Company profile

Ticker
GMS
Exchange
Website
CEO
John C. Turner
Employees
Incorporated in
Location
Fiscal year end
Former names
GYP Holdings I Corp.
SEC CIK

GMS stock data

(
)

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

5 Dec 19
11 Dec 19
30 Apr 20

News

Company financial data Financial data

Quarter (USD) Oct 19 Jul 19 Apr 19 Jan 19
Revenue 861.93M 847.18M 780.15M 723.9M
Net income 29.14M 24.82M 16.63M 5.82M
Diluted EPS 0.68 0.59 0.39 0.14
Net profit margin 3.38% 2.93% 2.13% 0.80%
Operating income 54.52M 49.75M 36.22M 25.83M
Net change in cash 12.15M -23.22M -27.01M 21.47M
Cash on hand 36.27M 24.12M 47.34M 74.35M
Annual (USD) Apr 19 Apr 18 Apr 17 Apr 16
Revenue 3.12B 2.51B 2.32B
Net income 56M 62.97M 48.89M 12.56M
Diluted EPS 1.31 1.49 1.19 0.38
Net profit margin 1.80% 2.51% 2.11%
Operating income 147.2M 119.17M 104.25M 58.91M
Net change in cash 10.9M 21.88M -4.51M 6.79M
Cash on hand 47.34M 36.44M 14.56M 19.07M

Financial data from GMS earnings reports

Financial report summary

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Risks
  • Our business is affected by general business, financial market and economic conditions, which could adversely affect our results of operations.
  • Our sales are in part dependent upon the commercial new construction market and the commercial R&R market.
  • Our sales are also in part dependent upon the residential new construction market and home R&R activity.
  • Our industry and the markets in which we operate are highly fragmented and competitive, and increased competitive pressure may adversely affect our results.
  • We are subject to significant pricing pressures.
  • The trend toward consolidation in our industry may negatively impact our business.
  • We may be unable to successfully implement our growth strategy, which includes pursuing strategic acquisitions and opening new branches.
  • We may not be able to expand into new geographic markets, which may impact our ability to grow our business.
  • We may be unable to fully realize expected benefits from our recent acquisition of Titan.
  • Product shortages, loss of key suppliers or failure to develop relationships with qualified suppliers, and our dependence on third-party suppliers and manufacturers could affect our financial health.
  • The commercial and residential construction markets are seasonal.
  • The loss of any of our significant customers or a reduction in the quantity of products they purchase could affect our financial health.
  • We are exposed to product liability, warranty, casualty, construction defect, contract, tort, employment and other claims and legal proceedings related to our business, the products we distribute, the services we provide and services provided for us by third parties.
  • Our operations are subject to various hazards that may cause personal injury or property damage and increase our operating costs, and which may exceed the coverage of our insurance.
  • Failure to attract and retain key employees could have a significant adverse effect on our business.
  • Higher health care costs and labor costs could adversely affect our business.
  • The majority of our net sales are credit sales that are made primarily to customers whose ability to pay is dependent, in part, upon the economic strength of the industry and geographic areas in which they operate, and the failure to collect or timely collect monies owed from customers could adversely affect our financial condition.
  • We occupy many of our facilities under long-term non-cancellable leases, and we may be unable to renew our leases at the end of their terms.
  • We may be unable to effectively manage our inventory and working capital as our sales volume increases or the prices of the products we distribute fluctuate, which could have a material adverse effect on our business, financial condition and operating results.
  • An impairment of goodwill could have a material adverse effect on our financial condition and results of operations.
  • Federal, state, provincial, local and other regulations could impose substantial costs and restrictions on our operations that would reduce our net income.
  • Compliance with environmental, health and safety laws and regulations could be expensive. Failure to comply with environmental, health and safety laws and regulations could subject us to significant liability.
  • Any significant fuel cost increases or shortages in the supply of fuel could disrupt our ability to distribute products to our customers, which could adversely affect our results of operations.
  • Cybersecurity breaches could harm our business.
  • A disruption of our IT systems could adversely impact our business and operations.
  • Natural or man-made disruptions to our facilities may adversely affect our business and operations.
  • We may have exposure to greater than anticipated tax liabilities and we may be limited in the use of our net operating losses in the future.
  • Trade policies could make sourcing product from foreign countries more difficult or more costly.
  • The agreements that govern our indebtedness contain various financial covenants that could limit our ability to engage in activities that may be in our best long-term interests.
  • Our current indebtedness, degree of leverage and any future indebtedness we may incur, may adversely affect our cash flow, limit our operational and financing flexibility and negatively impact our business and our ability to make payments on our indebtedness and declare dividends and make other distributions.
  • Despite our current level of indebtedness, we may still be able to incur substantially more debt.
  • An increase in interest rates would increase the cost of servicing our debt and could reduce our profitability.
  • We may have future capital needs that require us to incur additional debt and may be unable to obtain additional financing on acceptable terms, if at all.
  • Because we are a holding company with no operations of our own, we are financially dependent on receiving distributions from our subsidiaries and we could be harmed if such distributions could not be made in the future.
  • The market price of our common stock may be highly volatile.
  • We may be subject to securities litigation, which is expensive and could divert management attention.
  • AEA may influence major corporate decisions or their interests may conflict with the interests of other holders of our common stock.
  • Sales of a substantial number of shares of our common stock in the public market could cause our stock price to fall.
  • We do not intend to pay dividends on our common stock in the foreseeable future.
  • Some provisions of our charter documents and Delaware law may have anti-takeover effects that could discourage an acquisition of us by others, even if an acquisition would be beneficial to our stockholders, and may prevent attempts by our stockholders to replace or remove our current management.
  • Our second amended and restated certificate of incorporation designates the Court of Chancery of the State of Delaware as the exclusive forum for certain litigation that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us.
Management Discussion
  • Net sales of $861.9 million increased $28.1 million, or 3.4%, during the three months ended October 31, 2019 compared to the three months ended October 31, 2018. The increase in net sales was due to the following:
  • Organic net sales increased $22.1 million, or 2.7%, during the three months ending October 31, 2019 compared to the prior year period primarily driven by an increase in sales in the United States as a result of the improvement in new housing starts, R&R activity and commercial construction, partially offset by a decline in sales in Canada, which was primarily related to softness in the Canadian single-family housing market.
  • Beginning in fiscal 2020, we modified our calculation of organic sales growth. When calculating organic sales growth for the current period, we now exclude the net sales of acquired businesses until the first anniversary of the acquisition date. In addition, we exclude the impact of foreign currency translation in our calculation of organic net sales growth. Previously, we excluded net sales of businesses acquired in the current fiscal year, the prior fiscal year and three months prior to the start of the prior fiscal year.
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New words: deflation, emphasizing, growing, highest, Kingston, landscaping, masonry, nominate, Ontario, Rigney, September, unchanged
Removed: borrower, constitute, GYP, III, inclusion, influence, lead, Lending, manufacturer, reinvest, return, warrantied, withholding