Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | May 31, 2021 | Oct. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Apr. 30, 2021 | ||
Document Transition Report | false | ||
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 | ||
Entity Address, Address Line Two | Suite 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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 961.7 | ||
Entity Common Stock, Shares Outstanding | 43,077,267 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement for its Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001600438 | ||
Current Fiscal Year End Date | --04-30 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 167,012 | $ 210,909 |
Trade accounts and notes receivable, net of allowances of $6,282 and $5,141, respectively | 558,661 | 440,926 |
Inventories, net | 357,054 | 299,815 |
Prepaid expenses and other current assets | 19,525 | 14,972 |
Total current assets | 1,102,252 | 966,622 |
Property and equipment, net of accumulated depreciation of $193,364 and $158,554, respectively | 311,326 | 305,467 |
Operating lease right-of-use assets | 118,413 | 115,257 |
Goodwill | 576,330 | 553,073 |
Intangible assets, net | 350,869 | 361,884 |
Deferred income taxes | 15,715 | 8,904 |
Other assets | 8,993 | 13,247 |
Total assets | 2,483,898 | 2,324,454 |
Current liabilities: | ||
Accounts payable | 322,965 | 248,902 |
Accrued compensation and employee benefits | 72,906 | 67,590 |
Other accrued expenses and current liabilities | 87,138 | 75,326 |
Current portion of long-term debt | 46,018 | 50,201 |
Current portion of operating lease liabilities | 33,474 | 33,040 |
Total current liabilities | 562,501 | 475,059 |
Non-current liabilities: | ||
Long-term debt, less current portion | 932,409 | 1,047,279 |
Long-term operating lease liabilities | 90,290 | 89,605 |
Deferred income taxes, net | 12,728 | 12,018 |
Other liabilities | 63,508 | 66,512 |
Total liabilities | 1,661,436 | 1,690,473 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, par value $0.01 per share, 500,000 shares authorized; 43,073 and 42,554 shares issued and outstanding as of April 30, 2021 and 2020, respectively | 431 | 426 |
Preferred stock, par value $0.01 per share, 50,000 shares authorized; 0 shares issued and outstanding as of April 30, 2021 and 2020 | 0 | 0 |
Additional paid-in capital | 542,737 | 529,662 |
Retained earnings | 274,535 | 168,975 |
Accumulated other comprehensive income (loss) | 4,759 | (65,082) |
Total stockholders' equity | 822,462 | 633,981 |
Total liabilities and stockholders' equity | $ 2,483,898 | $ 2,324,454 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Trade accounts and notes receivable, allowances (in dollars) | $ 6,282 | $ 5,141 |
Property and equipment, accumulated depreciation (in dollars) | $ 193,364 | $ 158,554 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 43,073,000 | 42,554,000 |
Common stock, shares outstanding (in shares) | 43,073,000 | 42,554,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | ||
Income Statement [Abstract] | ||||
Net sales | $ 3,298,823 | $ 3,241,307 | $ 3,116,032 | |
Cost of sales (exclusive of depreciation and amortization shown separately below) | 2,236,120 | 2,178,093 | 2,111,913 | |
Gross profit | 1,062,703 | 1,063,214 | 1,004,119 | |
Operating expenses: | ||||
Selling, general and administrative | 763,629 | 784,081 | 739,460 | |
Depreciation and amortization | 108,125 | 116,533 | 117,459 | |
Impairment of goodwill | 0 | 63,074 | 0 | |
Total operating expenses | 871,754 | 963,688 | 856,919 | |
Operating income | 190,949 | 99,526 | 147,200 | |
Other (expense) income: | ||||
Interest expense | (53,786) | (67,718) | (73,677) | |
Gain on legal settlement | 1,382 | 14,029 | 0 | |
Write-off of debt discount and deferred financing fees | (4,606) | (1,331) | 0 | |
Change in fair value of financial instruments | 0 | 0 | (6,395) | |
Other income, net | 3,155 | 1,819 | 2,913 | |
Total other expense, net | (53,855) | (53,201) | (77,159) | |
Income before taxes | 137,094 | 46,325 | 70,041 | |
Provision for income taxes | 31,534 | 22,944 | 14,039 | |
Net income | $ 105,560 | $ 23,381 | $ 56,002 | |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 42,765 | 41,853 | 40,914 | |
Diluted (in shares) | 43,343 | 42,504 | 41,589 | |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | [1] | $ 2.47 | $ 0.56 | $ 1.33 |
Diluted (in dollars per share) | [1] | $ 2.44 | $ 0.55 | $ 1.31 |
Comprehensive income (loss) | ||||
Net income | $ 105,560 | $ 23,381 | $ 56,002 | |
Foreign currency translation gain (loss) | 61,341 | (18,257) | (22,320) | |
Changes in other comprehensive income (loss), net of tax | 8,500 | (20,251) | (4,695) | |
Comprehensive income (loss) | $ 175,401 | $ (15,127) | $ 28,987 | |
[1] | See Note 18 for detailed calculations. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Exchangeable Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at Apr. 30, 2018 | $ 579,451 | $ 411 | $ 0 | $ 489,007 | $ 89,592 | $ 441 |
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 | (16,520) | $ (10) | (16,510) | |||
Repurchase and retirement of common stock (in shares) | (978) | |||||
Foreign currency translation gain (loss) | (22,320) | (22,320) | ||||
Other comprehensive income (loss), net of tax | (4,695) | (4,695) | ||||
Equity-based compensation | 3,726 | 3,726 | ||||
Exercise of stock options | 2,538 | $ 2 | 2,536 | |||
Exercise of stock options (in shares) | 205 | |||||
Vesting of restricted stock units (in shares) | 5 | |||||
Tax withholding related to net share settlements of equity awards | (50) | (50) | ||||
Issuance of common stock pursuant to employee stock purchase plan | 1,405 | $ 1 | 1,404 | |||
Issuance of common stock pursuant to employee stock purchase plan (in shares) | 74 | |||||
Balance at Apr. 30, 2019 | 629,176 | $ 404 | 29,639 | 480,113 | 145,594 | (26,574) |
Balance (in shares) at Apr. 30, 2019 | 40,375 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 23,381 | 23,381 | ||||
Exercise of Exchangeable Shares | 0 | $ 11 | (29,639) | 29,628 | ||
Exercise of Exchangeable Shares (in shares) | 1,129 | |||||
Foreign currency translation gain (loss) | (18,257) | (18,257) | ||||
Other comprehensive income (loss), net of tax | (20,251) | (20,251) | ||||
Equity-based compensation | 6,878 | 6,878 | ||||
Exercise of stock options | 11,793 | $ 9 | 11,784 | |||
Exercise of stock options (in shares) | 857 | |||||
Vesting of restricted stock units | 0 | $ 1 | (1) | |||
Vesting of restricted stock units (in shares) | 78 | |||||
Tax withholding related to net share settlements of equity awards | (532) | (532) | ||||
Issuance of common stock pursuant to employee stock purchase plan | 1,793 | $ 1 | 1,792 | |||
Issuance of common stock pursuant to employee stock purchase plan (in shares) | 115 | |||||
Balance at Apr. 30, 2020 | $ 633,981 | $ 426 | 0 | 529,662 | 168,975 | (65,082) |
Balance (in shares) at Apr. 30, 2020 | 42,554 | 42,554 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | $ 105,560 | 105,560 | ||||
Repurchase and retirement of common stock | (4,160) | $ (1) | (4,159) | |||
Repurchase and retirement of common stock (in shares) | (134) | |||||
Foreign currency translation gain (loss) | 61,341 | 61,341 | ||||
Other comprehensive income (loss), net of tax | 8,500 | 8,500 | ||||
Equity-based compensation | 8,412 | 8,412 | ||||
Exercise of stock options | 7,559 | $ 4 | 7,555 | |||
Exercise of stock options (in shares) | 483 | |||||
Vesting of restricted stock units | 0 | $ 1 | (1) | |||
Vesting of restricted stock units (in shares) | 75 | |||||
Tax withholding related to net share settlements of equity awards | (807) | (807) | ||||
Issuance of common stock pursuant to employee stock purchase plan | 2,076 | $ 1 | 2,075 | |||
Issuance of common stock pursuant to employee stock purchase plan (in shares) | 95 | |||||
Balance at Apr. 30, 2021 | $ 822,462 | $ 431 | $ 0 | $ 542,737 | $ 274,535 | $ 4,759 |
Balance (in shares) at Apr. 30, 2021 | 43,073 | 43,073 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 105,560 | $ 23,381 | $ 56,002 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 108,125 | 116,533 | 117,459 |
Impairment of goodwill | 0 | 63,074 | 0 |
Write-off and amortization of debt discount and debt issuance costs | 7,568 | 4,541 | 3,332 |
Equity-based compensation | 12,872 | 8,970 | 7,643 |
(Gain) loss on disposal and impairment of assets | (1,011) | 658 | (525) |
Change in fair value of financial instruments | 0 | 0 | 6,395 |
Deferred income taxes | (10,329) | 926 | (17,487) |
Other items, net | 1,552 | 4,110 | 5,984 |
Changes in assets and liabilities net of effects of acquisitions: | |||
Trade accounts and notes receivable | (101,617) | 50,215 | (18,039) |
Inventories | (46,660) | (4,579) | 5,137 |
Prepaid expenses and other assets | (2,621) | 6,623 | (4,842) |
Accounts payable | 65,446 | 31,499 | 31,269 |
Accrued compensation and employee benefits | 4,477 | 4,740 | 6,631 |
Other accrued expenses and liabilities | 9,942 | (7,612) | (5,344) |
Cash provided by operating activities | 153,304 | 303,079 | 193,615 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (29,873) | (25,193) | (18,770) |
Proceeds from sale of assets | 2,262 | 2,229 | 1,170 |
Acquisition of businesses, net of cash acquired | (35,976) | (24,136) | (583,092) |
Cash used in investing activities | (63,587) | (47,100) | (600,692) |
Cash flows from financing activities: | |||
Repayments on revolving credit facilities | (102,189) | (837,424) | (937,176) |
Borrowings from revolving credit facilities | 14,750 | 880,698 | 981,148 |
Payments of principal on long-term debt | (8,754) | (109,968) | (9,968) |
Payments of principal on finance lease obligations | (30,371) | (25,275) | (19,474) |
Borrowings from term loan | 511,000 | 0 | 996,840 |
Repayments of term loan | (869,427) | 0 | (571,840) |
Issuance of Senior Notes | 350,000 | 0 | 0 |
Repurchases of common stock | (4,160) | 0 | (16,520) |
Payments for contingent consideration | 0 | (11,133) | 0 |
Debt issuance costs | (6,299) | (1,286) | (7,933) |
Proceeds from exercises of stock options | 7,559 | 11,793 | 2,538 |
Payments for taxes related to net share settlement of equity awards | (807) | (532) | (50) |
Proceeds from issuance of stock pursuant to employee stock purchase plan | 2,076 | 1,793 | 1,405 |
Cash (used in) provided by financing activities | (136,622) | (91,334) | 418,970 |
Effect of exchange rates on cash and cash equivalents | 3,008 | (1,074) | (992) |
(Decrease) increase in cash and cash equivalents | (43,897) | 163,571 | 10,901 |
Cash and cash equivalents, beginning of year | 210,909 | 47,338 | 36,437 |
Cash and cash equivalents, end of year | 167,012 | 210,909 | 47,338 |
Supplemental cash flow disclosures: | |||
Cash paid for income taxes | 46,417 | 29,761 | 19,351 |
Cash paid for interest | 49,650 | 63,745 | 66,435 |
Supplemental schedule of noncash activities: | |||
Assets acquired under finance lease | 27,400 | 50,484 | 111,826 |
