[Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This report contains forward-looking statements based on current expectations, which are subject to various known and unknown risks and uncertainties that could cause actual results to differ materially from projections - This report contains forward-looking statements based on current expectations, which are subject to various known and unknown risks and uncertainties. These factors could cause actual results to differ materially from projections[10](index=10&type=chunk)[11](index=11&type=chunk) - Key risk factors that could impact future performance include, but are not limited to: - General economic conditions such as inflation, rising interest rates, and supply chain disruptions - Dependency on commercial and residential construction markets - Competition within the highly fragmented industry - Ability to pass on price increases and manage inventory - Successful implementation of growth strategies, including acquisitions - Disruptions in the supply chain or relationships with key suppliers - Cybersecurity breaches and IT system disruptions[12](index=12&type=chunk)[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) [PART I: Financial Information](index=5&type=section&id=PART%20I%20Financial%20Information) [Item 1. Financial Statements](index=5&type=section&id=Item%201%20Financial%20Statements) Unaudited Q1 FY2023 financials show strong year-over-year revenue and net income growth, increased assets, and improved operating cash flow [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) The balance sheet highlights an increase in total assets and stockholders' equity, with a slight decrease in current liabilities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | July 31, 2022 | April 30, 2022 | | :--- | :--- | :--- | | **Total current assets** | $1,529,996 | $1,423,127 | | **Total assets** | $3,212,425 | $3,104,399 | | **Total current liabilities** | $666,627 | $689,198 | | **Long-term debt, less current portion** | $1,192,101 | $1,136,585 | | **Total liabilities** | $2,073,201 | $2,039,901 | | **Total stockholders' equity** | $1,139,224 | $1,064,498 | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Unaudited)) The statement of operations shows robust year-over-year growth across net sales, gross profit, operating income, net income, and diluted EPS Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended July 31, 2022 | Three Months Ended July 31, 2021 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $1,359,553 | $1,042,076 | 30.5% | | Gross profit | $434,721 | $335,833 | 29.4% | | Operating income | $134,592 | $94,038 | 43.1% | | Net income | $89,470 | $61,202 | 46.2% | | Diluted EPS | $2.07 | $1.39 | 48.9% | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Unaudited)) Stockholders' equity increased, primarily driven by net income, partially offset by common stock repurchases - Total stockholders' equity increased from **$1.06 billion** at April 30, 2022, to **$1.14 billion** at July 31, 2022. The increase was primarily driven by **$89.5 million** in net income, partially offset by **$23.8 million** in common stock repurchases[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Cash flow from operations significantly improved, while investing activities decreased due to lower acquisition spending Cash Flow Summary (in thousands) | Activity | Three Months Ended July 31, 2022 | Three Months Ended July 31, 2021 | | :--- | :--- | :--- | | Cash used in operating activities | $(4,403) | $(75,077) | | Cash used in investing activities | $(13,277) | $(129,576) | | Cash provided by financing activities | $22,212 | $81,394 | - The significant decrease in cash used in operating activities was mainly due to smaller increases in inventory compared to the prior year. Cash used in investing activities decreased substantially due to lower acquisition spending (**$2.6 million** in Q1'23 vs. **$123.0 million** in Q1'22)[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Notes detail operations, a recent acquisition, share repurchase program expansion, and net sales breakdown by product and geography - The company operates approximately **300 distribution centers** and **100 tool sales, rental, and service centers** across the United States and Canada, serving residential and commercial contractors[27](index=27&type=chunk) - On June 1, 2022, the Company acquired certain assets of Construction Supply of Southwest Florida, Inc. ("CSSWF"), a distributor of stucco, building, and waterproofing supplies[45](index=45&type=chunk) - On June 20, 2022, the Board of Directors expanded the share repurchase program authorization to **$200.0 million**. During the quarter, the company repurchased approximately **516,000 shares** for **$23.8 million**[68](index=68&type=chunk)[69](index=69&type=chunk) Net Sales by Product (in thousands) | Product Line | Three Months Ended July 31, 2022 | Three Months Ended July 31, 2021 | | :--- | :--- | :--- | | Wallboard | $521,554 | $390,135 | | Ceilings | $167,275 | $138,071 | | Steel framing | $274,896 | $196,276 | | Complementary products | $395,828 | $317,594 | | **Total net sales** | **$1,359,553** | **$1,042,076** | Net Sales by Geography (in thousands) | Geography | Three Months Ended July 31, 2022 | Three Months Ended July 31, 2021 | | :--- | :--- | :--- | | United States | $1,187,871 | $862,790 | | Canada | $171,682 | $179,286 | | **Total net sales** | **$1,359,553** | **$1,042,076** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong net sales growth to pricing and market demand, with improved operating leverage, adequate liquidity, and continued strategic expansion [Market Conditions and Outlook](index=25&type=section&id=Market%20Conditions%20and%20Outlook) The residential market is expected to remain strong, while the commercial market shows signs of continued improvement - **Residential Market:** Strong demand is expected to continue through the remainder of calendar year 2022, supported by favorable demographics and low housing supply, despite medium-term uncertainty from rising mortgage rates and affordability concerns[95](index=95&type=chunk) - **Commercial Market:** Demand is showing signs of improvement, particularly in medical, educational, and governmental projects. However, larger office projects remain tempered. Management is optimistic that the recovery will continue[97](index=97&type=chunk) [Business Strategy](index=26&type=section&id=Business%20Strategy) The company's strategy focuses on market share expansion, product line growth, platform expansion, and improved productivity - The company's key business strategies include: - Expanding market share in core products (wallboard, ceilings, steel framing) - Growing complementary product lines to diversify offerings and increase margins - Pursuing platform expansion through greenfield openings and strategic acquisitions - Driving improved productivity and profitability by leveraging scale and technology[101](index=101&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Net sales grew significantly, driven by organic growth and acquisitions, with increased gross profit and improved SG&A leverage Net Sales by Product (in thousands) | Product | Q1 FY2023 | Q1 FY2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Wallboard | $521,554 | $390,135 | $131,419 | 33.7% | | Ceilings | $167,275 | $138,071 | $29,204 | 21.2% | | Steel framing | $274,896 | $196,276 | $78,620 | 40.1% | | Complementary products | $395,828 | $317,594 | $78,234 | 24.6% | | **Total net sales** | **$1,359,553** | **$1,042,076** | **$317,477** | **30.5%** | - Organic (base business) net sales grew by **24.1%** year-over-year, driven by inflationary pricing and volume growth. Recently acquired businesses contributed **$73.9 million** to net sales in the quarter[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - Gross profit increased by **29.4%** to **$434.7 million**, while gross margin slightly decreased to **32.0%** from **32.2%** in the prior year, attributed to the timing and elasticity of inflationary price-cost dynamics[112](index=112&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **25.0%** to **$267.7 million** due to higher sales volume, inflation, and acquisitions. However, SG&A as a percentage of net sales improved from **20.5%** to **19.7%**, indicating better operating leverage[115](index=115&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains adequate liquidity via cash flow and its ABL facility, with substantial borrowing capacity and ongoing share repurchases - The company depends on cash flow from operations, cash on hand, and its ABL Facility for liquidity. Management believes these sources are adequate to fund operations and growth strategies for at least the next twelve months[120](index=120&type=chunk) - As of July 31, 2022, the company had available borrowing capacity of approximately **$246.8 million** under its ABL Facility and **$23.4 million** under its Canadian Facility[121](index=121&type=chunk) - Under its expanded share repurchase program, the company repurchased **$23.8 million** of its common stock during the quarter. As of July 31, 2022, **$187.0 million** remained authorized for future repurchases[123](index=123&type=chunk) [Non-GAAP Financial Measures](index=33&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA significantly increased, and the Adjusted EBITDA margin expanded due to improved operating leverage Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Three Months