GMS (GMS) 10-Q 6 Mar 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jan. 31, 2018	Mar. 06, 2018
Document and Entity Information
Entity Registrant Name	GMS Inc.
Entity Central Index Key	1,600,438
Document Type	10-Q
Document Period End Date	Jan. 31, 2018
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		41,040,800
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 31, 2018	Apr. 30, 2017
Current assets:
Cash and cash equivalents	$ 28,939	$ 14,561
Trade accounts and notes receivable, net of allowances of $10,665 and $9,851, respectively	319,025	328,988
Inventories, net	227,564	200,234
Prepaid expenses and other current assets	18,104	11,403
Total current assets	593,632	555,186
Property and equipment, net of accumulated depreciation of $81,648 and $71,409, respectively	158,013	154,465
Goodwill	426,810	423,644
Intangible assets, net	232,214	252,293
Other assets	7,682	7,677
Total assets	1,418,351	1,393,265
Current liabilities:
Accounts payable	98,924	102,688
Accrued compensation and employee benefits	49,043	58,393
Other accrued expenses and current liabilities	40,020	37,891
Current portion of long-term debt	15,949	11,530
Total current liabilities	203,936	210,502
Non-current liabilities:
Long-term debt, less current portion	581,535	583,390
Deferred income taxes, net	14,256	26,820
Other liabilities	34,958	35,371
Liabilities to noncontrolling interest holders, less current portion	15,381	22,576
Total liabilities	850,066	878,659
Commitments and contingencies
Stockholders’ equity:
Common stock, par value $0.01 per share, 500,000 shares authorized; 41,041 and 40,971 shares issued as of January 31, 2018 and April 30, 2017, respectively	410	410
Preferred stock, par value $0.01 per share, 50,000 shares authorized; 0 shares issued as of January 31, 2018 and April 30, 2017
Additional paid-in capital	488,289	488,459
Retained earnings	79,673	26,621
Accumulated other comprehensive loss	(87)	(884)
Total stockholders’ equity	568,285	514,606
Total liabilities and stockholders’ equity	$ 1,418,351	$ 1,393,265

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jan. 31, 2018	Apr. 30, 2017
Condensed Consolidated Balance Sheets
Trade accounts and notes receivable, allowances (in dollars)	$ 10,665	$ 9,851
Property and equipment, accumulated depreciation (in dollars)	$ 81,648	$ 71,409
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000	500,000
Common stock, shares issued	41,041	40,971
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000	50,000
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		9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
Condensed Consolidated Statements of Operations and Comprehensive Income
Net sales	$ 585,508	$ 562,523	$ 1,875,669	$ 1,704,169
Cost of sales (exclusive of depreciation and amortization shown separately below)	390,088	376,796	1,262,885	1,146,633
Gross profit	195,420	185,727	612,784	557,536
Operating expenses:
Selling, general and administrative	156,262	147,260	472,232	432,116
Depreciation and amortization	16,490	18,316	49,548	51,479
Total operating expenses	172,752	165,576	521,780	483,595
Operating income	22,668	20,151	91,004	73,941
Other (expense) income:
Interest expense	(7,871)	(7,431)	(23,288)	(22,162)
Write-off of debt discount and deferred financing fees		(211)	(74)	(7,103)
Other income, net	401	1,081	965	2,170
Total other (expense), net	(7,470)	(6,561)	(22,397)	(27,095)
Income before taxes	15,198	13,590	68,607	46,846
Provision (benefit) for income taxes	(4,488)	5,363	15,555	12,232
Net income	$ 19,686	$ 8,227	$ 53,052	$ 34,614
Weighted average common shares outstanding:
Basic (in shares)	41,036	40,943	41,004	40,035
Diluted (in shares)	42,228	41,578	42,167	40,670
Net income per share:
Basic (in dollars per share)	$ 0.48	$ 0.20	$ 1.29	$ 0.86
Diluted (in dollars per share)	$ 0.47	$ 0.20	$ 1.26	$ 0.85
Comprehensive income
Net income	$ 19,686	$ 8,227	$ 53,052	$ 34,614
Changes in other comprehensive income, net of tax	401	226	797	238
Comprehensive income	$ 20,087	$ 8,453	$ 53,849	$ 34,852

