We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
GMS Inc | NYSE:GMS | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.69 | 1.90% | 90.76 | 92.50 | 89.98 | 90.38 | 411,799 | 22:30:00 |
Volume Growth Across All Four Major Product Categories Drove Record Levels of Full Year Net Sales and Strong Cash Flow
GMS Inc. (NYSE: GMS), a leading North American specialty building products distributor, today reported financial results for the fourth quarter and fiscal year ended April 30, 2024.
Fourth Quarter Fiscal 2024 Highlights
(Comparisons are to the fourth quarter of fiscal 2023 unless otherwise noted)
Full Year Fiscal 2024 Highlights
(Comparisons are to the full year of fiscal 2023, unless otherwise noted)
“We were pleased to deliver solid results for our fourth quarter and full year fiscal 2024, including record levels of net sales for the year,” said John C. Turner, Jr, President and Chief Executive Officer of GMS. “Versus prior year, despite lower single-family full year demand, we delivered volume growth across all our major product categories, which helped offset significant Steel price deflation that occurred at levels beyond our prior expectations. Solid levels of multi-family construction remained in backlog and commercial project activity continued through the end of our fiscal year. Plus, single-family year-over-year Wallboard volume growth for the fourth quarter turned positive for the first time since the fall of 2022. We believe this indicates the start of a mild recovery in an end market that, with considerable pent-up demand, remains poised for a more robust recovery with the expected eventual relief in mortgage rates.”
Turner continued, “As we move into fiscal 2025, we believe we are well prepared for what we expect to be continued changes in end market dynamics, as an improving single-family end market should help to offset declining multi-family, and likely commercial, demand as we move throughout the year. While we now anticipate some near-term headwinds, particularly in Wallboard and Steel margins, we expect to deliver improvement in our second quarter and solid results for the full fiscal year. With the typical 3-to-6 month lag in the realization of Wallboard price increases, we expect to see benefits from the implementation of the previously announced pricing actions later this summer. Also, we anticipate recent Steel manufacturer price increases to improve stabilization in pricing for that product category, which has softened further into our first fiscal quarter of 2025, pressuring both our top line and our profitability for the quarter. Leveraging the benefits of our scale, a wide breadth of product offerings and a balanced mix of end markets served, we expect to successfully navigate these shifts in end market demand and price movement during the year, all while continuing to focus on providing outstanding service and continuing the execution of our strategic priorities.”
Fourth Quarter Fiscal 2024 Results
(Comparisons are to the fourth quarter of fiscal 2023 unless otherwise noted)
Net sales for the fourth quarter of fiscal 2024 of $1.41 billion increased 8.4%, or 6.7% on a same day basis, primarily due to volume growth in each of the Company’s four primary product categories as commercial, single-family and multi-family each showed improvement in demand over the prior year quarter. This was the first quarter of positive year-over-year growth in single-family Wallboard volume since the fall of 2022. Offsetting the volume growth was significant year-over-year Steel price deflation, which reduced net sales by an estimated $29 million for the quarter. Organic net sales increased 4.0% in total or 2.4% on a same day basis.
Fourth quarter year-over-year sales by product category were as follows1:
· Wallboard sales of $586.1 million increased 7.6% (up 6.0% on an organic basis).
· Ceilings sales of $188.9 million increased 21.7% (up 11.4% on an organic basis).
· Steel framing sales of $220.5 million decreased 1.5% (down 5.1% on an organic basis).
· Complementary product sales of $417.6 million increased 9.8% (up 3.5% on an organic basis).
________________________________________
1 For more details on sales by product category, including per day organic sales change due to volume and/or price, mix and foreign exchange, please refer to the tables included at the back of this press release.
Gross profit of $451.2 million increased 6.3%, primarily due to the favorable impact of our recent acquisitions and the improved volumes we delivered during the quarter. Gross margin decreased 60 basis points to 31.9%, primarily due to the impact of continuing Steel price deflation. Gross margin also includes the negative impact of non-cash purchase accounting adjustments of $1.2 million, compared to $0.5 million.