Ended July 31, 2022 | Three Months Ended July 31, 2021 | | :--- | :--- | :--- | | Net income | $89,470 | $61,202 | | Interest expense | $14,661 | $13,657 | | Provision for income taxes | $32,030 | $19,971 | | Depreciation and amortization | $32,440 | $27,714 | | Other adjustments | $6,429 | $5,635 | | **Adjusted EBITDA** | **$175,014** | **$128,079** | | **Adjusted EBITDA Margin** | **12.9%** | **12.3%** | - Adjusted EBITDA increased **36.6%** to **$175.0 million** for the quarter, and Adjusted EBITDA margin expanded to **12.9%** from **12.3%** in the prior year, primarily due to better operating leverage as product price inflation outpaced operating cost inflation[105](index=105&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its exposure to market risks since its last Annual Report on Form 10-K for the fiscal year ended April 30, 2022 - There have been no material changes to the company's exposure to market risks from those reported in the Annual Report on Form 10-K for the fiscal year ended April 30, 2022[142](index=142&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of July 31, 2022. No material changes were made to the internal control over financial reporting during the quarter - Based on an evaluation as of July 31, 2022, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[144](index=144&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[145](index=145&type=chunk) [PART II: Other Information](index=36&type=section&id=PART%20II%20Other%20Information) [Item 1. Legal Proceedings](index=36&type=section&id=Item%201%20Legal%20Proceedings) The company is involved in various lawsuits in the normal course of business, none of which are expected to have a material adverse effect. It continues to manage asbestos-related personal injury lawsuits, with 988 of 1,037 cases filed since 2002 having been dismissed without payment - The company is not currently a party to any legal proceedings that management believes would have a material adverse effect on its business or financial condition[148](index=148&type=chunk) - Regarding historical asbestos-related claims, of the **1,037 lawsuits** filed since 2002, **988** have been dismissed without payment, **38** are pending, and **11** have been settled without material financial impact[148](index=148&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A%20Risk%20Factors) There have been no material changes in the risks facing the company as described in its Annual Report on Form 10-K for the fiscal year ended April 30, 2022 - There have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2022[149](index=149&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the three months ended July 31, 2022, the company repurchased a total of 516,285 shares of its common stock. This was executed under a publicly announced program, which was expanded on June 20, 2022, to authorize up to $200.0 million in repurchases Share Repurchases for the Three Months Ended July 31, 2022 | Period | Total Shares Purchased | Average Price Paid per Share | Remaining Authorization (in thousands) | | :--- | :--- | :--- | :--- | | May 2022 | 134,623 | $47.43 | $12,446 | | June 2022 | 177,509 | $45.86 | $196,285 | | July 2022 | 204,153 | $45.40 | $187,016 | | **Total** | **516,285** | | | - On June 20, 2022, the Board of Directors approved an expanded share repurchase program authorizing up to **$200.0 million** of its outstanding common stock, replacing a previous **$75.0 million** authorization[150](index=150&type=chunk) [Item 3. Defaults Upon Senior Securities](index=37&type=section&id=Item%203%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[151](index=151&type=chunk) [Item 4. Mine Safety Disclosures](index=37&type=section&id=Item%204%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[152](index=152&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205%20Other%20Information) The company reported no other information for the period - None[153](index=153&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206%20Exhibits) This section lists the exhibits filed as part of the quarterly report, including certifications from the CEO and CFO, and XBRL data files - The exhibits filed with this report include the CEO and CFO certifications pursuant to the Sarbanes-Oxley Act of 2002 and Inline XBRL documents[155](index=155&type=chunk) [Signatures](index=39&type=section&id=Signatures) The Quarterly Report on Form 10-Q was signed on September 1, 2022, by the Chief Financial Officer - The Quarterly Report on Form 10-Q was signed on September 1, 2022, by Scott M. Deakin, the Chief Financial Officer[157](index=157&type=chunk)[159](index=159&type=chunk)