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Cash flows from operating activities:
Net income	$ 53,052	$ 34,614
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment	18,021	19,395
Write-off, accretion and amortization of debt discount and deferred financing fees	2,141	9,142
Amortization of intangible assets	31,527	32,084
Provision for losses on accounts and notes receivable	133	(434)
Provision for obsolescence of inventory	113	427
Increase (decrease) in fair value of contingent consideration	195	(388)
Equity-based compensation	1,473	1,669
(Gain) on sale of assets	(648)	(242)
Changes in assets and liabilities net of effects of acquisitions:
Trade accounts and notes receivable	14,545	(3,179)
Inventories	(23,617)	(25,708)
Accounts payable	(5,723)	318
Deferred income taxes	(12,860)	(14,773)
Prepaid expenses and other assets	(1,719)	(1,425)
Accrued compensation and employee benefits	(7,140)	(3,057)
Accrued expenses and liabilities	1,289	(321)
Liabilities to noncontrolling interest holders	(2,000)	908
Income tax receivable / payable	(5,049)	(12,690)
Cash provided by operating activities	63,733	36,340
Cash flows from investing activities:
Purchases of property and equipment	(13,408)	(6,900)
Proceeds from sale of assets	2,374	3,245
Acquisition of businesses, net of cash acquired	(23,568)	(145,976)
Cash used in investing activities	(34,602)	(149,631)
Cash flows from financing activities:
Repayments on the revolving credit facility	(597,092)	(817,598)
Borrowings from the revolving credit facility	493,739	836,507
Payments of principal on long-term debt	(4,332)	(3,381)
Principal repayments of capital lease obligations	(4,530)	(3,819)
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 on revolving credit facility amendment		(1,342)
Debt issuance costs	(636)	(2,487)
Payments for taxes related to net share settlement of equity awards	(1,441)
Proceeds from exercises of stock options	130
Other financing activities	(591)
Cash (used in) provided by financing activities	(14,753)	104,821
Increase (decrease) in cash and cash equivalents	14,378	(8,470)
Cash and cash equivalents, beginning of period	14,561	19,072
Cash and cash equivalents, end of period	28,939	10,602
Supplemental cash flow disclosures:
Cash paid for income taxes	35,005	39,831
Cash paid for interest	21,192	20,038
Supplemental schedule of noncash activities:
Assets acquired under capital lease	7,953	6,667
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	9 Months Ended
	Jan. 31, 2018
Business, Basis of Presentation and Summary of Significant Accounting Policies
Business, Basis of Presentation and Summary of Significant Accounting Policies	1 Business Founded in 1971, GMS Inc. (“we,” “our,” “us,” or the “Company”), through its wholly-owned operating subsidiaries, is 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. On December 14, 2017, certain of our stockholders completed an additional secondary public offering of 5.0 million shares of the Company’s common stock at a price to the public of $38.25 per share. 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 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 nine months ended January 31, 2017 was as follows: Nine Months Ended January 31, 2017 As Previously Reported Adjustment As Revised (in thousands) Cash flows from investing activities: Acquisition of business, net of cash acquired $ (141,650) $ (4,326) $ (145,976) Cash used in investing activities $ (145,305) $ (4,326) $ (149,631) Cash flows from financing activities: Cash paid for contingent consideration $ (4,326) $ 4,326 $ — Cash provided by financing activities $ 100,495 $ 4,326 $ 104,821 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 $0.3 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 layers cover 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 January 31, 2018 and April 30, 2017, the aggregate liabilities for medical self‑insurance were $4.3 million and $3.4 million, respectively, and are included in other accrued expenses and current liabilities in the Condensed Consolidated Balance Sheets. As of January 31, 2018 and April 30, 2017, reserves for general liability, automobile and workers’ compensation totaled approximately $15.8 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 January 31, 2018 and April 30, 2017, amounts recoverable for medical, general liability, automobile and workers’ compensation totaled approximately $6.2 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. 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 primarily related to depreciation and amortization that would occur within the same jurisdiction and during the carryforward period necessary to absorb 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. 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 their short‑term natures. 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. We also use Level 3 inputs to measure fair value on a non-recurring basis for acquisitions and impairment testing. 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 securities or other contracts to issue common stock, including stock options and restricted stock units (collectively "Common Stock Equivalents"), were exercised or converted into common stock . The dilutive effect of outstanding stock options and restricted stock units is reflected in diluted earnings per share by application of the treasury stock method. In applying the treasury stock method for stock-based compensation arrangements, the assumed proceeds are computed as the sum of the amount the employee must pay upon exercise, the amount of compensation cost attributed to future services and not yet recognized and the amount of excess tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of the awards. 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 Common Stock Equivalents for the 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 plans to adopt the standard in the first quarter of its fiscal year ending April 30, 2019 and expects to use the modified retrospective approach. The Company has substantially completed its assessment of the new revenue recognition guidance . 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 material ROU assets and liabilities. 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 $1.2 million during the nine months ended January 31, 2018. 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	9 Months Ended
	Jan. 31, 2018
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 based on valuation analyses. In valuing acquired assets and liabilities, fair value estimates used Level 3 inputs, including future expected cash flows and discount rates. 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 nine months ended January 31, 2018, the Company completed the following acquisitions, with an aggregate purchase price of $21.9 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 Southwest Building Materials, Ltd. Purchase of net assets December 4, 2017 The preliminary allocation of purchase consideration for these acquisitions is summarized as follows: Preliminary Purchase Price Allocation January 31, 2018 (in thousands) Trade accounts and notes receivable $ 4,525 Inventories 3,824 Property and equipment 909 Tradenames 1,000 Vendor agreement 1,000 Below market leases 350 Intangible assets 8,920 Goodwill 3,310 Liabilities assumed (1,945) Purchase price $ 21,893 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 January 31, 2018 (in thousands) Cash and cash equivalents $ 1,558 $ — $ 1,558 Trade accounts and notes receivable 37,691 (63) 37,628 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 (144) 37,584 Deferred tax liability (6,011) — (6,011) Liabilities assumed (16,958) 560 (16,398) Purchase price $ 153,676 $ 367 $ 154,043 During the nine months ended January 31, 2018, the Company recorded adjustments to working capital for fiscal 2017 acquisitions resulting in an increase in total consideration paid of $0.4 million. As of January 31, 2018, goodwill of $25.4 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 January 31, 2018, 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	9 Months Ended
	Jan. 31, 2018
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 nine months ended January 31, 2018: Carrying Amount (in thousands) Balance as of May 1, 2017 $ 423,644 Goodwill acquired 3,310 Purchase price adjustments (144) Balance as of January 31, 2018 $ 426,810 Intangible Assets The following table presents the components of the Company’s definite-lived intangible assets as of January 31, 2018 and April 30, 2017: Estimated Weighted January 31, 2018 Useful Average Gross Net Lives Amortization Carrying Accumulated Carrying (years) Period Amount Amortization Value (dollars in thousands) Customer relationships 5 - 13 10.9 $ 281,839 $ 140,825 $ 141,014 Definite-lived tradenames 5 - 20 18.0 26,250 2,901 23,349 Vendor agreements 8 - 10 8.3 6,644 2,754 3,890 Leasehold interests 7 - 15 9.0 2,866 746 2,120 Other 5 5.0 521 47 474 Totals $ 318,120 $ 147,273 $ 170,847 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 $10.5 million and $31.5 million for the three and nine months ended January 31, 2018, respectively, and $11.9 million and $32.1 million for the three and nine months ended January 31, 2017, 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 $10.0 million during the remaining three months in the year ending April 30, 2018 and $34.8 million, $27.9 million, $22.6 million, $18.3 million and $57.2 million during the years ending 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 that had a carrying amount of $61.4 million as of January 31, 2018 and April 30, 2017.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Jan. 31, 2018
Long-Term Debt
Long-Term Debt	4. Long-Term Debt The Company’s long‑term debt consisted of the following as of January 31, 2018 and April 30, 2017: January 31, April 30, 2018 2017 (in thousands) First Lien Term Loan due 2023 (1) (2) $ 564,141 $ 470,245 ABL Facility — 103,353 Capital lease obligations, at an annual rate of 5.50%, due in monthly installments through 2023 19,034 15,611 Installment notes at fixed rates up to 5.0%, due in monthly and annual installments through 2023 (3) 14,309 5,711 Carrying value of debt 597,484 594,920 Less current portion 15,949 11,530 Long-term debt $ 581,535 $ 583,390 (1) Net of unamortized discount of $2,677 and $1,658 as of January 31, 2018 and April 30, 2017, respectively. (2) Net of deferred financing costs of $6,466 and $5,712 as of January 31, 2018 and April 30, 2017, respectively. (3) Net of unamortized discount of $1,599 and $751 as of January 31, 2018 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 nine months ended January 31, 2017. 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 nine months ended January 31, 2017. 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 January 31, 2018, the applicable rate of interest was 4.77 %. 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 nine months ended January 31, 2018. 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 January 31, 2018, 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. 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 January 31, 2018. 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 January 31, 2018.

