On June 22, Tucker, Georgia-based building products distributor GMS Inc. reported financial results for its fourth quarter and fiscal year, which ended April 30.
Net sales for 4Q of fiscal 2023 were $1.3 billion, an increase of 1.2% compared with the prior-year quarter. This was primarily due to “strong levels of multi-family construction activity, continued recovery in commercial construction and resilient pricing in Wallboard, Ceilings and Complementary Products, partially offset by declining single-family construction demand and lower year-over-year prices in Steel framing,” the company said.
Organic net sales for 4Q increased 0.7%. Excluding the impact from one less selling day in 4Q of fiscal 2023 compared to the same period a year ago, net sales and organic net sales were up 2.8% and 2.2%, respectively.
Net income for 4Q was $75.6 million, a decrease of 1.2% from $76.5 million a year ago.
Gross profit in 4Q was $424.5 million, an increase of 2.8% compared to 4Q of fiscal 2022, and gross margin improved 50 basis points to 32.5%. These changes were primarily due to the “successful pass through of product price inflation, favorable product mix from strong multi-family conditions and improving commercial Wallboard demand,” GMS said.
“GMS’s fourth quarter results marked a solid finish to a year of record full-year levels of net sales, net income, adjusted EBITDA and cash flow generation,” said John C. Turner, Jr., President and CEO of GMS. “Our scale and balanced mix of products and customers enabled us to capitalize on strong demand in multi-family residential and continued growth in commercial. These demand tailwinds, coupled with favorable pricing in Wallboard, Ceilings and Complementary Products, contributed to our record results despite significantly lower steel prices and soft single-family residential activity in the back half of our fiscal year. Plus, our team closed out the year with our ninth straight quarter of year-over-year growth in Adjusted EBITDA despite having one less selling day in the quarter.”
For its full fiscal 2023 year, the company reported net sales of more than $5.3 billion, a 15% increase over fiscal 2023. Net income of $333 million increased 21.8% compared to net income of $273.4 million the prior year.
GMS ranks No. 9 for building materials/construction distributors on MDM’s 2023 Top Distributors Lists.