GMS Inc. (GMS) Tops Q3 EPS by 1c, Revenues Beat

GMS Inc. (NYSE: GMS) reported Q3 EPS of $0.52, $0.01 better than the analyst estimate of $0.51. Revenue for the quarter came in at $761.4 million versus the consensus estimate of $757.72 million.

Third Quarter Fiscal 2020 Highlights

• Net sales of $761.4 million increased 5.2% from $723.9 million in the third quarter of the prior fiscal year. Organic net sales increased 3.8% year over year.
• Reported net income of $10.9 million, or $0.25 per diluted share, compared to $5.8 million, or $0.14 per diluted share, in the third quarter of the prior fiscal year.
• Adjusted net income of $22.2 million, or $0.52 per diluted share, compared to $17.3 million, or $0.41 per diluted share, in the third quarter of the prior fiscal year.
• Adjusted EBITDA of $62.7 million, or 8.2% of net sales, compared to Adjusted EBITDA of $59.7 million, or 8.2% of net sales, in the third quarter of the prior fiscal year.
• The company completed one acquisition and two greenfield location openings during the third quarter of fiscal 2020.
• Net leverage was reduced to 3.3 times as of the end of the third quarter of fiscal 2020 from 3.5 times as of the end of the second quarter of fiscal 2020.
• Cash provided by operating activities and free cash flow for the third quarter of fiscal 2020 totaled $65.4 million and $59.2 million, respectively, representing increases of 9.5% and 6.6%, respectively, from the third quarter of fiscal 2019.
• Cash provided by operating activities and free cash flow for the first nine months of fiscal 2020 totaled $135.4 million and $114.5 million, respectively, representing increases of 28.4% and 24.4%, respectively, from the first nine months of fiscal 2019.

“GMS’s third quarter results demonstrate our team’s momentum and effective execution and we remain focused on our strategic priorities in order to further capitalize on the growth opportunities in our industry,” said John C. Turner, Jr., President and Chief Executive Officer. “We generated robust volume growth across all product groups, expanded gross margin and delivered higher net income and Adjusted EBITDA. We were pleased to complete another acquisition and additional greenfield openings during the quarter, as we continue to pursue prudent geographic and market share expansion. At the same time, we continued to utilize our strong cash from operations and free cash flow to further reduce debt. Conditions in our construction end markets presently remain favorable in the United States, and we are encouraged by signs of stabilization in Canada. As we look forward, we remain optimistic in our market position and ability to create long-term value for our shareholders.”

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

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