Income Taxes

Income Taxes	9 Months Ended
	Jan. 31, 2018
Income Taxes
Income Taxes	5. Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law. The Tax Act includes a number of provisions, including the lowering of the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. Because the Company’s fiscal 2018 ends April 30, 2018, the Company’s tax provision for the current fiscal year will utilize a blended statutory federal rate of 30.4%, calculated by applying a prorated percentage of the number of days prior to and subsequent to the January 1, 2018 effective date of the Tax Act. In future fiscal years, the Company expects its statutory federal rate to be 21%. During the three months ended January 31, 2018, the Company revised its estimated annual effective tax rate to reflect the change in the federal statutory rate. In connection with the Tax Act, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance to companies that have not completed their accounting for the income tax effects of the Tax Act. Under SAB 118, provisional amounts can be recorded to the extent a reasonable estimate can be made. Additional tax effects and adjustments to previously recorded provisional amounts can be recorded upon obtaining, preparing, or analyzing additional information (including computations) within one year from the enactment date of the Tax Act. As of January 31, 2018, the Company was still assessing the overall impact of the Tax Act on its financial statements and had not completed its accounting for the tax effects of the Tax Act. The Company has reported provisional amounts reflecting reasonable estimates for the re-measurement of net deferred tax liabilities as of January 31, 2018 due to the reduction in the corporate rate. The Company recorded a provisional income tax benefit of $7.8 million for this re-measurement, which is included in provision (benefit) for income taxes in the Condensed Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended January 31, 2018. The estimated impact of the Tax Act was based on a preliminary review of the new law and is subject to revision due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act or any updates or changes to estimates the Company has utilized to calculate the impacts . Among the factors that could affect the accuracy of our provisional amounts is uncertainty about the statutory tax rate applicable to our deferred income tax assets and liabilities, since the actual rate will be dependent on the timing of realization or settlement of such assets and liabilities. As of January 31, 2018, we estimated the dates when such realization or settlement would occur. The actual dates when such realization or settlement occurs may be significantly different from our estimates, which could result in the ultimate revaluation of our deferred income taxes to be different from our provisional amounts. Additionally, the Company continues to analyze additional information and guidance related to certain aspects of the Tax Act, such as limitations on the deductibility of executive compensation, conformity or changes by state taxing authorities in response to The Act, and the deductibility of other expenses impacted by the Tax Act. The Company will complete its accounting for the Tax Act once the Company has obtained, prepared and analyzed all information needed (including computations) for its analysis, but no later than one year from the enactment date of the Tax Act. The Company’s effective income tax rate on continuing operations for the nine months ended January 31, 2018 was 22.7% compared to an effective income tax rate of 26.1% for the nine months ended January 31, 2017. The decrease in the effective income tax rate was primarily due to income tax effects of the Tax Act as discussed above, offset by 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 nine months ended January 31, 2017 by $7.0 million. The Company had valuation allowances of $0.3 million against its deferred tax assets related to certain tax jurisdictions as of January 31, 2018 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 Company had no material uncertain tax positions as of January 31, 2018 and April 30, 2017.

Equity-Based Compensation

Equity-Based Compensation	9 Months Ended
	Jan. 31, 2018
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 2.4 million shares were still available for grant as of January 31, 2018 . 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) and recognizes compensation expense, net of estimated forfeitures, over the requisite service period for awards expected to vest. The Company estimates the fair value of stock options using the Black-Scholes valuation model, and determines the fair value of restricted stock units based on the quoted price of GMS’s common stock on the date of grant . The Company estimates forfeitures based on historical analysis of actual 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 nine months ended January 31, 2018: 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 63 37.49 Options exercised (171) 12.56 Options forfeited — — Options expired — — Outstanding as of January 31, 2018 1,980 $ 14.34 6.58 $ 39,493 Exercisable as of January 31, 2018 1,559 $ 12.89 6.33 $ 33,339 Vested and expected to vest as of January 31, 2018 1,980 $ 14.34 7.52 $ 39,493 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 nine months ended January 31, 2018 was $3.7 million. There were no stock option exercises during the nine months ended January 31, 2017 . As of January 31, 2018 , there was $1.3 million of total unrecognized compensation cost related to stock options. That cost is expected to be recognized over a weighted-average period of 2.2 years. The fair value of stock options granted during the nine months ended January 31, 2018 and 2017 was estimated using the Black-Scholes option-pricing model with the following assumptions: Nine Months Ended January 31, 2018 2017 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 nine months ended January 31, 2018 and 2017 was $12.81 per share and $9.53 per share, respectively. 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. Restricted Stock Units During the nine months ended January 31, 2018, the Company granted 21,766 restricted stock units to employees pursuant to its Equity Incentive Plan. The restricted stock units vest ratably over three years and have a fair value of $37.49 per unit. As of January 31, 2018, there was $0.7 million of total unrecognized compensation cost related to nonvested restricted stock units. That cost is expected to be recognized over a weighted-average period of 2.8 years.

Stock Appreciation Rights, Defe

Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests	9 Months Ended
	Jan. 31, 2018
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 $3.2 million during the nine months ended January 31, 2018 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 January 31, 2018, all stock appreciation rights were vested. Current liabilities related to these plans of $0.3 million and $0.9 million were included in accrued compensation and employee benefits as of January 31, 2018 and April 30, 2017, respectively. Long‑term liabilities related to these plans of $21.7 million and $19.8 million were included in other liabilities as of January 31, 2018 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 1,863 Stock appreciation rights as of January 31, 2018 $ 22,024 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 $0.1 million and $0.3 million were included in accrued compensation and employee benefits as of January 31, 2018 and April 30, 2017, respectively. Long-term liabilities related to these plans of $2.1 million and $3.5 million were included in other liabilities as of January 31, 2018 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 178 Deferred compensation as of January 31, 2018 $ 2,195 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 $0.4 million and $1.7 million were included in accrued compensation and employee benefits as of January 31, 2018 and April 30, 2017, respectively. Long-term liabilities related to these instruments of $15.4 million and $22.6 million were included in liabilities to noncontrolling interest holders, less current portion as of January 31, 2018 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 1,192 Non-controlling interests as of January 31, 2018 $ 15,837 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	9 Months Ended
	Jan. 31, 2018
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 January 31, 2018, these leases had expiration dates through fiscal 2025. Rent expense related to these leases was $0.2 million and $0.6 million for the three and nine months ended January 31, 2018 and 2017, 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 $3.3 million and $10.5 million during the three and nine months ended January 31, 2018, respectively. The Company purchased inventory from SWP for distribution in the amount of $3.2 million and $9.6 million during the three and nine months ended January 31, 2017, respectively. Amounts due to SWP for purchases of inventory for distribution were $0.9 million and $1.1 million , respectively, as of January 31, 2018 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 for advisory and consulting services. The Company paid the final payment of $0.2 million during the nine months ended January 31, 2017, 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	9 Months Ended
	Jan. 31, 2018
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	9 Months Ended
	Jan. 31, 2018
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 nine months ended January 31, 2018 and 2017: Three Months Ended January 31, 2018 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 579,974 $ 193,329 $ 16,252 $ 41,658 Other 5,534 2,091 59 549 Corporate — — 179 — $ 585,508 $ 195,420 $ 16,490 $ 42,207 Three Months Ended January 31, 2017 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 557,774 $ 183,503 $ 18,018 $ 39,910 Other 4,749 2,224 77 768 Corporate — — 221 — $ 562,523 $ 185,727 $ 18,316 $ 40,678 Nine Months Ended January 31, 2018 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 1,858,259 $ 606,388 $ 48,744 $ 147,534 Other 17,410 6,396 183 1,667 Corporate — — 621 — $ 1,875,669 $ 612,784 $ 49,548 $ 149,201 Nine Months Ended January 31, 2017 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 1,689,407 $ 551,788 $ 50,597 $ 134,706 Other 14,762 5,748 236 1,432 Corporate — — 646 — $ 1,704,169 $ 557,536 $ 51,479 $ 136,138 The following table presents a reconciliation of Adjusted EBITDA to net income for the three and nine months ended January 31, 2018 and 2017: Three Months Ended Nine Months Ended January 31, January 31, 2018 2017 2018 2017 (in thousands) Adjusted EBITDA $ 42,207 $ 40,678 $ 149,201 $ 136,138 Interest expense (7,871) (7,431) (23,288) (22,162) Write-off of debt discount and deferred financing fees — (211) (74) (7,103) Interest income 44 23 93 101 Income tax benefit (expense) 4,488 (5,363) (15,555) (12,232) Depreciation expense (6,009) (6,465) (18,021) (19,395) Amortization expense (10,481) (11,851) (31,527) (32,084) Stock appreciation (expense) or income(a) (631) 498 (1,863) 734 Redeemable noncontrolling interests(b) (340) (256) (1,370) (3,079) Equity-based compensation(c) (430) (622) (1,277) (1,981) Severance and other permitted costs(d) (8) (57) (325) (315) Transaction costs (acquisitions and other)(e) (75) (305) (321) (2,783) Gain on sale of assets 51 114 648 244 Management fee to related party(f) — — — (188) Effects of fair value adjustments to inventory(g) (89) (155) (276) (776) Interest rate cap mark-to-market(h) (276) (109) (710) (241) Secondary public offering costs(i) (894) — (1,525) — Debt transaction costs(j) — (261) (758) (264) Net income $ 19,686 $ 8,227 $ 53,052 $ 34,614 (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 share-based awards. (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 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 nine months ended January 31, 2018 and 2017: Three Months Ended Nine Months Ended January 31, January 31, 2018 2017 2018 2017 (in thousands) Wallboard $ 256,413 $ 254,979 $ 829,568 $ 776,250 Ceilings 90,360 81,768 291,716 253,518 Steel framing 96,744 93,514 304,598 273,931 Other products 141,991 132,262 449,787 400,470 Total net sales $ 585,508 $ 562,523 $ 1,875,669 $ 1,704,169

