Thu, Aug 29, 8:07 PM (138 days ago)
For the quarter ended July 31, 2024, GMS Inc. reported net sales of $1,448,456, a 2.8% increase from the prior year, primarily driven by recent acquisitions and resilient pricing in key product lines. However, net income decreased by 34.1% to $57,248 due to increased operating expenses and a decline in gross margins, reflecting price pressures in steel and shifts in product mix. Adjusted EBITDA fell 15.8% to $145,881, with an adjusted margin of 10.1%. The company’s cash flow from operations was negative at $(22,939), influenced by lower net income and increased interest payments. Investing activities saw a significant rise in cash outflows, largely due to acquisitions totaling $118,461. Despite these challenges, GMS maintains a strong liquidity position with $565.3 million available under its ABL Facility. The company also implemented a cost reduction plan expected to yield $25 million in annual savings. Future operations may be impacted by ongoing inflationary pressures and economic uncertainties affecting construction markets.