Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | May 31, 2020 | Oct. 31, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Apr. 30, 2020 | ||
Entity File Number | 001-37784 | ||
Entity Registrant Name | GMS Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-2931287 | ||
Entity Address, Address Line One | 100 Crescent Centre Parkway, SuiteĀ 800 | ||
Entity Address, City or Town | Tucker | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30084 | ||
City Area Code | 800 | ||
Local Phone Number | 392-4619 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | GMS | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,246.9 | ||
Entity Common Stock, Shares Outstanding | 42,603,708 | ||
Entity Central Index Key | 0001600438 | ||
Current Fiscal Year End Date | --04-30 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 210,909 | $ 47,338 |
Trade accounts and notes receivable, net of allowances of $5,141 and $6,432, respectively | 405,254 | 445,771 |
Inventories, net | 299,815 | 290,829 |
Prepaid expenses and other current assets | 14,972 | 18,368 |
Total current assets | 930,950 | 802,306 |
Property and equipment, net of accumulated depreciation of $158,554 and $123,583, respectively | 305,467 | 282,349 |
Operating lease right-of-use assets | 115,257 | |
Goodwill | 553,073 | 617,327 |
Intangible assets, net | 361,884 | 429,313 |
Deferred income taxes | 8,904 | 4,676 |
Other assets | 13,247 | 13,583 |
Total assets | 2,288,782 | 2,149,554 |
Current liabilities: | ||
Accounts payable | 213,230 | 173,751 |
Accrued compensation and employee benefits | 67,590 | 62,858 |
Other accrued expenses and current liabilities | 63,812 | 79,848 |
Current portion of long-term debt | 50,201 | 42,118 |
Current portion of operating lease liabilities | 33,040 | |
Total current liabilities | 427,873 | 358,575 |
Non-current liabilities: | ||
Long-term debt, less current portion | 1,047,279 | 1,099,077 |
Long-term operating lease liabilities | 89,605 | |
Deferred income taxes, net | 12,018 | 10,226 |
Other liabilities | 78,026 | 52,500 |
Total liabilities | 1,654,801 | 1,520,378 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, par value $0.01 per share, 500,000 shares authorized; 42,554 and 40,375 shares issued and outstanding as of April 30, 2020 and 2019, respectively | 426 | 404 |
Preferred stock, par value $0.01 per share, 50,000 shares authorized; 0 shares issued and outstanding as of April 30, 2020 and 2019 | ||
Exchangeable shares | 29,639 | |
Additional paid-in capital | 529,662 | 480,113 |
Retained earnings | 168,975 | 145,594 |
Accumulated other comprehensive loss | (65,082) | (26,574) |
Total stockholders' equity | 633,981 | 629,176 |
Total liabilities and stockholders' equity | $ 2,288,782 | $ 2,149,554 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Consolidated Balance Sheets | ||
Trade accounts and notes receivable, allowances (in dollars) | $ 5,141 | $ 6,432 |
Property and equipment, accumulated depreciation (in dollars) | $ 158,554 | $ 123,583 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 42,554,000 | 40,375,000 |
Common stock, shares outstanding | 42,554,000 | 40,375,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Consolidated Statements of Operations and Comprehensive Income | ||||
Net sales | $ 3,241,307 | $ 3,116,032 | $ 2,511,469 | |
Cost of sales (exclusive of depreciation and amortization shown separately below) | 2,178,093 | 2,111,913 | 1,692,893 | |
Gross profit | 1,063,214 | 1,004,119 | 818,576 | |
Operating expenses: | ||||
Selling, general and administrative | 784,081 | 739,460 | 633,877 | |
Depreciation and amortization | 116,533 | 117,459 | 65,530 | |
Impairment of goodwill | 63,074 | |||
Total operating expenses | 963,688 | 856,919 | 699,407 | |
Operating income | 99,526 | 147,200 | 119,169 | |
Other (expense) income: | ||||
Interest expense | (67,718) | (73,677) | (31,395) | |
Gain on legal settlement | 14,029 | |||
Write-off of debt discount and deferred financing fees | (1,331) | (74) | ||
Change in fair value of financial instruments | (6,395) | (6,125) | ||
Other income, net | 1,819 | 2,913 | 2,279 | |
Total other expense, net | (53,201) | (77,159) | (35,315) | |
Income before taxes | 46,325 | 70,041 | 83,854 | |
Provision for income taxes | 22,944 | 14,039 | 20,883 | |
Net income | $ 23,381 | $ 56,002 | $ 62,971 | |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 41,853 | 40,914 | 41,015 | |
Diluted (in shares) | 42,504 | 41,589 | 42,163 | |
Net income per common share: | ||||
Basic (in dollars per share) | [1] | $ 0.56 | $ 1.33 | $ 1.54 |
Diluted (in dollars per share) | [1] | $ 0.55 | $ 1.31 | $ 1.49 |
Comprehensive income (loss) | ||||
Net income | $ 23,381 | $ 56,002 | $ 62,971 | |
Foreign currency translation loss | (18,257) | (22,320) | ||
Changes in other comprehensive income (loss), net of tax | (20,251) | (4,695) | 1,325 | |
Comprehensive income (loss) | $ (15,127) | $ 28,987 | $ 64,296 | |
[1] | See Note 19 for detailed calculations. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock | Exchangeable Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Apr. 30, 2017 | $ 410 | $ 488,459 | $ 26,621 | $ (884) | $ 514,606 | |
Balance (in shares) at Apr. 30, 2017 | 40,971 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 62,971 | 62,971 | ||||
Change in other comprehensive income (loss), net of tax | 1,325 | 1,325 | ||||
Equity-based compensation | 1,513 | 1,513 | ||||
Tax withholding related to net share settlements of stock options/equity awards | (1,441) | (1,441) | ||||
Exercise of stock options | $ 1 | 476 | 477 | |||
Exercise of stock options (in shares) | 98 | |||||
Balance at Apr. 30, 2018 | $ 411 | 489,007 | 89,592 | 441 | 579,451 | |
Balance (in shares) at Apr. 30, 2018 | 41,069 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 56,002 | 56,002 | ||||
Issuance of Exchangeable Shares | $ 29,639 | 29,639 | ||||
Repurchase and retirement of common stock | $ (10) | (16,510) | (16,520) | |||
Repurchase and retirement of common stock (in shares) | (978) | |||||
Foreign currency translation loss | (22,320) | (22,320) | ||||
Change in other comprehensive income (loss), net of tax | (4,695) | (4,695) | ||||
Equity-based compensation | 3,726 | 3,726 | ||||
Tax withholding related to net share settlements of stock options/equity awards | (50) | (50) | ||||
Exercise of stock options | $ 2 | 2,536 | 2,538 | |||
Exercise of stock options (in shares) | 205 | |||||
Vesting of restricted stock units (in shares) | 5 | |||||
Issuance of common stock pursuant to employee stock purchase plan | $ 1 | 1,404 | 1,405 | |||
Issuance of common stock pursuant to employee stock purchase plan (in shares) | 74 | |||||
Balance at Apr. 30, 2019 | $ 404 | 29,639 | 480,113 | 145,594 | (26,574) | $ 629,176 |
Balance (in shares) at Apr. 30, 2019 | 40,375 | 40,375 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 23,381 | $ 23,381 | ||||
Exercise of Exchangeable Shares | $ 11 | $ (29,639) | 29,628 | |||
Exercise of Exchangeable Shares (in shares) | 1,129 | |||||
Foreign currency translation loss | (18,257) | (18,257) | ||||
Change in other comprehensive income (loss), net of tax | (20,251) | (20,251) | ||||
Equity-based compensation | 6,878 | 6,878 | ||||
Tax withholding related to net share settlements of stock options/equity awards | (532) | (532) | ||||
Exercise of stock options | $ 9 | 11,784 | 11,793 | |||
Exercise of stock options (in shares) | 857 | |||||
Vesting of restricted stock units | $ 1 | (1) | ||||
Vesting of restricted stock units (in shares) | 78 | |||||
Issuance of common stock pursuant to employee stock purchase plan | $ 1 | 1,792 | 1,793 | |||
Issuance of common stock pursuant to employee stock purchase plan (in shares) | 115 | |||||
Balance at Apr. 30, 2020 | $ 426 | $ 529,662 | $ 168,975 | $ (65,082) | $ 633,981 | |
Balance (in shares) at Apr. 30, 2020 | 42,554 | 42,554 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 23,381 | $ 56,002 | $ 62,971 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 116,533 | 117,459 | 65,530 |
Impairment of goodwill | 63,074 | ||
Write-off and amortization of debt discount and debt issuance costs | 4,541 | 3,332 | 2,851 |
Provision for losses on accounts and notes receivable | 1,602 | 617 | (622) |
Provision for obsolescence of inventory | 333 | 432 | 106 |
Effects of fair value adjustments to inventory | 575 | 4,176 | 324 |
Increase in fair value of contingent consideration | 1,600 | 759 | 195 |
Equity-based compensation | 8,970 | 7,643 | 5,745 |
Loss (gain) on disposal and impairment of assets | 658 | (525) | (509) |
Change in fair value of financial instruments | 6,395 | 6,125 | |
Deferred income taxes | 926 | (17,487) | (16,224) |
Changes in assets and liabilities net of effects of acquisitions: | |||
Trade accounts and notes receivable | 41,424 | (13,586) | (11,752) |
Inventories | (4,579) | 5,137 | (35,098) |
Prepaid expenses and other assets | 6,623 | (4,842) | (3,109) |
Accounts payable | 40,290 | 26,816 | 11,365 |
Accrued compensation and employee benefits | 4,740 | 6,631 | (236) |
Other accrued expenses and liabilities | (7,612) | (5,344) | 3,601 |
Cash provided by operating activities | 303,079 | 193,615 | 91,263 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (25,193) | (18,770) | (23,741) |
Proceeds from sale of assets | 2,229 | 1,170 | 2,865 |
Acquisition of businesses, net of cash acquired | (24,136) | (583,092) | (28,333) |
Cash used in investing activities | (47,100) | (600,692) | (49,209) |
Cash flows from financing activities: | |||
Repayments on the revolving credit facility | (837,424) | (937,176) | (617,230) |
Borrowings from the revolving credit facility | 880,698 | 981,148 | 513,878 |
Payments of principal on long-term debt | (109,968) | (9,968) | (5,776) |
Payments of principal on finance lease obligations | (25,275) | (19,474) | (6,132) |
Borrowings from term loan | 996,840 | 577,616 | |
Repayment of term loan | (571,840) | (477,616) | |
Repurchases of common stock | (16,520) | ||
Payments for contingent consideration | (11,133) | ||
Debt issuance costs | (1,286) | (7,933) | (3,283) |
Proceeds from exercises of stock options | 11,793 | 2,538 | 477 |
Payments for taxes related to net share settlement of equity awards | (532) | (50) | (1,441) |
Other financing activities | 1,793 | 1,405 | (671) |
Cash (used in) provided by financing activities | (91,334) | 418,970 | (20,178) |
Effect of exchange rates on cash and cash equivalents | (1,074) | (992) | |
Increase in cash and cash equivalents | 163,571 | 10,901 | 21,876 |
Cash and cash equivalents, beginning of period | 47,338 | 36,437 | 14,561 |
Cash and cash equivalents, end of period | 210,909 | 47,338 | 36,437 |
Supplemental cash flow disclosures: | |||
Cash paid for income taxes | 29,761 | 19,351 | 38,954 |
Cash paid for interest | 63,745 | 66,435 | 28,613 |
Supplemental schedule of noncash activities: | |||
Assets acquired under finance lease | 50,484 | 111,826 | 9,086 |
Issuance of installment notes associated with equity-based compensation liability awards | 5,163 | 5,356 | 12,433 |
(Decrease) increase in insurance claims payable and insurance recoverable | $ (634) | $ 619 | $ (2,362) |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2020 | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business ā Founded in 1971, GMS Inc. (āwe,ā āour,ā āus,ā or the āCompanyā), 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 building products. We purchase products from many 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 260 distribution centers across the United States and Canada. ā Principles of Consolidation The consolidated financial statements of the Company include the accounts of its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. ā Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (āGAAPā) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ā Foreign Currency Translation Assets and liabilities of the Companyās 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 stockholdersā equity and other comprehensive income (loss). Gains and losses on foreign currency transactions are recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) within other income, net. Reclassifications ā Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. ā Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. ā Trade Accounts Receivable Accounts receivables are recorded at their net realizable value. The Company maintains an allowance for doubtful accounts for estimated losses due to the failure of customers to make required payments, as well as allowances for cash discounts. The Companyās estimate of the allowance for doubtful accounts is based on an assessment of individual past due accounts, historical write-off experience, accounts receivable aging and current economic trends. Account balances are written off when the potential for recovery is considered remote. ā Inventories ā Inventories consist of finished goods purchased for resale and include wallboard, ceilings, steel framing and other specialty building products. Inventories are valued at the lower of cost or market (net realizable value). The cost of inventories is determined by the moving average cost method. The Company routinely evaluates inventory for excess or obsolescence and considers factors such as historical usage rates and demand. ā Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Property and equipment obtained through acquisition is stated at estimated fair value as of the acquisition date. Expenditures for improvements and betterments are capitalized, while the costs of maintenance and repairs are charged to operating expense as incurred. Gains and losses related to the sale of property and equipment are recorded in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). Depreciation expense for property and equipment of U.S. subsidiaries is determined using the straight-line method over the estimated useful lives of the various asset classes. The estimated useful lives of property and equipment are as follows: ā ā ā ā Buildings 25 - 39 years Furniture, fixtures and automobiles 3 - 5 years Warehouse and delivery equipment 4 - 10 years Leasehold improvements Shorter of estimated useful life or lease term ā Depreciation expense for property and equipment of Canadian subsidiaries is recognized over the estimated useful lives of the various asset classes as follows: ā ā ā ā Vehicles and trucks 30% - 40% declining balance Furniture and fixtures 8% - 20% declining balance Buildings 4% declining balance Machinery and equipment 30% declining balance Leasehold improvements ā Straight-line over shorter of estimated useful life or lease term ā Goodwill Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the acquisition method of accounting. The Company does not amortize goodwill. The Company tests its goodwill annually during the fourth quarter of its fiscal year or when events and circumstances indicate that those assets might not be recoverable. Impairment testing of goodwill is required at the reporting unit level (operating segment or one level below operating segment). Prior to performing the impairment test, the Company may make a qualitative assessment of the likelihood of goodwill impairment in order to determine whether a detailed quantitative analysis is required. The impairment test involves comparing the estimated fair values of the Companyās reporting units with the reporting unitsā carrying amounts, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, a goodwill impairment loss is measured as the amount by which a reporting unitās carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. ā Intangible Assets Intangible assets consist of customer relationships, trade names and other assets acquired in conjunction with the purchases of businesses or purchases of assets from other companies. When management determines material intangible assets are acquired in conjunction with the purchase of a business, the Company determines the fair values of the identifiable intangible assets by considering managementās own analysis and an independent third-party valuation specialistās appraisal. Intangible assets determined to have definite lives are amortized over their estimated useful lives. ā Long-Lived Assets ā The Company evaluates the recoverability of long-lived assets, including property and equipment, operating lease right-of-use assets and definite-lived intangible assets, for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used or a significant adverse change that would indicate the carrying amount of an asset or group of assets is not recoverable. For long-lived assets to be held and used, the Company recognizes an impairment loss if its carrying amount is not recoverable through its undiscounted cash flows and measures the impairment loss, if any, based on the difference between the carrying amount and fair value. Long-lived assets held for sale are reported at the lower of cost or fair value less costs to sell 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. In addition, the Company has deductible-based insurance policies for certain losses related to general liability, workersā compensation and automobile. The deductible amount per incident is $0.3 million, $0.5 million and $1.0 million for general liability, workersā compensation and automobile, respectively. The coverage consists of a deductible layer, a primary layer, a self-insured buffer layer, a lead umbrella layer and excess layers. The primary layer of coverage is from $0.3 million, $0.5 million and $1.0 million for deductibles for general liability, workersā compensation, and automobile liability, respectively, to $5.0 million. The Company self-insures a buffer layer from $5.0 million to $10.0 million. The umbrella and excess layers cover claims from $10.0 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 April 30, 2020 and 2019, the aggregate liabilities for medical self-insurance were $3.8 million and $3.4 million, respectively, and are included in other accrued expenses and current liabilities in the Consolidated Balance Sheets. As of April 30, 2020 and 2019, reserves for general liability, workersā compensation and automobile totaled $19.4 million and $17.7 million, respectively, and are included in other accrued expenses and current liabilities and other liabilities in the Consolidated Balance Sheets. As of April 30, 2020 and 2019, expected recoveries for medical self-insurance, general liability, workersā compensation and automobile totaled $6.0 million and $6.0 million, respectively, and are included in prepaid expenses and other current assets and other assets in the Consolidated Balance Sheets. ā 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 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 first quarter of 2019, the Company initiated a reduction in workforce as part of a strategic cost reduction plan to improve operational efficiency. The Company recorded $5.0 million of restructuring costs during the year ended April 30, 2019 in connection with the reduction in workforce and certain other restructuring activities, consisting primarily of severance and other employee costs. As of April 30, 2019, all costs related to the reduction in workforce had been paid. During the fourth quarter of 2020, the Company initiated a restructuring plan to close one of its facilities. The Company recorded $2.2 million of restructuring costs, consisting of $1.9 million for impairment of the operating lease right-of-use asset and $0.3 million for severance and other employee costs. Restructuring costs are classified within selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). ā Debt Issuance Costs The Company defers debt issuance costs and amortizes them over the term of the related debt. The Company uses the straight-line method to amortize debt issuance costs for its revolving credit facility and uses the effective interest method to amortize debt issuance costs for its term loan facilities. Amortization of debt issuance costs is recorded in interest expense in the Consolidated Statements of Operations and Comprehensive Income (Loss). The Company classifies debt issuance costs for its revolving credit facilities as an asset in the Consolidated Balance Sheets and classifies debt issuance costs for its term loan facilities as a reduction of the related debt in the Consolidated Balance Sheets. ā Stock Appreciation Rights, Deferred Compensation and Liabilities to Noncontrolling Interest Holders Certain subsidiaries have equity-based compensation agreements with the subsidiaryās employees and minority stockholders. These agreements are stock appreciation rights, deferred compensation agreements and liabilities to noncontrolling interest holders. Since these agreements are typically settled in cash or notes, they are accounted for as liability awards and measured at fair value. See Note 13, āStock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests,ā for additional information with respect to these agreements. ā Derivative Instruments The Company has entered into derivative instruments to manage its exposure to certain financial risks. The Companyās derivative financial instruments are recognized as either assets or liabilities in the Consolidated Balance Sheets and measured at fair value. Derivative instruments that do not qualify as a hedge or are not designated as a hedge are adjusted to estimated fair value in earnings. Derivative instruments that meet hedge criteria are formally designated as hedges. For derivative instruments designated as a cash flow hedge, the Company recognizes the change in fair value, net of taxes, to accumulated other comprehensive income (loss) in the Consolidated Balance Sheets, and an amount is reclassified out of accumulated other comprehensive income (loss) into earnings to offset the earnings impact that is attributable to the risk being hedged. For derivative instruments designated as a fair value hedge, the Company recognizes the loss or gain attributable to the risk being hedged in earnings in the period of change with a corresponding offset recorded to the item for which the risk is being hedged. The Company performs the effectiveness testing of its designated hedges on a quarterly basis and the changes in ineffective portions of the derivatives, if any, are recognized immediately in earnings. See Note 14, āDerivative Instruments,ā for additional information with respect to the Companyās derivative instruments. ā Revenue Recognition ā The Company recognizes revenue 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 Note 2, āRevenue,ā for information on the Companyās revenue recognition. Cost of Sales Cost of sales reflects the direct cost of goods purchased from third parties, rebates earned from vendors, adjustments for inventory reserves and the cost of inbound freight. Vendor Rebates Typical arrangements with vendors provide for the Company to receive a rebate of a specified amount after it achieves any of a number of measures generally related to the volume of our purchases over a period of time. The Company records these rebates to effectively reduce its cost of sales in the period in which the Company sells the product. Throughout the year, the Company estimates the amount of rebates receivable for the periodic programs based upon the expected level of purchases. The Company accrues for the receipt of vendor rebates based on purchases and also reduces inventory to reflect the deferral of cost of sales. ā Selling, General and Administrative Expenses ā ā Advertising Expense The cost of advertising is expensed as incurred and included in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). Advertising expense was $3.3 million, $1.9 million and $1.8 million during the years ended April 30, 2020, 2019 and 2018, respectively. ā Equity-Based Compensation As of April 30, 2020, the Company had various stock-based compensation plans, which are more fully described in Note 12, āEquity-Based Compensation.