Core Insights - GMS reported quarterly earnings of $1.29 per share, exceeding the Zacks Consensus Estimate of $1.15 per share, but down from $1.93 per share a year ago, indicating a 33.2% year-over-year decline [1] - The company achieved revenues of $1.33 billion for the quarter, surpassing the Zacks Consensus Estimate by 2.81%, but down from $1.41 billion in the same quarter last year [2] - GMS shares have underperformed, losing approximately 13.7% year-to-date compared to a 1.7% gain in the S&P 500 [3] Earnings Performance - GMS has surpassed consensus EPS estimates only once in the last four quarters [2] - The recent earnings surprise was 12.17%, following a previous quarter where actual earnings were significantly below expectations, resulting in a -33.81% surprise [1][2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.65, with expected revenues of $1.42 billion, and for the current fiscal year, the EPS estimate is $6.11 on revenues of $5.53 billion [7] - The estimate revisions trend for GMS is mixed, leading to a Zacks Rank of 3 (Hold), suggesting the stock is expected to perform in line with the market [6] Industry Context - The Building Products - Retail industry, to which GMS belongs, is currently in the top 40% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Financial Performance - Net sales for Q4 fiscal 2025 were $1,333.8 million, a decrease of 5.6% year-over-year, with organic net sales down 9.7%[4] - Net income for Q4 fiscal 2025 was $26.1 million, a decline of 53.7% from $56.4 million, resulting in a net income margin of 2.0% compared to 4.0%[4] - Adjusted EBITDA for Q4 fiscal 2025 was $109.8 million, down 25.1% from $146.6 million, with an adjusted EBITDA margin of 8.2%[4] - For the full year fiscal 2025, net sales were $5,513.7 million, a slight increase of 0.2%, while organic net sales decreased by 5.8%[6] - Net income for the year ended April 30, 2025, was $115,469 thousand, a significant decrease of 58.2% from $276,079 thousand in 2024[30] - Total net sales for the year ended April 30, 2025, were $5,513.7 million, a marginal increase of 0.2% compared to $5,501.9 million in 2024[34] - Adjusted EBITDA for the last twelve months ended April 30, 2025, was $500,922,000, down 18.5% from $615,454,000 in 2024[53] Cash Flow and Debt - The company generated free cash flow of $183.4 million in Q4 fiscal 2025, compared to $186.7 million in Q4 fiscal 2024[14] - Cash provided by operating activities for the year ended April 30, 2025, was $383,574 thousand, a decrease of 11.5% from $433,249 thousand in 2024[30] - The company reported a total of $1,206,445 thousand in long-term debt as of April 30, 2025, down from $1,229,726 thousand in 2024, reflecting a decrease of 1.9%[28] - Total debt as of April 30, 2025, was $1,264,346,000, slightly decreased from $1,280,575,000 in 2024[53] - As of April 30, 2025, net debt leverage was 2.4 times Pro Forma Adjusted EBITDA, up from 1.7 times a year ago[13] - The net debt to pro forma adjusted EBITDA ratio increased to 2.4x from 1.7x in the previous year[53] Shareholder Actions - GMS repurchased 348,599 shares for $26.4 million at an average cost of $75.60 per share during Q4 fiscal 2025[4] - The company repurchased common stock totaling $165,502 thousand during the year ended April 30, 2025[30] Strategic Initiatives - The company implemented an estimated $25 million in annualized cost reductions in Q4 fiscal 2025, totaling $55 million for the full year[4][6] - GMS completed three strategic acquisitions and opened four greenfield locations during fiscal 2025, enhancing its market presence[6] Market Trends and Outlook - The company expressed cautious optimism for fiscal 2026, anticipating pent-up demand as macroeconomic conditions improve[5] Sales Performance by Segment - Wallboard sales accounted for 39.5% of total net sales in the three months ended April 30, 2025, compared to 41.5% in the same period of 2024[32] - Organic sales for Wallboard decreased by 12.5% to $512.8 million in Q2 2025, while Ceilings increased by 2.9% to $194.3 million[34] - The company reported a 14.1% increase in Ceilings sales for the year ended April 30, 2025, reaching $793.3 million[34] - Steel framing sales decreased by 10.8% to $796.2 million for the year ended April 30, 2025[34] - The company experienced a 4.6% increase in sales of Complementary products for the year ended April 30, 2025, totaling $1,725.9 million[34] Other Financial Metrics - Gross profit for the year ended April 30, 2025, was $1,722,024 thousand, down from $1,775,101 thousand in 2024, reflecting a decrease of 3.0%[26] - Operating income for the three months ended April 30, 2025, was $59,575 thousand, a decline of 40.5% compared to $100,077 thousand in the same period of 2024[26] - The company’s interest expense for the three months ended April 30, 2025, was $20.1 million, compared to $19.0 million in the same period of 2024[39] - The effective tax rate for the period was 26.0%, consistent with the previous year[49] - Adjusted net income per diluted share for the year ended April 30, 2025, was $6.18, down from $8.61 in 2024, reflecting a 28.2% decline[49] - Cash and cash equivalents decreased significantly to $55,599,000 from $166,148,000 in the previous year[53] - The company reported an impairment of goodwill amounting to $42,454,000 for the last twelve months[53] - Contributions from acquisitions for the last twelve months were $6,983,000, down from $24,213,000 in 2024[53] - The company made EBITDA adjustments totaling $74,318,000 for the last twelve months, compared to $32,144,000 in 2024[53]

