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GMS Reports Second Quarter Fiscal 2022 Results

12/02/2021

Net Sales of $1.15 Billion with Record Levels of Net Income and Adjusted EBITDA

TUCKER, Ga.--(BUSINESS WIRE)-- GMS Inc. (NYSE: GMS), a leading North American specialty distributor of interior building products, today reported financial results for the fiscal second quarter ended October 31, 2021.

Second Quarter Fiscal 2022 Highlights

(Comparisons are to the second quarter of fiscal 2021)

  • Net sales of $1,150.6 million increased 41.5%; organic net sales increased 31.2%.
  • Net income of $74.4 million, or $1.69 per diluted share; adjusted net income of $87.8 million, or $2.00 per diluted share.
  • Gross margin of 32.3%, down 30 basis points from the prior year.
  • SG&A and Adjusted SG&A as a percentage of sales were 20.0% and 19.4%, respectively, representing 320 basis points of improvement for SG&A and 310 basis points of improvement for Adjusted SG&A.
  • Adjusted EBITDA of $149.5 million increased 81.2%; Adjusted EBITDA margin improved 280 basis points to 13.0% from 10.2%.
  • Net debt leverage was 2.4 times as of the end of the second quarter of fiscal 2022, down from 3.0 times a year ago.

“I am pleased to report another very strong quarter for GMS,” said John C. Turner, Jr., President and Chief Executive Officer. “Net sales again topped a billion dollars with record levels of net income and Adjusted EBITDA. Supply chain dynamics have led to all-time high levels of product inflation, which have been the principal driver of both sales growth and incremental profitability. That said, our relentless focus on customer service and the solid execution of our strategic priorities have enabled us to capture the benefits of both this heightened product inflation across our portfolio as well as continued strength in the residential market.”

Turner continued, “While commercial activity remains well below pre-COVID levels, we were pleased to see certain commercial projects that were previously on hold receive approvals to move forward. With other positive signs also emerging, we believe that we are very well positioned as we head into the next calendar year to benefit from an eventual commercial construction recovery.”

Second Quarter Fiscal 2022 Results

Net sales for the second quarter of fiscal 2022 of $1.15 billion increased 41.5% as compared with the prior year quarter, primarily due to inflationary pricing, healthy residential end markets, strong performance from our complementary products and the acquisitions of D.L. Building Materials and Westside Building Material. Organic net sales increased 31.2%.

Year-over-year sales increases by product category were as follows:

· Wallboard sales of $414.5 million increased 25.4% (up 19.7% on an organic basis).

· Ceilings sales of $140.9 million increased 25.6% (up 17.4% on an organic basis).

· Steel framing sales of $272.0 million increased 144.4% (up 122.2% on an organic basis).

· Complementary product sales of $323.2 million increased 24.8% (up 12.6% on an organic basis).

Gross profit of $371.9 million increased 40.3% compared to the second quarter of fiscal 2021. Gross margin of 32.3%, while above expectations, declined 30 basis points year-over-year primarily due to continued price-cost dynamics principally related to the timing of the implementation of price actions in wallboard.

Selling, general and administrative (“SG&A”) expense as a percentage of net sales improved 320 basis points to 20.0% for the quarter compared to 23.2% in the second quarter of fiscal 2021. Adjusted SG&A expense as a percentage of net sales of 19.4% improved 310 basis points from 22.5% in the prior year quarter as product inflation outpaced increases in operating costs.

Net income increased 161.2% to $74.4 million, or $1.69 per diluted share, compared to net income of $28.5 million, or $0.66 per diluted share, in the second quarter of fiscal 2021. Adjusted net income was $87.8 million, or $2.00 per diluted share, compared to $40.2 million, or $0.93 per diluted share, in the second quarter of the prior fiscal year.

Adjusted EBITDA increased 81.2% to $149.5 million compared to the prior year quarter. Adjusted EBITDA margin of 13.0% improved 280 basis points from 10.2% for the second quarter of fiscal 2021.

Balance Sheet, Liquidity and Cash Flow

As of October 31, 2021, the Company had cash on hand of $59.3 million, total debt of $1.1 billion and $302.2 million of available liquidity under its revolving credit facilities. Net debt leverage was 2.4 times as of the end of the quarter, down from 3.0 times at the end of the second quarter of fiscal 2021.