Financial Data and Key Metrics Changes - The company reported a 30.5% increase in net sales year-over-year, reaching $1.4 billion for the quarter, with organic sales rising 24.1% [16][9] - Net income improved by 46.2%, while adjusted EBITDA grew by 36.6%, resulting in an adjusted EBITDA margin of 12.9%, up 60 basis points compared to the previous year [10][26] - Gross profit increased by 29.4% to $434.7 million, with a gross margin percentage of 32%, consistent with both the prior year and prior quarter [24][10] Business Line Data and Key Metrics Changes - Wallboard sales increased by 33.7% to $521.6 million, driven by a 24.8% increase in price and mix and an 8.8% increase in volume [16][17] - Ceiling tile and grid sales rose by 21.2% to $167.3 million, with an 18.1% benefit from price and mix and a 3.1% increase in volume [20] - Steel framing sales increased by 40.1% to $274.9 million, primarily due to a 47.3% benefit from price and mix, despite a 7.2% decline in volumes [21] Market Data and Key Metrics Changes - Both residential and commercial sales in the U.S. were up more than 27% organically year-over-year [16] - Multi-family volume gains of nearly 30% outpaced mid-single digit single-family volume growth [18] - The average realized wallboard price was $438 per 1,000 square feet, up more than 5% sequentially and almost 23% compared to the previous year [19] Company Strategy and Development Direction - The company is focused on four primary strategic priorities: expanding share in core products, growing complementary products, expanding through acquisitions, and driving improved productivity and profitability [11][12][13][14] - The company has acquired Construction Supply of Southwest Florida and opened new locations to enhance its service territory and product offerings [13] - The company plans to complete the upgrade of its ERP system by the end of the calendar year to improve inventory management and operational efficiency [14] Management's Comments on Operating Environment and Future Outlook - Management noted a significant contrast between current solid activity levels and potential slowdowns in the single-family market due to declining housing starts [34] - The company expects total net sales growth of roughly 20% for the fiscal second quarter, with gross margin percentage remaining consistent with Q1 [38] - Management remains confident in the company's position, citing a balanced split between commercial and residential revenues and a broadened geographic footprint [36] Other Important Information - The company had cash on hand of $106.6 million and $270.2 million of available liquidity under revolving credit facilities at quarter-end [28] - The effective tax rate increased to 26.4% from 24.6% in the previous year due to anticipated Canadian tax law changes [27] - The company repurchased approximately 516,000 shares for $23.8 million during the quarter, compared to 85,000 shares for $3.9 million in the prior year [31] Q&A Session Summary Question: What part of commercial is the strongest right now? - Management indicated that education, hospitality, and healthcare segments are improving, while large office high-rise projects are not accelerating [43] Question: How should we think about wallboard organic volume growth moving forward? - Management suggested that mid-single digit growth is appropriate for wallboard volume due to current industry conditions [52] Question: Can you discuss the current bidding environment? - Management noted that bidding levels remain moderately strong, with ongoing high levels of under-construction activity in residential markets [53] Question: How does the company view inventory replenishment given the current market dynamics? - Management expressed confidence in wallboard sales, which operate on a just-in-time basis, while being cautious with steel inventory purchases [57] Question: What are the drivers of higher free cash flow conversion this year? - Management attributed improved cash flow to reduced inventory buildup and lower cash consumption compared to the previous year [60] Question: Can you discuss the company's capital allocation strategy? - Management emphasized a disciplined approach to capital allocation, focusing on organic growth, M&A opportunities, and share repurchases [76]

Q1 2023 Earnings Call September 1, 2022 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," o ...

Jefferies Industrials Conference August 9, 2022 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," " ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Address of principal executive offices) (Zip code) FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Fiscal Year Ended April 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-37784 ______________________________________________________________ GMS INC. (Exact name of registrant as spe ...

