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GMS(GMS) - 2025 Q2 - Quarterly Results
GMSGMS(GMS)2024-12-05 11:06

Financial Performance - Net sales for the second quarter of fiscal 2025 were 1.5billion,anincreaseof3.51.5 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 1.35perdilutedshare,withanetincomemargindeclineof200basispointsto3.61.35 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 15.3millionor9.215.3 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 124,798thousand,reflectingadeclineof24124,798 thousand, reflecting a decline of 24% year-over-year[36] - Net income for the quarter was 53,536 thousand, down 33.8% from 80,957thousandintheprioryear[36]−Basicnetincomepersharewas80,957 thousand in the prior year[36] - Basic net income per share was 1.37, compared to 2.00inthesamequarterlastyear,representingadecreaseof31.52.00 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 80,957thousandforthesameperiodin2023[52]−AdjustedEBITDAforthesixmonthsendedOctober2024was80,957 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 340,856thousandforthesameperiodin2023[52]−AdjustednetincomeforthethreemonthsendedOctober2024was340,856 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 98,448thousandforthesameperiodin2023[59]−NetincomeforthelasttwelvemonthsendedOctober31,2023,was98,448 thousand for the same period in 2023[59] - Net income for the last twelve months ended October 31, 2023, was 219,076, down from 308,155inthepreviousperiod,representingadecreaseofapproximately29308,155 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 118.1millionintheprioryear,whilefreecashflowwas118.1 million in the prior year, while free cash flow was 101.5 million compared to 102.1million[21]−Cashprovidedbyoperatingactivitieswas102.1 million[21] - Cash provided by operating activities was 92.662 million, down 25.7% from 124.747millionyear−over−year[41]−Cashusedininvestingactivitiestotaled124.747 million year-over-year[41] - Cash used in investing activities totaled 233.189 million, significantly higher than 83.809millioninthepreviousyear,primarilyduetobusinessacquisitions[41]−Cashprovidedbyfinancingactivitieswas83.809 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 128.778millioninthesamequarterlastyear[41]−Cashandcashequivalentsdecreasedto128.778 million in the same quarter last year[41] - Cash and cash equivalents decreased to 83,928 thousand from 166,148thousand,indicatingasignificantreductioninliquidity[38]−Cashandcashequivalentsroseto166,148 thousand, indicating a significant reduction in liquidity[38] - Cash and cash equivalents rose to 83,928, up from 76,517,showinganincreaseofabout976,517, 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 217.4million[11][13]−Totalnetsalesforthequarterreached217.4 million[11][13] - Total net sales for the quarter reached 1.471 billion, representing a 3.5% increase from 1.421billioninthesamequarterofthepreviousyear[44]−Wallboardsalesaccountedfor39.61.421 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 585.174millionintheprioryear[46]−Steelframingsaleswere585.174 million in the prior year[46] - Steel framing sales were 217.388 million, down 6.3% from 232.108millionyear−over−year,representing14.8232.108 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 300.9million,withasignificantportionattributedtorecentacquisitionsandseverancecosts[16]−Selling,generalandadministrativeexpenseforthethreemonthsendedOctober2024was300.9 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 18,742thousandforthesameperiodin2023[52]−Interestexpenseincreasedto18,742 thousand for the same period in 2023[52] - Interest expense increased to 83,715 from 72,783,whichisanincreaseofabout1572,783, which is an increase of about 15%[62] - Depreciation expense rose to 75,673, compared to 64,416,reflectinganincreaseofapproximately1764,416, 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 1,426,564thousandfrom1,426,564 thousand from 1,229,726 thousand, reflecting a rise of 16%[38] - Total debt increased significantly to 1,481,446from1,481,446 from 1,076,050, reflecting a rise of about 37.5%[62] - Net debt increased to 1,397,518from1,397,518 from 999,533, reflecting a rise of about 40%[62] Strategic Initiatives - The company renewed its share repurchase program, authorizing up to 250millionforrepurchaseofoutstandingcommonstock[6]−ThecompanysuccessfullyacquiredR.S.ElliottSpecialtySupply,enhancingitsdistributioncapabilitiesinFlorida[24]−ThecompanyopenednewgreenfieldlocationsinSummerville,SC,Middleton,MA,andClackamas,OR,expandingitsserviceandproductofferings[25]−Thecompanyplanstocontinuefocusingonmarketexpansionandnewproductdevelopmenttodrivefuturegrowth[41]OtherFinancialMetrics−Totalassetsincreasedto250 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 3,759,840thousandasofApril30,2024[38]−Currentliabilitiesdecreasedslightlyto3,759,840 thousand as of April 30, 2024[38] - Current liabilities decreased slightly to 748,697 thousand from 757,050thousand,indicatingimprovedshort−termfinancialstability[38]−Thecompanyreportedatotalstockholders′equityof757,050 thousand, indicating improved short-term financial stability[38] - The company reported a total stockholders' equity of 1,469,307 thousand, a slight increase from 1,460,521thousand[38]−EBITDAadjustmentstotaled1,460,521 thousand[38] - EBITDA adjustments totaled 38,288, up from 27,906,indicatinganincreaseofabout3727,906, 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]