The Company recorded a use of cash from operating activities and free cash flow of $2.0 million and $11.3 million, respectively, for the quarter ended October 31, 2021. This compared to cash provided by operating activities and free cash flow of $39.8 million and $32.7 million, respectively, in the second quarter of the prior fiscal year.

Platform Expansion Activities

During the second quarter of fiscal 2022, the Company acquired the EIFS division of DK&B Construction Specialties, Inc. (“DK&B”). DK&B is a leading EIFS/stucco distributor serving the Nebraska market through a single location in Omaha, NE. This transaction enabled GMS to expand its complementary product offerings and expertise throughout the region.

Also, during the period, the Company opened a new greenfield location in Johnson City, TN, expanding its coverage to provide enhanced customer service in the Tri-Cities area in Northeast Tennessee.

Subsequent to the end of the quarter, on December 1, 2021, GMS completed the acquisition of AMES Taping Tools Holding LLC (“AMES”.) With more than 85 company-owned stores, a fleet of 100,000 tools available for rent and the most highly respected brand of automatic taping and finishing (“ATF”) tools, AMES is the leading provider of ATF tools and related products in the professional drywall finishing industry. AMES provides a distinctive complement to GMS’s current offerings, significantly expanding the Company’s presence in the tools and fasteners market. AMES’s portfolio includes the finishing tool brand, TapeTech® and specialty interior finishing e-commerce platform, All-Wall®.

Conference Call and Webcast

GMS will host a conference call and webcast to discuss its results for the second quarter of fiscal 2022 ended October 31, 2021 and other information related to its business at 8:30 a.m. Eastern Time on Thursday, December 2, 2021. 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 January 2, 2022 and can be accessed at 844-512-2921 (domestic) or 412-317-6671 (international) and entering the pass code 13723764.

About GMS Inc.

Celebrating the 50th anniversary of its founding in 1971, GMS operates a network of more than 280 distribution centers across the United States and Canada. GMS’s extensive product offering of wallboard, suspended ceilings, steel framing and complementary construction products is designed to provide a comprehensive one-stop-shop for our core customer, the interior contractor who installs these products in commercial and residential buildings. In addition, through its newly acquired AMES Taping Tools business, GMS operates more than 85 retail locations servicing professionals in the interior finishing market.

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, the pricing, demand for complementary products, and the timing and benefits of the AMES proposed transaction contained in this press release may be considered forward-looking statements. 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 current 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 December 2, 2021. 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 December 2, 2021.

GMS Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

 

Three Months Ended

 

Six Months Ended

 

October 31,

 

October 31,

2021

 

2020

 

2021

 

2020

Net sales

$

1,150,551

 

 

$

812,856

 

 

$

2,192,627

 

 

$

1,615,429

 

Cost of sales (exclusive of depreciation and amortization shown separately below)

778,681

 

 

547,785

 

 

1,484,924

 

 

1,089,900

 

Gross profit

371,870

 

 

265,071

 

 

707,703

 

 

525,529

 

Operating expenses:

 

 

 

 

 

 

 

Selling, general and administrative

230,531

 

 

188,352

 

 

444,612

 

 

371,464

 

Depreciation and amortization

29,403

 

 

27,245

 

 

57,117

 

 

54,342

 

Total operating expenses

259,934

 

 

215,597

 

 

501,729

 

 

425,806

 

Operating income

111,936

 

 

49,474

 

 

205,974

 

 

99,723

 

Other (expense) income:

 

 

 

 

 

 

 

Interest expense

(14,744)

 

 

(13,525)

 

 

(28,401)

 

 

(27,606)

 

Other income, net

938

 

 

797

 

 

1,730

 

 

1,452

 

Total other expense, net

(13,806)

 

 

(12,728)

 

 

(26,671)

 

 

(26,154)

 

Income before taxes

98,130

 

 

36,746

 

 

179,303

 

 

73,569

 

Provision for income taxes

23,769

 

 

8,277

 

 

43,740

 

 

17,881

 

Net income

$

74,361

 

 

$

28,469

 

 

$

135,563

 

 

$

55,688

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

43,135

 

 

42,723

 

 

43,112

 

 

42,674

 

Diluted

43,894

 

 

43,174

 

 

43,933

 

 

43,096

 

Net income per common share:

 

 

 

 

 

 

 

Basic

$

1.72

 

 

$

0.67

 

 

$

3.14

 

 

$

1.30

 

Diluted

$

1.69

 

 

$

0.66

 

 

$

3.09

 

 

$

1.29

 

GMS Inc.

