GMS (GMS) 10-Q 30 Aug 18 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Jul. 31, 2018shares
Document and Entity Information
Entity Registrant Name	GMS Inc.
Entity Central Index Key	1,600,438
Document Type	10-Q
Document Period End Date	Jul. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	41,138,634
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2018	Apr. 30, 2018
Current assets:
Cash and cash equivalents	$ 36,865	$ 36,437
Trade accounts and notes receivable, net of allowances of $7,982 and $9,633, respectively	474,394	346,450
Inventories, net	315,968	239,223
Prepaid expenses and other current assets	17,135	11,726
Total current assets	844,362	633,836
Property and equipment, net of accumulated depreciation of $94,015 and $85,761, respectively	272,806	163,582
Goodwill	623,200	427,645
Intangible assets, net	494,586	222,682
Other assets	10,916	6,766
Total assets	2,245,870	1,454,511
Current liabilities:
Accounts payable	145,865	116,168
Accrued compensation and employee benefits	33,077	56,323
Other accrued expenses and current liabilities	60,640	45,146
Current portion of long-term debt	34,317	16,284
Total current liabilities	273,899	233,921
Non-current liabilities:
Long-term debt, less current portion	1,269,323	579,602
Deferred income taxes, net	24,508	10,742
Other liabilities	46,087	35,088
Liabilities to noncontrolling interest holders, less current portion	12,773	15,707
Total liabilities	1,626,590	875,060
Commitments and contingencies
Stockholders' equity
Common stock, par value $0.01 per share, 500,000 shares authorized; 41,139 and 41,069 shares issued and outstanding as of July 31, 2018 and April 30, 2018, respectively	411	411
Preferred stock, par value $0.01 per share, 50,000 shares authorized; 0 shares issued and outstanding as of July 31, 2018 and April 30, 2018
Exchangeable shares	33,194
Additional paid-in capital	490,670	489,007
Retained earnings	98,242	89,592
Accumulated other comprehensive income (loss)	(3,237)	441
Total stockholders' equity	619,280	579,451
Total liabilities and stockholders’ equity	$ 2,245,870	$ 1,454,511

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jul. 31, 2018	Apr. 30, 2018
Condensed Consolidated Balance Sheets
Trade accounts and notes receivable, allowances (in dollars)	$ 7,982	$ 9,633
Property and equipment, accumulated depreciation (in dollars)	$ 94,015	$ 85,761
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000	500,000
Common stock, shares issued	41,139	41,069
Common stock, shares outstanding	41,139	41,069
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
Preferred stock, shares outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Condensed Consolidated Statements of Operations and Comprehensive Income
Net sales	$ 778,144	$ 642,157
Cost of sales (exclusive of depreciation and amortization shown separately below)	533,328	437,053
Gross profit	244,816	205,104
Operating expenses:
Selling, general and administrative	185,435	156,072
Depreciation and amortization	26,322	16,345
Total operating expenses	211,757	172,417
Operating income	33,059	32,687
Other (expense) income:
Interest expense	(16,188)	(7,500)
Change in fair value of financial instruments	(6,019)	(196)
Write-off of debt discount and deferred financing fees		(74)
Other income, net	634	486
Total other expense, net	(21,573)	(7,284)
Income before taxes	11,486	25,403
Provision for income taxes	2,836	10,060
Net income	$ 8,650	$ 15,343
Weighted average common shares outstanding:
Basic (in shares)	41,094	40,971
Diluted (in shares)	42,074	42,128
Net income per common share:
Basic (in dollars per share)	$ 0.21	$ 0.37
Diluted (in dollars per share)	$ 0.20	$ 0.36
Comprehensive income
Net income	$ 8,650	$ 15,343
Foreign currency translation loss	(3,791)
Changes in other comprehensive income, net of tax	113	153
Comprehensive income	$ 4,972	$ 15,496

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Cash flows from operating activities:
Net income	$ 8,650	$ 15,343
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	26,322	16,345
Write-off and amortization of debt discount and debt issuance costs	825	734
Provision for losses on accounts and notes receivable	148	849
Provision for obsolescence of inventory	(22)	371
Effects of fair value adjustments to inventory	4,129
Increase in fair value of contingent consideration	229
Equity-based compensation	1,269	1,178
Gain on sale and disposal of assets	(121)	(390)
Change in fair value of financial instruments	6,019	196
Changes in assets and liabilities net of effects of acquisitions:
Trade accounts and notes receivable	(40,974)	(12,913)
Inventories	(20,943)	(3,318)
Prepaid expenses and other assets	416	(2,996)
Accounts payable	(1,696)	9,506
Accrued compensation and employee benefits	(22,945)	(27,694)
Derivative liability	(10,778)
Other accrued expenses and current liabilities	2,219	14,026
Deferred income taxes	(571)	(2,712)
Cash (used in) provided by operating activities	(47,824)	8,525
Cash flows from investing activities:
Purchases of property and equipment	(3,793)	(5,511)
Proceeds from sale of assets	266	1,424
Acquisition of businesses, net of cash acquired	(575,499)	(3,124)
Cash used in investing activities	(579,026)	(7,211)
Cash flows from financing activities:
Repayments on the revolving credit facility	(176,769)	(257,382)
Borrowings from the revolving credit facility	392,170	167,429
Payments of principal on long-term debt	(2,492)	(1,444)
Payments of principal on capital lease obligations	(3,998)	(1,434)
Borrowings from term loan	996,840	577,616
Repayments of term loan	(571,840)	(477,616)
Debt issuance costs	(7,933)	(3,308)
Proceeds from exercises of stock options	431
Other financing activities	873
Cash provided by financing activities	627,282	3,861
Effect of exchange rates on cash and cash equivalents	(4)
Increase in cash and cash equivalents	428	5,175
Cash and cash equivalents, beginning of period	36,437	14,561
Cash and cash equivalents, end of period	36,865	19,736
Supplemental cash flow disclosures:
Cash paid for income taxes	958	1,787
Cash paid for interest	10,980	6,792
Supplemental schedule of noncash activities:
Assets acquired under capital lease	79,139	2,957
Issuance of installment notes associated with equity-based compensation liability awards	2,645
Increase in insurance claims payable and insurance recoverable	$ 2,231	$ 1,590

Business, Basis of Presentation

Business, Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Jul. 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 operate a network of more than 245 distribution centers across the United States and Canada. 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 any other interim period or the entire fiscal 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, 2018. 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. Foreign Currency Translation Assets and liabilities of the Company’s Canadian subsidiaries are translated at the exchange rate prevailing at the balance sheet date, while income and expenses are translated at average rates for the period. Translation gains and losses are reported as a separate component of equity and other comprehensive income (loss). Gains and losses on foreign currency transactions are recognized in the Condensed Consolidated Statement of Operations and Comprehensive Income within other income, net. 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 July 31, 2018 and April 30, 2018, the aggregate liabilities for medical self‑insurance were $3.8 million and $4.1 million, respectively, and are included in other accrued expenses and current liabilities in the Condensed Consolidated Balance Sheets. As of July 31, 2018 and April 30, 2018, reserves for general liability, workers’ compensation and automobile totaled approximately $16.4 million and $14.7 million, respectively, and are included in other accrued expenses and current liabilities and other liabilities in the Condensed Consolidated Balance Sheets. As of July 31, 2018 and April 30, 2018, expected recoveries for medical self‑insurance, general liability, automobile and workers’ compensation totaled approximately $6.6 million and $4.8 million, respectively, and are included in prepaid expenses and other current assets and other assets in the Condensed Consolidated Balance Sheets. Restructuring The Company recognizes a liability for costs associated with an exit or disposal activity when the liability is incurred. After the appropriate level of management, having the authority, approves the detailed restructuring plan and the appropriate criteria for recognition are met, the Company establishes accruals for employee termination and other costs, as applicable. During the three months ended July 31, 2018, the Company initiated a reduction in workforce as part of a strategic cost reduction plan to improve operational efficiency. The Company recorded $4.8 million of restructuring costs during the three months ended July 31, 2018 in connection with the reduction in workforce, consisting primarily of severance and other employee costs. Such costs are classified within selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income. The Company made payments of $1.7 million during the three months ended July 31, 2018. As of July 31, 2018, the Company had a remaining liability of $3.1 million, which was classified within other accrued expenses and current liabilities in the Condensed Consolidated Balance Sheet . The Company expects to make cash payments to settle the remaining liability within the next twelve months. 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 defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Authoritative guidance for fair value measurements establishes a three‑level hierarchy that prioritizes the inputs to valuation models based upon the degree to which they are observable. The three levels of the fair value measurement hierarchy are as follows: Level 1 Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 Inputs are unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying values of the Company’s cash, cash equivalents, trade receivables and trade payables approximate their fair values because of their short‑term nature . Based on borrowing rates available to the Company for loans with similar terms, the carrying values of the Company’s debt instruments approximate fair value. See Note 10, “Fair Value Measurements,” for additional information with respect to the Company’s fair value measurements. Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders 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 and the amount of compensation cost attributed to future services and not yet recognized. 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. The holders of the Company’s Exchangeable Shares (as defined in Note 3, “Business Acquisitions” and further described in Note 7, “Stockholders’ Equity”) are entitled to receive dividends or distributions that are equal to any dividends or distributions on the Company’s common stock. As a result, the Exchangeable Shares are classified as a participating security and thereby require the allocation of income that would have otherwise been available to common stockholders when calculating earnings per share. Diluted earnings per share is calculated by utilizing the most dilutive result of the if-converted and two-class methods. In both methods, net income attributable to common shareholders and the weighted-average common shares outstanding are adjusted to account for the impact of the assumed issuance of potential common shares that are dilutive, subject to dilution sequencing rules. Recently Adopted 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 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 adopted this guidance on May 1, 2018 (the first day of fiscal 2019) using the modified retrospective approach. The adoption of the new guidance, using the modified retrospective approach, did not have a material impact on the Company’s financial statements. The adoption of the new guidance resulted in a $3.6 million reclassification in the Condensed Consolidated Balance Sheet from trade accounts and notes receivable to other accrued expenses and current liabilities for estimated sales returns. The adoption of the new revenue guidance also resulted in additional disclosures regarding the Company’s revenue recognition. The additional disclosures required by this new standard are contained in Note 2, “Revenue.” Statement of Cash Flows – In August 2016, the FASB issued new guidance to reduce diversity in practice related to certain cash receipts and payment in the statement of cash flows by adding or clarifying guidance on eight specific cash flow issues. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 . Early adoption is permitted. The Company adopted this guidance on May 1, 2018 (the first day of fiscal 2019). As a result of the adoption, the Company now classifies cash payments for debt prepayment or debt extinguishment costs, including third-party costs and other fees paid to lenders that are directly related to the debt prepayment or debt extinguishment, as cash outflows for financing activities. This resulted in a $2.7 million reclass from cash (used in) provided by operating activities (specifically the line item changes in other accrued expenses and current liabilities) to cash provided by financing activities (specifically the line item debt issuance costs) in the Condensed Consolidated Statement of Cash Flows for the three months ended July 31, 2017. The adoption did not have any other material impact on the Company’s financial statements. Income Taxes – In October 2016, the FASB issued new guidance intended to improve the accounting for intra-entity transfers of assets other than inventory by requiring recognition of income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs. The new guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. The amendments in this update should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted this guidance on May 1, 2018 (the first day of fiscal 2019) with no material impact on its financial statements. Recently Issued Accounting Pronouncements 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 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. On July 30, 2018, the FASB issued new guidance that provides entities with an additional (and optional) transition method to adopt the new lease standard. Under this new transition method, an entity initially applies the new lease standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We have not yet determined whether we will use the newly permitted adoption method. Goodwill – In January 2017, the FASB issued authoritative guidance that simplifies the accounting for goodwill impairments by eliminating Step 2 from the goodwill impairment test . Under the new guidance, goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value. The new standard is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its financial statements. Accumulated Other Comprehensive Income – I n February 2018, the FASB issued authoritative guidance which permits entities to reclassify, to retained earnings, the one-time income tax effects stranded in accumulated other comprehensive income arising from the change in the U.S. federal corporate tax rate as a result of the Tax Cuts and Jobs Act of 2017. An entity that elects to make this reclassification must consider all items in accumulated other comprehensive income that have tax effects stranded as a result of the tax rate change, and must disclose the reclassification of these tax effects as well as the entity’s policy for releasing income tax effects from accumulated other comprehensive income. The new guidance may be applied either retrospectively or as of the beginning of the period of adoption. The new guidance is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company plans to adopt this guidance on May 1, 2019 (the first day of fiscal 2020). While this guidance will have no impact on the Company’s results of operations, the Company is currently assessing this standard’s impact on its consolidated financial position.

