Financial Performance - Net sales for the three months ended January 31, 2025, were $1,260,710, a slight increase from $1,258,348 in the same period of 2024, representing a growth of 0.1%[19] - Gross profit for the three months ended January 31, 2025, was $393,090, down from $414,720 in the prior year, reflecting a decrease of 5.2%[19] - Operating income decreased significantly to $4,784 for the three months ended January 31, 2025, compared to $86,225 in the same period of 2024, a decline of 94.4%[19] - The company reported a net loss of $21,409 for the three months ended January 31, 2025, compared to a net income of $51,905 in the same period of 2024[19] - The company's Adjusted EBITDA for the three months ended January 31, 2025, was $93,041 thousand, down from $128,020 thousand for the same period in 2024, indicating a decrease of about 27.4%[100] - The company’s net income for the nine months ended January 31, 2025, was $89,375 thousand, compared to $219,692 thousand for the same period in 2024, reflecting a decline of approximately 59.3%[100] - Adjusted EBITDA of $391.1 million during the nine months ended January 31, 2025, a 16.6% decrease compared to the prior year, with Adjusted EBITDA as a percentage of net sales decreasing to 9.4%[120] Assets and Liabilities - Total assets as of January 31, 2025, were $3,793,036, a slight increase from $3,759,840 as of April 30, 2024[17] - Current liabilities decreased to $648,207 as of January 31, 2025, from $757,050 as of April 30, 2024, a reduction of 14.4%[17] - Long-term debt increased to $1,352,873 as of January 31, 2025, compared to $1,229,726 as of April 30, 2024, an increase of 10.0%[17] - The total stockholders' equity decreased to $1,393,608 as of January 31, 2025, from $1,460,521 as of April 30, 2024, a decline of 4.6%[17] Cash Flow and Investments - The company experienced a total cash flow from operating activities of $186,806 thousand for the nine months ended January 31, 2025, compared to $229,026 thousand for the same period in 2024[28] - Cash used in investing activities totaled $227,738 thousand for the nine months ended January 31, 2025, compared to $93,182 thousand in the prior year[28] - The company repurchased $138,902 thousand of common stock during the nine months ended January 31, 2025[28] - As of January 31, 2025, GMS Inc. had cash and cash equivalents of $59,029 thousand, down from $88,341 thousand at the end of the previous year[28] Acquisitions and Business Operations - On May 1, 2024, the Company acquired Howard & Sons Building Materials, Inc., expanding its distribution capabilities in California[43] - On July 2, 2024, the Company acquired Yvon Building Supply, Inc. and related entities for a total consideration of $239.0 million, including $212.4 million in cash and $26.6 million in contingent consideration[44][47] - The Company recorded $114.3 million in net sales and a net loss of $0.1 million from acquisitions made in fiscal 2025[46] - The company completed three acquisitions and opened three greenfield locations during the nine months ended January 31, 2025[125] Market and Economic Conditions - Demand for wallboard in the commercial sector declined year-over-year during the first half of fiscal 2025, reflecting an uncertain economic climate[114] - Single-family housing starts are expected to remain muted in the near term due to affordability challenges and high mortgage rates[116] - Multi-family construction activity was robust throughout calendar 2023, but demand for products declined year-over-year during the first three quarters of fiscal 2025[117] Stock and Shareholder Activities - The company approved a share repurchase program authorizing up to $250.0 million, with $218.4 million remaining for repurchase as of January 31, 2025[77] - The company repurchased approximately 1.6 million shares of common stock for $137.8 million during the nine months ended January 31, 2025, with $218.4 million remaining under the 2024 Repurchase Plan[165] - The average price paid per share for repurchases in January 2025 was $83.47, with a total of 168,791 shares repurchased during that month[189] Impairments and Expenses - The company recognized a non-cash goodwill impairment charge of $42.5 million during the three months ended January 31, 2025, primarily due to decreased forecasted future cash flows[137] - Selling, general and administrative expenses increased by 5.1% to $310,815 for the three months ended January 31, 2025, attributed to incremental expenses from acquisitions[135] - Interest expense increased by 22.8% to $23,069 for the three months ended January 31, 2025, due to higher outstanding debt and finance leases[140] Tax and Compliance - The company's effective income tax rate on continuing operations was 33.0% for the nine months ended January 31, 2025, compared to 24.5% for the same period in 2024[74] - The company was in compliance with all debt covenants as of January 31, 2025[167] - Certifications of the Chief Executive Officer and Chief Financial Officer were submitted in compliance with the Securities Exchange Act of 1934[31.1][31.2]