Issuance of installment notes associated with equity-based compensation liability awards | $ 590 | $ 5,163 | $ 5,356 |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | Business, Basis of Presentation and Summary of Significant Accounting Policies Business Founded in 1971, GMS Inc. (“we,” “our,” “us,” or the “Company”), through its wholly-owned operating subsidiaries, is a distributor of specialty building products including wallboard, suspended ceilings systems, or ceilings, steel framing and other complementary 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 268 distribution centers across the United States and Canada. Principles of Consolidation The consolidated financial statements present the results of operations, financial position, stockholders’ equity and cash flows of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. The results of operations of businesses acquired are included from their respective dates of acquisition. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities 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 Assets and liabilities of the Company’s Canadian subsidiaries are translated at the exchange rate prevailing at the balance sheet date, while income and expenses are translated at average rates for the period. Translation gains and losses are reported as a separate component of stockholders’ 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 Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. The Company reclassified $11.5 million of a derivative liability from other liabilities to other accrued expenses and current liabilities in the Consolidated Balance Sheet as of April 30, 2020 to correct an immaterial misclassification. 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 The Company records accounts and notes receivable net of allowances, including an allowance for expected credit losses. The Company maintains an allowance for estimated losses due to the failure of customers to make required payments, as well as allowances for cash discounts. The Company’s estimate of the allowance for expected credit losses is based on an assessment of individual past due accounts, historical loss information, accounts receivable aging and current economic factors and the Company’s expectation of future economic conditions. Account balances are written off when the potential for recovery is considered remote. Other receivables primarily include vendor rebate receivables.Other allowances includes reserves for cash discounts and reserves for service charges. The Company routinely assesses the financial strength of its customers and generally does not require collateral. Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of geographically diverse customers comprising the Company’s customer base. Inventories 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. Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Property and equipment obtained through business combinations is stated at estimated fair value as of the acquisition date. Expenditures for improvements 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: Buildings 25-39 years Furniture, fixtures and automobiles 3 - 5 years Computer hardware and software 3 - 5 years Warehouse and delivery equipment 4 - 10 years Leasehold improvements Shorter of estimated useful life or lease term Depreciation expense for property and equipment of Canadian subsidiaries is recognized over the estimated useful lives of the various asset classes as follows: 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 Straight-line over shorter of estimated useful life or lease term 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). 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 Company’s reporting units with the reporting units’ 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 unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. 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. The Company typically uses an income method to estimate the acquisition date fair value of intangible assets obtained through a business combination, which is based on forecasts of the expected future cash flows attributable to the respective assets. 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 management’s own analysis and an independent third-party valuation specialist’s appraisal. Intangible assets determined to have definite lives are amortized over their estimated useful lives. Long-Lived Assets The Company evaluates the recoverability of long-lived assets, including property and equipment, operating lease right-of-use ("ROU") 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 the carrying amount is not recoverable through the undiscounted cash flows and measures an 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 and are recorded within prepaid expenses and other current assets in the Consolidated Balance Sheets. The Company classifies assets as held for sale if it commits to a plan to sell the asset within one year and actively markets the asset in its current condition for a price that is reasonable in comparison to its estimated fair value. Leases The Company leases office and warehouse facilities, distribution equipment and its fleet of vehicles. The Company’s leases have lease terms ranging from one one 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 Sheets. Finance leases are included in property and equipment, current portion of long-term debt and long-term debt in the Consolidated Balance Sheets. 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 Company’s 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 expensed as incurred. The Company also made the accounting policy election to not separate lease components from non-lease components related to its fleet of vehicles. 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, workers’ compensation and automobile. The coverage consists of a deductible layer, a primary layer, a self-insured buffer layer, a lead umbrella layer and excess layers. The deductible amount per incident is $0.3 million, $0.5 million and $1.0 million for general liability, workers’ compensation and automobile, respectively. The primary layer of coverage is from $0.3 million, $0.5 million and $1.0 million for general liability, workers’ 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 historical loss development factors and actuarial assumptions followed in the insurance industry. The following table presents the Company’s aggregate liabilities for medical self insurance, reserves for general liability, automobile and workers’ compensation and the expected recoveries for medical self insurance, general liability, automobile and workers’ compensation. Liabilities for medical self insurance are included in other accrued expenses and current liabilities. Reserves for general liability, automobile and workers’ compensation are included in other accrued expenses and current liabilities and other liabilities in the Consolidated Balance Sheets. Expected recoveries for insurance liabilities are included in prepaid expenses and other current assets and other assets in the Consolidated Balance Sheets. April 30, 2021 2020 (in thousands) Medical self-insurance $ 3,852 $ 3,770 General liability, automobile and workers’ compensation 19,807 19,410 Expected recoveries for insurance liabilities (3,209) (6,037) 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 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. 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 in connection with the reduction in workforce and certain other restructuring activities, consisting primarily of severance and other employee costs. All costs related to the reduction in workforce were recognized and paid during the year ended April 30, 2019. Restructuring costs are classified within selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). 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 facilities and uses the effective interest method to amortize debt issuance costs for its other debt 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 other debt facilities as a reduction of the related debt in the Consolidated Balance Sheets. Stock Appreciation Rights, Deferred Compensation and Liabilities to Noncontrolling Interest Holders Certain subsidiaries have equity-based compensation agreements with the subsidiary’s employees and minority 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, “Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests,” for additional information with respect to these agreements. Derivative Instruments The Company has entered into derivative instruments to manage its exposure to certain financial risks. The Company’s 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. See Note 14, “Fair Value Measurements,” for additional information with respect to the Company’s derivative instruments. Revenue Recognition General. 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. See Note 17, “Segments,” for information regarding disaggregation of revenue, including revenue by product and by geographic area. Performance Obligations. The Company satisfies its performance obligations at a point in time, which is upon delivery of products. The Company’s payment terms vary by the type and location of its customers. The amount of time between point of sale and when payment is due is not significant and the Company has determined its contracts do not include a significant financing component. The Company’s contracts with customers involve performance obligations that are one year or less. Therefore, the Company applied the standard’s optional exemption that permits the omission of information about its unfulfilled performance obligations as of the balance sheet dates. Significant Judgments. The Company’s contracts may include terms that could cause variability in the transaction price, including customer rebates, returns and cash discounts for early payment. Variable consideration is estimated and included in 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. 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 reduces inventory to reflect the deferral of cost of sales. Selling, General and Administrative Expenses Selling, general and administrative expenses include expenses related to the delivery and warehousing of the Company's products, as well as employee compensation and benefits expenses for employees in the Company's branches and yard support center, as well as other administrative expenses, such as legal, accounting and information technology costs. Selling, general and administrative expenses included delivery expenses of $232.8 million, $243.0 million and $225.6 million during the years ended April 30, 2021, 2020 and 2019, respectively. 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 $2.3 million, $3.3 million and $1.9 million during the years ended April 30, 2021, 2020 and 2019, respectively. Equity-Based Compensation As of April 30, 2021, the Company had various stock-based compensation plans, which are more fully described in Note 12, “Equity-Based Compensation.” The Company measures compensation cost for all share-based awards at fair value on the grant date (or measurement date if different) and recognizes compensation expense, net of estimated forfeitures, over the requisite service period for awards expected to vest. The Company estimates the fair value of stock options using the Black-Scholes valuation model and determines the fair value of restricted stock units based on the quoted price of GMS’s common stock on the date of grant. The Company estimates forfeitures based on historical analysis of actual forfeitures and employee turnover. Actual forfeitures are recorded when incurred and estimated forfeitures are reviewed at least annually. 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 supports the realizability of 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 COVID-19 Pandemic . Beginning in March 2020 and during the year ended April 30, 2021, the COVID-19 pandemic caused significant volatility, uncertainty and economic disruption and impacted the Company’s operations and the operations of the Company’s customers and vendors as a result of ongoing or new quarantines, branch closures, travel and logistics restrictions, project delays or shutdowns, decreased demand and general market disruptions. The future impact of COVID-19 on the Company's financial results depends on numerous factors. The Company continues to evaluate the nature and extent of the COVID-19 pandemic’s impact on its financial condition, results of operations and cash flows. Credit Risk. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and trade accounts and notes receivable. The Company assesses the credit standing of counterparties as considered necessary. The Company routinely assesses the financial strength of its customers and generally does not require collateral. Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of geographically diverse customers comprising the Company’s customer base. Additionally, the Company maintains allowances for potential credit losses. The Company does not enter into financial instruments for trading or speculative purposes. As of April 30, 2021 and 2020, no customer accounted for more than 10% of gross accounts receivable. Supply Risk. The Company purchases most of its inventories from a select group of vendors. Without these vendors, the Company’s ability to acquire inventory would be significantly impaired. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Authoritative guidance for fair value measurements establishes a three-level hierarchy that prioritizes the inputs to valuation models based upon the degree to which they are observable. The three levels of the fair value measurement hierarchy are as follows: Level 1 Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 Inputs are unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying values of the Company’s cash, cash equivalents, trade receivables and trade payables approximate their fair values because of their short-term nature. Based on borrowing rates available to the Company for loans with similar terms, the carrying values of the Company’s variable rate debt instruments approximate fair value. See Note 14, “Fair Value Measurements,” for additional information with respect to the Company’s fair value measurements. Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of outstanding shares of common stock for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, including stock options and restricted stock units (collectively “Common Stock Equivalents”), were exercised or converted into common stock. The dilutive effect of outstanding stock options and restricted stock units is reflected in diluted earnings per share by application of the treasury stock method. In applying the treasury stock method for stock-based compensation arrangements, the assumed proceeds are computed as the sum of the amount the employee must pay upon exercise and the amount of compensation cost attributed to future services and not yet recognized. Diluted earnings per share is computed by increasing the weighted-average number of outstanding shares of common stock computed in basic earnings per share to include the dilutive effect of Common Stock Equivalents for the period. In periods of net loss, the number of shares used to calculate diluted loss per share is the same as basic net loss per share. The holders of the Company’s Exchangeable Shares (as defined in Note 2, “Business Acquisitions” and further described in Note 11, “Stockholders’ Equity”) were entitled to receive dividends or distributions that were equal to any dividends or distributions on the Company’s 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 Credit Losses – In June 2016, the Financial Accounting Standards Board (“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 and other receivables, emphasizing an updated model based on expected losses rather than incurred losses. The Company adopted this guidance on May 1, 2020 with no material impact to its financial statements. See the heading “Trade Accounts Receivable” in this Note 1, "Business, Basis of Presentation and Summary of Significant Accounting Policies," and Note 3, “Accounts Receivable,” for additional information with respect to the Company’s allowance for expected credit losses. Fair Value Measurement Disclosures – In August 2018, the FASB issued new guidance that changes certain fair value measurement disclosure requirements. The Company adopted this guidance on May 1, 2020 with no material impact to its financial statements. Recently Issued Accounting Pronouncements Reference Rate Reform – 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 Acquisitions
Business Acquisitions | 12 Months Ended |
Apr. 30, 2021 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions The Company accounts for business combinations by recognizing the assets acquired and liabilities assumed at the acquisition date fair value. In valuing certain acquired assets and liabilities, fair value estimates use Level 3 inputs, including future expected cash flows and discount rates. Goodwill is measured as the excess of consideration transferred over the fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to value assets acquired and liabilities assumed at the acquisition date, the Company’s estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments arising from new facts and circumstances are recorded to the Consolidated Statements of Operations and Comprehensive Income (Loss). The results of operations of acquisitions are reflected in the Company’s Consolidated Financial Statements from the date of acquisition. Fiscal 2021 Acquisition On February 1, 2021, the Company acquired 100% of the outstanding stock of D.L. Building Materials Inc. (“D.L. Building Materials”) for a purchase price of approximately $39.5 million ($50.6 million Canadian dollars). D.L. Building Materials distributes wallboard, acoustical ceilings, steel framing, insulation and related building products in the Eastern Ontario and Western Quebec markets through two locations in Gatineau, Quebec and Kingston, Ontario. The assets acquired and liabilities assumed were recognized at their acquisition date fair values. The acquisition accounting is subject to change as the Company obtains additional information during the measurement period about the facts and circumstances that existed as of the acquisition date. The primary areas of the preliminary acquisition accounting that are not yet finalized relate to working capital adjustments. The following table summarizes the preliminary acquisition accounting for this acquisition based on currently available information: Preliminary (in thousands) Cash $ 4,179 Trade accounts and notes receivable 8,325 Inventories 5,075 Prepaid and other current assets 675 Property and equipment 2,721 Operating lease right-of-use assets 1,103 Customer relationships 20,926 Tradenames 2,498 Goodwill 9,084 Liabilities assumed (12,282) Deferred income taxes (2,830) Fair value of consideration transferred $ 39,474 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 the Company's geographic divisions reportable segment. Goodwill is not expected to be deductible for U.S. federal income tax purposes. The pro forma impact of this acquisition is not presented as it is not considered material to the Company's Consolidated Financial Statements. Fiscal 2020 Acquisitions In fiscal 2020, the Company completed the following acquisitions, with an aggregate purchase price of $24.9 million of cash consideration. The purpose of these acquisitions was to expand the geographical coverage of the Company and grow the business. Company Name Form of Acquisition Date of Acquisition J.P. Hart Lumber Company Purchase of net assets June 3, 2019 Rigney Building Supplies Ltd. Purchase of 100% of outstanding common stock November 1, 2019 Trowel Trades Supply, Inc. Purchase of net assets February 1, 2020 Fiscal 2019 Acquisitions Acquisition of Titan On June 1, 2018, the Company acquired all of the outstanding equity interests of WSB Titan (“Titan”), a distributor 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 Titan’s management converted a portion of their ownership position into 1.1 million shares of equity that are exchangeable for the Company’s common stock (“Exchangeable Shares”). The purpose of the transaction was to extend the Company’s leadership position in North America with additional scale and footprint, expand its geographic coverage into the Canadian market and create opportunities for further expansion in Canada. To finance this transaction, on June 1, 2018, the Company entered into a Third Amendment to its First Lien Credit Agreement (the “Third Amendment”) that provides for a new first lien term loan facility under the first lien credit agreement in the aggregate principal amount of $996.8 million due in June 2025 that bears interest at a floating rate based on LIBOR, with a 0% floor, plus 2.75%. The Company also drew down $143.0 million under its Asset Based Lending Facility (“ABL Facility”). The net proceeds from the new first lien term loan facility, ABL Facility and cash on hand were used to repay the Company’s existing first lien term loan facility of $571.8 million under the Credit Agreement and to finance its acquisition of Titan. The fair value of consideration transferred was $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, “Stockholders’ Equity,” for more information on the Exchangeable Shares. The Company also assumed certain contingent consideration arrangements that relate to previous acquisitions of Titan. The contingent consideration arrangements were based on performance of Titan’s business and were substantially paid in cash in fiscal 2020. The following table summarizes the acquisition accounting: Preliminary Adjustments/ Final (in thousands) Cash $ 5,573 $ — $ 5,573 Trade accounts and notes receivable 84,039 970 85,009 Inventories 60,272 — 60,272 Prepaid and other current assets 8,334 — 8,334 Property and equipment 37,263 — 37,263 Goodwill 196,524 (2,726) 193,798 Intangible assets 289,423 (2,469) 286,954 Accounts payable and accrued expenses (40,833) (970) (41,803) Contingent consideration (12,039) — (12,039) Deferred income taxes (14,337) 2,085 (12,252) Fair value of consideration transferred $ 614,219 $ (3,110) $ 611,109 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 Company’s geographic divisions reportable segment. The goodwill is not deductible for income tax purposes. Other Fiscal 2019 Acquisitions On August 7, 2018, the Company acquired Charles G. Hardy, Inc. (“CGH”). CGH is an interior building products distributor in Paramount, California. On March 4, 2019, the Company acquired Commercial Builders Group, LLC (“CBG”). CBG is an interior building products distributor in LaPlace, Louisiana. The impact of these acquisitions is not material to the Company’s Consolidated Financial Statements. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Apr. 30, 2021 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The Company’s trade accounts and notes receivable consisted of the following: April 30, 2021 2020 (in thousands) Trade receivables $ 488,002 $ 398,739 Other receivables 76,941 47,328 Allowance for expected credit losses (3,254) (2,861) Other allowances (3,028) (2,280) Trade accounts and notes receivable $ 558,661 $ 440,926 The following table presents the change in the allowance for expected credit losses during the year ended April 30, 2021: (in thousands) Balance as of May 1, 2020 $ 2,861 Provision 1,774 Write-offs (1,381) Balance as of April 30, 2021 $ 3,254 Receivables from contracts with customers, net of allowances, were $481.7 million and $393.6 million as of April 30, 2021 and 2020, respectively. The Company did not have material amounts of contract assets or liabilities as of April 30, 2021 or 2020. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The Company’s property and equipment consisted of the following: April 30, 2021 2020 (in thousands) Land $ 56,841 $ 52,581 Buildings and leasehold improvements 120,616 110,322 Machinery and equipment 324,375 300,133 Construction in progress 2,858 985 Total property and equipment 504,690 464,021 Less: accumulated depreciation and amortization 193,364 158,554 Total property and equipment, net of accumulated depreciation $ 311,326 $ 305,467 Depreciation expense for property and equipment, which includes amortization of property under finance leases, was $50.5 million, $51.3 million and $46.5 million during the years ended April 30, 2021, 2020 and 2019 respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Apr. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table presents changes in the carrying amount of goodwill: Gross Accumulated Net Carrying Amount Impairment Loss Carrying Amount (in thousands) Balance as of April 30, 2020 $ 616,147 $ (63,074) $ 553,073 Goodwill recognized from acquisition 9,084 — 9,084 Purchase price adjustments (159) — (159) Translation adjustment 20,305 (5,973) 14,332 Balance as of April 30, 2021 $ 645,377 $ (69,047) $ 576,330 All goodwill relates to the Company's geographic divisions reportable segment. The annual impairment test during the fourth quarter of fiscal 2021 indicated that the fair value of the Company’s reporting units exceeded their carrying values. The Company identified eight reporting units for evaluating goodwill for the fiscal 2021 annual impairment test, which were Central, Midwest, Northeast, Southern, Southeast, Southwest, 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. 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. 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. This charge was included in 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 unit’s forecasted near-term cash flows, primarily resulting from COVID-19 driven economic uncertainty. The impairment charge was equal to the excess of the reporting unit’s carrying value over its fair value. As of April 30, 2021, the Company had $144.6 million of remaining goodwill related to its Canada reporting unit. The Company’s annual impairment test during the fourth quarter of fiscal 2020 indicated the estimated fair values of its other reporting units exceeded their carrying values. The Company's annual impairment tests during the fourth quarters of fiscal 2021 and 2019 indicated that the fair value of the Company’s reporting units exceeded their carrying values. Intangible Assets The following tables present the components of the Company’s definite-lived intangible assets: Estimated Weighted April 30, 2021 Gross Accumulated Net (dollars in thousands) Customer relationships 5 - 16 13.3 $ 569,255 $ (330,880) $ 238,375 Definite-lived tradenames 5 - 20 16.8 62,084 (14,842) 47,242 Vendor agreements 8 - 10 8.3 6,644 (5,372) 1,272 Developed technology 5 4.9 5,699 (3,381) 2,318 Other 3 - 5 3.3 4,291 (3,996) 295 Totals $ 647,973 $ (358,471) $ 289,502 Estimated Weighted April 30, 2020 Gross Accumulated Net (dollars in thousands) Customer relationships 5 - 16 12.8 $ 516,928 $ (270,029) $ 246,899 Definite-lived tradenames 5 - 20 16.3 55,654 (10,474) 45,180 Vendor agreements 8 - 10 8.3 6,644 (4,567) 2,077 Developed technology 5 4.9 5,036 (1,963) 3,073 Other 1 - 15 5.3 7,836 (4,548) 3,288 Totals $ 592,098 $ (291,581) $ 300,517 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 $57.6 million, $65.2 million and $71.0 million during the years ended April 30, 2021, 2020 and 2019, respectively, and is recorded in depreciation and amortization expense in the Consolidated Statements of Operations and Comprehensive Income (Loss). The following table summarizes the estimated future amortization expense for definite-lived intangible assets. 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. Year Ending April 30, (in thousands) 2022 $ 53,094 2023 44,251 2024 36,024 2025 29,738 2026 24,807 Thereafter 101,588 Total $ 289,502 The Company’s indefinite-lived intangible assets, other than goodwill, consist of tradenames that had a carrying amount of $61.4 million as of April 30, 2021 and 2020. |
Other Accrued Expenses and Curr
Other Accrued Expenses and Current Liabilities | 12 Months Ended |
Apr. 30, 2021 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Other Accrued Expenses and Current Liabilities | Other Accrued Expenses and Current Liabilities The Company’s other accrued expenses and current liabilities consisted of the following: April 30, 2021 2020 (in thousands) Insurance related liabilities $ 14,301 $ 12,922 Customer rebates payable 12,723 10,211 Sales taxes payable 11,529 9,493 Derivative liability 11,817 11,514 Reserve for sales returns 6,028 4,081 Income taxes payable 5,928 2,844 Other 24,812 24,261 Total other accrued expenses and current liabilities $ 87,138 $ 75,326 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The Company’s long-term debt consisted of the following: April 30, 2021 2020 (in thousands) Term Loan Facility $ 509,722 $ 876,903 Unamortized discount and deferred financing costs on Term Loan Facility (4,735) (10,602) ABL Facility — 80,000 Senior Notes 350,000 — Unamortized discount and deferred financing costs on Senior Notes (5,485) — Finance lease obligations 117,948 128,767 Installment notes at fixed rates up to 5.0%, due in monthly and annual installments through 2025 11,716 16,316 Unamortized discount on installment notes (739) (1,098) Canadian Facility — 7,194 Carrying value of debt 978,427 1,097,480 Less current portion 46,018 50,201 Long-term debt $ 932,409 $ 1,047,279 Term Loan Facility The Company’s wholly-owned subsidiaries, GYP Holdings II Corp., as parent guarantor (in such capacity, “Holdings”), and GYP Holdings III Corp., as borrower (in such capacity, the “Borrower” and, together with Holdings and the Subsidiary Guarantors (as defined below), the “Loan Parties”), have a senior secured first lien term loan facility (the “Term Loan Facility”). 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. The Company is required to make scheduled quarterly payments of $1.3 million, or 0.25% of the aggregate principal amount of the Term Loan Facility, with the balance due June 1, 2025. Provided that the individual affected lenders agree accordingly, the maturities of the Term Loan Facility may, upon the Borrower’s 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. As of April 30, 2021, the applicable rate of interest was 2.61%. 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 Company’s 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 (Loss) for the year ended April 30, 2020 . On April 22, 2021, the Company entered into the Fourth Amendment to its First Lien Credit Agreement (the “Fourth Amendment”) that, among other things, reduced the applicable interest rate to LIBOR plus 2.50%, with a 0% floor. The Company used net proceeds from the issuance of senior unsecured notes due May 2029 (the "Senior Notes") on April 22, 2021 to repay a portion of outstanding borrowings under the Company's Term Loan Facility. After giving effect to the Fourth Amendment, the aggregate principal amount outstanding under the Term Loan Facility was $511.0 million. The Company recorded a write-off of debt discount and deferred financing fees of $4.6 million, which is included in write-off of debt discount and deferred financing fees in the Consolidated Statement of Operations and Comprehensive Income (Loss) for the year ended April 30, 2021. On April 30, 2021, the Company made a scheduled quarterly payment of $1.3 million on the Term Loan Facility. 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 “Lead Borrower”). Extensions of credit under the ABL Facility are limited by a borrowing base calculated periodically based on specified percentages of the value of eligible inventory and eligible accounts receivable, subject to certain reserves and other adjustments. At the Company’s option, the interest rates applicable to the loans under the ABL Facility are based at LIBOR or base rate plus, in each case, an applicable margin. The margins applicable for each elected interest rate are subject to a pricing grid, as defined in the ABL Facility agreement, based on average daily availability for the most recent fiscal quarter. The ABL Facility also contains an unused commitment fee subject to utilization, as included in the ABL Facility agreement. As of April 30, 2021, the Company had available borrowing capacity of $429.6 million under the ABL Facility. The ABL Facility matures on September 30, 2024 unless the individual affected lenders agree to extend the maturity of their respective loans under the ABL Facility upon the Company’s request and without the consent of any other lender. The ABL Facility contains a cross default provision with the 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, “ABL Priority Collateral”) and (b) second priority perfected liens on the remaining assets of the Loan Parties not constituting ABL Priority Collateral, subject to customary exceptions (collectively, “Term Priority Collateral”) 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. Prepayments The Term Loan Facility may be prepaid at any time. Under certain circumstances and subject to certain exceptions, the Term Loan Facility will be subject to mandatory prepayments in the amount equal to: • 100% of the net proceeds of certain asset sales and issuances or incurrences of nonpermitted indebtedness; and • 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, 2021, there was no prepayment required related to excess cash flow. The ABL Facility may be prepaid at the Company’s 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 lenders’ commitments under the ABL Facility. Guarantees Holdings guarantees the payment obligations under the ABL Facility and the Term Loan Facility. Certain of Holdings’ subsidiaries (i) guarantee the payment obligations under the Term Loan Facility (in such capacity, the “Subsidiary Guarantors”) and (ii) are co-borrowers under the ABL Facility. Covenants The ABL Facility contains certain affirmative covenants, including financial and other reporting requirements. The Company was in compliance with all such covenants as of April 30, 2021. The Term Loan Facility contains a number of covenants that limit the Company’s ability and the ability of the Company’s 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, 2021. Events of Default The ABL Facility and Term Loan Facility also provide for customary events of default, including non-payment of principal, interest or fees, violation of covenants, material inaccuracy of representations or warranties, specified cross default to other material indebtedness, certain bankruptcy events, certain ERISA events, material invalidity of guarantees or security interest, material judgments and changes of control. Senior Notes On April 22, 2021, the Company issued $350.0 million aggregate principal amount of Senior Notes in a private offering. Proceeds from the Senior Notes were used to repay a portion of outstanding borrowings under the Company's Term Loan Facility and to pay related transaction fees and expenses. The Senior Notes bear interest at 4.625% per annum and mature on May 1, 2029. Interest is payable semi-annually in arrears on May 1 and November 1. The Senior Notes are general senior unsecured obligations, rank equally in right of payment with all existing and future senior indebtedness of the Company, including the Term Loan Facility and ABL Facility, and are senior in right of payment to any existing and future subordinated indebtedness of the Company. The Senior Notes and the related guarantees are effectively subordinated to all existing and future secured indebtedness of the Company and the Company’s subsidiaries guaranteeing the notes, including indebtedness under the Term Loan Facility and the ABL Facility, to the extent of the value of the assets securing such indebtedness. The Senior Notes and the related guarantees are structurally subordinated to all of the existing and future indebtedness