All right. Good morning, everyone, and welcome to the Jefferies Industrial Conference. Thanks for being here with us bright and early this morning. My name is Maggie Miller, and I cover building products here at Jefferies. We are thrilled to have GMS with us here this morning. We have JT Turner, the CEO, and Carey Phelps is out in the audience from IR, if you have any questions for her later in the day. But I will turn it over to JT for some prepared remarks, and then we'll go to Q&A. All right. Thank you, Maggie. I appreciate it. Good morning. Thank you all for being here, like Maggie said, bright and early. We had the over and under at about three, so we're on the over for sure this morning, so we appreciate it. Just gonna give you a quick rundown up on the slides here to give you a kind of background. Some of you I recognize, some of you I don't, so I'll give you just a little bit of the story. 53 years we've been in business, basically doing the same thing, building product distribution, primarily interior building products. Of course, we've expanded geographically and also product-wise, quite a bit over the years, and I'll take you through that. Our fiscal 2024 was just over $5.5 billion in revenue, net income just under $300 million, and adjusted EBITDA about $615 million. We have 300+ distribution yards, 100+ tool and fastener locations that are separate. We have a different brand strategy I'll take you through. We have 60 leading local brands, all acting as one organization in the back of house, but customer-facing, still very, very much local. 7,600+ people. Now, we're also the leader in Canada, and our ticker symbol is GMS. When you talk about our end market exposure, very balanced, actually, between residential and commercial. This is our historical, 45, 55. We still talk about that. Recently, with the strength in commercial, it's been almost 50/50, and with commercial kind of in the middle of rolling over and softening a little bit, we just feel like this is, this is more likely. The long-term through the cycle average is 55, 45, residential. Residential's driven primarily by new construction. Commercial, historically, would've been driven more by remodel construction, but with the office space being as soft as it is, really, the shift in commercial is to mega projects, to infrastructure-related, CHIPS-related projects, but also lots of new construction that's, that's supported by all of that type of activity, a little bit less remodel. So we used to say two-thirds remodel. We're probably more like a half remodel and a half new now on the commercial side, and on the residential side, primarily new, and that's single family and multifamily. What does a distributor do? I'm sure most of you know what we do. We provide value to contractors, and we basically, what we're doing, I'll give you an example. You have the wallboard industry, six primary manufacturers in North America, and then there are literally tens of thousands of contractors that need those products, and we're in the middle. And so basically, what we do is we order in truckloads or rail cars, and we bring those into our facilities, and we break them out, and we service hundreds and thousands of orders every single, solitary day. We have a very value-added and complicated delivery. I should have pointed that out on that very first slide. We are not an at-the-curb deliverer. We don't drop at the curb. We operate a fleet of three thousand boom trucks. Our delivery is up, actually, into the buildings. So we will deliver to a single family home. We deliver and scatter throughout the entire home, which includes using a boom to move things through the second or third floor windows. On multifamily projects, we'll go as high as 10 floors and scatter from there. Similar in commercial. Very large commercial, obviously, we need to use the on-site elevators and things like that. But depending on the city that we're in, in some cities, that's a union operation that's necessarily hired out, so we do that. Literally, we'll deliver to the elevator at the floor, and then it'll go up from there. In some, in some cities, we literally handle that all the way up through the entire building, 20, 30, 40 stories high, it doesn't matter, and that's across all of our products, which is part of the value-added service that we provide versus, versus others, which is important when it comes to things like complementary products, so if you look at our mix of complementary products, been a core of our business now for, for many, many years. It's one of the most important strategic points that we have, is to grow that complementary product business. That complementary product business is actually somewhat accretive overall from a margin perspective also. But that delivery that I just mentioned is how we differentiate in a lot of ways, and that is that historically, those specialty products needed to be purchased from specialty houses. Those were oftentimes will-call items for contractors, or at best, a curbside delivery, where we now provide those products literally where that labor shows up. And as you know, when you talk about labor, you're talking about, you know, $100 crew hours, $200 crew hours, and contractors that purchase from us aren't having to spend that money stocking material. They're spending that money installing the material. So it's a key, it's a key advantage when we start talking about things, and I'll give you a little bit more on complementary products in just a minute. Our brand strategy is a bit unique, and that is we've grown this business through acquisition over