GMS (GMS) 10-Q 7 Dec 17 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Oct. 31, 2017	Dec. 07, 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	Oct. 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		41,030,800
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2017	Apr. 30, 2017
Current assets:
Cash and cash equivalents	$ 19,781	$ 14,561
Trade accounts and notes receivable, net of allowances of $11,581 and $9,851, respectively	354,394	328,988
Inventories, net	209,932	200,234
Prepaid expenses and other current assets	15,258	11,403
Total current assets	599,365	555,186
Property and equipment, net of accumulated depreciation of $77,856 and $71,409, respectively	157,893	154,465
Goodwill	426,288	423,644
Intangible assets, net	239,658	252,293
Other assets	7,523	7,677
Total assets	1,430,727	1,393,265
Current liabilities:
Accounts payable	118,918	102,688
Accrued compensation and employee benefits	39,418	58,393
Other accrued expenses and current liabilities	42,316	37,891
Current portion of long-term debt	27,786	11,530
Total current liabilities	228,438	210,502
Non-current liabilities:
Long-term debt, less current portion	582,755	583,390
Deferred income taxes, net	21,651	26,820
Other liabilities	34,657	35,371
Liabilities to noncontrolling interest holders, less current portion	15,543	22,576
Total liabilities	883,044	878,659
Commitments and contingencies
Stockholders’ equity:
Common stock, par value $0.01 per share, 500,000 shares authorized; 41,031 and 40,971 shares issued as of October 31, 2017 and April 30, 2017, respectively	410	410
Preferred stock, par value $0.01 per share, authorized 50,000,000 shares; 0 shares issued at October 31, 2017 and April 30, 2017
Additional paid-in capital	487,774	488,459
Retained earnings	59,987	26,621
Accumulated other comprehensive loss	(488)	(884)
Total stockholders’ equity	547,683	514,606
Total liabilities and stockholders’ equity	$ 1,430,727	$ 1,393,265

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 31, 2017	Apr. 30, 2017
Condensed Consolidated Balance Sheets
Trade accounts and notes receivable, allowances (in dollars)	$ 11,581	$ 9,851
Property and equipment, accumulated depreciation (in dollars)	$ 77,856	$ 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	41,031,000	40,971,000
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

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Condensed Consolidated Statements of Operations and Comprehensive Income
Net sales	$ 648,004	$ 591,846	$ 1,290,161	$ 1,141,646
Cost of sales (exclusive of depreciation and amortization shown separately below)	435,744	398,622	872,797	769,837
Gross profit	212,260	193,224	417,364	371,809
Operating expenses:
Selling, general and administrative	159,898	149,798	315,970	284,856
Depreciation and amortization	16,713	17,368	33,058	33,163
Total operating expenses	176,611	167,166	349,028	318,019
Operating income	35,649	26,058	68,336	53,790
Other (expense) income:
Interest expense	(7,917)	(7,154)	(15,417)	(14,731)
Write-off of debt discount and deferred financing fees		(1,466)	(74)	(6,892)
Other income, net	274	496	564	1,089
Total other (expense), net	(7,643)	(8,124)	(14,927)	(20,534)
Income before taxes	28,006	17,934	53,409	33,256
Provision for income taxes	9,983	710	20,043	6,869
Net income	$ 18,023	$ 17,224	$ 33,366	$ 26,387
Weighted average common shares outstanding:
Basic (in shares)	41,006	40,943	40,988	39,579
Diluted (in shares)	42,146	41,320	42,137	39,956
Net income per share:
Basic (in dollars per share)	$ 0.44	$ 0.42	$ 0.81	$ 0.67
Diluted (in dollars per share)	$ 0.43	$ 0.42	$ 0.79	$ 0.66
Comprehensive income:
Net income	$ 18,023	$ 17,224	$ 33,366	$ 26,387
Change in other comprehensive income, net of tax	243	100	396	12
Comprehensive income	$ 18,266	$ 17,324	$ 33,762	$ 26,399

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Cash flows from operating activities:
Net income	$ 33,366	$ 26,387
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization of property and equipment	12,013	12,930
Write-off, accretion and amortization of debt discount and deferred financing fees	1,412	8,264
Amortization of intangible assets	21,045	20,233
Provision for losses on accounts and notes receivable	873	(230)
Provision for obsolescence of inventory	483	(85)
Equity-based compensation	436	1,499
(Gain) on sale of assets	(598)	(130)
Changes in assets and liabilities, net of effects of acquisitions:
Trade accounts and notes receivable	(21,837)	(19,316)
Inventories	(7,366)	(13,444)
Accounts payable	14,590	606
Deferred income taxes	(5,437)	(12,373)
Prepaid expenses and other assets	(2,357)	(3,105)
Accrued compensation and employee benefits	(16,352)	(13,783)
Accrued expenses and liabilities	3,055	3,851
Liabilities to noncontrolling interest holders	(2,129)	907
Income tax receivable / payable	(1,834)	(11,520)
Cash provided by operating activities	29,363	691
Cash flows from investing activities:
Purchases of property and equipment	(8,442)	(5,024)
Proceeds from sale of assets	1,928	1,319
Acquisition of businesses, net of cash acquired	(18,375)	(139,939)
Cash used in investing activities	(24,889)	(143,644)
Cash flows from financing activities:
Repayments on the revolving credit facility	(443,920)	(635,732)
Borrowings from the revolving credit facility	352,567	686,216
Payments of principal on long-term debt	(2,888)	(2,178)
Principal repayments of capital lease obligations	(2,936)	(2,492)
Proceeds from issuance of common stock in initial public offering, net of underwriting discounts		156,941
Borrowings from term loan amendment	577,616	481,225
Debt issuance costs	(636)	(2,487)
Payments for taxes related to net share settlement of equity awards	(1,441)
Cash provided by financing activities	746	140,268
Increase (decrease) in cash and cash equivalents	5,220	(2,685)
Balance, beginning of period	14,561	19,072
Balance, end of period	19,781	16,387
Supplemental cash flow disclosures:
Cash paid for income taxes	28,455	30,790
Cash paid for interest	14,104	13,163
Supplemental schedule of noncash activities:
Assets acquired under capital lease	6,378	5,180
Issuance of installment notes associated with equity-based compensation liability awards	11,898	5,353
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)	$ (381,225)

