GMS (GMS) 10-Q 6 Sep 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jul. 31, 2017	Sep. 06, 2017
Document and Entity Information
Entity Registrant Name	GMS Inc.
Entity Central Index Key	1,600,438
Document Type	10-Q
Document Period End Date	Jul. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		40,970,905
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2017	Apr. 30, 2017
Current assets:
Cash and cash equivalents	$ 19,736	$ 14,561
Trade accounts and notes receivable, net of allowances of $10,957 and $9,851, respectively	341,302	328,988
Inventories, net	203,181	200,234
Prepaid expenses and other current assets	15,014	11,403
Total current assets	579,233	555,186
Property and equipment, net of accumulated depreciation of $74,268 and $71,409, respectively	156,993	154,465
Goodwill	423,773	423,644
Intangible assets, net	241,938	252,293
Other assets	7,458	7,677
Total assets	1,409,395	1,393,265
Current liabilities:
Accounts payable	112,329	102,688
Accrued compensation and employee benefits	30,823	58,393
Other accrued expenses and current liabilities	50,797	37,891
Current portion of long-term debt	12,936	11,530
Total current liabilities	206,885	210,502
Non-current liabilities:
Long-term debt, less current portion	589,921	583,390
Deferred income taxes, net	24,084	26,820
Other liabilities	36,417	35,371
Liabilities to noncontrolling interest holders, less current portion	21,560	22,576
Total liabilities	878,867	878,659
Commitments and contingencies
Stockholders’ equity:
Common stock, par value $0.01 per share, authorized 500,000,000 shares; 40,970,905 shares issued at July 31, 2017 and April 30, 2017	410	410
Preferred stock, par value $0.01 per share, authorized 50,000,000 shares; 0 shares issued at July 31, 2017 and April 30, 2017
Additional paid-in capital	488,884	488,459
Retained earnings	41,965	26,621
Accumulated other comprehensive loss	(731)	(884)
Total stockholders’ equity	530,528	514,606
Total liabilities and stockholders’ equity	$ 1,409,395	$ 1,393,265

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jul. 31, 2017	Apr. 30, 2017
Consolidated Balance Sheets
Trade accounts and notes receivable, allowances (in dollars)	$ 10,957	$ 9,851
Property and equipment, accumulated depreciation (in dollars)	$ 74,268	$ 71,409
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	40,970,905	40,970,905
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Consolidated Statements of Operations and Comprehensive Income
Net sales	$ 642,157	$ 549,800
Cost of sales (exclusive of depreciation and amortization shown separately below)	437,053	371,215
Gross profit	205,104	178,585
Operating expenses:
Selling, general and administrative	156,072	135,058
Depreciation and amortization	16,345	15,795
Total operating expenses	172,417	150,853
Operating income	32,687	27,732
Other (expense) income:
Interest expense	(7,500)	(7,577)
Write-off of debt discount and deferred financing fees	(74)	(5,426)
Other income, net	290	593
Total other (expense), net	(7,284)	(12,410)
Income before taxes	25,403	15,322
Provision for income taxes	10,060	6,159
Net income	$ 15,343	$ 9,163
Weighted average shares outstanding:
Basic (in shares)	40,970,905	38,200,597
Diluted (in shares)	42,127,771	38,602,378
Net income per share:
Basic (in dollars per share)	$ 0.37	$ 0.24
Diluted (in dollars per share)	$ 0.36	$ 0.24
Comprehensive income:
Net income	$ 15,343	$ 9,163
Increase (decrease) in fair value of financial instrument, net of tax	153	(88)
Comprehensive income	$ 15,496	$ 9,075

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Cash flows from operating activities:
Net income	$ 15,343	$ 9,163
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation and amortization of property and equipment	5,990	6,382
Write-off, accretion and amortization of debt discount and deferred financing fees	734	6,129
Amortization of intangible assets	10,355	9,413
Provision for losses on accounts and notes receivable	849	(75)
Provision for obsolescence of inventory	371	23
Equity-based compensation	1,178	627
(Gain) on sale or impairment of assets	(390)	(199)
Changes in assets and liabilities, net of effects of acquisitions:
Trade accounts and notes receivable	(12,913)	(19,360)
Inventories	(3,318)	(17,101)
Accounts payable	9,506	1,672
Deferred income taxes	(2,712)	(3,222)
Prepaid expenses and other assets	(3,482)	(3,058)
Accrued compensation and employee benefits	(28,080)	(24,947)
Accrued expenses and liabilities	1,020	852
Liabilities to noncontrolling interest holders	386	246
Income tax receivable / payable	11,016	2,835
Cash provided by (used in) operating activities	5,853	(30,620)
Cash flows from investing activities:
Purchases of property and equipment	(5,511)	(2,607)
Proceeds from sale of assets	1,424	841
Acquisition of businesses, net of cash acquired	(3,124)	(26,582)
Cash used in investing activities	(7,211)	(28,348)
Cash flows from financing activities:
Repayments on the revolving credit facility	(257,382)	(225,702)
Borrowings from the revolving credit facility	167,429	280,397
Payments of principal on long-term debt	(1,444)	(975)
Principal repayments of capital lease obligations	(1,434)	(1,213)
Proceeds from issuance of common stock in initial public offering, net of underwriting discounts		157,217
Proceeds from term loan amendment	577,616
Debt issuance costs	(636)
Cash provided by financing activities	6,533	49,724
Increase (decrease) in cash and cash equivalents	5,175	(9,244)
Balance, beginning of period	14,561	19,072
Balance, end of period	19,736	9,828
Supplemental cash flow disclosures:
Cash paid for income taxes	1,787	6,540
Cash paid for interest	6,792	6,613
Supplemental schedule of noncash activities:
Assets acquired under capital lease	2,957	3,824
Change in fair value of derivative instrument	(66)	(205)
Increase in insurance claims payable and insurance recoverable	1,590	161
Second Lien Term Loan due 2022
Cash flows from financing activities:
Repayment of term loan / Repayment of term loan amendment		$ (160,000)
Second amendment to First Lien Credit Agreement
Cash flows from financing activities:
Repayment of term loan / Repayment of term loan amendment	$ (477,616)