Selling, general and administrative (“SG&A”) expenses were $315.5 million for the quarter, up from $279.8 million primarily related to our recent acquisitions and greenfield yard openings. Also contributing to the higher SG&A expenses were increased labor costs associated with our improved volume levels across all four of our major product categories, coupled with some inflationary pressures in wages and benefits.
SG&A expense as a percentage of net sales increased 80 basis points to 22.3% for the quarter compared to 21.5%. Reduced revenue from price deflation negatively impacted SG&A leverage by an estimated 55 basis points. Increased wages, benefits and other costs resulting mostly from improved volumes as well as some inflationary pressures in those costs, negatively impacted SG&A leverage by an estimated 15 basis points, and approximately 10 basis points of the remaining variance was primarily due to our recent acquisitions and greenfield yard openings. Adjusted SG&A expense as a percentage of net sales of 21.8% increased 90 basis points from 20.9%.
All in, inclusive of a 4.6% increase in interest expense and a 17.1% increase in income tax expense, net income decreased 25.4% to $56.4 million compared to net income of $75.6 million. Net income per diluted share of $1.39 decreased from $1.80 per diluted share. Adjusted net income was $78.1 million, or $1.93 per diluted share, compared to $88.6 million, or $2.11 per diluted share.
Adjusted EBITDA of $146.6 million compared to $154.3 million. Adjusted EBITDA margin of 10.4% decreased 140 basis points compared to 11.8%.
Balance Sheet, Liquidity and Cash Flow
As of April 30, 2024, the Company had cash on hand of $166.1 million, total debt of $1.3 billion and $655.9 million of available liquidity under its revolving credit facilities. Net debt leverage was 1.7 times Adjusted EBITDA as of the end of the quarter, up from 1.4 times Adjusted EBITDA at the end of the fourth quarter of fiscal 2023.
The Company generated cash from operating activities and free cash flow of $204.2 million and $186.7 million, respectively, for the quarter ended April 30, 2024. For the quarter ended April 30, 2023, the Company generated cash from operating activities and free cash flow of $204.8 million and $185.4 million, respectively.
During the quarter, the Company repurchased 174,555 shares of common stock for $16.0 million. As of April 30, 2024, the Company had $200.5 million of share repurchase authorization remaining.
Platform Expansion Activities
During the fourth quarter of fiscal 2024, the Company continued the execution of its platform expansion activities with the closing of its previously announced acquisition of Kamco Supply Corporation, representing a meaningful expansion for GMS into the New York City market.
Subsequent Event - Platform Expansion
On May 16, 2024, GMS announced that it had entered into an agreement to acquire Yvon Building Supply, Inc. and affiliated companies (“Yvon”) for an aggregate purchase price up to CAD$196.5 million. With seven locations across Ontario, Canada, Yvon provides Wallboard, insulation, Steel Framing, Ceilings and other Complementary Products and related services. This transaction is expected to close in July 2024. Also in May 2024, the Company acquired Howard & Sons Building Materials, Inc., a single location distributor of Wallboard, Steel framing and Complementary Products in Pomona, California.
Conference Call and Webcast
GMS will host a conference call and webcast to discuss its results for the fourth quarter and full year fiscal 2024, which ended on April 30, 2024, and other information related to its business at 8:30 a.m. Eastern Time on Thursday, June 20, 2024. Investors who wish to participate in the call should dial 877-407-3982 (domestic) or 201-493-6780 (international) at least 5 minutes prior to the start of the call. The live webcast will be available on the Investors section of the Company’s website at www.gms.com. There will be a slide presentation of the results available on that page of the website as well. Replays of the call will be available through July 20, 2024 and can be accessed at 844-512-2921 (domestic) or 412-317-6671 (international) and entering the pass code 13746741.
About GMS Inc.