Financial Data and Key Metrics Changes - The company reported net sales of $1.3 billion for Q3 2025, roughly flat compared to the same period a year ago, with organic sales declining by 6.7% [10][25] - Gross margin for the quarter was 31.2%, slightly down from 31.4% in the previous quarter and down from 33% a year ago [10][42] - Adjusted EBITDA decreased by 27.3% year-over-year to $93 million, with an adjusted EBITDA margin declining from 10.2% to 7.4% [48] Business Line Data and Key Metrics Changes - Wallboard sales dollars were $501.7 million, down 3.6% year-over-year, with a volume decline of 4.9% partially offset by a 1.3% increase in price and mix [33] - Complementary product sales grew 5.3% year-over-year to $398.6 million, marking the 19th consecutive quarter of growth, although organic sales decreased by 4.3% [40] - Steel framing sales were down 11.6% for the quarter, with a 6% decline in price and mix and a volume decline of 5.6% [37] Market Data and Key Metrics Changes - US commercial revenues were down 7.8% organically compared to last year, with the Architectural Billings Index indicating a decline for 17 out of the last 18 months [13] - In Canada, residential building permit activity ended 2024 on a high note, with a total value of permits reaching the highest level since 2017, indicating a more positive market compared to the US [20][32] - The company noted that multifamily revenues in the US were down 27% year-over-year, while single-family revenues were up 1.9%, leading to a total US residential sales dollar decline of 6.4% [31] Company Strategy and Development Direction - The company is focusing on four strategic pillars: expanding share in core products, growing complementary products, expanding the platform, and driving improved productivity and profitability [21] - The company is implementing an additional estimated $20 million in annualized cost reductions, bringing the total annualized run rate of cost reductions to $50 million since the start of the fiscal year [22] - The company remains confident in its ability to generate significant cash flow and maintain a solid balance sheet, positioning itself for long-term growth opportunities [22][63] Management's Comments on Operating Environment and Future Outlook - Management indicated that the challenging demand backdrop experienced in the last half of Q3 is expected to continue through the end of the fiscal year and likely beyond [55] - The company anticipates that the current macro conditions will persist through most of calendar 2025, but expects to see improvement in demand towards the end of 2025 and into 2026 [62] - Management expressed optimism about future growth, citing the need for affordable housing and the potential for recovery in the single-family market [19][62] Other Important Information - The company recognized a $42.5 million non-cash goodwill impairment charge during the quarter, contributing to a GAAP net loss of $21.4 million compared to net income of $51.9 million in the prior year [46] - Cash provided by operating activities for the quarter was $94.1 million, with free cash flow of $83.1 million, representing 89% of adjusted EBITDA for the quarter [50] Q&A Session Summary Question: Regarding steel pricing expectations - Management acknowledged that while there may be some inflation in steel prices, it is likely to occur post the current quarter due to existing inventory levels and demand conditions [67][68] Question: April quarter outlook and cost reductions - Management confirmed that the full run rate of the $20 million cost reductions will be realized in the first quarter of fiscal 2026, with some benefits expected in the current quarter [71][76] Question: Deterioration in commercial sectors - Management noted that the commercial sector is experiencing significant declines, particularly in retail and private financing projects, while data centers remain strong [82][84] Question: Ceiling pricing dynamics - Management indicated that the strong performance in ceiling pricing is due to a focus on architectural specialties and successful project closures, which are expected to continue [100][102] Question: Wallboard pricing and volume growth - Management stated that volume growth across any end market would be beneficial for pricing, with a particular emphasis on the single-family market as a key driver [109]

Q3 FY2025 Earnings Call March 6, 2025 Safe Harbor and Basis of Presentation Forward-Looking Statement Safe Harbor — This presentation 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 ...

GMS (GMS) came out with quarterly earnings of $0.92 per share, missing the Zacks Consensus Estimate of $1.39 per share. This compares to earnings of $1.60 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -33.81%. A quarter ago, it was expected that this company would post earnings of $2.26 per share when it actually produced earnings of $2.02, delivering a surprise of -10.62%.Over the last four quarters, the company has not bee ...