Revenue

Revenue	3 Months Ended
	Jul. 31, 2018
Revenue
Revenue	2. Revenue Revenue Recognition Revenue is recognized upon transfer of control of promised goods to customers at an amount that reflects the consideration the Company expects to receive in exchange for those goods. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. The Company includes shipping and handling costs billed to customers in net sales. These costs are recognized as a component of selling, general and administrative expenses when the Company does not bill the customer. See to Note 13, “Segments,” for information regarding disaggregation of revenue, including revenue by product and by geographic area. Performance Obligations The Company primarily satisfies its performance obligations at a point in time, which is upon delivery of products. The Company’s payment terms vary by the type and location of its customers. The amount of time between point of sale and when payment is due is not significant and the Company has determined its contracts do not include a significant financing component. Product warranties do not constitute a performance obligation for the Company, as products are warrantied directly by the manufacturer. Our contracts with customers involve performance obligations that are one year or less. Therefore, we applied the standard’s optional exemption that permits the omission of information about our unfulfilled performance obligations as of the balance sheet dates. Significant Judgements The Company’s contracts may include terms that could cause variability in the transaction price, including customer rebates, returns and cash discounts for early payment. Variable consideration is estimated and included in total consideration based on the expected value method. These estimates are based on historical experience, anticipated performance and other factors known at the time. The Company only includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Contract Balances Receivables from contracts with customers were $445.1 million and $326.6 million as of July 31, 2018 and May 1, 2018, respectively. The Company did not have material amounts of contract assets or liabilities as of July 31, 2018 or May 1, 2018.

Business Acquisitions

Business Acquisitions	3 Months Ended
	Jul. 31, 2018
Business Acquisitions
Business Acquisitions	3. Business Acquisitions The Company accounts for business combinations by recognizing the assets acquired and liabilities assumed at the acquisition date fair value. In valuing acquired assets and liabilities, fair value estimates use Level 3 inputs, including future expected cash flows and discount rates. Goodwill is measured as the excess of consideration transferred over the fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, the Company’s estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments arising from new facts and circumstances are recorded to the Condensed Consolidated Statements of Operations and Comprehensive Income. The results of operations of acquisitions are reflected in the Company’s Condensed Consolidated Financial Statements from the date of acquisition. Acquisition of Titan On June 1, 2018, the Company acquired all of the outstanding equity interests of WSB Titan (“Titan”) , a distributer of drywall, lumber, commercial and residential building materials. Titan is a gypsum specialty dealer with 30 locations across five provinces in Canada. T he stated purchase price was $627.0 million (C$800.0 million), subject to a working capital and certain other adjustments as set forth in the securities purchase agreement. As part of the consideration, certain members of Titan’s management converted a portion of their ownership position into 1.1 million shares of equity that are exchangeable for the Company’s common stock (“Exchangeable Shares”). The purpose of the transaction is to extend the Company’s leadership position in North America with expanded scale and footprint, expand its geographic coverage into the Canadian market and create opportunities for further expansion in Canada. To finance this transaction, on June 1, 2018, the Company entered into a Third Amendment to its First Lien Credit Agreement (the “Third Amendment”) that provides for a new first lien term loan facility under the first lien credit agreement in the aggregate principal amount of $996.8 million due in June 2025 that bears interest at a floating rate based on LIBOR , with a 0% floor, plus 2.75%. The Company also drew down $143.0 million under its Asset Backed Lending Facility (“ABL Facility”) . The net proceeds from the new first lien term loan facility, ABL Facility and cash on hand were used to repay the Company’s existing first lien term loan facility of $571.8 million under the Credit Agreement and to finance its acquisition of Titan . The fair value of consideration transferred was $614.2 million, after adjusting for foreign currency changes in the stated purchase price and other fair value changes, which consisted of $581.0 million in cash and $33.2 million for the fair value of the 1.1 million Exchangeable Shares . See Note 7, “Shareholders’ Equity,” for more information on the Exchangeable Shares. The Company also assumed certain contingent consideration arrangements that relate to previous acquisitions of Titan. The contingent consideration arrangements are based on performance of Titan’s business and are payable in cash in fiscal 2019 and fiscal 2020. The assets acquired and liabilities assumed of Titan were recognized at their acquisition date fair values. The purchase price allocation is subject to change as the Company obtains additional information during the measurement period about the facts and circumstances that existed as of the acquisition date. The primary areas of the preliminary purchase price allocation that are not yet finalized relate to working capital adjustments, the finalization of preliminary fair value estimates, income taxes and residual goodwill. The following table summarizes the preliminary allocation of the consideration transferred based on currently available information (in thousands): Cash $ 5,573 Trade accounts and notes receivable 84,039 Inventories 60,272 Prepaid and other current assets 8,334 Property and equipment 37,263 Goodwill 196,524 Intangible assets 289,423 Accounts payable and accrued expenses (40,833) Contingent consideration (12,039) Deferred income taxes (14,337) Fair value of consideration transferred $ 614,219 Goodwill arising from the acquisition is attributable to synergies achieved through the streamlining of operations combined with improved margins attainable through increased market presence. All of the goodwill will be assigned to the Company’s geographic divisions segment. The goodwill is not expected to be deductible for income tax purposes. Trade accounts and notes receivable had a preliminary estimate of fair value of $84.0 million and a gross contractual value of $85.6 million. The difference represents the Company’s best estimate of the contractual cash flows that will not be collected. The following table summarizes the preliminary components of intangible assets acquired in connection with the acquisition of Titan (dollars in thousands): Weighted Average Amortization Fair Value Period (Years) Customer relationships $ 250,041 13 Tradenames 30,098 15 Developed technology 5,402 5 Non-compete agreements 3,010 3 Other 872 3 Total intangible assets $ 289,423 Net sales related to the Titan business included in the Company’s Condensed Consolidated Statement of Operations and Comprehensive Income for the three months ended July 31, 2018 was $87.4 million. Net income related to the Titan business included in the Company’s Condensed Consolidated Statement of Operations and Comprehensive Income for the three ended July 31, 2018 was $0.4 million. The following table represents the unaudited pro forma consolidated net sales and net income for the Company for the periods indicated (in thousands): Three Months Ended July 31, 2018 2017 Net sales $ 820,813 $ 767,834 Net income 8,367 17,236 The above pro forma results have been calculated by combining the historical results of the Company and Titan as if the acquisition of Titan had occurred on May 1, 2017, the first day of the comparable prior reporting period presented. The pro forma results include estimates for intangible asset amortization, depreciation, interest expense and debt issuance costs and are subject to change once final asset values have been determined. No other material pro forma adjustments were deemed necessary to conform to the Company’s accounting policies or for any other situation. The pro forma information is not necessarily indicative of the results that would have been achieved had the transactions occurred on the first day of each of the periods presented or that may be achieved in the future.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Jul. 31, 2018
Goodwill and Intangible Assets
Goodwill and Intangible Assets	4. Goodwill and Intangible Assets Goodwill The following table presents changes in the carrying amount of goodwill during the three months ended July 31, 2018: Carrying Amount (in thousands) Balance as of April 30, 2018 $ 427,645 Goodwill acquired 196,524 Purchase price adjustments 73 Translation adjustment (1,042) Balance as of July 31, 2018 $ 623,200 Intangible Assets The following tables present the components of the Company’s definite-lived intangible assets as of July 31, 2018 and April 30, 2018: Estimated Weighted July 31, 2018 Useful Average Gross Net Lives Amortization Carrying Accumulated Carrying (years) Period Amount Amortization Value (dollars in thousands) Customer relationships 5 - 13 11.9 $ 531,165 $ 164,486 $ 366,679 Definite-lived tradenames 5 - 20 16.3 56,176 4,314 51,862 Vendor agreements 8 - 10 8.3 6,644 3,157 3,487 Developed technology 5 4.9 5,371 182 5,189 Leasehold interests 1 - 15 7.6 3,733 987 2,746 Other 3 - 5 3.3 3,514 258 3,256 Totals $ 606,603 $ 173,384 $ 433,219 Estimated Weighted April 30, 2018 Useful Average Gross Net Lives Amortization Carrying Accumulated Carrying (years) Period Amount Amortization Value (dollars in thousands) Customer relationships 5 - 13 10.9 $ 282,547 $ 150,081 $ 132,466 Definite-lived tradenames 5 - 20 18.0 26,250 3,578 22,672 Vendor agreement 8 - 10 8.3 6,644 2,956 3,688 Leasehold interests 7 - 15 9.0 2,866 832 2,034 Other 5 5.0 521 66 455 Totals $ 318,828 $ 157,513 $ 161,315 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 $15.7 million and $10.4 million for the three months ended July 31, 2018 and 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 $56.7 million during the remaining nine months in the year ending April 30, 2019 and $67.5 million, $58.4 million, $49.2 million, $41.2 million and $160.2 million during the years ending April 30, 2020, 2021, 2022, 2023 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, foreign currency exchange rate fluctuations 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 July 31, 2018 and April 30, 2018.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Jul. 31, 2018
Long-Term Debt
Long-Term Debt	5. Long-Term Debt The Company’s long‑term debt consisted of the following as of July 31, 2018 and April 30, 2018: July 31, April 30, 2018 2018 (in thousands) First Lien Term Loan (1) (2) $ 978,334 $ 563,179 ABL Facility 215,401 — Capital lease obligations, at an annual rate of 5.50%, due in monthly installments through 2025 93,686 18,564 Installment notes at fixed rates up to 5.0%, due in monthly and annual installments through 2023 (3) 16,219 14,143 Carrying value of debt 1,303,640 595,886 Less current portion 34,317 16,284 Long-term debt $ 1,269,323 $ 579,602 (1) Net of unamortized discount of $2,420 and $2,536 as of July 31, 2018 and April 30, 2018, respectively. (2) Net of deferred financing costs of $13,594 and $6,125 as of July 31, 2018 and April 30, 2018, respectively. (3) Net of unamortized discount of $1,462 and $1,534 as of July 31, 2018 and April 30, 2018, respectively. First Lien Term Loan The Company has a senior secured first lien term loan facility (the "First Lien Facility") that consists of a First Lien Term Loan (the "First Term Loan"). On June 7, 2017, the Company entered into the Second Amendment to First Lien Credit Agreement, dated April 1, 2014 (the “First Lien Credit Agreement”) (the “Second Amendment”), which amended the First Lien Credit Agreement (as previously amended and as supplemented from time to time). The Second Amendment provided 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 plus 3.00%, with a 1.00% floor. Net proceeds were used to repay the outstanding balance of approximately $477.6 million under the existing First Lien Loan and approximately $94.0 million of loans under the Company’s 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 three months ended July 31, 2017. On June 1, 2018, the Company entered into the Third Amendment that provided for a new first lien term loan facility under the First Lien Credit Agreement in the aggregate principal amount of $996.8 million due in June 2025 that bears interest at a floating rate based on LIBOR plus 2.75%, with a 0% floor . The net proceeds from the new first lien term loan facility were used to repay the Company’s existing First Lien Loan outstanding balance of approximately $571.8 million and to finance the acquisition of Titan. As of July 31, 2018, the applicable rate of interest was 4.83 %. Asset Based Lending Facility The Company has an asset based revolving 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. 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 July 31, 2018, the applicable rate of interest was 4.09%. 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 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 July 31, 2018. The ABL Facility contains certain affirmative covenants, including financial and other reporting requirements. The Company was in compliance with all such covenants as of July 31, 2018. Titan Revolving Credit Facility In connection with the acquisition of Titan on June 1, 2018, the Company assumed Titan’s revolving credit facility (the “Titan Facility”) that provides for aggregate revolving commitments of C$105.0 million. The Titan Facility bears interest at the Canadian prime rate plus a marginal rate based on the level determined by Titan’s total debt to EBITDA ratio at the end of the most recently completed fiscal quarter or year. As of July 31, 2018, no amounts were outstanding under the Titan Facility and the Company had available borrowing capacity of approximately C$105.0 million under the Titan Facility. The Titan Facility matures on June 28, 2022. Capital Leases During the three months ended July 31, 2018, the Company amended certain terms of its operating lease agreements for equipment. The amendments would have resulted in capital lease classification of the leases under lease classification criteria had the changed terms been in effect at lease inception. As such, the amended agreements were considered new agreements. The new lease agreements were classified as capital leases as of the date of the modifications based on the application of lease classification criteria . As a result, the Company recorded $70.0 million of capital lease assets and capital lease liabilities in its Condensed Consolidated Balance Sheet during the three months ended July 31, 2018 . Debt Maturities As of July 31, 2018, the maturities of long‑term debt were as follows First Lien ABL Capital Installment Term Loan(1) Facility Leases Notes(2) Total Years ending April 30, (in thousands) 2019 (remaining nine months) $ 7,476 $ — $ 13,597 $ 3,544 $ 24,617 2020 9,968 — 27,589 3,794 41,351 2021 9,968 — 23,634 3,490 37,092 2022 9,968 215,401 19,186 3,055 247,610 2023 9,968 — 7,794 3,023 20,785 Thereafter 947,000 — 1,886 775 949,661 $ 994,348 $ 215,401 $ 93,686 $ 17,681 $ 1,321,116 (1) (2)

