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04 Company NEWS RELEASE GMS Reports Second Quarter Fiscal 2022 Results 12/2/2021 Net Sales of $ 1.15 Billion with Record Levels of Net Income and Adjusted EBITDA TUCKER , Ga .-- ( BUSINESS WIRE ) -- GMS Inc. ( NYSE : GMS ) , a leading North American specialty distributor of interior building products , today reported financial results for the fiscal second quarter ended October 31 , 2021 . Second Quarter Fiscal 2022 Highlights ( Comparisons are to the second quarter of fiscal 2021 ) ● Net sales of $ 1,150.6 million increased 41.5 % ; organic net sales increased 31.2 % . • Net income of $ 74.4 million , or $ 1.69 per diluted share ; adjusted net income of $ 87.8 million , or $ 2.00 per diluted share . • Gross margin of 32.3 % , down 30 basis points from the prior year . • SG & A and Adjusted SG & A as a percentage of sales were 20.0 % and 19.4 % , respectively , representing 320 basis points of improvement for SG & A and 310 basis points of improvement for Adjusted SG & A . • Adjusted EBITDA of $ 149.5 million increased 81.2 % ; Adjusted EBITDA margin improved 280 basis points to 13.0 % from 10.2 % . Net debt leverage was 2.4 times as of the end of the second quarter of fiscal 2022 , down from 3.0 times a year ago . " I am pleased to report another very strong quarter for GMS , " said John C. Turner , Jr. , President and Chief Executive Officer . " Net sales again topped a billion dollars with record levels of net income and Adjusted EBITDA . Supply chain 1