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except per share data)

 

October 31,
2021

 

April 30,
2021

Assets

Current assets:

 

 

Cash and cash equivalents

$

59,310

 

 

$

167,012

 

Trade accounts and notes receivable, net of allowances of $7,374 and $6,282, respectively

732,272

 

 

558,661

 

Inventories, net

552,180

 

 

357,054

 

Prepaid expenses and other current assets

21,331

 

 

19,525

 

Total current assets

1,365,093

 

 

1,102,252

 

Property and equipment, net of accumulated depreciation of $211,543 and $193,364, respectively

326,490

 

 

311,326

 

Operating lease right-of-use assets

133,052

 

 

118,413

 

Goodwill

589,561

 

 

576,330

 

Intangible assets, net

382,332

 

 

350,869

 

Deferred income taxes

19,206

 

 

15,715

 

Other assets

9,249

 

 

8,993

 

Total assets

$

2,824,983

 

 

$

2,483,898

 

Liabilities and Stockholders’ Equity

Current liabilities:

 

 

 

Accounts payable

$

351,226

 

 

$

322,965

 

Accrued compensation and employee benefits

69,298

 

 

72,906

 

Other accrued expenses and current liabilities

133,795

 

 

87,138

 

Current portion of long-term debt

46,082

 

 

46,018

 

Current portion of operating lease liabilities

36,174

 

 

33,474

 

Total current liabilities

636,575

 

 

562,501

 

Non-current liabilities:

 

 

 

Long-term debt, less current portion

1,062,291

 

 

932,409

 

Long-term operating lease liabilities

97,341

 

 

90,290

 

Deferred income taxes, net

17,184

 

 

12,728

 

Other liabilities

60,241

 

 

63,508

 

Total liabilities

1,873,632

 

 

1,661,436

 

Commitments and contingencies

 

 

 

Stockholders' equity:

 

 

 

Common stock, par value $0.01 per share, 500,000 shares authorized; 43,052

and 43,073 shares issued and outstanding as of October 31, 2021 and April 30, 2021, respectively

431

 

 

431

 

Preferred stock, par value $0.01 per share, 50,000 shares authorized; 0 shares issued and outstanding as of October 31, 2021 and April 30, 2021

 

 

 

Additional paid-in capital

534,931

 

 

542,737

 

Retained earnings

410,098

 

 

274,535

 

Accumulated other comprehensive income

5,891

 

 

4,759

 

Total stockholders' equity

951,351

 

 

822,462

 

Total liabilities and stockholders' equity

$

2,824,983

 

 

$

2,483,898

 

GMS Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

 

Six Months Ended

October 31,

2021

 

2020

Cash flows from operating activities:

 

 

Net income

$

135,563

 

 

$

55,688

 

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

 

Depreciation and amortization

57,117

 

 

54,342

 

Amortization of debt discount and debt issuance costs

1,392

 

 

1,505

 

Equity-based compensation

7,951

 

 

6,370

 

(Gain) loss on disposal and impairment of assets

(222)

 

 

875

 

Deferred income taxes

(718)

 

 

(9,296)

 

Other items, net

1,682

 

 

(1,057)

 

Changes in assets and liabilities net of effects of acquisitions:

 

Trade accounts and notes receivable

(147,359)

 

 

(57,106)

 

Inventories

(168,519)

 

 

(950)

 

Prepaid expenses and other assets

(216)

 

 

(4,776)

 

Accounts payable

16,608

 

 

(19,898)

 

Accrued compensation and employee benefits

(3,561)

 

 

(23,889)

 

Other accrued expenses and liabilities

23,187

 

 

22,240

 

Cash (used in) provided by operating activities

(77,095)

 

 

24,048

 

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

(16,119)

 

 

(11,845)

 

Proceeds from sale of assets

466

 

 

720

 

Acquisition of businesses, net of cash acquired

(124,976)

 

 

(51)

 

Cash used in investing activities

(140,629)

 

 

(11,176)

 

Cash flows from financing activities:

 

 

 

Repayments on revolving credit facilities

(442,442)

 

 

(102,189)

 

Borrowings from revolving credit facilities

583,233

 

 

14,750

 

Payments of principal on long-term debt

(2,555)

 

 

(4,984)

 

Payments of principal on finance lease obligations

(15,154)

 

 

(14,629)

 

Repurchases of common stock

(13,124)