Financial Performance - Net sales for Q3 fiscal 2025 were $1.3 billion, a slight increase of 0.2%, while organic net sales decreased by 6.7%[4] - The company reported a net loss of $21.4 million, or $0.55 per diluted share, compared to a net income of $51.9 million, or $1.28 per diluted share in the prior year[9] - Adjusted EBITDA decreased by $35.0 million, or 27.3%, to $93.0 million, with an adjusted EBITDA margin of 7.4% compared to 10.2% in Q3 fiscal 2024[10] - Gross profit was $393.1 million, down $21.6 million from the prior year, with a gross margin of 31.2%, a decrease of 180 basis points year-over-year[5] - Operating income for the three months ended January 31, 2025, was $4.8 million, significantly lower than $86.2 million in the same period last year, indicating a decline of 94.4%[29] - Net loss for the three months ended January 31, 2025, was $(21.4) million, compared to net income of $51.9 million in the prior year, representing a change of 141.2%[29] - Adjusted net income for the three months ended January 31, 2025, was $36.2 million, down from $68.8 million in the same period of 2024[43] - Net income for the last twelve months ended January 31, 2025, was $145,762, a decrease of 50.7% compared to $295,285 for the same period in 2024[47] Expenses and Cost Management - Selling, general and administrative (SG&A) expenses increased to $310.8 million, up from $295.7 million, with SG&A as a percentage of net sales rising to 24.7%[6][7] - The company is implementing an additional estimated $20 million in annualized cost reductions, bringing total reductions to $50 million since the start of the fiscal year[3] - The company reported a total adjusted SG&A margin of 23.9% for the three months ended January 31, 2025, compared to 22.9% in the same period of 2024[39] Cash Flow and Liquidity - Cash provided by operating activities was $94.1 million, down from $104.3 million in the prior year, while free cash flow was $83.1 million compared to $94.1 million[13] - Cash and cash equivalents decreased to $59.0 million as of January 31, 2025, down from $166.1 million at the beginning of the period, a decrease of 64.5%[27] - The company reported a cash flow from operating activities of $186.8 million for the nine months ended January 31, 2025, down from $229.0 million in the prior year, a decrease of 18.4%[27] - Free cash flow for the three months ended January 31, 2025, was $83.1 million, compared to $94.1 million in the same period of 2024[38] Debt and Leverage - As of January 31, 2025, total debt was $1.4 billion, with net debt leverage increasing to 2.4 times from 1.5 times a year ago[12] - Total liabilities increased to $2,399.4 million as of January 31, 2025, compared to $2,299.3 million as of April 30, 2024, reflecting an increase of 4.4%[25] - Total debt increased to $1,409,977, up 36.7% from $1,030,761 in the prior year[47] - Net debt rose to $1,350,948, compared to $942,420, marking an increase of 43.3%[47] - The net debt to Pro Forma Adjusted EBITDA ratio is now 2.4x, up from 1.5x in the previous year[47] Impairment and Goodwill - The company recognized a $42.5 million non-cash goodwill impairment charge during the quarter, primarily due to decreased expected future cash flows[11] - The company incurred an impairment of goodwill of $42.5 million for the three months ended January 31, 2025, which was not present in the same period last year[29] - Impairment of goodwill was recorded at $42,454, indicating a new expense not present in the previous year[47] Sales Performance - Wallboard sales were $501.7 million, down 3.6%, while Ceilings sales increased by 16.0% to $180.7 million[8] - Wallboard sales for the three months ended January 31, 2025, were $501.7 million, a decrease of 3.6% from $520.7 million in the same period last year[30] - Wallboard per day net sales decreased by 3.6% to $8.1 million in the three months ended January 31, 2025, compared to $8.4 million in the same period of 2024[33] - Steel framing per day net sales decreased by 11.6% to $2.9 million in the three months ended January 31, 2025, compared to $3.3 million in the same period of 2024[33] Asset Management - Total current assets decreased to $1,491.5 million as of January 31, 2025, from $1,639.3 million as of April 30, 2024, a decline of 9.0%[25] - Cash and cash equivalents decreased to $59,029, down 33.2% from $88,341[47] - Contributions from acquisitions increased to $16,572, compared to $6,276, representing a growth of 164.5%[47] - The company incurred $4,745 in transaction costs related to acquisitions, slightly up from $4,180[47]

