The strong residential end market and favorable pricing across product categories contributed to strong sales growth in the fiscal fourth quarter for specialty distributor Gypsum Management & Supply (GMS). For the three month period ended April 30, 2021, net sales increased 20.9% on a year-over-year (YOY) basis to $932.2 million. For the full fiscal year, sales increased 1.8% from the 2020 fiscal year to $3.3 billion, according to the company’s fourth quarter and full year earnings report.
Organic sales for GMS increased 17.1% YOY in the fiscal fourth quarter. Wallboard sales increased 16.6% YOY in the fourth quarter, ceiling sales increased 9.1% YOY, steel framing sales increased 24.2% YOY, and complementary product sales increased 31.4% on a YOY basis.
“We delivered a strong finish to fiscal 2021 as evidenced by record levels of net sales, net income, and adjusted EBITDA,” John Turner, president and CEO of GMS, said in a prepared statement. “During the fourth quarter, our entire team continued to effectively navigate what remains a very dynamic operating landscape. Through a sharpened focus on execution, we successfully capitalized on opportunities created by tailwinds from a strong residential market and robust demand in complementary products while also continuing to address challenges presented by a continued soft commercial market, supply constraints, and meaningful inflation.”
The company reported a net income of $33.7 million in the fiscal fourth quarter, compared to a net loss of $41.5 million in the fiscal fourth quarter of 2020. The distributor recorded adjusted EBITDA of $91.2 million, an increase of 43.5% on a YOY basis. The company’s adjusted EBITDA margin improved 160 basis points on a YOY basis to 9.8%.
For the full 2021 fiscal year, GMS posted a net income of $105.6 million, an adjusted EBITDA of $319.4 million (a 6.5% increase from fiscal 2020), and an adjusted EBITDA margin of 9.7% (a 50 basis point improvement on a YOY basis).
“We also advanced our platform expansion with an acquisition in Canada and the opening of four greenfield locations in the U.S. and continued this momentum in May with the signing of a definitive agreement to acquire Westside Building Material, affording us a unique opportunity to expand our reach and capture significant growth opportunities in strategically important west coast markets.”
In the fiscal fourth quarter, GMS reported gross profit increased 16.8% on a YOY basis to $293.9 million. Gross margin declined from 32.6% to 31.5%, primarily due to a continuation of unfavorable mix and pressured price-cost dynamics for certain product categories, according to GMS. For the full fiscal year, gross margin decreased 60 basis points to 32.2%.
Tucker, Ga.-based GMS operates a network of more than 265 distribution centers across the United States and Canada, offering wallboard, suspended ceiling systems, and complementary construction products.