Founded in 1971, GMS operates a network of more than 300 distribution centers with extensive product offerings of wallboard, ceilings, steel framing and complementary construction products. In addition, GMS operates over 100 tool sales, rental and service centers, providing a comprehensive selection of building products and solutions for its residential and commercial contractor customer base across the United States and Canada. The Company’s operating model combines the benefits of a national platform and strategy with a local go-to-market focus, enabling GMS to generate significant economies of scale while maintaining high levels of customer service.
Use of Non-GAAP Financial Measures
GMS reports its financial results in accordance with GAAP. However, it presents Adjusted net income, free cash flow, Adjusted SG&A, Adjusted EBITDA, and Adjusted EBITDA margin, which are not recognized financial measures under GAAP. GMS believes that Adjusted net income, free cash flow, Adjusted SG&A, Adjusted EBITDA, and Adjusted EBITDA margin assist investors and analysts in comparing its operating performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company’s management believes Adjusted net income, Adjusted SG&A, free cash flow, Adjusted EBITDA and Adjusted EBITDA margin are helpful in highlighting trends in its operating results, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which the Company operates and capital investments. In addition, the Company utilizes Adjusted EBITDA in certain calculations in its debt agreements.
You are encouraged to evaluate each adjustment and the reasons GMS considers it appropriate for supplemental analysis. In addition, in evaluating Adjusted net income, Adjusted SG&A and Adjusted EBITDA, you should be aware that in the future, the Company may incur expenses similar to the adjustments in the presentation of Adjusted net income, Adjusted SG&A and Adjusted EBITDA. The Company’s presentation of Adjusted net income, Adjusted SG&A, Adjusted SG&A margin, Adjusted EBITDA, and Adjusted EBITDA margin should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. In addition, Adjusted net income, free cash flow, Adjusted SG&A and Adjusted EBITDA may not be comparable to similarly titled measures used by other companies in GMS’s industry or across different industries. Please see the tables at the end of this release for a reconciliation of Adjusted EBITDA, free cash flow, Adjusted SG&A and Adjusted net income to the most directly comparable GAAP financial measures.
When calculating organic net sales growth, the Company excludes from the calculation (i) net sales of acquired businesses until the first anniversary of the acquisition date, and (ii) the impact of foreign currency translation.
Forward-Looking Statements and Information
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify forward-looking statements by the Company’s use of forward-looking terminology such as “anticipate,” “believe,” “confident,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” or “should,” or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the markets in which GMS operates, including in particular residential and commercial construction, and the economy generally, including interest rates, pricing including, by not limited to, the ability to implement and maintain manufacturers’ price increases, commodities pricing, the demand for the Company’s products, the Company’s strategic priorities and the results thereof, service levels and the ability to drive value and results contained in this press release may be considered forward-looking statements. In addition, forward looking statements may include statements regarding the Company’s expectations concerning management’s plans for execution of a stock repurchase program, including the maximum amount, manner and duration of the purchase of the Company’s common stock under its authorized stock repurchase program. The Company has based forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond its control, including economic issues, geopolitical issues, and future public health issues, that may affect the Company’s business. Forward-looking statements involve risks and uncertainties, including, but not limited to, those described in the “Risk Factors” section in the Company’s most recent Annual Report on Form 10-K, and in its other periodic reports filed with the SEC. In addition, the statements in this release are made as of June 20, 2024. The Company undertakes no obligation to update any of the forward-looking statements made herein, whether as a result of new information, future events, changes in expectation or otherwise. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to June 20, 2024.