Business, Basis of Presentation

Business, Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Oct. 31, 2017
Business, Basis of Presentation and Summary of Significant Accounting Policies
Business, Basis of Presentation and Summary of Significant Accounting Policies	1 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 210 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 Securities and Exchange Commission that permit reduced disclosure for interim periods. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary for a fair presentation of the results of operations, financial position and cash flows. All adjustments are of a normal recurring nature unless otherwise disclosed. The results of operations for interim periods are not necessarily indicative of results for the entire year . As a result, the unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2017. Initial and Secondary Public Offerings On May 13, 2016, we amended and restated our certificate of incorporation to increase our authorized share count to 550.0 million shares of stock, including 500.0 million shares of common stock and 50.0 million 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 (“IPO”), of 8.1 million shares of common stock at a price of $21.00 per share, including 1.1 million 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 $156.9 million. We used these proceeds together with cash on hand to repay the $160.0 million principal amount of our term loan debt outstanding under our senior secured second lien term loan facility (“the Second Lien Facility”), which was a payment in full of the entire loan balance due under the Second Lien Facility. On February 22, 2017, certain of our stockholders completed a secondary public offering of 8.0 million shares of the Company’s common stock at a price to the public of $29.25 per share, including 1.0 million 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 5.8 million shares of the Company’s common stock at a price to the public of $33.00 per share, including 0.8 million 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 Investors LP (“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). The Company 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 Quarterly Report on Form 10-Q. The effect of this revision on the line items within the Company’s Condensed Consolidated Statement of Cash Flows for the six months ended October 31, 2016 was as follows: Six Months Ended October 31, 2016 As Previously Reported Adjustment As Revised (in thousands) Cash flows from investing activities: Acquisition of business, net of cash acquired $ (135,613) $ (4,326) $ (139,939) Cash used in investing activities $ (139,318) $ (4,326) $ (143,644) Cash flows from financing activities: Cash paid for contingent consideration $ (4,326) $ 4,326 $ — Cash provided by financing activities $ 135,942 $ 4,326 $ 140,268 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 Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of 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 $0.25 million, $0.5 million and $1.0 million 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 $0.5 million to $2.0 million and the excess layer covers claims from $2.0 million to $100.0 million. 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. As of October 31, 2017 and April 30, 2017, the aggregate liabilities for medical self‑insurance were $3.8 million and $3.4 million, respectively, and are included in other accrued expenses and current liabilities in the Condensed Consolidated Balance Sheets. As of October 31, 2017 and April 30, 2017, reserves for general liability, automobile and workers’ compensation totaled approximately $13.7 million and $15.9 million, respectively, and are included in other accrued expenses and current liabilities and other liabilities in the Condensed Consolidated Balance Sheets. As of October 31, 2017 and April 30, 2017, amounts recoverable for medical self-insurance, general liability, automobile and workers’ compensation totaled approximately $5.9 million and $6.7 million, respectively, and are included 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 Company’s 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, 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. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of outstanding shares of common stock for the period. Diluted earnings 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 per share is computed by increasing the weighted‑average number of outstanding shares of common stock computed in basic earnings 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 loss per share is the same as basic net loss per share. Recent Accounting Pronouncements Revenue recognition — In May 2014, the Financial Accounting Standards Board (the "FASB") issued authoritative guidance on revenue from contracts with customers. The new guidance supersedes most existing revenue recognition guidance and outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers . In August 2015, the FASB issued guidance that deferred the effective date by one year. The standard is now required to be adopted by public business entities in annual periods beginning on or after December 15, 2017, and interim periods within those annual periods, and may be applied on a full retrospective or modified retrospective approach. Early adoption at the original effective date is permitted. The Company intends to adopt the standard in the first quarter of its fiscal year ending April 30, 2019. The Company is in the process of determining the method of adoption and assessing the impact the new standard will have on its consolidated financial statements. Based upon current interpretations, we do not anticipate the adoption of this standard to have a material impact on our financial statements; aside from adding expanded disclosures, which are currently under consideration, as are further considerations of potential additional or expanded internal controls over financial reporting. Leases —In February 2016, the FASB issued authoritative guidance on accounting for leases. 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 (the first day of fiscal 2020), 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 financial statements, the Company expects that upon adoption it will recognize ROU assets and liabilities that could be material. Stock Compensation —In March 2016, the FASB issued authoritative guidance that simplifies 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. The Company adopted this guidance on May 1, 2017 (the first day of fiscal 2018) on a prospective basis. Effective May 1, 2017, the Company now records all excess tax benefits or tax deficiencies as a component of its provision for income taxes in the statement of operations. The Company recorded excess tax benefits of $1.1 million during the six months ended October 31, 2017. Additionally, the Company now presents excess tax benefits or deficiencies as operating cash flows versus reclassifying the amount out of operating cash flows and presenting it in financing activities in the statement 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 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 authoritative guidance on accounting for inventory. The new guidance requires that inventory be measured at the lower of cost and net realizable value. The new 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. The new standard 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

Business Acquisitions

Business Acquisitions	6 Months Ended
	Oct. 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 acquisition method. The assets acquired and liabilities assumed were recognized at their acquisition date fair values. Goodwill was measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed . Goodwill recognized 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 acquisitions are reflected in the Company’s Condensed Consolidated Financial Statements from the date of acquisition. Fiscal 2018 Acquisitions During the six months ended October 31, 2017, the Company completed the following acquisitions, with an aggregate purchase price of $17.3 million of cash consideration, subject to finalization of working capital settlement amounts. The pro forma impact of these acquisitions is not presented as the effects were not material to the Company’s Condensed Consolidated Financial Statements. Company Name Form of Acquisition Date of Acquisition ASI Building Products, LLC Purchase of net assets August 1, 2017 Washington Builders Supply, Inc. Purchase of net assets October 2, 2017 The preliminary allocation of purchase consideration for these acquisitions is summarized as follows: Preliminary Purchase Price Allocation October 31, 2017 (in thousands) Trade accounts and notes receivable $ 4,250 Inventories 2,814 Property and equipment 794 Tradenames 1,000 Vendor agreement 1,000 Below market leases 350 Non-compete agreements 270 Customer relationships 5,800 Goodwill 2,529 Liabilities assumed (1,485) Purchase price $ 17,322 The goodwill and intangible assets related to these acquisitions are expected to be deductible 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 (related to the finalization of working capital settlements) necessary to finalize those fair values. Thus, the provisional measurements of fair value set forth above are preliminary. Such changes are not expected to be significant. The Company expects to complete the purchase price allocation as soon as practicable but no later than one year from the applicable acquisition date. Fiscal 2017 Acquisitions In fiscal 2017, the Company completed the following acquisitions, with an estimated aggregate purchase price of $154.0 million, comprised of $148.7 million of cash consideration and $5.3 million of consideration related to working capital settlements and contingent consideration. The pro forma impact of acquisitions is not presented as the effects were not material to the Company’s Condensed Consolidated 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 October 31, 2017 (in thousands) Cash and cash equivalents $ 1,558 $ — $ 1,558 Trade accounts and notes receivable 37,691 238 37,929 Inventories 16,504 — 16,504 Other current assets 657 14 671 Property and equipment 8,357 — 8,357 Tradenames 9,490 — 9,490 Customer relationships 64,660 — 64,660 Goodwill 37,728 115 37,843 Deferred tax liability (6,011) — (6,011) Liabilities assumed (16,958) — (16,958) Purchase price $ 153,676 $ 367 $ 154,043 During the six months ended October 31, 2017, the Company recorded adjustments to working capital resulting in an increase in total consideration paid of $0.4 million. As of October 31, 2017, goodwill of $25.6 million and other intangible assets of $53.6 million related to these acquisitions are expected to be deductible for U.S. federal income tax purposes. Also as of October 31, 2017, goodwill of $12.2 million and other intangible assets of $20.6 million related to these acquisitions 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 certain 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 certain of 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	6 Months Ended
	Oct. 31, 2017
Goodwill and Intangible Assets
Goodwill and Intangible Assets	3. Goodwill and Intangible Assets Goodwill The following table presents changes in the carrying amount of goodwill during the six months ended October 31, 2017: Carrying Amount (in thousands) Balance as of May 1, 2017 $ 423,644 Goodwill acquired 2,529 Purchase price adjustments 115 Balance as of October 31, 2017 $ 426,288 Intangible Assets The following table presents the components of the Company’s definite-lived intangible assets as of October 31, 2017 and April 30, 2017: Estimated Weighted October 31, 2017 Useful Average Gross Net Lives Amortization Carrying Accumulated Carrying (years) Period Amount Amortization Value (dollars in thousands) Customer relationships 5 - 13 10.9 $ 279,000 $ 131,012 $ 147,988 Definite-lived tradenames 5 - 20 18.0 26,250 2,501 23,749 Vendor agreements 8 - 10 8.3 6,644 2,553 4,091 Leasehold interests 7 - 15 9.0 2,866 661 2,205 Non-compete agreements 5 5.0 270 13 257 Totals $ 315,030 $ 136,740 $ 178,290 Estimated Weighted April 30, 2017 Useful Average Gross Net Lives Amortization Carrying Accumulated Carrying (years) Period Amount Amortization Value (dollars in thousands) 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 8.0 5,644 2,176 3,468 Leasehold interests 7 - 13 8.2 2,516 496 2,020 Totals $ 306,606 $ 115,681 $ 190,925 Definite-lived intangible assets are amortized over their estimated useful lives. The Company amortizes its customer relationships using an accelerated method to match the estimated cash flow generated by such assets, and amortizes its other definite-lived intangibles using the straight-line method because a pattern to which the expected benefits will be consumed or otherwise used up could not be reliably determined. Amortization expense related to definite-lived intangible assets was $10.7 million and $21.0 million for the three and six months ended October 31, 2017, respectively, and $10.8 million and $20.2 million for the three and six months ended October 31, 2016, respectively. Amortization expense is recorded in depreciation and amortization expense in the Condensed Consolidated Statements of Operations and Comprehensive Income. Based on the current amount of definite-lived intangible assets, the Company expects to record amortization expense of approximately $20.2 million during the remaining six months in the year ending April 30, 2018 and $34.2 million, $27.5 million, $22.2 million, $18.0 million and $56.2 million during the years ended April 30, 2019, 2020, 2021, 2022 and thereafter, respectively. Actual amortization expense to be reported in future periods could differ materially from these estimates as a result of acquisitions, changes in useful lives and other relevant factors. The Company’s indefinite-lived intangible assets consist of tradenames which had a carrying amount of $61.4 million as of October 31, 2017 and April 30, 2017.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Oct. 31, 2017
Long-Term Debt
Long-Term Debt	4. Long-Term Debt The Company’s long‑term debt consisted of the following as of October 31, 2017 and April 30, 2017: October 31, April 30, 2017 2017 (in thousands) First Lien Term Loan due 2023 (1) (2) $ 565,089 $ 470,245 ABL Facility 12,000 103,353 Capital lease obligations, at an annual rate of 5.50%, due in monthly installments through 2023 19,043 15,611 Installment notes at fixed rates up to 5.0%, due in monthly and annual installments through 2023 (3) 14,409 5,711 Carrying value of debt 610,541 594,920 Less current portion 27,786 11,530 Long-term debt $ 582,755 $ 583,390 (1) Net of unamortized discount of $2,864 and $1,658 as of October 31, 2017 and April 30, 2017, respectively. (2) Net of deferred financing costs of $6,774 and $5,712 as of October 31, 2017 and April 30, 2017, respectively. (3) Net of unamortized discount of $1,664 and $751 as of October 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 $550.0 million 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 $388.1 million (net of $2.0 million of original issue discount). The Second Term Loan was issued in an original aggregate principal amount of $158.4 million (net of $1.6 million 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 $160.0 million 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 $5.4 million, which is included in write-off of discount and deferred financing fees in the Condensed Consolidated Statements of Operations and Comprehensive Income for the six months ended October 31, 2016. 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 $481.2 million 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 $381.2 million 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 $1.5 million, which is included in write-off of discount and deferred financing fees in the Condensed Consolidated Statements of Operations and Comprehensive Income for the six months ended October 31, 2016. 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 $577.6 million 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. As of October 31, 2017, the applicable rate of interest was 4.38 %. Net proceeds were used to repay the existing First Lien Loan outstanding balance of approximately $477.6 million and approximately $94.0 million of loans under its asset based revolving credit facility as well as to pay related expenses. The Company recorded a write-off of debt discount and deferred financing fees of $0.1 million, which is included in write-off of discount and deferred financing fees in the Condensed Consolidated Statements of Operations and Comprehensive Income for the six months ended October 31, 2017. Asset Based Lending Facility The Company has an Asset Based Lending Credit Facility (the “ABL Facility”), that provides for aggregate revolving commitments of $345.0 million (including same day swing line borrowings of $34.5 million). 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. At the Company’s option, the interest rates applicable to the loans under the ABL Facility are based at LIBOR or base rate plus, in each case, an applicable margin. The margins applicable for each elected interest rate are subject to a pricing grid, as defined in the ABL Facility agreement, based on average daily availability for the most recent fiscal quarter. As of October 31, 2017, the applicable rate of interest was 4.75%. The ABL Facility also contains an unused commitment fee subject to utilization, as included in the ABL Facility agreement. As of October 31, 2017, the Company had available borrowing capacity of approximately $321.6 million under the ABL Facility. The ABL Facility will mature on November 18, 2021 unless the individual affected lenders agree to extend the maturity of their respective loans under the ABL Facility upon the Company's request and without the consent of any other lender. The ABL Facility contains a cross default provision with the First Lien Facility. Covenants under the ABL Facility and First Lien Facility The ABL Facility contains certain affirmative covenants, including financial and other reporting requirements. The Company was in compliance with all such covenants as of October 31, 2017. The First Lien Facility contains a number of covenants that limit our ability and the ability of our restricted subsidiaries, as described in the First Lien Credit Agreement, to: incur more indebtedness; pay dividends, redeem stock or make other distributions; make investments; create restrictions on the ability of our restricted subsidiaries to pay dividends to us or make other intercompany transfers; create liens securing indebtedness; transfer or sell assets; merge or consolidate; enter into certain transactions with our affiliates; and prepay or amend the terms of certain indebtedness. The Company was in compliance with all restrictive covenants as of October 31, 2017.