ā 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 GMSās common stock on the date of grant. Income Taxes Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized based on the difference between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Inherent in the measurement of deferred balances are certain judgments and interpretations of existing tax law and published guidance as applicable to our operations. The Company evaluates its deferred tax assets to determine if valuation allowances are required. In assessing the realizability of deferred tax assets, we consider both positive and negative evidence in determining whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The primary negative evidence considered includes the cumulative operating losses generated in prior periods. The primary positive evidence considered includes the reversal of deferred tax liabilities related to depreciation and amortization that would occur within the same jurisdiction and during the carry-forward period necessary to absorb the federal and state net operating losses and other deferred tax assets. The reversal of such liabilities would utilize the federal and state net operating losses and other deferred tax assets. The Company records amounts for uncertain tax positions that management believes are supportable, but are potentially subject to successful challenge by the applicable taxing authority. Consequently, changes in our assumptions and judgments could materially affect amounts recognized related to income tax uncertainties and may affect our results of operations or financial position. We believe our assumptions for estimates are reasonable, although actual results may have a positive or negative material impact on the balances of such tax positions. Historically, the variation of estimates to actual results is not significant and material variation is not expected in the future. ā Concentrations of Risk COVID-19 Pandemic ā Credit Risk. geographically diverse customers Additionally, the Company maintains allowances for potential credit losses. As of April 30, 2020 and 2019, no customer accounted for more than 10% of gross accounts receivable. ā Supply Risk. ā 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. ā The carrying values of the Companyās 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 Companyās debt instruments approximate fair value. See Note 15, āFair Value Measurements,ā for additional information with respect to the Companyās fair value measurements. ā 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 āCommon Stock Equivalentsā), were exercised or converted into common stock The dilutive effect of outstanding stock options and 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. Common Stock Equivalents The holders of the Companyās Exchangeable Shares (as defined in Note 3, āBusiness Acquisitionsā and further described in Note 11, āStockholdersā Equityā) were entitled to receive dividends or distributions that were equal to any dividends or distributions on the Companyās common stock. As a result, when the Exchangeable Shares were outstanding, they were classified as a participating security and thereby required the allocation of income that would have otherwise been available to common stockholders when calculating earnings per share. Diluted earnings per share was calculated by utilizing the most dilutive result of the if-converted and two-class methods. In both methods, net income attributable to common stockholders 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 Leases ā In February 2016, the Financial Accounting Standards Board (āFASBā) issued authoritative guidance on accounting for leases. The new standard establishes a right-of-use (āROUā) 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 twelve months. Leases are classified as either finance or operating, with such classification affecting the pattern of expense recognition in the statement of operations. The new standard was effective for the Companyās fiscal year beginning May 1, 2019 (the first day of fiscal 2020), including interim reporting periods within that fiscal year. A modified transition approach was 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. ā On July 30, 2018, the FASB issued new guidance that provided 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. ā The Company adopted the new lease standard on May 1, 2019 using the optional transition method. The Company elected the package of practical expedients permitted in the guidance, which among other things, allows the Company to carry forward the historical accounting relating to lease identification and classification for existing leases upon adoption. The Company also elected to use the practical expedient to not separate lease and nonlease components. The Company did not elect the hindsight practical expedient. The Company made an accounting policy election to not recognize an ROU asset and lease liability for leases with an initial term of 12 months or less. ā The adoption of the standard resulted in the recording of operating lease ROU assets and operating lease liabilities of $118.8 million on the Consolidated Balance Sheet as of the adoption date. The Company also reclassified deferred rent of $4.8 million from liabilities into its operating lease ROU assets. The adoption did not have a material impact on the Companyās Statement of Operations or Statement of Cash Flows. See Note 8, āLeases,ā for information and disclosures regarding leases. ā Goodwill ā 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 unitās 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 adopted the new guidance on February 1, 2020 (the first day of its fiscal fourth quarter). ā Recently Issued Accounting Pronouncements ā Credit Losses ā In June 2016, the FASB issued new guidance on credit losses on financial instruments. This guidance introduces a revised approach to the recognition and measurement of credit losses of certain financial instruments, including trade receivables, emphasizing an updated model based on expected losses rather than incurred losses. This new guidance is effective for annual reporting periods, and interim reporting periods contained therein, beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its financial statements and related disclosures. ā Fair Value Measurement Disclosures ā In August 2018, the FASB issued new guidance that changes certain fair value measurement disclosure requirements. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. An entity is permitted to early adopt all of the disclosure changes or early adopt only the removed disclosure requirements and delay adoption of the additional disclosures until the effective date of this amendment. Except for changes to certain disclosures related to fair value measurements, the Company does not expect the adoption of this guidance to have a material impact on its financial statements. ā Reference Rate Reform ā In March 2020, the FASB issued new guidance to temporarily ease the potential burden in accounting for reference rate reform. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rates that are expected to be discontinued, such as the London Interbank Offered Rate ("LIBOR"). The guidance was effective upon issuance and generally can be applied through December 31, 2022. The Company expects to elect optional expedients and exceptions provided by the guidance, as needed, related to its debt instruments, which include interest rates based on a LIBOR rate. The Company will evaluate and disclose the impact of this guidance in the period of election, as well as the nature and reason for doing so. |
Revenue
Revenue | 12 Months Ended |
Apr. 30, 2020 | |
Revenue | |
Revenue | 2. Revenue ā Revenue Recognition ā 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 Note 18, āSegments,ā for information regarding disaggregation of revenue, including revenue by product and by geographic area. ā Performance Obligations ā The Company satisfies its performance obligations at a point in time, which is upon delivery of products. The Companyās 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. ā The Companyās contracts with customers involve performance obligations that are one year or less. Therefore, the Company applied the standardās optional exemption that permits the omission of information about its unfulfilled performance obligations as of the balance sheet dates. ā Significant Judgements ā The Companyās 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 the transaction price 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. ā Contract Balances Receivables from contracts with customers were $393.6 million and $431.4 million as of April 30, 2020 and 2019, respectively. The Company did not have material amounts of contract assets or liabilities as of April 30, 2020 or 2019. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Apr. 30, 2020 | |
Business Acquisitions | |
Business Acquisitions | 3. Business Acquisitions Fiscal 2020 Acquisitions ā ā ā ā ā ā Company Name Form of Acquisition Date of Acquisition J.P. Hart Lumber Company ā Purchase of net assets ā June 3, 2019 Rigney Building Supplies Ltd. ā Purchase of 100% of outstanding common stock ā November 1, 2019 Trowel Trades Supply, Inc. ā Purchase of net assets ā February 1, 2020 ā ā ā ā ā ā ā ā Preliminary ā ā Acquisition ā ā Accounting ā ā (in thousands) Cash ā $ 713 Trade accounts and notes receivable ā 5,149 Inventories ā 7,194 Other current assets ā 72 Property and equipment ā 6,788 Customer relationships ā ā 4,252 Tradenames ā 644 Goodwill ā 5,291 Liabilities assumed ā (5,028) Fair value of consideration transferred ā $ 25,075 ā ā Fiscal 2019 Acquisitions Acquisition of Titan On June 1, 2018, the Company acquired all of the outstanding equity interests of WSB Titan (āTitanā), a distributer of wallboard, lumber, insulation and other complementary commercial and residential building materials. Titan is a gypsum specialty dealer with 30 locations across five provinces in Canada. The stated purchase price was $627.0 million ($800.0 million Canadian dollars). As part of the consideration, certain members of Titanās To finance this transaction, on June 1, 2018, the Company entered into a Third Amendment to its First Lien Credit Agreement (the āThird Amendmentā) 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 Based Lending Facility (āABL Facilityā). The net proceeds from the new first lien term loan facility, ABL Facility and cash on hand were used to repay the Companyās 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 $611.1 million, after adjusting for foreign currency changes in the stated purchase price and other fair value changes, which consisted of $581.5 million in cash and $29.6 million for the fair value of the 1.1 million Exchangeable Shares. See Note 11, āStockholdersā Equity,ā 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 were based on performance of Titanās business and were substantially paid in cash in fiscal 2020. The following table summarizes the acquisition accounting: ā ā ā ā ā ā ā ā ā ā ā ā Preliminary ā ā ā ā Final ā ā Acquisition ā Adjustments/ ā Acquisition ā ā Accounting ā Reclassifications ā Accounting ā ā (in thousands) Cash $ 5,573 ā $ ā ā $ 5,573 Trade accounts and notes receivable ā 84,039 ā 970 ā 85,009 Inventories ā ā 60,272 ā ā ā ā ā 60,272 Prepaid and other current assets ā 8,334 ā ā ā 8,334 Property and equipment ā 37,263 ā ā ā 37,263 Goodwill ā ā 196,524 ā ā (2,726) ā ā 193,798 Intangible assets ā ā 289,423 ā ā (2,469) ā ā 286,954 Accounts payable and accrued expenses ā ā (40,833) ā ā (970) ā ā (41,803) Contingent consideration ā ā (12,039) ā ā ā ā ā (12,039) Deferred income taxes ā (14,337) ā 2,085 ā (12,252) Fair value of consideration transferred ā $ 614,219 ā $ (3,110) ā $ 611,109 ā 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 is assigned to the Companyās geographic divisions reportable segment. The goodwill is not deductible for income tax purposes. ā Other Fiscal 2019 Acquisitions ā On August 7, 2018, the Company acquired Charles G. Hardy, Inc. (āCGHā). CGH is an interior building products distributor in Paramount, California. On March 4, 2019, the Company acquired Commercial Builders Group, LLC (āCBGā). CBG is an interior building products distributor in LaPlace, Louisiana. The impact of these acquisitions is not material to the Companyās Consolidated Financial Statements. Fiscal 2018 Acquisitions In fiscal 2018, the Company completed the following acquisitions, with an aggregate purchase price of $24.4 million of cash consideration. The purpose of these acquisitions was to expand the geographical coverage of the Company and grow the business. ā ā ā ā ā ā Company Name Form of Acquisition Date of Acquisition ASI Building Products, LLC ā Purchase of net assets ā August 1, 2017 Washington Builders Supply, Inc. ā Purchase of net assets ā October 2, 2017 Southwest Building Materials, Ltd. ā Purchase of net assets ā December 4, 2017 California-based distribution business of Grabber Construction Products, Inc. ā Purchase of net assets ā April 2, 2018 CMH Distributing, Inc. ā Purchase of net assets ā April 2, 2018 ā The following table summarizes the acquisition accounting: ā ā ā ā ā ā ā ā ā ā ā ā ā Preliminary ā ā ā ā Final ā ā Acquisition ā Adjustments/ ā Acquisition ā ā Accounting ā Reclassifications ā Accounting ā ā (in thousands) Trade accounts and notes receivable ā $ 4,872 ā $ ā ā $ 4,872 Inventories ā ā 4,321 ā ā ā ā ā 4,321 Property and equipment ā 1,081 ā ā ā 1,081 Tradenames ā 1,000 ā ā ā 1,000 Vendor agreement ā 1,000 ā ā ā 1,000 Other intangible assets ā 620 ā ā ā 620 Customer relationships ā 9,358 ā ā ā 9,358 Goodwill ā 4,145 ā 8 ā 4,153 Liabilities assumed ā (1,951) ā ā ā (1,951) Fair value of consideration transferred ā $ 24,446 ā $ 8 ā $ 24,454 ā Goodwill recognized is attributable to synergies achieved through the streamlining of operations combined with improved margins attainable through increased market presence and is all attributable to our geographic divisions reportable segment. The goodwill related to these acquisitions is deductible for U.S. federal income tax purposes. ā |
Property and Equipment
Property and Equipment | 12 Months Ended |
Apr. 30, 2020 | |
Property and Equipment | |
Property and Equipment | 4. Property and Equipment The Companyās property and equipment consisted of the following as of April 30, 2020 and 2019: ā ā ā ā ā ā ā ā ā April 30, ā 2020 2019 ā ā (in thousands) Land ā $ 52,581 ā $ 52,031 Buildings and leasehold improvements ā 110,322 ā 99,300 Machinery and equipment ā 300,133 ā 252,504 Construction in progress ā 985 ā 2,097 Total property and equipment ā 464,021 ā 405,932 Less: accumulated depreciation and amortization ā 158,554 ā 123,583 Total property and equipment, net of accumulated depreciation ā $ 305,467 ā $ 282,349 ā Depreciation expense for property and equipment, which includes amortization of property under finance leases, was $51.3 million, $46.5 million and $24.1 million during the years ended April 30, 2020, 2019 and 2018 respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Apr. 30, 2020 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets Goodwill ā ā ā ā ā ā Carrying ā ā Amount ā ā (in thousands) Balance as of April 30, 2018 ā $ 427,645 Goodwill recognized from acquisitions ā ā 196,267 Purchase price adjustments from prior periods ā ā 8 Translation adjustment ā (6,593) Balance as of April 30, 2019 ā ā 617,327 Impairment of goodwill ā ā (63,074) Goodwill recognized from acquisitions ā ā 5,291 Translation adjustment ā (6,471) Balance as of April 30, 2020 ā $ 553,073 ā All goodwill relates to our geographic divisions reportable segment. ā The Company recognized a $63.1 million non-cash impairment charge to write off goodwill related to its Canada reporting unit in conjunction with its annual goodwill impairment test performed in the fourth quarter of fiscal 2020. impairment of goodwill in the Consolidated Statement of Operations and Comprehensive Income (Loss) for the year ended April 30, 2020. The primary factors contributing to the impairment was an increase in the discount rate and a decrease in market multiples, combined with a decrease in the reporting unitās forecasted near-term cash flows, primarily resulting from COVID-19 driven economic uncertainty. Consistent with the Companyās adoption of the new goodwill guidance in the fourth quarter of 2020, the impairment charge was equal to the excess of the reporting unitās carrying value over its fair value. As of April 30, 2020, the Company had $120.9 million of remaining goodwill related to its Canada reporting unit. The ā The Company identified reporting units for evaluating goodwill for the fiscal annual impairment test, which were Central, Midwest, Northeast, Southern, Southeast, Western and Canada. Each of these reporting units constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results. The Company evaluates its reporting units on an annual basis. ā The Company estimated the fair values of its reporting units based on weighting of the income and market approaches. These models use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Under the income approach, we calculate the fair value of the reporting unit based on the present value of estimated cash flows using a discounted cash flow method. The significant assumptions used in the discounted cash flow method included internal forecasts and projections developed by management for planning purposes, available industry/market data, discount rates and the growth rate to calculate the terminal value. Under the market approaches, the fair value was estimated using the guideline company method. The Company selected guideline companies in the industry in which each reporting unit operates. The Company primarily uses revenue and EBITDA multiples based on the multiples of the selected guideline companies. ā Intangible Assets ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Estimated ā Weighted ā April 30, 2020 ā ā Useful ā Average ā Gross ā ā ā Net ā ā Lives ā Amortization ā Carrying ā Accumulated ā Carrying ā (years) Period Amount Amortization Value ā ā (dollars in thousands) Customer relationships ā 5 - 16 ā 12.8 ā $ 516,928 ā $ 270,029 ā $ 246,899 Definite-lived tradenames ā 5 - 20 ā 16.3 ā 55,654 ā 10,474 ā 45,180 Vendor agreements ā 8 - 10 ā 8.3 ā 6,644 ā 4,567 ā 2,077 Developed technology ā 5 ā 4.9 ā ā 5,036 ā ā 1,963 ā ā 3,073 Leasehold interests ā 1 - 15 ā 7.6 ā 3,679 ā 2,101 ā 1,578 Other ā 3 - 5 ā 3.4 ā ā 4,157 ā ā 2,447 ā ā 1,710 Totals ā ā ā ā ā $ 592,098 ā $ 291,581 ā $ 300,517 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Estimated ā Weighted ā April 30, 2019 ā ā Useful ā Average ā Gross ā ā ā Net ā ā Lives Amortization Carrying Accumulated Carrying ā (years) Period Amount Amortization Value ā ā (dollars in thousands) Customer relationships ā 5 - 16 ā 12.8 ā $ 520,703 ā $ 214,044 ā $ 306,659 Definite-lived tradenames ā 5 - 20 ā 16.3 ā 56,018 ā 6,993 ā 49,025 Vendor agreements ā 8 - 10 ā 8.3 ā 6,644 ā 3,761 ā 2,883 Developed technology ā 5 ā 4.9 ā ā 5,209 ā ā 971 ā ā 4,238 Leasehold interests ā 1 - 15 ā 7.6 ā 3,707 ā 1,502 ā 2,205 Other ā 3 - 5 ā 3.4 ā ā 4,118 ā ā 1,182 ā ā 2,936 Totals ā ā ā ā ā $ 596,399 ā $ 228,453 ā $ 367,946 ā 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 $65.2 million, $71.0 million and $41.5 million during the years ended April 30, 2020, 2019 and 2018, respectively, and is recorded in depreciation and amortization expense in the Consolidated Statements of Operations and Comprehensive Income (Loss). ā Based on the current amount of definite-lived intangible assets, the Company expects to record amortization expense of $55.2 million, $46.1 million, $38.3 million, $31.2 million, $25.7 million and $104.0 million during the years ending April 30, 2021, 2022, 2023, 2024, 2025 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. ā The Companyās indefinite-lived intangible assets, other than goodwill, consist of tradenames that had a carrying amount of $61.4 million as of April 30, 2020 and 2019. |
Other Accrued Expenses and Curr
Other Accrued Expenses and Current Liabilities | 12 Months Ended |
Apr. 30, 2020 | |
Other Accrued Expenses and Current Liabilities | |
Other Accrued Expenses and Current Liabilities | 6. Other Accrued Expenses and Current Liabilities The Companyās other accrued expenses and current liabilities consisted of the following as of April 30, 2020 and 2019: ā ā ā ā ā ā ā ā ā April 30, ā 2020 2019 ā ā (in thousands) Insurance related liabilities ā $ 12,922 ā $ 14,110 Customer rebates payable ā 10,211 ā 7,944 Sales taxes payable ā 9,493 ā 10,448 Reserve for sales returns ā ā 4,081 ā ā 4,701 Income taxes payable ā ā 2,844 ā ā 14,063 Real estate and personal property taxes ā 2,182 ā 2,010 Contingent consideration ā 2,018 ā 13,073 Other ā 20,061 ā 13,499 Total other accrued expenses and current liabilities ā $ 63,812 ā $ 79,848 ā |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Apr. 30, 2020 | |
Long-Term Debt | |