Basis of Presentation, Business

Basis of Presentation, Business and Summary of Significant Accounting Policies	3 Months Ended
	Jul. 31, 2017
Basis of Presentation, Business and Summary of Significant Accounting Policies
Basis of Presentation, Business and Summary of Significant Accounting Policies	1. Basis of Presentation, Business and Summary of Significant Accounting Policies The terms “we,” “our,” “us,” “Successor” or the “Company” refer to GMS Inc., formerly GYP Holdings I Corp., and its subsidiaries. When such terms are used in this manner throughout the notes to the condensed consolidated financial statements, they are in reference only to the corporation, GMS Inc. and its subsidiaries, and are not used in reference to the Board of Directors, corporate officers, management, or any individual employee or group of employees. On April 1, 2014, the Successor acquired, through its wholly‑owned entities, GYP Holdings II Corp. and GYP Holdings III Corp., all of the capital stock of Gypsum Management and Supply, Inc. (the “Predecessor”). We refer to this acquisition as the “Acquisition” and April 1, 2014 as the “Acquisition Date.” We changed our name from GYP Holdings I Corp. to GMS Inc. on July 6, 2015. We have no independent operations and our only asset is our investment in the Predecessor. Business Founded in 1971, we are a distributor of specialty building products including wallboard, suspended ceilings systems, or ceilings, steel framing and other complementary specialty building products. We purchase products from a large number of manufacturers and then distribute these goods to a customer base consisting of wallboard and ceilings contractors and homebuilders and, to a lesser extent, general contractors and individuals. We have created a national footprint with more than 200 branches across 42 states. Basis of Presentation The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission that permit reduced disclosure for interim periods. The condensed consolidated balance sheet as of April 30, 2017 was derived from audited financial statements, but does not include all necessary disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of our management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary for a fair statement of the results of operations, financial position, and cash flows. All adjustments are of a normal recurring nature unless otherwise disclosed. Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be the same as those for the full year. For a more complete discussion of the Company’s significant accounting policies and other information, you should read these unaudited condensed consolidated financial statements in conjunction with our annual audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2017, which include all disclosures required by GAAP. Initial and Secondary Public Offerings On May 13, 2016, we amended and restated our certificate of incorporation to increase our authorized share count to 550,000,000 shares of stock, including 500,000,000 shares of common stock and 50,000,000 shares of preferred stock, each with a par value $0.01 per share and to split our common stock 10.158-for-1. Unless otherwise noted herein, historic share data has been adjusted to give effect to the stock split. On June 1, 2016, we completed our initial public offering, or IPO, of 8,050,000 shares of common stock at a price of $21.00 per share, including 1,050,000 shares of common stock that were issued as a result of the exercise in full by the underwriters of an option to purchase additional shares to cover over‑allotments. After underwriting discounts and commissions but before expenses, we received net proceeds from the IPO of approximately $156,900. We used these proceeds together with cash on hand to repay the $160,000 principal amount of our term loan debt outstanding under our senior secured second lien term loan facility, or the Second Lien Facility, which was a payment in full of the entire loan balance due under the Second Lien Facility. On February 28, 2017, certain of our stockholders completed a secondary public offering of 7,992,500 shares of the Company's common stock at a price to the public of $29.25 per share, including 1,042,500 shares of common stock that were sold as a result of the exercise in full by the underwriters of an option to purchase additional shares that was granted by the selling stockholders. We did not receive any proceeds from the sale of our common stock by the selling stockholders. On June 7, 2017, certain of our stockholders completed an additional secondary public offering of 5,750,000 shares of the Company's common stock at a price to the public of $33.00 per share, including 750,000 shares of common stock that were sold as a result of the exercise in full by the underwriters of an option to purchase additional shares that was granted by the selling stockholders. As a result of such offering, the control group consisting of certain affiliates of AEA and certain other of our stockholders no longer controls a majority of the voting power of our outstanding common stock. Accordingly, we are no longer a "controlled company" within the meaning of the New York Stock Exchange corporate governance standards. We did not receive any proceeds from the sale of our common stock by the selling stockholders. Revision of Financial Statements During the preparation of the Annual Report on Form 10-K for the year ended April 30, 2017, the Company determined that cash flows related to payments of working capital settlements were inappropriately classified as financing activities in the Consolidated Statements of Cash Flows for the fiscal year ended April 30, 2016 and the quarters ended July 31, 2016, October 31, 2016, and January 31, 2017. This resulted in understatements of "Cash used in investing activities" (specifically the line item "Acquisitions of businesses, net of cash acquired") and "Cash provided by financing activities" (specifically the line item "Cash paid for contingent consideration") of $6,598 in the Consolidated Statements of Cash Flows for the fiscal year ended April 30, 2016. The Company assessed the materiality of the misstatement in accordance with SEC Staff Accounting Bulletin No. 99, Materiality, and concluded that this misstatement was not material to the Company's previously issued financial statements and that amendments of previously filed reports were therefore not required. However, the Company has elected to revise the previously reported quarterly amount in the Condensed Consolidated Statements of Cash Flows in this Form 10-Q filing. Disclosure of the revised amounts for the quarters ended October 31, 2016 and January 31, 2017 will also be reflected in future filings containing such interim periods. The effect of this revision on the line items within the Company's Condensed Consolidated Statement of Cash Flows for the quarter ended July 31, 2016 was as follows: Three Months Ended July 31, 2016 As previously reported Adjustment As revised Cash flows from investing activities: Acquisition of business, net of cash acquired $ (23,278) $ (3,304) $ (26,582) Cash used in investing activities $ (25,044) $ (3,304) $ (28,348) Cash flows from financing activities: Cash paid for contingent consideration $ (3,304) $ 3,304 $ — Cash flows from financing activities $ 46,420 $ 3,304 $ 49,724 Principles of Consolidation The Condensed Consolidated Financial Statements present the results of operations, financial position and cash flows of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. The results of operations of businesses acquired are included from their respective dates of acquisition. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Insurance Liabilities The Company is self‑insured for certain losses related to medical claims. The Company has stop‑loss coverage to limit the exposure arising from medical claims. The Company has deductible‑based insurance policies for certain losses related to general liability, automobile and workers’ compensation. The deductible amount per incident is $250, $500 and $1,000 for general liability, workers’ compensation and automobile, respectively. The coverage consists of a primary layer and an excess layer. The primary layer of coverage is from $500 to $2,000 and the excess layer covers claims from $2,000 to $100,000. The expected ultimate cost for claims incurred as of the balance sheet date is not discounted and is recognized as a liability. Insurance losses for claims filed and claims incurred but not reported are accrued based upon estimates of the aggregate liability for uninsured claims using loss development factors and actuarial assumptions followed in the insurance industry and historical loss development experience. At July 31, 2017 and April 30, 2017, the aggregate liabilities for medical self‑insurance were $4,295 and $3,429, respectively, and are recorded in “Other accrued expenses and current liabilities” within the Condensed Consolidated Balance Sheets. At July 31, 2017 and April 30, 2017, reserves for general liability, automobile and workers’ compensation totaled approximately $17,207 and $15,934, respectively, and are recorded in “Other accrued expenses and current liabilities” and “Other liabilities” in the Condensed Consolidated Balance Sheets. At July 31, 2017 and April 30, 2017, amounts recoverable for medical self-insurance, general liability, automobile and workers’ compensation totaled approximately $8,298 and $6,708, respectively, and are recorded in “Prepaid expenses and other current assets” and “Other assets” in the Condensed Consolidated Balance Sheets. Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The carrying value of cash and cash equivalents, receivables, accounts payable, other current liabilities and accrued interest approximates fair value due to its short‑term nature. Based on borrowing rates available to the Company for loans with similar terms, the carrying values of the ABL Facility, First Lien Facility and other debt approximate fair value. Accounting guidance establishes a three‑level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market. Level 2 Inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model‑derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability. As discussed in Note 7, we have recorded stock appreciation rights, deferred compensation and redeemable noncontrolling interests at their expected fair values. The determination of these fair values is based on Level 3 inputs. These inputs include a volatility rate based on comparable entities, a discount rate, and the expected time to redemption of the liabilities, historical values of the book equity of certain subsidiaries, and market information for comparable entities. The use of these inputs to derive the fair value of the liabilities at a point in time can result in volatility to the financial statements to our current and projected financial results. Stock Appreciation Rights, Deferred Compensation and Liabilities to Noncontrolling Interest Holders Certain subsidiaries have equity based compensation agreements with the subsidiary’s employees and minority shareholders. These agreements are stock appreciation rights, deferred compensation agreements, and liabilities to noncontrolling interest holders. Since these agreements are typically settled in cash or notes, and do not meet the criteria established by ASC 718, “ Compensation—Stock Compensation ” to be accounted for in “Stockholders’ equity”, they are accounted for as liability awards. See Note 7. Treasury Stock We did not have any treasury stock activity for the quarters ended July 31, 2017 or 2016. Net Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted‑average number of outstanding shares of common stock for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if instruments that may require the issuance of common stock in the future were settled and the underlying shares of common stock were issued. Diluted earnings (loss) per share is computed by increasing the weighted‑average number of outstanding shares of common stock computed in basic earnings (loss) per share to include the dilutive effect of stock options and other equity‑based instruments held by the Company’s employees and directors during each period. In periods of net loss, the number of shares used to calculate diluted earnings (loss) per share is the same as basic net earnings (loss) per share. Recent Accounting Pronouncements Revenue recognition —In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"), to clarify the principles used to recognize revenue for all entities. In August 2015, the FASB issued ASU No. 2015-14 which deferred the effective date of ASU 2014-09 by one year. As a result of this deferral, ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted for annual reporting periods beginning after December 15, 2016. The guidance allows for either a full retrospective or a modified retrospective transition method. We are continuing to evaluate our method of adoption and the impact this guidance, including recent amendments and interpretations, may have on our financial position, results of operations and cash flows. Leases —In February 2016, the FASB issued ASU No. 2016-02, "Leases" ("ASU 2016-02"). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with such classification affecting the pattern of expense recognition in the statement of operations. The new standard is effective for the Company's fiscal year beginning May 1, 2019, including interim reporting periods within that fiscal year. A modified transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While the Company is still evaluating the impact of its pending adoption of the new standard on its Consolidated Financial Statements, the Company expects that upon adoption it will recognize ROU assets and liabilities that could be material. Stock Compensation — Effective May 1, 2017, we adopted Accounting Standards Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting. The provisions of this update simplify many key aspects of the accounting for and cash flow presentation of employee share-based compensation transactions, including accounting for income taxes, forfeitures, and statutory withholding requirements. In accordance with the new guidance, on a prospective basis, we will record all excess tax benefits or tax deficiencies as a component of our Provision for income taxes on our Consolidated Statements of Operations and Comprehensive Income. Additionally, on a prospective basis, we will present excess tax benefits or deficiencies as operating cash flows versus reclassifying the amount out of operating cash flows and presenting it in financing activities on the Condensed Consolidated Statements of Cash Flows. Additional amendments from this guidance related to forfeitures and minimum statutory withholding tax requirements had no impact to our financial position, results of operations or cash flows. As permitted, we continue to estimate forfeitures to determine the amount of compensation cost to be recognized each period rather than electing to account for forfeitures as they occur, and we continue to present the value of shares withheld for minimum statutory tax withholding requirements on the Condensed Consolidated Statements of Cash Flows as a financing activity. Another impact of the adoption is that the calculation of the effect of dilutive securities now excludes any derived excess tax benefits or deficiencies from assumed future proceeds. Inventory — In July 2015, the FASB issued ASU No. 2015-11, “Inventory, Simplifying the Measurement of Inventory” (“ASU 2015-11”). The amended guidance requires that inventory be measured at the lower of cost and net realizable value. The amended guidance is limited to inventory measured using the first-in, first-out (“FIFO”) or average cost methods and excludes inventory measured using last-in, first-out (“LIFO”) or retail inventory methods. ASU 2015-11 is effective for fiscal years, and interim periods, beginning after December 15, 2016. The Company adopted this guidance on May 1, 2017 (the first day of fiscal 2018) with no material impact on the Company’s financial position, results of operations or cash flows.

Business Acquisitions

Business Acquisitions	3 Months Ended
	Jul. 31, 2017
Business Acquisitions
Business Acquisitions	2. Business Acquisitions The Company operates in a highly fragmented industry. A key component of the Company’s strategy is growth through acquisition that expands its geographic coverage, provides complementary lines of business and increases its market share. The Company has accounted for all business combinations using the purchase method, in accordance with ASC 805, to record a new cost basis for the assets acquired and liabilities assumed. The Company recorded, based on preliminary purchase price allocations, intangible assets representing client relationships, tradenames, and excess of purchase price over the estimated fair value of the tangible assets acquired and liabilities assumed as “Goodwill” in the accompanying Condensed Consolidated Financial Statements. The goodwill is attributable to synergies achieved through the streamlining of operations combined with improved margins attainable through increased market presence and is all attributable to our one operating reportable segment. The results of operations of these acquisitions are reflected in the Condensed Consolidated Financial Statements of the Company from the date of acquisition. (a) Fiscal 2018 Acquisitions In the three months ended July 31, 2017, the Company did not complete an acquisition. Subsequent to the end of the quarter, on August 1, 2017, the Company acquired ASI Building Products, LLC (“ASI”) for a total purchase price of approximately $16,500. ASI is a distributor of ceilings and other building products with three locations in Michigan. (b) Fiscal 2017 Acquisitions In fiscal 2017, the Company completed the following acquisitions, with an estimated aggregate purchase price of $154,043, comprised of $149,771 of cash consideration and $4,272 of consideration related to working capital settlements and contingent consideration. The pro forma impact of these acquisitions is not presented as it is not considered material to our Condensed Financial Statements. Company name Form of acquisition Date of acquisition Wall & Ceiling Supply Co., Inc. Purchase of net assets May 2, 2016 Rockwise, LLC Purchase of net assets July 5, 2016 Steven F. Kempf Building Materials, Inc. Purchase of net assets August 29, 2016 Olympia Building Supplies, LLC/Redmill, Inc. Purchase of 100% of outstanding common stock September 1, 2016 United Building Materials, Inc. Purchase of net assets October 3, 2016 Ryan Building Materials, Inc. Purchase of net assets October 31, 2016 Interior Products Supply Purchase of net assets December 5, 2016 Hawaii-based distribution business of Grabber Construction Products Purchase of net assets February 1, 2017 The preliminary allocation of purchase consideration for these acquisitions is summarized as follows: Preliminary Preliminary purchase price purchase price allocation Adjustments/ allocation April 30, 2017 Reclassifications July 31, 2017 Cash and cash equivalents $ 1,558 $ — $ 1,558 Trade accounts and notes receivable 37,691 238 37,929 Inventories 16,504 — 16,504 Property and equipment 8,357 — 8,357 Other assets 657 — 657 Tradenames 9,490 — 9,490 Customer relationships 64,660 — 64,660 Goodwill 37,728 129 37,857 Deferred tax liability (6,011) — (6,011) Liabilities assumed (16,958) — (16,958) Purchase price $ 153,676 $ 367 $ 154,043 During the first three months of fiscal 2018, the Company recorded adjustments to working capital resulting in an increase in total consideration paid of $367. As of July 31, 2017 goodwill of $25,639 and other intangible assets of $53,550 are expected to be deductible for U.S. federal income tax purposes. Also as of July 31, 2017, goodwill of $12,218 and other intangible assets of $20,600 are expected to be nondeductible for U.S. federal income tax purposes. The Company believes that the information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the Company is waiting for additional information necessary to finalize the fair values of acquisitions for which final working capital settlements have not been determined. The additional information necessary is that which will result from these settlements; such changes are not expected to be significant. The Company expects to complete the purchase price allocation for these acquisitions as soon as practicable but no later than one year from the applicable acquisition date.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Jul. 31, 2017
Goodwill and Intangible Assets
Goodwill and Intangible Assets	3. Goodwill and Intangible Assets The following table represents the activity of “Goodwill” from May 1, 2017 to July 31, 2017: Carrying Amount Balance at May 1, 2017 $ 423,644 Working capital adjustments 129 Balance at July 31, 2017 $ 423,773 The Company’s definite lived intangible assets as of July 31, 2017 and April 30, 2017 consist of the following: Estimated Weighted July 31, 2017 useful average Gross Net lives amortization carrying Accumulated carrying (years) period amount amortization value Amortizable intangible assets: Customer relationships 5 - 13 10.9 $ 273,196 $ 121,011 $ 152,185 Definite lived tradenames 5 - 20 18.3 25,250 2,097 23,153 Vendor agreement 8 — 5,644 2,352 3,292 Leasehold interests 7 - 13 8.2 2,516 576 1,940 Totals $ 306,606 $ 126,036 $ 180,570 Estimated Weighted April 30, 2017 useful average Gross Net lives amortization carrying Accumulated carrying (years) period amount amortization value Amortizable intangible assets: Customer relationships 5 - 13 10.9 $ 273,196 $ 111,291 $ 161,905 Definite lived tradenames 5 - 20 18.3 25,250 1,718 23,532 Vendor agreement 8 — 5,644 2,176 3,468 Leasehold interests 7 - 13 8.2 2,516 496 2,020 Totals $ 306,606 $ 115,681 $ 190,925 The Company’s indefinite lived intangible assets consist of tradenames which have a carrying amount of $61,368 as of July 31, 2017 and April 30, 2017. Amortization expense related to intangible assets was $10,355 and $9,413 for the three months ended July 31, 2017 and 2016, respectively. Amortization expense is recorded in “Depreciation and amortization” expense in the Condensed Consolidated Statements of Operations and Comprehensive Income.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Jul. 31, 2017
Long-Term Debt
Long-Term Debt	4. Long‑Term Debt Long‑term debt at July 31, 2017 and April 30, 2017 consists of the following: July 31, April 30, 2017 2017 First Lien Term Loan due 2023 (1) (2) $ 566,037 $ 470,245 ABL Facility 13,399 103,353 Capital lease obligations, at an annual rate of 5.50%, due in monthly installments through July 2023 17,134 15,611 Installment notes at fixed rates up to 5.0%, due in monthly and annual installments through September 2023 (3) 6,287 5,711 602,857 594,920 Less: Current portion 12,936 11,530 Total long-term debt $ 589,921 $ 583,390 (1) Net of unamortized discount of $2,976 and $1,658 as of July 31, 2017 and April 30, 2017, respectively. (2) Net of deferred financing costs of $7,159 and $5,712 as of July 31, 2017 and April 30, 2017, respectively. (3) Net of unamortized discount of $725 and $751 as of July 31, 2017 and April 30, 2017, respectively. Acquisition Debt On April 1, 2014, the Company's wholly-owned subsidiaries, GYP Holdings II Corp., as parent guarantor (in such capacity, "Holdings"), and GYP Holdings III Corp., as borrower (in such capacity, the "Borrower" and, together with Holdings and the Subsidiary Guarantors (as defined therein), the "Loan Parties"), entered into a senior secured first lien term loan facility (the "First Lien Facility") and a senior secured second lien term loan facility (the "Second Lien Facility" and, together with the First Lien Facility, the "Term Loan Facilities") in the aggregate amount of $550,000 to acquire Gypsum Management and Supply, Inc. The Term Loan Facilities originally consisted of a First Lien Term Loan and a Second Lien Term Loan (respectively, the "First Term Loan" and "Second Term Loan"). The First Term Loan was issued in an original aggregate principal amount of $388,050 (net of $1,950 of original issue discount). The Second Term Loan was issued in an original aggregate principal amount of $158,400 (net of $1,600 of original issue discount) and is no longer outstanding. On June 1, 2016, the Company used the IPO proceeds together with cash on hand to repay the $160,000 principal amount of our term loan debt outstanding under our Second Lien Facility, which was a payment in full of the entire loan balance due under the Second Lien Facility. In addition, the Company recorded a write-off of debt discount and deferred financing fees of $5,426 to “Write-off of discount and deferred financing fees” in the Condensed Consolidated Statements of Operations and Comprehensive Income. On September 27, 2016, the Company entered into an Incremental First Lien Term Commitments Amendment (the "First Amendment"), among the Borrower, Holdings, the other Loan Parties party thereto, Credit Suisse AG, as administrative agent and as new incremental first lien lender, which amended the First Lien Credit Agreement, dated April 1, 2014 (the “First Lien Credit Agreement”), among the Borrower, Holdings, the financial institutions from time to time party thereto, as lenders, and Credit Suisse AG, as administrative agent and collateral agent. The First Amendment amended the First Lien Credit Agreement to, among other things, provide for a new first lien term loan facility of approximately $481,225 with an interest at floating rate based on LIBOR, with a 1.00% floor, plus 3.50%, representing a twenty-five basis point improvement compared to the interest rate of the existing First Lien Facility immediately prior to giving effect to the First Amendment. Net proceeds from the new First Lien Facility were used to repay the Company’s existing First Lien Facility of $381,225 and a portion of the loans under the ABL Facility as well as to pay related expenses. The Company recorded a write-off of debt discount and deferred financing fees of $1,466 to “Write-off of discount and deferred financing fees” in the Condensed Consolidated Statements of Operations and Comprehensive Income. On June 7, 2017, the Company entered into the Second Amendment to First Lien Credit Agreement (the “Second Amendment”), among the Borrower, Holdings, the other Loan Parties party thereto, Credit Suisse AG, as administrative agent and as 2017 incremental first lien lender, which amended the First Lien Credit Agreement (as amended by the First Amendment and as supplemented from time to time). The Second Amendment provides for a new first lien term loan facility under the First Lien Credit Agreement in the aggregate principal amount of approximately $577,616 due on April 1, 2023 that bears interest at a floating rate based on LIBOR, with a 1.00% floor, plus 3.00%, representing a fifty basis point improvement compared to the interest rate of the existing First Lien Facility immediately prior to giving effect to the Second Amendment. Net proceeds were used to repay the existing First Lien Loan outstanding balance of approximately $477,616 and approximately $94,000 of loans under its asset based revolving credit facility, or the ABL Facility, as well as to pay related expenses. Asset Based Lending Facility The Asset Based Lending Credit Facility (the "ABL Facility"), entered into on April 1, 2014, originally provided for revolving loans and the issuance of letters of credit up to an initial maximum aggregate principal amount of $200,000 (subject to availability under a borrowing base). GYP Holdings III Corp. is the lead borrower (in such capacity, the "Lead Borrower"). Extensions of credit under the ABL Facility are limited by a borrowing base calculated periodically based on specified percentages of the value of eligible inventory and eligible accounts receivable, subject to certain reserves and other adjustments. On February 17, 2016, the Company amended the ABL Facility to exercise the $100,000 accordion feature of the ABL Facility which increased the aggregate revolving commitments from $200,000 to $300,000, and increased the sublimit for same day swing line borrowings from $20,000 to $30,000. The other terms of the ABL Facility remained unchanged. On November 18, 2016, the Company entered into the Second Amendment to the ABL Credit Agreement. The Second Amendment amended the ABL Credit Agreement to, among other things, provide for an increase in the revolving credit commitments thereunder to $345,000 (including an increase in the swing line limit to $34,500), an extension of the maturity date to November 18, 2021, and a 0.25% decrease in the interest rate margin at each pricing level for LIBOR loans thereunder.

Income Taxes

Income Taxes	3 Months Ended
	Jul. 31, 2017
Income Taxes
Income Taxes	5. Income Taxes Under ASC 740‑270, Income Taxes—Interim Reporting (“ASC 740‑270”), each interim period is considered an integral part of the annual period and tax expense (benefit) is measured using an estimated annual effective income tax rate. Estimates of the annual effective income tax rate at the end of interim periods are, out of necessity, based on evaluation of possible future events and transactions and may be subject to subsequent refinement or revision. The Company forecasts its estimated annual effective income tax rate and then applies that rate to its year‑to‑date pre‑tax ordinary income (loss), subject to certain loss limitation provisions. In addition, certain specific transactions are excluded from the Company’s estimated annual effective tax rate computation, but are discretely recognized within income tax expense (benefit) in their respective interim period. Future changes in the forecasted annual income (loss) projections, tax rate changes, or discrete tax items could result in significant adjustments to quarterly income tax expense (benefit) in future periods. The Company evaluates its deferred tax assets quarterly to determine if valuation allowances are required. In this evaluation, the Company considers both positive and negative evidence in determining whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The primary negative evidence considered includes the cumulative operating losses generated in prior periods. The primary positive evidence considered includes the reversal of deferred tax liabilities related to depreciation and amortization that would occur within the same jurisdiction and during the carry forward period necessary to absorb the federal and state net operating losses and other deferred tax assets. The reversal of such liabilities would utilize the federal and state net operating losses and other deferred tax assets. Deferred tax assets and liabilities are computed by applying the federal and state income tax rates in effect to the gross amounts of temporary differences and other tax attributes, such as net operating loss carry‑forwards. In assessing if the deferred tax assets will be realized, the Company considers whether it is more likely than not that some or all of these deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which these deductible temporary differences reverse. The Company had valuation allowances of $297 against its deferred tax assets related to certain tax jurisdictions as of July 31, 2017 and April 30, 2017. To the extent the Company generates sufficient taxable income in the future to utilize the tax benefits of the net deferred tax assets on which a valuation allowance is recorded, the effective tax rate may decrease as the valuation allowance is reversed. The effective income tax rate on continuing operations for the three months ended July 31, 2017 was 39.6% compared to an effective income tax rate of 40.2% for the three months ended July 31, 2016. The decrease in the effective income tax rate is primarily due to the decreased impact of permanent differences and a decrease in the blended state tax rate. The Company had no material uncertain tax positions as of July 31, 2017 and April 30, 2017.

Equity-Based Compensation

Equity-Based Compensation	3 Months Ended
	Jul. 31, 2017
Equity-Based Compensation
Equity-Based Compensation	6. Equity‑Based Compensation General The Company has a 2014 GYP Holdings I Corp. Stock Option Plan, (the “Plan”) that provides for granting of stock options and other equity awards. The Plan authorizes 3,591,422 shares of common stock for issuance. The stock options granted under the plan vest over a four-year period and have a 10‑year term. The plan is designed to motivate and retain individuals who are responsible for the attainment of our primary long‑term performance goals. The plan provides a means whereby our employees and directors develop a sense of ownership and personal involvement in our development and financial success and encourage them to devote their best efforts to our business. The Company accounts for share‑based awards in accordance with ASC 718. ASC 718 requires measurement of compensation cost for all share‑based awards at fair value on the grant date (or measurement date if different) and recognition of compensation expense, net of estimated forfeitures, over the requisite service period for awards expected to vest. Stock Option Awards We utilize the Black‑Scholes option‑pricing model to estimate the grant‑date fair value of all stock options. The Black‑Scholes option‑pricing model requires the use of weighted average assumptions for estimated expected volatility, estimated expected term of stock options, risk‑free rate, estimated expected dividend yield, and the fair value of the underlying common stock at the date of grant. Prior to our IPO discussed in Note 1, “ —Initial and Secondary Public Offerings ,” we did not have sufficient history to estimate the expected volatility of our common stock price, therefore expected volatility has been based on the average volatility of peer public entities that are similar in size and industry. We estimate the expected term of all stock options based on previous history of exercises. The risk‑free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the stock option. The expected dividend yield is 0% as we have not declared any common stock dividends to date and do not expect to declare common stock dividends in the near future. The fair value of the underlying common stock at the date of grant was determined based on the value of the Company’s closing stock price on the trading day immediately preceding the date of the grant. We estimate forfeitures based on our historical analysis of actual stock option forfeitures and employee turnover. Actual forfeitures are recorded when incurred and estimated forfeitures are reviewed and adjusted at least annually The Company did not issue any stock option awards during the three months ended July 31, 2017. A summary of stock option activity for the three months ended July 31, 2017 follows: Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price life (years) value Outstanding at May 1, 2017 2,087,645 $ 13.49 7.23 $ 47,336 Options granted — — Options exercised — — Options forfeited — — Options expired — — Outstanding at July 31, 2017 2,087,645 $ 13.49 6.97 $ 34,518 Exercisable at July 31, 2017 1,400,875 $ 12.79 6.83 $ 24,135 Expected to vest after July 31, 2017 686,770 $ 14.90 7.27 $ 10,383 The aggregate intrinsic value represents the value of the Company’s closing stock price on the last trading day of the fiscal period in excess of the weighted average exercise price multiplied by the number of options outstanding or exercisable. Options expected to vest are unvested shares net of expected forfeitures.