the years, and while we operate on a single ERP and we operate on a single set of practices and standards, and our data is all consolidated across the business, we purposely choose in the local market to go as the brand that has been there for many, many, many years, the legacy brands in those markets. And again, that's because our contractor base is very local. We have very few national customers. We have a few that are important, Lennar Homes, NVR Homes, but when you start breaking it down much past those big national home builders, this is a very local business. It's still extremely fragmented, and those contractors are family-owned businesses, and the grandfather has handed it off to the father, who's handed it off to the son or to the daughter, and those people know who Cowtown Building Materials is in North Texas. Those people know who Rocky Top Materials are in Tennessee. Those people know who Westside Building Materials are in Los Angeles, and the list goes on and on. Now, we don't continually simply expand our brands. As we make tuck-in acquisitions, we usually consolidate to the brand in the market that makes the most sense. So across North Texas, we used to have three or four brands, now we're all Cowtown. Everybody knew who Cowtown was. That was the horse in the race. So when East Texas and Texarkana were acquired, we brought them into Cowtown, so we don't completely overcomplicate things across the business. But technology these days makes this really easy in that all the back of house is the same, and the forward-facing DBAs can be different, and all we really need to do is maintain you know, Department of Transportation registrations with these brands, but the back of house and the systems and such are all very consolidated, so we can operate in a very productive and profitable way. I talked just a minute ago about what those strategic priorities are. I won't belabor them, but there are four key pillars that we operate under. We never wanna forget about our core. Our core business is our wallboard, our steel business, our steel studs, non-structural steel, and ceilings. We're Armstrong's second largest distributor across the United States, as an example. Those are our three core categories. Our fourth category is complementary products, which I'll talk about here in a minute, and it's our second strategic growth pillar, which is to grow that business. Why is that important? The wallboard business is consolidated, as well as steel and ceilings. There are three key distributors. We have two major customers. Between us, we have between 50% and 60% market share, depending upon the product that we're talking about in that core. Complementary products remains exceptionally fragmented. It's been a great growth avenue for us. We've stated publicly we wanna grow complementary products at twice the rate of the core, and as I mentioned earlier, it's also accretive, it's margin accretive. So the better we are at that business, the more profitable we are overall. And we find that our customer base and other customers that we find as a result of the complementary product business really enjoys the degree of service that we provide versus the traditional will-call model at a specialty shop. Platform expansion's been huge for us. We continue to be an acquirer. We've acquired 50, 60, 70 locations over the course of the last 25 or 30 years. I'll take you through three recent acquisitions. We're very good at it. It's a core competency of ours. It's how we continue to grow the business and a key part of our capital allocation strategy. And then never forgetting to drive improved productivity and profitability. We primarily, excuse me, do that through investment in technology, but also moving best practices across the business. As we acquire other businesses, we can always find those gems of practices that are excellent, and we try to move those across our business as quickly as we can. But we're always driving technology. It's one of the key advantages of being a consolidator versus the smaller players in the market, is the push into newer technology and better technology that the smaller players really struggle to afford. And we can do that across, obviously, scale. And so that has proven to be a big part of our accelerated growth in profitability. When you talk about the Complementary Product business and diversifying and profitably expanding, you can see here on the right the change in the mix over the years. Over the last decade, we've moved from 20% of our business to 30% of our business in complementary products, and we're moving that north, hopefully into the mid 30s here over the course of the next five years or so. The key categories there, tools and fasteners, insulation, EIFS and stucco, and lumber are all four categories that we are very specifically focused on growing. Our lumber business is primarily a Canadian business, and when we talk about lumber as part of this effort, it's mostly in Canada. The Canadian business is a more diversified business across products through our channel historically. So we also have a roofing business in Canada, and we also have residential insulation in Canada, where in the United States, those channels are handled by others. So far, so good in this area, and we've had really nice growth and it's really helped the business from a profitability perspective. Platform expansion, just some recent examples. Kamco, right here in New York City. We had not been in New York City, and so we acquired Kamco in March of 2024, and they're one of the leaders here in town. If you see their big red trucks