Income Taxes

Income Taxes	3 Months Ended
	Jul. 31, 2018
Income Taxes
Income Taxes	6. Income Taxes The Company’s effective income tax rate on continuing operations for the three months ended July 31, 2018 was 24.7% compared to an effective income tax rate of 39.6% for the three months ended July 31, 2017. The decrease in the effective income tax rate was primarily due to the impact of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), the impact of foreign tax rates and other tax effects associated with the acquisition of Titan. The federal statutory rates for the United States and Canada were 21.0% and 26.8%, respectively. 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 July 31, 2018, we estimated the dates when such realization or settlement would occur. The actual dates when such realization or settlement occurs may be different from our estimates, pending finalization of our fiscal year 2018 tax return, which could result in the ultimate revaluation of our deferred income taxes to be different from our provisional amounts. As of July 31, 2018, there have been no changes to the provisional estimates previously recorded under the guidance issued by SEC’s Staff Accounting Bulletin No. 118 (“SAB 118”). 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. Due to the acquisition of Titan, the Company in now subject to provisions of the Tax Act related to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. We have elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. In general, it is the practice and intention of the Company to reinvest the accumulated earnings of its non-U.S. subsidiaries in those operations. Foreign withholding taxes have not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested outside the United States. The Company had valuation allowances of $0.4 million against its deferred tax assets related to certain tax jurisdictions as of July 31, 2018 and April 30, 2018. 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 reserve for uncertain tax positions as of July 31, 2018 and April 30, 2018.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Jul. 31, 2018
Stockholders’ Equity
Stockholders’ Equity	7. Stockholders’ Equity Accumulated Other Comprehensive Income (Loss) The following table sets forth the changes to accumulated other comprehensive income (loss), net of tax, by component for the three months ended July 31, 2018: Accumulated Other Comprehensive Income (Loss) (in thousands) Accumulated other comprehensive income as of April 30, 2018 $ 441 Foreign currency translation adjustments (3,791) Other comprehensive loss on interest rate cap (237) Reclassification to earnings from accumulated other comprehensive income for interest rate cap 350 Accumulated other comprehensive loss as of July 31, 2018 $ (3,237) Exchangeable Shares In connection with the acquisition of Titan on June 1, 2018, the Company issued 1.1 million Exchangeable Shares. The Exchangeable Shares were issued by an indirect wholly-owned subsidiary of the Company. The Exchangeable Shares rank senior to the Company’s common stock with respect to dividend rights and rights on liquidation, dissolution and winding-up. The holders of the Exchangeable Shares are entitled to receive dividends or distributions that are equal to any dividends or distributions on the Company’s common stock. The holders of the Exchangeable Shares do not have voting rights. The Exchangeable Shares contain rights that allow the holders to exchange their Exchangeable Shares for GMS common stock at any time on a one-for-one basis. If converted, the holders are prevented from transferring such GMS common stock for one year from the Titan acquisition date. The Exchangeable Shares also contain rights that allow the Company, through its indirect wholly-owned subsidiary, to convert the Exchangeable Shares into GMS common stock on or after the fifth anniversary of the initial issuance of the Exchangeable Shares or upon certain events, as defined in the agreement.

Equity-Based Compensation

Equity-Based Compensation	3 Months Ended
	Jul. 31, 2018
Equity-Based Compensation
Equity-Based Compensation	8. 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 stockholders 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 July 31, 2018 . The Company intends to use authorized and unissued shares to satisfy share award exercises. 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. Equity-based compensation expense related to stock options and restricted stock units was $0.4 million and $0.5 million during the three months ended July 31, 2018 and 2017, respectively, and is included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income. Stock Option Awards The following table presents stock option activity for the three months ended July 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 April 30, 2018 1,952 $ 14.37 6.52 $ 33,209 Options granted — — Options exercised (35) 12.31 Options forfeited (2) 37.49 Options expired — — Outstanding as of July 31, 2018 1,915 $ 14.39 6.36 $ 25,046 Exercisable as of July 31, 2018 1,701 $ 13.04 6.15 $ 23,907 Vested and expected to vest as of July 31, 2018 1,910 $ 14.35 6.35 $ 25,030 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 three months ended July 31, 2018 was $0.5 million. There were no stock option exercises during the three months ended July 31, 2017 . As of July 31, 2018 , there was $0.9 million of total unrecognized compensation cost related to stock options. That cost is expected to be recognized over a weighted-average period of 2.0 years. There were no stock options granted during the three months ended July 31, 2018 and 2017. Restricted Stock Units The following table presents restricted stock unit activity for the three months ended July 31, 2018: Weighted Number of Average Restricted Exercise Stock Units Price Outstanding as of April 30, 2018 21,766 $ 37.49 Granted — — Vested (655) 37.49 Forfeited — — Outstanding as of July 31, 2018 21,111 $ 37.49 As of July 31, 2018, there was $0.6 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 2.4 years.