and other liabilities of the Company’s subsidiaries that do not guarantee the Senior Notes, including the senior secured asset-based revolving credit facility of Titan (the “Canadian Facility”). The Company may redeem some or all of the Senior Notes at any time on or after May 1, 2024, at the redemption prices set forth in the indenture, plus accrued and unpaid interest up to, but not including, the redemption date. Prior to May 1, 2024, the Company may redeem some or all of the Senior Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, plus the “make-whole” premium set forth in the indenture. The Company may redeem up to 40% of the Senior Notes at any time prior to May 1, 2024 with the proceeds of certain equity offerings at the redemption prices set forth in the Indenture. If the Company sells certain assets or consummates certain change in control transactions, the Company will be required to make an offer to repurchase the Senior Notes. The indenture contains certain covenants that, among other things, limit the Company’s ability and the ability of its restricted subsidiaries to incur additional indebtedness, make certain dividends, repurchase Company stock or make other distributions, make certain investments, create liens, transfer or sell assets, merge or consolidate, and enter into transactions with the Company’s affiliates. Such covenants are subject to a number of important exceptions and qualifications set forth in the Indenture. The indenture also contains certain customary events of default, including failure to make payments in respect of the principal amount of the Senior Notes, failure to make payments of interest on the Senior Notes when due and payable, failure to comply with certain covenants and agreements and certain events of bankruptcy or insolvency. Canadian Revolving Credit Facility The Company has a Canadian Facility that provides for aggregate revolving commitments of $24.4 million ($30.0 million Canadian dollars), as amended. The Canadian Facility bears interest at the Canadian prime rate plus a marginal rate based on the level determined by Titan’s total debt to EBITDA ratio at the end of the most recently completed fiscal quarter or year. During the year ended April 30, 2021, the Company amended the Canadian Facility to, among other things, extend the maturity date and remove the highest pricing level applicable to borrowings under the Canadian Facility. As of April 30, 2021, the Company had available borrowing capacity of $24.2 million under the Canadian Facility. The Canadian Facility matures on January 12, 2026. Installment Notes The Company’s installment notes include notes for subsidiary stock repurchases from stockholders, notes for the payout of stock appreciation rights and a note to the seller of an acquired company. See Note 13, “Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests.” Debt Maturities As of April 30, 2021, the maturities of existing long-term debt and finance leases were as follows: Term Loan Facility Senior Notes Finance Leases Installment Notes Total Year Ending April 30, (in thousands) 2022 $ 5,110 $ — $ 36,665 $ 4,520 $ 46,295 2023 5,110 — 31,525 4,505 41,140 2024 5,110 — 24,602 1,881 31,593 2025 5,110 — 14,675 810 20,595 2026 489,282 — 7,454 — 496,736 Thereafter — 350,000 3,027 — 353,027 $ 509,722 $ 350,000 $ 117,948 $ 11,716 $ 989,386 |
Leases
Leases | 12 Months Ended |
Apr. 30, 2021 | |
Lessee Disclosure [Abstract] | |
Leases | Leases The components of lease expense were as follows: Year Ended April 30, 2021 2020 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 23,769 $ 24,352 Interest on lease liabilities 11,164 13,316 Operating lease cost 42,383 42,846 Variable lease cost 12,914 12,555 Total lease cost $ 90,230 $ 93,069 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 during the year ended April 30, 2019, 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: Year Ended April 30, 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 42,876 $ 42,150 Operating cash flows from finance leases 11,164 13,316 Financing cash flows from finance leases 30,371 25,275 Right-of-use assets obtained in exchange for lease obligations Operating leases 37,513 38,143 Finance leases 27,400 50,484 Other information related to leases was as follows: April 30, 2021 2020 (in thousands) Finance leases included in property and equipment Property and equipment $ 176,591 $ 171,380 Accumulated depreciation (51,869) (41,737) Property and equipment, net $ 124,722 $ 129,643 Weighted-average remaining lease term (years) Operating leases 4.7 4.9 Finance leases 3.5 3.6 Weighted-average discount rate Operating leases 5.5 % 5.5 % Finance leases 4.6 % 5.0 % Future minimum lease payments under non-cancellable leases as of April 30, 2021 were as follows: Finance Operating Year Ending April 30, (in thousands) 2022 $ 44,209 $ 39,474 2023 35,538 32,704 2024 26,259 26,764 2025 15,266 18,455 2026 7,627 8,707 Thereafter 3,051 15,197 Total lease payments 131,950 141,301 Less imputed interest 14,002 17,537 Total $ 117,948 $ 123,764 |
Leases | Leases The components of lease expense were as follows: Year Ended April 30, 2021 2020 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 23,769 $ 24,352 Interest on lease liabilities 11,164 13,316 Operating lease cost 42,383 42,846 Variable lease cost 12,914 12,555 Total lease cost $ 90,230 $ 93,069 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 during the year ended April 30, 2019, 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: Year Ended April 30, 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 42,876 $ 42,150 Operating cash flows from finance leases 11,164 13,316 Financing cash flows from finance leases 30,371 25,275 Right-of-use assets obtained in exchange for lease obligations Operating leases 37,513 38,143 Finance leases 27,400 50,484 Other information related to leases was as follows: April 30, 2021 2020 (in thousands) Finance leases included in property and equipment Property and equipment $ 176,591 $ 171,380 Accumulated depreciation (51,869) (41,737) Property and equipment, net $ 124,722 $ 129,643 Weighted-average remaining lease term (years) Operating leases 4.7 4.9 Finance leases 3.5 3.6 Weighted-average discount rate Operating leases 5.5 % 5.5 % Finance leases 4.6 % 5.0 % Future minimum lease payments under non-cancellable leases as of April 30, 2021 were as follows: Finance Operating Year Ending April 30, (in thousands) 2022 $ 44,209 $ 39,474 2023 35,538 32,704 2024 26,259 26,764 2025 15,266 18,455 2026 7,627 8,707 Thereafter 3,051 15,197 Total lease payments 131,950 141,301 Less imputed interest 14,002 17,537 Total $ 117,948 $ 123,764 |
Retirement Plan
Retirement Plan | 12 Months Ended |
Apr. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plan | 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 employee’s contributions on the first 4% of the employee’s compensation contributed. The Company contributed $3.2 million, $5.3 million and $4.7 million, during the years ended April 30, 2021, 2020 and 2019, respectively. In June 2020, the Company temporarily suspended matching contributions under the plan. In January 2021, the Company reinstated its matching contributions. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the components of income before taxes for the years ended April 30, 2021, 2020 and 2019: Year Ended April 30, 2021 2020 2019 (in thousands) United States $ 106,059 $ 106,850 $ 62,878 Foreign 31,035 (60,525) 7,163 Income before taxes $ 137,094 $ 46,325 $ 70,041 The following table presents the components of income tax expense for the years ended April 30, 2021, 2020 and 2019: Year Ended April 30, 2021 2020 2019 (in thousands) Current Federal $ 27,171 $ 12,537 $ 11,858 Foreign 9,098 1,624 13,739 State 5,594 7,857 5,929 Total Current 41,863 22,018 31,526 Deferred Federal (4,653) 8,986 453 Foreign (5,870) (7,347) (16,931) State 194 (713) (1,009) Total Deferred (10,329) 926 (17,487) Total provision for income taxes $ 31,534 $ 22,944 $ 14,039 The following table summarizes the significant differences between the U.S. federal statutory tax rate and the Company’s effective tax rate for financial statement for the years ended April 30, 2021, 2020 and 2019: Year Ended April 30, 2021 2020 2019 (in thousands) Federal income taxes at statutory rate $ 28,793 $ 9,747 $ 14,715 State income taxes, net of federal income tax benefit 4,000 4,054 2,440 Impact of foreign rate differences 1,162 (2,861) 418 Impact of rate difference on impairment of goodwill — 7,630 — Net change in valuation allowance 578 9,070 664 Nondeductible meals & entertainment 252 592 635 Equity-based compensation (1,012) (1,196) (53) GILTI 1,911 704 241 Nondeductible transaction costs — 90 529 Intercompany interest expense (4,532) (5,361) (5,255) Other 382 475 (295) Total provision for income taxes $ 31,534 $ 22,944 $ 14,039 The tax effects of temporary differences, which give rise to deferred income taxes as of April 30, 2021 and 2020 are as follows: April 30, 2021 2020 Deferred income tax assets: (in thousands) Allowances on accounts and notes receivable $ 2,617 $ 2,016 Accrued payroll and related costs 5,093 1,859 Insurance reserves 4,086 2,501 Inventory costs 3,252 2,630 Deferred compensation 7,892 7,426 Equity compensation 2,612 2,695 Derivative instrument 5,083 7,850 Acquisition related costs 1,202 1,311 Net operating loss carry-forwards 1,591 1,595 Disallowed interest expense 974 736 Investment in partnerships 24,316 16,535 Deferred rent 829 1,112 Noncompete agreements 95 120 Other deferred tax assets, net 1,147 1,424 Total deferred income tax assets 60,789 49,810 Less: Valuation allowance (11,768) (10,183) Total deferred income tax assets, net of valuation allowance 49,021 39,627 Deferred income tax liabilities: Amortization of intangible assets (19,583) (18,917) Rebates (151) (400) Depreciation (25,668) (21,508) Deferred financing costs (463) (1,582) Other deferred tax liabilities, net (169) (334) Total deferred income tax liabilities (46,034) (42,741) Deferred income tax liabilities, net $ 2,987 $ (3,114) GILTI. The Company is subject to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. As of April 30, 2021, the Company’s assertion has not changed from the year ended April 30, 2020 that it 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 does not anticipate significant tax consequences from any future distributions. NOLs . During recent tax years, the Company generated certain state net operating loss carry-forwards which are available for use against taxable income in each respective state. The Company had gross state net operating losses available for carry-forward of $29.7 million as of April 30, 2021 and gross federal and state net operating losses available for carry-forward of $0.7 million and $27.4 million as of April 30, 2020, respectively, which expire beginning in 2024. Valuation allowance. Deferred tax assets and liabilities are computed by applying the federal and state income tax rates in effect to the gross amounts of temporary differences and other tax attributes, such as net operating loss carry-forwards. In assessing if the deferred tax assets will be realized, the Company considers whether it is more likely than not that some or all of these deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which these deductible temporary differences reverse. The tax credits, carryforwards and net operating losses expire from 2022 to 2041. 