parked somewhere with that boom running up to the seventh or eighth floor, that's us. So we're excited to be here. Yvon Building Supply in Canada. As I mentioned, we're the leader in Canada, and we have a big focus on continuing to grow in Canada. Canada's actually margin accretive as well, so the more business we can do up there, the better for us. But Yvon is a significant leader in the Greater Toronto Area, and we just recently made that acquisition. And then here, literally last week, we closed on R.S. Elliott. R.S. Elliott is a business in Florida that's 100% in our complementary category. That's something we've been doing as well as our organic effort. We've been acquiring now into that complementary category. So that helps us grow that even faster. Gives us a lot of optionality when we make these investments. R.S. Elliott, as an example, is the leader in stucco in North Florida. We have five locations in South Florida. On an immediate basis, we'll consolidate those organizations, and we really feel like our R.S. Elliott group is gonna really help us in the South Florida with their relationships and their capability to continue to grow that business, and then we'll expand that post. That integration will expand that out across the South and continue to grow our stucco business. But we do that quite often with acquisitions. We target them for their optionality as well as just their local leadership and presence. We still have lots of room to run from a white space perspective. You can see here, really, Central and Northern California is still a big opportunity for us. Western Canada, Eastern Canada, and the provinces, New England, South Florida, and the Mountain West are all still big target areas here in the United States, even though we're already the leader here in the United States. From a locations and a share perspective, we still have plenty of room to run. And again, in complementary products, I would tell you white space is really almost that entire map. We have a pretty nice capital structure here. I'm gonna point out the bottom right, no near-term debt maturities at all. So we're all of our cash flow today is basically going into things like acquisitions and share repurchases. We have about $150 million authorized today in share repurchase. I think we did $50 million or $60 million last quarter. We're pretty disciplined in that. We kinda look at the valuation of the business, and as the valuation dips to levels that we feel are advantageous for us to be buying more of our stock back, we do. And when the valuation is reasonable, we buy a little less, but we're always buying back shares. We always have a plan in place to buy back shares. Our debt strategy is somewhere between one and a half and two and a half times. We try to keep our debt reasonable, particularly in times like this, where you know, you look at cycles and you say, "What could happen over the course of the next year?" You know, we're careful to understand that we don't want to overextend ourselves in a potential recessionary environment. So we like that one and a half to two and a half times. And then our cash flow, generally 60% of our adjusted EBITDA, so we cash flow in a normal environment really well. We actually cash flow in a slowing environment even better, and that makes sense for those of you that study distributors. We pull all the cash out of the balance sheet when things slow down. So really, all of the capital that we have invested in the business, for the most part, is our working capital, and that comes out pretty easily, actually, when things slow down. And there's a track record of growth and profitability. You can see here, so we've grown the business nicely over the years. We've grown the EBITDA and the margin over the years, and we intend to continue to do that as we go forward. And finally, we are the leader in North America with scale and local expertise. So we'd like to bring that scale advantage to that local market and really provide that exceptional service, but also that exceptional value for that contractor. That's what that customer desperately cares about. We have all the products necessary to service the end markets that we focus on. We have a wide and growing breadth of products when it comes to complementary, in particular, a strong balance sheet, as we talked about, and we've been executing successfully for quite a while now, so I spoke quickly to leave at least 10 minutes here for questions, so we'll go to questions. Yeah, I can kick off the Q&A, and if anyone from the audience has a question, just raise your hand, and we'll bring a mic over to you. So JT, you reported earnings last week, and you called out conditions slowing across your end markets in July. Maybe if you could just talk about what you're seeing in each of your end markets and kind of what drove the pacing in July. Sure. So from a slowing perspective, I think most people who follow the construction space realize that multifamily construction has been, you know, growing at an unsustainable pace, really probably for the last two years. Tremendous backlog still in multifamily, out there under construction. It's gonna take another year probably to work through that backlog, but the starts have been 30% behind prior year, and we're starting to see that roll over on a year-over-year basis, and so we're rolling off those peaks, and so for the next year or so, we indicated it's probably going to be softening, and then I would expect mid-2025, probably to start, you know, bottoming, and then moving into 2026, I think we'll see multifamily growth