GMS Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
Three Months Ended
Year Ended
April 30,
April 30,
2024
2023
2024
2023
Net sales
$
1,413,029
$
1,304,102
$
5,501,907
$
5,329,252
Cost of sales (exclusive of depreciation and amortization shown separately below)
961,831
879,626
3,726,806
3,603,307
Gross profit
451,198
424,476
1,775,101
1,725,945
Operating expenses:
Selling, general and administrative
315,518
279,764
1,198,899
1,093,827
Depreciation and amortization
35,603
30,822
133,362
126,907
Total operating expenses
351,121
310,586
1,332,261
1,220,734
Operating income
100,077
113,890
442,840
505,211
Other (expense) income:
Interest expense
(19,021
)
(18,184
)
(75,461
)
(65,843
)
Write-off of debt discount and deferred financing fees
(674
)
—
(2,075
)
—
Other income, net
2,685
2,677
8,862
8,135
Total other expense, net
(17,010
)
(15,507
)
(68,674
)
(57,708
)
Income before taxes
83,067
98,383
374,166
447,503
Provision for income taxes
26,680
22,790
98,087
114,512
Net income
$
56,387
$
75,593
$
276,079
$
332,991
Weighted average common shares outstanding:
Basic
39,830
41,239
40,229
41,904
Diluted
40,539
41,913
40,906
42,592
Net income per common share:
Basic
$
1.42
$
1.83
$
6.86
$
7.95
Diluted
$
1.39
$
1.80
$
6.75
$
7.82
GMS Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except per share data)
April 30, 2024
April 30, 2023
Assets
Current assets:
Cash and cash equivalents
$
166,148
$
164,745
Trade accounts and notes receivable, net of allowances of $16,930 and $13,636, respectively
849,993
792,232
Inventories, net
580,830
575,495
Prepaid expenses and other current assets
42,352
17,051
Total current assets
1,639,323
1,549,523
Property and equipment, net of accumulated depreciation of $309,850 and $264,650, respectively
472,257
396,419
Operating lease right-of-use assets
251,207
189,351
Goodwill
853,767
700,813
Intangible assets, net
502,688
399,660
Deferred income taxes
21,890
19,839
Other assets
18,708
11,403
Total assets
$
3,759,840
$
3,267,008
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
420,237
$
377,003
Accrued compensation and employee benefits
125,610
119,887
Other accrued expenses and current liabilities
111,204
107,675
Current portion of long-term debt
50,849
54,035
Current portion of operating lease liabilities
49,150
47,681
Total current liabilities
757,050
706,281
Non-current liabilities:
Long-term debt, less current portion
1,229,726
1,044,642
Long-term operating lease liabilities
204,865
141,786
Deferred income taxes, net
62,698
51,223
Other liabilities
44,980
48,319
Total liabilities
2,299,319
1,992,251
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01 per share, 500,000 shares authorized; 39,754 and 40,971 shares issued and outstanding as of April 30, 2024 and 2023, respectively
397
410
Preferred stock, par value $0.01 per share, 50,000 shares authorized; 0 shares issued and outstanding as of April 30, 2024 and 2023
—
—
Additional paid-in capital
334,596
428,508
Retained earnings
1,157,047
880,968
Accumulated other comprehensive loss
(31,519
)
(35,129
)
Total stockholders' equity
1,460,521
1,274,757
Total liabilities and stockholders' equity
$
3,759,840
$
3,267,008
GMS Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Year Ended April 30,
2024
2023
Cash flows from operating activities:
Net income
$
276,079
$
332,991
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
133,362
126,907
Write-off and amortization of debt discount and debt issuance costs
4,704
1,468
Equity-based compensation
22,436
22,098
Gain on disposal of assets
(729
)
(1,413
)
Deferred income taxes
3,685
220
Other items, net
8,766
13,270
Changes in assets and liabilities net of effects of acquisitions:
Trade accounts and notes receivable
(26,573
)
(37,024
)
Inventories
17,067
(16,802
)
Prepaid expenses and other assets
(18,652
)
1,367
Accounts payable
22,147
6,665
Accrued compensation and employee benefits
5,795
11,754
Other accrued expenses and liabilities
(14,838
)
(19,764
)
Cash provided by operating activities
433,249
441,737
Cash flows from investing activities:
Purchases of property and equipment
(57,247
)
(52,672
)
Proceeds from sale of assets
2,668
2,879
Acquisition of businesses, net of cash acquired
(376,192
)
(61,677
)
Cash used in investing activities
(430,771
)
(111,470
)
Cash flows from financing activities:
Repayments on revolving credit facility
(605,409
)
(647,247
)
Borrowings from revolving credit facility
765,373
546,113
Payments of principal on long-term debt
(2,500
)
(5,110
)
Payments of principal on finance lease obligations
(41,786
)
(35,845
)
Borrowings from term loan amendments
390,574
—
Repayments of term loan amendments
(390,076
)
—
Repurchases of common stock
(116,439
)
(110,776
)
Payment of acquisition holdback liability
—
(13,500
)
Debt issuance costs
(7,070
)
(3,157
)
Proceeds from exercises of stock options
6,336
4,715
Payments for taxes related to net share settlement of equity awards
(4,026
)
(4,005
)
Proceeds from issuance of stock pursuant to employee stock purchase plan
4,586
3,203
Cash used in financing activities
(437
)
(265,609
)
Effect of exchange rates on cash and cash equivalents
(638
)
(1,829
)
Increase in cash and cash equivalents
1,403
62,829
Cash and cash equivalents, beginning of year
164,745
101,916
Cash and cash equivalents, end of year
$
166,148
$
164,745
Supplemental cash flow disclosures:
Cash paid for income taxes
$
120,352
$
110,366
Cash paid for interest
70,798
61,752
GMS Inc.
