GMS Inc. (GMS) Tops Q2 EPS by 13c, Revenues Miss

GMS Inc. (NYSE: GMS) reported Q2 EPS of $0.94, $0.13 better than the analyst estimate of $0.81. Revenue for the quarter came in at $802.6 million versus the consensus estimate of $817.16 million.

First Quarter Fiscal 2021 Highlights
(Comparisons are to the first quarter of fiscal 2020, except where noted.)

• Net sales of $802.6 million decreased 5.3%; organic net sales decreased 5.7%.
• Gross margin of 32.5% improved 20 basis points.
• Net income of $27.2 million, or $0.63 per diluted share, increased 9.7%.
• Adjusted net income of $40.3 million, or $0.94 per diluted share, increased 7.5%.
• Adjusted EBITDA margin of 10.3% improved 40 basis points.
• Net debt leverage was 3.0 times as of the end of the first quarter of fiscal 2021 compared to 2.9 times as of the end of the fourth quarter of fiscal 2020 and 3.7 times as of the end of the first quarter of fiscal 2020.
• As of July 31, 2020, the Company had cash on hand of $139.7 million, and $372.5 million of available liquidity under its revolving credit facilities.

“Our first quarter results reflect outstanding execution by our entire team against the backdrop of a business environment that remained challenging throughout the period,” said John C. Turner, Jr., President and Chief Executive Officer. “Despite lower sales resulting from the impact of the COVID-19 pandemic on our business and overall industry, we generated higher net income and Adjusted net income compared to the first quarter of last fiscal year, as well as year-over-year expansion of both gross margin and Adjusted EBITDA margin. This improvement is a result of the rapid alignment of our cost structure to current demand, our balanced product and market mix, which has been strengthened through execution of our growth initiatives, and a relentless focus on serving our customers with operational excellence. At the same time, the health and safety of our employees, business partners and communities remains our top priority, and all of us at GMS continue to express our gratitude to all those who have been and continue to be on the frontlines every day during these unprecedented times.”

Mr. Turner continued, “While there is continued uncertainty regarding the near-term outlook for the construction industry and the broader economy, I am confident in our team’s ability to continue to quickly and nimbly address challenges and leverage opportunities. We firmly believe the foundation we have built at GMS, coupled with our strong liquidity and ability to generate cash, positions us well for the duration of this period and for the long term.”

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

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