Stock Appreciation Rights, Defe

Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests	3 Months Ended
	Jul. 31, 2018
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests	9. Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests The following table presents a summary of changes to the liabilities for stock appreciation rights, deferred compensation and redeemable noncontrolling interests for the three months ended July 31, 2018: Stock Redeemable Appreciation Deferred Noncontrolling Rights Compensation Interests (in thousands) Balance as of April 30, 2018 $ 21,944 $ 2,222 $ 16,170 Amounts redeemed — (689) (2,444) Change in fair value 334 66 465 Balance as of July 31, 2018 $ 22,278 $ 1,599 $ 14,191 Classified as current as of April 30, 2018 $ 308 $ 133 $ 463 Classified as long-term as of April 30, 2018 21,636 2,089 15,707 Classified as current as of July 31, 2018 $ 800 $ 4 $ 1,418 Classified as long-term as of July 31, 2018 21,478 1,595 12,773 Total expense related to these instruments was $0.9 million and $1.5 million during the three months ended July 31, 2018 and 2017, respectively, and was included in selling, general and administrative expenses in the Condensed Consolidated Statements 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 July 31, 2018, all stock appreciation rights were vested. Deferred Compensation Subsidiaries’ stockholders have entered into other deferred compensation agreements that granted the stockholders 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 over the five years following termination of employment. Redeemable Noncontrolling Interests Noncontrolling interests were issued to certain employees of the 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, generally paid in annual installments over the five years following termination of employment. Liabilities related to these agreements are classified as share-based liability awards and are measured at intrinsic value. Intrinsic value is determined to be the stated redemption value of the shares. Under the terms of the employee agreements, the redemption value is determined based on the book value of the subsidiary, as adjusted for certain items. 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.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jul. 31, 2018
Fair Value Measurements
Fair Value Measurements	10. Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the estimated carrying amount and fair value of the Company’s assets and liabilities measured at fair value on a recurring basis as of July 31, 2018 and April 30, 2018: July 31, April 30, 2018 2018 (in thousands) Assets: Interest rate cap (Level 2) $ 239 $ 543 Liabilities: Forward currency forward (Level 2) $ — $ 5,108 Stock appreciation rights (Level 3) 22,278 21,944 Deferred compensation (Level 3) 1,599 2,222 Noncontrolling interest holders (Level 3) 14,191 16,170 Contingent consideration (Level 3) 12,200 — Derivative instruments . The fair value of derivative instruments is determined using Level 2 inputs. Generally, the Company obtains the Level 2 inputs from its counterparties. Substantially all of the inputs are observable in the marketplace throughout the full term of the instruments, which can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. The fair value of the Company’s interest rate cap is determined using widely accepted valuation techniques including a discounted cash flow analysis on the expected cash flows of the derivative. This analysis reflected the contractual terms of the derivatives, including the period to maturity, and used observable market‑based inputs, including interest rate curves and implied volatilities. The fair value of the Company’s forward currency forward contract is based on observable market inputs, such as forward rates in active markets. During the three months ended July 31, 2018, the Company recognized a $5.7 million loss on the change in fair value of its foreign currency forward contract, which was settled upon the acquisition on Titan . The loss is included within change in fair value of financial instruments in the Condensed Consolidated Statement of Operations and Comprehensive Income. Stock appreciation rights, deferred compensation and redeemable noncontrolling interests . The fair values of stock appreciation rights, deferred compensation and redeemable noncontrolling interests are determined using 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. See Note 9, “Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests,” for a reconciliation of the beginning and ending balances. Contingent consideration . The fair value of contingent consideration is determined using Level 3 inputs. These inputs include a discount rate and probability adjusted payments. In connection with the acquisition of Titan, t he Company assumed certain contingent consideration arrangements that had an estimated fair value of $12.0 million. During the three months ended July 31, 2018, t he Company recorded expense of $0.2 million related to the contingent consideration, which was included in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations and Comprehensive Income. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Disclosures are required for certain assets and liabilities that are measured at fair value on a nonrecurring basis in periods subsequent to initial recognition. Such measurements of fair value relate primarily to assets and liabilities measured at fair value in connection with business combinations and long-lived asset impairments. For more information on business combinations, see Note 3, “Business Acquisitions.” There were no material long-lived asset impairments during the three months ended July 31, 2018 or 2017.

Transactions With Related Parti

Transactions With Related Parties	3 Months Ended
	Jul. 31, 2018
Transactions With Related Parties
Transactions With Related Parties	11. Transactions With Related Parties The Company leases office and warehouse facilities from partnerships or entities owned by certain executive officers and stockholders of GMS Inc. and its subsidiaries. As of July 31, 2018, these leases had expiration dates through fiscal 2025. Rent expense related to these leases was $0.2 million and $0.2 million for the three months ended July 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 executive officers and 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 $3.4 million and $3.5 million during the three months ended July 31, 2018 and 2017, respectively. Amounts due to SWP for purchases of inventory for distribution were $1.1 million and $1.2 million as of July 31, 2018 and April 30, 2018, respectively, and are included in accounts payable in the Condensed Consolidated Balance Sheets.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jul. 31, 2018
Commitments and Contingencies
Commitments and Contingencies	12. 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	3 Months Ended
	Jul. 31, 2018
Segments
Segments	13. Segments General The Company has seven 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 seven operating segments based on the Company’s seven geographic divisions, which are Central, Midwest, Northeast, Southern, Southeast, Western and Canada. On June 1, 2018, the Company acquired Titan, which resulted in the addition of a new operating segment. 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. 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 months ended July 31, 2018 and 2017: Three Months Ended July 31, 2018 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 771,550 $ 242,575 $ 25,855 $ 74,595 Other 6,594 2,241 58 677 Corporate — — 409 — $ 778,144 $ 244,816 $ 26,322 $ 75,272 Three Months Ended July 31, 2017 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 636,367 $ 203,024 $ 16,026 $ 52,227 Other 5,790 2,080 64 525 Corporate — — 255 — $ 642,157 $ 205,104 $ 16,345 $ 52,752 The following table presents a reconciliation of Adjusted EBITDA to net income for the three months ended July 31, 2018 and 2017: Three Months Ended July 31, 2018 2017 (in thousands) Net income $ 8,650 $ 15,343 Interest expense 16,188 7,500 Write-off of debt discount and deferred financing fees — 74 Interest income (236) (23) Income tax expense 2,836 10,060 Depreciation expense 10,610 5,990 Amortization expense 15,712 10,355 Stock appreciation expense(a) 334 590 Redeemable noncontrolling interests(b) 531 866 Equity-based compensation(c) 404 473 Severance and other permitted costs(d) 4,836 205 Transaction costs (acquisitions and other)(e) 4,753 159 Gain on sale of assets (121) (390) Effects of fair value adjustments to inventory(f) 4,129 — Change in fair value of financial instruments(g) 6,019 196 Secondary public offering costs(h) — 631 Debt transaction costs(i) 627 723 Adjusted EBITDA $ 75,272 $ 52,752 (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 acquisitions paid to third party advisors. (f) Represents the non‑cash cost of sales impact of purchase accounting adjustments to increase inventory to its estimated fair value. (g) Represents the mark‑to‑market adjustments for derivative financial instruments. (h) Represents one-time costs related to our secondary offering paid to third-party advisors. (i) Represents costs paid to third party advisors related to debt refinancing activities. Revenues by Product The following table presents the Company’s net sales to external customers by main product lines for the three months ended July 31, 2018 and 2017: Three Months Ended July 31, 2018 2017 (in thousands) Wallboard $ 317,735 $ 284,657 Ceilings 115,855 99,710 Steel framing 129,112 104,651 Other products 215,442 153,139 Total net sales $ 778,144 $ 642,157 Geographic Information The following table presents the Company’s net sales by major geographic area for the three months ended July 31, 2018 and 2017: Three Months Ended July 31, 2018 2017 (in thousands) United States $ 690,731 $ 642,157 Canada 87,413 — Total net sales $ 778,144 $ 642,157 The following table presents the Company’s long-lived assets by major geographic area as of July 31, 2018 and April 30, 2018: July 31, April 30, 2018 2018 (in thousands) United States $ 878,415 $ 813,909 Canada 513,891 — Total long-lived assets $ 1,392,306 $ 813,909

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Jul. 31, 2018
Earnings Per Common Share
Earnings Per Common Share	14. Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per share of common stock for the three months ended July 31, 2018 and 2017: Three Months Ended July 31, 2018 2017 (in thousands, except per share data) Net income $ 8,650 $ 15,343 Less: Net income allocated to participating securities 156 — Net income attributable to common stockholders $ 8,494 $ 15,343 Basic earnings per common share: Basic weighted average common shares outstanding 41,094 40,971 Basic earnings per common share $ 0.21 $ 0.37 Diluted earnings per common share: Basic weighted average common shares outstanding 41,094 40,971 Add: Common Stock Equivalents 980 1,157 Diluted weighted average common shares outstanding 42,074 42,128 Diluted earnings per common share $ 0.20 $ 0.36