Net Sales by Product Group (Unaudited)
(dollars in thousands)
Three Months Ended
Year Ended
April 30, 2024
% of Total
April 30, 2023
% of Total
April 30, 2024
% of Total
April 30, 2023
% of Total
Wallboard
$
586,052
41.5
%
$
544,684
41.8
%
$
2,263,337
41.1
%
$
2,151,505
40.4
%
Ceilings
188,873
13.4
%
155,135
11.9
%
695,151
12.6
%
628,821
11.8
%
Steel framing
220,499
15.6
%
223,810
17.2
%
892,730
16.2
%
1,011,309
19.0
%
Complementary products
417,605
29.5
%
380,473
29.1
%
1,650,689
29.9
%
1,537,617
28.9
%
Total net sales
$
1,413,029
$
1,304,102
$
5,501,907
$
5,329,252
GMS Inc.
Net Sales and Organic Sales by Product Group (Unaudited)
(dollars in millions)
Net Sales
Organic Sales
Three Months Ended April 30,
Three Months Ended April 30,
2024
2023
Change
2024
2023
Change
Wallboard
$
586.0
$
544.7
7.6
%
$
577.4
$
544.7
6.0
%
Ceilings
188.9
155.1
21.7
%
172.8
155.1
11.4
%
Steel framing
220.5
223.8
(1.5
)%
212.4
223.8
(5.1
)%
Complementary products
417.6
380.5
9.8
%
393.7
380.5
3.5
%
Total net sales
$
1,413.0
$
1,304.1
8.4
%
$
1,356.3
$
1,304.1
4.0
%
Net Sales
Organic Sales
Year Ended April 30,
Year Ended April 30,
2024
2023
Change
2024
2023
Change
Wallboard
$
2,263.3
$
2,151.5
5.2
%
$
2,248.1
$
2,151.5
4.5
%
Ceilings
695.2
628.8
10.6
%
667.4
628.8
6.1
%
Steel framing
892.7
1,011.3
(11.7
)%
877.6
1,011.3
(13.2
)%
Complementary products
1,650.7
1,537.6
7.4
%
1,554.0
1,537.6
1.1
%
Total net sales
$
5,501.9
$
5,329.2
3.2
%
$
5,347.1
$
5,329.2
0.3
%
GMS Inc.
