GMS Inc (NYSE: GMS) stock fell 22.6% (as of 28 Jun, 1:13 PM GMT-4; Source: Google finance) after the company missed the analysts’ expectation for the topline and bottom line in the fourth quarter 2018. The net income fell to $9.9 million, compared to $14.3 million. The decline in net income is attributable to $3.0 million in pre-tax transaction costs and $5.1 million in pre-tax mark-to-market currency adjustments during the fourth quarter of fiscal 2018, both related to the acquisition of WSB Titan (“Titan”). In addition, the fourth quarter of fiscal 2017 included $1.2 million of non-recurring other income. Adjusted EBITDA fell 3.9% for the fiscal fourth quarter to $50.1 million from adjusted EBITDA of $52.1 million from the fourth quarter of fiscal 2017.

GMS in the fourth quarter of FY 18 has reported the adjusted earnings per share of 56 cents, missing the analysts’ estimates for the adjusted earnings per share of 66 cents. The company had reported the adjusted revenue growth of 3.4 percent to $635.80 million in the fourth quarter of FY 18, missing the analysts’ estimates for revenue of $674.08 million.

Moreover, as of April 30, 2018, GMS had cash of $36.4 million and total debt of $595.9 million, compared to cash of $14.6 million and total debt of $594.9 million as of April 30, 2017. Subsequent to the end of FY18, on June 1, 2018, the company amended its First Lien Credit Agreement with new borrowings consisting of an approximately $997 million term loan facility due in 2025. Borrowings under the new term loan bear interest at a floating rate based on LIBOR, with a 0% floor, plus 2.75%, representing a 25 basis point improvement compared to the previous term loan’s interest rate. The net proceeds from the new term loan were used to repay the company’s previous first lien term loan of approximately $572 million and to finance the acquisition of Titan.

Meanwhile, GEM has completed its acquisition of Titan on June 1, 2018. Titan is expected to contribute between $68.0 million and $72.0 million to Adjusted EBITDA for the eleven months ending April 30, 2019. The company expects to record additional transaction related charges of $11.0 to $11.5 million in the first quarter of FY19, including an additional $5.7 million of mark-to-market currency adjustments. In addition, subject to finalization of the Titan purchase price allocation, inventory will be increased by an estimated $4.8 million.