GMS Inc. (GMS) Misses Q4 EPS by 4c, Revenues Miss

GMS Inc. (NYSE: GMS) reported Q4 EPS of $0.68, $0.04 worse than the analyst estimate of $0.72. Revenue for the quarter came in at $780.1 million versus the consensus estimate of $784.06 million.

• Net sales of $780.1 million increased 22.7% from $635.8 million in the fourth quarter of the prior fiscal year. Organic net sales increased 7.0% year over year as a result of higher volumes and pricing improvement across all product groups.
• Reported net income of $16.6 million, or $0.39 per diluted share, compared to $9.9 million, or $0.24 per diluted share, in the fourth quarter of the prior fiscal year.
• Adjusted net income of $28.7 million, or $0.68 per diluted share, compared to $23.5 million, or $0.56 per diluted share, in the fourth quarter of the prior fiscal year.
• Adjusted EBITDA of $73.5 million, or 9.4% of net sales compared to Adjusted EBITDA of $50.1 million, or 7.9% of net sales, in the fourth quarter of the prior fiscal year.
• Cash provided by operating activities of $88.2 million and free cash flow of $82.8 million increased from $24.9 million and $14.6 million, respectively, in the fourth quarter of the prior fiscal year.
• Net leverage decreased to 3.6 times at the end of the fourth quarter of fiscal 2019 from 3.8 times at the end of the third quarter of fiscal 2019.
• The Company completed one business acquisition and four greenfield openings during the fourth quarter of fiscal 2019.
• The Company repurchased $5.0 million of common stock during the fourth quarter of fiscal 2019.

“We were pleased to deliver a strong finish to fiscal 2019 with record net sales and earnings for our fourth fiscal quarter,” said Mike Callahan, Chief Executive Officer. “Strong organic sales growth of 7.0% reflects higher volumes and pricing across all our product groups. Activity levels across our end markets in the United States remain solid and continue to exhibit healthy fundamentals. While long-term factors contributing to housing demand and overall economic growth for Canada remain positive, we currently face some challenging conditions in the Canadian single-family housing market. We generated significant cash from operations and free cash flow in the quarter, enabling us to execute on our capital allocation priorities, which include reducing our net leverage, expanding through accretive acquisitions and greenfield investments and repurchasing our common stock.”

Mr. Callahan continued, “We made significant progress throughout fiscal 2019 on a number of fronts, surpassing $3.0 billion in net sales through both organic growth and acquisitions, including the strategic acquisition of WSB Titan, which increased our scale and footprint in North America, provided entry into the highly attractive Canadian market, and created a well-balanced platform for long-term growth. At the same time, we significantly improved our operating leverage in fiscal 2019. We believe our market-leading position, broad product portfolio and diversified exposure across attractive commercial and residential new and R&R construction markets will enable us to continue to take advantage of further growth opportunities.”

For earnings history and earnings-related data on GMS Inc. (GMS) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Star Equity Holdings (STRR) Misses Q2 EPS by 8c
• Diana Shipping drops bid for Genco after price demands spike to $36.91