Per Day Net Sales and Per Day Organic Sales by Product Group (Unaudited)
(dollars in millions)
Per Day Net Sales
Per Day Organic Sales
Three Months Ended April 30,
Three Months Ended April 30,
2024
2023
Change
2024
2023
Change
Wallboard
$
9.2
$
8.6
5.9
%
$
9.0
$
8.6
4.3
%
Ceilings
3.0
2.5
19.8
%
2.7
2.5
9.7
%
Steel framing
3.4
3.6
(3.0
)%
3.3
3.6
(6.6
)%
Complementary products
6.5
6.0
8.0
%
6.2
6.0
1.9
%
Total net sales
$
22.1
$
20.7
6.7
%
$
21.2
$
20.7
2.4
%
Per Day Net Sales
Per Day Organic Sales
Year Ended April 30,
Year Ended April 30,
2024
2023
Change
2024
2023
Change
Wallboard
$
8.9
$
8.5
4.4
%
$
8.8
$
8.5
3.7
%
Ceilings
2.7
2.5
9.7
%
2.6
2.5
5.3
%
Steel framing
3.5
4.0
(12.4
)%
3.4
4.0
(13.9
)%
Complementary products
6.5
6.1
6.5
%
6.1
6.1
0.3
%
Total net sales
$
21.6
$
21.1
2.4
%
$
20.9
$
21.1
(0.5
)%
Per Day Organic Growth(a)
Per Day Organic Growth(a)
Three Months Ended April 30, 2024
Year Ended April 30, 2024
Volume
Price/Mix/Fx
Volume
Price/Mix/Fx
Wallboard
6.3
%
(1.9
)%
2.0
%
1.7
%
Ceilings
5.5
%
4.2
%
3.5
%
1.8
%
Steel framing
6.9
%
(13.5
)%
10.8
%
(24.7
)%
________________________________________
(a)
Given the wide breadth of offerings and units of measure in Complementary Products, detailed price vs volume reporting is not available at a consolidated level.
GMS Inc.
Reconciliation of Net Income to Adjusted EBITDA (Unaudited)
(in thousands)
Three Months Ended
Year Ended
April 30,
April 30,
2024
2023
2024
2023
Net income
$
56,387
$
75,593
$
276,079
$
332,991
Interest expense
19,021
18,184
75,461
65,843
Write-off of debt discount and deferred financing fees
674
—
2,075
—
Interest income
(610
)
(897
)
(1,754
)
(1,287
)
Provision for income taxes
26,680
22,790
98,087
114,512
Depreciation expense
18,640
15,964
69,206
61,177
Amortization expense
16,963
14,858
64,156
65,730
EBITDA
$
137,755
$
146,492
$
583,310
$
638,966
Stock appreciation expense(a)
1,983
1,815
5,391
7,703
Redeemable noncontrolling interests(b)
302
(25
)
1,427
1,178
Equity-based compensation(c)
3,644
3,019
15,618
13,217
Severance and other permitted costs(d)
307
2,372
2,628
2,788
Transaction costs (acquisitions and other)(e)
1,483
807
4,856
1,961
Gain on disposal of assets(f)
(66
)
(799
)
(729
)
(1,413
)
Effects of fair value adjustments to inventory(g)
1,183
487
1,633
1,123
Debt transaction costs(h)
(13
)
173
1,320
173
EBITDA adjustments
8,823
7,849
32,144
26,730
Adjusted EBITDA
$
146,578
$
154,341
$
615,454
$
665,696
Net sales
$
1,413,029
$
1,304,102
$
5,501,907
$
5,329,252
Adjusted EBITDA Margin
10.4
%
11.8
%
11.2
%
12.5
%
___________________________________
(a)Represents changes in the fair value of stock appreciation rights.
(b)Represents changes in the fair values of noncontrolling interests and deferred compensation agreements.
(c)
Represents non-cash equity-based compensation expense related to the issuance of share-based awards.
(d)
Represents severance expenses and other costs permitted in the calculation of Adjusted EBITDA under the ABL Facility and the Term Loan Facility.
(e)
Represents costs related to acquisitions paid to third parties.
(f)
Includes gains and losses from the sale and disposal of assets.
(g)
Represents the non-cash cost of sales impact of acquisition accounting adjustments to increase inventory to its estimated fair value.
(h)
Represents costs paid to third-party advisors related to debt refinancing activities.
GMS Inc.