Business, Basis of Presentati20

Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jul. 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 any other interim period or the entire fiscal 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, 2018.
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.
Foreign Currency Translation	Foreign Currency Translation Assets and liabilities of the Company’s Canadian subsidiaries are translated at the exchange rate prevailing at the balance sheet date, while income and expenses are translated at average rates for the period. Translation gains and losses are reported as a separate component of equity and other comprehensive income (loss). Gains and losses on foreign currency transactions are recognized in the Condensed Consolidated Statement of Operations and Comprehensive Income within other income, net.
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 July 31, 2018 and April 30, 2018, the aggregate liabilities for medical self‑insurance were $3.8 million and $4.1 million, respectively, and are included in other accrued expenses and current liabilities in the Condensed Consolidated Balance Sheets. As of July 31, 2018 and April 30, 2018, reserves for general liability, workers’ compensation and automobile totaled approximately $16.4 million and $14.7 million, respectively, and are included in other accrued expenses and current liabilities and other liabilities in the Condensed Consolidated Balance Sheets. As of July 31, 2018 and April 30, 2018, expected recoveries for medical self‑insurance, general liability, automobile and workers’ compensation totaled approximately $6.6 million and $4.8 million, respectively, and are included in prepaid expenses and other current assets and other assets in the Condensed Consolidated Balance Sheets.
Restructuring	Restructuring The Company recognizes a liability for costs associated with an exit or disposal activity when the liability is incurred. After the appropriate level of management, having the authority, approves the detailed restructuring plan and the appropriate criteria for recognition are met, the Company establishes accruals for employee termination and other costs, as applicable. During the three months ended July 31, 2018, the Company initiated a reduction in workforce as part of a strategic cost reduction plan to improve operational efficiency. The Company recorded $4.8 million of restructuring costs during the three months ended July 31, 2018 in connection with the reduction in workforce, consisting primarily of severance and other employee costs. Such costs are classified within selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income. The Company made payments of $1.7 million during the three months ended July 31, 2018. As of July 31, 2018, the Company had a remaining liability of $3.1 million, which was classified within other accrued expenses and current liabilities in the Condensed Consolidated Balance Sheet . The Company expects to make cash payments to settle the remaining liability within the next twelve months.
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 defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Authoritative guidance for fair value measurements establishes a three‑level hierarchy that prioritizes the inputs to valuation models based upon the degree to which they are observable. The three levels of the fair value measurement hierarchy are as follows: Level 1 Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 Inputs are unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying values of the Company’s cash, cash equivalents, trade receivables and trade payables approximate their fair values because of their short‑term nature . Based on borrowing rates available to the Company for loans with similar terms, the carrying values of the Company’s debt instruments approximate fair value. See Note 10, “Fair Value Measurements,” for additional information with respect to the Company’s fair value measurements.
Earnings Per Share	Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders 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 and the amount of compensation cost attributed to future services and not yet recognized. 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. The holders of the Company’s Exchangeable Shares (as defined in Note 3, “Business Acquisitions” and further described in Note 7, “Stockholders’ Equity”) are entitled to receive dividends or distributions that are equal to any dividends or distributions on the Company’s common stock. As a result, the Exchangeable Shares are classified as a participating security and thereby require the allocation of income that would have otherwise been available to common stockholders when calculating earnings per share. Diluted earnings per share is calculated by utilizing the most dilutive result of the if-converted and two-class methods. In both methods, net income attributable to common shareholders and the weighted-average common shares outstanding are adjusted to account for the impact of the assumed issuance of potential common shares that are dilutive, subject to dilution sequencing rules.
Recent Accounting Pronouncements	Recently Adopted 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 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 adopted this guidance on May 1, 2018 (the first day of fiscal 2019) using the modified retrospective approach. The adoption of the new guidance, using the modified retrospective approach, did not have a material impact on the Company’s financial statements. The adoption of the new guidance resulted in a $3.6 million reclassification in the Condensed Consolidated Balance Sheet from trade accounts and notes receivable to other accrued expenses and current liabilities for estimated sales returns. The adoption of the new revenue guidance also resulted in additional disclosures regarding the Company’s revenue recognition. The additional disclosures required by this new standard are contained in Note 2, “Revenue.” Statement of Cash Flows – In August 2016, the FASB issued new guidance to reduce diversity in practice related to certain cash receipts and payment in the statement of cash flows by adding or clarifying guidance on eight specific cash flow issues. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 . Early adoption is permitted. The Company adopted this guidance on May 1, 2018 (the first day of fiscal 2019). As a result of the adoption, the Company now classifies cash payments for debt prepayment or debt extinguishment costs, including third-party costs and other fees paid to lenders that are directly related to the debt prepayment or debt extinguishment, as cash outflows for financing activities. This resulted in a $2.7 million reclass from cash (used in) provided by operating activities (specifically the line item changes in other accrued expenses and current liabilities) to cash provided by financing activities (specifically the line item debt issuance costs) in the Condensed Consolidated Statement of Cash Flows for the three months ended July 31, 2017. The adoption did not have any other material impact on the Company’s financial statements. Income Taxes – In October 2016, the FASB issued new guidance intended to improve the accounting for intra-entity transfers of assets other than inventory by requiring recognition of income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs. The new guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. The amendments in this update should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted this guidance on May 1, 2018 (the first day of fiscal 2019) with no material impact on its financial statements. Recently Issued Accounting Pronouncements 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 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. On July 30, 2018, the FASB issued new guidance that provides entities with an additional (and optional) transition method to adopt the new lease standard. Under this new transition method, an entity initially applies the new lease standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We have not yet determined whether we will use the newly permitted adoption method. Goodwill – In January 2017, the FASB issued authoritative guidance that simplifies the accounting for goodwill impairments by eliminating Step 2 from the goodwill impairment test . Under the new guidance, goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value. The new standard is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its financial statements. Accumulated Other Comprehensive Income – I n February 2018, the FASB issued authoritative guidance which permits entities to reclassify, to retained earnings, the one-time income tax effects stranded in accumulated other comprehensive income arising from the change in the U.S. federal corporate tax rate as a result of the Tax Cuts and Jobs Act of 2017. An entity that elects to make this reclassification must consider all items in accumulated other comprehensive income that have tax effects stranded as a result of the tax rate change, and must disclose the reclassification of these tax effects as well as the entity’s policy for releasing income tax effects from accumulated other comprehensive income. The new guidance may be applied either retrospectively or as of the beginning of the period of adoption. The new guidance is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company plans to adopt this guidance on May 1, 2019 (the first day of fiscal 2020). While this guidance will have no impact on the Company’s results of operations, the Company is currently assessing this standard’s impact on its consolidated financial position.

Business Acquisitions (Tables)

Business Acquisitions (Tables) - Titan	3 Months Ended
	Jul. 31, 2018
Acquisition of Titan
Schedule of preliminary allocation of the consideration transferred	The following table summarizes the preliminary allocation of the consideration transferred based on currently available information (in thousands): Cash $ 5,573 Trade accounts and notes receivable 84,039 Inventories 60,272 Prepaid and other current assets 8,334 Property and equipment 37,263 Goodwill 196,524 Intangible assets 289,423 Accounts payable and accrued expenses (40,833) Contingent consideration (12,039) Deferred income taxes (14,337) Fair value of consideration transferred $ 614,219
Schedule of preliminary components of intangible assets acquired	The following table summarizes the preliminary components of intangible assets acquired in connection with the acquisition of Titan (dollars in thousands): Weighted Average Amortization Fair Value Period (Years) Customer relationships $ 250,041 13 Tradenames 30,098 15 Developed technology 5,402 5 Non-compete agreements 3,010 3 Other 872 3 Total intangible assets $ 289,423
Schedule of unaudited pro forma consolidated net sales and net income	The following table represents the unaudited pro forma consolidated net sales and net income for the Company for the periods indicated (in thousands): Three Months Ended July 31, 2018 2017 Net sales $ 820,813 $ 767,834 Net income 8,367 17,236

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Jul. 31, 2018
Goodwill and Intangible Assets
Schedule of changes in the carrying amount of goodwill	Carrying Amount (in thousands) Balance as of April 30, 2018 $ 427,645 Goodwill acquired 196,524 Purchase price adjustments 73 Translation adjustment (1,042) Balance as of July 31, 2018 $ 623,200
Schedule of components of definite-lived intangible assets	Estimated Weighted July 31, 2018 Useful Average Gross Net Lives Amortization Carrying Accumulated Carrying (years) Period Amount Amortization Value (dollars in thousands) Customer relationships 5 - 13 11.9 $ 531,165 $ 164,486 $ 366,679 Definite-lived tradenames 5 - 20 16.3 56,176 4,314 51,862 Vendor agreements 8 - 10 8.3 6,644 3,157 3,487 Developed technology 5 4.9 5,371 182 5,189 Leasehold interests 1 - 15 7.6 3,733 987 2,746 Other 3 - 5 3.3 3,514 258 3,256 Totals $ 606,603 $ 173,384 $ 433,219 Estimated Weighted April 30, 2018 Useful Average Gross Net Lives Amortization Carrying Accumulated Carrying (years) Period Amount Amortization Value (dollars in thousands) Customer relationships 5 - 13 10.9 $ 282,547 $ 150,081 $ 132,466 Definite-lived tradenames 5 - 20 18.0 26,250 3,578 22,672 Vendor agreement 8 - 10 8.3 6,644 2,956 3,688 Leasehold interests 7 - 15 9.0 2,866 832 2,034 Other 5 5.0 521 66 455 Totals $ 318,828 $ 157,513 $ 161,315

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Jul. 31, 2018
Long-Term Debt
Schedule of long-term debt	July 31, April 30, 2018 2018 (in thousands) First Lien Term Loan (1) (2) $ 978,334 $ 563,179 ABL Facility 215,401 — Capital lease obligations, at an annual rate of 5.50%, due in monthly installments through 2025 93,686 18,564 Installment notes at fixed rates up to 5.0%, due in monthly and annual installments through 2023 (3) 16,219 14,143 Carrying value of debt 1,303,640 595,886 Less current portion 34,317 16,284 Long-term debt $ 1,269,323 $ 579,602 (1) Net of unamortized discount of $2,420 and $2,536 as of July 31, 2018 and April 30, 2018, respectively. (2) Net of deferred financing costs of $13,594 and $6,125 as of July 31, 2018 and April 30, 2018, respectively. (3) Net of unamortized discount of $1,462 and $1,534 as of July 31, 2018 and April 30, 2018, respectively.
Scheduled principal payments of long-term debt	First Lien ABL Capital Installment Term Loan(1) Facility Leases Notes(2) Total Years ending April 30, (in thousands) 2019 (remaining nine months) $ 7,476 $ — $ 13,597 $ 3,544 $ 24,617 2020 9,968 — 27,589 3,794 41,351 2021 9,968 — 23,634 3,490 37,092 2022 9,968 215,401 19,186 3,055 247,610 2023 9,968 — 7,794 3,023 20,785 Thereafter 947,000 — 1,886 775 949,661 $ 994,348 $ 215,401 $ 93,686 $ 17,681 $ 1,321,116 (1) (2)

