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EX - 99.1 2 tm218583d1_ex99-1.htm EXHIBIT 99.1 GMS GYPSUM MANAGEMENT & SUPPLY , INC . Exhibit 99.1 FOR IMMEDIATE RELEASE GMS REPORTS THIRD QUARTER FISCAL 2021 RESULTS Continued Execution Amid Residential Market Strength Delivered Higher Daily Sales and Improved Profitability Tucker , Georgia , March 4 , 2021. GMS Inc. ( NYSE : GMS ) , a leading North American specialty distributor of interior building products , today reported financial results for the third quarter of fiscal 2021 ended January 31 , 2021 . Third Quarter Fiscal 2021 Highlights ( Comparisons are to the third quarter of fiscal 2020 , except where noted . ) Net sales of $ 751.2 million decreased 1.3 % ; organic net sales decreased 1.9 % . On a per day basis , net sales increased 0.3 % and organic net sales declined 0.3 % . Net income of $ 16.1 million , or $ 0.37 per diluted share , increased 48.2 % ; adjusted net income of $ 25.9 million , or $ 0.60 per diluted share , increased 16.4 % . Gross margin of 32.4 % compared to 33.3 % . SG & A and Adjusted SG & A as a percentage of sales were 24.6 % and 24.2 % , representing 80 and 100 basis points of improvement , respectively . Adjusted EBITDA of $ 62.6 million compared to $ 62.7 million ; Adjusted EBITDA margin improved 10 basis points to 8.3 % from 8.2 % . Net debt leverage was 2.9 times as of the end of the third quarter of fiscal 2021 . Cash provided by operating activities and free cash flow of $ 44.4 million and $ 38.4 million , respectively , compared to $ 65.4 million and $ 59.2 million , respectively . " As a result of our team's ability to seize opportunities and address challenges in dynamic market conditions , we delivered better than expected sales , higher net income and an improved Adjusted EBITDA margin in the third quarter , ” said John C. Turner , Jr. , President and Chief Executive Officer . " We continued to realize benefits from our ongoing commitment to our strategic priorities of 1 ) expanding share in core products , 2 ) growing our complementary Other products offering , 3 ) platform expansion , and 4 ) improved productivity and profitability . During the quarter , we generated higher volume in wallboard , increased sales of complementary products and opened our Waco , Texas greenfield location . " We are excited to be celebrating GMS's 50th anniversary in 2021 , and I am confident that our focus on our strategic priorities and our team's continued drive to execute will position us to generate value for our shareholders well into the future , " Mr. Turner concluded . 1