again. Commercial, similar, but to a lesser softening extent, really being supported by, as I mentioned earlier, all the infrastructure money. I'll call it infrastructure money, and when I say that, I don't mean highways and streets and things. But there's three very large specific government acts, federal acts, right, that were passed that put trillions of dollars into the marketplace. Much of it has gone into commercial construction, and it continues, and we expect that to really kind of hold up the commercial marketplace. All of the private interest rate sensitive commercial is what's beginning to soften. It's had a really nice long run, but it's beginning to roll over, and so we expect between those two to have, like, just a gentle slowdown, you know, maybe sequentially as a percent, 2%, a month, kind of sequential slowdown into the bottom. And then I do believe that when rates kick down here a little bit or, or drift down here a little bit, we'll see some of that private, commercial construction kick back in. That's probably a back half of 2025 type of growth, opportunity for us. And then single family, hopefully the opposite. Single family is accelerated. This year, it's been a bit muted, again, because of that interest rate environment. I think everybody expected by now we'd be seeing double-digit gains in single family, starts as we move through the balance of this year, and that's softened. Obviously, the July starts number was pretty bad, but the July sales number was very good, and so I think builders will turn around as these rates come down, and we should see single family really be pretty good into 2025 and 2026, which would mostly to fully offset any declines in the other two end markets for us. Long-winded answer, but there it is. Great. Right here. Quick question on the complementary side. I know a lot of distributors are working on the complementary piece. I guess, maybe you could explain a little bit of why complementary is something new, why you haven't, you know, historically been big in that. Is it a different type of model? Is it just, you know, a lot more manufacturers to deal with? Just kinda explain, you know, why it's been like that and why it's improving. Sure. Historically, we've been in complementary products, but only in those complementary products that were directly related to our core products. So if you think about things like, drywall, fasteners, tape, and mud, that's part of our complementary category. We've always sold those products. But what we haven't sold historically would be things like exterior finishing, the EIFS products, the stucco products. The commercial insulation, as an example, is one that required us to go after a new customer, inside same basic parts of the building that we're already supplying, but a different customer carrying that contract. And you're absolutely correct, that the more you get into complementary products, the more difficult to manage the product. It can explode on you. Your SKU list can explode on you, et cetera, which is why we focused very specifically into those categories that I mentioned, and we've been making acquisitions, so we're acquiring experts who have the relationships with the manufacturers, who also understand the pitfalls in the business and know, you know, what can you make money on, what do you not make money on, and why, what are the structural problems, so that's kind of been our strategy to really go after it, is limit the areas specifically where we're focused on organic growth, and then acquire people that really understand the business outside of what would be traditionally our organic growth products, but does that answer the question? Yeah ... to some degree? Thanks. Going off of that, can you talk about the differential in margins between complementary products and your core wallboard and ceiling? Yeah, I mean, it's a few hundred basis points in gross margin, which again, is why the complexity itself historically, you know, you get paid for some complexity if you can manage the complexity, and that's why we get paid for our service as well, which is a complex degree of service with those boom truck operations. And so Complementary Products is very similar in that regard. So, because of that, there's a couple hundred basis points benefit, which, again, a big reason why it's a strategic pillar to grow. Great. You went through the three recent acquisitions you just did. Can you talk about the M&A pipeline and what you're seeing there? What's your bandwidth to continue at this pace of M&A, and are there any large targets out there for GMS, or are you more targeting kind of smaller bolt-on size deals? I mean, we're always talking to larger players that are left in the marketplace, primarily in our core. Still, for if we're gonna talk about larger players, it'd be in our core. There are complementary opportunities out there, companies that do $200 million, $300 million, $400 million. We like that size, because it's enough scale and you get enough expertise with the people, but it's affordable and keeps us within that debt bandwidth that we're looking for, particularly right now. We have levered the company up 3.8x. Actually, we went to 4.2x when we did the Canadian expansion. I think everybody felt in 2018 the market was gonna stay, stay strong for a while, but, you know, we generated a lot of cash directly after that and continued to generate a lot of cash. So the idea is always get that debt leverage back down, which we did fairly quickly. So I'm not saying we wouldn't. Probably at this time, we're not looking at to do a $1 billion acquisition, mostly