Income Taxes

Income Taxes	6 Months Ended
	Oct. 31, 2017
Income Taxes
Income Taxes	5. Income Taxes The Company considers each interim period an integral part of the annual period and measures tax expense (benefit) 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 $0.3 million against its deferred tax assets related to certain tax jurisdictions as of October 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 six months ended October 31, 2017 was 37.5% compared to an effective income tax rate of 20.7% for the six months ended October 31, 2016. The increase in the effective income tax rate is primarily due to the prior year election under section 338 (h)(10) of the Internal Revenue Code. As a result of this election, the Company decreased its deferred tax liabilities and tax expense in the three months ended October 31, 2016 by $7.0 million. The Company had no material uncertain tax positions as of October 31, 2017 and April 30, 2017.

Equity-Based Compensation

Equity-Based Compensation	6 Months Ended
	Oct. 31, 2017
Equity-Based Compensation
Equity-Based Compensation	6. Equity-Based Compensation General The Company has granted options to purchase the Company’s common stock under its 2014 GYP Holdings I Corp. Stock Option Plan. The stock options granted under this plan vest over a four-year period and have a 10‑year term. In October 2017, the shareholders of the Company approved the GMS Inc. Equity Incentive Plan (the “Equity Incentive Plan”). Future grants will be made from the Equity Incentive Plan. The Equity Incentive Plan is administered by a committee of the Board of Directors, which determines the terms of the awards granted. Under the Equity Incentive Plan, the committee may grant various forms of equity-based incentive compensation, including stock options, stock appreciation rights, restricted stock, restricted stock units and performance awards, among others. The Company’s Equity Incentive Plan provides for the issuance of a maximum of 2.5 million shares, of which approximately 2.5 million shares were still available for grant as of October 31, 2017. The Company intends to use authorized and unissued shares to satisfy share award exercises, unless otherwise noted. The Company measures compensation cost for all share‑based awards at fair value on the grant date (or measurement date if different) using the Black-Scholes option-pricing model and recognizes compensation expense, net of estimated forfeitures, over the requisite service period for awards expected to vest. The Company estimates forfeitures based on 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. Stock Option Awards The following table presents stock option activity for the six months ended October 31, 2017: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Price Life (years) Value (shares and dollars in thousands) Outstanding as of May 1, 2017 2,088 $ 13.49 7.23 $ 47,336 Options granted — — Options exercised 161 12.53 Options forfeited — — Options expired — — Outstanding as of October 31, 2017 1,927 $ 13.57 6.73 $ 39,467 Exercisable as of October 31, 2017 1,501 $ 12.83 6.56 $ 31,854 Expected to vest after October 31, 2017 426 $ 16.17 7.31 $ 7,614 The aggregate intrinsic value represents the value of the Company’s closing stock price on the last trading day of the period in excess of the weighted average exercise price multiplied by the number of options outstanding, exercisable or expected to vest. Options expected to vest are unvested shares net of expected forfeitures. The total intrinsic value of options exercised during the six months ended October 31, 2017 was $3.5 million. There were no stock option exercises during the six months ended October 31, 2016. As of October 31, 2017, there was $1. 0 million of total unrecognized compensation cost related to stock options. That cost is expected to be recognized over a weighted-average period of 0.5 years. The Company did not grant any stock option awards during the six months ended October 31, 2017. The fair value of stock options granted during the six months ended October 31, 2016 was estimated using the Black-Scholes option-pricing model with the following assumptions: October 31, 2016 Volatility 41.10 % Expected life (years) Risk-free interest rate 1.53 % Dividend yield — % The weighted average grant date fair value of options granted during the six months ended October 31, 2016 was $9.56 per share. The expected volatility was based on the average volatility of peer public entities that are similar in size and industry since 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. The expected life of stock options was based on previous history of exercises. The risk‑free rate was 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 was 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.