Stock Appreciation Rights, Defe

Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests	3 Months Ended
	Jul. 31, 2017
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests	7. Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests Certain subsidiaries have equity based compensation arrangements with certain of the subsidiary’s employees and minority shareholders. These arrangements are stock appreciation rights, deferred compensation agreements and liabilities to noncontrolling interest holders. Since these arrangements are typically settled in cash or notes, and do not meet the criteria established by ASC 718 to be accounted for in “Stockholders’ equity”, they are accounted for as liability awards. These liability awards are reflected at their fair values as of July 31, 2017 and April 30, 2017. Stock appreciation rights —Certain subsidiaries have granted stock appreciation rights to certain employees under which payments are dependent on the appreciation in the book value per share, adjusted for certain provisions, of the applicable subsidiary. Settlements of the awards can be made in a combination of cash or installment notes, generally paid over four years, upon a triggering event. Vesting periods vary by grant date but all remaining unvested awards will vest by the end of the second quarter in fiscal 2018. Current liabilities related to these plans of $529 and $878 were included in “Accrued compensation and employee benefits” at July 31, 2017 and April 30, 2017, respectively. Long‑term liabilities related to these plans of $20,723 and $19,784 were recorded as components of “Other liabilities” at July 31, 2017 and April 30, 2017, respectively. Below is a summary of changes to the liability: Stock appreciation rights as of May 1, 2017 (fair value) $ 20,662 Amounts redeemed — Change in fair value 590 Stock appreciation rights as of July 31, 2017 (fair value) $ 21,252 Deferred compensation —Certain shareholders of the Company’s subsidiaries have entered into other deferred compensation agreements that granted the shareholders a payment based on a percentage in excess of book value, adjusted for certain provisions, upon an occurrence as defined in the related agreements, which are called “Buy Sell” agreements. Current liabilities related to these plans of $344 and $480 were included in “Accrued compensation and employee benefits” at July 31, 2017 and April 30, 2017, respectively The long-term liabilities related to these plans of $3,522 and $3,450 were included in “Other liabilities” at July 31, 2017 and April 30, 2017, respectively. These instruments are redeemed in cash or installment notes, generally paid in annual installments generally over the five years following termination of employment. Below is a summary of changes to the liability: Deferred compensation as of May 1, 2017 (fair value) $ 3,750 Amounts redeemed — Change in fair value 116 Deferred compensation as of July 31, 2017 (fair value) $ 3,866 Liabilities to noncontrolling interest holders —As described in Note 1, noncontrolling interests were issued to certain employees of the Company’s subsidiaries. All of the noncontrolling interest awards are subject to mandatory redemption on termination of employment for any reason. These instruments are redeemed in cash or installment notes and are generally paid in annual installments generally over the five years following termination of employment. Liabilities related to these agreements are classified as share based liability awards and are measured at fair value under ASC 718. As of July 31, 2017 and April 30, 2017, the total fair value of these liabilities was $24,059 and $24,309, respectively. Amounts expected to be paid in the next year as of July 31, 2017 and April 30, 2017 are included in “Accrued compensation and employee benefits” in the amounts of $2,498 and $1,733, respectively. As of July 31, 2017 and April 30, 2017, long-term liabilities related to this plan of $21,560 and $22,576, respectively, were included in “Liabilities to noncontrolling interest holders, less current portion.” Below is a summary of changes to the liability: Non-controlling interests as of May 1, 2017 (fair value) $ 24,309 Amounts redeemed (1,000) Change in fair value 750 Non-controlling interests as of July 31, 2017 (fair value) $ 24,059 Upon the termination of employment or other triggering events including death or disability of the noncontrolling stockholders in the Company’s subsidiaries, we are obligated to purchase, or redeem, the noncontrolling interests at either an agreed upon price or a formula value provided in the stockholder agreements. This formula value is typically based on the book value per share of the subsidiary’s equity, including certain adjustments.

Transactions With Related Parti

Transactions With Related Parties	3 Months Ended
	Jul. 31, 2017
Transactions With Related Parties
Transactions With Related Parties	8. Transactions With Related Parties The Company leases office and warehouse facilities from partnerships or entities owned by certain stockholders of GMS Inc. and its subsidiaries that meet the SEC definition of related parties. At July 31, 2017, these leases had expiration dates through fiscal 2021. Rent expense related to these leases included in the accompanying Condensed Consolidated Financial Statements approximated $195 for the three months ended July 31, 2017 and 2016. Rent expense related to these leases is recorded in “Selling, general and administrative” expenses. The Company purchases inventories from Southern Wall Products, Inc. (“SWP”) on a continuing basis. Certain stockholders of the Company are stockholders of SWP, which was spun‑off from Gypsum Management and Supply, Inc. on August 31, 2012. The Company purchased inventory from SWP for distribution in the amount of $3,481 and $3,165 in the three months ended July 31, 2017 and 2016, respectively. Amounts due to SWP for purchases of inventory for distribution as of July 31, 2017 and April 30, 2017 were $1,135 and $1,091, respectively, and are included in “Accounts payable”. In connection with the IPO, the Company terminated its management agreement with AEA Investors LP. The agreement required the Company to pay AEA an annual management fee of $2,250 per year following the Acquisition for advisory and consulting services. The Company paid the final payment of $188 in the three months ended July 31, 2016, which is included in “Selling, general and administrative” expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jul. 31, 2017
Commitments and Contingencies
Commitments and Contingencies	9. Commitments and Contingencies Litigation, Claims and Assessment The Company is a defendant in various lawsuits and administrative actions associated with personal injuries, claims of former employees, and other events arising in the normal course of business. As discussed in Note 1 “—Insurance Liabilities”, the Company records liabilities for these claims, and assets for amounts recoverable from the insurer, for these claims covered by insurance.

Segments

Segments	3 Months Ended
	Jul. 31, 2017
Segments
Segments	10. Segments The Company applies the provisions of ASC Topic 280, “ Segment Reporting .” ASC 280, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity‑wide disclosures about products, major customers and the geographies in which the entity holds material assets and reports revenue. An operating segment is defined as a component that engages in business activities whose operating results are reviewed by the chief operating decision maker (“CODM”) and for which discrete financial information is available. For purposes of evaluation under these segment reporting principles, the CODM assesses the Company’s ongoing performance based on the periodic review of net sales, Adjusted EBITDA and certain other measures for each of the operating segments. We report our financial results in accordance with GAAP. However, we present Adjusted EBITDA, which is not a recognized financial measure under GAAP, because we believe it assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes Adjusted EBITDA is helpful in highlighting trends in our operating results, while other measures can differ significantly depending on long‑term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. In addition, we utilize Adjusted EBITDA in certain calculations under the ABL Facility and the First Lien Facility. The ABL Facility and the First Lien Facility permit us to make certain additional adjustments in calculating Consolidated EBITDA, such as projected net cost savings, which are not reflected in the Adjusted EBITDA data presented in this Quarterly Report on Form 10‑Q. Based on the provisions of ASC 280, the Company has determined that it has six operating segments based on the Company’s six geographic divisions, which are Central, Midwest, Northeast, Southern, Southeast, and Western. On May 1, 2017 the Company combined the Southern and Southwest into the Southern reporting unit, which resulted in a reduction (from seven to six) in the number of operating segments. Due to similarities between the geographic operating segments, we have aggregated them into one reportable segment in accordance with ASC 280. The accounting policies of the operating segments are the same as those described in the summary of significant policies. In addition to our reportable segment, the Company’s consolidated results include both corporate activities and certain other activities. Corporate includes our corporate office building and support services provided to the subsidiaries. Other includes Tool Source Warehouse, Inc., which functions primarily as an internal distributor of tools. Net sales, Adjusted EBITDA and certain other measures for the reportable segment and total continuing operations for the periods indicated are as follows: Three Months Ended July 31, 2017 Depreciation & Adjusted Net sales Gross profit amortization EBITDA Geographic divisions $ 636,367 $ 203,024 $ 16,026 $ 52,227 Other 5,790 2,080 64 525 Corporate — — 255 — $ 642,157 $ 205,104 $ 16,345 $ 52,752 Three Months Ended July 31, 2016 Depreciation & Adjusted Net sales Gross profit amortization EBITDA Geographic divisions $ 545,005 $ 176,840 $ 15,507 $ 45,608 Other 4,795 1,745 80 333 Corporate — — 208 — $ 549,800 $ 178,585 $ 15,795 $ 45,941 The following is a reconciliation of our Adjusted EBITDA to “Net income” for the three months ended July 31, 2017 and 2016: Three Months Ended July 31, 2017 2016 Adjusted EBITDA $ 52,752 $ 45,941 Interest expense (7,500) (7,577) Write-off of debt discount and deferred financing fees (74) (5,426) Interest income 23 43 Income tax expense (10,060) (6,159) Depreciation expense (5,990) (6,382) Amortization expense (10,355) (9,413) Stock appreciation (expense) or income(a) (590) 92 Redeemable noncontrolling interests(b) (866) (292) Equity-based compensation(c) (473) (673) Severance and other permitted costs(d) (205) (140) Transaction costs (acquisitions and other)(e) (159) (654) Gain on sale of assets 390 198 Management fee to related party(f) — (188) Effects of fair value adjustments to inventory(g) — (164) Interest rate cap mark-to-market(h) (196) (43) Secondary public offering costs(i) (631) — Debt transaction costs(j) (723) — Net income $ 15,343 $ 9,163 (a) Represents non‑cash income or expenses related to stock appreciation rights agreements. For additional details regarding stock appreciation rights, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies—Subsidiary Equity‑Based Deferred Compensation Arrangements” included in our Annual Report on Form 10-K for the year ended April 30, 2017. (b) Represents non‑cash compensation expense related to changes in the redemption values of noncontrolling interests. For additional details regarding redeemable noncontrolling interests of our subsidiaries, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies—Subsidiary Equity‑Based Deferred Compensation Arrangements” included in our Annual Report on Form 10-K for the year ended April 30, 2017. (c) Represents non‑cash equity‑based compensation expense related to the issuance of stock options. (d) Represents severance expenses and other costs permitted in calculations under the ABL Facility and the First Lien Facility. (e) Represents one‑time costs related to our IPO and acquisitions (other than the Acquisition) paid to third party advisors. (f) Represents management fees paid by us to AEA. Following our IPO, AEA no longer receives management fees from us. (g) Represents the non‑cash cost of sales impact of purchase accounting adjustments to increase inventory to its estimated fair value. (h) Represents the mark‑to‑market adjustments for the interest rate cap. (i) Represents one-time costs related to our secondary offering paid to third party advisors. (j) Represents expenses paid to third party advisors related to debt refinancing activities. The Company does not earn revenues or have long‑lived assets located in foreign countries. In accordance with the enterprise‑wide disclosure requirements of ASC 280, the Company’s net sales to external customers by main product lines are as follows for the three months ended July 31, 2017 and 2016, respectively: Three Months Ended July 31, 2017 2016 Wallboard $ 284,657 $ 251,296 Ceilings 99,710 86,349 Steel framing 104,651 84,343 Other products 153,139 127,812 Total net sales $ 642,157 $ 549,800

