GMS Inc. (GMS) Tops Q2 EPS by 2c, Revenues Beat

GMS Inc. (NYSE: GMS) reported Q2 EPS of $0.93, $0.02 better than the analyst estimate of $0.91. Revenue for the quarter came in at $812.9 million versus the consensus estimate of $798.05 million.

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

• Net sales of $812.9 million decreased 5.7%; organic net sales decreased 6.4%. On a per day basis, net sales and organic net sales declined 4.2% and 5.0%, respectively.
• Net income of $28.5 million, or $0.66 per diluted share; adjusted net income of $40.2 million, or $0.93 per diluted share.
• SG&A and Adjusted SG&A as a percentage of sales were 23.2% and 22.5%, representing 10 and 20 basis points of improvement, respectively.
• Adjusted EBITDA of $82.5 million, or 10.2% of sales, compared to $89.9 million, or 10.4% of sales.
• The Company opened one new greenfield location during the second quarter of fiscal 2021.
• Net debt leverage was 3.0 times as of the end of the second quarter of fiscal 2021.
• Cash provided by operating activities and free cash flow totaled $39.8 million and $32.7 million, respectively.
• As of October 31, 2020, the Company had cash on hand of $118.2 million, and $415.4 million of available liquidity under its revolving credit facilities.

“Outstanding execution by our entire team enabled us to generate solid second quarter results, with net sales levels exceeding our earlier expectations,” said John C. Turner, Jr., President and Chief Executive Officer. “The overall operating environment remained challenged throughout the period, particularly with respect to commercial construction, although we realized benefits from the strong residential market. A disciplined alignment of our cost structure to current demand enabled us to improve SG&A and Adjusted SG&A as a percentage of sales while maintaining a relentless focus on serving our customers. Additionally, we continued to advance our strategic growth initiatives in the second quarter, as evidenced by the opening of a new greenfield location and generating yet another quarter of positive sales growth in our complementary Other products category, despite the difficult market conditions.”

Turner continued, “Looking ahead, the safety of our employees, customers and communities remains our top priority. I am confident in our team’s ability to continue to leverage opportunities, address challenges and ensure that GMS remains well-positioned to generate value for our shareholders.”

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

You May Also Be Interested In

• IBM tumbles on soft Q1 revenue; announces HashiCorp $6.4bn acquisition
• First Mid Bancshares, Inc. (FMBH) Tops Q1 EPS by 8c
• Ball Corporation (BALL) Raises Dividend, Enters 40M Share Buyback, Announces Management Changes