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Jan. 31, 2018
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 nine months ended January 31, 2018 and 2017: Three Months Ended Nine Months Ended January 31, January 31, 2018 2017 2018 2017 (in thousands, except per share data) Net income $ 19,686 $ 8,227 $ 53,052 $ 34,614 Basic earnings per common share: Basic weighted average common shares outstanding 41,036 40,943 41,004 40,035 Basic earnings per common share $ 0.48 $ 0.20 $ 1.29 $ 0.86 Diluted earnings per common share: Basic weighted average common shares outstanding 41,036 40,943 41,004 40,035 Add: Common Stock Equivalents 1,192 635 1,163 635 Diluted weighted average common shares outstanding 42,228 41,578 42,167 40,670 Diluted earnings per common share $ 0.47 $ 0.20 $ 1.26 $ 0.85

Business, Basis of Presentati17

Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Jan. 31, 2018
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. On December 14, 2017, certain of our stockholders completed an additional secondary public offering of 5.0 million shares of the Company’s common stock at a price to the public of $38.25 per share. 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 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 nine months ended January 31, 2017 was as follows: Nine Months Ended January 31, 2017 As Previously Reported Adjustment As Revised (in thousands) Cash flows from investing activities: Acquisition of business, net of cash acquired $ (141,650) $ (4,326) $ (145,976) Cash used in investing activities $ (145,305) $ (4,326) $ (149,631) Cash flows from financing activities: Cash paid for contingent consideration $ (4,326) $ 4,326 $ — Cash provided by financing activities $ 100,495 $ 4,326 $ 104,821
Principles of Consolidation	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 $0.3 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 layers cover 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 January 31, 2018 and April 30, 2017, the aggregate liabilities for medical self‑insurance were $4.3 million and $3.4 million, respectively, and are included in other accrued expenses and current liabilities in the Condensed Consolidated Balance Sheets. As of January 31, 2018 and April 30, 2017, reserves for general liability, automobile and workers’ compensation totaled approximately $15.8 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 January 31, 2018 and April 30, 2017, amounts recoverable for medical, general liability, automobile and workers’ compensation totaled approximately $6.2 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.
Income Taxes	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 primarily related to depreciation and amortization that would occur within the same jurisdiction and during the carryforward period necessary to absorb 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.
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 their short‑term natures. 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. We also use Level 3 inputs to measure fair value on a non-recurring basis for acquisitions and impairment testing.
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 securities or other contracts to issue common stock, including stock options and restricted stock units (collectively "Common Stock Equivalents"), were exercised or converted into common stock . The dilutive effect of outstanding stock options and restricted stock units is reflected in diluted earnings per share by application of the treasury stock method. In applying the treasury stock method for stock-based compensation arrangements, the assumed proceeds are computed as the sum of the amount the employee must pay upon exercise, the amount of compensation cost attributed to future services and not yet recognized and the amount of excess tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of the awards. 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 Common Stock Equivalents for the 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 plans to adopt the standard in the first quarter of its fiscal year ending April 30, 2019 and expects to use the modified retrospective approach. The Company has substantially completed its assessment of the new revenue recognition guidance . 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 material ROU assets and liabilities. 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 $1.2 million during the nine months ended January 31, 2018. 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 Presentati18

Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Jan. 31, 2018
Business, Basis of Presentation and Summary of Significant Accounting Policies
Schedule of effect of revision on Condensed 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 nine months ended January 31, 2017 was as follows: Nine Months Ended January 31, 2017 As Previously Reported Adjustment As Revised (in thousands) Cash flows from investing activities: Acquisition of business, net of cash acquired $ (141,650) $ (4,326) $ (145,976) Cash used in investing activities $ (145,305) $ (4,326) $ (149,631) Cash flows from financing activities: Cash paid for contingent consideration $ (4,326) $ 4,326 $ — Cash provided by financing activities $ 100,495 $ 4,326 $ 104,821

Business Acquisitions (Tables)

Business Acquisitions (Tables)	9 Months Ended
	Jan. 31, 2018
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 Southwest Building Materials, Ltd. Purchase of net assets December 4, 2017
Schedule of allocation of consideration for acquisitions	Preliminary Purchase Price Allocation January 31, 2018 (in thousands) Trade accounts and notes receivable $ 4,525 Inventories 3,824 Property and equipment 909 Tradenames 1,000 Vendor agreement 1,000 Below market leases 350 Intangible assets 8,920 Goodwill 3,310 Liabilities assumed (1,945) Purchase price $ 21,893
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 January 31, 2018 (in thousands) Cash and cash equivalents $ 1,558 $ — $ 1,558 Trade accounts and notes receivable 37,691 (63) 37,628 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 (144) 37,584 Deferred tax liability (6,011) — (6,011) Liabilities assumed (16,958) 560 (16,398) Purchase price $ 153,676 $ 367 $ 154,043