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Jul. 31, 2018
Stockholders’ Equity
Schedule of changes to accumulated other comprehensive income (loss), net of tax, by component	Accumulated Other Comprehensive Income (Loss) (in thousands) Accumulated other comprehensive income as of April 30, 2018 $ 441 Foreign currency translation adjustments (3,791) Other comprehensive loss on interest rate cap (237) Reclassification to earnings from accumulated other comprehensive income for interest rate cap 350 Accumulated other comprehensive loss as of July 31, 2018 $ (3,237)

Equity-Based Compensation - (Ta

Equity-Based Compensation - (Tables)	3 Months Ended
	Jul. 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 April 30, 2018 1,952 $ 14.37 6.52 $ 33,209 Options granted — — Options exercised (35) 12.31 Options forfeited (2) 37.49 Options expired — — Outstanding as of July 31, 2018 1,915 $ 14.39 6.36 $ 25,046 Exercisable as of July 31, 2018 1,701 $ 13.04 6.15 $ 23,907 Vested and expected to vest as of July 31, 2018 1,910 $ 14.35 6.35 $ 25,030
Summary of restricted stock unity activity	Weighted Number of Average Restricted Exercise Stock Units Price Outstanding as of April 30, 2018 21,766 $ 37.49 Granted — — Vested (655) 37.49 Forfeited — — Outstanding as of July 31, 2018 21,111 $ 37.49

Stock Appreciation Rights, De26

Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests (Tables)	3 Months Ended
	Jul. 31, 2018
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests
Summary of changes to liability for equity based compensation arrangements	Stock Redeemable Appreciation Deferred Noncontrolling Rights Compensation Interests (in thousands) Balance as of April 30, 2018 $ 21,944 $ 2,222 $ 16,170 Amounts redeemed — (689) (2,444) Change in fair value 334 66 465 Balance as of July 31, 2018 $ 22,278 $ 1,599 $ 14,191 Classified as current as of April 30, 2018 $ 308 $ 133 $ 463 Classified as long-term as of April 30, 2018 21,636 2,089 15,707 Classified as current as of July 31, 2018 $ 800 $ 4 $ 1,418 Classified as long-term as of July 31, 2018 21,478 1,595 12,773

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Jul. 31, 2018
Fair Value Measurements
Schedule of assets and liabilities measured at fair value on a recurring basis	July 31, April 30, 2018 2018 (in thousands) Assets: Interest rate cap (Level 2) $ 239 $ 543 Liabilities: Forward currency forward (Level 2) $ — $ 5,108 Stock appreciation rights (Level 3) 22,278 21,944 Deferred compensation (Level 3) 1,599 2,222 Noncontrolling interest holders (Level 3) 14,191 16,170 Contingent consideration (Level 3) 12,200 —

Segments (Tables)

Segments (Tables)	3 Months Ended
	Jul. 31, 2018
Segments
Schedule of segment results	Three Months Ended July 31, 2018 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 771,550 $ 242,575 $ 25,855 $ 74,595 Other 6,594 2,241 58 677 Corporate — — 409 — $ 778,144 $ 244,816 $ 26,322 $ 75,272 Three Months Ended July 31, 2017 Depreciation and Adjusted Net Sales Gross Profit Amortization EBITDA (in thousands) Geographic divisions $ 636,367 $ 203,024 $ 16,026 $ 52,227 Other 5,790 2,080 64 525 Corporate — — 255 — $ 642,157 $ 205,104 $ 16,345 $ 52,752
Reconciliation of Adjusted EBITDA to net income	Three Months Ended July 31, 2018 2017 (in thousands) Net income $ 8,650 $ 15,343 Interest expense 16,188 7,500 Write-off of debt discount and deferred financing fees — 74 Interest income (236) (23) Income tax expense 2,836 10,060 Depreciation expense 10,610 5,990 Amortization expense 15,712 10,355 Stock appreciation expense(a) 334 590 Redeemable noncontrolling interests(b) 531 866 Equity-based compensation(c) 404 473 Severance and other permitted costs(d) 4,836 205 Transaction costs (acquisitions and other)(e) 4,753 159 Gain on sale of assets (121) (390) Effects of fair value adjustments to inventory(f) 4,129 — Change in fair value of financial instruments(g) 6,019 196 Secondary public offering costs(h) — 631 Debt transaction costs(i) 627 723 Adjusted EBITDA $ 75,272 $ 52,752 (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 acquisitions paid to third party advisors. (f) Represents the non‑cash cost of sales impact of purchase accounting adjustments to increase inventory to its estimated fair value. (g) Represents the mark‑to‑market adjustments for derivative financial instruments. (h) Represents one-time costs related to our secondary offering paid to third-party advisors. Represents costs paid to third party advisors related to debt refinancing activities.
Schedule of net sales to external customers by main product lines	Three Months Ended July 31, 2018 2017 (in thousands) Wallboard $ 317,735 $ 284,657 Ceilings 115,855 99,710 Steel framing 129,112 104,651 Other products 215,442 153,139 Total net sales $ 778,144 $ 642,157
Schedule of net sales by major geographic area	Three Months Ended July 31, 2018 2017 (in thousands) United States $ 690,731 $ 642,157 Canada 87,413 — Total net sales $ 778,144 $ 642,157
Schedule of long-lived assets by major geographic area	July 31, April 30, 2018 2018 (in thousands) United States $ 878,415 $ 813,909 Canada 513,891 — Total long-lived assets $ 1,392,306 $ 813,909

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Jul. 31, 2018
Earnings Per Common Share
Schedule of computation of basic and diluted earnings per share of common stock	Three Months Ended July 31, 2018 2017 (in thousands, except per share data) Net income $ 8,650 $ 15,343 Less: Net income allocated to participating securities 156 — Net income attributable to common stockholders $ 8,494 $ 15,343 Basic earnings per common share: Basic weighted average common shares outstanding 41,094 40,971 Basic earnings per common share $ 0.21 $ 0.37 Diluted earnings per common share: Basic weighted average common shares outstanding 41,094 40,971 Add: Common Stock Equivalents 980 1,157 Diluted weighted average common shares outstanding 42,074 42,128 Diluted earnings per common share $ 0.20 $ 0.36

Business, Basis of Presentati30

Business, Basis of Presentation and Summary of Significant Accounting Policies - Business (Details)	3 Months Ended
	Jul. 31, 2018item
Minimum
Business
Number of distribution centers	245

Business, Basis of Presentati31

Business, Basis of Presentation and Summary of Significant Accounting Policies - Insurance Liabilities (Details) - USD ($) $ in Millions	Jul. 31, 2018	Apr. 30, 2018
Other accrued expenses and current liabilities.
Insurance Liabilities
Aggregate liabilities for medical self-insurance	$ 3.8	$ 4.1
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 | Other accrued expenses and current liabilities.
Insurance Liabilities
Reserve for insurance	16.4	14.7
General liability, workers' compensation and automobile | Prepaid expenses and other current assets
Insurance Liabilities
Insurance recovery receivable	6.6	$ 4.8
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 Presentati32

Business, Basis of Presentation and Summary of Significant Accounting Policies - Restructuring charges (Details) $ in Millions	3 Months Ended
	Jul. 31, 2018USD ($)
Payments	$ 1.7
Other accrued expenses and current liabilities
Remaining liability	3.1
Selling, general and administrative expenses
Restructuring costs	$ 4.8

Business, Basis of Presentati33

Business, Basis of Presentation and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Apr. 30, 2018
Adoption of new accounting pronouncement
Trade accounts and notes receivable	$ 474,394		$ 346,450
Other accrued expenses and current liabilities	60,640		$ 45,146
Other accrued expenses and liabilities	2,219	$ 14,026
Debt issuance costs	7,933	$ 3,308
ASU 2014-09
Adoption of new accounting pronouncement
Trade accounts and notes receivable	3,600
Other accrued expenses and current liabilities	3,600
ASU 2016-15
Adoption of new accounting pronouncement
Other accrued expenses and liabilities	2,700
Debt issuance costs	$ 2,700

Revenues (Details)

Revenues (Details) - USD ($) $ in Millions	3 Months Ended
	Jul. 31, 2018	May 01, 2018
Revenue
Revenue, Practical Expedient, Financing Component [true/false]	true
Revenue, Practical Expedient, Remaining Performance Obligation [true/false]	true
Receivables from contracts with customers	$ 445.1	$ 326.6

Business Acquisitions (Details)

Business Acquisitions (Details) $ in Thousands, shares in Millions, $ in Millions	Jun. 01, 2018CAD ($)shares	Jun. 01, 2018USD ($)itemshares	Jun. 07, 2017USD ($)	Jul. 31, 2018USD ($)	Jul. 31, 2017USD ($)
Acquisition of Titan
Drew down				$ 392,170	$ 167,429
Loan repayment				$ 571,840	$ 477,616
Third Amendment
Acquisition of Titan
Aggregate principal amount		$ 996,800
Third Amendment | LIBOR
Acquisition of Titan
Variable rate floor (as a percent)	0.00%	0.00%
Margin added to variable rate (as a percent)	2.75%	2.75%
First Lien Term Loan Due 2025
Acquisition of Titan
Loan repayment		$ 571,800	$ 477,600
Titan
Acquisition of Titan
Number of locations | item		30
Number of provinces | item		5
Aggregate purchase price	$ 800	$ 627,000
Issuance preferred stock to current shareholders of Titan (in shares) | shares	1.1	1.1
Purchase price
Fair value of consideration transferred		$ 614,200
Cash		581,000
Issuance preferred stock to current shareholders of Titan		33,200
Titan | Third Amendment
Acquisition of Titan
Aggregate principal amount		$ 996,800
Titan | Third Amendment | LIBOR
Acquisition of Titan
Variable rate floor (as a percent)	0.00%	0.00%
Margin added to variable rate (as a percent)	2.75%	2.75%
Titan | ABL facility
Acquisition of Titan
Drew down		$ 143,000
Titan | First Lien Term Loan Due 2025
Acquisition of Titan
Loan repayment		$ 571,800

