GMS Inc (GMS) has reported a 509.70 percent jump in profit for the quarter ended Oct. 31, 2016. The company has earned $17.22 million, or $0.42 a share in the quarter, compared with $2.82 million, or $0.09 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $18.99 million, or $0.46 a share compared with $12.62 million or $0.38 a share, a year ago.
Revenue during the quarter grew 29.20 percent to $591.85 million from $458.08 million in the previous year period. Gross margin for the quarter expanded 123 basis points over the previous year period to 32.65 percent. Total expenses were 95.60 percent of quarterly revenues, down from 96.88 percent for the same period last year. This has led to an improvement of 128 basis points in operating margin to 4.40 percent.
Operating income for the quarter was $26.06 million, compared with $14.30 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $49.52 million compared with $34.80 million in the prior year period. At the same time, adjusted EBITDA margin improved 77 basis points in the quarter to 8.37 percent from 7.60 percent in the last year period.
Mike Callahan, president and chief executive officer of GMS, stated, "Our strong track record of executing profitable growth continued into the second quarter of fiscal 2017 with Adjusted EBITDA up 42.3% to $49.5 million. We increased net sales by 29.2%, which reflects our multi-faceted approach to delivering above market revenue growth and earnings expansion for our shareholders. While acquisitions contributed approximately two-thirds of our sales growth, the growth in our base business operations was also strong, with net sales up in each product group. In the commercial markets, end market demand was healthy resulting in higher ceilings and steel framing volumes. On this positive sales momentum, we delivered a 120 basis point increase in gross margin to 32.6%, which is in line with our longer-term margin expectation. As we look to the balance of fiscal 2017, we are encouraged by our bright outlook for positive sales momentum, strong gross margins and our robust acquisition pipeline."
Operating cash flow turns positive
GMS Inc has generated cash of $0.69 million from operating activities during the first half as against cash outgo of $2.33 million in the last year period.
The company has spent $139.32 million cash to meet investing activities during the first half as against cash inflow of $2.56 million in the last year period
Cash flow from financing activities was $135.94 million for the first six months as against cash outgo of $3.10 million in the last year period.
Cash and cash equivalents stood at stood at $16.39 million as at Oct. 31, 2016.
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