GMS Reports Increase in Net Sales and Profitability

GMS, a leading North American specialty distributor of construction products, has reported its financial performance for the twelve months ended January 31, 2024 (LTM Q3 FY24) compared to the previous period.

In LTM Q3 FY24, GMS achieved net sales of $5.4 billion, representing an increase from the previous period. The company's net income for the same period was reported at $295 million, indicating a positive trend in profitability.

The breakdown of net sales by product category for LTM Q3 FY24 shows that complementary products, including tools & fasteners, insulation, lumber, EIFS/stucco, and other products, accounted for 30% of sales, marking an increase from 20% in FY2014.

GMS successfully completed the acquisition of Kamco Supply Corporation, a leading supplier of ceilings, wallboard, steel, lumber, and other complementary products in the New York City metropolitan area. This strategic transaction is expected to significantly enhance GMS's customer serviceability and value proposition.

The company's net debt to pro forma adjusted EBITDA ratio stood at 1.5x as of January 31, 2024, reflecting a stable capital structure that supports its strategic priorities.

Looking ahead, GMS provided expectations for Q4 FY24, forecasting mid single-digit growth in net sales, approximately 32.2% gross margin, and an adjusted EBITDA of $145 million to $150 million.

Following these announcements, the company's shares moved -0.5%, and are now trading at a price of $88.67. For more information, read the company's full 8-K submission here.

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