Stock Appreciation Rights, Defe

Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests	6 Months Ended
	Oct. 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, the Company accounts for these arrangements as liability awards and measures at fair value. Total expense related to these instruments was $2.3 million during the six months ended October 31, 2017 and was included in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations and Comprehensive Income. 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. As of October 31, 2017, all stock appreciation rights were vested. Current liabilities related to these plans of $0.5 million and $0.9 million were included in accrued compensation and employee benefits as of October 31, 2017 and April 30, 2017, respectively. Long‑term liabilities related to these plans of $20.9 million and $19.8 million were included in other liabilities as of October 31, 2017 and April 30, 2017, respectively. Below is a summary of changes to the liability (in thousands): Stock appreciation rights as of May 1, 2017 $ 20,662 Amounts redeemed (501) Change in fair value 1,232 Stock appreciation rights as of October 31, 2017 $ 21,393 Deferred Compensation Certain shareholders of the Company’s subsidiaries have entered into 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. These instruments are redeemed in cash or installment notes, generally paid in annual installments generally over the five years following termination of employment. Current liabilities related to these plans of $0.3 million were included in accrued compensation and employee benefits as of April 30, 2017. There were no current liabilities related to these plans as of October 31, 2017. Long-term liabilities related to these plans of $2.1 million and $3.5 million were included in other liabilities as of October 31, 2017 and April 30, 2017, respectively. Below is a summary of changes to the liability (in thousands): Deferred compensation as of May 1, 2017 $ 3,750 Amounts redeemed (1,733) Change in fair value 132 Deferred compensation as of October 31, 2017 $ 2,149 Redeemable Noncontrolling Interests 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. Current liabilities related to these instruments of $1.7 million were included in accrued compensation and employee benefits as of April 30, 2017. There were no current liabilities related to these instruments as of October 31, 2017. Long-term liabilities related to these instruments of $15.5 million and $22.6 million were included in liabilities to noncontrolling interest holders, less current portion as of October 31, 2017 and April 30, 2017, respectively. Below is a summary of changes to the liability (in thousands): Non-controlling interests as of May 1, 2017 $ 24,309 Amounts redeemed (9,664) Change in fair value 898 Non-controlling interests as of October 31, 2017 $ 15,543 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	6 Months Ended
	Oct. 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. As of October 31, 2017, these leases had expiration dates through fiscal 2025. Rent expense related to these leases was $0.2 million and $0.4 million for both the three and six months ended October 31, 2017 and 2016, respectively. Rent expense related to these leases is included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income. 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 $3.7 million and $7.2 million during the three and six months ended October 31, 2017, respectively. The Company purchased inventory from SWP for distribution in the amount of $3.3 million and $6.5 million during the three and six months ended October 31, 2016, respectively. Amounts due to SWP for purchases of inventory for distribution were $1.3 million and $1.1 million , respectively, as of October 31, 2017 and April 30, 2017 and are included in accounts payable in the Condensed Consolidated Balance Sheets. In connection with the IPO, the Company terminated its management agreement with AEA. The agreement required the Company to pay AEA an annual management fee of $2.3 million per year following the Acquisition for advisory and consulting services. The Company paid the final payment of $0.2 million during the six months ended October 31, 2016, which is included in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations and Comprehensive Income.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Oct. 31, 2017
Commitments and Contingencies
Commitments and Contingencies	9. Commitments and Contingencies 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	6 Months Ended
	Oct. 31, 2017
Segments
Segments	10. Segments General The Company has six operating segments based on geographic operations that it aggregates into one reportable segment. The Company defines operating segments as components of the organization for which discrete financial information is available and operating results are evaluated on a regular basis by the Chief Operating Decision Maker (“CODM”) in order to assess performance and allocate resources . The Company’s CODM is its Chief Executive Officer. The Company determined 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 operating segment, which resulted in a reduction (from seven to six) in the number of operating segments. The Company aggregates its operating segments into a single reportable segment based on similarities between the operating segments’ economic characteristics, nature of products sold, production process, type of customer and methods of distribution. The accounting policies of the operating segments are the same as those described in the summary of significant policies. In addition to the Company’s reportable segment, the Company’s consolidated results include both corporate activities and certain other activities. Corporate includes the Company’s corporate office building and support services provided to its subsidiaries. Other includes Tool Source Warehouse, Inc., which functions primarily as an internal distributor of tools. The Company does not earn revenues or have long‑lived assets located in foreign countries. Segment Results The CODM assesses the Company’s performance based on the periodic review of net sales, Adjusted EBITDA and certain other measures for each of the operating segments. Adjusted EBITDA is not a recognized financial measure under GAAP. However, 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. The following tables present segment results for the three and six months ended October 31, 2017 and 2016: Three Months Ended October 31, 2017 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 641,918 $ 210,034 $ 16,466 $ 53,651 Other 6,086 2,226 60 594 Corporate — — 187 — $ 648,004 $ 212,260 $ 16,713 $ 54,245 Three Months Ended October 31, 2016 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 586,628 $ 191,445 $ 17,072 $ 49,188 Other 5,218 1,779 79 331 Corporate — — 217 — $ 591,846 $ 193,224 $ 17,368 $ 49,519 Six Months Ended October 31, 2017 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 1,278,285 $ 413,059 $ 32,492 $ 105,877 Other 11,876 4,305 124 1,117 Corporate — — 442 — $ 1,290,161 $ 417,364 $ 33,058 $ 106,994 Six Months Ended October 31, 2016 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 1,131,633 $ 368,285 $ 32,579 $ 94,796 Other 10,013 3,524 159 664 Corporate — — 425 — $ 1,141,646 $ 371,809 $ 33,163 $ 95,460 The following table presents a reconciliation of Adjusted EBITDA to net income for the three and six months ended October 31, 2017 and 2016: Three Months Ended Six Months Ended October 31, October 31, 2017 2016 2017 2016 (in thousands) Adjusted EBITDA $ 54,245 $ 49,519 $ 106,994 $ 95,460 Interest expense (7,917) (7,154) (15,417) (14,731) Write-off of debt discount and deferred financing fees — (1,466) (74) (6,892) Interest income 26 35 49 78 Income tax expense (9,983) (710) (20,043) (6,869) Depreciation expense (6,023) (6,548) (12,013) (12,930) Amortization expense (10,690) (10,820) (21,045) (20,233) Stock appreciation (expense) or income(a) (642) 144 (1,232) 236 Redeemable noncontrolling interests(b) (164) (2,531) (1,030) (2,823) Equity-based compensation(c) (375) (686) (847) (1,359) Severance and other permitted costs(d) (113) (118) (317) (258) Transaction costs (acquisitions and other)(e) (88) (1,827) (246) (2,481) Gain (loss) on sale of assets 207 (68) 597 130 Management fee to related party(f) — — — (188) Effects of fair value adjustments to inventory(g) (187) (457) (187) (621) Interest rate cap mark-to-market(h) (238) (89) (434) (132) Secondary public offering costs(i) — — (631) — Debt transaction costs(j) (35) — (758) — Net income $ 18,023 $ 17,224 $ 33,366 $ 26,387 (a) Represents non‑cash income or expenses related to stock appreciation rights agreements. (b) Represents non‑cash compensation expense related to changes in the redemption values of noncontrolling interests. (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. Revenues by Product The following table presents Company’s net sales to external customers by main product lines for the three and six months ended October 31, 2017 and 2016: Three Months Ended Six Months Ended October 31, October 31, 2017 2016 2017 2016 (in thousands) Wallboard $ 288,498 $ 269,975 $ 573,155 $ 521,271 Ceilings 101,646 85,400 201,356 171,749 Steel framing 103,203 96,075 207,854 180,417 Other products 154,657 140,396 307,796 268,209 Total net sales $ 648,004 $ 591,846 $ 1,290,161 $ 1,141,646

Earnings Per Common Share

Earnings Per Common Share	6 Months Ended
	Oct. 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 and six months ended October 31, 2017 and 2016: Three Months Ended Six Months Ended October 31, October 31, 2017 2016 2017 2016 (in thousands, except per share data) Net income $ 18,023 $ 17,224 $ 33,366 $ 26,387 Basic earnings per common share: Basic weighted average common shares outstanding 41,006 40,943 40,988 39,579 Basic earnings per common share $ 0.44 $ 0.42 $ 0.81 $ 0.67 Diluted earnings per common share: Basic weighted average common shares outstanding 41,006 40,943 40,988 39,579 Add: Shares of common stock assumed issued upon exercise of stock options 1,140 377 1,149 377 Diluted weighted average common shares outstanding 42,146 41,320 42,137 39,956 Diluted earnings per common share $ 0.43 $ 0.42 $ 0.79 $ 0.66

Subsequent Events

Subsequent Events	6 Months Ended
	Oct. 31, 2017
Subsequent Events
Subsequent Events	12. Subsequent Events On December 1, 2017, the Company granted 63,750 stock options and 21,766 restricted stock units to employees pursuant to its Equity Incentive Plan. The stock options vest ratably over a three-year period, have a 10‑year term and have a fair value of $12.81. The restricted stock units vest ratably over three years and have a fair value of $37.49. The fair value of the stock options was estimated using the Black-Scholes valuation model, and the fair value of restricted stock units was determined based on the closing price of GMS’s common stock on the date of grant. Total unrecognized compensation cost related to this grant is $1.6 million, which will be recognized over three years. On December 4, 2017, the Company acquired Southwest Building Materials, Ltd. (“SWBM”). SWBM distributes wallboard, Armstrong ceiling products and other interior building products from a single location in Amarillo, Texas.