Reconciliation of Cash Provided By Operating Activities to Free Cash Flow (Unaudited)
(in thousands)
Three Months Ended
Year Ended
April 30,
April 30,
2024
2023
2024
2023
Cash provided by operating activities
$
204,223
$
204,810
$
433,249
$
441,737
Purchases of property and equipment
(17,519
)
(19,422
)
(57,247
)
(52,672
)
Free cash flow (a)
$
186,704
$
185,388
$
376,002
$
389,065
________________________________________
(a)
Free cash flow is a non-GAAP financial measure that we define as net cash provided by (used in) operations less capital expenditures.
GMS Inc.
Reconciliation of Selling, General and Administrative Expense to Adjusted SG&A (Unaudited)
(in thousands)
Three Months Ended
Year Ended
April 30,
April 30,
2024
2023
2024
2023
Selling, general and administrative expense
$
315,518
$
279,764
$
1,198,899
$
1,093,827
Adjustments
Stock appreciation expense(a)
(1,983
)
(1,815
)
(5,391
)
(7,703
)
Redeemable noncontrolling interests(b)
(302
)
25
(1,427
)
(1,178
)
Equity-based compensation(c)
(3,644
)
(3,019
)
(15,618
)
(13,217
)
Severance and other permitted costs(d)
(307
)
(2,384
)
(2,628
)
(2,875
)
Transaction costs (acquisitions and other)(e)
(1,483
)
(807
)
(4,856
)
(1,961
)
Gain on disposal of assets(f)
66
799
729
1,413
Debt transaction costs(g)
13
(173
)
(1,320
)
(173
)
Adjusted SG&A
$
307,878
$
272,390
$
1,168,388
$
1,068,133
Net sales
$
1,413,029
$
1,304,102
$
5,501,907
$
5,329,252
Adjusted SG&A margin
21.8
%
20.9
%
21.2
%
20.0
%
___________________________________
(a)Represents changes in the fair value of stock appreciation rights.
(b)Represents changes in the fair values of noncontrolling interests and deferred compensation agreements.
(c)Represents non-cash equity-based compensation expense related to the issuance of share-based awards.
(d)Represents severance expenses and other costs permitted in the calculation of Adjusted EBITDA under the ABL Facility and the Term Loan Facility.
(e)Represents costs related to acquisitions paid to third parties.
(f)Includes gains and losses from the sale and disposal of assets.
(g)Represents costs paid to third-party advisors related to debt refinancing activities.
GMS Inc.
Reconciliation of Income Before Taxes to Adjusted Net Income (Unaudited)
(in thousands, except per share data)
Three Months Ended
Year Ended
April 30,
April 30,
2024
2023
2024
2023
Income before taxes
$
83,067
$
98,383
$
374,166
$
447,503
EBITDA adjustments
8,823
7,849
32,144
26,730
Write-off of discount and deferred financing fees
674
—
2,075
—
Acquisition accounting depreciation and amortization (1)
12,243
11,111
44,377
49,931
Adjusted pre-tax income
104,807
117,343
452,762
524,164
Adjusted income tax expense
26,726
28,749
115,454
128,420
Adjusted net income
$
78,081
$
88,594
$
337,308
$
395,744
Effective tax rate (2)
25.5
%
24.5
%
25.5
%
24.5
%
Weighted average shares outstanding:
Basic
39,830
41,239
40,229
41,904
Diluted
40,539
41,913
40,906
42,592
Adjusted net income per share:
Basic
$
1.96
$
2.15
$
8.38
$
9.44
Diluted
$
1.93
$
2.11
$
8.25
$
9.29
________________________________________
(1)Depreciation and amortization from the increase in value of certain long-term assets associated with the April 1, 2014 acquisition of the predecessor company and amortization of intangible assets from the acquisitions of Titan, Westside Building Materials, Ames Taping Tools and Kamco Supply Corporation.
(2)
Normalized cash tax rate excluding the impact of acquisition accounting and certain other deferred tax amounts.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240620433554/en/
Investors: Carey Phelps ir@gms.com 770-723-3369
1 Year GMS Chart |
1 Month GMS Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions