business was up pretty dramatically in the quarter. As a percentage, it’s still a small part of the overall business. But a lot of that is just us being smarter and better about how we buy those products, providing a competitive price for all of our teams. So we’re doing a lot on the backside, I would say on purchasing and also some logistics support with our internal company that we call TSW, which is an internal distribution arm, primarily for complementary products, but then also it’s supposed to focus on sales teams that I just answered.

The more and more that we can generate enough volume to afford to have specialization, the better we do. And that’s continued to roll out across the business. And then our M&A will continue to do M&A in that channel.

Operator: Thank you. That concludes our question-and-answer session, and this will also conclude our call for today. Thank you for joining us this time. You may disconnect your lines at this time and thank you for your participation.

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