Gms Inc. (GMS) SEC Filing 10-Q Quarterly report for the period ending Thursday, January 31, 2019

Exhibit 99.1

GMS REPORTS THIRD QUARTER FISCAL 2019 RESULTS

—Net Sales Increased 23.6% to a Q3 Record of $723.9 Million —

—Organic Net Sales increased 6.6% —

—Reported Net Income of $5.8 Million or $0.14 per share—

—Adjusted Net Income of $17.3 Million or $0.41 per share—

—Adjusted EBITDA Increased 41.5% to a Q3 Record of $59.7 Million —

Tucker, Georgia, March 5, 2019.

·                  Net sales increased 23.6% to $723.9 million from $585.5 million in the third quarter of fiscal 2018.

·                  Reported net income of $5.8 million, or $0.14 per diluted share, compared to $19.7 million, or $0.47 per diluted share in the prior year.

·                  Adjusted net income of $17.3 million, or $0.41 per diluted share, compared to $15.3 million, or $0.36 per diluted share, in the third quarter of fiscal 2018.

·                  Adjusted EBITDA increased to a third quarter record of $59.7 million, or 8.2% of net sales, from Adjusted EBITDA of $42.2 million, or 7.2% of net sales, in the third quarter of fiscal 2018.

“We were pleased to deliver record net sales and Adjusted EBITDA for our third fiscal quarter, with an organic sales increase of 6.6% reflecting broad-based growth across each of our product lines,” said Mike Callahan, President and CEO. “We generated strong free cash flow in the quarter, which enabled us to reduce our net debt by $32.8 million and repurchase $11.5 million of our common stock under the repurchase program announced last quarter.  Adjusted EBITDA of $59.7 million increased 41.5%, reflecting contributions from the Titan acquisition and our continued focus on operational improvements.”

Mr. Callahan continued, “We remain encouraged by activity across our end markets and in the broader economy, despite ongoing questions about the current macroeconomic outlook and moderating growth in new residential construction. At the same time, we believe our market-leading position in the distribution of interior building products, our balanced product portfolio and our diversified exposure across commercial and residential new and R&R construction markets, which we believe continue to exhibit healthy long-term fundamentals, will enable us to continue to take advantage of growth opportunities across our business both now and in the future.”

Third Quarter 2019 Results

Net sales for the third quarter of fiscal 2019 ended January 31, 2019 were $723.9 million, up 23.6%, with 6.6% on an organic basis,  compared to $585.5 million for the third quarter of the prior year.

·                  Wallboard sales of $297.4 million increased 16.0% (3.9% on an organic basis) compared to the third quarter of fiscal 2018, driven by acquisitions and improved pricing.

·                  Ceilings sales of $105.2 million increased 16.4% (10.6% on an organic basis) compared to the third quarter of fiscal 2018, mainly due to pricing improvement, higher organic volumes as a result of increased commercial business, and the positive impact of acquisitions.

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