Tucker, Georgia-based specialty building products distributor GMS reported its fiscal 2024 first-quarter earnings, which showed net sales of $1.4 billion — an increase of 3.7% over the same quarter last year — while organic net sales increased 1.0%.
Net income for fiscal 1Q was $86.8 million, or $2.09 per diluted share, a decrease of 3.0% compared to last year. Net income margin declined 40 basis points to 6.2%, while adjusted net income was $99.6 million, or $2.40 per diluted share, compared to $105.2 million in the same quarter a year ago.
Adjusted EBITDA was $173.3 million, a decrease of $1.7 million, or 1.0%. Adjusted EBITDA margin was 12.3%, compared to 12.9% a year ago.
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“We were pleased to deliver a solid start to fiscal 2024 with first quarter results that were in line with our expectations, continuing to demonstrate the resilience of pricing in Wallboard, Ceilings and Complementary Products, as well as the strength and stability that our balanced end markets provide,” said John C. Turner, Jr., President and CEO of GMS. “Multi-family and commercial construction demand remained solid during the quarter, which helped to offset declines in steel pricing and tempered single-family demand as we felt the impacts of the lower level of housing starts recorded earlier this year and in the latter half of calendar 2022.”
Year-over-year quarterly sales changes by product category:
- Wallboard sales were $571.4 million, an increase of 9.6% (up 9.3% on an organic basis).
- Ceilings sales were $175.2 million, an increase of 4.7% (up 2.0% on an organic basis).
- Steel Framing sales were $236.8 million, a decrease of 13.9% (down 15.0% on an organic basis).
- Complementary Product sales were $426.2 million, an increase of 7.7% (up 0.7% on an organic basis).
GMS kicked off its fiscal 2024 1Q by announcing the acquisition of Home Lumber & Building Supplies in British Columbia, its fourth completed deal of 2023.
On Aug. 25, the company published its inaugural Corporate Social Responsibility Report to outline its commitments to environmental, social, and governance practices.