Financial Performance - Net sales for the three months ended October 31, 2024, were $1,470,776, an increase of 3.7% compared to $1,420,930 for the same period in 2023[19]. - Gross profit for the three months ended October 31, 2024, was $461,127, compared to $458,629 for the same period in 2023, reflecting a slight increase[19]. - Operating income decreased to $94,824 for the three months ended October 31, 2024, down from $124,798 in the same period of 2023, representing a decline of 24%[19]. - Net income for the three months ended October 31, 2024, was $53,536, a decrease of 33.8% from $80,957 in the same period of 2023[19]. - Adjusted EBITDA for the three months ended October 31, 2024, was $152,224 million, compared to $167,558 million for the same period in 2023, indicating a decline of about 9.1%[101]. - Net income for the six months ended October 31, 2024, was $110,784, compared to $167,787 for the same period in 2023, representing a decline of about 34%[25]. - Adjusted EBITDA for the six months ended October 31, 2024, was $298,105 thousand, down 12.5% from $340,856 thousand in the prior year[119]. - Net income for the six months ended October 31, 2024, was $110.8 million, a 34.0% decrease compared to the prior year, with net income as a percentage of sales dropping to 3.8% from 5.9%[135]. Assets and Liabilities - Total current assets increased to $1,670,350 as of October 31, 2024, compared to $1,639,323 as of April 30, 2024[17]. - Total assets rose to $4,023,009 as of October 31, 2024, compared to $3,759,840 as of April 30, 2024, indicating growth in the company's asset base[17]. - Long-term debt increased to $1,426,564 as of October 31, 2024, up from $1,229,726 as of April 30, 2024, reflecting a rise in leverage[17]. - As of October 31, 2024, total stockholders' equity was $1,469,307, a decrease from $1,375,885 as of October 31, 2023, reflecting a year-over-year change of approximately 6.8%[22]. - The company's long-term debt as of October 31, 2024, was $1.43 billion, an increase from $1.23 billion as of April 30, 2024, representing an increase of 16.5%[57]. - The company’s total liabilities for medical self-insurance as of October 31, 2024, were $4,812, down from $6,067 as of April 30, 2024, indicating a decrease of approximately 20.7%[31]. Expenses - Selling, general and administrative expenses increased to $324,225 for the three months ended October 31, 2024, compared to $300,894 for the same period in 2023, indicating rising operational costs[19]. - The company reported depreciation and amortization expenses of $80,110 for the six months ended October 31, 2024, an increase from $64,955 in the same period of 2023, reflecting a rise of about 23.3%[25]. - Interest expense for the three months ended October 31, 2024, was $23,697 thousand, compared to $18,742 thousand in the same period last year, indicating an increase of 26.3%[199]. - Interest expense rose by $4,955 thousand, or 26.4%, to $23,697 thousand, attributed to increased outstanding debt and finance leases[158]. - Total lease cost for the six months ended October 31, 2024, was $70,830,000, an increase of 22.4% from $57,820,000 in the same period of 2023[69]. Share Repurchase and Equity - The company repurchased common stock totaling $99,248 during the six months ended October 31, 2024, compared to $75,356 in the same period of 2023, reflecting an increase of about 31.7%[25]. - The company repurchased approximately 1.1 million shares for $98.5 million under the 2023 Repurchase Plan, with $102.0 million remaining for future repurchases[186]. - The company approved a new share repurchase program authorizing up to $250 million, replacing the previous program with $94.6 million remaining as of November 30, 2024[117]. - The total number of shares repurchased in the three months ended October 31, 2024, was 593,168 shares, with an average price per share of $88.86[216]. Acquisitions and Growth - The company acquired businesses for $207,259 during the six months ended October 31, 2024, compared to $55,964 in the same period of 2023, indicating a significant increase in acquisition activity[25]. - The Company acquired Howard & Sons Building Materials, Inc. on May 1, 2024, and Yvon Building Supply, Inc. and related entities on July 2, 2024, to expand geographical coverage[39][40]. - The total preliminary consideration for fiscal 2025 acquisitions was $242.2 million, including $215.5 million in cash and $26.6 million in contingent consideration[45]. - The Company reported $64.4 million in net sales and $0.4 million in net income from acquisitions made in fiscal 2025 for the six months ended October 31, 2024[42]. - The company completed three acquisitions and opened one greenfield location during the reporting period[138]. Market and Operational Insights - Demand for single-family housing units showed positive wallboard volume growth for the first time since fall 2022, indicating early recovery in this market[124]. - Multi-family construction activity remained robust throughout calendar 2023, but demand for products declined year-over-year during the first half of fiscal 2025 due to completed backlogs[126]. - The company is focused on expanding its core products and complementary product lines, aiming to enhance market share both organically and through acquisitions[128][129]. - Financing availability and cost, along with labor constraints, are expected to be headwinds for commercial projects until conditions improve[122]. Tax and Valuation - The effective income tax rate on continuing operations was 26.4% for the six months ended October 31, 2024, compared to 24.3% in 2023[72]. - The provision for income taxes decreased by $8,315 thousand, or 30.6%, to $18,890 thousand, with an effective tax rate of 26.1%[159]. - The company had a valuation allowance of $12.6 million against its deferred tax assets as of October 31, 2024[73]. Miscellaneous - The company reported a loss on disposal of assets of $507 for the six months ended October 31, 2024, compared to a gain of $441 in the same period of 2023[25]. - The company recorded $6.2 million in restructuring costs during Q2 of fiscal 2025, primarily for workforce reduction and related expenses[32]. - The company reported no material changes in market risks or internal controls over financial reporting during the three months ended October 31, 2024[207][210].

