GMS, the wallboard and ceiling systems dealer that ranks 8th on the ProSales 100, reported today its net sales and net income shot up by 9.5% and 4.6%, respectively, on its fiscal second quarter ending October 31 from the year-earlier period. Net sales jumped to $648 million and net income improved to $18 million.
GMS prefers to measure itself in terms of adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) as well as before stock appreciation rights expenses, equity-based compensation, severance costs, transaction costs, management fees, interest-rate swaps, secondary public offerings, and debt transaction costs. By that metric, adjusted EBITDA rose 9.5% year-over-year to hit $54.2 million.
“We are pleased to report a solid quarter highlighted by record Adjusted EBITDA of $54.2 million and net sales of $648.0 million, despite the negative impact of hurricanes Harvey and Irma,” said President and CEO Mike Callahan in a press release. “Our results reflect broad-based growth across all of our product categories, driven by strong commercial activity highlighted by 19% increase in our ceilings business, as well as 10% increase in our other product sales. As expected, gross margin rebounded from the first quarter to 32.8%, and we remain confident in our previously issued outlook of full-year gross margin of 32.5% for fiscal 2018.”
GMS has been busy with acquisitions over the first two quarters, buying up ASI Building Products in Michigan, and Washington Builders Supply in Pennsylvania. The firm also acquired Southwest Building Materials, located in Northwest Texas.
The company reports that wallboard sales increased 6.9% compared to a year earlier, rising to $288.5 million. Ceiling sales and steel framing sales rose 19% and 7.4% each. GMS points out these gains were largely driven by commercial activity, price gains, and the impact of acquisitions.