Business, Basis of Presentati18

Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Oct. 31, 2017
Business, Basis of Presentation 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 Securities and Exchange Commission that permit reduced disclosure for interim periods. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary for a fair presentation of the results of operations, financial position and cash flows. All adjustments are of a normal recurring nature unless otherwise disclosed. The results of operations for interim periods are not necessarily indicative of results for the entire year . As a result, the unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2017.
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 550.0 million shares of stock, including 500.0 million shares of common stock and 50.0 million 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 (“IPO”), of 8.1 million shares of common stock at a price of $21.00 per share, including 1.1 million 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 $156.9 million. We used these proceeds together with cash on hand to repay the $160.0 million principal amount of our term loan debt outstanding under our senior secured second lien term loan facility (“the Second Lien Facility”), which was a payment in full of the entire loan balance due under the Second Lien Facility. On February 22, 2017, certain of our stockholders completed a secondary public offering of 8.0 million shares of the Company’s common stock at a price to the public of $29.25 per share, including 1.0 million 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 5.8 million shares of the Company’s common stock at a price to the public of $33.00 per share, including 0.8 million 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 Investors LP (“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). The Company 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 Quarterly Report on Form 10-Q. The effect of this revision on the line items within the Company’s Condensed Consolidated Statement of Cash Flows for the six months ended October 31, 2016 was as follows: Six Months Ended October 31, 2016 As Previously Reported Adjustment As Revised (in thousands) Cash flows from investing activities: Acquisition of business, net of cash acquired $ (135,613) $ (4,326) $ (139,939) Cash used in investing activities $ (139,318) $ (4,326) $ (143,644) Cash flows from financing activities: Cash paid for contingent consideration $ (4,326) $ 4,326 $ — Cash provided by financing activities $ 135,942 $ 4,326 $ 140,268
Principles of Consolidation	Six Months Ended October 31, 2016 As Previously Reported Adjustment As Revised (in thousands) Cash flows from investing activities: Acquisition of business, net of cash acquired $ (135,613) $ (4,326) $ (139,939) Cash used in investing activities $ (139,318) $ (4,326) $ (143,644) Cash flows from financing activities: Cash paid for contingent consideration $ (4,326) $ 4,326 $ — Cash provided by financing activities $ 135,942 $ 4,326 $ 140,268 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 Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of 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 $0.25 million, $0.5 million and $1.0 million 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 $0.5 million to $2.0 million and the excess layer covers claims from $2.0 million to $100.0 million. 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. As of October 31, 2017 and April 30, 2017, the aggregate liabilities for medical self‑insurance were $3.8 million and $3.4 million, respectively, and are included in other accrued expenses and current liabilities in the Condensed Consolidated Balance Sheets. As of October 31, 2017 and April 30, 2017, reserves for general liability, automobile and workers’ compensation totaled approximately $13.7 million and $15.9 million, respectively, and are included in other accrued expenses and current liabilities and other liabilities in the Condensed Consolidated Balance Sheets. As of October 31, 2017 and April 30, 2017, amounts recoverable for medical self-insurance, general liability, automobile and workers’ compensation totaled approximately $5.9 million and $6.7 million, respectively, and are included 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 Company’s 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, 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.
Earnings Per Share	Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of outstanding shares of common stock for the period. Diluted earnings 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 per share is computed by increasing the weighted‑average number of outstanding shares of common stock computed in basic earnings 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 loss per share is the same as basic net loss per share.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Revenue recognition — In May 2014, the Financial Accounting Standards Board (the "FASB") issued authoritative guidance on revenue from contracts with customers. The new guidance supersedes most existing revenue recognition guidance and outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers . In August 2015, the FASB issued guidance that deferred the effective date by one year. The standard is now required to be adopted by public business entities in annual periods beginning on or after December 15, 2017, and interim periods within those annual periods, and may be applied on a full retrospective or modified retrospective approach. Early adoption at the original effective date is permitted. The Company intends to adopt the standard in the first quarter of its fiscal year ending April 30, 2019. The Company is in the process of determining the method of adoption and assessing the impact the new standard will have on its consolidated financial statements. Based upon current interpretations, we do not anticipate the adoption of this standard to have a material impact on our financial statements; aside from adding expanded disclosures, which are currently under consideration, as are further considerations of potential additional or expanded internal controls over financial reporting. Leases —In February 2016, the FASB issued authoritative guidance on accounting for leases. 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 (the first day of fiscal 2020), 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 financial statements, the Company expects that upon adoption it will recognize ROU assets and liabilities that could be material. Stock Compensation —In March 2016, the FASB issued authoritative guidance that simplifies 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. The Company adopted this guidance on May 1, 2017 (the first day of fiscal 2018) on a prospective basis. Effective May 1, 2017, the Company now records all excess tax benefits or tax deficiencies as a component of its provision for income taxes in the statement of operations. The Company recorded excess tax benefits of $1.1 million during the six months ended October 31, 2017. Additionally, the Company now presents excess tax benefits or deficiencies as operating cash flows versus reclassifying the amount out of operating cash flows and presenting it in financing activities in the statement 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 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 authoritative guidance on accounting for inventory. The new guidance requires that inventory be measured at the lower of cost and net realizable value. The new 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. The new standard 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

Business, Basis of Presentati19

Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Oct. 31, 2017
Business, Basis of Presentation 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 six months ended October 31, 2016 was as follows: Six Months Ended October 31, 2016 As Previously Reported Adjustment As Revised (in thousands) Cash flows from investing activities: Acquisition of business, net of cash acquired $ (135,613) $ (4,326) $ (139,939) Cash used in investing activities $ (139,318) $ (4,326) $ (143,644) Cash flows from financing activities: Cash paid for contingent consideration $ (4,326) $ 4,326 $ — Cash provided by financing activities $ 135,942 $ 4,326 $ 140,268

Business Acquisitions (Tables)

Business Acquisitions (Tables)	6 Months Ended
	Oct. 31, 2017
2018 Acquisitions
Business Acquisitions
Schedule of acquisitions completed	Company Name Form of Acquisition Date of Acquisition ASI Building Products, LLC Purchase of net assets August 1, 2017 Washington Builders Supply, Inc. Purchase of net assets October 2, 2017
Schedule of allocation of consideration for acquisitions	Preliminary Purchase Price Allocation October 31, 2017 (in thousands) Trade accounts and notes receivable $ 4,250 Inventories 2,814 Property and equipment 794 Tradenames 1,000 Vendor agreement 1,000 Below market leases 350 Non-compete agreements 270 Customer relationships 5,800 Goodwill 2,529 Liabilities assumed (1,485) Purchase price $ 17,322
2017 Acquisitions
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 October 31, 2017 (in thousands) Cash and cash equivalents $ 1,558 $ — $ 1,558 Trade accounts and notes receivable 37,691 238 37,929 Inventories 16,504 — 16,504 Other current assets 657 14 671 Property and equipment 8,357 — 8,357 Tradenames 9,490 — 9,490 Customer relationships 64,660 — 64,660 Goodwill 37,728 115 37,843 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)	6 Months Ended
	Oct. 31, 2017
Goodwill and Intangible Assets
Schedule of goodwill activity	Carrying Amount (in thousands) Balance as of May 1, 2017 $ 423,644 Goodwill acquired 2,529 Purchase price adjustments 115 Balance as of October 31, 2017 $ 426,288
Schedule of components of definite lived intangible assets	Estimated Weighted October 31, 2017 Useful Average Gross Net Lives Amortization Carrying Accumulated Carrying (years) Period Amount Amortization Value (dollars in thousands) Customer relationships 5 - 13 10.9 $ 279,000 $ 131,012 $ 147,988 Definite-lived tradenames 5 - 20 18.0 26,250 2,501 23,749 Vendor agreements 8 - 10 8.3 6,644 2,553 4,091 Leasehold interests 7 - 15 9.0 2,866 661 2,205 Non-compete agreements 5 5.0 270 13 257 Totals $ 315,030 $ 136,740 $ 178,290 Estimated Weighted April 30, 2017 Useful Average Gross Net Lives Amortization Carrying Accumulated Carrying (years) Period Amount Amortization Value (dollars in thousands) 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 8.0 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)	6 Months Ended
	Oct. 31, 2017
Long-Term Debt
Schedule of long-term debt	October 31, April 30, 2017 2017 (in thousands) First Lien Term Loan due 2023 (1) (2) $ 565,089 $ 470,245 ABL Facility 12,000 103,353 Capital lease obligations, at an annual rate of 5.50%, due in monthly installments through 2023 19,043 15,611 Installment notes at fixed rates up to 5.0%, due in monthly and annual installments through 2023 (3) 14,409 5,711 Carrying value of debt 610,541 594,920 Less current portion 27,786 11,530 Long-term debt $ 582,755 $ 583,390 (1) Net of unamortized discount of $2,864 and $1,658 as of October 31, 2017 and April 30, 2017, respectively. (2) Net of deferred financing costs of $6,774 and $5,712 as of October 31, 2017 and April 30, 2017, respectively. (3) Net of unamortized discount of $1,664 and $751 as of October 31, 2017 and April 30, 2017, respectively.

