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].

Overview of FMR LLC's Recent Transaction - On September 30, 2024, FMR LLC acquired 854,987 shares of GMS Inc, increasing its total holdings to 4,232,170 shares, reflecting a strategic enhancement of its investment portfolio [1] - The shares were purchased at a price of $90.57 each, indicating a significant investment move by FMR LLC [1] FMR LLC's Investment Philosophy and Holdings - FMR LLC, commonly known as Fidelity, has been a leader in investment services since its establishment in 1946, focusing on research-driven strategies for long-term growth [2] - The firm's top holdings include major companies like Apple Inc and Amazon.com Inc, primarily in the technology and healthcare sectors, showcasing its focus on high-growth areas [2] GMS Inc's Market Position and Performance - GMS Inc operates as a key distributor of specialty building products, with a market capitalization of $3.55 billion and a P/E ratio of 14.93, indicating healthy profitability [5] - The company has shown robust growth since its IPO in 2016, particularly in wallboard products, with a year-to-date price increase of 12.76% and a total rise of 302.04% since its IPO [6] Strategic Rationale Behind FMR LLC's Investment - FMR LLC's increased stake in GMS Inc, now approximately 10.77%, reflects confidence in GMS's market position and future prospects, despite a modest overall impact of 0.02% on FMR LLC's portfolio [4] - The decision is likely influenced by GMS's strong Profitability Rank and a GF Score of 81, indicating good potential for outperformance in the building products sector [7] Comparative Analysis with Other Investors - FMR LLC's strategic positioning in GMS Inc aligns it with other major investors like Gotham Asset Management, highlighting a commitment to investing in companies with strong market positions and growth potential [8]

Core Insights - GMS Inc. reported disappointing first-quarter fiscal 2025 results, with earnings and net sales missing consensus estimates, although net sales showed a year-over-year increase [1][4] Financial Performance - Adjusted earnings per share (EPS) were $1.93, missing the Zacks Consensus Estimate of $2.11 by 8.5%, and down from $2.40 in the same quarter last year [4] - Net sales reached $1.45 billion, falling short of the consensus mark of $1.49 billion by 2.7%, but increased by 2.8% year over year [4] - Organic net sales declined by 2.2% from the prior year, with volume growth offset by steel price deflation and weaker demand in commercial and multi-family markets [5] Segment Performance - Wallboard sales increased by 2.9% year over year to $587.9 million, with organic growth of 1.1% [6] - Ceilings sales rose by 18.2% year over year to $207.2 million, with organic sales up 5.7% [6] - Steel Framing sales decreased by 11.4% year over year to $209.9 million, with organic sales down 15.3% [6] - Complementary Product sales grew by 4.1% year over year to $443.5 million, but organic sales declined by 2.2% [7] Operating Highlights - Gross profit increased by 0.2% year over year to $451.6 million, with a gross margin contraction of 80 basis points to 32% [8] - Adjusted EBITDA was $145.9 million, down 15.8% from the previous year, with an adjusted EBITDA margin of 10.1%, contracting 220 basis points [9] Financial Position - As of July 31, 2024, cash and cash equivalents were $53.2 million, down from $166.1 million at the end of fiscal 2024 [9] - Available liquidity under revolving credit facilities was $565.3 million, with long-term debt amounting to $1.33 billion, up from $1.23 billion at the end of fiscal 2024 [9] - Cash used in operating activities was $22.9 million, compared to cash provided of $6.6 million in the same period last year [10] Share Repurchase Activity - During the fiscal first quarter, GMS repurchased 538,078 shares for $46.2 million, with $154.3 million of share repurchase authorization remaining as of July 31, 2024 [10]

GMS Inc. (GMS) is scheduled to report first-quarter fiscal 2025 results on Aug. 29, before market open. In the last reported quarter, the company's earnings missed the Zacks Consensus Estimate by 5.4% and declined 8.5% year over year. Net sales missed the consensus mark by 0.4% but increased 8.4% year over year. GMS' earnings topped the consensus mark in two of the last four quarters and missed on two occasions, delivering an average negative surprise of 0.8%. The Trend in Estimate Revision The Zacks Consen ...

GMS Inc. (GMS) reported tepid results for fourth-quarter fiscal 2024 (ended Apr 30, 2024). Both earnings and net sales missed the Zacks Consensus Estimate. Earnings declined on a year-over-year basis. Nonetheless, net sales grew from the prior-year period. Shares of the company lost 6.1% on Jun 20, post-earnings release. The company expects Wallboard and Steel margins-related headwinds to improve from the second quarter. An improving single-family end market will likely offset declining multi-family and com ...

For the Transition Period From to Commission File Number: 001-37784 ______________________________________________________________ GMS INC. For the Fiscal Year Ended April 30, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Table of Contents SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF ...

GMS Inc. (NYSE:GMS) Q4 2024 Earnings Conference Call June 20, 2024 8:30 AM ET Company Participants Carey Phelps - VP, IR John Turner - President and CEO Scott Deakin - SVP and CFO Conference Call Participants Noah Merkousko - Stephens Matthew Bouley - Barclays David Manthey - Baird Brian Biros - Thompson Research Group Mike Dahl - RBC Capital Markets Jeffrey Stevenson - Loop Capital Markets Operator Greetings, and welcome to the GMS, Inc., Fourth Quarter Fiscal Year 2024 Earnings Conference Call. [Operator ...

Exhibit 99.1 GMS Reports Fourth Quarter and Fiscal Year 2024 Results Volume Growth Across All Four Major Product Categories Drove Record Levels of Full Year Net Sales and Strong Cash Flow Tucker, Georgia, June 20, 2024. 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 n ...

GMS Inc. (GMS) is slated to report fourth-quarter fiscal 2024 results on Jun 20, before the opening bell. In the last reported quarter, both earnings and net sales marginally missed the Zacks Consensus Estimate by 0.6% and 0.5%, respectively. How are Estimates Placed? The Zacks Consensus Estimate for fourth-quarter fiscal 2024 earnings per share has remained unchanged at $2.04 over the past 60 days. The estimated value indicates a 3.3% year-over-year decline. The consensus mark for net sales is pegged at $1 ...