 

 

(1,222)

 

Proceeds from exercises of stock options

1,840

 

 

863

 

Payments for taxes related to net share settlement of equity awards

(2,835)

 

 

(754)

 

Proceeds from issuance of stock pursuant to employee stock purchase plan

1,140

 

 

1,270

 

Cash provided by (used in) financing activities

110,103

 

 

(106,895)

 

Effect of exchange rates on cash and cash equivalents

(81)

 

 

1,282

 

Decrease in cash and cash equivalents

(107,702)

 

 

(92,741)

 

Cash and cash equivalents, beginning of period

167,012

 

 

210,909

 

Cash and cash equivalents, end of period

$

59,310

 

 

$

118,168

 

Supplemental cash flow disclosures:

 

 

 

Cash paid for income taxes

$

37,784

 

 

$

20,224

 

Cash paid for interest

17,596

 

 

25,726

 

GMS Inc.

Net Sales by Product Group (Unaudited)

(dollars in thousands)

 

Three Months Ended

 

Six Months Ended

October 31,
2021

 

% of
Total

 

October 31,
2020

 

% of
Total

 

October 31,
2021

 

% of
Total

 

October 31,
2020

 

% of
Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wallboard

$

414,522

 

 

36.0%

 

$

330,515

 

 

40.7%

 

$

804,657

 

 

36.7%

 

$

658,600

 

 

40.8%

Ceilings

140,866

 

 

12.2%

 

112,126

 

 

13.8%

 

278,937

 

 

12.7%

 

226,769

 

 

14.0%

Steel framing

272,000

 

 

23.6%

 

111,293

 

 

13.7%

 

468,276

 

 

21.4%

 

221,825

 

 

13.7%

Complementary products

323,163

 

 

28.2%

 

258,922

 

 

31.8%

 

640,757

 

 

29.2%

 

508,235

 

 

31.5%

Total net sales

$

1,150,551

 

 

 

 

$

812,856

 

 

 

 

$

2,192,627

 

 

 

 

$

1,615,429

 

 

 

GMS Inc.

Reconciliation of Net Income to Adjusted EBITDA (Unaudited)

(in thousands)

 

Three Months Ended

 

Six Months Ended

October 31,

 

October 31,

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Net income

$

74,361

 

 

$

28,469

 

 

$

135,563

 

 

$

55,688

 

Interest expense

14,744

 

 

13,525

 

 

28,401

 

 

27,606

 

Interest income

(27)

 

 

(14)

 

 

(27)

 

 

(51)

 

Provision for income taxes

23,769

 

 

8,277

 

 

43,740

 

 

17,881

 

Depreciation expense

13,703

 

 

12,710

 

 

26,628

 

 

25,537

 

Amortization expense

15,700

 

 

14,535

 

 

30,489

 

 

28,805

 

EBITDA

$

142,250

 

 

$

77,502

 

 

$

264,794

 

 

$

155,466

 

Stock appreciation expense(a)

983

 

 

314

 

 

1,875

 

 

1,106

 

Redeemable noncontrolling interests(b)

593

 

 

186

 

 

903

 

 

438

 

Equity-based compensation(c)

3,215

 

 

3,252

 

 

5,173

 

 

4,857

 

Severance and other permitted costs(d)

249

 

 

762

 

 

396

 

 

2,709

 

Transaction costs (acquisitions and other)(e)

2,393

 

 

25

 

 

2,968

 

 

125

 

(Gain) loss on disposal and impairment of assets(f)

(144)

 

 

481

 

 

(222)

 

 

875

 

Effects of fair value adjustments to inventory(g)

 

 

 

 

1,731

 

 

 

EBITDA addbacks

7,289

 

 

5,020

 

 

12,824

 

 

10,110

 

Adjusted EBITDA

$

149,539

 

 

$

82,522

 

 

$

277,618

 

 

$

165,576

 

 

 

 

 

 

 

 

Net sales

$

1,150,551

 

 

$

812,856

 

 

$

2,192,627

 

 

$

1,615,429

 

Adjusted EBITDA Margin

13.0

%

 

10.2

%

 

12.7

%

 

10.2

%

___________________________________

(a)

Represents changes in the fair value of stock appreciation rights.

(b)

Represents changes in the fair values of noncontrolling interests.

(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, including certain unusual, nonrecurring costs and credits due to COVID-19.

(e)

Represents costs related to acquisitions paid to third parties.