Financial Data and Key Metrics Changes - The company reported net sales of $1.47 billion, an increase of 3.5% year-over-year, primarily driven by recent acquisitions and volume growth in Ceilings, Steel Framing, and Complementary Products [7][25] - Organic sales declined by 4.6% due to softened market demand and the impact of hurricanes, with net income decreasing by 33.9% to $53.5 million compared to $81 million a year ago [9][41] - Adjusted EBITDA was $152.2 million, down 9.2% year-over-year, with an EBITDA margin of 10.3%, compared to 11.8% in the prior year [10][41] Business Line Data and Key Metrics Changes - Wallboard sales were $582.1 million, down 0.5% year-over-year, with a 1.6% decline in volume offset by a 1.1% increase in price and mix [28] - Ceilings sales increased by 16.6% year-over-year, with organic sales growing 1.6% despite a 2.5% decrease in volume [31] - Steel Framing sales decreased by 6.3%, with organic sales down 14%, reflecting an 8% decline in volume and a 6% decline in price and mix [32][34] - Complementary Products sales grew 9% year-over-year, marking the 18th consecutive quarter of growth for this category [34] Market Data and Key Metrics Changes - Commercial sales dollars declined by 4.4%, while multifamily sales fell significantly by 16.9% compared to the previous year [26] - Single-family sales dollars were slightly up, less than 1% above the prior year quarter, but below expectations due to high mortgage rates [27] - The company estimates that hurricanes negatively impacted net sales by approximately $20 million and adjusted EBITDA by about $6 million [9] Company Strategy and Development Direction - The company is focused on maintaining and growing market share across core product categories, particularly in Wallboard, Steel Framing, and Complementary Products [15][17] - The company has invested over $1 billion in acquisitions since COVID, targeting both core products and complementary products to enhance its service offerings [21] - The management emphasizes the importance of a diversified customer base and balanced revenue mix to navigate market fluctuations effectively [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the current market conditions are challenging, with expectations for continued headwinds into 2025, particularly in multifamily and commercial sectors [47][48] - There is optimism for a recovery in the housing market driven by favorable demographics and easing regulatory constraints, although the ramp-up will take time [13][14] - The company expects organic Wallboard volumes to decline mid- to high single digits in the upcoming quarter, with a slight improvement in gross margin anticipated [50][52] Other Important Information - The company has renewed its share repurchase program, authorizing the repurchase of up to $250 million of its shares outstanding, reflecting confidence in the business [45] - Capital expenditures for the quarter were $14.1 million, with expectations of $45 million to $50 million for the full fiscal year [44] Q&A Session Summary Question: Wallboard price cost dynamics - Management indicated that approximately 60 basis points of gross margin was still attributed to Wallboard price costs, with slight improvements expected moving forward [61][62] Question: Long-term pricing expectations for Steel Framing and Ceilings - Management noted that tariffs on steel could be beneficial, and they expect the Ceilings market to remain slightly inflationary [66][68] Question: Outlook for multifamily and commercial markets - Management expressed that there is little improvement expected in these categories for the next few quarters, with a need for new structures to drive demand [76][78] Question: Visibility on project delays in multifamily - Management confirmed that while the pipeline exists, many projects are being delayed due to financing issues and anticipation of lower rates [88][90] Question: Expectations for SG&A leverage - Management is optimistic about achieving neutral SG&A in the next quarter, with potential for improvement if volume declines do not continue [91][92] Question: Wallboard pricing and demand - Management stated that low single-digit volume growth would be sufficient to facilitate easier price increases in the future [108][110]

GMS (GMS) came out with quarterly earnings of $2.02 per share, missing the Zacks Consensus Estimate of $2.26 per share. This compares to earnings of $2.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -10.62%. A quarter ago, it was expected that this company would post earnings of $2.11 per share when it actually produced earnings of $1.93, delivering a surprise of -8.53%.Over the last four quarters, the company has not been ...