Equity-Based Compensation - (Ta

Equity-Based Compensation - (Tables)	6 Months Ended
	Oct. 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 (shares and dollars in thousands) Outstanding as of May 1, 2017 2,088 $ 13.49 7.23 $ 47,336 Options granted — — Options exercised 161 12.53 Options forfeited — — Options expired — — Outstanding as of October 31, 2017 1,927 $ 13.57 6.73 $ 39,467 Exercisable as of October 31, 2017 1,501 $ 12.83 6.56 $ 31,854 Expected to vest after October 31, 2017 426 $ 16.17 7.31 $ 7,614
Schedule of weighted average assumptions used in Black-Scholes option-pricing model	October 31, 2016 Volatility 41.10 % Expected life (years) Risk-free interest rate 1.53 % Dividend yield — %

Stock Appreciation Rights, De24

Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests (Tables)	6 Months Ended
	Oct. 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 $ 20,662 Amounts redeemed (501) Change in fair value 1,232 Stock appreciation rights as of October 31, 2017 $ 21,393
Deferred compensation
Equity based compensation arrangements
Summary of changes to liability for equity based compensation arrangements	Deferred compensation as of May 1, 2017 $ 3,750 Amounts redeemed (1,733) Change in fair value 132 Deferred compensation as of October 31, 2017 $ 2,149
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 $ 24,309 Amounts redeemed (9,664) Change in fair value 898 Non-controlling interests as of October 31, 2017 $ 15,543

Segments (Tables)

Segments (Tables)	6 Months Ended
	Oct. 31, 2017
Segments
Schedule of net sales, Adjusted EBITDA and certain other measures	Three Months Ended October 31, 2017 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 641,918 $ 210,034 $ 16,466 $ 53,651 Other 6,086 2,226 60 594 Corporate — — 187 — $ 648,004 $ 212,260 $ 16,713 $ 54,245 Three Months Ended October 31, 2016 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 586,628 $ 191,445 $ 17,072 $ 49,188 Other 5,218 1,779 79 331 Corporate — — 217 — $ 591,846 $ 193,224 $ 17,368 $ 49,519 Six Months Ended October 31, 2017 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 1,278,285 $ 413,059 $ 32,492 $ 105,877 Other 11,876 4,305 124 1,117 Corporate — — 442 — $ 1,290,161 $ 417,364 $ 33,058 $ 106,994 Six Months Ended October 31, 2016 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 1,131,633 $ 368,285 $ 32,579 $ 94,796 Other 10,013 3,524 159 664 Corporate — — 425 — $ 1,141,646 $ 371,809 $ 33,163 $ 95,460
Reconciliation of Adjusted EBITDA to Net income	Three Months Ended Six Months Ended October 31, October 31, 2017 2016 2017 2016 (in thousands) Adjusted EBITDA $ 54,245 $ 49,519 $ 106,994 $ 95,460 Interest expense (7,917) (7,154) (15,417) (14,731) Write-off of debt discount and deferred financing fees — (1,466) (74) (6,892) Interest income 26 35 49 78 Income tax expense (9,983) (710) (20,043) (6,869) Depreciation expense (6,023) (6,548) (12,013) (12,930) Amortization expense (10,690) (10,820) (21,045) (20,233) Stock appreciation (expense) or income(a) (642) 144 (1,232) 236 Redeemable noncontrolling interests(b) (164) (2,531) (1,030) (2,823) Equity-based compensation(c) (375) (686) (847) (1,359) Severance and other permitted costs(d) (113) (118) (317) (258) Transaction costs (acquisitions and other)(e) (88) (1,827) (246) (2,481) Gain (loss) on sale of assets 207 (68) 597 130 Management fee to related party(f) — — — (188) Effects of fair value adjustments to inventory(g) (187) (457) (187) (621) Interest rate cap mark-to-market(h) (238) (89) (434) (132) Secondary public offering costs(i) — — (631) — Debt transaction costs(j) (35) — (758) — Net income $ 18,023 $ 17,224 $ 33,366 $ 26,387 (a) Represents non‑cash income or expenses related to stock appreciation rights agreements. (b) Represents non‑cash compensation expense related to changes in the redemption values of noncontrolling interests. (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.
Schedule of net sales to external customers by main product lines	Three Months Ended Six Months Ended October 31, October 31, 2017 2016 2017 2016 (in thousands) Wallboard $ 288,498 $ 269,975 $ 573,155 $ 521,271 Ceilings 101,646 85,400 201,356 171,749 Steel framing 103,203 96,075 207,854 180,417 Other products 154,657 140,396 307,796 268,209 Total net sales $ 648,004 $ 591,846 $ 1,290,161 $ 1,141,646

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	6 Months Ended
	Oct. 31, 2017
Earnings Per Common Share
Schedule of computation of basic and diluted earnings per share of common stock	Three Months Ended Six Months Ended October 31, October 31, 2017 2016 2017 2016 (in thousands, except per share data) Net income $ 18,023 $ 17,224 $ 33,366 $ 26,387 Basic earnings per common share: Basic weighted average common shares outstanding 41,006 40,943 40,988 39,579 Basic earnings per common share $ 0.44 $ 0.42 $ 0.81 $ 0.67 Diluted earnings per common share: Basic weighted average common shares outstanding 41,006 40,943 40,988 39,579 Add: Shares of common stock assumed issued upon exercise of stock options 1,140 377 1,149 377 Diluted weighted average common shares outstanding 42,146 41,320 42,137 39,956 Diluted earnings per common share $ 0.43 $ 0.42 $ 0.79 $ 0.66

Business, Basis of Presentati27

Business, Basis of Presentation and Summary of Significant Accounting Policies - Business (Details)	6 Months Ended
	Oct. 31, 2017locationstateitem
Business
Number of independent operations | item	0
Number of branches through which products are distributed | location	210
Number of states in which products are distributed | state	42

Business, Basis of Presentati28

Business, Basis of Presentation and Summary of Significant Accounting Policies - Authorized Shares of Stock and Stock Split (Details) shares in Thousands	May 13, 2016$ / sharesshares	Oct. 31, 2017$ / sharesshares	Apr. 30, 2017$ / sharesshares
Stock
Stock authorized (in shares)	550,000
Common stock authorized (in shares)		500,000	500,000
Preferred stock authorized (in shares)	50,000	50,000	50,000
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

Business, Basis of Presentati29

Business, Basis of Presentation and Summary of Significant Accounting Policies - Initial and Secondary Public Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	Jun. 07, 2017	Feb. 22, 2017	Jun. 01, 2016	Oct. 31, 2016
Initial and Secondary Public Offerings
Net proceeds from initial public offering			$ 156,900	$ 156,941
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			8.1
Offering price (in dollars per share)			$ 21
Underwriters over-allotment option | Common Stock
Initial and Secondary Public Offerings
Number of shares issued			1.1
Selling stockholders | Secondary offering
Initial and Secondary Public Offerings
Shares sold	5.8	8
Price to the public (in dollars per share)	$ 33	$ 29.25
Selling stockholders | Underwriters over-allotment option
Initial and Secondary Public Offerings
Shares sold	0.8	1

Business, Basis of Presentati30

Business, Basis of Presentation and Summary of Significant Accounting Policies - Revision of Previously Issued Statements of Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Cash flows from investing activities:
Acquisition of business, net of cash acquired	$ (18,375)	$ (139,939)
Cash used in investing activities	(24,889)	(143,644)
Cash flows from financing activities:
Cash provided by financing activities	$ 746	140,268
As previously reported
Cash flows from investing activities:
Acquisition of business, net of cash acquired		(135,613)
Cash used in investing activities		(139,318)
Cash flows from financing activities:
Cash paid for contingent consideration		(4,326)
Cash provided by financing activities		135,942
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		(4,326)
Cash used in investing activities		(4,326)
Cash flows from financing activities:
Cash paid for contingent consideration		4,326
Cash provided by financing activities		$ 4,326

Business, Basis of Presentati31

Business, Basis of Presentation and Summary of Significant Accounting Policies - Insurance Liabilities (Details) - USD ($) $ in Thousands	Oct. 31, 2017	Apr. 30, 2017
Other accrued expenses and current liabilities
Insurance Liabilities
Medical self-insurance	$ 3,800	$ 3,400
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	13,700	15,900
Insurance recovery receivable	5,900	$ 6,700
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, Basis of Presentati32

Business, Basis of Presentation and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) $ in Millions	6 Months Ended
	Oct. 31, 2017USD ($)
ASU 2016 09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Excess tax benefits	$ 1.1

Business Acquisitions (Details)