Long-Term Debt | 7. Long-Term Debt The Companyās long-term debt consisted of the following as of April 30, 2020 and 2019: ā ā ā ā ā ā ā ā ā ā April 30, ā 2020 2019 ā ā (in thousands) Term Loan Facility (1) (2) ā $ 866,301 ā $ 972,650 ABL Facility ā 80,000 ā 43,972 Finance lease obligations ā 128,767 ā 109,286 Installment notes at fixed rates up to 5.0%, due in monthly and annual installments through 2024 (3) ā 15,218 ā 15,287 Canadian Facility ā 7,194 ā ā ā Carrying value of debt ā 1,097,480 ā 1,141,195 Less current portion ā 50,201 ā 42,118 Long-term debt ā $ 1,047,279 ā $ 1,099,077 (1) Net of unamortized discount of $1,602 and $2,149 as of April 30, 2020 and 2019, respectively. (2) Net of deferred financing costs of $9,000 and $12,072 as of April 30, 2020 and 2019, respectively. (3) Net of unamortized discount of $1,098 and $1,200 as of April 30, 2020 and 2019, respectively. ā ā ā Term Loan Facility The Companyās wholly-owned subsidiaries, GYP Holdings II Corp., as parent guarantor (in such capacity, āHoldingsā), and GYP Holdings III Corp., as borrower (in such capacity, the āBorrowerā and, together with Holdings and the Subsidiary Guarantors (as defined below), the āLoan Partiesā), have a senior secured first lien term loan facility (the āTerm Loan Facilityā). The Term Loan Facility permits the Borrower to add one or more incremental term loans up to a fixed amount of $100.0 million plus a certain amount depending on a secured first lien leverage ratio test included in the Term Loan Facility. As of April 30, 2020, the Term Loan Facility amortized in nominal quarterly installments of $2.5 million, or 0.25% of the aggregate principal amount of the Term Loan Facility and had a maturity date of June 1, 2025. Provided that the individual affected lenders agree accordingly, the maturities of the Term Loan Facility may, upon the Borrowerās request and without the consent of any other lender, be extended. GYP Holdings II Corp., the sole entity between borrower and financial reporting entity, is a holding company with no other operations, assets, liabilities or cash flows other than through its ownership of GYP Holdings III Corp. (borrower) and its operating subsidiaries. On June 7, 2017, the Company entered into the Second Amendment to First Lien Credit Agreement (the āSecond Amendmentā), among the Borrower, Holdings, the other Loan Parties party thereto, Credit Suisse AG, as administrative agent and as 2017 incremental first lien lender. The Second Amendment provided for a new first lien term loan facility in the aggregate principal amount of $577.6 million due on April 1, 2023 with interest at a floating rate based on LIBOR, with a 1.00% floor, plus 3.00%, representing a fifty On June 1, 2018, the Company entered into the Third Amendment that provided for a new first lien term loan facility 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 Companyās existing Term Loan Facility outstanding balance of $571.8 million and to finance the acquisition of Titan. On September 30, 2019, the Company made a $50.0 million prepayment of outstanding principal amount of its Term Loan Facility. On March 6, 2020, the Company made an additional $50.0 million prepayment of outstanding principal amount of its Term Loan Facility. The Company recorded total write-offs of debt discount and deferred financing fees of $1.3 million, which is included in write-off of discount and deferred financing fees in the Consolidated Statement of Operations and Comprehensive Income . Asset Based Lending Facility The Company has an ABL Facility that provides for aggregate revolving commitments of $445.0 million (including same day swing line borrowings of $44.5 million). GYP Holdings III Corp. is the lead borrower (in such capacity, the āLead Borrowerā). Extensions of credit under the ABL Facility are limited by a borrowing base calculated periodically based on specified percentages of the value of eligible inventory and eligible accounts receivable, subject to certain reserves and other adjustments. On September 30, 2019, the Company amended its ABL Facility to, among other things, increase the revolving commitments from $345.0 million to $445.0 million, extend the maturity date to September 30, 2024 and remove the highest pricing level applicable to borrowings under the ABL Facility. The other material terms of the ABL Facility remained unchanged. At the Companyās 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 April 30, 2020, the applicable rate of interest was 1.82%. The ABL Facility also contains an unused commitment fee subject to utilization, as included in the ABL Facility agreement. In March 2020, the Company drew $80.0 million under the ABL Facility as a precautionary measure to provide financial flexibility and liquidity in response to volatile financial market conditions resulting from the COVID-19 pandemic. As of April 30, 2020, the Company had available borrowing capacity of $353.9 million under the ABL Facility. The ABL Facility will mature on September 30, 2024 unless the individual affected lenders agree to extend the maturity of their respective loans under the ABL Facility upon the Companyās request and without the consent of any other lender. The ABL Facility contains a cross default provision with the Term Loan Facility. Terms of the ABL Facility and Term Loan Facilities Collateral The ABL Facility is collateralized by (a) first priority perfected liens on the following assets of the Loan Parties: (i) accounts receivable; (ii) inventory; (iii) deposit accounts; (iv) cash and cash equivalents; (v) tax refunds and tax payments; (vi) chattel paper; and (vii) documents, instruments, general intangibles, securities accounts, books and records, proceeds and supporting obligations related to each of the foregoing, subject to certain exceptions (collectively, āABL Priority Collateralā) and (b) second priority perfected liens on the remaining assets of the Loan Parties not constituting ABL Priority Collateral, subject to customary exceptions (collectively, āTerm Priority Collateralā) and excluding real property. The Term Loan Facility is collateralized by (a) first priority liens on the Term Priority Collateral and (b) second priority liens on the ABL Priority Collateral, subject to customary exceptions. ā ā Prepayments ā 100% of the net proceeds of certain asset sales and issuances or incurrences of nonpermitted indebtedness; and ā 50% of annual excess cash flow for any fiscal year, such percentage to decrease to 25% or 0% depending on the attainment of certain total leverage ratio targets. As of April 30, 2020, there was no prepayment required related to excess cash flow. The ABL Facility may be prepaid at the Companyās option at any time without premium or penalty and will be subject to mandatory prepayment if the outstanding ABL Facility exceeds the lesser of the (i) borrowing base and (ii) the aggregate amount of commitments. Mandatory prepayments do not result in a permanent reduction of the lendersā commitments under the ABL Facility. Guarantees Covenants The Term Loan Facility contains a number of covenants that limit the Companyās ability and the ability of the Companyās restricted subsidiaries, as described in the respective credit agreement, to: incur more indebtedness; pay dividends, redeem or repurchase 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 covenants as of April 30, 2020. Events of Default ā Canadian Revolving Credit Facility Installment Notes Debt Maturities As of April 30, 2020, the maturities of long-term debt were as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Term Loan ā ā ABL ā Finance ā Installment ā Canadian ā ā ā ā Facility(1) ā Facility Leases Notes(2) ā Facility ā Total Year ending April 30, ā (in thousands) 2021 ā $ 9,968 ā $ ā ā $ 35,530 ā $ 4,874 ā $ ā ā $ 50,372 2022 ā 9,968 ā ā ā ā ā 32,547 ā ā 4,438 ā ā ā ā 46,953 2023 ā 9,968 ā ā ā ā ā 27,062 ā ā 4,404 ā ā 7,194 ā 48,628 2024 ā 9,968 ā ā ā ā ā 19,974 ā ā 1,781 ā ā ā ā 31,723 2025 ā 9,968 ā ā 80,000 ā ā 9,983 ā ā 819 ā ā ā ā 100,770 Thereafter ā 827,063 ā ā ā ā ā 3,671 ā ā ā ā ā ā ā 830,734 ā ā $ 876,903 ā $ 80,000 ā $ 128,767 ā $ 16,316 ā $ 7,194 ā $ 1,109,180 ā (1) (2) |
Leases
Leases | 12 Months Ended |
Apr. 30, 2020 | |
Leases | |
Leases | 8. Leases ā The Company leases office and warehouse facilities, distribution equipment and its fleet of vehicles. The Companyās leases have lease terms ranging from one to eleven years . The Companyās facility leases generally contain renewal options for periods ranging from one to five years . The exercise of lease renewal options is typically at the Companyās sole discretion. The Company does not recognize ROU assets or lease liabilities for renewal options unless it is determined that the Company is reasonably certain of exercising renewal options at lease inception. Certain of the Companyās equipment leases include options to purchase the leased property and certain of the Companyās equipment leases contain residual value guarantees. Any residual value payment deemed probable is included in the Companyās lease liability. The Companyās lease agreements do not contain any material restrictive covenants. ā The Company determines if an arrangement is a lease at inception and evaluates whether the lease meets the classification criteria of a finance or operating lease. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liabilities and long-term operating lease liabilities in the Consolidated Balance Sheet. Finance leases are included in property and equipment, current portion of long-term debt and long-term debt in the Consolidated Balance Sheet. ā Lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. For leases that do not provide an implicit rate, the Company uses its incremental borrowing rate in determining the present value of future payments. The Company determines its incremental borrowing rate based on the applicable lease terms and the current economic environment. Lease ROU assets also include any lease payments made in advance and excludes lease incentives and initial direct costs incurred. Some of the Companyās lease agreements contain rent escalation clauses (including index-based escalations), rent holidays, capital improvements funding or other lease concessions. Lease expense is recognized on a straight-line basis based on the fixed component over the lease term. Variable lease costs consist primarily of taxes, insurance and common area or other maintenance costs for leased facilities and vehicles and equipment, which are paid based on actual costs incurred. ā The components of lease expense were as follows: ā ā ā ā ā ā ā Year ā ā Ended ā ā April 30, 2020 ā ā (in thousands) Finance lease cost: ā ā ā Amortization of right-of-use assets ā $ 24,352 Interest on lease liabilities ā ā 13,316 Operating lease cost ā ā 42,846 Variable lease cost ā ā 12,555 Total lease cost ā $ 93,069 ā Operating lease cost, including variable lease cost, is included in selling, general and administrative expenses; amortization of finance ROU assets is included in depreciation and amortization; and interest on finance lease liabilities is included in interest expense in the Consolidated Statements of Operations and Comprehensive Income (Loss). Rent expense under operating leases was $53.5 million and $63.9 million during the years ended April 30, 2019 and 2018, respectively, and is included in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). Supplemental cash flow information related to leases was as follows: ā ā ā ā ā ā ā Year ā ā Ended ā ā April 30, 2020 ā ā (in thousands) Cash paid for amounts included in the measurement of lease liabilities ā ā ā Operating cash flows from operating leases ā $ 42,150 Operating cash flows from finance leases ā ā 13,316 Financing cash flows from finance leases ā ā 25,275 Right-of-use assets obtained in exchange for lease obligations ā ā ā Operating leases ā ā 38,143 Finance leases ā ā 50,484 ā Other information related to leases was as follows: ā ā ā ā ā ā ā ā ā ā April 30, ā ā 2020 2019 ā ā (in thousands) Finance leases included in property and equipment ā ā ā ā ā ā Property and equipment ā $ 171,380 ā $ 134,931 Accumulated depreciation ā ā (41,737) ā ā (27,686) Property and equipment, net ā $ 129,643 ā $ 107,245 Weighted-average remaining lease term (years) ā ā ā ā ā ā Operating leases ā ā 4.9 ā ā ā Finance leases ā ā 3.6 ā ā ā Weighted-average discount rate ā ā ā ā ā ā Operating leases ā ā 5.5 % ā ā Finance leases ā ā 5.0 % ā ā ā Future minimum lease payments under non-cancellable leases as of April 30, 2020 were as follows: ā ā ā ā ā ā ā ā ā Finance Operating Year Ending April 30, ā (in thousands) 2021 ā $ 46,116 ā $ 38,960 2022 ā 39,328 ā 30,387 2023 ā 30,525 ā 23,655 2024 ā 21,234 ā 18,775 2025 ā 10,544 ā 12,154 Thereafter ā 3,647 ā 16,848 Total lease payments ā ā 151,394 ā ā 140,779 Less imputed interest ā 22,627 ā 18,134 Total ā $ 128,767 ā $ 122,645 ā |
Retirement Plan
Retirement Plan | 12 Months Ended |
Apr. 30, 2020 | |
Retirement Plan | |
Retirement Plan | 9. Retirement Plan The Company maintains a 401(k) defined contribution retirement plan for its employees. Participants are allowed to choose from a selection of mutual funds in order to designate how both employer and employee contributions are invested. Under the plan, the Company matches 50% of each employeeās contributions on the first 4% of the employeeās compensation contributed. The Company contributed $5.3 million, $4.7 million and $4.3 million, during the years ended April 30, 2020, 2019 and 2018, respectively. In June 2020, the Company temporarily suspended matching contributions under the plan. ā |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2020 | |
Income Taxes | |
Income Taxes | 10. Income Taxes The following table presents the components of income before taxes for the years ended April 30, 2020, 2019 and 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā 2020 2019 2018 ā ā (in thousands) United States ā $ 106,850 ā $ 62,878 ā $ 83,854 Foreign ā ā (60,525) ā ā 7,163 ā ā ā Income before taxes ā $ 46,325 ā $ 70,041 ā $ 83,854 ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā 2020 2019 2018 ā ā (in thousands) Current ā ā ā ā ā ā ā ā ā Federal ā $ 12,537 ā $ 11,858 ā $ 30,827 Foreign ā ā 1,624 ā ā 13,739 ā ā ā State ā 7,857 ā 5,929 ā 6,409 Total current ā 22,018 ā 31,526 ā 37,236 Deferred ā ā ā ā ā ā ā ā ā Federal ā 8,986 ā 453 ā (14,796) Foreign ā ā (7,347) ā ā (16,931) ā ā ā State ā (713) ā (1,009) ā (1,557) Total deferred ā 926 ā (17,487) ā (16,353) Total provision for income taxes ā $ 22,944 ā $ 14,039 ā $ 20,883 ā The following table summarizes the significant differences between the U.S. federal statutory tax rate and the Companyās effective tax rate for financial statement for the years ended April 30, 2020, 2019 and 2018: ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā 2020 2019 2018 ā ā (in thousands) Federal income taxes at statutory rate ā $ 9,747 ā $ 14,715 ā $ 25,492 State income taxes, net of federal income tax benefit ā 4,054 ā 2,440 ā 1,900 Impact of foreign rate differences ā ā (2,861) ā ā 418 ā ā ā Impact of rate difference on impairment of goodwill ā ā 7,630 ā ā ā ā ā ā Net change in valuation allowance ā 9,070 ā 664 ā 151 Nondeductible meals & entertainment ā 592 ā 635 ā 822 Equity-based compensation ā ā (1,196) ā ā (53) ā ā ā GILTI ā ā 704 ā ā 241 ā ā ā Nondeductible transaction costs ā 90 ā 529 ā 2 Net deferred benefit due to Tax Cuts and Jobs Act ā ā ā ā ā ā ā ā (6,763) Intercompany interest expense ā ā (5,361) ā ā (5,255) ā ā ā Other ā 475 ā (295) ā (721) Total provision for income taxes ā $ 22,944 ā $ 14,039 ā $ 20,883 ā The tax effects of temporary differences, which give rise to deferred income taxes as of April 30, 2020 and 2019 are as follows: ā ā ā ā ā ā ā ā ā April 30, ā 2020 2019 Deferred income tax assets: ā (in thousands) Allowances on accounts and notes receivable ā $ 2,016 ā $ 2,306 Accrued payroll and related costs ā 1,859 ā 1,577 Insurance reserves ā 2,501 ā 1,746 Inventory costs ā 2,630 ā 2,066 Deferred compensation ā ā 7,426 ā ā 6,854 Equity compensation ā 2,695 ā 2,944 Derivative instrument ā 7,850 ā 1,358 Acquisition related costs ā 1,311 ā 1,779 Net operating loss carry-forwards ā 1,595 ā 1,745 Disallowed interest expense ā ā 736 ā ā 2,507 Investment in partnerships ā ā 16,535 ā ā 4,676 Deferred rent ā 1,112 ā 604 Noncompete agreements ā 120 ā 133 Other deferred tax assets, net ā 1,424 ā 1,394 Total deferred income tax assets ā 49,810 ā 31,689 Less: Valuation allowance ā (10,183) ā (1,112) Total deferred income tax assets, net of valuation allowance ā 39,627 ā 30,577 Deferred income tax liabilities: ā ā ā ā ā ā Amortization of intangible assets ā (18,917) ā (22,950) Rebates ā ā (400) ā ā (72) Depreciation ā (21,508) ā (10,495) Deferred financing costs ā (1,582) ā (2,075) Other deferred tax liabilities, net ā (334) ā ā (535) Total deferred income tax liabilities ā (42,741) ā (36,127) Deferred income tax liabilities, net ā $ (3,114) ā $ (5,550) ā Tax Cuts and Job Act. ā As of April 30, 2018, the Company was still assessing the overall impact of the Tax Act on its financial statements and had not completed its accounting for the tax effects of the Tax Act. The Company reported provisional amounts reflecting reasonable estimates for the re-measurement of net deferred tax liabilities as of April 30, 2018 due to the reduction in the corporate rate. The Company recorded a provisional income tax benefit of $6.7 million for this re-measurement for the year ended April 30, 2018, which is included in provision for income taxes in the Consolidated Statements of Operations and Comprehensive Income (Loss). This represented a $1.1 million decrease from the provisional amount recorded during the nine months ended January 31, 2018. During the year ended April 30, 2019, the Company completed its analysis to determine the effects of the Tax Act. As a result, the Company recorded a $0.1 million income tax benefit during the year ended April 30, 2019 related to tax adjustments made in accordance with SAB 118 with respect to the adjustment of its original provisional estimate of the impact of the Tax Act. ā The Company is subject to provisions of the Tax Act related to current tax on global intangible low-taxed income (āGILTIā) 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. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. ā As of April 30, 2020, the Companyās assertion has not changed from the year ended April 30, 2019 and does not intend to permanently reinvest its accumulated earnings in its non-U.S. subsidiaries and will continue to periodically distribute the earnings on an as needed basis. The Company had no unremitted earnings in the current year. To the extent there are unremitted earnings in future years, the Company does not anticipate significant tax consequences as there is sufficient paid up capital in Canada to return the cash free of withholding taxes. ā Effective tax rate. ā NOLs Valuation allowance. Management makes an assessment to determine if its deferred tax assets are more likely than not to be realized. Valuation allowances are established if management believes that it is more likely than not the related tax benefits will not be realized. The valuation allowance as of April 30, 2020 and 2019 was $10.2 million and $1.1 million, respectively. During the year ended April 30, 2020, the Company recorded $7.6 million of valuation allowance related to a portion of the Titan outside basis difference that was created as a result of the impairment of goodwill recognized during the year ended April 30, 2020. The remaining valuation allowance as of April 30, 2020 and 2019 primarily relates to state net operating loss carry forwards. Uncertain tax positions. As of April 30, 2020, the tax years ended April 30, 2020, 2019, 2018 and 2017 remain subject to examination by the U.S. Internal Revenue Service. In states in which the Company conducts business, the statute of limitation periods for examination generally vary from three |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Apr. 30, 2020 | |
Stockholders' Equity | |
Stockholders' Equity | 11. Stockholdersā Equity ā Exchangeable Shares ā 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 ranked senior to the Companyās common stock with respect to dividend rights and rights on liquidation, dissolution and winding-up. The holders of the Exchangeable Shares were entitled to receive dividends or distributions that are equal to any dividends or distributions on the Companyās common stock. The holders of the Exchangeable Shares did not have voting rights. ā The Exchangeable Shares contained 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 were prevented from transferring such GMS common stock for one year from the Titan acquisition date. On June 13, 2019, the holders of the Exchangeable Shares exchanged all of the Exchangeable Shares for 1.1 million shares of the Companyās common stock. Following such exchange, the Exchangeable Shares ceased to be outstanding. ā Share Repurchase Program ā On November 30, 2018, the Companyās Board of Directors authorized a common stock repurchase program to repurchase up to $75.0 million outstanding common stock. The Company may conduct repurchases under the share repurchase program through open market transactions, under trading plans in accordance with SEC Rule 10b5-1 and/or in privately negotiated transactions, in compliance with Rule 10b-18 under the Exchange Act of 1934, as amended, subject to a variety of factors, including, but not limited to, our liquidity, credit availability, general business and market conditions, our debt covenant restrictions and the availability of alternative investment opportunities. ā The Company did not repurchase any shares of its common stock during the year ended April 30, 2020. The Company repurchased 1.0 million shares of its common stock for $16.5 million during the year ended April 30, 2019 pursuant to its share repurchase program. The repurchased common stock was retired. As of April 30, 2020, the Company had $58.5 million remaining under . ā Secondary Public Offering ā On September 9, 2019, AEA Investors LP and its affiliates (āAEAā) completed a secondary public offering of 6.8 million shares of the Companyās common stock at a price to the public of $27.20 per share, representing all of AEAās remaining ownership in the Company. The Company did not receive any proceeds from the sale of its common stock in the offering by AEA. As a result of the offering, AEA no longer has the right to nominate any directors to the Companyās board of directors pursuant to the Company stockholdersā agreement. ā Accumulated Other Comprehensive Income (Loss) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Accumulated ā ā Foreign ā Derivative ā Other ā ā Currency ā Financial ā Comprehensive ā ā Translation ā Instruments ā Income (Loss) ā ā (in thousands) Balance as of April 30, 2017 ā $ ā ā $ (884) ā $ (884) Other comprehensive income before reclassification ā ā ā ā ā 309 ā 309 Reclassification to earnings from accumulated other comprehensive (loss) income ā ā ā ā ā 1,016 ā 1,016 Balance as of April 30, 2018 ā ā ā ā ā 441 ā ā 441 Other comprehensive loss before reclassification ā ā (22,320) ā ā (5,423) ā ā (27,743) Reclassification to earnings from accumulated other comprehensive (loss) income ā ā ā ā ā 728 ā ā 728 Balance as of April 30, 2019 ā ā (22,320) ā ā (4,254) ā ā (26,574) Other comprehensive loss before reclassification ā ā (18,257) ā ā (20,251) ā ā (38,508) Reclassification to earnings from accumulated other comprehensive (loss) income ā ā ā ā ā ā ā ā ā Balance as of April 30, 2020 ā $ (40,577) ā $ (24,505) ā $ (65,082) ā |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Apr. 30, 2020 | |
Equity-Based Compensation | |
Equity-Based Compensation | 12. Equity-Based Compensation General The Company has granted options and restricted stock units to employees and non-employee directors to purchase the Companyās common stock under various stock incentive plans. Stock options are granted with an exercise price equal to the closing market value of GMS common stock on the date of grant, have a term of ten years , and vest over terms of three to four years from the date of grant. Restricted stock units are granted with various vesting terms that range from one to three years from the date of grant. The Company intends to use authorized and unissued shares to satisfy share award exercises. ā Share-based compensation expense related to stock options and restricted stock units was $6.5 million, $3.6 million and $1.7 million during the years ended April 30, 2020, 2019 and 2018, respectively, and is included in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). ā Stock Option Awards ā The following table presents stock option activity as of and for the year ended April 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted ā ā ā ā ā ā Weighted ā Average ā ā ā ā ā ā ā Average ā Remaining ā Aggregate ā ā Number of ā Exercise ā Contractual ā Intrinsic ā ā Options ā Price ā Life (years) ā Value ā ā (shares and dollars in thousands) Outstanding as of April 30, 2019 2,080 ā $ 16.34 6.15 ā $ 7,615 Options granted 386 ā ā 21.63 ā Options exercised (874) ā 13.22 ā Options forfeited (105) ā 25.73 ā Options expired ā ā ā ā ā Outstanding as of April 30, 2020 1,487 ā $ 18.85 6.40 ā $ 3,895 Exercisable as of April 30, 2020 941 ā $ 16.32 4.98 ā $ 3,866 Vested and expected to vest as of April 30, 2020 1,481 ā $ 18.83 6.39 ā $ 3,895 ā The aggregate intrinsic value represents the value of the Companyās 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 years ended was $11.5 million, $1.6 million and $4.3 million, respectively. ā The fair value of stock options granted during the years ended April 30, 2020, 2019 and 2018 was estimated using the Black-Scholes option-pricing model with the following assumptions: ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā ā 2020 ā 2019 ā 2018 Volatility ā 49.86 % ā 33.71 % 30.86 % Expected life (years) ā 6.0 ā ā 6.0 ā 6.0 ā Risk-free interest rate ā 1.97 % ā 2.87 % 2.18 % Dividend yield ā ā % ā ā % ā % ā The weighted average grant date fair value of options granted during the years ended April 30, 2020, 2019 and 2018 was $10.59 per share, $9.72 per share and $12.81 per share, respectively. The expected volatility was based on historical and implied volatility. The expected life of stock options was based on previous history of exercises. The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the stock option. The expected dividend yield was 0% as we have not declared any common stock dividends to date and do not expect to declare common stock dividends in the near future. The fair value of the underlying common stock at the date of grant was determined based on the value of the Companyās closing stock price on the trading day immediately preceding the date of the grant. ā Restricted Stock Units ā The following table presents restricted stock unit activity for the year ended April 30, 2020: ā ā ā ā ā ā ā ā ā Weighted ā ā Number of ā Average ā ā Restricted ā Exercise ā ā Stock Units ā Price ā ā (shares in thousands) Outstanding as of April 30, 2019 ā 193 ā $ 25.48 Granted ā 233 ā ā 21.67 Vested ā (100) ā ā 24.48 Forfeited ā (40) ā ā 25.29 Outstanding as of April 30, 2020 ā 286 ā $ 22.71 ā As of April 30, 2020, there was $3.8 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 1.8 years . Employee Stock Purchase Plan During the year ended April 30, 2018, the Company established an employee stock purchase plan (āESPPā), the terms of which allow for qualified employees (as defined) to participate in the purchase of shares of the Companyās common stock at a price equal to 90% of the lower of the closing price at the beginning or end of the last day of the purchase period, which is a six-month period ending on December 31 and June 30 of each year. authorizes the issuance of a total During the years ended April 30, 2020 and 2019, 0.1 million and 0.1 million shares, respectively, of the Companyās common stock were purchased under the ESPP at an average price of $15.62 per share and $18.51 per shares, respectively. The Company recognized $0.5 million, $0.3 million and $0.1 million of stock-based compensation expense in during the years ended April 30, 2020, 2019 and 2018, respectively, related to the ESPP. |