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Jul. 31, 2017
Earnings Per Common Share
Earnings Per Common Share	11. Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per share of common stock for the three months ended July 31, 2017 and 2016: Three Months Ended July 31, 2017 2016 Net income $ 15,343 $ 9,163 Basic earnings per common share: Basic weighted average shares outstanding per common share 40,970,905 38,200,597 Basic earnings per common share $ 0.37 $ 0.24 Diluted earnings per common share: Basic weighted average shares outstanding per common share 40,970,905 38,200,597 Add: Shares of common stock assumed issued upon exercise of stock options 1,156,866 401,781 Diluted weighted average shares outstanding per common share 42,127,771 38,602,378 Diluted earnings per common share $ 0.36 $ 0.24

Subsequent Event

Subsequent Event	3 Months Ended
	Jul. 31, 2017
Subsequent Events
Subsequent Event	12. Subsequent Events Subsequent to July 31, 2017, the Company acquired ASI Building Products, LLC (“ASI”) for a total purchase price of approximately $16,500. ASI distributes ceiling and other interior building products with three locations in Michigan.

Basis of Presentation, Busine18

Basis of Presentation, Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jul. 31, 2017
Basis of Presentation, Business and Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission that permit reduced disclosure for interim periods. The condensed consolidated balance sheet as of April 30, 2017 was derived from audited financial statements, but does not include all necessary disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of our management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary for a fair statement of the results of operations, financial position, and cash flows. All adjustments are of a normal recurring nature unless otherwise disclosed. Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be the same as those for the full year. For a more complete discussion of the Company’s significant accounting policies and other information, you should read these unaudited condensed consolidated financial statements in conjunction with our annual audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2017, which include all disclosures required by GAAP.
Initial and Secondary Public Offerings	Initial and Secondary Public Offerings On May 13, 2016, we amended and restated our certificate of incorporation to increase our authorized share count to 550,000,000 shares of stock, including 500,000,000 shares of common stock and 50,000,000 shares of preferred stock, each with a par value $0.01 per share and to split our common stock 10.158-for-1. Unless otherwise noted herein, historic share data has been adjusted to give effect to the stock split. On June 1, 2016, we completed our initial public offering, or IPO, of 8,050,000 shares of common stock at a price of $21.00 per share, including 1,050,000 shares of common stock that were issued as a result of the exercise in full by the underwriters of an option to purchase additional shares to cover over‑allotments. After underwriting discounts and commissions but before expenses, we received net proceeds from the IPO of approximately $156,900. We used these proceeds together with cash on hand to repay the $160,000 principal amount of our term loan debt outstanding under our senior secured second lien term loan facility, or the Second Lien Facility, which was a payment in full of the entire loan balance due under the Second Lien Facility. On February 28, 2017, certain of our stockholders completed a secondary public offering of 7,992,500 shares of the Company's common stock at a price to the public of $29.25 per share, including 1,042,500 shares of common stock that were sold as a result of the exercise in full by the underwriters of an option to purchase additional shares that was granted by the selling stockholders. We did not receive any proceeds from the sale of our common stock by the selling stockholders. On June 7, 2017, certain of our stockholders completed an additional secondary public offering of 5,750,000 shares of the Company's common stock at a price to the public of $33.00 per share, including 750,000 shares of common stock that were sold as a result of the exercise in full by the underwriters of an option to purchase additional shares that was granted by the selling stockholders. As a result of such offering, the control group consisting of certain affiliates of AEA and certain other of our stockholders no longer controls a majority of the voting power of our outstanding common stock. Accordingly, we are no longer a "controlled company" within the meaning of the New York Stock Exchange corporate governance standards. We did not receive any proceeds from the sale of our common stock by the selling stockholders.
Revision of Financial Statements	Revision of Financial Statements During the preparation of the Annual Report on Form 10-K for the year ended April 30, 2017, the Company determined that cash flows related to payments of working capital settlements were inappropriately classified as financing activities in the Consolidated Statements of Cash Flows for the fiscal year ended April 30, 2016 and the quarters ended July 31, 2016, October 31, 2016, and January 31, 2017. This resulted in understatements of "Cash used in investing activities" (specifically the line item "Acquisitions of businesses, net of cash acquired") and "Cash provided by financing activities" (specifically the line item "Cash paid for contingent consideration") of $6,598 in the Consolidated Statements of Cash Flows for the fiscal year ended April 30, 2016. The Company assessed the materiality of the misstatement in accordance with SEC Staff Accounting Bulletin No. 99, Materiality, and concluded that this misstatement was not material to the Company's previously issued financial statements and that amendments of previously filed reports were therefore not required. However, the Company has elected to revise the previously reported quarterly amount in the Condensed Consolidated Statements of Cash Flows in this Form 10-Q filing. Disclosure of the revised amounts for the quarters ended October 31, 2016 and January 31, 2017 will also be reflected in future filings containing such interim periods. The effect of this revision on the line items within the Company's Condensed Consolidated Statement of Cash Flows for the quarter ended July 31, 2016 was as follows: Three Months Ended July 31, 2016 As previously reported Adjustment As revised Cash flows from investing activities: Acquisition of business, net of cash acquired $ (23,278) $ (3,304) $ (26,582) Cash used in investing activities $ (25,044) $ (3,304) $ (28,348) Cash flows from financing activities: Cash paid for contingent consideration $ (3,304) $ 3,304 $ — Cash flows from financing activities $ 46,420 $ 3,304 $ 49,724
Principles of Consolidation	Three Months Ended July 31, 2016 As previously reported Adjustment As revised Cash flows from investing activities: Acquisition of business, net of cash acquired $ (23,278) $ (3,304) $ (26,582) Cash used in investing activities $ (25,044) $ (3,304) $ (28,348) Cash flows from financing activities: Cash paid for contingent consideration $ (3,304) $ 3,304 $ — Cash flows from financing activities $ 46,420 $ 3,304 $ 49,724 Principles of Consolidation The Condensed Consolidated Financial Statements present the results of operations, financial position and cash flows of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. The results of operations of businesses acquired are included from their respective dates of acquisition.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Insurance Liabilities	Insurance Liabilities The Company is self‑insured for certain losses related to medical claims. The Company has stop‑loss coverage to limit the exposure arising from medical claims. The Company has deductible‑based insurance policies for certain losses related to general liability, automobile and workers’ compensation. The deductible amount per incident is $250, $500 and $1,000 for general liability, workers’ compensation and automobile, respectively. The coverage consists of a primary layer and an excess layer. The primary layer of coverage is from $500 to $2,000 and the excess layer covers claims from $2,000 to $100,000. The expected ultimate cost for claims incurred as of the balance sheet date is not discounted and is recognized as a liability. Insurance losses for claims filed and claims incurred but not reported are accrued based upon estimates of the aggregate liability for uninsured claims using loss development factors and actuarial assumptions followed in the insurance industry and historical loss development experience. At July 31, 2017 and April 30, 2017, the aggregate liabilities for medical self‑insurance were $4,295 and $3,429, respectively, and are recorded in “Other accrued expenses and current liabilities” within the Condensed Consolidated Balance Sheets. At July 31, 2017 and April 30, 2017, reserves for general liability, automobile and workers’ compensation totaled approximately $17,207 and $15,934, respectively, and are recorded in “Other accrued expenses and current liabilities” and “Other liabilities” in the Condensed Consolidated Balance Sheets. At July 31, 2017 and April 30, 2017, amounts recoverable for medical self-insurance, general liability, automobile and workers’ compensation totaled approximately $8,298 and $6,708, respectively, and are recorded in “Prepaid expenses and other current assets” and “Other assets” in the Condensed Consolidated Balance Sheets.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The carrying value of cash and cash equivalents, receivables, accounts payable, other current liabilities and accrued interest approximates fair value due to its short‑term nature. Based on borrowing rates available to the Company for loans with similar terms, the carrying values of the ABL Facility, First Lien Facility and other debt approximate fair value. Accounting guidance establishes a three‑level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market. Level 2 Inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model‑derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability. As discussed in Note 7, we have recorded stock appreciation rights, deferred compensation and redeemable noncontrolling interests at their expected fair values. The determination of these fair values is based on Level 3 inputs. These inputs include a volatility rate based on comparable entities, a discount rate, and the expected time to redemption of the liabilities, historical values of the book equity of certain subsidiaries, and market information for comparable entities. The use of these inputs to derive the fair value of the liabilities at a point in time can result in volatility to the financial statements to our current and projected financial results.
Stock Appreciation Rights, Deferred Compensation and Liabilities to Noncontrolling Interest Holders	Stock Appreciation Rights, Deferred Compensation and Liabilities to Noncontrolling Interest Holders Certain subsidiaries have equity based compensation agreements with the subsidiary’s employees and minority shareholders. These agreements are stock appreciation rights, deferred compensation agreements, and liabilities to noncontrolling interest holders. Since these agreements are typically settled in cash or notes, and do not meet the criteria established by ASC 718, “ Compensation—Stock Compensation ” to be accounted for in “Stockholders’ equity”, they are accounted for as liability awards. See Note 7.
Treasury Stock	Treasury Stock We did not have any treasury stock activity for the quarters ended July 31, 2017 or 2016.
Net Earnings (Loss) Per Share	Net Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted‑average number of outstanding shares of common stock for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if instruments that may require the issuance of common stock in the future were settled and the underlying shares of common stock were issued. Diluted earnings (loss) per share is computed by increasing the weighted‑average number of outstanding shares of common stock computed in basic earnings (loss) per share to include the dilutive effect of stock options and other equity‑based instruments held by the Company’s employees and directors during each period. In periods of net loss, the number of shares used to calculate diluted earnings (loss) per share is the same as basic net earnings (loss) per share.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Revenue recognition —In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"), to clarify the principles used to recognize revenue for all entities. In August 2015, the FASB issued ASU No. 2015-14 which deferred the effective date of ASU 2014-09 by one year. As a result of this deferral, ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted for annual reporting periods beginning after December 15, 2016. The guidance allows for either a full retrospective or a modified retrospective transition method. We are continuing to evaluate our method of adoption and the impact this guidance, including recent amendments and interpretations, may have on our financial position, results of operations and cash flows. Leases —In February 2016, the FASB issued ASU No. 2016-02, "Leases" ("ASU 2016-02"). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with such classification affecting the pattern of expense recognition in the statement of operations. The new standard is effective for the Company's fiscal year beginning May 1, 2019, including interim reporting periods within that fiscal year. A modified transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While the Company is still evaluating the impact of its pending adoption of the new standard on its Consolidated Financial Statements, the Company expects that upon adoption it will recognize ROU assets and liabilities that could be material. Stock Compensation — Effective May 1, 2017, we adopted Accounting Standards Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting. The provisions of this update simplify many key aspects of the accounting for and cash flow presentation of employee share-based compensation transactions, including accounting for income taxes, forfeitures, and statutory withholding requirements. In accordance with the new guidance, on a prospective basis, we will record all excess tax benefits or tax deficiencies as a component of our Provision for income taxes on our Consolidated Statements of Operations and Comprehensive Income. Additionally, on a prospective basis, we will present excess tax benefits or deficiencies as operating cash flows versus reclassifying the amount out of operating cash flows and presenting it in financing activities on the Condensed Consolidated Statements of Cash Flows. Additional amendments from this guidance related to forfeitures and minimum statutory withholding tax requirements had no impact to our financial position, results of operations or cash flows. As permitted, we continue to estimate forfeitures to determine the amount of compensation cost to be recognized each period rather than electing to account for forfeitures as they occur, and we continue to present the value of shares withheld for minimum statutory tax withholding requirements on the Condensed Consolidated Statements of Cash Flows as a financing activity. Another impact of the adoption is that the calculation of the effect of dilutive securities now excludes any derived excess tax benefits or deficiencies from assumed future proceeds. Inventory — In July 2015, the FASB issued ASU No. 2015-11, “Inventory, Simplifying the Measurement of Inventory” (“ASU 2015-11”). The amended guidance requires that inventory be measured at the lower of cost and net realizable value. The amended guidance is limited to inventory measured using the first-in, first-out (“FIFO”) or average cost methods and excludes inventory measured using last-in, first-out (“LIFO”) or retail inventory methods. ASU 2015-11 is effective for fiscal years, and interim periods, beginning after December 15, 2016. The Company adopted this guidance on May 1, 2017 (the first day of fiscal 2018) with no material impact on the Company’s financial position, results of operations or cash flows.

