GMS Inc (GMS) has reported 59.64 percent jump in profit for the quarter ended Apr. 30, 2017. The company has earned $14.27 million, or $0.34 a share in the quarter, compared with $8.94 million, or $0.27 a share for the same period last year. On an adjusted basis, net profit for the quarter was $20.01 million, when compared with $17.44 million in the last year period. Revenue during the quarter grew 16.65 percent to $614.98 million from $527.18 million in the previous year period. Gross margin for the quarter contracted 35 basis points over the previous year period to 32.69 percent. Total expenses were 95.07 percent of quarterly revenues, down from 95.43 percent for the same period last year. This has led to an improvement of 36 basis points in operating margin to 4.93 percent.
Operating income for the quarter was $30.31 million, compared with $24.09 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $52.09 million compared with $43.58 million in the prior year period. At the same time, adjusted EBITDA margin improved 20 basis points in the quarter to 8.47 percent from 8.27 percent in the last year period.
Mike Callahan, president and chief executive officer of GMS, stated, "The fourth quarter represented another quarter of strong growth in net sales supported by price gains in each product category, steady end market demand and the contribution of successful acquisitions. We were pleased with this progress and our ability to continue growing our business to deliver a 19.5% year-over-year increase in Adjusted EBITDA for the fourth quarter. These results capped an exciting year for GMS, marked by our successful IPO, record sales and Adjusted EBITDA growth of 36.2%, along with significant improvement in our leverage metrics. Through our proven growth strategy, we remain confident in our ability to capitalize on healthy demand trends and execute on our robust acquisition pipeline to build upon our market leading positions and continue to deliver strong performance in net sales and Adjusted EBITDA in fiscal 2018."
Operating cash flow improves significantlyGMS Inc has generated cash of $66.71 million from operating activities during the year, up 39.71 percent or $18.96 million, when compared with the last year. The company has spent $157.52 million cash to meet investing activities during the year as against cash outgo of $118.04 million in the last year.
Cash flow from financing activities was $86.30 million for the year, up 11.96 percent or $9.22 million, when compared with the last year.
Cash and cash equivalents stood at $14.56 million as on Apr. 30, 2017, down 23.65 percent or $4.51 million from $19.07 million on Apr. 30, 2016.
Debt comes down
GMS Inc has recorded a decline in total debt over the last one year. It stood at $594.92 million as on Apr. 30, 2017, down 7.71 percent or $49.69 million from $644.61 million on Apr. 30, 2016. Interest coverage ratio improved to 4.21 for the quarter from 2.56 for the same period last year.
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