Business Acquisitions - Prelimi

Business Acquisitions - Preliminary Allocation (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Jun. 01, 2018	Apr. 30, 2018
Preliminary Purchase Price Allocation
Goodwill	$ 623,200		$ 427,645
Titan
Preliminary Purchase Price Allocation
Cash		$ 5,573
Trade accounts and notes receivable		84,039
Inventories		60,272
Prepaid and other current assets		8,334
Property and equipment		37,263
Goodwill		196,524
Intangible assets		289,423
Accounts payable and accrued expenses		(40,833)
Contingent consideration		(12,039)
Deferred income taxes		(14,337)
Fair value of consideration transferred		$ 614,219

Business Acquisitions - Trade a

Business Acquisitions - Trade accounts and notes receivable (Details) - Titan $ in Millions	Jun. 01, 2018USD ($)
Trade accounts and notes receivable
Fair value	$ 84
Gross contractual amount	$ 85.6

Business Acquisitions - Preli38

Business Acquisitions - Preliminary components of intangible assets (Details) - USD ($) $ in Thousands	Jun. 01, 2018	Jul. 31, 2018	Apr. 30, 2018
Customer relationships
Acquisition of Titan
Weighted Average Amortization Period (in years)		11 years 10 months 24 days	10 years 10 months 24 days
Tradenames
Acquisition of Titan
Weighted Average Amortization Period (in years)		16 years 3 months 18 days	18 years
Developed technology
Acquisition of Titan
Weighted Average Amortization Period (in years)		4 years 10 months 24 days
Other
Acquisition of Titan
Weighted Average Amortization Period (in years)		3 years 3 months 18 days	5 years
Titan
Acquisition of Titan
Fair value	$ 289,423
Titan | Customer relationships
Acquisition of Titan
Fair value	$ 250,041
Weighted Average Amortization Period (in years)	13 years
Titan | Tradenames
Acquisition of Titan
Fair value	$ 30,098
Weighted Average Amortization Period (in years)	15 years
Titan | Developed technology
Acquisition of Titan
Fair value	$ 5,402
Weighted Average Amortization Period (in years)	5 years
Titan | Non-compete agreements
Acquisition of Titan
Fair value	$ 3,010
Weighted Average Amortization Period (in years)	3 years
Titan | Other
Acquisition of Titan
Fair value	$ 872
Weighted Average Amortization Period (in years)	3 years

Business Acquisitions - Net sal

Business Acquisitions - Net sales and net losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Acquisition of Titan
Net sales	$ 778,144	$ 642,157
Operating income	33,059	$ 32,687
Titan
Acquisition of Titan
Net sales	87,400
Operating income	$ 400

Business Acquisitions - Proform

Business Acquisitions - Proforma information (Details) - Titan - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Pro forma information
Pro forma net sales	$ 820,813	$ 767,834
Pro forma operating income	$ 8,367	$ 17,236

Goodwill and Intangible Asset41

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	3 Months Ended
	Jul. 31, 2018USD ($)
Carrying Amount of Goodwill
Balance	$ 427,645
Goodwill acquired	196,524
Purchase price adjustments	73
Translation adjustment	(1,042)
Balance	$ 623,200

Goodwill and Intangible Asset42

Goodwill and Intangible Assets - Definite-Lived Intangible Assets (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Jul. 31, 2018USD ($)segment	Apr. 30, 2018USD ($)
Definite-lived intangible assets
Number of operating segments | segment	7
Gross Carrying Amount	$ 606,603	$ 318,828
Accumulated Amortization	173,384	157,513
Net Carrying Value	$ 433,219	$ 161,315
Customer relationships
Definite-lived intangible assets
Weighted Average Amortization Period (in years)	11 years 10 months 24 days	10 years 10 months 24 days
Gross Carrying Amount	$ 531,165	$ 282,547
Accumulated Amortization	164,486	150,081
Net Carrying Value	$ 366,679	$ 132,466
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)	16 years 3 months 18 days	18 years
Gross Carrying Amount	$ 56,176	$ 26,250
Accumulated Amortization	4,314	3,578
Net Carrying Value	$ 51,862	$ 22,672
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
Weighted Average Amortization Period (in years)	8 years 3 months 18 days	8 years 3 months 18 days
Gross Carrying Amount	$ 6,644	$ 6,644
Accumulated Amortization	3,157	2,956
Net Carrying Value	$ 3,487	$ 3,688
Vendor agreements | Minimum
Definite-lived intangible assets
Estimated Useful Lives (years)	8 years	8 years
Vendor agreements | Maximum
Definite-lived intangible assets
Estimated Useful Lives (years)	10 years	10 years
Developed technology
Definite-lived intangible assets
Estimated Useful Lives (years)	5 years
Weighted Average Amortization Period (in years)	4 years 10 months 24 days
Gross Carrying Amount	$ 5,371
Accumulated Amortization	182
Net Carrying Value	$ 5,189
Leasehold interests
Definite-lived intangible assets
Weighted Average Amortization Period (in years)	7 years 7 months 6 days	9 years
Gross Carrying Amount	$ 3,733	$ 2,866
Accumulated Amortization	987	832
Net Carrying Value	$ 2,746	$ 2,034
Leasehold interests | Minimum
Definite-lived intangible assets
Estimated Useful Lives (years)	1 year	7 years
Leasehold interests | Maximum
Definite-lived intangible assets
Estimated Useful Lives (years)	15 years	15 years
Other
Definite-lived intangible assets
Estimated Useful Lives (years)		5 years
Weighted Average Amortization Period (in years)	3 years 3 months 18 days	5 years
Gross Carrying Amount	$ 3,514	$ 521
Accumulated Amortization	258	66
Net Carrying Value	$ 3,256	$ 455
Other | Minimum
Definite-lived intangible assets
Estimated Useful Lives (years)	3 years
Other | Maximum
Definite-lived intangible assets
Estimated Useful Lives (years)	5 years

Goodwill and Intangible Asset43

Goodwill and Intangible Assets - Amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Intangible assets
Amortization expense	$ 15,712	$ 10,355
Depreciation and amortization expense
Intangible assets
Amortization expense	$ 15,700	$ 10,400

Goodwill and Intangible Asset44

Goodwill and Intangible Assets - Estimated Aggregate Amortization Expense (Details) $ in Millions	Jul. 31, 2018USD ($)
Estimated aggregate future amortization expense
Expense remainder of fiscal year	$ 56.7
2,020	67.5
2,021	58.4
2,022	49.2
2,023	41.2
Thereafter	$ 160.2

Goodwill and Intangible Asset45

Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Millions	Jul. 31, 2018	Apr. 30, 2018
Goodwill and Intangible Assets
Tradenames	$ 61.4	$ 61.4

Long-Term Debt - Components (De

Long-Term Debt - Components (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Apr. 30, 2018
Long-term debt
Carrying value of debt	$ 1,303,640	$ 595,886
Less current portion	34,317	16,284
Long-term debt	1,269,323	579,602
First Lien Term Loan Due 2025
Long-term debt
Carrying value of debt	978,334	563,179
Unamortized discount	2,420	2,536
Deferred financing costs	13,594	6,125
ABL Facility
Long-term debt
Carrying value of debt	215,401
Capital Lease Obligations
Long-term debt
Carrying value of debt	$ 93,686	$ 18,564
Interest rate	5.50%	5.50%
Installment notes
Long-term debt
Carrying value of debt	$ 16,219	$ 14,143
Unamortized discount	$ 1,462	$ 1,534
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	Jul. 31, 2018	Jun. 01, 2018	Jun. 07, 2017	Jul. 31, 2018	Jul. 31, 2017
Long-term debt
Loan repayment				$ 571,840	$ 477,616
Write-off of debt discount and deferred financing fees					74
First Lien Term Loan Due 2025
Long-term debt
Loan repayment		$ 571,800	$ 477,600
Second amendment to First Lien Credit Agreement
Long-term debt
Aggregate principal amount			$ 577,600
Write-off of debt discount and deferred financing fees					$ 100
Second amendment to First Lien Credit Agreement | LIBOR
Long-term debt
Margin added to variable rate (as a percent)			3.00%
Variable rate floor (as a percent)			1.00%
Third Amendment
Long-term debt
Aggregate principal amount		$ 996,800
Borrowing interest rate (as a percent)		4.83%
Third Amendment | LIBOR
Long-term debt
Margin added to variable rate (as a percent)		2.75%
Variable rate floor (as a percent)		0.00%
ABL Facility
Long-term debt
Loan repayment	$ 94,000
Borrowing interest rate (as a percent)	4.09%			4.09%

Long-Term Debt - Asset-Based Le

Long-Term Debt - Asset-Based Lending Facility (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Long-term debt
Net borrowings	$ 392,170	$ 167,429
ABL Facility
Long-term debt
Maximum amount under the facility	$ 345,000
Borrowing interest rate (as a percent)	4.09%
Available borrowings under the facility	$ 119,800
Net borrowings	215,400
ABL Facility | Swing-line
Long-term debt
Maximum amount under the facility	$ 34,500

Long-Term Debt - Titan Revolvin

Long-Term Debt - Titan Revolving Credit Facility (Details) - Titan Revolving Credit Facility	Jun. 01, 2018CAD ($)
Debt Instrument [Line Items]
Maximum amount under the facility	$ 105,000,000
Amount outstanding	0
Available borrowings under the facility	$ 105,000,000

Long-Term Debt - Capital Leases

Long-Term Debt - Capital Leases (Details) $ in Millions	Jul. 31, 2018USD ($)
Long-Term Debt
Capital lease assets	$ 70
Capital lease liabilities	$ 70

Long-Term Debt - Maturities (De

Long-Term Debt - Maturities (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Apr. 30, 2018
Debt maturities
2019 (remaining nine months)	$ 24,617
2,020	41,351
2,021	37,092
2,022	247,610
2,023	20,785
Thereafter	949,661
Total	1,321,116
First Lien Term Loan Due 2025
Debt maturities
2019 (remaining nine months)	7,476
2,020	9,968
2,021	9,968
2,022	9,968
2,023	9,968
Thereafter	947,000
Total	994,348
Long Term Debt
Unamortized discount	2,420	$ 2,536
Deferred financing costs	13,594	6,125
ABL Facility
Debt maturities
2,022	215,401
Total	215,401
Capital Lease Obligations
Debt maturities
2019 (remaining nine months)	13,597
2,020	27,589
2,021	23,634
2,022	19,186
2,023	7,794
Thereafter	1,886
Total	93,686
Installment notes
Debt maturities
2019 (remaining nine months)	3,544
2,020	3,794
2,021	3,490
2,022	3,055
2,023	3,023
Thereafter	775
Total	17,681
Long Term Debt
Unamortized discount	$ 1,462	$ 1,534

