GMS Inc. Shakes Up Board of Directors

GMS Inc. (NYSE: GMS) has announced the appointment of Brad Southern to its board of directors, effective January 19, 2024. Southern, who currently serves as the Chief Executive Officer and board member of Louisiana-Pacific Corporation, brings extensive industry experience and financial expertise to the role. His appointment increases the size of the board from nine to ten directors. In addition, Peter Browning will not stand for reelection at the 2024 annual meeting of stockholders.

John J. Gavin, GMS's non-executive chair, expressed his enthusiasm about Southern's appointment, stating, "We are pleased to add an individual with such a wealth of building materials industry experience and extensive financial expertise. We are confident he will be a valuable addition to the GMS board and look forward to benefiting from his insights and perspectives alongside our other directors. I also want to thank Peter for his many years of dedicated service to GMS and the leadership he's provided and will continue to provide in the boardroom until his retirement later this year."

GMS, founded in 1971, operates a network of over 300 distribution centers with extensive product offerings of wallboard, ceilings, steel framing, and complementary construction products. The company also operates more than 100 tool sales, rental, and service centers, providing a comprehensive selection of building products and solutions for its residential and commercial contractor customer base across the United States and Canada.

Regarding the company's stock performance, the shares of GMS Inc. have moved 0.6% and are currently trading at a price of $85.08.

The company's full 8-K submission is available here.

2018 2019 2020 2021 2022 2023
Revenue (MM) $2,511 $3,116 $3,241 $3,299 $4,635 $5,329
Revenue Growth n/a 24.07% 4.02% 1.77% 40.5% 14.98%
Operating Margins 5% 5% 3% 6% 9% 9%
Net Margins 3% 2% 1% 3% 6% 6%
Net Income (MM) $63 $56 $23 $106 $273 $333
Net Interest Expense (MM) $31 $0 $0 $54 $58 -$66
Depreciation & Amort. (MM) $24 $46 $51 $108 $119 $127
Earnings Per Share $1.49 $1.31 $0.55 $2.44 $6.23 $8.1
EPS Growth n/a -12.08% -58.02% 343.64% 155.33% 30.02%
Diluted Shares (MM) 42 43 43 44 43 41
Free Cash Flow (MM) $68 $175 $278 $123 $139 $389
Capital Expenditures (MM) $24 $19 $25 $30 $41 $53
Current Ratio 2.75 2.21 2.32 2.14 2.35 2.32
Total Debt (MM) $1,787 $2,153 $1,994 $1,995 $2,303 $2,073
Net Debt / EBITDA 12.11 10.93 12.43 6.47 4.05 3.16

GMS has exceptional EPS growth, a steady stream of strong cash slows, and an excellent current ratio. However, the firm has a highly leveraged balance sheet. Finally, we note that GMS has weak operating margins with a positive growth rate.

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