Financial Performance - Net sales for the second quarter of fiscal 2025 were $1.5 billion, an increase of 3.5% year-over-year, while organic net sales decreased by 4.6%[3] - Net income decreased by 33.9% to $53.5 million, or $1.35 per diluted share, with a net income margin decline of 200 basis points to 3.6%[18] - Adjusted EBITDA was $152.2 million, a decrease of $15.3 million or 9.2%, with an adjusted EBITDA margin of 10.3% compared to 11.8% in the prior year[19] - Operating income decreased to $94,824 thousand from $124,798 thousand, reflecting a decline of 24% year-over-year[36] - Net income for the quarter was $53,536 thousand, down 33.8% from $80,957 thousand in the prior year[36] - Basic net income per share was $1.37, compared to $2.00 in the same quarter last year, representing a decrease of 31.5%[36] - Net income for the three months ended October 2024 was $53,536 thousand, a decrease of 33.8% compared to $80,957 thousand for the same period in 2023[52] - Adjusted EBITDA for the six months ended October 2024 was $298,105 thousand, down 12.5% from $340,856 thousand for the same period in 2023[52] - Adjusted net income for the three months ended October 2024 was $80,061 thousand, a decrease of 18.6% compared to $98,448 thousand for the same period in 2023[59] - Net income for the last twelve months ended October 31, 2023, was $219,076, down from $308,155 in the previous period, representing a decrease of approximately 29%[62] Cash Flow and Liquidity - Cash provided by operating activities was $115.6 million, down from $118.1 million in the prior year, while free cash flow was $101.5 million compared to $102.1 million[21] - Cash provided by operating activities was $92.662 million, down 25.7% from $124.747 million year-over-year[41] - Cash used in investing activities totaled $233.189 million, significantly higher than $83.809 million in the previous year, primarily due to business acquisitions[41] - Cash provided by financing activities was $57.712 million, a turnaround from cash used of $128.778 million in the same quarter last year[41] - Cash and cash equivalents decreased to $83,928 thousand from $166,148 thousand, indicating a significant reduction in liquidity[38] - Cash and cash equivalents rose to $83,928, up from $76,517, showing an increase of about 9%[62] Sales and Revenue Breakdown - Wallboard sales were $582.1 million, a decrease of 0.5%, while Steel Framing sales decreased by 6.3% to $217.4 million[11][13] - Total net sales for the quarter reached $1.471 billion, representing a 3.5% increase from $1.421 billion in the same quarter of the previous year[44] - Wallboard sales accounted for 39.6% of total net sales, generating $582.119 million, a slight decrease of 0.5% compared to $585.174 million in the prior year[46] - Steel framing sales were $217.388 million, down 6.3% from $232.108 million year-over-year, representing 14.8% of total net sales[46] - Net sales for the six months ended October 2024 were $2,919,232 thousand, an increase of 3.1% compared to $2,830,530 thousand for the same period in 2023[56] Expenses and Costs - SG&A expenses increased to $324.2 million, up from $300.9 million, with a significant portion attributed to recent acquisitions and severance costs[16] - Selling, general and administrative expense for the three months ended October 2024 was $324,225 thousand, an increase of 7.7% compared to $300,894 thousand for the same period in 2023[56] - Adjusted SG&A margin for the three months ended October 2024 was 21.1%, up from 20.6% for the same period in 2023[56] - Interest expense for the three months ended October 2024 was $23,697 thousand, an increase of 26.3% compared to $18,742 thousand for the same period in 2023[52] - Interest expense increased to $83,715 from $72,783, which is an increase of about 15%[62] - Depreciation expense rose to $75,673, compared to $64,416, reflecting an increase of approximately 17%[62] Debt and Leverage - Net debt leverage increased to 2.3 times, up from 1.5 times a year ago, with total debt reported at $1.5 billion[20] - Long-term debt increased to $1,426,564 thousand from $1,229,726 thousand, reflecting a rise of 16%[38] - Total