Stock Appreciation Rights, Defe
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests | 12 Months Ended |
Apr. 30, 2020 | |
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests | |
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests | 13. 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 years ended April 30, 2020 and 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā Stock ā ā ā ā Redeemable ā ā Appreciation ā Deferred ā Noncontrolling ā ā Rights ā Compensation ā Interests ā ā (in thousands) Balance as of April 30, 2018 ā $ 21,944 ā $ 2,222 $ 16,170 Amounts redeemed ā ā (1,216) ā ā (715) ā ā (4,673) Change in fair value ā 2,730 ā 188 ā 1,001 Balance as of April 30, 2019 ā ā 23,458 ā ā 1,695 ā ā 12,498 Amounts redeemed ā (825) ā (108) ā (4,644) Change in fair value ā 1,572 ā 73 ā 446 Balance as of April 30, 2020 ā $ 24,205 ā $ 1,660 ā $ 8,300 ā ā ā ā ā ā ā ā ā ā Classified as current as of April 30, 2019 ā $ 1,355 ā $ 108 ā $ 1,569 Classified as long-term as of April 30, 2019 ā ā 22,103 ā ā 1,587 ā ā 10,929 ā ā ā ā ā ā ā ā ā ā Classified as current as of April 30, 2020 ā $ 624 ā $ ā ā $ ā Classified as long-term as of April 30, 2020 ā ā 23,581 ā ā 1,660 ā ā 8,300 ā Total expense related to these instruments was $2.1 million, $3.9 million and $4.0 million during the years ended April 30, 2020, 2019 and 2018, respectively, and was included in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). Stock Appreciation Rights Deferred Compensation Redeemable Noncontrolling Interests Upon the termination of employment or other triggering events including death or disability of the noncontrolling stockholders in the Companyās 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 subsidiaryās equity, including certain adjustments. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Apr. 30, 2020 | |
Derivative Instruments | |
Derivative Instruments | 14. Derivative Instruments ā Interest Rate Swap ā In February 2019, the Company entered into interest rate swap agreements with a notional amount of $500.0 million to convert the variable interest rate on a portion of its Term Loan Facility to a fixed 1-month LIBOR interest rate . The contracts were effective on and terminate on ā Foreign Currency Forward Contract ā In April 2018, in connection with the acquisition of Titan (see Note 3, āBusiness Acquisitionsā), the Company entered into a foreign currency forward contract to mitigate the foreign currency exchange risk associated with the purchase price that was denominated in Canadian dollars. The foreign currency forward contract effectively fixed the amount the Company paid for the purchase price denominated in Canadian dollars by contracting the Company to pay U.S. dollars and receive Canadian dollars on the notional amount. ā During the year ended April 30, 2018, the Company recognized a $5.1 million loss on the change in fair value of a foreign currency forward contract. During the year ended April 30, 2019, 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 on June 1, 2018. The losses are included within change in fair value of financial instruments in the Consolidated Statements of Operations and Comprehensive Income (Loss). |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 30, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | 15. Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis the estimated carrying amount and fair value of the Companyās liabilities measured at fair value on a recurring basis ā ā ā ā ā ā ā ā ā April 30, ā ā 2020 ā 2019 ā ā (in thousands) Interest rate swaps (Level 2) ā $ 32,218 ā $ 5,613 Stock appreciation rights (Level 3) ā ā 24,205 ā ā 23,458 Deferred compensation (Level 3) ā ā 1,660 ā 1,695 Noncontrolling interest holders (Level 3) ā ā 8,300 ā ā 12,498 Contingent consideration (Level 3) ā ā ā ā 12,354 ā Derivative instruments the Company ā Stock appreciation rights, deferred compensation and redeemable noncontrolling interests Contingent consideration Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis ā Disclosures are required for certain assets and liabilities that are measured at fair value on a nonrecurring basis in periods to initial recognition. Such measurements of fair value relate primarily to assets and liabilities measured at fair value in connection with business combinations and asset impairments. For more information on business combinations, see Note 3, āBusiness Acquisitions.ā a $63.1 million non-cash impairment charge to goodwill related to its Canada reporting unit. See Note 5, āGoodwill and Intangible Assets,ā for more information regarding the impairment of goodwill and the fair value methodology. Also during the fourth quarter of 2020, the Company initiated a restructuring plan to close one of its facilities and recorded a $1.9 million impairment of the operating lease right-of-use asset. There were no other material long-lived asset impairments during the years ended April 30, 2020, 2019 or 2018 . |
Transactions With Related Parti
Transactions With Related Parties | 12 Months Ended |
Apr. 30, 2020 | |
Transactions With Related Parties | |
Transactions With Related Parties | 16. Transactions With Related Parties The Company leases warehouse facilities from partnerships owned by certain stockholders of GMS Inc. and its subsidiaries. As of April 30, 2020, these leases had expiration dates through fiscal 2025. Rent expense related to these leases was $0.8 million, $0.8 million and $0.8 million during the years ended April 30, 2020, 2019 and 2018, respectively, and are included in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). As of April 30, 2020, future minimum payments under the terms of the leases aggregated to $1.2 million. The Company purchases inventories from Southern Wall Products, Inc. (āSWPā) on a continuing basis. Certain stockholders of the Company are stockholders of SWP. The Company purchased inventory from SWP for distribution in the amount of $14.3 million, $13.3 million and $14.0 million during the years ended April 30, 2020, 2019 and 2018, respectively. Amounts due to SWP for purchases of inventory for distribution as of April 30, 2020 and 2019 were $1.2 million and $1.2 million, respectively, and are included in accounts payable in the Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 17. Commitments and Contingencies General ā 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, āBusiness, Basis of Presentation and Summary of Significant Accounting Policiesā under the heading āInsurance Liabilities,ā the Company records liabilities for these claims, as well as assets for amounts recoverable from the insurer, for these claims covered by insurance. ā Favorable Class Action Settlement ā In February 2020, the Company received proceeds as part of a class action settlement against certain drywall manufacturers related to purchases made during calendar years 2012 and 2013. The Company recorded a gain on legal settlement of $14.0 million during the year ended April 30, 2020. |
Segments
Segments | 12 Months Ended |
Apr. 30, 2020 | |
Segments | |
Segments | 18. 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 (āCODMā) in order to assess performance and allocate resources The Company determined it has seven operating segments based on the Companyās seven geographic divisions, which are Central, Midwest, Northeast, Southern, Southeast, Western and Canada. The Company aggregates its operating segments into a single reportable segment based on similarities between the operating segmentsā 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 Companyās reportable segment, the Companyās consolidated results include both corporate activities and certain other activities. Corporate includes the Companyās 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 Companyās performance based on the periodic review of net sales, Adjusted EBITDA and certain other measures for each of the operating segments. In addition, the Company utilizes Adjusted EBITDA in certain calculations under the ABL Facility and the Term Loan Facility. The ABL Facility and the Term Loan Facility permit the Company 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 Annual Report on Form 10-K. See āManagementās Discussion and Analysis of Financial Condition and Results of Operations -- Non-GAAP Financial Measuresā for a further discussion of this non-GAAP measure. The following tables present segment results ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, 2020 ā ā ā ā April 30, 2020 ā ā ā ā ā ā Depreciation and ā Adjusted ā Total ā ā Net Sales ā Gross Profit ā Amortization ā EBITDA ā Assets ā ā (in thousands) Geographic divisions ā $ 3,213,938 ā $ 1,053,555 ā $ 114,279 ā $ 297,646 ā $ 2,264,208 Other ā 27,369 ā 9,659 ā 233 ā 2,113 ā 18,745 Corporate ā ā ā ā ā 2,021 ā ā ā 5,829 ā ā $ 3,241,307 ā $ 1,063,214 ā $ 116,533 ā $ 299,759 ā $ 2,288,782 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, 2019 ā ā ā ā April 30, 2019 ā ā ā ā ā Depreciation and ā Adjusted ā Total ā ā Net Sales ā Gross Profit ā Amortization ā EBITDA ā Assets ā ā (in thousands) Geographic divisions ā $ 3,090,314 ā $ 994,981 ā $ 114,558 ā $ 293,190 ā $ 2,125,518 Other ā 25,718 ā 9,138 ā 220 ā 2,479 ā 16,897 Corporate ā ā ā ā ā 2,681 ā ā ā 7,139 ā ā $ 3,116,032 ā $ 1,004,119 ā $ 117,459 ā $ 295,669 ā $ 2,149,554 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, 2018 ā ā ā ā April 30, 2018 ā ā ā ā ā Depreciation and ā Adjusted ā Total ā ā Net Sales ā Gross Profit ā Amortization ā EBITDA ā Assets ā ā (in thousands) Geographic divisions ā $ 2,487,557 ā $ 809,884 ā $ 64,491 ā $ 196,903 ā $ 1,434,371 Other ā 23,912 ā 8,692 ā 242 ā 2,355 ā 12,854 Corporate ā ā ā ā ā 797 ā ā ā 7,286 ā ā $ 2,511,469 ā $ 818,576 ā $ 65,530 ā $ 199,258 ā $ 1,454,511 ā The following table presents a reconciliation of net income to Adjusted EBITDA for the years ended April 30, 2020, 2019 and 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā ā 2020 2019 2018 ā ā (in thousands) Net income ā $ 23,381 ā $ 56,002 ā $ 62,971 Interest expense ā 67,718 ā ā 73,677 ā ā 31,395 Write-off of debt discount and deferred financing fees ā ā 1,331 ā ā ā ā ā 74 Interest income ā (88) ā ā (66) ā ā (177) Provision for income taxes ā 22,944 ā ā 14,039 ā ā 20,883 Depreciation expense ā 51,332 ā ā 46,456 ā ā 24,075 Amortization expense ā 65,201 ā ā 71,003 ā ā 41,455 Impairment of goodwill ā ā 63,074 ā ā ā ā ā ā Stock appreciation expense(a) ā ā 1,572 ā ā 2,730 ā ā 2,318 Redeemable noncontrolling interests(b) ā 520 ā ā 1,188 ā ā 1,868 Equity-based compensation(c) ā 7,060 ā ā 3,906 ā ā 1,695 Severance and other permitted costs(d) ā 5,733 ā ā 8,152 ā ā 581 Transaction costs (acquisitions and other)(e) ā 2,414 ā ā 7,858 ā ā 3,370 Loss (gain) on disposal and impairment of assets(f) ā 658 ā ā (525) ā ā (509) Effects of fair value adjustments to inventory(g) ā 575 ā ā 4,176 ā ā 324 Change in fair value of financial instruments(h) ā ā ā ā 6,395 ā ā 6,125 Gain on legal settlement ā ā (14,029) ā ā ā ā ā ā Secondary public offering costs(i) ā ā 363 ā ā ā ā ā 1,525 Debt transaction costs(j) ā ā ā ā ā 678 ā ā 1,285 Adjusted EBITDA ā $ 299,759 ā $ 295,669 ā $ 199,258 (a) Represents non-cash expense related to stock appreciation rights agreements. (b) Represents non-cash compensation expense related to changes in the fair 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 Term Loan Facility, including certain unusual, nonrecurring costs due to COVID-19. (e) Represents costs related to acquisitions paid to third parties. (f) The year ended April 30, 2020 includes a $1.9 million impairment of operating lease right-of-use assets resulting from a restructuring plan to close one of the Companyās facilities. (g) Represents the non-cash cost of sales impact of purchase accounting adjustments to increase inventory to its estimated fair value. (h) Represents the mark-to-market adjustments for derivative financial instruments. (i) Represents costs paid to third-party advisors related to secondary offerings of our common stock. (j) Represents costs paid to third-party advisors related to debt refinancing activities. ā ā Revenues by Product The following table presents Companyās net sales to external customers by main product line for the years ended April 30, 2020, 2019 and 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā ā 2020 ā 2019 ā 2018 ā ā (in thousands) Wallboard ā $ 1,329,775 $ 1,272,068 $ 1,109,552 Ceilings ā 475,827 451,695 387,360 Steel framing ā 502,122 506,805 411,630 Other products ā 933,583 885,464 602,927 Total net sales ā $ 3,241,307 $ 3,116,032 $ 2,511,469 ā Geographic Information The following table presents the Companyās net sales by major geographic area for the years ended April 30, 2020, 2019 and 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā 2020 2019 ā 2019 ā ā (in thousands) United States ā $ 2,805,920 $ 2,701,678 $ 2,511,469 Canada ā 435,387 414,354 ā Total net sales ā $ 3,241,307 $ 3,116,032 ā $ 2,511,469 ā The following table presents the Companyās property and equipment by major geographic area ā ā ā ā ā ā ā ā ā ā April 30, ā April 30, ā 2020 2019 ā ā (in thousands) United States ā $ 270,855 ā $ 249,857 Canada ā 34,612 32,492 Total property and equipment, net ā $ 305,467 $ 282,349 ā |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Apr. 30, 2020 | |
Earnings Per Common Share | |
Earnings Per Common Share | 19. Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per share of common stock for the years ended April 30, 2020, 2019 and 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā ā 2020 2019 2018 ā ā (in thousands, except per share data) Net income ā $ 23,381 ā $ 56,002 ā $ 62,971 Less: Net income allocated to participating securities ā ā 74 ā ā 1,382 ā ā ā Net income attributable to common stockholders ā $ 23,307 $ 54,620 ā $ 62,971 Basic earnings per common share: ā ā ā ā ā ā ā Basic weighted average common shares outstanding ā 41,853 ā 40,914 ā 41,015 Basic earnings per common share ā $ 0.56 ā $ 1.33 ā $ 1.54 Diluted earnings per common share: ā ā ā Basic weighted average common shares outstanding ā 41,853 ā 40,914 ā 41,015 Add: Common Stock Equivalents ā 651 ā 675 ā 1,148 Diluted weighted average common shares outstanding ā 42,504 ā 41,589 ā 42,163 Diluted earnings per common share ā $ 0.55 ā $ 1.31 ā $ 1.49 ā During the years ended April 30, 2020 and 2019, approximately 0.8 million and 0.6 million, respectively, stock options and restricted stock units were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive. Anti-dilutive securities could be dilutive in future periods. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Apr. 30, 2020 | |
Valuation and Qualifying Accounts | |
Valuation and Qualifying Accounts | 20. Valuation and Qualifying Accounts Allowances for Accounts Receivable ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance ā ā Charged to ā ā Balance ā ā at Beginning ā ā ā ā Other ā ā ā ā at End of ā ā of Period ā Provision ā Accounts(a) ā Deductions ā Period ā ā (in thousands) Fiscal Year Ended April 30, 2020 ā $ (6,432) ā $ (2,348) ā $ 938 ā $ 2,701 ā $ (5,141) Fiscal Year Ended April 30, 2019 ā ā (9,633) ā ā (1,064) ā ā 2,435 ā ā 1,830 ā ā (6,432) Fiscal Year Ended April 30, 2018 ā (9,851) ā (366) ā (596) ā 1,180 ā (9,633) (a) Charged to other accounts represents the net (increase) decrease for specifically reserved accounts, as well as the net change in reserves for sales discounts, service charges and sales returns. The adoption of the new revenue recognition guidance on May 1, 2018 resulted in a $3.6 million reclassification in the Consolidated Balance Sheet from trade accounts and notes receivable to other accrued expenses and current liabilities for estimated sales returns. This reclass is reflected in charged to other accounts for the fiscal year ended April 30, 2019. ā Valuation Allowance on Deferred Tax Assets Rollforward ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance Additions ā Balance ā ā at Beginning ā Charged to Costs ā ā ā at End of ā ā of Period ā and Expenses ā Deductions ā Period ā ā (in thousands) Fiscal Year Ended April 30, 2020 ā $ (1,112) ā $ (9,071) ā $ ā ā $ (10,183) Fiscal Year Ended April 30, 2019 ā ā (448) ā ā (664) ā ā ā ā ā (1,112) Fiscal Year Ended April 30, 2018 ā (297) ā (151) ā ā ā (448) ā |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Apr. 30, 2020 | |
Selected Quarterly Financial Data (Unaudited) | |
Selected Quarterly Financial Data (Unaudited) | ā 21. Selected Quarterly Financial Data (Unaudited) The following table sets forth certain unaudited financial information for each quarter of the years ended April 30, 2020 and 2019. The unaudited quarterly information includes all adjustments (consisting of normal recurring adjustments) that, in the opinion of management, are necessary for the fair presentation of the information presented. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, 2020 ā First Second Third Fourth ā ā Quarter ā Quarter ā Quarter ā Quarter ā ā (in thousands, except per share data) Net sales ā $ 847,176 ā $ 861,929 ā $ 761,352 ā $ 770,850 Gross profit ā 273,654 ā 284,493 ā 253,473 ā 251,594 Net income (loss)(1) ā 24,820 ā 29,138 ā 10,879 ā (41,456) Per share data ā ā ā ā Weighted average shares outstanding(2): ā ā ā ā Basic ā 41,001 ā 41,761 ā 42,223 ā 42,435 Diluted ā 41,615 ā 42,635 ā 42,949 ā 42,435 Net income (loss) per share(2): ā ā ā ā Basic ā $ 0.60 ā $ 0.70 ā $ 0.26 ā $ (0.98) Diluted ā $ 0.59 ā $ 0.68 ā $ 0.25 ā $ (0.98) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, 2019 ā First Second Third Fourth ā ā Quarter ā Quarter ā Quarter ā Quarter ā ā (in thousands, except per share data) Net sales ā $ 778,144 ā $ 833,837 ā $ 723,902 ā $ 780,149 Gross profit ā 244,816 ā 268,150 ā 234,226 ā 256,927 Net income(3) ā 8,650 ā 24,912 ā 5,815 ā 16,625 Per share data ā ā ā ā Weighted average shares outstanding(2): ā ā ā ā Basic ā 41,094 ā 41,149 ā 40,912 ā 40,487 Diluted ā 42,074 ā 41,918 ā 41,371 ā 40,976 Net income per share(2): ā ā ā ā Basic ā $ 0.21 ā $ 0.59 ā $ 0.14 ā $ 0.40 Diluted ā $ 0.20 ā $ 0.58 ā $ 0.14 ā $ 0.39 (1) Net income for the fourth quarter of 2020 includes a $63.1 million non-cash impairment charge to goodwill and a $14.0 million gain on legal settlement. In February 2020, the Company received proceeds as part of a class action settlement. ā (2) Basic and diluted net income per share are computed independently for each of the quarters presented. Therefore, the sum of the quarterly basic and diluted net income per share amounts may not equal annual basic and diluted net income per share amounts. ā (3) Net income for the first quarter of 2019 includes a $5.7 million loss on change in fair value of financial instruments related to the Companyās foreign currency forward contract. |
Business, Basis of Presentati_2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2020 | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the accounts of its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (āGAAPā) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of the Companyās 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 stockholdersā equity and other comprehensive income (loss). Gains and losses on foreign currency transactions are recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) within other income, net. |
Reclassifications | Reclassifications ā Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Trade Accounts Receivable | Trade Accounts Receivable Accounts receivables are recorded at their net realizable value. The Company maintains an allowance for doubtful accounts for estimated losses due to the failure of customers to make required payments, as well as allowances for cash discounts. The Companyās estimate of the allowance for doubtful accounts is based on an assessment of individual past due accounts, historical write-off experience, accounts receivable aging and current economic trends. Account balances are written off when the potential for recovery is considered remote. |
Inventories | Inventories ā Inventories consist of finished goods purchased for resale and include wallboard, ceilings, steel framing and other specialty building products. Inventories are valued at the lower of cost or market (net realizable value). The cost of inventories is determined by the moving average cost method. The Company routinely evaluates inventory for excess or obsolescence and considers factors such as historical usage rates and demand. ā |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Property and equipment obtained through acquisition is stated at estimated fair value as of the acquisition date. Expenditures for improvements and betterments are capitalized, while the costs of maintenance and repairs are charged to operating expense as incurred. Gains and losses related to the sale of property and equipment are recorded in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). Depreciation expense for property and equipment of U.S. subsidiaries is determined using the straight-line method over the estimated useful lives of the various asset classes. The estimated useful lives of property and equipment are as follows: ā ā ā ā Buildings 25 - 39 years Furniture, fixtures and automobiles 3 - 5 years Warehouse and delivery equipment 4 - 10 years Leasehold improvements Shorter of estimated useful life or lease term ā Depreciation expense for property and equipment of Canadian subsidiaries is recognized over the estimated useful lives of the various asset classes as follows: ā ā ā ā Vehicles and trucks 30% - 40% declining balance Furniture and fixtures 8% - 20% declining balance Buildings 4% declining balance Machinery and equipment 30% declining balance Leasehold improvements ā Straight-line over shorter of estimated useful life or lease term |