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Jan. 31, 2018
Goodwill and Intangible Assets
Schedule of changes in the carrying amount of goodwill	Carrying Amount (in thousands) Balance as of May 1, 2017 $ 423,644 Goodwill acquired 3,310 Purchase price adjustments (144) Balance as of January 31, 2018 $ 426,810
Schedule of components of definite-lived intangible assets	Estimated Weighted January 31, 2018 Useful Average Gross Net Lives Amortization Carrying Accumulated Carrying (years) Period Amount Amortization Value (dollars in thousands) Customer relationships 5 - 13 10.9 $ 281,839 $ 140,825 $ 141,014 Definite-lived tradenames 5 - 20 18.0 26,250 2,901 23,349 Vendor agreements 8 - 10 8.3 6,644 2,754 3,890 Leasehold interests 7 - 15 9.0 2,866 746 2,120 Other 5 5.0 521 47 474 Totals $ 318,120 $ 147,273 $ 170,847 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)	9 Months Ended
	Jan. 31, 2018
Long-Term Debt
Schedule of long-term debt	January 31, April 30, 2018 2017 (in thousands) First Lien Term Loan due 2023 (1) (2) $ 564,141 $ 470,245 ABL Facility — 103,353 Capital lease obligations, at an annual rate of 5.50%, due in monthly installments through 2023 19,034 15,611 Installment notes at fixed rates up to 5.0%, due in monthly and annual installments through 2023 (3) 14,309 5,711 Carrying value of debt 597,484 594,920 Less current portion 15,949 11,530 Long-term debt $ 581,535 $ 583,390 (1) Net of unamortized discount of $2,677 and $1,658 as of January 31, 2018 and April 30, 2017, respectively. (2) Net of deferred financing costs of $6,466 and $5,712 as of January 31, 2018 and April 30, 2017, respectively. (3) Net of unamortized discount of $1,599 and $751 as of January 31, 2018 and April 30, 2017, respectively.

Equity-Based Compensation - (Ta

Equity-Based Compensation - (Tables)	9 Months Ended
	Jan. 31, 2018
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 63 37.49 Options exercised (171) 12.56 Options forfeited — — Options expired — — Outstanding as of January 31, 2018 1,980 $ 14.34 6.58 $ 39,493 Exercisable as of January 31, 2018 1,559 $ 12.89 6.33 $ 33,339 Vested and expected to vest as of January 31, 2018 1,980 $ 14.34 7.52 $ 39,493
Schedule of weighted average assumptions used in Black-Scholes option-pricing model	Nine Months Ended January 31, 2018 2017 Volatility % 41.10 % Expected life (years) Risk-free interest rate % 1.53 % Dividend yield — % — %

Stock Appreciation Rights, De23

Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests (Tables)	9 Months Ended
	Jan. 31, 2018
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 1,863 Stock appreciation rights as of January 31, 2018 $ 22,024
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 178 Deferred compensation as of January 31, 2018 $ 2,195
Redeemable Noncontrolling Interests
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 1,192 Non-controlling interests as of January 31, 2018 $ 15,837

Segments (Tables)

Segments (Tables)	9 Months Ended
	Jan. 31, 2018
Segments
Schedule of segment results	Three Months Ended January 31, 2018 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 579,974 $ 193,329 $ 16,252 $ 41,658 Other 5,534 2,091 59 549 Corporate — — 179 — $ 585,508 $ 195,420 $ 16,490 $ 42,207 Three Months Ended January 31, 2017 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 557,774 $ 183,503 $ 18,018 $ 39,910 Other 4,749 2,224 77 768 Corporate — — 221 — $ 562,523 $ 185,727 $ 18,316 $ 40,678 Nine Months Ended January 31, 2018 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 1,858,259 $ 606,388 $ 48,744 $ 147,534 Other 17,410 6,396 183 1,667 Corporate — — 621 — $ 1,875,669 $ 612,784 $ 49,548 $ 149,201 Nine Months Ended January 31, 2017 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 1,689,407 $ 551,788 $ 50,597 $ 134,706 Other 14,762 5,748 236 1,432 Corporate — — 646 — $ 1,704,169 $ 557,536 $ 51,479 $ 136,138
Reconciliation of Adjusted EBITDA to net income	Three Months Ended Nine Months Ended January 31, January 31, 2018 2017 2018 2017 (in thousands) Adjusted EBITDA $ 42,207 $ 40,678 $ 149,201 $ 136,138 Interest expense (7,871) (7,431) (23,288) (22,162) Write-off of debt discount and deferred financing fees — (211) (74) (7,103) Interest income 44 23 93 101 Income tax benefit (expense) 4,488 (5,363) (15,555) (12,232) Depreciation expense (6,009) (6,465) (18,021) (19,395) Amortization expense (10,481) (11,851) (31,527) (32,084) Stock appreciation (expense) or income(a) (631) 498 (1,863) 734 Redeemable noncontrolling interests(b) (340) (256) (1,370) (3,079) Equity-based compensation(c) (430) (622) (1,277) (1,981) Severance and other permitted costs(d) (8) (57) (325) (315) Transaction costs (acquisitions and other)(e) (75) (305) (321) (2,783) Gain on sale of assets 51 114 648 244 Management fee to related party(f) — — — (188) Effects of fair value adjustments to inventory(g) (89) (155) (276) (776) Interest rate cap mark-to-market(h) (276) (109) (710) (241) Secondary public offering costs(i) (894) — (1,525) — Debt transaction costs(j) — (261) (758) (264) Net income $ 19,686 $ 8,227 $ 53,052 $ 34,614 (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 share-based awards. (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 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 Nine Months Ended January 31, January 31, 2018 2017 2018 2017 (in thousands) Wallboard $ 256,413 $ 254,979 $ 829,568 $ 776,250 Ceilings 90,360 81,768 291,716 253,518 Steel framing 96,744 93,514 304,598 273,931 Other products 141,991 132,262 449,787 400,470 Total net sales $ 585,508 $ 562,523 $ 1,875,669 $ 1,704,169

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Jan. 31, 2018
Earnings Per Common Share
Schedule of computation of basic and diluted earnings per share of common stock	Three Months Ended Nine Months Ended January 31, January 31, 2018 2017 2018 2017 (in thousands, except per share data) Net income $ 19,686 $ 8,227 $ 53,052 $ 34,614 Basic earnings per common share: Basic weighted average common shares outstanding 41,036 40,943 41,004 40,035 Basic earnings per common share $ 0.48 $ 0.20 $ 1.29 $ 0.86 Diluted earnings per common share: Basic weighted average common shares outstanding 41,036 40,943 41,004 40,035 Add: Common Stock Equivalents 1,192 635 1,163 635 Diluted weighted average common shares outstanding 42,228 41,578 42,167 40,670 Diluted earnings per common share $ 0.47 $ 0.20 $ 1.26 $ 0.85

Business, Basis of Presentati26

Business, Basis of Presentation and Summary of Significant Accounting Policies - Business (Details)	Jan. 31, 2018locationstate
Business
Number of branches through which products are distributed | location	210
Number of states in which products are distributed | state	42

