- GMS Inc (NYSE:GMS) reported third-quarter FY22 net sales growth of 53.6% year-over-year to $1.15 billion, +41.5% on an organic basis, beating the consensus of $1.13 billion.
- Adjusted EPS increased to $1.74 from $0.60 in 3Q21, in line with the consensus of $1.74.
- The gross margin contracted by 50 bps to 31.9%. Operating income increased to $96.98 million, from $32.92 million in 3Q21, and margin expanded by 402 bps to 8.4%.
- Sales by product groups: Wallboard $415.1 million (+33.4% Y/Y), Ceilings $139.9 million (+34.9% Y/Y), Steel framing $282.8 million (+172% Y/Y) and Complementary products $315.8 million (+35.9% Y/Y).
- For the quarter, cash provided by operating activities and free cash flow were $57.2 million and $40.2 million, respectively.
- Adjusted EBITDA increased by 115.8% Y/Y to $135.1 million, and the margin expanded by 340 bps to 11.7%.
- Net debt leverage was 2.3 times as of the end of the quarter, down from 2.9 times a year ago.
- Adjusted SG&A as a percentage of sales was 20.4% compared to 24.2% last year same quarter.
- The company had cash on hand of $87 million, total debt of $1.3 billion, and $183.2 million of available liquidity under its revolving credit facilities at the end of the quarter.
- Price Action: GMS shares closed higher by 5.67% at $56.29 on Wednesday.