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Apr. 30, 2018
Effective income tax rate (as a percent)	24.70%	39.60%
Valuation allowance	$ 0.4		$ 0.4
Reserve for uncertain tax positions	$ 0		$ 0
Domestic
Federal statutory rate (as a percent)	21.00%
Canada
Federal statutory rate (as a percent)	26.80%

Stockholders' Equity - Accumula

Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands, shares in Millions	Jun. 01, 2018shares	Jul. 31, 2018USD ($)
Stockholders’ Equity
Balance		$ 579,451
Foreign currency translation adjustments		(3,791)
Balance		619,280
Accumulated Other Comprehensive Income (Loss)
Stockholders’ Equity
Balance		441
Foreign currency translation adjustments		(3,791)
Other comprehensive loss on interest rate cap		(237)
Reclassification to earnings from acculumated other comprehensive income for interest rate cap		350
Balance		$ (3,237)
Titan
Stockholders’ Equity
Issuance preferred stock to current shareholders of Titan (in shares) | shares	1.1
Exchangeable shares conversion ratio	1
Threshold period to hold converted shares from acquisition date	1 year

Equity-Based Compensation - Gen

Equity-Based Compensation - General (Details) shares in Millions	3 Months Ended
	Jul. 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) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Apr. 30, 2018
Other disclosures
Equity-based compensation	$ 404	$ 473
Selling, general and administrative expenses
Other disclosures
Equity-based compensation	$ 400	$ 500
Stock Options
Number of Options
Outstanding, beginning of the period (in shares)	1,952
Options granted (in shares)	0	0
Options exercised (in shares)	(35)	0
Options forfeited (in shares)	(2)
Outstanding, end of the period (in shares)	1,915		1,952
Exercisable at end of period (in shares)	1,701
Vested and expected to vest at end of period (in shares)	1,910
Weighted Average Exercise Price
Outstanding, beginning of period (in dollars per share)	$ 14.37
Options exercised (in dollars per share)	12.31
Options forfeited (in dollars per share)	37.49
Outstanding, end of the period (in dollars per share)	14.39		$ 14.37
Exercisable at end of period (in dollars per share)	13.04
Vested and expected to vest at end of period (in dollars per share)	$ 14.35
Other disclosures
Weighted Average Remaining Contractual Life, Outstanding (in years)	6 years 4 months 10 days		6 years 6 months 7 days
Weighted Average Remaining Contractual Life, Exercisable at end of period (in years)	6 years 1 month 24 days
Weighted Average Remaining Contractual Life, Vested and expected to vest at end of period (in years)	6 years 4 months 6 days
Aggregate Intrinsic Value, Outstanding	$ 25,046		$ 33,209
Aggregate Intrinsic Value, Exercisable at end of period	23,907
Aggregate Intrinsic Value, Vested and expected to vest at end of period	25,030
Intrinsic value of options exercised	500
Unrecognized compensation cost	$ 900
Weighted-average period for recognition of unrecognized compensation expense (in years)	2 years

Equity-Based Compensation - Res

Equity-Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Jul. 31, 2018USD ($)$ / sharesshares
Unrecognized compensation cost | $	$ 0.6
Weighted-average period for recognition of unrecognized compensation expense (in years)	2 years 4 months 24 days
Number of Restricted Stock Units
Outstanding, beginning of the period (in shares) | shares	21,766
Vested (in shares) | shares	(655)
Outstanding, end of the period (in shares) | shares	21,111
Weighted Average Exercise Price
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 37.49
Vested (in dollars per share) | $ / shares	37.49
Outstanding, end of the period (in dollars per share) | $ / shares	$ 37.49

Stock Appreciation Rights, De57

Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Apr. 30, 2018
Equity based compensation arrangements
Long-term liabilities related to plans	$ 12,773		$ 15,707
Selling, general and administrative expenses
Equity based compensation arrangements
Expense related to equity based compensation arrangements	900	$ 1,500
Stock Appreciation Rights
Equity based compensation arrangements
Award liability as of beginning of year	21,944
Change in fair value	334
Award liability as of end of year	22,278
Current liabilities related to plans	800		308
Long-term liabilities related to plans	$ 21,478		21,636
Settlement period	4 years
Deferred Compensation
Equity based compensation arrangements
Award liability as of beginning of year	$ 2,222
Amounts redeemed	(689)
Change in fair value	66
Award liability as of end of year	1,599
Current liabilities related to plans	4		133
Long-term liabilities related to plans	$ 1,595		2,089
Settlement period	5 years
Redeemable Noncontrolling Interests
Equity based compensation arrangements
Award liability as of beginning of year	$ 16,170
Amounts redeemed	(2,444)
Change in fair value	465
Award liability as of end of year	14,191
Current liabilities related to plans	1,418		463
Long-term liabilities related to plans	$ 12,773		$ 15,707
Settlement period	5 years

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Apr. 30, 2018
Fair Value Measurements
Change in fair value of financial instruments	$ (6,019)	$ (196)
Fair Value, Measurements, Recurring | Level 3
Fair Value Measurements
Contingent consideration	14,191		$ 16,170
Stock appreciation rights	22,278		21,944
Deferred compensation	1,599		2,222
Noncontrolling interest holders	12,200
Interest rate cap | Fair Value, Measurements, Recurring | Level 2
Fair Value Measurements
Derivative assets	239		543
Forward currency forward
Fair Value Measurements
Change in fair value of financial instruments	(5,700)
Forward currency forward | Fair Value, Measurements, Recurring | Level 2
Fair Value Measurements
Derivative liabilities			$ 5,108
Titan
Fair Value Measurements
Assumed contingent consideration arrangements	12,000
Selling, general and administrative expenses | Titan
Fair Value Measurements
Contingent consideration expense	$ 200

Transactions With Related Par59

Transactions With Related Parties - Facilities Rental (Details) - USD ($) $ in Millions	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Affiliated partnerships or entities | Lease of warehouse facilities | Selling, general and administrative expenses
Transactions with related parties
Rent expense	$ 0.2	$ 0.2

Transactions With Related Par60

Transactions With Related Parties - Purchased Inventories (Details) - Southern Wall Products, Inc. - Inventory purchases - USD ($) $ in Millions	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Apr. 30, 2018
Transactions with related parties
Purchases from related party	$ 3.4	$ 3.5
Accounts payable
Transactions with related parties
Due to SWP	$ 1.1		$ 1.2

Segments - Number (Details)

Segments - Number (Details)	3 Months Ended
	Jul. 31, 2018segmentdivision
Segments
Number of operating segments	7
Number of reportable segments	1
Number of geographic divisions | division	7

Segments - Net Sales, Adjusted

Segments - Net Sales, Adjusted EBITDA and Certain Other Measures (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Segment information
Net sales	$ 778,144	$ 642,157
Gross Profit	244,816	205,104
Depreciation and Amortization	26,322	16,345
Adjusted EBITDA	75,272	52,752
Geographic divisions
Segment information
Net sales	771,550	636,367
Gross Profit	242,575	203,024
Depreciation and Amortization	25,855	16,026
Adjusted EBITDA	74,595	52,227
Other.
Segment information
Net sales	6,594	5,790
Gross Profit	2,241	2,080
Depreciation and Amortization	58	64
Adjusted EBITDA	677	525
Corporate
Segment information
Depreciation and Amortization	$ 409	$ 255

Segments - Reconciliation of Ne

Segments - Reconciliation of Net Income to Adjusted EBITDA (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Segments
Net income	$ 8,650	$ 15,343
Interest expense	16,188	7,500
Write-off of debt discount and deferred financing fees		74
Interest income	(236)	(23)
Income tax expense	2,836	10,060
Depreciation expense	10,610	5,990
Amortization expense	15,712	10,355
Stock appreciation expense	334	590
Redeemable noncontrolling interests	531	866
Equity-based compensation	404	473
Severance and other permitted costs	4,836	205
Transaction costs (acquisitions and other)	4,753	159
Gain on sale of assets	(121)	(390)
Effects of fair value adjustments to inventory	4,129
Change in fair value of financial instruments	6,019	196
Secondary public offering costs		631
Debt transaction costs	627	723
Adjusted EBITDA	$ 75,272	$ 52,752

Segments - Net Sales by Main Pr

Segments - Net Sales by Main Product Lines (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Revenue from external customers
Total net sales	$ 778,144	$ 642,157
Wallboard
Revenue from external customers
Total net sales	317,735	284,657
Ceilings
Revenue from external customers
Total net sales	115,855	99,710
Steel framing
Revenue from external customers
Total net sales	129,112	104,651
Other products
Revenue from external customers
Total net sales	$ 215,442	$ 153,139

Segments - Net sales by major g

Segments - Net sales by major geographic area (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	$ 778,144	$ 642,157
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	690,731	$ 642,157
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	$ 87,413

Segments - Long-lived assets by

Segments - Long-lived assets by major geographic area (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 1,392,306	$ 813,909
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	878,415	$ 813,909
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 513,891

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Computation of basic and diluted earnings per share of common stock
Net income	$ 8,650	$ 15,343
Less: Net income allocated to participating securities	156
Net income attributable to common stockholders	$ 8,494	$ 15,343
Basic earnings per common share:
Basic weighted average common shares outstanding (in shares)	41,094	40,971
Basic earnings per common share (in dollars per share)	$ 0.21	$ 0.37
Diluted earnings per common share:
Basic weighted average common shares outstanding (in shares)	41,094	40,971
Add: Common Stock Equivalents	980	1,157
Diluted weighted average common shares outstanding (in shares)	42,074	42,128
Diluted earnings per common share (in dollars per share)	$ 0.20	$ 0.36