Q4 2024 GMS Inc Earnings Call Transcript
Key Points
- GMS Inc (GMS) achieved record net sales of $5.5 billion and organic sales of $5.3 billion for the full fiscal year 2024.
- Fourth-quarter net sales reached $1.4 billion, with net income of $56.4 million and adjusted EBITDA of $146.6 million.
- Strong cash flow generation with $204.2 million from operating activities and $186.7 million in free cash flow.
- GMS Inc (GMS) expanded its market share in US wallboard sales by 80 basis points and in steel by 130 basis points.
- The company successfully executed several strategic acquisitions, including Home Lumber & Building Supplies, AMW Construction Supply, and Kamco Supply Corporation, enhancing its market presence and product offerings.
- Significant steel pricing and margin headwinds impacted the fourth-quarter performance, particularly in multifamily applications.
- Fourth-quarter average wallboard price was down slightly year over year due to mix, with prices flat sequentially.
- Commercial construction activity is expected to face headwinds due to financing availability, labor constraints, and inflationary pressures.
- SG&A expenses increased by $35.8 million year over year, primarily due to acquisitions, greenfield openings, and inflationary pressures in wages and benefits.
- Net income for the fourth quarter decreased by 25.4% year over year, impacted by higher state taxes, increased depreciation expense, and a write-off of debt discount and deferred financing fees.
Greetings and welcome to the GMS, Inc. fourth-quarter fiscal-year 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Carey Phelps. Thank you, Ms. Phelps, you may begin.
Thank you, Kath. Good morning and thank you for joining us for the GMS earnings conference call for the fourth-quarter and full-year fiscal 2024. I am joined today by John Turner, President and Chief Executive Officer; and Scott Deakin, Senior Vice President and Chief Financial Officer. In addition to the press release issued this morning, we have posted PowerPoint slides to accompany this call in the Investors section of our website at www.gms.com.
Now, looking at slide 2. On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements
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