tuck-in acquisitions. You know, $200 million, $300 million, $400 million dollar type acquisitions are great. That's our sweet spot. We love that. Love that, and the pipeline's full of those kinds of opportunities. Great. In your core business, wallboard, you've talked about how the industry has structurally changed. I guess, can you elaborate on that? You know, what does that mean for pricing, and how do you see growth in that market? Both the manufacturing side and the distribution side is, has significantly consolidated over the course of, let's say, the last decade. Particularly post-COVID, we've had a lot of consolidation in distribution, and pre-COVID, there was a lot of consolidation in manufacturing, and so today, you really have six key manufacturers that are in the business. Pre the Great Recession, eight to 10, and back into the big housing boom, you had 12, so it was a much less disciplined environment when it comes to manufacturers and understanding what was necessary from a capacity perspective to service the business. Capacity installed today is about 33 billion sq ft nameplate. I think this year, the industry will run $27 billion or north of $27 billion in what would be considered a kind of a muted year in a lot of ways, so still running 80%, 85%, you know, 88% utilization, and so there's very little new capacity planned on the horizon. We've only seen one plant in the last five years, and that took out a lot of old capacity actually at the same time. So that's happening and it's a rational environment around manufacturing. Then in distribution, as I mentioned, roughly 50% of the wallboard business controlled by three key players: ourselves, Foundation Building Materials, and L&W, who's owned by ABC. You know, as you consolidate and you have more power in the marketplace, from a purchasing perspective, you know, we tend to try to be a little more disciplined. It's still exceptionally competitive, as almost every business in the U.S. is, but we do see it being more rational than it used to be. Great. Can you just comment a little bit on, you know, the manufacturers talking about at least for the larger customers who they serve, going direct and how that impacts you guys on the distribution side? Do they cut you out? What ends up happening? Do they still ship through you? What's the setup? Yeah, we're not seeing it in our industry, so we don't see a lot of direct ship from manufacturers that don't include distribution. We coordinate direct ship from time to time on larger projects, but we're generally still handling all the paper, and then we're handling the local service at the job site. Very little direct to customer in the wallboard space, in our particular case. Yeah, absolutely. They actually don't sell direct. We sell it all. 'Cause, you know- They'll just deliver it direct, you know, and so even in our relationships with Lennar, I mean, we have a national manufacturing relationship with Lennar, with Georgia-Pacific, but that relationship with Georgia-Pacific and Lennar is such that if in the local market there's an option that works better from a service and/or cost perspective, Lennar will accept that alternative. So the even in that relationship, there's still a lot of flexibility. All right, and maybe last one from me. Productivity has been a big push at GMS. Can you talk about what you're doing there to drive those improvements and maybe how investments in technology play into that? Sure. From a technology perspective, now we're fully invested in Yard WMS across the entire network. That's unique and interesting. Historically, yards haven't been able to be run as efficiently as a large warehouse could be run. You can imagine that when you're operating on acres of land and you have a lot of steel products, as an example, spread around outside and other exterior products outside, it's more difficult to operate in a WMS type environment. We've now done that across 80% of our volume, so we did it and invested in all of our large yards, where we got the benefit for that. Additionally, we have brought together all of our data over the years, so we have a single dataset capability so that we can use our business intelligence tools. Prior to COVID, you know, we had to operate business intelligence tools in a real fragmented way. Now, we have it all consolidated in a single operation. So all of our FP&A teams can access all the necessary data and provide our decision-makers with real-time, important information that they can use, and that's across, you can imagine, the entire data suite, whether that's operations or sales or pricing, et cetera. So that's been a huge move for us that we've made. And then our e-commerce is pretty significant. We have a fully robust B2B e-commerce capability, so our customers can see and interact with us online for everything they need to do. All of our open account customers everything from seeing the inventory, seeing their price, place the order, manage the order, watch it ship. We see it deliver, we break geofences in our trucks, and we immediately send notifications that the materials are there or on the way, and then we send pictures of everything delivered so that our customers know that it's there for them to go and execute against. So that has been a huge advantage for us, both to be sticky with our customers and help them, but also, of course, internally, that drives a tremendous amount of productivity. All right. That is all the time we have. Thank you, JT, and if you have any questions, they are here all day. All right. Thank you all. Appreciate it. Have a great day.