Goodwill | Goodwill Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the acquisition method of accounting. The Company does not amortize goodwill. The Company tests its goodwill annually during the fourth quarter of its fiscal year or when events and circumstances indicate that those assets might not be recoverable. Impairment testing of goodwill is required at the reporting unit level (operating segment or one level below operating segment). Prior to performing the impairment test, the Company may make a qualitative assessment of the likelihood of goodwill impairment in order to determine whether a detailed quantitative analysis is required. The impairment test involves comparing the estimated fair values of the Companyās reporting units with the reporting unitsā carrying amounts, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, a goodwill impairment loss is measured as the amount by which a reporting unitās carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. ā |
Intangible Assets | Intangible Assets Intangible assets consist of customer relationships, trade names and other assets acquired in conjunction with the purchases of businesses or purchases of assets from other companies. When management determines material intangible assets are acquired in conjunction with the purchase of a business, the Company determines the fair values of the identifiable intangible assets by considering managementās own analysis and an independent third-party valuation specialistās appraisal. Intangible assets determined to have definite lives are amortized over their estimated useful lives. |
Long-Lived Assets | Long-Lived Assets ā The Company evaluates the recoverability of long-lived assets, including property and equipment, operating lease right-of-use assets and definite-lived intangible assets, for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used or a significant adverse change that would indicate the carrying amount of an asset or group of assets is not recoverable. For long-lived assets to be held and used, the Company recognizes an impairment loss if its carrying amount is not recoverable through its undiscounted cash flows and measures the impairment loss, if any, based on the difference between the carrying amount and fair value. Long-lived assets held for sale are reported at the lower of cost or fair value less costs to sell |
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. In addition, the Company has deductible-based insurance policies for certain losses related to general liability, workersā compensation and automobile. The deductible amount per incident is $0.3 million, $0.5 million and $1.0 million for general liability, workersā compensation and automobile, respectively. The coverage consists of a deductible layer, a primary layer, a self-insured buffer layer, a lead umbrella layer and excess layers. The primary layer of coverage is from $0.3 million, $0.5 million and $1.0 million for deductibles for general liability, workersā compensation, and automobile liability, respectively, to $5.0 million. The Company self-insures a buffer layer from $5.0 million to $10.0 million. The umbrella and excess layers cover claims from $10.0 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 April 30, 2020 and 2019, the aggregate liabilities for medical self-insurance were $3.8 million and $3.4 million, respectively, and are included in other accrued expenses and current liabilities in the Consolidated Balance Sheets. As of April 30, 2020 and 2019, reserves for general liability, workersā compensation and automobile totaled $19.4 million and $17.7 million, respectively, and are included in other accrued expenses and current liabilities and other liabilities in the Consolidated Balance Sheets. As of April 30, 2020 and 2019, expected recoveries for medical self-insurance, general liability, workersā compensation and automobile totaled $6.0 million and $6.0 million, respectively, and are included in prepaid expenses and other current assets and other assets in the 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 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 first quarter of 2019, the Company initiated a reduction in workforce as part of a strategic cost reduction plan to improve operational efficiency. The Company recorded $5.0 million of restructuring costs during the year ended April 30, 2019 in connection with the reduction in workforce and certain other restructuring activities, consisting primarily of severance and other employee costs. As of April 30, 2019, all costs related to the reduction in workforce had been paid. During the fourth quarter of 2020, the Company initiated a restructuring plan to close one of its facilities. The Company recorded $2.2 million of restructuring costs, consisting of $1.9 million for impairment of the operating lease right-of-use asset and $0.3 million for severance and other employee costs. Restructuring costs are classified within selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). |
Debt Issuance Costs | Debt Issuance Costs The Company defers debt issuance costs and amortizes them over the term of the related debt. The Company uses the straight-line method to amortize debt issuance costs for its revolving credit facility and uses the effective interest method to amortize debt issuance costs for its term loan facilities. Amortization of debt issuance costs is recorded in interest expense in the Consolidated Statements of Operations and Comprehensive Income (Loss). The Company classifies debt issuance costs for its revolving credit facilities as an asset in the Consolidated Balance Sheets and classifies debt issuance costs for its term loan facilities as a reduction of the related debt in the Consolidated Balance Sheets. |
Stock Appreciation Rights, Deferred Compensation and Liabilities to Noncontrolling Interest Holders | Stock Appreciation Rights, Deferred Compensation and Liabilities to Noncontrolling Interest Holders Certain subsidiaries have equity-based compensation agreements with the subsidiaryās employees and minority stockholders. These agreements are stock appreciation rights, deferred compensation agreements and liabilities to noncontrolling interest holders. Since these agreements are typically settled in cash or notes, they are accounted for as liability awards and measured at fair value. See Note 13, āStock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests,ā for additional information with respect to these agreements. |
Derivative Instruments | Derivative Instruments The Company has entered into derivative instruments to manage its exposure to certain financial risks. The Companyās derivative financial instruments are recognized as either assets or liabilities in the Consolidated Balance Sheets and measured at fair value. Derivative instruments that do not qualify as a hedge or are not designated as a hedge are adjusted to estimated fair value in earnings. Derivative instruments that meet hedge criteria are formally designated as hedges. For derivative instruments designated as a cash flow hedge, the Company recognizes the change in fair value, net of taxes, to accumulated other comprehensive income (loss) in the Consolidated Balance Sheets, and an amount is reclassified out of accumulated other comprehensive income (loss) into earnings to offset the earnings impact that is attributable to the risk being hedged. For derivative instruments designated as a fair value hedge, the Company recognizes the loss or gain attributable to the risk being hedged in earnings in the period of change with a corresponding offset recorded to the item for which the risk is being hedged. The Company performs the effectiveness testing of its designated hedges on a quarterly basis and the changes in ineffective portions of the derivatives, if any, are recognized immediately in earnings. See Note 14, āDerivative Instruments,ā for additional information with respect to the Companyās derivative instruments. |
Revenue Recognition | Revenue Recognition ā The Company recognizes revenue 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 Note 2, āRevenue,ā for information on the Companyās revenue recognition. |
Cost of Sales | Cost of Sales Cost of sales reflects the direct cost of goods purchased from third parties, rebates earned from vendors, adjustments for inventory reserves and the cost of inbound freight. |
Vendor Rebates | Vendor Rebates Typical arrangements with vendors provide for the Company to receive a rebate of a specified amount after it achieves any of a number of measures generally related to the volume of our purchases over a period of time. The Company records these rebates to effectively reduce its cost of sales in the period in which the Company sells the product. Throughout the year, the Company estimates the amount of rebates receivable for the periodic programs based upon the expected level of purchases. The Company accrues for the receipt of vendor rebates based on purchases and also reduces inventory to reflect the deferral of cost of sales. |
Selling, General, and Administrative Expenses | Selling, General and Administrative Expenses ā |
Advertising Expense | Advertising Expense The cost of advertising is expensed as incurred and included in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). Advertising expense was $3.3 million, $1.9 million and $1.8 million during the years ended April 30, 2020, 2019 and 2018, respectively. |
Equity Based Compensation | Equity-Based Compensation As of April 30, 2020, the Company had various stock-based compensation plans, which are more fully described in Note 12, āEquity-Based Compensation.ā 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 GMSās common stock on the date of grant. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized based on the difference between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Inherent in the measurement of deferred balances are certain judgments and interpretations of existing tax law and published guidance as applicable to our operations. The Company evaluates its deferred tax assets to determine if valuation allowances are required. In assessing the realizability of deferred tax assets, we consider both positive and negative evidence in determining whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The primary negative evidence considered includes the cumulative operating losses generated in prior periods. The primary positive evidence considered includes the reversal of deferred tax liabilities related to depreciation and amortization that would occur within the same jurisdiction and during the carry-forward period necessary to absorb the federal and state net operating losses and other deferred tax assets. The reversal of such liabilities would utilize the federal and state net operating losses and other deferred tax assets. The Company records amounts for uncertain tax positions that management believes are supportable, but are potentially subject to successful challenge by the applicable taxing authority. Consequently, changes in our assumptions and judgments could materially affect amounts recognized related to income tax uncertainties and may affect our results of operations or financial position. We believe our assumptions for estimates are reasonable, although actual results may have a positive or negative material impact on the balances of such tax positions. Historically, the variation of estimates to actual results is not significant and material variation is not expected in the future. |
Concentrations of Risk | Concentrations of Risk COVID-19 Pandemic ā Credit Risk. geographically diverse customers Additionally, the Company maintains allowances for potential credit losses. As of April 30, 2020 and 2019, no customer accounted for more than 10% of gross accounts receivable. ā Supply Risk. |
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. ā The carrying values of the Companyās 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 Companyās debt instruments approximate fair value. See Note 15, āFair Value Measurements,ā for additional information with respect to the Companyās fair value measurements. |
Earnings Per Share | ā 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 āCommon Stock Equivalentsā), were exercised or converted into common stock The dilutive effect of outstanding stock options and 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. Common Stock Equivalents The holders of the Companyās Exchangeable Shares (as defined in Note 3, āBusiness Acquisitionsā and further described in Note 11, āStockholdersā Equityā) were entitled to receive dividends or distributions that were equal to any dividends or distributions on the Companyās common stock. As a result, when the Exchangeable Shares were outstanding, they were classified as a participating security and thereby required the allocation of income that would have otherwise been available to common stockholders when calculating earnings per share. Diluted earnings per share was calculated by utilizing the most dilutive result of the if-converted and two-class methods. In both methods, net income attributable to common stockholders 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 | Recently Adopted Accounting Pronouncements Leases ā In February 2016, the Financial Accounting Standards Board (āFASBā) issued authoritative guidance on accounting for leases. The new standard establishes a right-of-use (āROUā) 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 twelve months. Leases are classified as either finance or operating, with such classification affecting the pattern of expense recognition in the statement of operations. The new standard was effective for the Companyās fiscal year beginning May 1, 2019 (the first day of fiscal 2020), including interim reporting periods within that fiscal year. A modified transition approach was 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. ā On July 30, 2018, the FASB issued new guidance that provided 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. ā The Company adopted the new lease standard on May 1, 2019 using the optional transition method. The Company elected the package of practical expedients permitted in the guidance, which among other things, allows the Company to carry forward the historical accounting relating to lease identification and classification for existing leases upon adoption. The Company also elected to use the practical expedient to not separate lease and nonlease components. The Company did not elect the hindsight practical expedient. The Company made an accounting policy election to not recognize an ROU asset and lease liability for leases with an initial term of 12 months or less. ā The adoption of the standard resulted in the recording of operating lease ROU assets and operating lease liabilities of $118.8 million on the Consolidated Balance Sheet as of the adoption date. The Company also reclassified deferred rent of $4.8 million from liabilities into its operating lease ROU assets. The adoption did not have a material impact on the Companyās Statement of Operations or Statement of Cash Flows. See Note 8, āLeases,ā for information and disclosures regarding leases. ā Goodwill ā 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 unitās 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 adopted the new guidance on February 1, 2020 (the first day of its fiscal fourth quarter). ā Recently Issued Accounting Pronouncements ā Credit Losses ā In June 2016, the FASB issued new guidance on credit losses on financial instruments. This guidance introduces a revised approach to the recognition and measurement of credit losses of certain financial instruments, including trade receivables, emphasizing an updated model based on expected losses rather than incurred losses. This new guidance is effective for annual reporting periods, and interim reporting periods contained therein, beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its financial statements and related disclosures. ā Fair Value Measurement Disclosures ā In August 2018, the FASB issued new guidance that changes certain fair value measurement disclosure requirements. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. An entity is permitted to early adopt all of the disclosure changes or early adopt only the removed disclosure requirements and delay adoption of the additional disclosures until the effective date of this amendment. Except for changes to certain disclosures related to fair value measurements, the Company does not expect the adoption of this guidance to have a material impact on its financial statements. ā Reference Rate Reform ā In March 2020, the FASB issued new guidance to temporarily ease the potential burden in accounting for reference rate reform. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rates that are expected to be discontinued, such as the London Interbank Offered Rate ("LIBOR"). The guidance was effective upon issuance and generally can be applied through December 31, 2022. The Company expects to elect optional expedients and exceptions provided by the guidance, as needed, related to its debt instruments, which include interest rates based on a LIBOR rate. The Company will evaluate and disclose the impact of this guidance in the period of election, as well as the nature and reason for doing so. |
Business, Basis of Presentati_3
Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | |
Schedule of estimated useful lives of property and equipment | ā ā ā ā Buildings 25 - 39 years Furniture, fixtures and automobiles 3 - 5 years Warehouse and delivery equipment 4 - 10 years Leasehold improvements Shorter of estimated useful life or lease term |
Summary of depreciation expense for property and equipment of Canadian subsidiaries | ā ā ā ā Vehicles and trucks 30% - 40% declining balance Furniture and fixtures 8% - 20% declining balance Buildings 4% declining balance Machinery and equipment 30% declining balance Leasehold improvements ā Straight-line over shorter of estimated useful life or lease term |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
2020 Acquisitions | |
Acquisitions | |
Schedule of acquisitions completed | ā ā ā ā ā ā Company Name Form of Acquisition Date of Acquisition J.P. Hart Lumber Company ā Purchase of net assets ā June 3, 2019 Rigney Building Supplies Ltd. ā Purchase of 100% of outstanding common stock ā November 1, 2019 Trowel Trades Supply, Inc. ā Purchase of net assets ā February 1, 2020 |
Schedule of preliminary allocation of the consideration transferred | ā ā ā ā ā ā ā Preliminary ā ā Acquisition ā ā Accounting ā ā (in thousands) Cash ā $ 713 Trade accounts and notes receivable ā 5,149 Inventories ā 7,194 Other current assets ā 72 Property and equipment ā 6,788 Customer relationships ā ā 4,252 Tradenames ā 644 Goodwill ā 5,291 Liabilities assumed ā (5,028) Fair value of consideration transferred ā $ 25,075 |
2018 Acquisitions | |
Acquisitions | |
Schedule of acquisitions completed | ā ā ā ā ā ā Company Name Form of Acquisition Date of Acquisition ASI Building Products, LLC ā Purchase of net assets ā August 1, 2017 Washington Builders Supply, Inc. ā Purchase of net assets ā October 2, 2017 Southwest Building Materials, Ltd. ā Purchase of net assets ā December 4, 2017 California-based distribution business of Grabber Construction Products, Inc. ā Purchase of net assets ā April 2, 2018 CMH Distributing, Inc. ā Purchase of net assets ā April 2, 2018 |
Schedule of preliminary allocation of the consideration transferred | ā ā ā ā ā ā ā ā ā ā ā ā ā Preliminary ā ā ā ā Final ā ā Acquisition ā Adjustments/ ā Acquisition ā ā Accounting ā Reclassifications ā Accounting ā ā (in thousands) Trade accounts and notes receivable ā $ 4,872 ā $ ā ā $ 4,872 Inventories ā ā 4,321 ā ā ā ā ā 4,321 Property and equipment ā 1,081 ā ā ā 1,081 Tradenames ā 1,000 ā ā ā 1,000 Vendor agreement ā 1,000 ā ā ā 1,000 Other intangible assets ā 620 ā ā ā 620 Customer relationships ā 9,358 ā ā ā 9,358 Goodwill ā 4,145 ā 8 ā 4,153 Liabilities assumed ā (1,951) ā ā ā (1,951) Fair value of consideration transferred ā $ 24,446 ā $ 8 ā $ 24,454 |
Titan | |
Acquisitions | |
Schedule of preliminary allocation of the consideration transferred | The following table summarizes the acquisition accounting: ā ā ā ā ā ā ā ā ā ā ā ā Preliminary ā ā ā ā Final ā ā Acquisition ā Adjustments/ ā Acquisition ā ā Accounting ā Reclassifications ā Accounting ā ā (in thousands) Cash $ 5,573 ā $ ā ā $ 5,573 Trade accounts and notes receivable ā 84,039 ā 970 ā 85,009 Inventories ā ā 60,272 ā ā ā ā ā 60,272 Prepaid and other current assets ā 8,334 ā ā ā 8,334 Property and equipment ā 37,263 ā ā ā 37,263 Goodwill ā ā 196,524 ā ā (2,726) ā ā 193,798 Intangible assets ā ā 289,423 ā ā (2,469) ā ā 286,954 Accounts payable and accrued expenses ā ā (40,833) ā ā (970) ā ā (41,803) Contingent consideration ā ā (12,039) ā ā ā ā ā (12,039) Deferred income taxes ā (14,337) ā 2,085 ā (12,252) Fair value of consideration transferred ā $ 614,219 ā $ (3,110) ā $ 611,109 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Property and Equipment | |
Schedule of components of property and equipment | ā ā ā ā ā ā ā ā ā April 30, ā 2020 2019 ā ā (in thousands) Land ā $ 52,581 ā $ 52,031 Buildings and leasehold improvements ā 110,322 ā 99,300 Machinery and equipment ā 300,133 ā 252,504 Construction in progress ā 985 ā 2,097 Total property and equipment ā 464,021 ā 405,932 Less: accumulated depreciation and amortization ā 158,554 ā 123,583 Total property and equipment, net of accumulated depreciation ā $ 305,467 ā $ 282,349 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Goodwill and Intangible Assets | |
Schedule of changes in the carrying amount of goodwill | ā ā ā ā ā ā Carrying ā ā Amount ā ā (in thousands) Balance as of April 30, 2018 ā $ 427,645 Goodwill recognized from acquisitions ā ā 196,267 Purchase price adjustments from prior periods ā ā 8 Translation adjustment ā (6,593) Balance as of April 30, 2019 ā ā 617,327 Impairment of goodwill ā ā (63,074) Goodwill recognized from acquisitions ā ā 5,291 Translation adjustment ā (6,471) Balance as of April 30, 2020 ā $ 553,073 |
Schedule of components of definite-lived intangible assets | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Estimated ā Weighted ā April 30, 2020 ā ā Useful ā Average ā Gross ā ā ā Net ā ā Lives ā Amortization ā Carrying ā Accumulated ā Carrying ā (years) Period Amount Amortization Value ā ā (dollars in thousands) Customer relationships ā 5 - 16 ā 12.8 ā $ 516,928 ā $ 270,029 ā $ 246,899 Definite-lived tradenames ā 5 - 20 ā 16.3 ā 55,654 ā 10,474 ā 45,180 Vendor agreements ā 8 - 10 ā 8.3 ā 6,644 ā 4,567 ā 2,077 Developed technology ā 5 ā 4.9 ā ā 5,036 ā ā 1,963 ā ā 3,073 Leasehold interests ā 1 - 15 ā 7.6 ā 3,679 ā 2,101 ā 1,578 Other ā 3 - 5 ā 3.4 ā ā 4,157 ā ā 2,447 ā ā 1,710 Totals ā ā ā ā ā $ 592,098 ā $ 291,581 ā $ 300,517 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Estimated ā Weighted ā April 30, 2019 ā ā Useful ā Average ā Gross ā ā ā Net ā ā Lives Amortization Carrying Accumulated Carrying ā (years) Period Amount Amortization Value ā ā (dollars in thousands) Customer relationships ā 5 - 16 ā 12.8 ā $ 520,703 ā $ 214,044 ā $ 306,659 Definite-lived tradenames ā 5 - 20 ā 16.3 ā 56,018 ā 6,993 ā 49,025 Vendor agreements ā 8 - 10 ā 8.3 ā 6,644 ā 3,761 ā 2,883 Developed technology ā 5 ā 4.9 ā ā 5,209 ā ā 971 ā ā 4,238 Leasehold interests ā 1 - 15 ā 7.6 ā 3,707 ā 1,502 ā 2,205 Other ā 3 - 5 ā 3.4 ā ā 4,118 ā ā 1,182 ā ā 2,936 Totals ā ā ā ā ā $ 596,399 ā $ 228,453 ā $ 367,946 |
Other Accrued Expenses and Cu_2
Other Accrued Expenses and Current Liabilities (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Other Accrued Expenses and Current Liabilities | |