Financial Data and Key Metrics Changes - The company achieved record levels of net sales, net income, and adjusted EBITDA for both Q4 and the full fiscal year 2022, with net sales increasing by 38% and net income improving by 126.7% [7][9] - Adjusted EBITDA grew by 69.1%, with an adjusted EBITDA margin of 12% representing a 220 basis point increase from the previous year [9][32] - Free cash flow reached $191.6 million, which was 124% of adjusted EBITDA, compared to 80% of adjusted EBITDA a year ago [9][34] Business Line Data and Key Metrics Changes - Wallboard sales increased by 30.3% in total, with a 27.7% increase in price and mix and a 4.6% increase in volume [21] - Ceiling tile and grid sales rose by 22.7% year-over-year, driven by a 20.9% benefit from price and mix [24] - Steel framing sales surged by 93.3%, primarily due to a 101.8% increase in price and mix, despite a 5.5% decline in volume [25] - Complementary product sales grew by 27.9% year-over-year, with organic sales up 11.1% [26] Market Data and Key Metrics Changes - Both residential and commercial sales in the U.S. were up nearly 40% organically year-over-year [21] - Multifamily volume growth remained strong, while single-family growth was constrained by supply chain delays [22] - The average realized wallboard price was $416 per 1000 square feet, up 26.5% from the fourth quarter of the previous year [23] Company Strategy and Development Direction - The company focuses on expanding its share in core products, growing complementary products, and enhancing its platform through acquisitions and greenfield openings [12][15] - Investments of approximately $350 million were made to acquire five specialty products distributors, enhancing the company's product offerings [15] - The company aims to improve productivity and profitability through technology and operational efficiencies [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the near-term outlook due to a solid backlog of residential demand, despite uncertainties in the broader economy [19][41] - The company anticipates some long-term softening in residential demand but remains optimistic about commercial construction improvements [42] - Management highlighted the importance of labor availability and project execution as key challenges in the commercial space [58] Other Important Information - The company announced an expanded share repurchase program, authorizing the repurchase of up to $200 million of outstanding common stock [36][38] - Cash from operating activities for Q4 was $199.5 million, significantly higher than the previous year's $84.8 million [34] Q&A Session Summary Question: Insights on wallboard pricing and expectations - Management indicated that wallboard prices are expected to improve sequentially, supported by recent manufacturer price increases and strong demand [54][55] Question: Expectations for non-residential market growth - Management noted that recovery in the non-residential market is muted due to increased costs and labor constraints, but there are positive signs for improvement [58][60] Question: Impact of residential backlog on business - Management expressed confidence that the residential backlog will sustain activity through the balance of the calendar year, despite potential declines in starts [66][68] Question: Thoughts on pricing power in a declining demand environment - Management stated that pricing power will depend on the degree of decline in homebuilding activity, with a moderate decline likely not significantly impacting pricing [74][76] Question: Discussion on steel pricing and volume expectations - Management expects some sequential declines in steel pricing but anticipates volume challenges due to project delays [81][85] Question: Insights on complementary products and lumber impact - Management indicated that organic growth in complementary products is primarily driven by price, with lumber's impact being minimal [99][100]

Q4 2022 Earnings Call June 23, 2022 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 "s ...

Raymond James Institutional Investors Conference March 8, 2022 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 ...

Financial Performance - Net sales for the three months ended January 31, 2022, were $1,153,595, an increase of 53.5% compared to $751,191 for the same period in 2021[17]. - Gross profit for the nine months ended January 31, 2022, was $1,075,475, representing a 39.8% increase from $768,853 in the same period of 2021[17]. - Operating income for the three months ended January 31, 2022, was $96,982, up 194.5% from $32,918 in the prior year[17]. - Net income for the three months ended January 31, 2022, was $61,383, compared to $16,126 for the same period in 2021, marking a 280.5% increase[17]. - Net income for the nine months ended January 31, 2022, was $196,946 thousand, compared to $71,814 thousand for the same period in 2021, representing an increase of 174%[26]. - Adjusted EBITDA for the three months ended January 31, 2022, was $135,055 thousand, up from $62,587 thousand in the prior year, reflecting a growth of approximately 115.5%[101]. - The net income for the nine months ended January 31, 2022, was $203.7 million, compared to $75.9 million for the same period in 2021, reflecting