Business, Basis of Presentati27

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	Jan. 31, 2018$ / sharesshares	Apr. 30, 2017$ / sharesshares
Stock
Stock authorized (in shares)	550,000
Common stock authorized (in shares)	500,000	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 Presentati28

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	Dec. 14, 2017	Jun. 07, 2017	Feb. 22, 2017	Jun. 01, 2016	Jan. 31, 2017
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	5.8	8
Price to the public (in dollars per share)	$ 38.25	$ 33	$ 29.25
Selling stockholders | Underwriters over-allotment option
Initial and Secondary Public Offerings
Shares sold		0.8	1

Business, Basis of Presentati29

Business, Basis of Presentation and Summary of Significant Accounting Policies - Revision of Previously Issued Statements of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Cash flows from investing activities:
Acquisition of business, net of cash acquired	$ (23,568)	$ (145,976)
Cash used in investing activities	(34,602)	(149,631)
Cash flows from financing activities:
Cash provided by financing activities	$ (14,753)	104,821
As previously reported
Cash flows from investing activities:
Acquisition of business, net of cash acquired		(141,650)
Cash used in investing activities		(145,305)
Cash flows from financing activities:
Cash paid for contingent consideration		(4,326)
Cash provided by financing activities		100,495
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 Presentati30

Business, Basis of Presentation and Summary of Significant Accounting Policies - Insurance Liabilities (Details) - USD ($) $ in Millions	Jan. 31, 2018	Apr. 30, 2017
Other accrued expenses and current liabilities
Insurance Liabilities
Aggregate liabilities for medical self-insurance	$ 4.3	$ 3.4
General liability
Insurance Liabilities
Deductible amount	0.3
Workers' compensation
Insurance Liabilities
Deductible amount	0.5
Automobile
Insurance Liabilities
Deductible amount	1
General liability, workers' compensation and automobile
Insurance Liabilities
Reserve for insurance	15.8	15.9
General liability, workers' compensation and automobile | Prepaid expenses and other current assets
Insurance Liabilities
Insurance recovery receivable	6.2	$ 6.7
General liability, workers' compensation and automobile | Minimum
Insurance Liabilities
Primary layer of insurance coverage	0.5
Excess layer of insurance coverage	2
General liability, workers' compensation and automobile | Maximum
Insurance Liabilities
Primary layer of insurance coverage	2
Excess layer of insurance coverage	$ 100

Business, Basis of Presentati31

Business, Basis of Presentation and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) $ in Millions	9 Months Ended
	Jan. 31, 2018USD ($)
ASU 2016 09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Excess tax benefits	$ 1.2

Business Acquisitions (Details)

Business Acquisitions (Details) $ in Thousands	9 Months Ended
	Jan. 31, 2018USD ($)segment	Apr. 30, 2017USD ($)	Sep. 01, 2016
Business Acquisitions
Number of reportable segments | segment	1
Preliminary Purchase Price Allocation
Goodwill	$ 426,810	$ 423,644
Adjustments/Reclassifications
Goodwill	(144)
2018 Acquisitions
Purchase price
Aggregate purchase price	21,900
Preliminary Purchase Price Allocation
Trade accounts and notes receivable	4,525
Inventories	3,824
Property and equipment	909
Definite lived intangible assets	8,920
Goodwill	3,310
Liabilities assumed	(1,945)
Purchase price	21,893
2018 Acquisitions | Tradenames
Preliminary Purchase Price Allocation
Definite lived intangible assets	1,000
2018 Acquisitions | Vendor agreement
Preliminary Purchase Price Allocation
Definite lived intangible assets	1,000
2018 Acquisitions | Below market leases
Preliminary Purchase Price Allocation
Definite lived intangible assets	350
2017 Acquisitions
Purchase price
Aggregate purchase price	154,000
Cash consideration	148,700
Contingent consideration	5,300
Preliminary Purchase Price Allocation
Cash and cash equivalents	1,558
Trade accounts and notes receivable	37,628
Inventories	16,504
Other current assets	671
Property and equipment	8,357
Goodwill	37,584
Deferred tax liability	(6,011)
Liabilities assumed	(16,398)
Purchase price	154,043
Adjustments/Reclassifications
Trade accounts and notes receivable	(63)
Other current assets	14
Goodwill	(144)
Liabilities assumed	560
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	25,400
Other intangible assets expected to be deductible for U.S. federal income tax purposes	53,600
Goodwill expected to be nondeductible for U.S. federal income tax purposes	12,200
Other intangible assets expected to be nondeductible for U.S. federal income tax purposes	20,600
2017 Acquisitions | Tradenames
Preliminary Purchase Price Allocation
Definite lived intangible assets	9,490
2017 Acquisitions | Customer relationships
Preliminary Purchase Price Allocation
Definite lived intangible assets	$ 64,660
2017 Acquisitions | As previously reported
Preliminary Purchase Price Allocation
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
Preliminary Purchase Price Allocation
Definite lived intangible assets		9,490
2017 Acquisitions | As previously reported | Customer relationships
Preliminary Purchase Price Allocation
Definite lived intangible assets		$ 64,660
Olympia Building Supplies, LLC/Redmill, Inc.
Business Acquisitions
Outstanding common stock purchased (as a percent)			100.00%

Goodwill and Intangible Asset33

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	9 Months Ended
	Jan. 31, 2018USD ($)
Carrying Amount of Goodwill
Balance	$ 423,644
Goodwill acquired	3,310
Purchase price adjustments	(144)
Balance	$ 426,810

Goodwill and Intangible Asset34

Goodwill and Intangible Assets - Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jan. 31, 2018	Apr. 30, 2017
Definite-lived intangible assets
Gross Carrying Amount	$ 318,120	$ 306,606
Accumulated Amortization	147,273	115,681
Net Carrying Value	$ 170,847	$ 190,925
Customer relationships
Definite-lived intangible assets
Weighted Average Amortization Period (in years)	10 years 10 months 24 days	10 years 10 months 24 days
Gross Carrying Amount	$ 281,839	$ 273,196
Accumulated Amortization	140,825	111,291
Net Carrying Value	$ 141,014	$ 161,905
Customer relationships | Minimum
Definite-lived intangible assets
Estimated Useful Lives (years)	5 years	5 years
Customer relationships | Maximum
Definite-lived intangible assets
Estimated Useful Lives (years)	13 years	13 years
Tradenames
Definite-lived intangible assets
Weighted Average Amortization Period (in years)	18 years	18 years 3 months 18 days
Gross Carrying Amount	$ 26,250	$ 25,250
Accumulated Amortization	2,901	1,718
Net Carrying Value	$ 23,349	$ 23,532
Tradenames | Minimum
Definite-lived intangible assets
Estimated Useful Lives (years)	5 years	5 years
Tradenames | Maximum
Definite-lived intangible assets
Estimated Useful Lives (years)	20 years	20 years
Vendor agreements
Definite-lived intangible assets
Estimated Useful Lives (years)		8 years
Weighted Average Amortization Period (in years)	8 years 3 months 18 days	8 years
Gross Carrying Amount	$ 6,644	$ 5,644
Accumulated Amortization	2,754	2,176
Net Carrying Value	$ 3,890	$ 3,468
Vendor agreements | Minimum
Definite-lived intangible assets
Estimated Useful Lives (years)	8 years
Vendor agreements | Maximum
Definite-lived intangible assets
Estimated Useful Lives (years)	10 years
Leasehold interests
Definite-lived intangible assets
Weighted Average Amortization Period (in years)	9 years	8 years 2 months 12 days
Gross Carrying Amount	$ 2,866	$ 2,516
Accumulated Amortization	746	496
Net Carrying Value	$ 2,120	$ 2,020
Leasehold interests | Minimum
Definite-lived intangible assets
Estimated Useful Lives (years)	7 years	7 years
Leasehold interests | Maximum
Definite-lived intangible assets
Estimated Useful Lives (years)	15 years	13 years
Other
Definite-lived intangible assets
Estimated Useful Lives (years)	5 years
Weighted Average Amortization Period (in years)	5 years
Gross Carrying Amount	$ 521
Accumulated Amortization	47
Net Carrying Value	$ 474

