GMS(US:GMS)2022-03-03 21:35Financial 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].