GMS Stock Gains As Q1 Results Surpass Estimates

GMS Inc GMS reported first-quarter FY22 net sales growth of 29.8% year-over-year to $1.04 billion, +23.2% on an organic basis, beating the consensus of $975.29 million.
On a per day basis, net sales increased 31.9%, and organic net sales increased 25.2%.
Sales by product groups: Wallboard $390.14 million (+18.9% Y/Y), Ceilings $138.07 million (+20.4% Y/Y), Steel framing $196.28 million (+77.6% Y/Y) and Complementary products $317.59 million (+27.4% Y/Y).
Adjusted EPS increased to $1.67 from $0.94 in 1Q21, beating the consensus of $1.26.
The gross margin contracted by 30 bps to 32.2%.
The operating income increased by 87.1% Y/Y to $94.04 million, and the margin expanded by 276 bps to 9%.
GMS' cash used in operating activities year-to-date was $75.08 million, compared to $15.71 million a year ago. Free cash outflow of $81.89 million.
Adjusted EBITDA increased by 54.2% Y/Y to $128.08 million, and margin expanded by 200 bps to 12.3%.
Net debt leverage was 2.7 times as of the end of the quarter, down from 3.0 times a year ago.
SG&A as a percentage of sales was 20.5%, reflecting an improvement of 230 bps.
The company had cash on hand of $43.6 million, total debt of $1.1 billion, and $354.6 million of available liquidity under its revolving credit facilities as of July 31, 2021.
Price Action: GMS shares traded higher by 4.39% at $50.64 on the last check Thursday.

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