Business Acquisitions (Details) $ in Thousands	6 Months Ended
	Oct. 31, 2017USD ($)segment	Oct. 31, 2016USD ($)	Apr. 30, 2017USD ($)	Sep. 01, 2016
Purchase price
Number of reportable segments | segment	1
Allocation of consideration for acquisitions
Goodwill	$ 426,288		$ 423,644
Adjustments/Reclassifications
Goodwill	115
As previously reported
Adjustments/Reclassifications
Contingent consideration paid out		$ 4,326
2018 Acquisitions
Purchase price
Aggregate purchase price	17,300
Allocation of consideration for acquisitions
Trade accounts and notes receivable	4,250
Inventories	2,814
Property and equipment	794
Goodwill	2,529
Liabilities assumed	(1,485)
Purchase price	17,322
2018 Acquisitions | Tradenames
Allocation of consideration for acquisitions
Definite lived intangible assets	1,000
2018 Acquisitions | Vendor Agreement
Allocation of consideration for acquisitions
Definite lived intangible assets	1,000
2018 Acquisitions | Below market leases
Allocation of consideration for acquisitions
Definite lived intangible assets	350
2018 Acquisitions | Non-compete agreements
Allocation of consideration for acquisitions
Definite lived intangible assets	270
2018 Acquisitions | Customer relationships
Allocation of consideration for acquisitions
Definite lived intangible assets	5,800
2017 Acquisitions
Purchase price
Aggregate purchase price	154,000
Contingent consideration	5,300
Cash consideration	148,700
Allocation of consideration for acquisitions
Cash and cash equivalents	1,558
Trade accounts and notes receivable	37,929
Inventories	16,504
Other current assets	671
Property and equipment	8,357
Goodwill	37,843
Deferred tax liability	(6,011)
Liabilities assumed	(16,958)
Purchase price	154,043
Adjustments/Reclassifications
Trade accounts and notes receivable	238
Other current assets	14
Goodwill	115
Purchase price	367
Increase in total consideration paid	400
Goodwill and intangible assets
Goodwill expected to be deductible for U.S. federal income tax purposes	25,600
Other intangible assets expected to be deductible for U.S. federal income tax purposes	53,600
Goodwill nondeductible for U.S. federal income tax purposes	12,200
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
Other current assets			657
Property and equipment			8,357
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 Asset34

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	6 Months Ended
	Oct. 31, 2017USD ($)
Goodwill
Balance	$ 423,644
Goodwill acquired	2,529
Purchase price adjustments	115
Balance	$ 426,288

Goodwill and Intangible Asset35

Goodwill and Intangible Assets - Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Oct. 31, 2017	Apr. 30, 2017
Definite lived intangible assets
Gross carrying amount	$ 315,030	$ 306,606
Accumulated amortization	136,740	115,681
Net carrying value	$ 178,290	$ 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	$ 279,000	$ 273,196
Accumulated amortization	131,012	111,291
Net carrying value	$ 147,988	$ 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	18 years 3 months 18 days
Gross carrying amount	$ 26,250	$ 25,250
Accumulated amortization	2,501	1,718
Net carrying value	$ 23,749	$ 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
Weighted average amortization period	8 years 3 months 18 days	8 years
Gross carrying amount	$ 6,644	$ 5,644
Accumulated amortization	2,553	2,176
Net carrying value	$ 4,091	$ 3,468
Vendor agreement | Minimum
Definite lived intangible assets
Estimated useful lives	8 years
Vendor agreement | Maximum
Definite lived intangible assets
Estimated useful lives	10 years
Leasehold interests
Definite lived intangible assets
Weighted average amortization period	9 years	8 years 2 months 12 days
Gross carrying amount	$ 2,866	$ 2,516
Accumulated amortization	661	496
Net carrying value	$ 2,205	$ 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	15 years	13 years
Non-compete agreements
Definite lived intangible assets
Estimated useful lives	5 years
Weighted average amortization period	5 years
Gross carrying amount	$ 270
Accumulated amortization	13
Net carrying value	$ 257

Goodwill and Intangible Asset36

Goodwill and Intangible Assets - Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Intangible assets
Amortization expense	$ 10,690	$ 10,820	$ 21,045	$ 20,233
Depreciation and amortization expense
Intangible assets
Amortization expense	$ 10,700	$ 10,800	$ 21,000	$ 20,200

Goodwill and Intangible Asset37

Goodwill and Intangible Assets - Estimated Aggregate Amortization Expense (Details) $ in Millions	Oct. 31, 2017USD ($)
Estimated aggregate future amortization expense
Expense remainder of fiscal year	$ 20.2
2,019	34.2
2,020	27.5
2,021	22.2
2,022	18
Thereafter	$ 56.2

Goodwill and Intangible Asset38

Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Millions	Oct. 31, 2017	Apr. 30, 2017
Goodwill and Intangible Assets
Tradenames	$ 61.4	$ 61.4

Long-Term Debt - Components (De

Long-Term Debt - Components (Details) - USD ($) $ in Thousands	Oct. 31, 2017	Apr. 30, 2017
Long-term debt
Total long-term debt	$ 610,541	$ 594,920
Less: Current portion	27,786	11,530
Long-term debt, less current portion	582,755	583,390
First Lien Term Loan due 2023
Long-term debt
Total long-term debt	565,089	470,245
Unamortized discount	2,864	1,658
Deferred financing costs	6,774	5,712
ABL Facility
Long-term debt
Total long-term debt	12,000	103,353
Capital lease obligations
Long-term debt
Total long-term debt	$ 19,043	$ 15,611
Interest rate	5.50%	5.50%
Installment notes
Long-term debt
Total long-term debt	$ 14,409	$ 5,711
Unamortized discount	$ 1,664	$ 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	Sep. 27, 2016	Jun. 01, 2016	Apr. 01, 2014	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Long-term debt
Repayment of amounts outstanding under credit facility						$ 443,920	$ 635,732
Net amount of debt issued						577,616	481,225
Cash paid for interest						14,104	13,163
Write-off of debt discount and deferred financing fees					$ 1,466	$ 74	6,892
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				388,100
Original issue discount				2,000
Loan repayment	$ 477,600
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			$ 5,400
Incremental First Lien Term Commitments Amendment
Long-term debt
Face amount of debt		$ 481,200
Reduction to interest rate margin at each pricing level (as a percent)		(25.00%)
Loan repayment		$ 381,200
Write-off of debt discount and deferred financing fees							1,500
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	$ 577,600
Borrowing interest rate (as a percent)						4.38%
Reduction to interest rate margin at each pricing level (as a percent)	(50.00%)
Loan repayment						$ 477,616	$ 381,225
Write-off of debt discount and deferred financing fees						$ 100
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

Long-Term Debt - Asset-Based Le

Long-Term Debt - Asset-Based Lending Facility (Details) - ABL Facility $ in Millions	6 Months Ended
	Oct. 31, 2017USD ($)
Long-term debt
Maximum amount under the facility	$ 345
Available borrowings under the facility	$ 321.6
Applicable rate of interest during period (as a percent)	4.75%
Swing-line
Long-term debt
Maximum amount under the facility	$ 34.5

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016	Apr. 30, 2017
Income Taxes
Valuation allowance (in dollars)		$ 0.3		$ 0.3
Effective income tax rate (as a percent)		37.50%	20.70%
Decrease in deferred tax liabilities and tax expense	$ 7

Equity-Based Compensation - Gen

Equity-Based Compensation - General (Details) shares in Millions	6 Months Ended
	Oct. 31, 2017shares
Stock options
Stock options
Vesting period	4 years
Term	10 years
Plan
Stock options
Shares authorized	2.5
Number of shares available for grant	2.5

Equity-Based Compensation - Sto

Equity-Based Compensation - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended		12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Apr. 30, 2017
Stock option activity
Outstanding, beginning of the period (in shares)	2,088
Options exercised (in shares)	161	0
Outstanding, end of the period (in shares)	1,927		2,088
Exercisable at end of period (in shares)	1,501
Expected to vest after end of period (in shares)	426
Weighted average exercise price
Outstanding, beginning of period (in dollars per share)	$ 13.49
Options exercised (in dollars per share)	12.53
Outstanding, end of the period (in dollars per share)	13.57		$ 13.49
Exercisable at end of period (in dollars per share)	12.83
Expected to vest after end of period (in dollars per share)	$ 16.17
Other disclosures
Weighted average remaining contractual life, Outstanding	6 years 8 months 23 days		7 years 2 months 23 days
Weighted average remaining contractual life, Exercisable	6 years 6 months 22 days
Weighted average remaining contractual life, Expected to vest after end of period	7 years 3 months 22 days
Aggregate intrinsic value, options outstanding	$ 39,467		$ 47,336
Aggregate intrinsic value, options exercisable at end of period	31,854
Aggregate intrinsic value, options expected to vest after end of period	7,614
Intrinsic value of stock option awards exercised	3,500
Unrecognized compensation expense	$ 1,000
Weighted average period for recognition of unrecognized compensation expense	6 months