debt increased significantly to $1,481,446 from $1,076,050, reflecting a rise of about 37.5%[62] - Net debt increased to $1,397,518 from $999,533, reflecting a rise of about 40%[62] Strategic Initiatives - The company renewed its share repurchase program, authorizing up to $250 million for repurchase of outstanding common stock[6] - The company successfully acquired R. S. Elliott Specialty Supply, enhancing its distribution capabilities in Florida[24] - The company opened new greenfield locations in Summerville, SC, Middleton, MA, and Clackamas, OR, expanding its service and product offerings[25] - The company plans to continue focusing on market expansion and new product development to drive future growth[41] Other Financial Metrics - Total assets increased to $4,023,009 thousand as of October 31, 2024, up from $3,759,840 thousand as of April 30, 2024[38] - Current liabilities decreased slightly to $748,697 thousand from $757,050 thousand, indicating improved short-term financial stability[38] - The company reported a total stockholders' equity of $1,469,307 thousand, a slight increase from $1,460,521 thousand[38] - EBITDA adjustments totaled $38,288, up from $27,906, indicating an increase of about 37%[62] - Pro Forma Adjusted EBITDA was $603,735, down from $647,410, representing a decrease of approximately 6.7%[62]

Core Viewpoint - GMS Inc. is set to report its second-quarter fiscal 2025 results on December 5, with expectations of mixed performance due to varying demand patterns across product categories and external economic factors [1][5]. Financial Performance - In the last reported quarter, GMS's earnings missed the Zacks Consensus Estimate by 8.5% and declined 19.6% year over year, while net sales also missed the consensus mark by 2.7% but increased 2.8% year over year [1][2]. - The Zacks Consensus Estimate for earnings per share (EPS) has remained stable at $2.26, indicating a 1.7% drop from the year-ago quarter's level of $2.30 [3]. - The consensus mark for net sales is pegged at $1.45 billion, indicating a 2.4% rise from the year-ago period [4]. Product Category Insights - GMS expects its consolidated organic Wallboard volume to have been flat to down low single digits, with pricing slightly up year over year [6]. - Ceilings volume is likely to have increased in the low-to-single digits, while pricing is anticipated to be flat to up low single digits [6]. - Steel Framing is expected to have declined in the mid-to-high single digits, with pricing anticipated to be up in the low-single digits, reflecting the current financing environment [7]. - Sales growth for Complementary Products is anticipated to be in the mid-to-high single digits, while overall sales growth is expected to be up low-to-mid single digits compared to year-ago figures [8]. Segment Performance - The Zacks Consensus Estimate of net sales for Wallboard, Ceilings, and Complementary Products is pegged at $607 million, $195 million, and $449.8 million, respectively, compared to $585.2 million, $175.3 million, and $428.3 million in the year-ago period [9]. - The Zacks Consensus Estimate for Steel Framing is pegged at $205.3 million, down from $232.1 million reported in the year-ago quarter [9]. Margin and Income Expectations - GMS anticipates a decline in the bottom line year over year due to increased labor expenses and inflationary pressures, with expected gross margin in the range of 31.6-31.8% and net income of $67-$69 million [10]. - The company reported a gross margin of 32.3% and a net income of $81 million in the year-ago period [10]. - Adjusted EBITDA is expected to be $163-$168 million, with adjusted EBITDA margins of approximately 11%, compared to $167.6 million and an adjusted EBITDA margin of 11.8% in the year-ago period [11]. Strategic Outlook - GMS's strategic initiatives, diverse product portfolio, and search for accretive inorganic opportunities are expected to benefit its performance, with the housing market remaining undersupplied [12]. - Trends such as AI, reshoring, and infrastructure investment are driving sustained construction demand, positioning GMS to benefit as market conditions stabilize [12].