an increase of approximately 168.5%[56]. - The total net sales for the nine months ended January 31, 2022, amounted to $3,346,222 thousand, a significant increase from $2,366,620 thousand in the same period of 2021, reflecting a growth of about 41.3%[104]. Assets and Liabilities - Total assets as of January 31, 2022, were $3,086,180, an increase of 24.2% from $2,483,898 as of April 30, 2021[16]. - Total liabilities increased to $2,082,904 as of January 31, 2022, from $1,661,436 as of April 30, 2021, reflecting a 25.3% rise[16]. - Stockholders' equity as of January 31, 2022, was $1,003,276, up 21.9% from $822,462 as of April 30, 2021[16]. - The company’s long-term debt, less current portion, rose to $1,281,737 as of January 31, 2022, from $932,409 as of April 30, 2021, indicating a 37.4% increase[16]. - As of January 31, 2022, trade accounts and notes receivable totaled $700.3 million, up from $558.7 million as of April 30, 2021, indicating a growth of approximately 25.3%[59]. Cash Flow and Financing Activities - Cash used in operating activities for the nine months ended January 31, 2022, was $(19,887) thousand, a significant decrease compared to cash provided of $68,496 thousand in the same period of 2021[26]. - Cash used in investing activities totaled $(377,413) thousand for the nine months ended January 31, 2022, compared to $(16,675) thousand in the prior year[26]. - Cash provided by financing activities was $317,853 thousand for the nine months ended January 31, 2022, compared to cash used of $(114,652) thousand in the same period of 2021[26]. - Net borrowings under revolving credit facilities amounted to $359.2 million during the nine months ended January 31, 2022, compared to net repayments of $87.4 million in the prior year[159]. Acquisitions and Growth - The Company acquired Westside Building Material for a preliminary consideration of $140.1 million, aimed at expanding geographical coverage and business growth[47]. - The acquisition of Ames Taping Tools Holding LLC was completed for a preliminary consideration of $224.5 million, primarily funded through borrowings, to enhance the Company's product offerings[52]. - The company completed five acquisitions and opened seven greenfield locations during the nine months ended January 31, 2022, expanding its geographic footprint[120]. - The company acquired Westside Building Material for $139.6 million on July 1, 2021, enhancing its distribution network in California and Nevada[120]. - The acquisition of Ames Taping Tools Holding LLC was completed for $224.5 million on December 1, 2021, strengthening the company's position in the automatic taping and finishing tools market[121]. Inventory and Sales Trends - The company’s inventories increased to $585,351 as of January 31, 2022, from $357,054 as of April 30, 2021, representing a 64.0% increase[16]. - Inventory levels have increased due to supply chain constraints, but the Company anticipates a return to normal levels as these constraints ease in future quarters[112]. - The company experienced strong demand for residential products, driven by favorable demographics and low interest rates, with expectations for continued demand throughout calendar year 2022[111]. - Commercial project demand is slowly recovering, with optimism for a rebound in hospitality and larger office projects later in the year[113]. - Steel framing sales increased by 172.0% for the three months ended January 31, 2022, compared to the prior year, driven by commercial construction activity[126]. - Wallboard sales increased by 25.8% to $1,219,789, ceilings sales rose 26.7% to $418,831, and steel framing sales surged 130.5% to $751,040[138]. Shareholder Activities - The company repurchased approximately 367,000 shares of common stock for $17.9 million during the nine months ended January 31, 2022, compared to 80,000 shares for $2.0 million in the same period of 2021[82]. - The company had $36.5 million remaining under its stock repurchase authorization as of January 31, 2022[82]. - The share repurchase program has an authorized amount of up to $75.0 million for outstanding common stock[179]. - The company may conduct repurchases through open market transactions and privately negotiated transactions[179]. Tax and Compliance - The effective income tax rate for GMS Inc. was 24.8% for the nine months ended January 31, 2022, compared to 24.7% for the same period in 2021, primarily due to state and foreign taxes[78]. - GMS Inc. had a valuation allowance of $11.9 million against its deferred tax assets as of January 31, 2022, slightly up from $11.8 million as of April 30, 2021[79]. - GMS Inc. was in compliance with all covenants related to its Term Loan Facility and Senior Notes as of January 31, 2022[71][72].

GMS Inc. (NYSE:GMS) Q3 2022 Earnings Conference Call March 3, 2022 8:30 AM ET Company Participants Carey Phelps - Vice President, Investor Relations John Turner - President & Chief Executive Officer Scott Deakin - Vice President & Chief Financial Officer Conference Call Participants David Manthey - Baird Noah Merkousko - Stephens Matthew Bouley - Barclays Steven Ramsey - Thompson Research Kevin Hocevar - Northcoast Research Chris Kalata - RBC Capital Operator Greetings, and welcome to the GMS Third Quarter ...