GMS Inc (NYSE:GMS) stock rose 2.04% (As on June 23, 12:46:05 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. Wallboard sales of $544.7 million increased 10.9% (up 11.4% on an organic basis). Ceilings sales of $155.1 million increased 4.2% (up 3.8% on an organic basis). Steel framing sales of $223.8 million decreased 19.2% (down 19.1% on an organic basis). Complementary Product sales of $380.5 million increased 2.3% (flat on an organic basis). Gross profit of $424.5 million increased 2.8% compared to the fourth quarter of fiscal 2022, and gross margin improved 50 basis points to 32.5%, both primarily due to the successful pass through of product price inflation, favorable product mix from strong multi-family conditions and improving commercial Wallboard demand. Solid, double-digit growth in the sales of certain Complementary Products such as insulation, tools & fasteners and EIFS, along with accretive gross margins from acquisitions were also contributors.

Further, on May 12, 2023, subsequent to the end of its fiscal 2023 fourth quarter, the Company refinanced its term loan, extending its maturity date by seven years. The new borrowings consist of a $500 million term loan facility due in 2030, which bears interest at a floating rate per annum of SOFR plus 3.0%. As of April 30, 2023, the Company had cash on hand of $164.7 million, total debt of $1.1 billion and $759.2 million of available liquidity under its revolving credit facilities. Net debt leverage was 1.4 times as of the end of the quarter, down from 1.8 times at the end of the fourth quarter of fiscal 2022.

GMS in the fourth quarter of FY 23 has reported the adjusted earnings per share of $2.11, beating the analysts’ estimates for the adjusted earnings per share of $1.90. The company had reported the adjusted revenue growth of 1.2 percent to $1.3 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $1.27 billion. This is primarily due to strong levels of multi-family construction activity, continued recovery in commercial construction and resilient pricing in Wallboard, Ceilings and Complementary Products, partially offset by declining single-family construction demand and lower year-over-year prices in Steel framing. Organic net sales increased 0.7%. Adjusted EBITDA of $154.3 million compared to $154.2 million in the prior year quarter. Adjusted EBITDA margin of 11.8% decreased 20 basis points compared to 12.0% recorded a year ago.