Basis of Presentation, Busine19

Basis of Presentation, Business and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Jul. 31, 2017
Basis of Presentation, Business and Summary of Significant Accounting Policies
Schedule of effect of revision on Consolidated Statement of Cash Flows	The effect of this revision on the line items within the Company's Condensed Consolidated Statement of Cash Flows for the quarter ended July 31, 2016 was as follows: Three Months Ended July 31, 2016 As previously reported Adjustment As revised Cash flows from investing activities: Acquisition of business, net of cash acquired $ (23,278) $ (3,304) $ (26,582) Cash used in investing activities $ (25,044) $ (3,304) $ (28,348) Cash flows from financing activities: Cash paid for contingent consideration $ (3,304) $ 3,304 $ — Cash flows from financing activities $ 46,420 $ 3,304 $ 49,724

Business Acquisitions (Tables)

Business Acquisitions (Tables) - 2017 Acquisitions	3 Months Ended
	Jul. 31, 2017
Business Acquisitions
Schedule of acquisitions completed	Company name Form of acquisition Date of acquisition Wall & Ceiling Supply Co., Inc. Purchase of net assets May 2, 2016 Rockwise, LLC Purchase of net assets July 5, 2016 Steven F. Kempf Building Materials, Inc. Purchase of net assets August 29, 2016 Olympia Building Supplies, LLC/Redmill, Inc. Purchase of 100% of outstanding common stock September 1, 2016 United Building Materials, Inc. Purchase of net assets October 3, 2016 Ryan Building Materials, Inc. Purchase of net assets October 31, 2016 Interior Products Supply Purchase of net assets December 5, 2016 Hawaii-based distribution business of Grabber Construction Products Purchase of net assets February 1, 2017
Schedule of allocation of consideration for acquisitions	Preliminary Preliminary purchase price purchase price allocation Adjustments/ allocation April 30, 2017 Reclassifications July 31, 2017 Cash and cash equivalents $ 1,558 $ — $ 1,558 Trade accounts and notes receivable 37,691 238 37,929 Inventories 16,504 — 16,504 Property and equipment 8,357 — 8,357 Other assets 657 — 657 Tradenames 9,490 — 9,490 Customer relationships 64,660 — 64,660 Goodwill 37,728 129 37,857 Deferred tax liability (6,011) — (6,011) Liabilities assumed (16,958) — (16,958) Purchase price $ 153,676 $ 367 $ 154,043

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Jul. 31, 2017
Goodwill and Intangible Assets
Schedule of goodwill activity	Carrying Amount Balance at May 1, 2017 $ 423,644 Working capital adjustments 129 Balance at July 31, 2017 $ 423,773
Schedule of components of definite lived intangible assets	Estimated Weighted July 31, 2017 useful average Gross Net lives amortization carrying Accumulated carrying (years) period amount amortization value Amortizable intangible assets: Customer relationships 5 - 13 10.9 $ 273,196 $ 121,011 $ 152,185 Definite lived tradenames 5 - 20 18.3 25,250 2,097 23,153 Vendor agreement 8 — 5,644 2,352 3,292 Leasehold interests 7 - 13 8.2 2,516 576 1,940 Totals $ 306,606 $ 126,036 $ 180,570 Estimated Weighted April 30, 2017 useful average Gross Net lives amortization carrying Accumulated carrying (years) period amount amortization value Amortizable intangible assets: Customer relationships 5 - 13 10.9 $ 273,196 $ 111,291 $ 161,905 Definite lived tradenames 5 - 20 18.3 25,250 1,718 23,532 Vendor agreement 8 — 5,644 2,176 3,468 Leasehold interests 7 - 13 8.2 2,516 496 2,020 Totals $ 306,606 $ 115,681 $ 190,925

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Jul. 31, 2017
Long-Term Debt
Schedule of long-term debt	July 31, April 30, 2017 2017 First Lien Term Loan due 2023 (1) (2) $ 566,037 $ 470,245 ABL Facility 13,399 103,353 Capital lease obligations, at an annual rate of 5.50%, due in monthly installments through July 2023 17,134 15,611 Installment notes at fixed rates up to 5.0%, due in monthly and annual installments through September 2023 (3) 6,287 5,711 602,857 594,920 Less: Current portion 12,936 11,530 Total long-term debt $ 589,921 $ 583,390 (1) Net of unamortized discount of $2,976 and $1,658 as of July 31, 2017 and April 30, 2017, respectively. (2) Net of deferred financing costs of $7,159 and $5,712 as of July 31, 2017 and April 30, 2017, respectively. (3) Net of unamortized discount of $725 and $751 as of July 31, 2017 and April 30, 2017, respectively.

Equity-Based Compensation - (Ta

Equity-Based Compensation - (Tables)	3 Months Ended
	Jul. 31, 2017
Equity-Based Compensation
Summary of stock option activity	Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price life (years) value Outstanding at May 1, 2017 2,087,645 $ 13.49 7.23 $ 47,336 Options granted — — Options exercised — — Options forfeited — — Options expired — — Outstanding at July 31, 2017 2,087,645 $ 13.49 6.97 $ 34,518 Exercisable at July 31, 2017 1,400,875 $ 12.79 6.83 $ 24,135 Expected to vest after July 31, 2017 686,770 $ 14.90 7.27 $ 10,383

Stock Appreciation Rights, De24

Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests (Tables)	3 Months Ended
	Jul. 31, 2017
Stock appreciation rights
Equity based compensation arrangements
Summary of changes to liability for equity based compensation arrangements	Stock appreciation rights as of May 1, 2017 (fair value) $ 20,662 Amounts redeemed — Change in fair value 590 Stock appreciation rights as of July 31, 2017 (fair value) $ 21,252
Deferred compensation
Equity based compensation arrangements
Summary of changes to liability for equity based compensation arrangements	Deferred compensation as of May 1, 2017 (fair value) $ 3,750 Amounts redeemed — Change in fair value 116 Deferred compensation as of July 31, 2017 (fair value) $ 3,866
Noncontrolling interest awards
Equity based compensation arrangements
Summary of changes to liability for equity based compensation arrangements	Non-controlling interests as of May 1, 2017 (fair value) $ 24,309 Amounts redeemed (1,000) Change in fair value 750 Non-controlling interests as of July 31, 2017 (fair value) $ 24,059

Segments (Tables)

Segments (Tables)	3 Months Ended
	Jul. 31, 2017
Segments
Schedule of net sales, Adjusted EBITDA and certain other measures	Three Months Ended July 31, 2017 Depreciation & Adjusted Net sales Gross profit amortization EBITDA Geographic divisions $ 636,367 $ 203,024 $ 16,026 $ 52,227 Other 5,790 2,080 64 525 Corporate — — 255 — $ 642,157 $ 205,104 $ 16,345 $ 52,752 Three Months Ended July 31, 2016 Depreciation & Adjusted Net sales Gross profit amortization EBITDA Geographic divisions $ 545,005 $ 176,840 $ 15,507 $ 45,608 Other 4,795 1,745 80 333 Corporate — — 208 — $ 549,800 $ 178,585 $ 15,795 $ 45,941
Reconciliation of Adjusted EBITDA to Net income	Three Months Ended July 31, 2017 2016 Adjusted EBITDA $ 52,752 $ 45,941 Interest expense (7,500) (7,577) Write-off of debt discount and deferred financing fees (74) (5,426) Interest income 23 43 Income tax expense (10,060) (6,159) Depreciation expense (5,990) (6,382) Amortization expense (10,355) (9,413) Stock appreciation (expense) or income(a) (590) 92 Redeemable noncontrolling interests(b) (866) (292) Equity-based compensation(c) (473) (673) Severance and other permitted costs(d) (205) (140) Transaction costs (acquisitions and other)(e) (159) (654) Gain on sale of assets 390 198 Management fee to related party(f) — (188) Effects of fair value adjustments to inventory(g) — (164) Interest rate cap mark-to-market(h) (196) (43) Secondary public offering costs(i) (631) — Debt transaction costs(j) (723) — Net income $ 15,343 $ 9,163 (a) Represents non‑cash income or expenses related to stock appreciation rights agreements. For additional details regarding stock appreciation rights, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies—Subsidiary Equity‑Based Deferred Compensation Arrangements” included in our Annual Report on Form 10-K for the year ended April 30, 2017. (b) Represents non‑cash compensation expense related to changes in the redemption values of noncontrolling interests. For additional details regarding redeemable noncontrolling interests of our subsidiaries, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies—Subsidiary Equity‑Based Deferred Compensation Arrangements” included in our Annual Report on Form 10-K for the year ended April 30, 2017. (c) Represents non‑cash equity‑based compensation expense related to the issuance of stock options. (d) Represents severance expenses and other costs permitted in calculations under the ABL Facility and the First Lien Facility. (e) Represents one‑time costs related to our IPO and acquisitions (other than the Acquisition) paid to third party advisors. (f) Represents management fees paid by us to AEA. Following our IPO, AEA no longer receives management fees from us. (g) Represents the non‑cash cost of sales impact of purchase accounting adjustments to increase inventory to its estimated fair value. (h) Represents the mark‑to‑market adjustments for the interest rate cap. (i) Represents one-time costs related to our secondary offering paid to third party advisors. Represents expenses paid to third party advisors related to debt refinancing activities.
Schedule of net sales to external customers by main product lines	Three Months Ended July 31, 2017 2016 Wallboard $ 284,657 $ 251,296 Ceilings 99,710 86,349 Steel framing 104,651 84,343 Other products 153,139 127,812 Total net sales $ 642,157 $ 549,800

