GMS(GMS) - 2025 Q3 - Quarterly Report

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$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$1,352,873 as of January 31, 2025, compared to $1,229,726 as of April 30, 2024, an increase of 10.0$1,393,608 as of January 31, 2025, from $1,460,521 as of April 30, 2024, a decline of 4.6$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$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]