Equity-Based Compensation - Bla

Equity-Based Compensation - Black Scholes Options - Pricing Model (Details) - Stock options	6 Months Ended
	Oct. 31, 2016$ / shares
Fair Value Assumptions
Volatility	41.10%
Expected life (years)	6 years
Risk-free interest rate	1.53%
Weighted average grant date fair value (in dollars per share)	$ 9.56

Stock Appreciation Rights, De46

Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests (Details) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016	Apr. 30, 2017
Equity based compensation arrangements
Long-term liabilities related to plans	$ 15,543,000		$ 15,543,000		$ 22,576,000
Stock appreciation income or (expense)	642,000	$ (144,000)	1,232,000	$ (236,000)
Redeemable noncontrolling interests	164,000	$ 2,531,000	1,030,000	$ 2,823,000
Selling, general and administrative expenses
Equity based compensation arrangements
Gains related to equity based compensation arrangements			$ 2,300,000
Stock appreciation rights
Equity based compensation arrangements
Settlement period			4 years
Award liability as of beginning of year			$ 20,662,000
Amounts redeemed			(501,000)
Change in fair value			1,232,000
Award liability as of end of year	21,393,000		21,393,000
Stock appreciation rights | Accrued compensation and employee benefits
Equity based compensation arrangements
Current liabilities related to plans	500,000		500,000		900,000
Stock appreciation rights | Other liabilities
Equity based compensation arrangements
Long-term liabilities related to plans	20,900,000		$ 20,900,000		19,800,000
Deferred compensation
Equity based compensation arrangements
Settlement period			5 years
Award liability as of beginning of year			$ 3,750,000
Amounts redeemed			(1,733,000)
Change in fair value			132,000
Award liability as of end of year	2,149,000		2,149,000
Deferred compensation | Accrued compensation and employee benefits
Equity based compensation arrangements
Current liabilities related to plans	0		0		300,000
Deferred compensation | Other liabilities
Equity based compensation arrangements
Long-term liabilities related to plans	2,100,000		$ 2,100,000		3,500,000
Noncontrolling interest awards
Equity based compensation arrangements
Settlement period			5 years
Award liability as of beginning of year			$ 24,309,000
Amounts redeemed			(9,664,000)
Change in fair value			898,000
Award liability as of end of year	15,543,000		15,543,000
Noncontrolling interest awards | Accrued compensation and employee benefits
Equity based compensation arrangements
Current liabilities related to plans	0		0		1,700,000
Noncontrolling interest awards | Liabilities to noncontrolling interest holders, less current portion
Equity based compensation arrangements
Long-term liabilities related to plans	$ 15,500,000		$ 15,500,000		$ 22,600,000

Transactions With Related Par47

Transactions With Related Parties - Facilities Rental (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Affiliated partnerships or entities | Lease of office and warehouse facilities | Selling, general and administrative expenses
Transactions with related parties
Rent expense	$ 0.2	$ 0.4	$ 0.2	$ 0.4

Transactions With Related Par48

Transactions With Related Parties - Purchased Inventories (Details) - Southern Wall Products, Inc. - Inventory purchases - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016	Apr. 30, 2017
Transactions with related parties
Purchases from related party	$ 3.7	$ 3.3	$ 7.2	$ 6.5
Accounts payable
Transactions with related parties
Due to SWP	$ 1.3		$ 1.3		$ 1.1

Transactions With Related Par49

Transactions With Related Parties - Management Agreement (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	May 31, 2016	Oct. 31, 2016
Transactions with related parties
Management fee		$ 188
AEA Investors LP | Management agreement
Transactions with related parties
Annual fee	$ 2,300
AEA Investors LP | Management agreement | Selling, general and administrative expenses
Transactions with related parties
Management fee		$ 200

Segments - Number (Details)

Segments - Number (Details)	6 Months Ended	12 Months Ended
	Oct. 31, 2017segmentdivision	Apr. 30, 2017segment
Segment Reporting Information [Line Items]
Number of operating segments	6
Number of geographic divisions | division	6
Number of reportable segments	1
Reorganization of geographic regional reporting lines
Segment Reporting Information [Line Items]
Number of operating segments		7

Segments - Net Sales, Adjusted

Segments - Net Sales, Adjusted EBITDA and Certain Other Measures (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Segment information
Net sales	$ 648,004	$ 591,846	$ 1,290,161	$ 1,141,646
Gross profit	212,260	193,224	417,364	371,809
Depreciation and amortization	16,713	17,368	33,058	33,163
Adjusted EBITDA	54,245	49,519	106,994	95,460
Geographic divisions
Segment information
Net sales	641,918	586,628	1,278,285	1,131,633
Gross profit	210,034	191,445	413,059	368,285
Depreciation and amortization	16,466	17,072	32,492	32,579
Adjusted EBITDA	53,651	49,188	105,877	94,796
Other
Segment information
Net sales	6,086	5,218	11,876	10,013
Gross profit	2,226	1,779	4,305	3,524
Depreciation and amortization	60	79	124	159
Adjusted EBITDA	594	331	1,117	664
Corporate
Segment information
Depreciation and amortization	$ 187	$ 217	$ 442	$ 425

Segments - Reconciliation of Ne

Segments - Reconciliation of Net Income to Adjusted EBITDA (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Segments
Adjusted EBITDA	$ 54,245	$ 49,519	$ 106,994	$ 95,460
Interest expense	(7,917)	(7,154)	(15,417)	(14,731)
Write-off of debt discount and deferred financing fees		(1,466)	(74)	(6,892)
Interest income	26	35	49	78
Income tax expense	(9,983)	(710)	(20,043)	(6,869)
Depreciation expense	(6,023)	(6,548)	(12,013)	(12,930)
Amortization expense	(10,690)	(10,820)	(21,045)	(20,233)
Stock appreciation (expense) or income	(642)	144	(1,232)	236
Redeemable noncontrolling interests	(164)	(2,531)	(1,030)	(2,823)
Equity-based compensation	(375)	(686)	(847)	(1,359)
Severance and other permitted costs	(113)	(118)	(317)	(258)
Transaction costs (acquisitions and other)	(88)	(1,827)	(246)	(2,481)
Gain (loss) on sale of assets	207	(68)	597	130
Management fee to related party				(188)
Effects of fair value adjustments to inventory	(187)	(457)	(187)	(621)
Interest rate cap mark-to-market	(238)	(89)	(434)	(132)
Secondary public offering costs			(631)
Debt transaction costs	(35)		(758)
Net income	$ 18,023	$ 17,224	$ 33,366	$ 26,387

Segments - Net Sales by Main Pr

Segments - Net Sales by Main Product Lines (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Revenue from external customers
Total net sales	$ 648,004	$ 591,846	$ 1,290,161	$ 1,141,646
Wallboard
Revenue from external customers
Total net sales	288,498	269,975	573,155	521,271
Ceilings
Revenue from external customers
Total net sales	101,646	85,400	201,356	171,749
Steel framing
Revenue from external customers
Total net sales	103,203	96,075	207,854	180,417
Other products
Revenue from external customers
Total net sales	$ 154,657	$ 140,396	$ 307,796	$ 268,209

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Computation of basic and diluted earnings per share of common stock
Net income	$ 18,023	$ 17,224	$ 33,366	$ 26,387
Basic earnings per common share:
Basic weighted average common shares outstanding (in shares)	41,006	40,943	40,988	39,579
Basic earnings per common share (in dollars per share)	$ 0.44	$ 0.42	$ 0.81	$ 0.67
Diluted earnings per common share:
Basic weighted average common shares outstanding (in shares)	41,006	40,943	40,988	39,579
Add: Shares of common stock assumed issued upon exercise of stock options (in shares)	1,140	377	1,149	377
Diluted weighted average common shares outstanding (in shares)	42,146	41,320	42,137	39,956
Diluted earnings per common share (in dollars per share)	$ 0.43	$ 0.42	$ 0.79	$ 0.66

Subsequent Event (Details)

Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Millions	Dec. 01, 2017	Oct. 31, 2017	Oct. 31, 2016
Subsequent Event
Subsequent Events
Unrecognized compensation cost	$ 1.6
Weighted average period for recognition of unrecognized compensation expense	3 years
Stock options
Subsequent Events
Vesting period		4 years
Term		10 years
Weighted average grant date fair value (in dollars per share)			$ 9.56
Weighted average period for recognition of unrecognized compensation expense		6 months
Stock options | Subsequent Event
Subsequent Events
Options granted (in shares)	63,750
Vesting period	3 years
Term	10 years
Weighted average grant date fair value (in dollars per share)	$ 12.81
Restricted stock units | Subsequent Event
Subsequent Events
Restricted stock granted (in shares)	21,766
Vesting period	3 years
Weighted average grant date fair value (in dollars per share)	$ 37.49