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Jul. 31, 2017
Earnings Per Common Share
Schedule of computation of basic and diluted earnings (loss) per share of common stock	Three Months Ended July 31, 2017 2016 Net income $ 15,343 $ 9,163 Basic earnings per common share: Basic weighted average shares outstanding per common share 40,970,905 38,200,597 Basic earnings per common share $ 0.37 $ 0.24 Diluted earnings per common share: Basic weighted average shares outstanding per common share 40,970,905 38,200,597 Add: Shares of common stock assumed issued upon exercise of stock options 1,156,866 401,781 Diluted weighted average shares outstanding per common share 42,127,771 38,602,378 Diluted earnings per common share $ 0.36 $ 0.24

Basis of Presentation, Busine27

Basis of Presentation, Business and Summary of Significant Accounting Policies - Business (Details)	3 Months Ended
	Jul. 31, 2017statelocationitem
Business
Number of states in which products are distributed | state	42
Number of independent operations | item	0
Minimum
Business
Number of branches through which products are distributed | location	200

Basis of Presentation, Busine28

Basis of Presentation, Business and Summary of Significant Accounting Policies - Authorized Shares of Stock and Stock Split (Details)	May 13, 2016$ / sharesshares	Jul. 31, 2017$ / sharesshares	Apr. 30, 2017$ / sharesshares
Stock
Stock authorized (in shares)	550,000,000
Common stock authorized (in shares)	500,000,000	500,000,000	500,000,000
Preferred stock authorized (in shares)	50,000,000	50,000,000	50,000,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01	$ 0.01
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01	$ 0.01
Common Stock
Stock
Stock split ratio	10.158

Basis of Presentation, Busine29

Basis of Presentation, Business and Summary of Significant Accounting Policies - Initial and Secondary Public Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 07, 2017	Feb. 28, 2017	Jun. 01, 2016	Jul. 31, 2016
Initial and Secondary Public Offerings
Net proceeds from initial public offering			$ 156,900	$ 157,217
Second Lien Term Loan due 2022
Initial and Secondary Public Offerings
Loan repayment			$ 160,000	$ 160,000
Initial public offering | Common Stock
Initial and Secondary Public Offerings
Number of shares issued			8,050,000
Offering price (in dollars per share)			$ 21
Underwriters over-allotment option | Common Stock
Initial and Secondary Public Offerings
Number of shares issued			1,050,000
Selling stockholders | Secondary offering
Initial and Secondary Public Offerings
Shares sold	5,750,000	7,992,500
Price to the public (in dollars per share)	$ 33	$ 29.25
Selling stockholders | Underwriters over-allotment option
Initial and Secondary Public Offerings
Shares sold	750,000	1,042,500

Basis of Presentation, Busine30

Basis of Presentation, Business and Summary of Significant Accounting Policies - Revision of Previously Issued Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Jul. 31, 2017	Jul. 31, 2016	Apr. 30, 2016
Cash flows from investing activities:
Acquisition of business, net of cash acquired	$ (3,124)	$ (26,582)
Cash used in investing activities	(7,211)	(28,348)
Cash flows from financing activities:
Cash provided by financing activities	$ 6,533	49,724
As previously reported
Cash flows from investing activities:
Acquisition of business, net of cash acquired		(23,278)
Cash used in investing activities		(25,044)
Cash flows from financing activities:
Cash paid for contingent consideration		(3,304)
Cash provided by financing activities		46,420
Correction for misstatement of cash flows related to payments of working capital settlements
Cash flows from financing activities:
Cash paid for contingent consideration			$ 6,598
Correction for misstatement of cash flows related to payments of working capital settlements | Adjustment
Cash flows from investing activities:
Acquisition of business, net of cash acquired		(3,304)
Cash used in investing activities		(3,304)
Cash flows from financing activities:
Cash paid for contingent consideration		3,304
Cash provided by financing activities		$ 3,304

Basis of Presentation, Busine31

Basis of Presentation, Business and Summary of Significant Accounting Policies - Insurance Liabilities (Details) - USD ($) $ in Thousands	Jul. 31, 2017	Apr. 30, 2017
Other accrued expenses and current liabilities
Insurance Liabilities
Medical self-insurance	$ 4,295	$ 3,429
General Liability
Insurance Liabilities
Deductible amount	250
Workers' Compensation
Insurance Liabilities
Deductible amount	500
Automobile
Insurance Liabilities
Deductible amount	1,000
General liability, automobile and workers' compensation
Insurance Liabilities
Reserve for insurance	17,207	15,934
Insurance recovery receivable	8,298	$ 6,708
General liability, automobile and workers' compensation | Minimum
Insurance Liabilities
Primary layer of insurance coverage	500
Excess layer of insurance coverage	2,000
General liability, automobile and workers' compensation | Maximum
Insurance Liabilities
Primary layer of insurance coverage	2,000
Excess layer of insurance coverage	$ 100,000

Business Acquisitions (Details)

Business Acquisitions (Details) $ in Thousands	Aug. 01, 2017USD ($)location	Jul. 31, 2017USD ($)segment	Jul. 31, 2016USD ($)	Apr. 30, 2017USD ($)	Sep. 01, 2016
Purchase price
Number of reportable segments | segment		1
Allocation of consideration for acquisitions
Goodwill		$ 423,773		$ 423,644
Adjustments/Reclassifications
Goodwill		129
As previously reported
Adjustments/Reclassifications
Contingent consideration paid out			$ 3,304
ASI | Forecast
Purchase price
Aggregate purchase price	$ 16,500
Number of locations | location	3
2017 Acquisitions
Purchase price
Aggregate purchase price				154,043
Cash consideration				149,771
Contingent consideration				4,272
Allocation of consideration for acquisitions
Cash and cash equivalents		1,558
Trade accounts and notes receivable		37,929
Inventories		16,504
Property and equipment		8,357
Other assets		657
Goodwill		37,857
Deferred tax liability		(6,011)
Liabilities assumed		(16,958)
Purchase price		154,043
Adjustments/Reclassifications
Trade accounts and notes receivable		238
Goodwill		129
Purchase price		367
Increase in total consideration paid		367
Goodwill and intangible assets
Goodwill expected to be deductible for U.S. federal income tax purposes		25,639
Other intangible assets expected to be deductible for U.S. federal income tax purposes		53,550
Goodwill nondeductible for U.S. federal income tax purposes		12,218
Other intangible assets nondeductible for U.S. federal income tax purposes		20,600
2017 Acquisitions | Tradenames
Allocation of consideration for acquisitions
Definite lived intangible assets		9,490
2017 Acquisitions | Customer relationships
Allocation of consideration for acquisitions
Definite lived intangible assets		$ 64,660
2017 Acquisitions | As previously reported
Allocation of consideration for acquisitions
Cash and cash equivalents				1,558
Trade accounts and notes receivable				37,691
Inventories				16,504
Property and equipment				8,357
Other assets				657
Goodwill				37,728
Deferred tax liability				(6,011)
Liabilities assumed				(16,958)
Purchase price				153,676
2017 Acquisitions | As previously reported | Tradenames
Allocation of consideration for acquisitions
Definite lived intangible assets				9,490
2017 Acquisitions | As previously reported | Customer relationships
Allocation of consideration for acquisitions
Definite lived intangible assets				$ 64,660
Olympia Building Supplies, LLC/Redmill, Inc.
Business Acquisitions
Outstanding common stock purchased (as a percent)					100.00%

Goodwill and Intangible Asset33

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	3 Months Ended
	Jul. 31, 2017USD ($)
Goodwill
Balance	$ 423,644
Working capital adjustments	129
Balance	$ 423,773

Goodwill and Intangible Asset34

Goodwill and Intangible Assets - Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jul. 31, 2017	Apr. 30, 2017
Definite lived intangible assets
Gross carrying amount	$ 306,606	$ 306,606
Accumulated amortization	126,036	115,681
Net carrying value	$ 180,570	$ 190,925
Customer relationships
Definite lived intangible assets
Weighted average amortization period	10 years 10 months 24 days	10 years 10 months 24 days
Gross carrying amount	$ 273,196	$ 273,196
Accumulated amortization	121,011	111,291
Net carrying value	$ 152,185	$ 161,905
Customer relationships | Minimum
Definite lived intangible assets
Estimated useful lives	5 years	5 years
Customer relationships | Maximum
Definite lived intangible assets
Estimated useful lives	13 years	13 years
Tradenames
Definite lived intangible assets
Weighted average amortization period	18 years 3 months 18 days	18 years 3 months 18 days
Gross carrying amount	$ 25,250	$ 25,250
Accumulated amortization	2,097	1,718
Net carrying value	$ 23,153	$ 23,532
Tradenames | Minimum
Definite lived intangible assets
Estimated useful lives	5 years	5 years
Tradenames | Maximum
Definite lived intangible assets
Estimated useful lives	20 years	20 years
Vendor agreement
Definite lived intangible assets
Estimated useful lives	8 years	8 years
Gross carrying amount	$ 5,644	$ 5,644
Accumulated amortization	2,352	2,176
Net carrying value	$ 3,292	$ 3,468
Leasehold interests
Definite lived intangible assets
Weighted average amortization period	8 years 2 months 12 days	8 years 2 months 12 days
Gross carrying amount	$ 2,516	$ 2,516
Accumulated amortization	576	496
Net carrying value	$ 1,940	$ 2,020
Leasehold interests | Minimum
Definite lived intangible assets
Estimated useful lives	7 years	7 years
Leasehold interests | Maximum
Definite lived intangible assets
Estimated useful lives	13 years	13 years

Goodwill and Intangible Asset35

Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jul. 31, 2017	Apr. 30, 2017
Goodwill and Intangible Assets
Tradenames	$ 61,368	$ 61,368

Goodwill and Intangible Asset36

Goodwill and Intangible Assets - Amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Intangible assets
Amortization expense	$ 10,355	$ 9,413
Depreciation and amortization expense
Intangible assets
Amortization expense	$ 10,355	$ 9,413