Schedule of components of other accrued expenses and current liabilities | ā ā ā ā ā ā ā ā ā April 30, ā 2020 2019 ā ā (in thousands) Insurance related liabilities ā $ 12,922 ā $ 14,110 Customer rebates payable ā 10,211 ā 7,944 Sales taxes payable ā 9,493 ā 10,448 Reserve for sales returns ā ā 4,081 ā ā 4,701 Income taxes payable ā ā 2,844 ā ā 14,063 Real estate and personal property taxes ā 2,182 ā 2,010 Contingent consideration ā 2,018 ā 13,073 Other ā 20,061 ā 13,499 Total other accrued expenses and current liabilities ā $ 63,812 ā $ 79,848 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Long-Term Debt | |
Schedule of long-term debt | ā ā ā ā ā ā ā ā ā ā April 30, ā 2020 2019 ā ā (in thousands) Term Loan Facility (1) (2) ā $ 866,301 ā $ 972,650 ABL Facility ā 80,000 ā 43,972 Finance lease obligations ā 128,767 ā 109,286 Installment notes at fixed rates up to 5.0%, due in monthly and annual installments through 2024 (3) ā 15,218 ā 15,287 Canadian Facility ā 7,194 ā ā ā Carrying value of debt ā 1,097,480 ā 1,141,195 Less current portion ā 50,201 ā 42,118 Long-term debt ā $ 1,047,279 ā $ 1,099,077 (1) Net of unamortized discount of $1,602 and $2,149 as of April 30, 2020 and 2019, respectively. (2) Net of deferred financing costs of $9,000 and $12,072 as of April 30, 2020 and 2019, respectively. (3) Net of unamortized discount of $1,098 and $1,200 as of April 30, 2020 and 2019, respectively. ā |
Scheduled of maturities of long-term debt | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Term Loan ā ā ABL ā Finance ā Installment ā Canadian ā ā ā ā Facility(1) ā Facility Leases Notes(2) ā Facility ā Total Year ending April 30, ā (in thousands) 2021 ā $ 9,968 ā $ ā ā $ 35,530 ā $ 4,874 ā $ ā ā $ 50,372 2022 ā 9,968 ā ā ā ā ā 32,547 ā ā 4,438 ā ā ā ā 46,953 2023 ā 9,968 ā ā ā ā ā 27,062 ā ā 4,404 ā ā 7,194 ā 48,628 2024 ā 9,968 ā ā ā ā ā 19,974 ā ā 1,781 ā ā ā ā 31,723 2025 ā 9,968 ā ā 80,000 ā ā 9,983 ā ā 819 ā ā ā ā 100,770 Thereafter ā 827,063 ā ā ā ā ā 3,671 ā ā ā ā ā ā ā 830,734 ā ā $ 876,903 ā $ 80,000 ā $ 128,767 ā $ 16,316 ā $ 7,194 ā $ 1,109,180 ā (1) (2) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Leases | |
Summary of components of lease expense | ā ā ā ā ā ā ā Year ā ā Ended ā ā April 30, 2020 ā ā (in thousands) Finance lease cost: ā ā ā Amortization of right-of-use assets ā $ 24,352 Interest on lease liabilities ā ā 13,316 Operating lease cost ā ā 42,846 Variable lease cost ā ā 12,555 Total lease cost ā $ 93,069 |
Summary of components of supplemental cash flow information related to leases | ā ā ā ā ā ā ā Year ā ā Ended ā ā April 30, 2020 ā ā (in thousands) Cash paid for amounts included in the measurement of lease liabilities ā ā ā Operating cash flows from operating leases ā $ 42,150 Operating cash flows from finance leases ā ā 13,316 Financing cash flows from finance leases ā ā 25,275 Right-of-use assets obtained in exchange for lease obligations ā ā ā Operating leases ā ā 38,143 Finance leases ā ā 50,484 |
Summary of other lease information | ā ā ā ā ā ā ā ā ā ā April 30, ā ā 2020 2019 ā ā (in thousands) Finance leases included in property and equipment ā ā ā ā ā ā Property and equipment ā $ 171,380 ā $ 134,931 Accumulated depreciation ā ā (41,737) ā ā (27,686) Property and equipment, net ā $ 129,643 ā $ 107,245 Weighted-average remaining lease term (years) ā ā ā ā ā ā Operating leases ā ā 4.9 ā ā ā Finance leases ā ā 3.6 ā ā ā Weighted-average discount rate ā ā ā ā ā ā Operating leases ā ā 5.5 % ā ā Finance leases ā ā 5.0 % ā ā |
Schedule of maturities for finance leases | Future minimum lease payments under non-cancellable leases as of April 30, 2020 were as follows: ā ā ā ā ā ā ā ā ā Finance Operating Year Ending April 30, ā (in thousands) 2021 ā $ 46,116 ā $ 38,960 2022 ā 39,328 ā 30,387 2023 ā 30,525 ā 23,655 2024 ā 21,234 ā 18,775 2025 ā 10,544 ā 12,154 Thereafter ā 3,647 ā 16,848 Total lease payments ā ā 151,394 ā ā 140,779 Less imputed interest ā 22,627 ā 18,134 Total ā $ 128,767 ā $ 122,645 |
Schedule of maturities for operating leases | ā ā ā ā ā ā ā ā ā Finance Operating Year Ending April 30, ā (in thousands) 2021 ā $ 46,116 ā $ 38,960 2022 ā 39,328 ā 30,387 2023 ā 30,525 ā 23,655 2024 ā 21,234 ā 18,775 2025 ā 10,544 ā 12,154 Thereafter ā 3,647 ā 16,848 Total lease payments ā ā 151,394 ā ā 140,779 Less imputed interest ā 22,627 ā 18,134 Total ā $ 128,767 ā $ 122,645 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Income Taxes | |
Schedule of components of income before taxes | ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā 2020 2019 2018 ā ā (in thousands) United States ā $ 106,850 ā $ 62,878 ā $ 83,854 Foreign ā ā (60,525) ā ā 7,163 ā ā ā Income before taxes ā $ 46,325 ā $ 70,041 ā $ 83,854 |
Schedule of components of income tax expense | ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā 2020 2019 2018 ā ā (in thousands) Current ā ā ā ā ā ā ā ā ā Federal ā $ 12,537 ā $ 11,858 ā $ 30,827 Foreign ā ā 1,624 ā ā 13,739 ā ā ā State ā 7,857 ā 5,929 ā 6,409 Total current ā 22,018 ā 31,526 ā 37,236 Deferred ā ā ā ā ā ā ā ā ā Federal ā 8,986 ā 453 ā (14,796) Foreign ā ā (7,347) ā ā (16,931) ā ā ā State ā (713) ā (1,009) ā (1,557) Total deferred ā 926 ā (17,487) ā (16,353) Total provision for income taxes ā $ 22,944 ā $ 14,039 ā $ 20,883 |
Summary of significant differences between federal statutory tax rate and effective tax rate | ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā 2020 2019 2018 ā ā (in thousands) Federal income taxes at statutory rate ā $ 9,747 ā $ 14,715 ā $ 25,492 State income taxes, net of federal income tax benefit ā 4,054 ā 2,440 ā 1,900 Impact of foreign rate differences ā ā (2,861) ā ā 418 ā ā ā Impact of rate difference on impairment of goodwill ā ā 7,630 ā ā ā ā ā ā Net change in valuation allowance ā 9,070 ā 664 ā 151 Nondeductible meals & entertainment ā 592 ā 635 ā 822 Equity-based compensation ā ā (1,196) ā ā (53) ā ā ā GILTI ā ā 704 ā ā 241 ā ā ā Nondeductible transaction costs ā 90 ā 529 ā 2 Net deferred benefit due to Tax Cuts and Jobs Act ā ā ā ā ā ā ā ā (6,763) Intercompany interest expense ā ā (5,361) ā ā (5,255) ā ā ā Other ā 475 ā (295) ā (721) Total provision for income taxes ā $ 22,944 ā $ 14,039 ā $ 20,883 |
Schedule of tax effects of temporary differences which give rise to deferred income taxes | ā ā ā ā ā ā ā ā ā April 30, ā 2020 2019 Deferred income tax assets: ā (in thousands) Allowances on accounts and notes receivable ā $ 2,016 ā $ 2,306 Accrued payroll and related costs ā 1,859 ā 1,577 Insurance reserves ā 2,501 ā 1,746 Inventory costs ā 2,630 ā 2,066 Deferred compensation ā ā 7,426 ā ā 6,854 Equity compensation ā 2,695 ā 2,944 Derivative instrument ā 7,850 ā 1,358 Acquisition related costs ā 1,311 ā 1,779 Net operating loss carry-forwards ā 1,595 ā 1,745 Disallowed interest expense ā ā 736 ā ā 2,507 Investment in partnerships ā ā 16,535 ā ā 4,676 Deferred rent ā 1,112 ā 604 Noncompete agreements ā 120 ā 133 Other deferred tax assets, net ā 1,424 ā 1,394 Total deferred income tax assets ā 49,810 ā 31,689 Less: Valuation allowance ā (10,183) ā (1,112) Total deferred income tax assets, net of valuation allowance ā 39,627 ā 30,577 Deferred income tax liabilities: ā ā ā ā ā ā Amortization of intangible assets ā (18,917) ā (22,950) Rebates ā ā (400) ā ā (72) Depreciation ā (21,508) ā (10,495) Deferred financing costs ā (1,582) ā (2,075) Other deferred tax liabilities, net ā (334) ā ā (535) Total deferred income tax liabilities ā (42,741) ā (36,127) Deferred income tax liabilities, net ā $ (3,114) ā $ (5,550) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Stockholders' Equity | |
Schedule of changes to accumulated other comprehensive loss, net of tax, by component | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Accumulated ā ā Foreign ā Derivative ā Other ā ā Currency ā Financial ā Comprehensive ā ā Translation ā Instruments ā Income (Loss) ā ā (in thousands) Balance as of April 30, 2017 ā $ ā ā $ (884) ā $ (884) Other comprehensive income before reclassification ā ā ā ā ā 309 ā 309 Reclassification to earnings from accumulated other comprehensive (loss) income ā ā ā ā ā 1,016 ā 1,016 Balance as of April 30, 2018 ā ā ā ā ā 441 ā ā 441 Other comprehensive loss before reclassification ā ā (22,320) ā ā (5,423) ā ā (27,743) Reclassification to earnings from accumulated other comprehensive (loss) income ā ā ā ā ā 728 ā ā 728 Balance as of April 30, 2019 ā ā (22,320) ā ā (4,254) ā ā (26,574) Other comprehensive loss before reclassification ā ā (18,257) ā ā (20,251) ā ā (38,508) Reclassification to earnings from accumulated other comprehensive (loss) income ā ā ā ā ā ā ā ā ā Balance as of April 30, 2020 ā $ (40,577) ā $ (24,505) ā $ (65,082) |
Equity-Based Compensation - (Ta
Equity-Based Compensation - (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Equity-Based Compensation | |
Summary of stock option activity | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted ā ā ā ā ā ā Weighted ā Average ā ā ā ā ā ā ā Average ā Remaining ā Aggregate ā ā Number of ā Exercise ā Contractual ā Intrinsic ā ā Options ā Price ā Life (years) ā Value ā ā (shares and dollars in thousands) Outstanding as of April 30, 2019 2,080 ā $ 16.34 6.15 ā $ 7,615 Options granted 386 ā ā 21.63 ā Options exercised (874) ā 13.22 ā Options forfeited (105) ā 25.73 ā Options expired ā ā ā ā ā Outstanding as of April 30, 2020 1,487 ā $ 18.85 6.40 ā $ 3,895 Exercisable as of April 30, 2020 941 ā $ 16.32 4.98 ā $ 3,866 Vested and expected to vest as of April 30, 2020 1,481 ā $ 18.83 6.39 ā $ 3,895 |
Schedule of weighted average assumptions used in Black-Scholes option-pricing model | ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā ā 2020 ā 2019 ā 2018 Volatility ā 49.86 % ā 33.71 % 30.86 % Expected life (years) ā 6.0 ā ā 6.0 ā 6.0 ā Risk-free interest rate ā 1.97 % ā 2.87 % 2.18 % Dividend yield ā ā % ā ā % ā % |
Summary of restricted stock unity activity | ā ā ā ā ā ā ā ā ā Weighted ā ā Number of ā Average ā ā Restricted ā Exercise ā ā Stock Units ā Price ā ā (shares in thousands) Outstanding as of April 30, 2019 ā 193 ā $ 25.48 Granted ā 233 ā ā 21.67 Vested ā (100) ā ā 24.48 Forfeited ā (40) ā ā 25.29 Outstanding as of April 30, 2020 ā 286 ā $ 22.71 |
Stock Appreciation Rights, De_2
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests | |
Summary of changes to the liabilities for stock appreciation rights, deferred compensation and redeemable noncontrolling interests | ā ā ā ā ā ā ā ā ā ā ā ā ā Stock ā ā ā ā Redeemable ā ā Appreciation ā Deferred ā Noncontrolling ā ā Rights ā Compensation ā Interests ā ā (in thousands) Balance as of April 30, 2018 ā $ 21,944 ā $ 2,222 $ 16,170 Amounts redeemed ā ā (1,216) ā ā (715) ā ā (4,673) Change in fair value ā 2,730 ā 188 ā 1,001 Balance as of April 30, 2019 ā ā 23,458 ā ā 1,695 ā ā 12,498 Amounts redeemed ā (825) ā (108) ā (4,644) Change in fair value ā 1,572 ā 73 ā 446 Balance as of April 30, 2020 ā $ 24,205 ā $ 1,660 ā $ 8,300 ā ā ā ā ā ā ā ā ā ā Classified as current as of April 30, 2019 ā $ 1,355 ā $ 108 ā $ 1,569 Classified as long-term as of April 30, 2019 ā ā 22,103 ā ā 1,587 ā ā 10,929 ā ā ā ā ā ā ā ā ā ā Classified as current as of April 30, 2020 ā $ 624 ā $ ā ā $ ā Classified as long-term as of April 30, 2020 ā ā 23,581 ā ā 1,660 ā ā 8,300 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Fair Value Measurements | |
Schedule of liabilities measured at fair value on a recurring basis | ā ā ā ā ā ā ā ā ā April 30, ā ā 2020 ā 2019 ā ā (in thousands) Interest rate swaps (Level 2) ā $ 32,218 ā $ 5,613 Stock appreciation rights (Level 3) ā ā 24,205 ā ā 23,458 Deferred compensation (Level 3) ā ā 1,660 ā 1,695 Noncontrolling interest holders (Level 3) ā ā 8,300 ā ā 12,498 Contingent consideration (Level 3) ā ā ā ā 12,354 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Segments | |
Schedule of segment results | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, 2020 ā ā ā ā April 30, 2020 ā ā ā ā ā ā Depreciation and ā Adjusted ā Total ā ā Net Sales ā Gross Profit ā Amortization ā EBITDA ā Assets ā ā (in thousands) Geographic divisions ā $ 3,213,938 ā $ 1,053,555 ā $ 114,279 ā $ 297,646 ā $ 2,264,208 Other ā 27,369 ā 9,659 ā 233 ā 2,113 ā 18,745 Corporate ā ā ā ā ā 2,021 ā ā ā 5,829 ā ā $ 3,241,307 ā $ 1,063,214 ā $ 116,533 ā $ 299,759 ā $ 2,288,782 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, 2019 ā ā ā ā April 30, 2019 ā ā ā ā ā Depreciation and ā Adjusted ā Total ā ā Net Sales ā Gross Profit ā Amortization ā EBITDA ā Assets ā ā (in thousands) Geographic divisions ā $ 3,090,314 ā $ 994,981 ā $ 114,558 ā $ 293,190 ā $ 2,125,518 Other ā 25,718 ā 9,138 ā 220 ā 2,479 ā 16,897 Corporate ā ā ā ā ā 2,681 ā ā ā 7,139 ā ā $ 3,116,032 ā $ 1,004,119 ā $ 117,459 ā $ 295,669 ā $ 2,149,554 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, 2018 ā ā ā ā April 30, 2018 ā ā ā ā ā Depreciation and ā Adjusted ā Total ā ā Net Sales ā Gross Profit ā Amortization ā EBITDA ā Assets ā ā (in thousands) Geographic divisions ā $ 2,487,557 ā $ 809,884 ā $ 64,491 ā $ 196,903 ā $ 1,434,371 Other ā 23,912 ā 8,692 ā 242 ā 2,355 ā 12,854 Corporate ā ā ā ā ā 797 ā ā ā 7,286 ā ā $ 2,511,469 ā $ 818,576 ā $ 65,530 ā $ 199,258 ā $ 1,454,511 ā |
Reconciliation of Adjusted EBITDA to net income | ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā ā 2020 2019 2018 ā ā (in thousands) Net income ā $ 23,381 ā $ 56,002 ā $ 62,971 Interest expense ā 67,718 ā ā 73,677 ā ā 31,395 Write-off of debt discount and deferred financing fees ā ā 1,331 ā ā ā ā ā 74 Interest income ā (88) ā ā (66) ā ā (177) Provision for income taxes ā 22,944 ā ā 14,039 ā ā 20,883 Depreciation expense ā 51,332 ā ā 46,456 ā ā 24,075 Amortization expense ā 65,201 ā ā 71,003 ā ā 41,455 Impairment of goodwill ā ā 63,074 ā ā ā ā ā ā Stock appreciation expense(a) ā ā 1,572 ā ā 2,730 ā ā 2,318 Redeemable noncontrolling interests(b) ā 520 ā ā 1,188 ā ā 1,868 Equity-based compensation(c) ā 7,060 ā ā 3,906 ā ā 1,695 Severance and other permitted costs(d) ā 5,733 ā ā 8,152 ā ā 581 Transaction costs (acquisitions and other)(e) ā 2,414 ā ā 7,858 ā ā 3,370 Loss (gain) on disposal and impairment of assets(f) ā 658 ā ā (525) ā ā (509) Effects of fair value adjustments to inventory(g) ā 575 ā ā 4,176 ā ā 324 Change in fair value of financial instruments(h) ā ā ā ā 6,395 ā ā 6,125 Gain on legal settlement ā ā (14,029) ā ā ā ā ā ā Secondary public offering costs(i) ā ā 363 ā ā ā ā ā 1,525 Debt transaction costs(j) ā ā ā ā ā 678 ā ā 1,285 Adjusted EBITDA ā $ 299,759 ā $ 295,669 ā $ 199,258 (a) Represents non-cash expense related to stock appreciation rights agreements. (b) Represents non-cash compensation expense related to changes in the fair 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 Term Loan Facility, including certain unusual, nonrecurring costs due to COVID-19. (e) Represents costs related to acquisitions paid to third parties. (f) The year ended April 30, 2020 includes a $1.9 million impairment of operating lease right-of-use assets resulting from a restructuring plan to close one of the Companyās facilities. (g) Represents the non-cash cost of sales impact of purchase accounting adjustments to increase inventory to its estimated fair value. (h) Represents the mark-to-market adjustments for derivative financial instruments. (i) Represents costs paid to third-party advisors related to secondary offerings of our common stock. (j) Represents costs paid to third-party advisors related to debt refinancing activities. |
Schedule of net sales to external customers by main product lines | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā ā 2020 ā 2019 ā 2018 ā ā (in thousands) Wallboard ā $ 1,329,775 $ 1,272,068 $ 1,109,552 Ceilings ā 475,827 451,695 387,360 Steel framing ā 502,122 506,805 411,630 Other products ā 933,583 885,464 602,927 Total net sales ā $ 3,241,307 $ 3,116,032 $ 2,511,469 |
Schedule of net sales by major geographic area | ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā 2020 2019 ā 2019 ā ā (in thousands) United States ā $ 2,805,920 $ 2,701,678 $ 2,511,469 Canada ā 435,387 414,354 ā Total net sales ā $ 3,241,307 $ 3,116,032 ā $ 2,511,469 |
Schedule of property and equipment by major geographic area | ā ā ā ā ā ā ā ā ā ā April 30, ā April 30, ā 2020 2019 ā ā (in thousands) United States ā $ 270,855 ā $ 249,857 Canada ā 34,612 32,492 Total property and equipment, net ā $ 305,467 $ 282,349 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Earnings Per Common Share | |
Schedule of computation of basic and diluted earnings per share of common stock | ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, ā ā 2020 2019 2018 ā ā (in thousands, except per share data) Net income ā $ 23,381 ā $ 56,002 ā $ 62,971 Less: Net income allocated to participating securities ā ā 74 ā ā 1,382 ā ā ā Net income attributable to common stockholders ā $ 23,307 $ 54,620 ā $ 62,971 Basic earnings per common share: ā ā ā ā ā ā ā Basic weighted average common shares outstanding ā 41,853 ā 40,914 ā 41,015 Basic earnings per common share ā $ 0.56 ā $ 1.33 ā $ 1.54 Diluted earnings per common share: ā ā ā Basic weighted average common shares outstanding ā 41,853 ā 40,914 ā 41,015 Add: Common Stock Equivalents ā 651 ā 675 ā 1,148 Diluted weighted average common shares outstanding ā 42,504 ā 41,589 ā 42,163 Diluted earnings per common share ā $ 0.55 ā $ 1.31 ā $ 1.49 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Allowances for Accounts Receivable | |
Valuation and Qualifying Accounts | |
Schedule of Valuation and Qualifying Accounts | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance ā ā Charged to ā ā Balance ā ā at Beginning ā ā ā ā Other ā ā ā ā at End of ā ā of Period ā Provision ā Accounts(a) ā Deductions ā Period ā ā (in thousands) Fiscal Year Ended April 30, 2020 ā $ (6,432) ā $ (2,348) ā $ 938 ā $ 2,701 ā $ (5,141) Fiscal Year Ended April 30, 2019 ā ā (9,633) ā ā (1,064) ā ā 2,435 ā ā 1,830 ā ā (6,432) Fiscal Year Ended April 30, 2018 ā (9,851) ā (366) ā (596) ā 1,180 ā (9,633) (a) Charged to other accounts represents the net (increase) decrease for specifically reserved accounts, as well as the net change in reserves for sales discounts, service charges and sales returns. The adoption of the new revenue recognition guidance on May 1, 2018 resulted in a $3.6 million reclassification in the Consolidated Balance Sheet from trade accounts and notes receivable to other accrued expenses and current liabilities for estimated sales returns. This reclass is reflected in charged to other accounts for the fiscal year ended April 30, 2019. ā |
Valuation Allowance on Deferred Tax Assets | |
Valuation and Qualifying Accounts | |
Schedule of Valuation and Qualifying Accounts | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance Additions ā Balance ā ā at Beginning ā Charged to Costs ā ā ā at End of ā ā of Period ā and Expenses ā Deductions ā Period ā ā (in thousands) Fiscal Year Ended April 30, 2020 ā $ (1,112) ā $ (9,071) ā $ ā ā $ (10,183) Fiscal Year Ended April 30, 2019 ā ā (448) ā ā (664) ā ā ā ā ā (1,112) Fiscal Year Ended April 30, 2018 ā (297) ā (151) ā ā ā (448) |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Selected Quarterly Financial Data (Unaudited) | |
Schedule of selected quarterly financial information | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, 2020 ā First Second Third Fourth ā ā Quarter ā Quarter ā Quarter ā Quarter ā ā (in thousands, except per share data) Net sales ā $ 847,176 ā $ 861,929 ā $ 761,352 ā $ 770,850 Gross profit ā 273,654 ā 284,493 ā 253,473 ā 251,594 Net income (loss)(1) ā 24,820 ā 29,138 ā 10,879 ā (41,456) Per share data ā ā ā ā Weighted average shares outstanding(2): ā ā ā ā Basic ā 41,001 ā 41,761 ā 42,223 ā 42,435 Diluted ā 41,615 ā 42,635 ā 42,949 ā 42,435 Net income (loss) per share(2): ā ā ā ā Basic ā $ 0.60 ā $ 0.70 ā $ 0.26 ā $ (0.98) Diluted ā $ 0.59 ā $ 0.68 ā $ 0.25 ā $ (0.98) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended April 30, 2019 ā First Second Third Fourth ā ā Quarter ā Quarter ā Quarter ā Quarter ā ā (in thousands, except per share data) Net sales ā $ 778,144 ā $ 833,837 ā $ 723,902 ā $ 780,149 Gross profit ā 244,816 ā 268,150 ā 234,226 ā 256,927 Net income(3) ā 8,650 ā 24,912 ā 5,815 ā 16,625 Per share data ā ā ā ā Weighted average shares outstanding(2): ā ā ā ā Basic ā 41,094 ā 41,149 ā 40,912 ā 40,487 Diluted ā 42,074 ā 41,918 ā 41,371 ā 40,976 Net income per share(2): ā ā ā ā Basic ā $ 0.21 ā $ 0.59 ā $ 0.14 ā $ 0.40 Diluted ā $ 0.20 ā $ 0.58 ā $ 0.14 ā $ 0.39 (1) Net income for the fourth quarter of 2020 includes a $63.1 million non-cash impairment charge to goodwill and a $14.0 million gain on legal settlement. In February 2020, the Company received proceeds as part of a class action settlement. ā (2) Basic and diluted net income per share are computed independently for each of the quarters presented. Therefore, the sum of the quarterly basic and diluted net income per share amounts may not equal annual basic and diluted net income per share amounts. ā (3) Net income for the first quarter of 2019 includes a $5.7 million loss on change in fair value of financial instruments related to the Companyās foreign currency forward contract. |
Business, Basis of Presentati_4
Business, Basis of Presentation and Summary of Significant Accounting Policies - Business (Details) | Apr. 30, 2020location |
Minimum | |
Business | |
Number of branches through which products are distributed | 260 |
Business, Basis of Presentati_5
Business, Basis of Presentation and Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Apr. 30, 2020 | |
Buildings | |
Property and equipment | |
Depreciation expense for property and equipment (as a percent) | 4.00% |
Buildings | Minimum | |
Property and equipment | |
Estimated useful life | 25 years |
Buildings | Maximum | |
Property and equipment | |
Estimated useful life | 39 years |
Furniture, fixtures and automobiles | Minimum | |
Property and equipment | |
Estimated useful life | 3 years |
Furniture, fixtures and automobiles | Maximum | |
Property and equipment | |
Estimated useful life | 5 years |
Warehouse and delivery equipment | Minimum | |
Property and equipment | |
Estimated useful life | 4 years |
Warehouse and delivery equipment | Maximum | |
Property and equipment | |
Estimated useful life | 10 years |
Vehicles and trucks | Minimum | |
Property and equipment | |
Depreciation expense for property and equipment (as a percent) | 30.00% |
Vehicles and trucks | Maximum | |
Property and equipment | |
Depreciation expense for property and equipment (as a percent) | 40.00% |
Furniture and fixtures | Minimum | |
Property and equipment | |
Depreciation expense for property and equipment (as a percent) | 8.00% |
Furniture and fixtures | Maximum | |
Property and equipment | |
Depreciation expense for property and equipment (as a percent) | 20.00% |
Machinery and equipment | |
Property and equipment | |
Depreciation expense for property and equipment (as a percent) | 30.00% |
Business, Basis of Presentati_6
Business, Basis of Presentation and Summary of Significant Accounting Policies - Insurance Liabilities (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 |
Other accrued expenses and current liabilities. | ||
Insurance Liabilities | ||
Aggregate liabilities for medical self-insurance | $ 3.8 | $ 3.4 |
General liability | ||
Insurance Liabilities | ||
Deductible amount | 0.3 | |
General liability | Minimum | ||
Insurance Liabilities | ||
Primary layer of insurance coverage | 0.3 | |
Workers' compensation | ||
Insurance Liabilities | ||
Deductible amount | 0.5 | |
Workers' compensation | Minimum | ||
Insurance Liabilities | ||
Primary layer of insurance coverage | 0.5 | |
Automobile | ||
Insurance Liabilities | ||
Deductible amount | 1 | |
Automobile | Minimum | ||
Insurance Liabilities | ||
Primary layer of insurance coverage | 1 | |
General liability, workers' compensation and automobile | Other accrued expenses and current liabilities. | ||
Insurance Liabilities | ||
