GMS’ 1Q Sales Improve 30%

GMS doubled its net income in the first quarter as it continued to benefit from a strong residential market.
TriMas 1Q 2022 earnings

On Thursday, GMS Inc. (NYSE: GMS), Tucker, Georgia, reported first-quarter sales of $1 billion, which marked a 29.8% increase over the same quarter a year ago. The company’s net income was $61.2 million, or $1.39 per share, compared to $27.2 million, or $0.63 per share, last year. Adjusted EBITDA of $128.1 million increased 54.2% in the quarter that ended July 31.

“GMS’outstanding performance continued, as we delivered another quarter of record net sales, net income and Adjusted EBITDA, including recording more than a billion dollars in quarterly net sales for the first time in the Company’s history,” said John C. Turner, Jr., President and Chief Executive Officer. “We are continuing to benefit from a robust residential market, an inflationary environment and strong demand for our complementary products, while our team’s solid execution of our strategic growth priorities helped offset continuing softness in many commercial markets.

“We successfully navigated a very dynamic business environment, while leveraging our scale and operational strength to ensure the continuity of supply needed to provide best-in-class service to our customers. This resulted in greater profitability, including more than double the net income and 200 basis points of improvement in adjusted EBITDA margin compared to the first quarter of fiscal 2021.”

Last month, GMS announced it had completed deals to buy DK&B Construction Specialties’ EIFS division and Architectural Coatings Distributors, Inc., as well as the recent openings of five greenfield locations. GMS also bought Architectural Coatings Distributors, Inc. (ACD) on June 8 and completed its $135 million deal to buy Westside Building Material in July.

“As we look ahead to the remainder of fiscal 2022 and beyond, we expect to continue both greenfields and acquisitions to enter underserved markets and boost our product offering” Turner said. “I am confident that our focus on our strategic priorities and our team’s continued drive to execute will position us to generate value for our shareholders well into the future.”

Founded in 1971, GMS operates a network of more than 280 distribution centers across the United States and Canada. GMS’ product offerings include wallboard, ceilings, steel framing and complementary construction products.

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