Long-Term Debt - Components (De

Long-Term Debt - Components (Details) - USD ($) $ in Thousands	Jul. 31, 2017	Apr. 30, 2017
Long-term debt
Total long-term debt	$ 602,857	$ 594,920
Less: Current portion	12,936	11,530
Long-term debt, less current portion	589,921	583,390
First Lien Term Loan due 2023
Long-term debt
Total long-term debt	566,037	470,245
Unamortized discount	2,976	1,658
Deferred financing costs	7,159	5,712
ABL Facility
Long-term debt
Total long-term debt	13,399	103,353
Capital lease obligations
Long-term debt
Total long-term debt	$ 17,134	$ 15,611
Interest rate	5.50%	5.50%
Installment notes
Long-term debt
Total long-term debt	$ 6,287	$ 5,711
Unamortized discount	$ 725	$ 751
Installment notes | Maximum
Long-term debt
Interest rate	5.00%	5.00%

Long-Term Debt - Acquisition De

Long-Term Debt - Acquisition Debt (Details) - USD ($) $ in Thousands	Jun. 07, 2017	Nov. 18, 2016	Sep. 27, 2016	Jun. 01, 2016	Apr. 01, 2014	Jul. 31, 2017	Jul. 31, 2016
Long-term debt
Repayment of amounts outstanding under credit facility						$ 257,382	$ 225,702
Net amount of debt issued						577,616
Cash paid for interest						6,792	6,613
Write-off of debt discount and deferred financing fees						74	5,426
Term Loan Facilities, April 1, 2014
Long-term debt
Face amount of debt					$ 550,000
First Lien Term Loan due 2021
Long-term debt
Net amount of debt issued					388,050
Original issue discount					1,950
Loan repayment	$ 477,616
Second Lien Term Loan due 2022
Long-term debt
Net amount of debt issued					158,400
Original issue discount					$ 1,600
Loan repayment				$ 160,000			$ 160,000
Write-off of debt discount and deferred financing fees				$ 5,426
Incremental First Lien Term Commitments Amendment
Long-term debt
Face amount of debt			$ 481,225
Reduction to interest rate margin at each pricing level (as a percent)			(25.00%)
Loan repayment			$ 381,225
Write-off of debt discount and deferred financing fees			$ 1,466
Incremental First Lien Term Commitments Amendment | LIBOR
Long-term debt
Variable rate floor (as a percent)			1.00%
Margin added to variable rate (as a percent)			3.50%
Second amendment to First Lien Credit Agreement
Long-term debt
Face amount of debt	$ 577,616
Reduction to interest rate margin at each pricing level (as a percent)	(50.00%)
Loan repayment						$ 477,616
Second amendment to First Lien Credit Agreement | LIBOR
Long-term debt
Variable rate floor (as a percent)	1.00%
Margin added to variable rate (as a percent)	3.00%
ABL Facility
Long-term debt
Loan repayment	$ 94,000
ABL Second Amendment
Long-term debt
Reduction to interest rate margin at each pricing level (as a percent)		0.25%

Long-Term Debt - Asset-Based Le

Long-Term Debt - Asset-Based Lending Facility (Details) - USD ($) $ in Thousands	Nov. 18, 2016	Feb. 17, 2016	Apr. 01, 2014
ABL Facility
Long-term debt
Maximum amount under the facility			$ 200,000
ABL First Amendment
Long-term debt
Maximum amount under the facility		$ 300,000	200,000
Accordion feature		100,000
ABL First Amendment | Swing-line
Long-term debt
Maximum amount under the facility		$ 30,000	$ 20,000
ABL Second Amendment
Long-term debt
Maximum amount under the facility	$ 345,000
Reduction to interest rate margin at each pricing level (as a percent)	0.25%
ABL Second Amendment | Swing-line
Long-term debt
Maximum amount under the facility	$ 34,500

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016	Apr. 30, 2017
Income Taxes
Valuation allowance (in dollars)	$ 297		$ 297
Effective income tax rate (as a percent)	39.60%	40.20%

Equity-Based Compensation - Gen

Equity-Based Compensation - General (Details)	3 Months Ended
	Jul. 31, 2017shares
Stock options
Stock options
Vesting period	4 years
Term	10 years
Plan
Stock options
Shares authorized	3,591,422

Equity-Based Compensation - Bla

Equity-Based Compensation - Black Scholes Options - Pricing Model (Details) - Stock options	3 Months Ended
	Jul. 31, 2017shares
Fair Value Assumptions
Dividend yield	0.00%
Awards issued	0

Equity-Based Compensation - Sto

Equity-Based Compensation - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Jul. 31, 2017	Apr. 30, 2017
Stock option activity
Outstanding, beginning of the period (in shares)	2,087,645
Options granted (in shares)	0
Outstanding, end of the period (in shares)	2,087,645	2,087,645
Exercisable at end of period (in shares)	1,400,875
Expected to vest after end of period (in shares)	686,770
Weighted average exercise price
Outstanding, beginning of period (in dollars per share)	$ 13.49
Outstanding, end of the period (in dollars per share)	13.49	$ 13.49
Exercisable at end of period (in dollars per share)	12.79
Expected to vest after end of period (in dollars per share)	$ 14.90
Other disclosures
Weighted average remaining contractual life, Outstanding	6 years 11 months 19 days	7 years 2 months 23 days
Weighted average remaining contractual life, Exercisable	6 years 9 months 29 days
Weighted average remaining contractual life, Expected to vest after end of period	7 years 3 months 7 days
Aggregate intrinsic value, options outstanding	$ 34,518	$ 47,336
Aggregate intrinsic value, options exercisable at end of period	24,135
Aggregate intrinsic value, options expected to vest after end of period	$ 10,383

Stock Appreciation Rights, De44

Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016	Apr. 30, 2017
Equity based compensation arrangements
Long-term liabilities related to plans	$ 21,560		$ 22,576
Stock appreciation income or (expense)	590	$ (92)
Redeemable noncontrolling interests	$ 866	$ 292
Stock appreciation rights
Equity based compensation arrangements
Settlement period	4 years
Award liability as of beginning of year	$ 20,662
Change in fair value	590
Award liability as of end of year	21,252
Stock appreciation rights | Accrued compensation and employee benefits
Equity based compensation arrangements
Current liabilities related to plans	529		878
Stock appreciation rights | Other liabilities
Equity based compensation arrangements
Long-term liabilities related to plans	$ 20,723		19,784
Deferred compensation
Equity based compensation arrangements
Settlement period	5 years
Award liability as of beginning of year	$ 3,750
Change in fair value	116
Award liability as of end of year	3,866
Deferred compensation | Accrued compensation and employee benefits
Equity based compensation arrangements
Current liabilities related to plans	344		480
Deferred compensation | Other liabilities
Equity based compensation arrangements
Long-term liabilities related to plans	$ 3,522		3,450
Noncontrolling interest awards
Equity based compensation arrangements
Settlement period	5 years
Award liability as of beginning of year	$ 24,309
Amounts redeemed	(1,000)
Change in fair value	750
Award liability as of end of year	24,059
Noncontrolling interest awards | Accrued compensation and employee benefits
Equity based compensation arrangements
Current liabilities related to plans	2,498		1,733
Noncontrolling interest awards | Liabilities to noncontrolling interest holders, less current portion
Equity based compensation arrangements
Long-term liabilities related to plans	$ 21,560		$ 22,576

Transactions With Related Par45

Transactions With Related Parties - Facilities Rental (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Affiliated partnerships or entities | Lease of office and warehouse facilities | Selling, general and administrative expenses
Transactions with related parties
Rent expense	$ 195	$ 195

Transactions With Related Par46

Transactions With Related Parties - Purchased Inventories (Details) - Southern Wall Products, Inc. - Inventory purchases - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016	Apr. 30, 2017
Transactions with related parties
Purchases from related party	$ 3,481	$ 3,165
Accounts payable
Transactions with related parties
Due to SWP	$ 1,135		$ 1,091

Transactions With Related Par47

Transactions With Related Parties - Management Agreement (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	May 31, 2016	Jul. 31, 2016
Transactions with related parties
Management fee		$ 188
AEA Investors LP | Management agreement
Transactions with related parties
Annual fee	$ 2,250
AEA Investors LP | Management agreement | Selling, general and administrative expenses
Transactions with related parties
Management fee		$ 188

Segments - Number (Details)

Segments - Number (Details)	3 Months Ended	12 Months Ended
	Jul. 31, 2017segmentdivision	Apr. 30, 2017segment
Segments
Number of operating segments	6	7
Number of geographic divisions | division	6
Number of reportable segments	1

Segments - Net Sales, Adjusted

Segments - Net Sales, Adjusted EBITDA and Certain Other Measures (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Segment information
Net sales	$ 642,157	$ 549,800
Gross profit	205,104	178,585
Depreciation and amortization	16,345	15,795
Adjusted EBITDA	52,752	45,941
Geographic divisions
Segment information
Net sales	636,367	545,005
Gross profit	203,024	176,840
Depreciation and amortization	16,026	15,507
Adjusted EBITDA	52,227	45,608
Other
Segment information
Net sales	5,790	4,795
Gross profit	2,080	1,745
Depreciation and amortization	64	80
Adjusted EBITDA	525	333
Corporate
Segment information
Depreciation and amortization	$ 255	$ 208

Segments - Reconciliation of Ne

Segments - Reconciliation of Net Income to Adjusted EBITDA (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Segments
Adjusted EBITDA	$ 52,752	$ 45,941
Interest expense	(7,500)	(7,577)
Write-off of debt discount and deferred financing fees	(74)	(5,426)
Interest income	(23)	(43)
Income tax expense	(10,060)	(6,159)
Depreciation expense	(5,990)	(6,382)
Amortization expense	(10,355)	(9,413)
Stock appreciation (expense) or income	(590)	92
Redeemable noncontrolling interests	(866)	(292)
Equity-based compensation	(473)	(673)
Severance and other permitted costs	(205)	(140)
Transaction costs (acquisitions and other)	(159)	(654)
Gain on sale of assets	390	198
Management fee to related party		(188)
Effects of fair value adjustments to inventory		(164)
Interest rate cap mark-to-market	(196)	(43)
Secondary public offering costs	(631)
Debt transaction costs	(723)
Net income	$ 15,343	$ 9,163

Segments - Net Sales by Main Pr

Segments - Net Sales by Main Product Lines (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Revenue from external customers
Total net sales	$ 642,157	$ 549,800
Wallboard
Revenue from external customers
Total net sales	284,657	251,296
Ceilings
Revenue from external customers
Total net sales	99,710	86,349
Steel framing
Revenue from external customers
Total net sales	104,651	84,343
Other products
Revenue from external customers
Total net sales	$ 153,139	$ 127,812

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Computation of basic and diluted earnings per share of common stock
Net income	$ 15,343	$ 9,163
Basic earnings per common share:
Basic weighted average shares outstanding per common share (in shares)	40,970,905	38,200,597
Basic earnings per common share (in dollars per share)	$ 0.37	$ 0.24
Diluted earnings per common share:
Basic weighted average shares outstanding per common share (in shares)	40,970,905	38,200,597
Add: Shares of common stock assumed issued upon exercise of stock options (in shares)	1,156,866	401,781
Diluted weighted average shares outstanding per common share (in shares)	42,127,771	38,602,378
Diluted earnings per common share (in dollars per share)	$ 0.36	$ 0.24

Subsequent Event (Details)

Subsequent Event (Details) - ASI - Subsequent Event $ in Thousands	Aug. 01, 2017USD ($)location
Subsequent Events
Aggregate purchase price | $	$ 16,500
Number of locations | location	3