Goodwill and Intangible Asset35

Goodwill and Intangible Assets - Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
Intangible assets
Amortization expense	$ 10,481	$ 11,851	$ 31,527	$ 32,084
Depreciation and amortization expense
Intangible assets
Amortization expense	$ 10,500	$ 11,900	$ 31,500	$ 32,100

Goodwill and Intangible Asset36

Goodwill and Intangible Assets - Estimated Aggregate Amortization Expense (Details) $ in Millions	Jan. 31, 2018USD ($)
Estimated aggregate future amortization expense
Expense remainder of fiscal year	$ 10
2,019	34.8
2,020	27.9
2,021	22.6
2,022	18.3
Thereafter	$ 57.2

Goodwill and Intangible Asset37

Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Millions	Jan. 31, 2018	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	Jan. 31, 2018	Apr. 30, 2017
Long-term debt
Carrying value of debt	$ 597,484	$ 594,920
Less current portion	15,949	11,530
Long-term debt	581,535	583,390
First Lien Term Loan due 2023
Long-term debt
Carrying value of debt	564,141	470,245
Unamortized discount	2,677	1,658
Deferred financing costs	6,466	5,712
ABL Facility
Long-term debt
Carrying value of debt		103,353
Capital lease obligations
Long-term debt
Carrying value of debt	$ 19,034	$ 15,611
Interest rate	5.50%	5.50%
Installment notes
Long-term debt
Carrying value of debt	$ 14,309	$ 5,711
Unamortized discount	$ 1,599	$ 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	Jan. 31, 2018	Jun. 07, 2017	Sep. 27, 2016	Jun. 01, 2016	Apr. 01, 2014	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
Long-term debt
Repayment of amounts outstanding under credit facility							$ 597,092	$ 817,598
Net amount of debt issued							577,616	481,225
Cash paid for interest							21,192	20,038
Write-off of debt discount and deferred financing fees						$ 211	$ 74	7,103
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)			(0.25%)
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)	4.77%						4.77%
Reduction to interest rate margin at each pricing level (as a percent)		(0.50%)
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
Borrowing interest rate (as a percent)	4.75%						4.75%
Loan repayment	$ 94,000

Long-Term Debt - Asset-Based Le

Long-Term Debt - Asset-Based Lending Facility (Details) - ABL Facility $ in Millions	Jan. 31, 2018USD ($)
Long-term debt
Maximum amount under the facility	$ 345
Borrowing interest rate (as a percent)	4.75%
Available borrowings under the facility	$ 333.6
Swing-line
Long-term debt
Maximum amount under the facility	$ 34.5

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	4 Months Ended	8 Months Ended	9 Months Ended		12 Months Ended
	Jan. 31, 2018	Apr. 30, 2018	Dec. 31, 2017	Jan. 31, 2018	Jan. 31, 2017	Apr. 30, 2018	Apr. 30, 2017
U.S. corporate income tax rate (as a percent)			35.00%
Provisional income tax benefit	$ 7.8			$ 7.8
Effective income tax rate (as a percent)				22.70%	26.10%
Decrease in deferred tax liabilities and tax expense					$ 7
Valuation allowance	$ 0.3			$ 0.3			$ 0.3
Forecast
U.S. corporate income tax rate (as a percent)		21.00%				30.40%

Equity-Based Compensation - Gen

Equity-Based Compensation - General (Details) shares in Millions	9 Months Ended
	Jan. 31, 2018shares
Stock Options
Stock options
Vesting period (in years)	4 years
Term	10 years
Plan
Stock options
Shares authorized	2.5
Number of shares available for grant	2.4

Equity-Based Compensation - Sto

Equity-Based Compensation - Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended		12 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Apr. 30, 2017
Number of Options
Outstanding, beginning of the period (in shares)	2,088
Options granted (in shares)	63
Options exercised (in shares)	(171)	0
Outstanding, end of the period (in shares)	1,980		2,088
Exercisable at end of period (in shares)	1,559
Vested and expected to vest at end of period (in shares)	1,980
Weighted Average Exercise Price
Outstanding, beginning of period (in dollars per share)	$ 13.49
Options granted (in dollars per share)	37.49
Options exercised (in dollars per share)	12.56
Outstanding, end of the period (in dollars per share)	14.34		$ 13.49
Exercisable at end of period (in dollars per share)	12.89
Vested and expected to vest at end of period (in dollars per share)	$ 14.34
Other disclosures
Weighted Average Remaining Contractual Life, Outstanding (in years)	6 years 6 months 29 days		7 years 2 months 23 days
Weighted Average Remaining Contractual Life, Exercisable at end of period (in years)	6 years 3 months 29 days
Weighted Average Remaining Contractual Life, Vested and expected to vest at end of period (in years)	7 years 6 months 7 days
Aggregate Intrinsic Value, Outstanding	$ 39,493		$ 47,336
Aggregate Intrinsic Value, Exercisable at end of period	33,339
Aggregate Intrinsic Value, Vested and expected to vest at end of period	39,493
Intrinsic value of options exercised	3,700
Unrecognized compensation cost	$ 1,300
Weighted-average period for recognition of unrecognized compensation expense (in years)	2 years 2 months 12 days

Equity-Based Compensation - Bla

Equity-Based Compensation - Black Scholes Options - Pricing Model (Details) - Stock Options - $ / shares	9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Fair Value Assumptions
Volatility (as a percent)	30.86%	41.10%
Expected life (years)	6 years	6 years
Risk-free interest rate (as a percent)	2.18%	1.53%
Weighted average grant date fair value (in dollars per share)	$ 12.81	$ 9.53