(f)

Includes gains from the sale of assets and impairment of assets resulting from restructuring plans to close certain facilities.

(g)

Represents the non-cash cost of sales impact of acquisition accounting adjustments to increase inventory to its estimated fair value.

GMS Inc.

Reconciliation of Cash (Used In) Provided By Operating Activities to Free Cash Flow (Unaudited)

(in thousands)

 

Three Months Ended

 

Six Months Ended

October 31,

 

October 31,

2021

 

2020

 

2021

 

2020

Cash (used in) provided by operating activities

$

(2,018)

 

 

$

39,759

 

 

$

(77,095)

 

 

$

24,048

 

Purchases of property and equipment

(9,305)

 

 

(7,100)

 

 

(16,119)

 

 

(11,845)

 

Free cash flow (a)

$

(11,323)

 

 

$

32,659

 

 

$

(93,214)

 

 

$

12,203

 

________________________________________

(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

 

Six Months Ended

October 31,

 

October 31,

2021

 

2020

 

2021

 

2020

Selling, general and administrative expense

$

230,531

 

 

$

188,352

 

 

$

444,612

 

 

$

371,464

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

Stock appreciation expense(a)

(983)

 

 

(314)

 

 

(1,875)

 

 

(1,106)

 

Redeemable noncontrolling interests(b)

(593)

 

 

(186)

 

 

(903)

 

 

(438)

 

Equity-based compensation(c)

(3,215)

 

 

(3,252)

 

 

(5,173)

 

 

(4,857)

 

Severance and other permitted costs(d)

(251)

 

 

(812)

 

 

(412)

 

 

(2,693)

 

Transaction costs (acquisitions and other)(e)

(2,393)

 

 

(25)

 

 

(2,968)

 

 

(125)

 

Gain (loss) on disposal and impairment of assets(f)

144

 

 

(481)

 

 

222

 

 

(875)

 

Adjusted SG&A

$

223,240

 

 

$

183,282

 

 

$

433,503

 

 

$

361,370

 

 

 

 

 

 

 

 

 

Net sales

$

1,150,551

 

 

$

812,856

 

 

$

2,192,627

 

 

$

1,615,429

 

Adjusted SG&A margin

19.4

%

 

22.5

%

 

19.8

%

 

22.4

%

___________________________________

(a)

Represents changes in the fair value of stock appreciation rights.

(b)

Represents changes in the fair values of noncontrolling interests.

(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, including certain unusual, nonrecurring costs and credits due to COVID-19.

(e)

Represents costs related to acquisitions paid to third parties.

(f)

Includes gains from the sale of assets and impairment of assets resulting from restructuring plans to close certain facilities.

GMS Inc.

Reconciliation of Income Before Taxes to Adjusted Net Income (Unaudited)

(in thousands, except per share data)

 

Three Months Ended

 

Six Months Ended

October 31,

 

October 31,

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Income before taxes

$

98,130

 

 

$

36,746

 

 

$

179,303

 

 

$

73,569

 

EBITDA add-backs

7,289

 

 

5,020

 

 

12,824

 

 

10,110

 

Purchase accounting depreciation and amortization (1)

10,811

 

 

10,121

 

 

21,129

 

 

20,256

 

Adjusted pre-tax income

116,230

 

 

51,887

 

 

213,256

 

 

103,935

 

Adjusted income tax expense

28,476

 

 

11,674

 

 

52,248

 

 

23,385

 

Adjusted net income

$

87,754

 

 

$

40,213

 

 

$

161,008

 

 

$

80,550

 

Effective tax rate (2)

24.5

%

 

22.5

%

 

24.5

%

 

22.5

%

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

43,135

 

 

42,723

 

 

43,112

 

 

42,674

 

Diluted

43,894

 

 

43,174

 

 

43,933

 

 

43,096

 

Adjusted net income per share:

 

 

 

 

 

 

 

Basic

$

2.03

 

 

$

0.94

 

 

$

3.73

 

 

$

1.89

 

Diluted

$

2.00

 

 

$

0.93

 

 

$

3.66

 

 

$

1.87

 

________________________________________

(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 from the acquisition of Titan and the acquisition of Westside Building Material.

(2)

Normalized cash tax rate excluding the impact of purchase accounting and certain other deferred tax amounts.

 

Investors:
Carey Phelps
ir@gms.com
770-723-3369

Source: GMS Inc.

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