Reserve for insurance | 19.4 | 17.7 |
General liability, workers' compensation and automobile | Prepaid expenses and other current assets | ||
Insurance Liabilities | ||
Insurance recovery receivable | 6 | $ 6 |
General liability, workers' compensation and automobile | Minimum | ||
Insurance Liabilities | ||
Buffer layer of insurance coverage | 5 | |
Excess layer of insurance coverage | 10 | |
General liability, workers' compensation and automobile | Maximum | ||
Insurance Liabilities | ||
Primary layer of insurance coverage | 5 | |
Buffer layer of insurance coverage | 10 | |
Excess layer of insurance coverage | $ 100 |
Business, Basis of Presentati_7
Business, Basis of Presentation and Summary of Significant Accounting Policies - Restructuring charges (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2020USD ($)facility | Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($) | |
Restructuring costs | $ 2.2 | ||
Number of facilities closed | facility | 1 | ||
Impairment | $ 1.9 | $ 1.9 | |
Severance | $ 0.3 | ||
Selling, general and administrative expenses | |||
Restructuring costs | $ 5 |
Business, Basis of Presentati_8
Business, Basis of Presentation and Summary of Significant Accounting Policies - Selling, General and Administrative Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Delivery expenses classification | |||
Cost of sales (exclusive of depreciation and amortization shown separately below) | $ 2,178,093 | $ 2,111,913 | $ 1,692,893 |
Delivery | Selling, general and administrative expenses | |||
Delivery expenses classification | |||
Cost of sales (exclusive of depreciation and amortization shown separately below) | $ 243,000 | $ 225,600 | $ 228,000 |
Business, Basis of Presentati_9
Business, Basis of Presentation and Summary of Significant Accounting Policies - Advertising Expense and Credit and Economic Risk (Details) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020USD ($)customer | Apr. 30, 2019USD ($)customer | Apr. 30, 2018USD ($) | |
Selling, general and administrative expenses | |||
Advertising Expense | |||
Advertising Expense | $ | $ 3.3 | $ 1.9 | $ 1.8 |
Accounts receivable | |||
Advertising Expense | |||
Number of major customers | customer | 0 | 0 |
Business, Basis of Presentat_10
Business, Basis of Presentation and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | May 01, 2019 | Apr. 30, 2020 |
Adoption of new accounting pronouncement | ||
Operating lease right-of-use assets | $ 115,257 | |
Operating lease liability | 122,645 | |
Operating lease right-of-use assets obtained in exchange for lease obligations | $ 38,143 | |
Adjustment | ASU 2016-02 | ||
Adoption of new accounting pronouncement | ||
Operating lease right-of-use assets | $ 118,800 | |
Operating lease liability | 118,800 | |
Operating lease right-of-use assets obtained in exchange for lease obligations | $ 4,800 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Revenue | ||
Revenue, Practical Expedient, Financing Component [true false] | true | |
Revenue, Practical Expedient, Remaining Performance Obligation [true/false] | true | |
Receivables from contracts with customers | $ 393.6 | $ 431.4 |
Business Acquisitions (Details)
Business Acquisitions (Details) $ in Thousands, shares in Millions, $ in Millions | Jun. 01, 2018USD ($)itemshares | Jun. 01, 2018CAD ($)shares | Jun. 07, 2017USD ($) | Apr. 30, 2020USD ($)segment | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | Nov. 01, 2019 |
Acquisitions | |||||||
Loan repayment | $ 571,840 | $ 477,616 | |||||
Borrowings from the revolving credit facility | $ 880,698 | 981,148 | 513,878 | ||||
Preliminary Purchase Price Allocation | |||||||
Goodwill | $ 553,073 | 617,327 | 427,645 | ||||
Number of reportable segments | segment | 1 | ||||||
Goodwill and intangible assets | |||||||
Goodwill expected to be deductible for U.S. federal income tax purposes | $ 2,100 | ||||||
Goodwill expected to be nondeductible for U.S. federal income tax purposes | 3,200 | ||||||
Third Amendment | |||||||
Acquisitions | |||||||
Aggregate principal amount | $ 996,800 | ||||||
Third Amendment | LIBOR | |||||||
Acquisitions | |||||||
Margin added to variable rate (as a percent) | 2.75% | 2.75% | |||||
Variable rate floor (as a percent) | 0.00% | 0.00% | |||||
Term Loan Facility | |||||||
Acquisitions | |||||||
Loan repayment | $ 571,800 | $ 477,600 | |||||
Titan | |||||||
Acquisitions | |||||||
Number of locations | item | 30 | ||||||
Number of provinces | item | 5 | ||||||
Aggregate purchase price | $ 627,000 | $ 800 | |||||
Issuance of shares | shares | 1.1 | 1.1 | |||||
Purchase price | |||||||
Fair value of consideration transferred | $ 611,100 | ||||||
Cash | 581,500 | ||||||
Issuance preferred stock to current shareholders of Titan | 29,600 | ||||||
Preliminary Purchase Price Allocation | |||||||
Cash | 5,573 | ||||||
Trade accounts and notes receivable | 85,009 | ||||||
Inventories | 60,272 | ||||||
Prepaid and other current assets | 8,334 | ||||||
Property and equipment | 37,263 | ||||||
Intangible assets | 286,954 | ||||||
Goodwill | 193,798 | ||||||
Accounts payable and accrued expenses | (41,803) | ||||||
Contingent consideration | (12,039) | ||||||
Deferred tax liability | (12,252) | ||||||
Fair value of consideration transferred | 611,109 | ||||||
Titan | Third Amendment | |||||||
Acquisitions | |||||||
Aggregate principal amount | $ 996,800 | ||||||
Titan | Third Amendment | LIBOR | |||||||
Acquisitions | |||||||
Margin added to variable rate (as a percent) | 2.75% | 2.75% | |||||
Variable rate floor (as a percent) | 0.00% | 0.00% | |||||
Titan | ABL facility | |||||||
Acquisitions | |||||||
Borrowings from the revolving credit facility | $ 143,000 | ||||||
Titan | Term Loan Facility | |||||||
Acquisitions | |||||||
Loan repayment | 571,800 | ||||||
2018 Acquisitions | |||||||
Purchase price | |||||||
Fair value of consideration transferred | 24,400 | ||||||
Preliminary Purchase Price Allocation | |||||||
Trade accounts and notes receivable | 4,872 | ||||||
Inventories | 4,321 | ||||||
Property and equipment | 1,081 | ||||||
Goodwill | 4,153 | ||||||
Liabilities assumed | (1,951) | ||||||
Fair value of consideration transferred | 24,454 | ||||||
2018 Acquisitions | Tradenames | |||||||
Preliminary Purchase Price Allocation | |||||||
Intangible assets | 1,000 | ||||||
2018 Acquisitions | Vendor agreement | |||||||
Preliminary Purchase Price Allocation | |||||||
Intangible assets | 1,000 | ||||||
2018 Acquisitions | Other intangible assets | |||||||
Preliminary Purchase Price Allocation | |||||||
Intangible assets | 620 | ||||||
2018 Acquisitions | Customer relationships | |||||||
Preliminary Purchase Price Allocation | |||||||
Goodwill | 9,358 | ||||||
2020 Acquisitions | |||||||
Purchase price | |||||||
Fair value of consideration transferred | 25,100 | ||||||
Preliminary Purchase Price Allocation | |||||||
Cash | 713 | ||||||
Trade accounts and notes receivable | 5,149 | ||||||
Inventories | 7,194 | ||||||
Other current assets | 72 | ||||||
Property and equipment | 6,788 | ||||||
Goodwill | 5,291 | ||||||
Liabilities assumed | (5,028) | ||||||
Fair value of consideration transferred | 25,075 | ||||||
2020 Acquisitions | Customer relationships | |||||||
Preliminary Purchase Price Allocation | |||||||
Intangible assets | 4,252 | ||||||
2020 Acquisitions | Tradenames | |||||||
Preliminary Purchase Price Allocation | |||||||
Intangible assets | $ 644 | ||||||
Rigney Building Supplies Ltd | |||||||
Acquisitions | |||||||
Outstanding common stock purchased (as a percent) | 100.00% | ||||||
As previously reported | 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 | ||||||
Intangible assets | 289,423 | ||||||
Goodwill | 196,524 | ||||||
Accounts payable and accrued expenses | (40,833) | ||||||
Contingent consideration | (12,039) | ||||||
Deferred tax liability | (14,337) | ||||||
Fair value of consideration transferred | $ 614,219 | ||||||
As previously reported | 2018 Acquisitions | |||||||
Preliminary Purchase Price Allocation | |||||||
Trade accounts and notes receivable | 4,872 | ||||||
Inventories | 4,321 | ||||||
Property and equipment | 1,081 | ||||||
Goodwill | 4,145 | ||||||
Liabilities assumed | (1,951) | ||||||
Fair value of consideration transferred | 24,446 | ||||||
As previously reported | 2018 Acquisitions | Tradenames | |||||||
Preliminary Purchase Price Allocation | |||||||
Intangible assets | 1,000 | ||||||
As previously reported | 2018 Acquisitions | Vendor agreement | |||||||
Preliminary Purchase Price Allocation | |||||||
Intangible assets | 1,000 | ||||||
As previously reported | 2018 Acquisitions | Other intangible assets | |||||||
Preliminary Purchase Price Allocation | |||||||
Intangible assets | 620 | ||||||
As previously reported | 2018 Acquisitions | Customer relationships | |||||||
Preliminary Purchase Price Allocation | |||||||
Goodwill | 9,358 | ||||||
Adjustment | Titan | |||||||
Preliminary Purchase Price Allocation | |||||||
Trade accounts and notes receivable | 970 | ||||||
Intangible assets | (2,469) | ||||||
Goodwill | (2,726) | ||||||
Accounts payable and accrued expenses | (970) | ||||||
Deferred tax liability | 2,085 | ||||||
Fair value of consideration transferred | $ (3,110) | ||||||
Adjustment | 2018 Acquisitions | |||||||
Preliminary Purchase Price Allocation | |||||||
Goodwill | 8 | ||||||
Fair value of consideration transferred | $ 8 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Property and equipment | |||
Total property and equipment | $ 464,021 | $ 405,932 | |
Accumulated depreciation | 158,554 | 123,583 | |
Property and equipment, net | 305,467 | 282,349 | |
Depreciation and amortization expense for property and equipment | 51,300 | 46,500 | $ 24,100 |
Land | |||
Property and equipment | |||
Total property and equipment | 52,581 | 52,031 | |
Buildings and leasehold improvements | |||
Property and equipment | |||
Total property and equipment | 110,322 | 99,300 | |
Machinery and equipment | |||
Property and equipment | |||
Total property and equipment | 300,133 | 252,504 | |
Construction in progress | |||
Property and equipment | |||
Total property and equipment | $ 985 | $ 2,097 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2020USD ($) | Apr. 30, 2020USD ($)segment | Apr. 30, 2019USD ($) | |
Carrying Amount of Goodwill | |||
Balance | $ 617,327 | $ 427,645 | |
Impairment of goodwill | $ (63,100) | (63,074) | |
Goodwill acquired | 5,291 | 196,267 | |
Purchase price adjustments | 8 | ||
Translation adjustment | (6,471) | (6,593) | |
Balance | 553,073 | $ 553,073 | $ 617,327 |
Number of operating segments | segment | 7 | ||
Canada | |||
Carrying Amount of Goodwill | |||
Impairment of goodwill | (63,100) | ||
Balance | $ 120,900 | $ 120,900 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Definite-lived intangible assets | ||
Gross Carrying Amount | $ 592,098 | $ 596,399 |
Accumulated Amortization | 291,581 | 228,453 |
Net Carrying Value | $ 300,517 | $ 367,946 |
Customer relationships | ||
Definite-lived intangible assets | ||
Weighted Average Amortization Period (in years) | 12 years 9 months 18 days | 12 years 9 months 18 days |
Gross Carrying Amount | $ 516,928 | $ 520,703 |
Accumulated Amortization | 270,029 | 214,044 |
Net Carrying Value | $ 246,899 | $ 306,659 |
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) | 16 years | 16 years |
Tradenames | ||
Definite-lived intangible assets | ||
Weighted Average Amortization Period (in years) | 16 years 3 months 18 days | 16 years 3 months 18 days |
Gross Carrying Amount | $ 55,654 | $ 56,018 |
Accumulated Amortization | 10,474 | 6,993 |
Net Carrying Value | $ 45,180 | $ 49,025 |
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 | 4,567 | 3,761 |
Net Carrying Value | $ 2,077 | $ 2,883 |
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 | 5 years |
Weighted Average Amortization Period (in years) | 4 years 10 months 24 days | 4 years 10 months 24 days |
Gross Carrying Amount | $ 5,036 | $ 5,209 |
Accumulated Amortization | 1,963 | 971 |
Net Carrying Value | $ 3,073 | $ 4,238 |
Leasehold interests | ||
Definite-lived intangible assets | ||
Weighted Average Amortization Period (in years) | 7 years 7 months 6 days | 7 years 7 months 6 days |
Gross Carrying Amount | $ 3,679 | $ 3,707 |
Accumulated Amortization | 2,101 | 1,502 |
Net Carrying Value | $ 1,578 | $ 2,205 |
Leasehold interests | Minimum | ||
Definite-lived intangible assets | ||
Estimated Useful Lives (years) | 1 year | 1 year |
Leasehold interests | Maximum | ||
Definite-lived intangible assets | ||
Estimated Useful Lives (years) | 15 years | 15 years |
Other intangible assets | ||
Definite-lived intangible assets | ||
Weighted Average Amortization Period (in years) | 3 years 4 months 24 days | 3 years 4 months 24 days |
Gross Carrying Amount | $ 4,157 | $ 4,118 |
Accumulated Amortization | 2,447 | 1,182 |
Net Carrying Value | $ 1,710 | $ 2,936 |
Other intangible assets | Minimum | ||
Definite-lived intangible assets | ||
Estimated Useful Lives (years) | 3 years | 3 years |
Other intangible assets | Maximum | ||
Definite-lived intangible assets | ||
Estimated Useful Lives (years) | 5 years | 5 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Intangible assets | |||
Amortization expense | $ 65,201 | $ 71,003 | $ 41,455 |
Depreciation and amortization expense | |||
Intangible assets | |||
Amortization expense | $ 65,200 | $ 71,000 | $ 41,500 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Aggregate Amortization Expense (Details) $ in Millions | Apr. 30, 2020USD ($) |
Estimated aggregate future amortization expense | |
2021 | $ 55.2 |
2022 | 46.1 |
2023 | 38.3 |
2024 | 31.2 |
2025 | 25.7 |
Thereafter | $ 104 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 |
Goodwill and Intangible Assets | ||
Tradenames | $ 61.4 | $ 61.4 |
Other Accrued Expenses and Cu_3
Other Accrued Expenses and Current Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Other Accrued Expenses and Current Liabilities | ||
Insurance related liabilities | $ 12,922 | $ 14,110 |
Customer rebates payable | 10,211 | 7,944 |
Sales taxes payable | 9,493 | 10,448 |
Reserve for sales returns | 4,081 | 4,701 |
Income taxes payable | 2,844 | 14,063 |
Real estate and personal property taxes | 2,182 | 2,010 |
Contingent consideration | 2,018 | 13,073 |
Other | 20,061 | 13,499 |
Total other accrued expenses and current liabilities | $ 63,812 | $ 79,848 |
Long-Term Debt - Components (De
Long-Term Debt - Components (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Long-term debt | ||
Carrying value of debt | $ 1,097,480 | $ 1,141,195 |
Less current portion | 50,201 | 42,118 |
Long-term debt | 1,047,279 | 1,099,077 |
Term Loan Facility | ||
Long-term debt | ||
Carrying value of debt | 866,301 | 972,650 |
Unamortized discount | 1,602 | 2,149 |
Deferred financing costs | 9,000 | 12,072 |
ABL Facility | ||
Long-term debt | ||
Carrying value of debt | 80,000 | 43,972 |
Finance lease obligations | ||
Long-term debt | ||
Carrying value of debt | 128,767 | 109,286 |
Installment notes | ||
Long-term debt | ||
Carrying value of debt | 15,218 | 15,287 |
Unamortized discount | $ 1,098 | $ 1,200 |
Installment notes | Maximum | ||
Long-term debt | ||
Interest rate | 5.00% | 5.00% |
Canadian Facility | ||
Long-term debt | ||
Carrying value of debt | $ 7,194 |
Long-Term Debt - Acquisition De
Long-Term Debt - Acquisition Debt (Details) $ in Thousands | Mar. 06, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 01, 2018USD ($) | Jun. 07, 2017USD ($) | Apr. 30, 2020USD ($)loan | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) |
Long-term debt | |||||||
Loan repayment | $ 571,840 | $ 477,616 | |||||
Write-off of debt discount and deferred financing fees | $ 1,331 | 74 | |||||
Term Loan Facility | |||||||
Long-term debt | |||||||
Loan repayment | $ 571,800 | $ 477,600 | |||||
Write-off of debt discount and deferred financing fees | $ 1,300 | ||||||
Borrowing interest rate (as a percent) | 3.15% | ||||||
Repayments of debt | $ 50,000 | $ 50,000 | |||||
First Lien Term Loan | |||||||
Long-term debt | |||||||
Loan amortization installment frequency | quarterly | ||||||
Loan amortization installments | $ 2,500 | ||||||
Loan amortization installments (as a percent) | 0.25% | ||||||
First Lien Term Loan | Minimum | |||||||
Long-term debt | |||||||
Number of incremental loans | loan | 1 | ||||||
First Lien Term Loan | Maximum | |||||||
Long-term debt | |||||||
Fixed amount of incremental loan | $ 100,000 | ||||||
Second amendment to First Lien Credit Agreement | |||||||
Long-term debt | |||||||
Aggregate principal amount | $ 577,600 | ||||||
Reduction to interest rate margin at each pricing level (as a percent) | 0.50% | ||||||
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 | ||||||
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) | 1.82% |
Long-Term Debt - Asset-Based Le
Long-Term Debt - Asset-Based Lending Facility (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | Sep. 30, 2019 | Sep. 29, 2019 | |
Long-term debt | ||||||
Net borrowings | $ 880,698 | $ 981,148 | $ 513,878 | |||
Net repayments | 837,424 | $ 937,176 | $ 617,230 | |||
ABL Facility | ||||||
Long-term debt | ||||||
Maximum amount under the facility | $ 445,000 | $ 445,000 | $ 345,000 | |||
Borrowing interest rate (as a percent) | 1.82% | |||||
Net borrowings | $ 80,000 | |||||
Available borrowings under the facility | $ 353,900 | |||||
ABL Facility | Swing-line | ||||||
Long-term debt | ||||||
Maximum amount under the facility | $ 44,500 |
Long-Term Debt - Prepayments (D
Long-Term Debt - Prepayments (Details) - Term Loan Facilities $ in Thousands | 12 Months Ended |
Apr. 30, 2020USD ($) | |
Long-term debt | |
Percentage of the net proceeds of certain asset sales and issuances or incurrences of nonpermitted indebtedness to be used for mandatory prepayments | 100.00% |
Percentage of annual excess cash flow for mandatory prepayments | 50.00% |
Prepayment required related to excess cash flow | $ 0 |
Attainment of certain total leverage ratio targets | Maximum | |
Long-term debt | |
Percentage of annual excess cash flow for mandatory prepayments | 25.00% |
Attainment of certain total leverage ratio targets | Minimum | |
Long-term debt | |
Percentage of annual excess cash flow for mandatory prepayments | 0.00% |
Long-Term Debt - Titan Revolvin
Long-Term Debt - Titan Revolving Credit Facility (Details) $ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | Jun. 01, 2018USD ($) | Jun. 01, 2018CAD ($) | |
Debt Instrument [Line Items] | ||||||
Net borrowings | $ 880,698 | $ 981,148 | $ 513,878 | |||
Canadian Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum amount under the facility | $ 21,600 | $ 30 | ||||
Net borrowings | $ 7,200 | |||||
Available borrowings under the facility | $ 14,400 |
Long-Term Debt - Installment No
Long-Term Debt - Installment Notes (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Long-term debt | ||
Long term debt | $ 1,097,480 | $ 1,141,195 |
Installment notes | ||
Long-term debt | ||
Long term debt | $ 15,200 | $ 15,300 |
Long-Term Debt - Maturities (De
Long-Term Debt - Maturities (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Debt maturities | ||
2021 | $ 50,372 | |
2022 | 46,953 | |
2023 | 48,628 | |
2024 | 31,723 | |
2025 | 100,770 | |
Thereafter | 830,734 | |
Total | 1,109,180 | |
First Lien Term Loan | ||
Debt maturities | ||
2021 | 9,968 | |
2022 | 9,968 | |
2023 | 9,968 | |
2024 | 9,968 | |
2025 | 9,968 | |
Thereafter | 827,063 | |
Total | 876,903 | |
Long Term Debt | ||
Unamortized discount | 1,602 | |
Term Loan Facility | ||
Long Term Debt | ||
Unamortized discount | 1,602 | $ 2,149 |
Deferred financing costs | 9,000 | 12,072 |
ABL Facility | ||
Debt maturities | ||
2025 | 80,000 | |
Total | 80,000 | |
Finance lease obligations | ||
Debt maturities | ||
2021 | 35,530 | |
2022 | 32,547 | |
2023 | 27,062 | |
2024 | 19,974 | |
2025 | 9,983 | |
Thereafter | 3,671 | |
Total | 128,767 | |
Installment notes | ||
Debt maturities | ||
2021 | 4,874 | |
2022 | 4,438 | |
2023 | 4,404 | |
2024 | 1,781 | |
2025 | 819 | |
Total | 16,316 | |
Long Term Debt | ||
Unamortized discount | 1,098 | $ 1,200 |
Canadian Facility | ||
Debt maturities | ||
2023 | 7,194 | |
Total | 7,194 | |
Installment notes | ||
Long Term Debt | ||
Unamortized discount | $ 1,098 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Leases | |||
Option to extend | true | ||
Finance lease cost: | |||
Amortization of right-of-use assets | $ 24,352 | ||
Interest on lease liabilities | 13,316 | ||
Operating lease cost | 42,846 | ||
Variable lease cost | 12,555 | ||
Total lease cost | $ 93,069 | ||
Rent expense | $ 53,500 | $ 63,900 | |
Minimum | |||
Leases | |||
Lease term (in years) | 1 year | ||
Renewal lease term (in years) | 1 year | ||
Maximum | |||
Leases | |||
Lease term (in years) | 11 years | ||
Renewal lease term (in years) | 5 years |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | $ 42,150 | ||
Operating cash flows from finance leases | 13,316 | ||
Financing cash flows from finance leases | 25,275 | $ 19,474 | $ 6,132 |
Right-of-use assets obtained in exchange for lease obligations - Operating leases | 38,143 | ||
Right-of-use assets obtained in exchange for lease obligations - Finance leases | $ 50,484 |
Leases - Other information (Det
Leases - Other information (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Finance leases included in property and equipment | ||
Property and equipment | $ 464,021 | $ 405,932 |
Accumulated depreciation | (158,554) | (123,583) |
Property and equipment, net | $ 305,467 | 282,349 |
Weighted-average remaining lease term (years) - Operating leases | 4 years 10 months 24 days | |
Weighted-average remaining lease term (years) - Finance leases | 3 years 7 months 6 days | |
Weighted-average discount rate - Operating leases | 5.50% | |
Weighted-average discount rate - Finance leases | 5.00% | |
Finance Leased Assets | ||
Finance leases included in property and equipment | ||
Property and equipment | $ 171,380 | 134,931 |
Accumulated depreciation | (41,737) | (27,686) |
Property and equipment, net | $ 129,643 | $ 107,245 |
Leases - Future minimum lease p
Leases - Future minimum lease payments under non-cancellable leases (Details) $ in Thousands | Apr. 30, 2020USD ($) |
Finance lease | |
2021 | $ 46,116 |
2022 | 39,328 |
2023 | 30,525 |
2024 | 21,234 |
2025 | 10,544 |
Thereafter | 3,647 |
Total lease payments | 151,394 |
Less imputed interest | 22,627 |
Total | 128,767 |
Operating lease | |
2021 | 38,960 |
2022 | 30,387 |
2023 | 23,655 |
2024 | 18,775 |
2025 | 12,154 |
Thereafter | 16,848 |
Total lease payments | 140,779 |
Less imputed interest | 18,134 |
Total | $ 122,645 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Retirement Plan | |||
Employee contributions matched by employer (as a percent) | 50.00% | ||
Employee compensation eligible for employer match of employee contributions (as a percent) | 4.00% | ||
Employer contributions to defined contribution retirement plan | $ 5.3 | $ 4.7 | $ 4.3 |
Income Taxes - Components of in
Income Taxes - Components of income before taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Income before taxes | $ 46,325 | $ 70,041 | $ 83,854 |
Domestic | |||
Income before taxes | 106,850 | 62,878 | $ 83,854 |
Foreign | |||
Income before taxes | $ (60,525) | $ 7,163 |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Components of income tax expense (benefit) | |||
Current federal | $ 12,537 | $ 11,858 | $ 30,827 |
Current foreign | 1,624 | 13,739 | |
Current state | 7,857 | 5,929 | 6,409 |
Total current | 22,018 | 31,526 | 37,236 |
Deferred federal | 8,986 | 453 | (14,796) |
Deferred foreign | (7,347) | (16,931) | |
Deferred state | (713) | (1,009) | (1,557) |
Total deferred | 926 | (17,487) | (16,353) |
Total provision for income taxes | $ 22,944 | $ 14,039 | $ 20,883 |
Income Taxes - Reconciliation t