Equity-Based Compensation - Res

Equity-Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units $ / shares in Units, $ in Millions	9 Months Ended
	Jan. 31, 2018USD ($)$ / sharesshares
Restricted stock units granted to employees (in shares) | shares	21,766
Vesting period (in years)	3 years
Fair value on grant date (in dollars per share) | $ / shares	$ 37.49
Unrecognized compensation cost | $	$ 0.7
Weighted-average period for recognition of unrecognized compensation expense (in years)	2 years 9 months 18 days

Stock Appreciation Rights, De46

Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands	9 Months Ended
	Jan. 31, 2018	Apr. 30, 2017
Equity based compensation arrangements
Long-term liabilities related to plans	$ 15,381	$ 22,576
Selling, general and administrative expenses
Equity based compensation arrangements
Expense related to equity based compensation arrangements	$ 3,200
Stock Appreciation Rights
Equity based compensation arrangements
Settlement period	4 years
Award liability as of beginning of year	$ 20,662
Amounts redeemed	(501)
Change in fair value	1,863
Award liability as of end of year	22,024
Stock Appreciation Rights | Accrued compensation and employee benefits
Equity based compensation arrangements
Current liabilities related to plans	300	900
Stock Appreciation Rights | Other liabilities
Equity based compensation arrangements
Long-term liabilities related to plans	$ 21,700	19,800
Deferred Compensation
Equity based compensation arrangements
Settlement period	5 years
Award liability as of beginning of year	$ 3,750
Amounts redeemed	(1,733)
Change in fair value	178
Award liability as of end of year	2,195
Deferred Compensation | Accrued compensation and employee benefits
Equity based compensation arrangements
Current liabilities related to plans	100	300
Deferred Compensation | Other liabilities
Equity based compensation arrangements
Long-term liabilities related to plans	$ 2,100	3,500
Redeemable Noncontrolling Interests
Equity based compensation arrangements
Settlement period	5 years
Award liability as of beginning of year	$ 24,309
Amounts redeemed	(9,664)
Change in fair value	1,192
Award liability as of end of year	15,837
Redeemable Noncontrolling Interests | Accrued compensation and employee benefits
Equity based compensation arrangements
Current liabilities related to plans	400	1,700
Redeemable Noncontrolling Interests | Liabilities to noncontrolling interest holders, less current portion
Equity based compensation arrangements
Long-term liabilities related to plans	$ 15,400	$ 22,600

Transactions With Related Par47

Transactions With Related Parties - Facilities Rental (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jan. 31, 2018	Jan. 31, 2018
Affiliated partnerships or entities | Lease of office and warehouse facilities | Selling, general and administrative expenses
Transactions with related parties
Rent expense	$ 0.2	$ 0.6

Transactions With Related Par48

Transactions With Related Parties - Purchased Inventories (Details) - Southern Wall Products, Inc. - Inventory purchases - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017	Apr. 30, 2017
Transactions with related parties
Purchases from related party	$ 3.3	$ 3.2	$ 10.5	$ 9.6
Accounts payable
Transactions with related parties
Due to SWP	$ 0.9		$ 0.9		$ 1.1

Transactions With Related Par49

Transactions With Related Parties - Management Agreement (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	May 31, 2016	Jan. 31, 2017
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)	9 Months Ended	12 Months Ended
	Jan. 31, 2018segmentdivision	Apr. 30, 2017segment
Segment Reporting Information [Line Items]
Number of operating segments	6
Number of reportable segments	1
Number of geographic divisions | division	6
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		9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
Segment information
Net sales	$ 585,508	$ 562,523	$ 1,875,669	$ 1,704,169
Gross Profit	195,420	185,727	612,784	557,536
Depreciation and Amortization	16,490	18,316	49,548	51,479
Adjusted EBITDA	42,207	40,678	149,201	136,138
Geographic divisions
Segment information
Net sales	579,974	557,774	1,858,259	1,689,407
Gross Profit	193,329	183,503	606,388	551,788
Depreciation and Amortization	16,252	18,018	48,744	50,597
Adjusted EBITDA	41,658	39,910	147,534	134,706
Other.
Segment information
Net sales	5,534	4,749	17,410	14,762
Gross Profit	2,091	2,224	6,396	5,748
Depreciation and Amortization	59	77	183	236
Adjusted EBITDA	549	768	1,667	1,432
Corporate
Segment information
Depreciation and Amortization	$ 179	$ 221	$ 621	$ 646

Segments - Reconciliation of Ne

Segments - Reconciliation of Net Income to Adjusted EBITDA (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
Segments
Adjusted EBITDA	$ 42,207	$ 40,678	$ 149,201	$ 136,138
Interest expense	(7,871)	(7,431)	(23,288)	(22,162)
Write-off of debt discount and deferred financing fees		(211)	(74)	(7,103)
Interest income	44	23	93	101
Income tax benefit (expense)	4,488	(5,363)	(15,555)	(12,232)
Depreciation expense	(6,009)	(6,465)	(18,021)	(19,395)
Amortization expense	(10,481)	(11,851)	(31,527)	(32,084)
Stock appreciation (expense) or income	(631)	498	(1,863)	734
Redeemable noncontrolling interests	(340)	(256)	(1,370)	(3,079)
Equity-based compensation	(430)	(622)	(1,277)	(1,981)
Severance and other permitted costs	(8)	(57)	(325)	(315)
Transaction costs (acquisitions and other)	(75)	(305)	(321)	(2,783)
Gain on sale of assets	51	114	648	244
Management fee to related party				(188)
Effects of fair value adjustments to inventory	(89)	(155)	(276)	(776)
Interest rate cap mark-to-market	(276)	(109)	(710)	(241)
Secondary public offering costs	(894)		(1,525)
Debt transaction costs		(261)	(758)	(264)
Net income	$ 19,686	$ 8,227	$ 53,052	$ 34,614

Segments - Net Sales by Main Pr

Segments - Net Sales by Main Product Lines (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
Revenue from external customers
Total net sales	$ 585,508	$ 562,523	$ 1,875,669	$ 1,704,169
Wallboard
Revenue from external customers
Total net sales	256,413	254,979	829,568	776,250
Ceilings
Revenue from external customers
Total net sales	90,360	81,768	291,716	253,518
Steel framing
Revenue from external customers
Total net sales	96,744	93,514	304,598	273,931
Other products
Revenue from external customers
Total net sales	$ 141,991	$ 132,262	$ 449,787	$ 400,470

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
Computation of basic and diluted earnings per share of common stock
Net income	$ 19,686	$ 8,227	$ 53,052	$ 34,614
Basic earnings per common share:
Basic weighted average common shares outstanding (in shares)	41,036	40,943	41,004	40,035
Basic earnings per common share (in dollars per share)	$ 0.48	$ 0.20	$ 1.29	$ 0.86
Diluted earnings per common share:
Basic weighted average common shares outstanding (in shares)	41,036	40,943	41,004	40,035
Add: Common Stock Equivalents	1,192	635	1,163	635
Diluted weighted average common shares outstanding (in shares)	42,228	41,578	42,167	40,670
Diluted earnings per common share (in dollars per share)	$ 0.47	$ 0.20	$ 1.26	$ 0.85