Core Viewpoint - GMS is expected to report a significant decline in quarterly earnings and revenues, indicating potential challenges in its business performance [1]. Financial Performance - Analysts predict GMS will post quarterly earnings of $1.15 per share, a decline of 40.4% year-over-year [1]. - Revenues are forecasted to be $1.3 billion, reflecting a year-over-year decrease of 8.2% [1]. Earnings Estimate Revisions - There have been no revisions in the consensus EPS estimate for the quarter over the past 30 days, indicating stability in analysts' projections [2]. - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [3]. Key Metrics Analysis - Organic net sales for Wallboard are estimated to decline by 15.3%, contrasting with a 6% increase from the previous year [5]. - Organic net sales for Ceilings are expected to decrease by 0.9%, compared to an 11.4% increase last year [5]. - Organic net sales for Other products/Complementary products are projected to decline by 4.1%, down from a 3.5% increase in the same quarter last year [6]. Market Performance - GMS shares have changed by +2.7% in the past month, compared to a +3.6% move of the Zacks S&P 500 composite [7]. - GMS holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [7].

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]

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 adjusted EBITDA margin declining from 10.2% to 7.4% [48][61] Business Line Data and Key Metrics Changes - Wallboard sales dollars were $501.7 million, down 3.6% year-over-year, with a 4.9% decline in volume partially offset by a 1.3% increase in price and mix [33] - Multifamily Wallboard volumes declined by 31.4%, while single-family Wallboard volumes were down 3.7% [34] - Complementary product sales grew 5.3% year-over-year, although organic sales decreased by 4.3% due to soft commercial and multifamily conditions [40] 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, housing sales data showed reductions in market inventory, and residential construction permits surged, indicating more positive conditions compared to the US [32][20] - The company expects single-family housing starts to remain muted for the calendar year due to affordability challenges and economic uncertainty [19] 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 total cost reductions to $50 million since the start of the fiscal year [22] - The company aims to maintain a balanced approach to capital allocation, investing in the business while also repaying debt and repurchasing shares [52] Management's Comments on Operating Environment and Future Outlook - Management indicated that the challenging demand backdrop is expected to continue through the end of the fiscal year and likely beyond, with no near-term catalysts for improvement [55] - The company remains optimistic about future growth as it navigates current uncertainties, expecting to be well-positioned when demand improves [62] - Management noted that the current macro conditions are anticipated to persist through most of calendar 2025, but they are confident in their strategy and operational adjustments [21][22] 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][47] - Cash provided by operating activities 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: Steel pricing outlook and expectations - Management acknowledged that while there may be some inflation in steel prices, it is expected to be post-quarter due to current 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 commercial sectors are 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 [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 importance of single-family housing for Wallboard demand [109][110] Question: Long-term EBITDA margin expectations - Management reaffirmed that long-term EBITDA margin expectations remain above 10%, with a target of around 9% for the current year despite current challenges [125][126]

Financial Performance - Net sales for Q3 FY25 reached $12607 million, a 02% increase compared to $12583 million in Q3 FY24[4] - Organic sales decreased by 67%[4] - Gross margin was 312%, down 180 bps year-over-year[6] - The company reported a net loss of $214 million, which includes a $425 million non-cash goodwill impairment[6] - Adjusted EBITDA was $930 million, compared to $1280 million in the same quarter last year[6] - The Adjusted EBITDA margin was 74%[16] Sales Breakdown - Wallboard net sales were $5017 million, a decrease of 36%[4] - Ceilings net sales were $1807 million, an increase of 160%[4] - Steel Framing net sales were $1797 million, a decrease of 116%[4] - Complementary Products net sales were $3986 million, an increase of 53%[4] Cash Flow and Capital Structure - Cash generated by operating activities was $941 million[25] - Free cash flow was $831 million[25] - The company repurchased 445K shares for $393 million during Q325[25] Q4 FY25 Expectations - Net sales are expected to be down high single digits year-over-year in total, and down low double digits organically[28] - Gross margin is expected to be approximately 312%[28] - GAAP net income is projected to be between $20 million and $22 million[28] - Adjusted EBITDA is expected to be between $100 million and $110 million[28]

Company Performance - GMS reported quarterly earnings of $0.92 per share, missing the Zacks Consensus Estimate of $1.39 per share, and down from $1.60 per share a year ago, representing an earnings surprise of -33.81% [1] - The company posted revenues of $1.26 billion for the quarter ended January 2025, missing the Zacks Consensus Estimate by 2.44%, and unchanged from year-ago revenues [2] - Over the last four quarters, GMS has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Performance - GMS shares have declined approximately 7.1% since the beginning of the year, compared to a decline of -0.7% for the S&P 500 [3] - The current Zacks Rank for GMS is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $1.87 on revenues of $1.41 billion, and for the current fiscal year, it is $7.26 on revenues of $5.62 billion [7] - The outlook for the Building Products - Retail industry, where GMS operates, is currently in the bottom 12% of over 250 Zacks industries, which may impact stock performance [8]

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].