Income Taxes - Reconciliation to Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Income tax expense (benefit) differences to amount computed by applying federal statutory rate | |||
Federal income taxes at statutory rate | $ 9,747 | $ 14,715 | $ 25,492 |
State income taxes, net of federal income tax benefit | 4,054 | 2,440 | 1,900 |
Impact of foreign rate differences | (2,861) | 418 | |
Impact of rate difference on impairment of goodwill | 7,630 | ||
Net change in valuation allowance | 9,070 | 664 | 151 |
Nondeductible meals & entertainment | 592 | 635 | 822 |
Equity-based compensation | (1,196) | (53) | |
GILTI | 704 | 241 | |
Nondeductible transaction costs | 90 | 529 | 2 |
Net deferred benefit due to Tax Cuts and Jobs Act | (6,763) | ||
Intercompany interest expense | (5,361) | (5,255) | |
Other | 475 | (295) | (721) |
Total provision for income taxes | $ 22,944 | $ 14,039 | $ 20,883 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Deferred income tax assets: | ||
Allowances on accounts and notes receivable | $ 2,016 | $ 2,306 |
Accrued payroll and related costs | 1,859 | 1,577 |
Insurance reserves | 2,501 | 1,746 |
Inventory costs | 2,630 | 2,066 |
Deferred compensation | 7,426 | 6,854 |
Equity compensation | 2,695 | 2,944 |
Derivative instrument | 7,850 | 1,358 |
Acquisition related costs | 1,311 | 1,779 |
Net operating loss carry-forwards | 1,595 | 1,745 |
Disallowed interest expense | 736 | 2,507 |
Investment in partnerships | 16,535 | 4,676 |
Deferred rent | 1,112 | 604 |
Noncompete agreements | 120 | 133 |
Other deferred tax assets, net | 1,424 | 1,394 |
Total deferred income tax assets | 49,810 | 31,689 |
Less: Valuation allowance | (10,183) | (1,112) |
Total deferred income tax assets, net of valuation allowance | 39,627 | 30,577 |
Deferred income tax liabilities: | ||
Amortization of intangible assets | (18,917) | (22,950) |
Rebates | (400) | (72) |
Depreciation | (21,508) | (10,495) |
Deferred financing costs | (1,582) | (2,075) |
Other deferred tax liabilities, net | (334) | (535) |
Total deferred income tax liabilities | (42,741) | (36,127) |
Deferred income tax liabilities, net | $ (3,114) | $ (5,550) |
Income Taxes - Tax Act (Details
Income Taxes - Tax Act (Details) - USD ($) $ in Millions | 8 Months Ended | 9 Months Ended | 12 Months Ended | 28 Months Ended |
Dec. 31, 2017 | Jan. 31, 2018 | Apr. 30, 2019 | Apr. 30, 2020 | |
Income Taxes | ||||
Federal statutory rate (as a percent) | 35.00% | 21.00% | ||
Provisional income tax benefit | $ 6.7 | |||
Decrease from provisional amount | $ (1.1) | |||
Income tax benefit related to tax adjustment | $ 0.1 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carryforwards and Valuation Allowances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Operating loss carryforwards | |||
Net operating loss carry forwards | $ 700 | $ 2,300 | |
Valuation allowance | |||
Valuation allowance | $ 10,183 | 1,112 | |
Valuation allowance increase (decrease) | $ 7,600 | ||
State | |||
Operating loss carryforwards | |||
Net operating loss carry forwards | $ 27,400 | $ 23,100 |
Income Taxes - Uncertain tax po
Income Taxes - Uncertain tax positions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Income tax examinations | ||
Reserve for uncertain tax positions | $ 0 | $ 0 |
Liability for uncertain tax position | $ 0 | $ 0 |
State | Minimum | ||
Income tax examinations | ||
Statute of limitation period | 3 years | |
State | Maximum | ||
Income tax examinations | ||
Statute of limitation period | 4 years |
Stockholders' Equity - Exchange
Stockholders' Equity - Exchangeable Shares, Share Repurchase Program and Secondary Public Offering (Details) $ / shares in Units, shares in Millions, $ in Millions | Sep. 09, 2019$ / sharesshares | Jun. 13, 2019shares | Nov. 30, 2018USD ($) | Jun. 01, 2018shares | Apr. 30, 2019USD ($)shares | Apr. 30, 2020USD ($) |
Exchangeable Shares and Share Repurchase Program | ||||||
Number of shares repurchased | 1 | |||||
Shares repurchased, cost | $ | $ 16.5 | |||||
Remaining amount under repurchase program | $ | $ 58.5 | |||||
AEA Investors LP | Selling Stockholders | ||||||
Exchangeable Shares and Share Repurchase Program | ||||||
Shares sold | 6.8 | |||||
Price to the public (in dollars per share) | $ / shares | $ 27.20 | |||||
Maximum | ||||||
Exchangeable Shares and Share Repurchase Program | ||||||
Shares repurchased, cost | $ | $ 75 | |||||
Titan | ||||||
Exchangeable Shares and Share Repurchase Program | ||||||
Issuance of shares to current shareholders of Titan (in shares) | 1.1 | |||||
Exchangeable shares converted | 1.1 | |||||
Exchangeable shares conversion ratio | 1 | |||||
Duration which stock can not be transferred | 1 year |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Accumulated other comprehensive (loss) income | |||
Balance | $ 629,176 | $ 579,451 | $ 514,606 |
Balance | 633,981 | 629,176 | 579,451 |
Other comprehensive loss on derivative instruments before reclassification, tax | 6,400 | 1,400 | |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated other comprehensive (loss) income | |||
Balance | (26,574) | 441 | (884) |
Other comprehensive (loss) income before reclassification | (38,508) | (27,743) | 309 |
Reclassification to earnings from accumulated other comprehensive (loss) income | 728 | 1,016 | |
Balance | (65,082) | (26,574) | 441 |
Foreign Currency Translation | |||
Accumulated other comprehensive (loss) income | |||
Balance | (22,320) | ||
Other comprehensive (loss) income before reclassification | (18,257) | (22,320) | |
Balance | (40,577) | (22,320) | |
Derivative Financial Instruments | |||
Accumulated other comprehensive (loss) income | |||
Balance | (4,254) | 441 | (884) |
Other comprehensive (loss) income before reclassification | (20,251) | (5,423) | 309 |
Reclassification to earnings from accumulated other comprehensive (loss) income | 728 | 1,016 | |
Balance | $ (24,505) | $ (4,254) | $ 441 |
Equity-Based Compensation (Deta
Equity-Based Compensation (Details) shares in Millions | 12 Months Ended |
Apr. 30, 2020shares | |
Stock Options | |
Stock options | |
Term of award | ten years |
Minimum | Stock Options | |
Stock options | |
Vesting period (in years) | 3 years |
Minimum | Restricted stock units | |
Stock options | |
Vesting period (in years) | 1 year |
Maximum | Stock Options | |
Stock options | |
Vesting period (in years) | 4 years |
Maximum | Restricted stock units | |
Stock options | |
Vesting period (in years) | 3 years |
Plan | |
Stock options | |
Shares authorized | 2.5 |
Number of shares available for grant | 1.2 |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Other disclosures | |||
Equity-based compensation | $ 7,060 | $ 3,906 | $ 1,695 |
Selling, general and administrative expenses | |||
Other disclosures | |||
Equity-based compensation | $ 6,500 | $ 3,600 | 1,700 |
Stock Options | |||
Number of Options | |||
Outstanding, beginning of the period (in shares) | 2,080 | ||
Options granted (in shares) | 386 | ||
Options exercised (in shares) | (874) | ||
Options forfeited (in shares) | (105) | ||
Outstanding, end of the period (in shares) | 1,487 | 2,080 | |
Exercisable at end of period (in shares) | 941 | ||
Vested and expected to vest at end of period (in shares) | 1,481 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning of period (in dollars per share) | $ 16.34 | ||
Options granted (in dollars per share) | 21.63 | ||
Options exercised (in dollars per share) | 13.22 | ||
Options forfeited (in dollars per share) | 25.73 | ||
Outstanding, end of the period (in dollars per share) | 18.85 | $ 16.34 | |
Exercisable at end of period (in dollars per share) | 16.32 | ||
Vested and expected to vest at end of period (in dollars per share) | $ 18.83 | ||
Other disclosures | |||
Weighted Average Remaining Contractual Life, Outstanding (in years) | 6 years 4 months 24 days | 6 years 1 month 24 days | |
Weighted Average Remaining Contractual Life, Exercisable at end of period (in years) | 4 years 11 months 23 days | ||
Weighted Average Remaining Contractual Life, Vested and expected to vest at end of period (in years) | 6 years 4 months 20 days | ||
Aggregate Intrinsic Value, Outstanding | $ 3,895 | $ 7,615 | |
Aggregate Intrinsic Value, Exercisable at end of period | 3,866 | ||
Aggregate Intrinsic Value, Vested and expected to vest at end of period | 3,895 | ||
Intrinsic value of options exercised | 11,500 | $ 1,600 | $ 4,300 |
Unrecognized compensation cost | $ 3,600 | ||
Weighted-average period for recognition of unrecognized compensation expense (in years) | 1 year 10 months 24 days |
Equity-Based Compensation - Bla
Equity-Based Compensation - Black Scholes Options - Pricing Model (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Stock options | |||
Volatility (as a percent) | 49.86% | 33.71% | 30.86% |
Expected life (years) | 6 years | 6 years | 6 years |
Risk-free interest rate (as a percent) | 1.97% | 2.87% | 2.18% |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Weighted average grant date fair value (in dollars per share) | $ 10.59 | $ 9.72 | $ 12.81 |
Equity-Based Compensation - Res
Equity-Based Compensation - Restricted Stock Units (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Apr. 30, 2020USD ($)$ / sharesshares | |
Number of Restricted Stock Units | |
Outstanding, beginning of the period (in shares) | shares | 193 |
Granted (in shares) | shares | 233 |
Vested (in shares) | shares | (100) |
Forfeited (in shares) | shares | (40) |
Outstanding, end of the period (in shares) | shares | 286 |
Weighted Average Exercise Price | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 25.48 |
Granted (in dollars per share) | $ / shares | 21.67 |
Vested (in dollars per share) | $ / shares | 24.48 |
Forfeited (in dollars per share) | $ / shares | 25.29 |
Outstanding, end of the period (in dollars per share) | $ / shares | $ 22.71 |
Unrecognized compensation cost | $ | $ 3.8 |
Weighted-average period for recognition of unrecognized compensation expense (in years) | 1 year 9 months 18 days |
Equity-Based Compensation - Emp
Equity-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 7,060 | $ 3,906 | $ 1,695 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of common stock price based on closing price at the beginning or end of the last day of the purchase period | 90.00% | ||
Purchase period | 6 months | ||
Number of shares authorized | 2 | ||
Number of shares available for issuance | 1.8 | ||
Number of shares purchased under ESPP | 0.1 | 0.1 | |
Average price per share | $ 15.62 | $ 18.51 | |
Share-based compensation expense | $ 500 | $ 300 | $ 100 |
Stock Appreciation Rights, De_3
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Selling, general and administrative expenses | |||
Equity based compensation arrangements | |||
Expense related to equity based compensation arrangements | $ 2,100 | $ 3,900 | $ 4,000 |
Stock Appreciation Rights | |||
Equity based compensation arrangements | |||
Award liability as of beginning of period | 23,458 | 21,944 | |
Amounts redeemed | (825) | (1,216) | |
Change in fair value | 1,572 | 2,730 | |
Award liability as of end of period | 24,205 | 23,458 | 21,944 |
Current liabilities related to plans | 624 | 1,355 | |
Long-term liabilities related to plans | $ 23,581 | 22,103 | |
Settlement period | 5 years | ||
Deferred Compensation | |||
Equity based compensation arrangements | |||
Award liability as of beginning of period | $ 1,695 | 2,222 | |
Amounts redeemed | (108) | (715) | |
Change in fair value | 73 | 188 | |
Award liability as of end of period | 1,660 | 1,695 | 2,222 |
Current liabilities related to plans | 108 | ||
Long-term liabilities related to plans | $ 1,660 | 1,587 | |
Settlement period | 5 years | ||
Redeemable Noncontrolling Interests | |||
Equity based compensation arrangements | |||
Award liability as of beginning of period | $ 12,498 | 16,170 | |
Amounts redeemed | (4,644) | (4,673) | |
Change in fair value | 446 | 1,001 | |
Award liability as of end of period | 8,300 | 12,498 | $ 16,170 |
Current liabilities related to plans | 1,569 | ||
Long-term liabilities related to plans | $ 8,300 | $ 10,929 | |
Settlement period | 5 years |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | Feb. 28, 2019 | |
Derivative [Line Items] | ||||
Change in fair value of financial instruments | $ (5,700) | $ (6,395) | $ (6,125) | |
Interest rate swap agreements | ||||
Derivative [Line Items] | ||||
Notional amount | $ 500,000 | |||
Interest rate swap agreements | Term Loan Facility | LIBOR | ||||
Derivative [Line Items] | ||||
Capped interest rate (as a percent) | 2.46% | |||
Foreign currency forward contract | ||||
Derivative [Line Items] | ||||
Change in fair value of financial instruments | $ (5,700) | $ (5,100) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Fair Value Measurements | ||||
Contingent consideration expense | $ 1,800 | $ 800 | ||
Impairment of goodwill | $ 63,100 | 63,074 | ||
Impairment charges | 1,900 | 0 | 0 | $ 0 |
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value Measurements | ||||
Stock appreciation rights | 24,205 | 24,205 | 23,458 | |
Deferred compensation | 1,660 | 1,660 | 1,695 | |
Noncontrolling interest holders | 8,300 | 8,300 | 12,498 | |
Contingent consideration | 12,354 | |||
Interest rate swap agreements | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value Measurements | ||||
Derivative liabilities | 32,218 | 32,218 | $ 5,613 | |
Titan | ||||
Fair Value Measurements | ||||
Assumed contingent consideration arrangements | $ 12,400 | $ 12,400 |
Transactions With Related Par_2
Transactions With Related Parties - Facilities Rental (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Transactions with related parties | |||
Aggregate future minimum payments due | $ 140,779 | ||
Affiliated partnerships or entities | Lease of warehouse facilities | |||
Transactions with related parties | |||
Aggregate future minimum payments due | 1,200 | ||
Affiliated partnerships or entities | Lease of warehouse facilities | Selling, general and administrative expenses | |||
Transactions with related parties | |||
Rent expense | $ 800 | $ 800 | $ 800 |
Transactions With Related Par_3
Transactions With Related Parties - Purchased Inventories (Details) - Southern Wall Products, Inc. - Inventory purchases - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Transactions with related parties | |||
Purchases from related party | $ 14.3 | $ 13.3 | $ 14 |
Accounts payable | |||
Transactions with related parties | |||
Due to SWP | $ 1.2 | $ 1.2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 30, 2020 | Apr. 30, 2020 | |
Commitments and Contingencies | ||
Gain on legal settlement | $ 14,000 | $ 14,029 |
Segments (Details)
Segments (Details) | 12 Months Ended |
Apr. 30, 2020segment | |
Segments | |
Number of operating segments | 7 |
Number of reportable segments | 1 |
Number of geographic divisions | 7 |
Segments - Net Sales, Adjusted
Segments - Net Sales, Adjusted EBITDA and Certain Other Measures (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Segment information | |||||||||||
Net sales | $ 770,850 | $ 761,352 | $ 861,929 | $ 847,176 | $ 780,149 | $ 723,902 | $ 833,837 | $ 778,144 | $ 3,241,307 | $ 3,116,032 | $ 2,511,469 |
Gross Profit | 251,594 | $ 253,473 | $ 284,493 | $ 273,654 | 256,927 | $ 234,226 | $ 268,150 | $ 244,816 | 1,063,214 | 1,004,119 | 818,576 |
Depreciation and Amortization | 116,533 | 117,459 | 65,530 | ||||||||
Adjusted EBITDA | 299,759 | 295,669 | 199,258 | ||||||||
Total assets | 2,288,782 | 2,149,554 | 2,288,782 | 2,149,554 | 1,454,511 | ||||||
Geographic divisions | |||||||||||
Segment information | |||||||||||
Net sales | 3,213,938 | 3,090,314 | 2,487,557 | ||||||||
Gross Profit | 1,053,555 | 994,981 | 809,884 | ||||||||
Depreciation and Amortization | 114,279 | 114,558 | 64,491 | ||||||||
Adjusted EBITDA | 297,646 | 293,190 | 196,903 | ||||||||
Total assets | 2,264,208 | 2,125,518 | 2,264,208 | 2,125,518 | 1,434,371 | ||||||
Other. | |||||||||||
Segment information | |||||||||||
Net sales | 27,369 | 25,718 | 23,912 | ||||||||
Gross Profit | 9,659 | 9,138 | 8,692 | ||||||||
Depreciation and Amortization | 233 | 220 | 242 | ||||||||
Adjusted EBITDA | 2,113 | 2,479 | 2,355 | ||||||||
Total assets | 18,745 | 16,897 | 18,745 | 16,897 | 12,854 | ||||||
Corporate | |||||||||||
Segment information | |||||||||||
Depreciation and Amortization | 2,021 | 2,681 | 797 | ||||||||
Total assets | $ 5,829 | $ 7,139 | $ 5,829 | $ 7,139 | $ 7,286 |
Segments - Reconciliation of Ne
Segments - Reconciliation of Net Income to Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Segments | |||||||||||
Net income | $ (41,456) | $ 10,879 | $ 29,138 | $ 24,820 | $ 16,625 | $ 5,815 | $ 24,912 | $ 8,650 | $ 23,381 | $ 56,002 | $ 62,971 |
Interest expense | 67,718 | 73,677 | 31,395 | ||||||||
Write-off of debt discount and deferred financing fees | 1,331 | 74 | |||||||||
Interest income | (88) | (66) | (177) | ||||||||
Provision for income taxes | 22,944 | 14,039 | 20,883 | ||||||||
Depreciation expense | 51,332 | 46,456 | 24,075 | ||||||||
Amortization expense | 65,201 | 71,003 | 41,455 | ||||||||
Impairment of goodwill | 63,100 | 63,074 | |||||||||
Stock appreciation expense | 1,572 | 2,730 | 2,318 | ||||||||
Redeemable noncontrolling interests | 520 | 1,188 | 1,868 | ||||||||
Equity-based compensation | 7,060 | 3,906 | 1,695 | ||||||||
Severance and other permitted costs | 5,733 | 8,152 | 581 | ||||||||
Transaction costs (acquisitions and other) | 2,414 | 7,858 | 3,370 | ||||||||
Loss (gain) on disposal and impairment of assets | 658 | (525) | (509) | ||||||||
Effects of fair value adjustments to inventory | 575 | 4,176 | 324 | ||||||||
Change in fair value of financial instruments | $ 5,700 | 6,395 | 6,125 | ||||||||
Gain on legal settlement | (14,000) | (14,029) | |||||||||
Secondary public offering costs | 363 | 1,525 | |||||||||
Debt transaction costs | 678 | 1,285 | |||||||||
Adjusted EBITDA | 299,759 | $ 295,669 | $ 199,258 | ||||||||
Impairment | $ 1,900 | $ 1,900 |
Segments - Net Sales by Main Pr
Segments - Net Sales by Main Product Lines (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Revenue from external customers | |||||||||||
Total net sales | $ 770,850 | $ 761,352 | $ 861,929 | $ 847,176 | $ 780,149 | $ 723,902 | $ 833,837 | $ 778,144 | $ 3,241,307 | $ 3,116,032 | $ 2,511,469 |
Wallboard | |||||||||||
Revenue from external customers | |||||||||||
Total net sales | 1,329,775 | 1,272,068 | 1,109,552 | ||||||||
Ceilings | |||||||||||
Revenue from external customers | |||||||||||
Total net sales | 475,827 | 451,695 | 387,360 | ||||||||
Steel framing | |||||||||||
Revenue from external customers | |||||||||||
Total net sales | 502,122 | 506,805 | 411,630 | ||||||||
Other products | |||||||||||
Revenue from external customers | |||||||||||
Total net sales | $ 933,583 | $ 885,464 | $ 602,927 |
Segments - Net sales by major g
Segments - Net sales by major geographic area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | $ 770,850 | $ 761,352 | $ 861,929 | $ 847,176 | $ 780,149 | $ 723,902 | $ 833,837 | $ 778,144 | $ 3,241,307 | $ 3,116,032 | $ 2,511,469 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | 2,805,920 | 2,701,678 | $ 2,511,469 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | $ 435,387 | $ 414,354 |
Segments - Property and equipme
Segments - Property and equipment, net, by major geographic area (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 305,467 | $ 282,349 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 270,855 | 249,857 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 34,612 | $ 32,492 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||||
Computation of basic and diluted earnings per share of common stock | ||||||||||||||
Net income | $ (41,456) | $ 10,879 | $ 29,138 | $ 24,820 | $ 16,625 | $ 5,815 | $ 24,912 | $ 8,650 | $ 23,381 | $ 56,002 | $ 62,971 | |||
Less: Net income allocated to participating securities | 74 | 1,382 | ||||||||||||
Net income attributable to common stockholders | $ 23,307 | $ 54,620 | $ 62,971 | |||||||||||
Basic earnings per common share: | ||||||||||||||
Basic weighted average common shares outstanding (in shares) | 42,435 | 42,223 | 41,761 | 41,001 | 40,487 | 40,912 | 41,149 | 41,094 | 41,853 | 40,914 | 41,015 | |||
Basic earnings per common share (in dollars per share) | $ (0.98) | $ 0.26 | $ 0.70 | $ 0.60 | $ 0.40 | $ 0.14 | $ 0.59 | $ 0.21 | $ 0.56 | [1] | $ 1.33 | [1] | $ 1.54 | [1] |
Diluted earnings per common share: | ||||||||||||||
Basic weighted average common shares outstanding (in shares) | 42,435 | 42,223 | 41,761 | 41,001 | 40,487 | 40,912 | 41,149 | 41,094 | 41,853 | 40,914 | 41,015 | |||
Add: Common Stock Equivalents | 651 | 675 | 1,148 | |||||||||||
Diluted weighted average common shares outstanding (in shares) | 42,435 | 42,949 | 42,635 | 41,615 | 40,976 | 41,371 | 41,918 | 42,074 | 42,504 | 41,589 | 42,163 | |||
Diluted earnings per common share (in dollars per share) | $ (0.98) | $ 0.25 | $ 0.68 | $ 0.59 | $ 0.39 | $ 0.14 | $ 0.58 | $ 0.20 | $ 0.55 | [1] | $ 1.31 | [1] | $ 1.49 | [1] |
Shares were not included in the calculation of Diluted loss per common share | ||||||||||||||
Anti-dilutive shares | 800 | 600 | ||||||||||||
[1] | See Note 19 for detailed calculations. |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Allowances for Accounts Receivable | |||
Allowance Rollforward | |||
Balance at beginning of period | $ (6,432) | $ (9,633) | $ (9,851) |
Provision / Additions charged to costs and expenses | (2,348) | (1,064) | (366) |
Charged to other accounts | 938 | 2,435 | (596) |
Deductions | 2,701 | 1,830 | 1,180 |
Balance at end of period | (5,141) | (6,432) | (9,633) |
Valuation Allowance on Deferred Tax Assets | |||
Allowance Rollforward | |||
Balance at beginning of period | (1,112) | (448) | (297) |
Provision / Additions charged to costs and expenses | (9,071) | (664) | (151) |
Balance at end of period | $ (10,183) | $ (1,112) | $ (448) |
Valuation and Qualifying Acco_4
Valuation and Qualifying Accounts - Reclassification (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Trade accounts and notes receivable | $ 405,254 | $ 445,771 |
Other accrued expenses and current liabilities | 63,812 | 79,848 |
ASU 2014-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Trade accounts and notes receivable | $ (3,600) | |
Other accrued expenses and current liabilities | $ (3,600) |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||||
Selected Quarterly Financial Data (Unaudited) | ||||||||||||||
Net sales | $ 770,850 | $ 761,352 | $ 861,929 | $ 847,176 | $ 780,149 | $ 723,902 | $ 833,837 | $ 778,144 | $ 3,241,307 | $ 3,116,032 | $ 2,511,469 | |||
Gross Profit | 251,594 | 253,473 | 284,493 | 273,654 | 256,927 | 234,226 | 268,150 | 244,816 | 1,063,214 | 1,004,119 | 818,576 | |||
Net income (loss) | $ (41,456) | $ 10,879 | $ 29,138 | $ 24,820 | $ 16,625 | $ 5,815 | $ 24,912 | $ 8,650 | $ 23,381 | $ 56,002 | $ 62,971 | |||
Weighted average shares outstanding: | ||||||||||||||
Basic (in shares) | 42,435 | 42,223 | 41,761 | 41,001 | 40,487 | 40,912 | 41,149 | 41,094 | 41,853 | 40,914 | 41,015 | |||
Diluted (in shares) | 42,435 | 42,949 | 42,635 | 41,615 | 40,976 | 41,371 | 41,918 | 42,074 | 42,504 | 41,589 | 42,163 | |||
Net income per share: | ||||||||||||||
Basic (in dollars per share) | $ (0.98) | $ 0.26 | $ 0.70 | $ 0.60 | $ 0.40 | $ 0.14 | $ 0.59 | $ 0.21 | $ 0.56 | [1] | $ 1.33 | [1] | $ 1.54 | [1] |
Diluted (in dollars per share) | $ (0.98) | $ 0.25 | $ 0.68 | $ 0.59 | $ 0.39 | $ 0.14 | $ 0.58 | $ 0.20 | $ 0.55 | [1] | $ 1.31 | [1] | $ 1.49 | [1] |
Impairment of goodwill | $ 63,100 | $ 63,074 | ||||||||||||
Gain on legal settlement | $ 14,000 | $ 14,029 | ||||||||||||
Change in fair value of financial instruments | $ (5,700) | $ (6,395) | $ (6,125) | |||||||||||
[1] | See Note 19 for detailed calculations. |