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, 2021 and 2020 primarily relates 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, 2021 and state tax attribute carry forwards. Uncertain tax positions. The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. The Company’s policy for recording penalties and interest associated with uncertain tax positions is to record such items as a component of selling, general and administrative expense. The Company had no reserve for uncertain tax positions as of April 30, 2021 and 2020. As of April 30, 2021, the tax years ended April 30, 2021, 2020, 2019 and 2018 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, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Exchangeable Shares In connection with the acquisition of Titan on June 1, 2018, the Company issued 1.1 million Exchangeable Shares. The Exchangeable Shares were issued by an indirect wholly owned subsidiary of the Company. The Exchangeable Shares ranked senior to the Company’s common stock with respect to dividend rights and rights on liquidation, dissolution and winding-up. The holders of the Exchangeable Shares were entitled to receive dividends or distributions that are equal to any dividends or distributions on the Company’s common stock. The holders of the Exchangeable Shares did not have voting rights. 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 Company’s common stock. Following such exchange, the Exchangeable Shares ceased to be outstanding. Share Repurchase Program The Company's Board of Directors has authorized a common stock repurchase program to repurchase up to $75.0 million of 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. These repurchases are 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. The share repurchase program does not obligate the Company to acquire any particular amount of common stock, and it may be suspended or terminated at any time at the Company’s discretion. The Company repurchased 134 thousand and 1.0 million shares of its common stock for $4.2 million and $16.5 million during the years ended April 30, 2021 and April 30, 2019, respectively, pursuant to its share repurchase program. The Company did not repurchase any shares of its common stock during the year ended April 30, 2020. The repurchased common stock was retired. As of April 30, 2021, the Company had $54.3 million of remaining repurchase authorization under its share repurchase program. Secondary Public Offering On September 9, 2019, AEA Investors LP and its affiliates (“AEA”) completed a secondary public offering of 6.8 million shares of the Company’s common stock at a price to the public of $27.20 per share, representing all of AEA’s 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 Company’s board of directors pursuant to the Company stockholders’ agreement. Accumulated Other Comprehensive Income (Loss) The following table sets forth the changes to accumulated other comprehensive (loss) income, net of tax, by component for the years ended April 30, 2021, 2020 and 2019: Foreign Derivative Accumulated (in thousands) Balance as of April 30, 2018 $ — $ 441 $ 441 Other comprehensive loss before reclassification (22,320) (5,423) (27,743) Reclassification to earnings from accumulated other comprehensive income (loss) — 728 728 Balance as of April 30, 2019 (22,320) (4,254) (26,574) Other comprehensive loss before reclassification (18,257) (22,263) (40,520) Reclassification to earnings from accumulated other comprehensive income (loss) — 2,012 2,012 Balance as of April 30, 2020 (40,577) (24,505) (65,082) Other comprehensive income (loss) before reclassification 61,341 (311) 61,030 Reclassification to earnings from accumulated other comprehensive income (loss) — 8,811 8,811 Balance as of April 30, 2021 $ 20,764 $ (16,005) $ 4,759 Other comprehensive loss on derivative instruments for the years ended April 30, 2021, 2020 and 2019 is net of tax of $0.1 million, $6.4 million and $1.4 million, respectively. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Apr. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation General The Company has granted options and restricted stock units to employees and non-employee directors to purchase the Company’s common stock under various stock incentive plans. The plans administered by a committee of the Board of Directors, which determines the terms of the awards granted. The committee may grant various forms of equity-based incentive compensation, including stock options, stock appreciation rights, restricted stock, restricted stock units and performance awards, among others. 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 one Share-based compensation expense related to stock options and restricted stock units was $7.9 million, $6.5 million and $3.6 million during the years ended April 30, 2021, 2020 and 2019, respectively, and is included in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss). Stock Option Awards The following table presents stock option activity as of and for the year ended April 30, 2021: Number of Weighted Weighted Aggregate (shares and dollars in thousands) Outstanding as of April 30, 2020 1,487 $ 18.85 6.4 $ 3,895 Options granted 321 23.43 Options exercised (467) 15.68 Options forfeited (52) 25.79 Outstanding as of April 30, 2021 1,289 $ 20.86 6.8 $ 29,465 Exercisable as of April 30, 2021 676 $ 18.99 5.1 $ 16,720 Vested and expected to vest as of April 30, 2021 1,284 $ 20.85 6.8 $ 29,361 The aggregate intrinsic value represents the excess of the Company’s closing stock price on the last trading day of the period over 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 April 30, 2021, 2020 and 2019 was $9.9 million, $11.5 million and $1.6 million, respectively. As of April 30, 2021, there was $3.9 million of total unrecognized compensation cost related to stock options. That cost is expected to be recognized over a weighted-average period of 1.8 years. The fair value of stock options granted during the years ended April 30, 2021, 2020 and 2019 was estimated using the Black-Scholes option-pricing model with the following assumptions and resulting weighted average grant date fair value: Year Ended April 30, 2021 2020 2019 Volatility 51.28 % 49.86 % 33.71 % Expected life (years) 6.0 6.0 6.0 Risk-free interest rate 0.30 % 1.97 % 2.87 % Dividend yield — % — % — % Grant date fair value $ 11.13 $ 10.59 $ 9.72 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 Company’s closing stock price on the date of the grant. Restricted Stock Units The following table presents restricted stock unit activity for the year ended April 30, 2021: Number of Weighted (shares in thousands) Outstanding as of April 30, 2020 286 $ 22.71 Granted 214 23.48 Vested (110) 23.21 Forfeited (29) 23.87 Outstanding as of April 30, 2021 361 $ 22.92 As of April 30, 2021, there was $5.2 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 1.7 years. Employee Stock Purchase Plan During the year ended April 30, 2019, the Company established an employee stock purchase plan (“ESPP”), the terms of which allow for qualified employees (as defined) to participate in the purchase of shares of the Company’s 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. The ESPP authorizes the issuance of a total 2.0 million shares, of which 1.7 million shares were still available for issuance as of April 30, 2021. During the years ended April 30, 2021, 2020 and 2019, 0.1 million, 0.1 million shares and 0.1 million, respectively, of the Company’s common stock were purchased under the ESPP at an average price of $21.78 per share, $15.62 per shares and $18.51, respectively. The Company recognized $0.5 million, $0.5 million and $0.3 million of stock-based compensation expense in during the years ended April 30, 2021, 2020 and 2019, respectively, related to the ESPP. |
Stock Appreciation Rights, Defe
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests | 12 Months Ended |
Apr. 30, 2021 | |
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests | |
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests | 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: Stock Deferred Redeemable (in thousands) Balance as of April 30, 2019 $ 23,458 $ 1,695 $ 12,498 Amounts redeemed (825) (108) (4,644) Change in fair value 1,572 73 446 Balance as of April 30, 2020 24,205 1,660 8,300 Amounts redeemed (583) — — Change in fair value 3,173 215 1,073 Balance as of April 30, 2021 $ 26,795 $ 1,875 $ 9,373 Classified as current as of April 30, 2020 $ 624 $ — $ — Classified as long-term as of April 30, 2020 23,581 1,660 8,300 Classified as current as of April 30, 2021 $ 1,305 $ — $ — Classified as long-term as of April 30, 2021 25,490 1,875 9,373 Total expense related to these instruments was $4.5 million, $2.1 million and $3.9 million during the years ended April 30, 2021, 2020 and 2019, respectively, and was included in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss).Current and long-term liabilities for stock appreciation rights, deferred compensation and redeemable noncontrolling interests are included in other accrued expenses and liabilities and other liabilities, respectively, in the Condensed Consolidated Balance Sheets. The Company uses a lognormal binomial method to determine the fair value of stock appreciation rights, deferred compensation and redeemable noncontrolling interests at redemption date. Significant inputs used in this method include volatility rates, a discount rate, the expected time to redemption of the liabilities, historical values of the book equity of certain subsidiaries and market information for comparable entities. The use of these inputs to derive the fair value of the liabilities at a point in time can result in volatility to the financial statements. Stock Appreciation Rights Certain subsidiaries have granted stock appreciation rights to certain employees under which payments are dependent on the appreciation in the book value per share, adjusted for certain provisions, of the applicable subsidiary. Settlements of the awards can be made in a combination of cash or installment notes, generally paid over five years, upon a triggering event. As of April 30, 2021, all stock appreciation rights were vested. Liabilities related to these agreements are classified as share-based liability awards and are measured at fair value. Deferred Compensation Subsidiaries’ stockholders have entered into other deferred compensation agreements that granted the stockholders a payment based on a percentage in excess of book value, adjusted for certain provisions, upon an occurrence as defined in the related agreements. These instruments are redeemed in cash or installment notes, generally paid in annual installments over the five years following termination of employment. Liabilities related to these agreements are classified as share-based liability awards and are measured at fair value. Redeemable Noncontrolling Interests Noncontrolling interests were issued to certain employees of certain of the Company’s subsidiaries. All of the noncontrolling interest awards are subject to mandatory redemption on termination of employment for any reason. These instruments are redeemed in cash or installment notes, generally paid in annual installments over the five years following termination of employment. Under the terms of the employee agreements, the redemption value is determined based on the book value of the subsidiary, as adjusted for certain items. Liabilities related to these agreements are classified as share-based liability awards and are measured at fair value. Upon the termination of employment or other triggering events including death or disability of the noncontrolling stockholders in the Company’s subsidiaries, we are obligated to purchase, or redeem, the noncontrolling interests at either an agreed upon price or a formula value provided in the stockholder agreements. This formula value is typically based on the book value per share of the subsidiary’s equity, including certain adjustments. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the estimated carrying amount and fair value of the Company’s liabilities measured at fair value on a recurring basis: April 30, 2021 2020 (in thousands) Interest rate swaps (Level 2) $ 21,004 $ 32,218 The Company has 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 of 2.46%. The contracts were effective on February 28, 2019 and terminate on February 28, 2023. The objective of the interest rate swap agreements is to eliminate the variability of interest payment cash flows associated with variable interest rates. The Company believes there have been no material changes in the creditworthiness of the counterparty to this interest rate swap and believes the risk of nonperformance by such party is minimal. The Company designated the interest rate swaps as a cash flow hedges. As of April 30, 2021, $11.8 million of the interest rate swap liability was classified in other accrued expenses and current liabilities and $9.2 million was classified in other liabilities in the Condensed Consolidated Balance Sheet. The Company recognized losses, net of tax, of $8.8 million and $2.0 million in earnings during the years ended April 30, 2021 and 2020 respectively, related to its interest rate swaps. These losses are included in interest expense in the Consolidated Statements of Operations and Comprehensive Income and within cash flows from operating activities within the Consolidated Statements of Cash Flows. As of April 30, 2021, the Company expects that approximately $11.8 million of pre-tax net losses will be reclassified from accumulated other comprehensive income (loss) into earnings during the next twelve months. The fair value of interest rate swaps is determined using Level 2 inputs. Generally, the Company obtains the Level 2 inputs from its counterparties. Substantially all of the inputs throughout the full term of the instruments can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. The fair value of the Company’s interest rate swap was determined using widely accepted valuation techniques including a discounted cash flow analysis on the expected cash flows of the derivative. This analysis reflected the contractual terms of the derivatives, including the period to maturity, and used observable market based inputs, including interest rate curves and implied volatilities. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Disclosures are required for certain assets and liabilities that are measured at fair value on a nonrecurring basis in periods subsequent to initial recognition. Such measurements of fair value relate primarily to assets and liabilities measured at fair value in connection with business combinations and asset impairments. For more information on business combinations, see Note 2, “Business Acquisitions.” During the year ended April 30, 2021, the Company recorded a $1.0 million impairment of operating lease ROU assets. During the fourth quarter of 2020, the Company recognized a $63.1 million non-cash impairment charge to goodwill related to its Canada reporting unit. See Note 5, “Goodwill and Intangible Assets,” 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 ROU asset. There were no other material long-lived asset impairments during the years ended April 30, 2021, 2020 or 2019. Fair Value of Debt The estimated fair value of the Company’s Senior Notes was determined based on Level 2 input using observable market prices in less active markets. The carrying amount of the Company’s Term Loan Facility and ABL Facility approximates its fair value as the interest rates are variable and reflective of market rates. The following table presents the carrying value and fair value of the Company’s Senior Notes: April 30, 2021 Carrying Amount Fair Value (in thousands) Senior Notes $ 350,000 $ 350,000 |
Transactions With Related Parti
Transactions With Related Parties | 12 Months Ended |
Apr. 30, 2021 | |
Related Party Transactions [Abstract] | |
Transactions With Related Parties | Transactions With Related PartiesThe Company purchases inventories from Southern Wall Products, Inc. (“SWP”) on a continuing basis. During the years ended April 30, 2021, 2020 and 2019, certain former executive officers and stockholders and certain directors and stockholders of the Company were stockholders of SWP. As of April 30, 2021, these executive officers and directors were no longer with the Company. The Company purchased inventory from SWP for distribution in the amount of $7.3 million, $14.3 million and $13.3 million during the years ended April 30, 2021, 2020 and 2019, respectively. Amounts due to SWP for purchases of inventory for distribution as of April 30, 2020 were $1.2 million and were included in accounts payable in the Consolidated Balance Sheet. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies General 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, “Business, Basis of Presentation and Summary of Significant Accounting Policies” under the heading “Insurance Liabilities,” the Company records liabilities for these claims, as well as assets for amounts recoverable from the insurer, for claims covered by insurance. Favorable Class Action Settlement |
Segments
Segments | 12 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
Segments | Segments General The Company has eight operating segments based on geographic operations that it aggregates into one reportable segment. The Company defines operating segments as components of the organization for which discrete financial information is available and operating results are evaluated on a regular basis by the Chief Operating Decision Maker (“CODM”) in order to assess performance and allocate resources. The Company’s CODM is its Chief Executive Officer. The Company determined it has eight operating segments based on the Company’s eight geographic divisions, which are Central, Midwest, Northeast, Southern, Southeast, Southwest, Western and Canada. During the year ended April 30, 2021, the Company divided its Southern operating segment into two operating segments, Southern and Southwest, which resulted in an increase (from seven to eight) in the number of operating segments. The Company performed a goodwill impairment test immediately before and after the change in operating segments, which indicated the fair values of the Company’s reporting units exceeded their carrying values. The Company aggregates its operating segments into a single reportable segment based on similarities between the operating segments’ economic characteristics, nature of products sold, production process, type of customer and methods of distribution. The accounting policies of the operating segments are the same as those described in the summary of significant policies. In addition to the Company’s reportable segment, the Company’s consolidated results include both corporate activities and certain other activities. Corporate includes the Company’s corporate office building and support services provided to its subsidiaries. Other includes Tool Source Warehouse, Inc., which functions primarily as an internal distributor of tools. Segment Results The CODM assesses the Company’s performance based on the periodic review of net sales, Adjusted EBITDA and certain other measures for each of the operating segments. Adjusted EBITDA is not a recognized financial measure under GAAP. However, we believe it assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes Adjusted EBITDA is helpful in highlighting trends in our operating results, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations -- Non-GAAP Financial Measures” for a further discussion of this non-GAAP measure. The following tables present segment results: Year Ended April 30, 2021 April 30, 2021 Net Sales Gross Profit Depreciation and Adjusted Total (in thousands) Geographic divisions $ 3,263,893 $ 1,051,741 $ 106,152 $ 316,774 $ 2,459,344 Other 34,930 10,962 364 2,597 20,339 Corporate — — 1,609 — 4,215 $ 3,298,823 $ 1,062,703 $ 108,125 $ 319,371 $ 2,483,898 Year Ended April 30, 2020 April 30, 2020 Net Sales Gross Profit Depreciation and Adjusted Total (in thousands) Geographic divisions $ 3,213,938 $ 1,053,555 $ 114,279 $ 297,646 $ 2,299,880 Other 27,369 9,659 233 2,113 18,745 Corporate — — 2,021 — 5,829 $ 3,241,307 $ 1,063,214 $ 116,533 $ 299,759 $ 2,324,454 Year Ended April 30, 2019 April 30, 2019 Net Sales Gross Profit Depreciation and Adjusted Total (in thousands) Geographic divisions $ 3,090,314 $ 994,981 $ 114,558 $ 293,190 $ 2,169,981 Other 25,718 9,138 220 2,479 16,897 Corporate — — 2,681 — 7,139 $ 3,116,032 $ 1,004,119 $ 117,459 $ 295,669 $ 2,194,017 The following table presents a reconciliation of Adjusted EBITDA to net income: Year Ended April 30, 2021 2020 2019 (in thousands) Net income $ 105,560 $ 23,381 $ 56,002 Interest expense 53,786 67,718 73,677 Write-off of debt discount and deferred financing fees 4,606 1,331 — Interest income (86) (88) (66) Provision for income taxes 31,534 22,944 14,039 Depreciation expense 50,480 51,332 46,456 Amortization expense 57,645 65,201 71,003 Impairment of goodwill — 63,074 — Stock appreciation expense(a) 3,173 1,572 2,730 Redeemable noncontrolling interests(b) 1,288 520 1,188 Equity-based compensation(c) 8,442 7,060 3,906 Severance and other permitted costs(d) 2,948 5,733 8,152 Transaction costs (acquisitions and other)(e) 1,068 2,414 7,858 (Gain) loss on disposal and impairment of assets(f) (1,011) 658 (525) Effects of fair value adjustments to inventory(g) 788 575 4,176 Change in fair value of financial instruments(h) — — 6,395 Gain on legal settlement (1,382) (14,029) — Secondary public offering costs(i) — 363 — Debt transaction costs(j) 532 — 678 Adjusted EBITDA $ 319,371 $ 299,759 $ 295,669 __________________________________________ (a) Represents changes in the fair value of stock appreciation rights. (b) Represents 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 the calculation of Adjusted EBITDA under the ABL Facility and the Term Loan Facility, including certain unusual, nonrecurring costs and credits due to COVID-19. (e) Represents costs related to acquisitions paid to third parties. (f) Includes gains from the sale of assets and impairment of assets resulting from restructuring plans to close certain 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. Revenues by Product The following table presents Company’s net sales to external customers by main product line: Year Ended April 30, 2021 2020 2019 (in thousands) Wallboard $ 1,346,560 $ 1,329,775 $ 1,272,068 Ceilings 450,524 475,827 451,695 Steel framing 469,002 502,122 506,805 Complementary products 1,032,737 933,583 885,464 Total net sales $ 3,298,823 $ 3,241,307 $ 3,116,032 Geographic Information The following table presents the Company’s net sales by major geographic area: Year Ended April 30, 2021 2020 2019 (in thousands) United States $ 2,770,450 $ 2,805,920 $ 2,701,678 Canada 528,373 435,387 414,354 Total net sales $ 3,298,823 $ 3,241,307 $ 3,116,032 The following table presents the Company’s property and equipment by major geographic area: April 30, April 30, (in thousands) United States $ 271,346 $ 270,855 Canada 39,980 34,612 Total property and equipment, net $ 311,326 $ 305,467 |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per share of common stock: Year Ended April 30, 2021 2020 2019 (in thousands, except per share data) Net income $ 105,560 $ 23,381 $ 56,002 Less: Net income allocated to participating securities — 74 1,382 Net income attributable to common stockholders $ 105,560 $ 23,307 $ 54,620 Basic earnings per common share: Basic weighted average common shares outstanding 42,765 41,853 40,914 Basic earnings per common share $ 2.47 $ 0.56 $ 1.33 Diluted earnings per common share: Basic weighted average common shares outstanding 42,765 41,853 40,914 Add: Common Stock Equivalents 578 651 675 Diluted weighted average common shares outstanding 43,343 42,504 41,589 Diluted earnings per common share $ 2.44 $ 0.55 $ 1.31 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Apr. 30, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts Allowances for Accounts Receivable Balance Provision Charged to Deductions Balance (in thousands) Fiscal Year Ended April 30, 2021 $ (5,141) $ (1,774) $ (477) $ 1,110 $ (6,282) Fiscal Year Ended April 30, 2020 (6,432) (2,348) 938 2,701 (5,141) Fiscal Year Ended April 30, 2019 (9,633) (1,064) 2,435 1,830 (6,432) __________________________________________ (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. Valuation Allowance on Deferred Tax Assets Rollforward Balance Additions Deductions Balance (in thousands) Fiscal Year Ended April 30, 2021 $ (10,183) $ (1,585) $ — $ (11,768) Fiscal Year Ended April 30, 2020 (1,112) (9,071) — (10,183) Fiscal Year Ended April 30, 2019 (448) (664) — (1,112) |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Apr. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following table sets forth certain unaudited financial information for each quarter of the years ended April 30, 2021 and 2020. 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. Year Ended April 30, 2021 First Second Third Fourth (in thousands, except per share data) Net sales $ 802,573 $ 812,856 $ 751,191 $ 932,203 Gross profit 260,458 265,071 243,324 293,850 Net income 27,219 28,469 16,126 33,746 Per share data Weighted average shares outstanding(1): Basic 42,624 42,723 42,726 42,994 Diluted 43,017 43,174 43,361 43,828 Net income per share(1): Basic $ 0.64 $ 0.67 $ 0.38 $ 0.78 Diluted $ 0.63 $ 0.66 $ 0.37 $ 0.77 Year Ended April 30, 2020 First Second Third Fourth (in thousands, except per share data) Net sales $ 847,176 $ 861,929 $ 761,352 $ 770,850 Gross profit 273,654 284,493 253,473 251,594 Net income (loss)(1) 24,820 29,138 10,879 (41,456) Per share data Weighted average shares outstanding(2): Basic 41,001 41,761 42,223 42,435 Diluted 41,615 42,635 42,949 42,435 Net income (loss) per share(2): Basic $ 0.60 $ 0.70 $ 0.26 $ (0.98) Diluted $ 0.59 $ 0.68 $ 0.25 $ (0.98) __________________________________________ (1) Net loss 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. (2) Basic and diluted net income (loss) per share are computed independently for each of the quarters presented. Therefore, the sum of the quarterly basic and diluted net income (loss) per share amounts may not equal annual basic and diluted net income per share amounts. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Apr. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn May 11, 2021, the Company entered into a definitive agreement to acquire substantially all the assets of Westside Building Material ("Westside"), one of the largest independent distributors of interior building products in the U.S., for $135.0 million in cash. Westside is a leading supplier of steel framing, wallboard, acoustical ceilings, insulation and related building products serving commercial and residential markets. Westside’s distribution network comprises ten locations, including nine across California (Anaheim, Hesperia, Oakland, Chatsworth, Fresno, Lancaster, Santa Maria, San Diego and National City) and one in Las Vegas, NV. The transaction is expected to close in the third calendar quarter of 2021, subject to the satisfaction of customary closing conditions. |
Business, Basis of Presentati_2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements present the results of operations, financial position, stockholders’ equity and cash flows of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. The results of operations of businesses acquired are included from their respective dates of acquisition. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities 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 Company’s Canadian subsidiaries are translated at the exchange rate prevailing at the balance sheet date, while income and expenses are translated at average rates for the period. Translation gains and losses are reported as a separate component of stockholders’ 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 | ReclassificationsCertain 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 The Company records accounts and notes receivable net of allowances, including an allowance for expected credit losses. The Company maintains an allowance for estimated losses due to the failure of customers to make required payments, as well as allowances for cash discounts. The Company’s estimate of the allowance for expected credit losses is based on an assessment of individual past due accounts, historical loss information, accounts receivable aging and current economic factors and the Company’s expectation of future economic conditions. Account balances are written off when the potential for recovery is considered remote. Other receivables primarily include vendor rebate receivables.Other allowances includes reserves for cash discounts and reserves for service charges. |
Inventories | Inventories 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. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Property and equipment obtained through business combinations is stated at estimated fair value as of the acquisition date. Expenditures for improvements 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: Buildings 25-39 years Furniture, fixtures and automobiles 3 - 5 years Computer hardware and software 3 - 5 years Warehouse and delivery equipment 4 - 10 years Leasehold improvements Shorter of estimated useful life or lease term Depreciation expense for property and equipment of Canadian subsidiaries is recognized over the estimated useful lives of the various asset classes as follows: 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 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). 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 Company’s reporting units with the reporting units’ 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 unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. |
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. The Company typically uses an income method to estimate the acquisition date fair value of intangible assets obtained through a business combination, which is based on forecasts of the expected future cash flows attributable to the respective assets. 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 management’s own analysis and an independent third-party valuation specialist’s appraisal. Intangible assets determined to have definite lives are amortized over their estimated useful lives. |
Long-Lived Assets | Long-Lived Assets The Company evaluates the recoverability of long-lived assets, including property and equipment, operating lease right-of-use ("ROU") 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 the carrying amount is not recoverable through the undiscounted cash flows and measures an 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 and are recorded within prepaid expenses and other current assets in the Consolidated Balance Sheets. The Company classifies assets as held for sale if it commits to a plan to sell the asset within one year and actively markets the asset in its current condition for a price that is reasonable in comparison to its estimated fair value. |
Leases | Leases The Company leases office and warehouse facilities, distribution equipment and its fleet of vehicles. The Company’s leases have lease terms ranging from one one 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 Sheets. Finance leases are included in property and equipment, current portion of long-term debt and long-term debt in the Consolidated Balance Sheets. 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 Company’s 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 expensed as incurred. The Company also made the accounting policy election to not separate lease components from non-lease components related to its fleet of vehicles. |
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, workers’ compensation and automobile. The coverage consists of a deductible layer, a primary layer, a self-insured buffer layer, a lead umbrella layer and excess layers. The deductible amount per incident is $0.3 million, $0.5 million and $1.0 million for general liability, workers’ compensation and automobile, respectively. The primary layer of coverage is from $0.3 million, $0.5 million and $1.0 million for general liability, workers’ 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 historical loss development factors and actuarial assumptions followed in the insurance industry. |
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 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. 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 in connection with the reduction in workforce and certain other restructuring activities, consisting primarily of severance and other employee costs. All costs related to the reduction in workforce were recognized and paid during the year ended April 30, 2019. 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 facilities and uses the effective interest method to amortize debt issuance costs for its other debt 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 other debt 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 HoldersCertain subsidiaries have equity-based compensation agreements with the subsidiary’s 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. |
Derivative Instruments | Derivative InstrumentsThe Company has entered into derivative instruments to manage its exposure to certain financial risks. The Company’s 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. |
Revenue Recognition | Revenue Recognition General. 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. See Note 17, “Segments,” for information regarding disaggregation of revenue, including revenue by product and by geographic area. Performance Obligations. The Company satisfies its performance obligations at a point in time, which is upon delivery of products. The Company’s payment terms vary by the type and location of its customers. The amount of time between point of sale and when payment is due is not significant and the Company has determined its contracts do not include a significant financing component. The Company’s contracts with customers involve performance obligations that are one year or less. Therefore, the Company applied the standard’s optional exemption that permits the omission of information about its unfulfilled performance obligations as of the balance sheet dates. Significant Judgments. The Company’s contracts may include terms that could cause variability in the transaction price, including customer rebates, returns and cash discounts for early payment. Variable consideration is estimated and included in 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. |
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 reduces inventory to reflect the deferral of cost of sales. |
Selling, General, and Administrative Expenses | Selling, General and Administrative ExpensesSelling, general and administrative expenses include expenses related to the delivery and warehousing of the Company's products, as well as employee compensation and benefits expenses for employees in the Company's branches and yard support center, as well as other administrative expenses, such as legal, accounting and information technology costs. |
Advertising Expense | Advertising ExpenseThe 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). |
Equity Based Compensation | Equity-Based Compensation As of April 30, 2021, the Company had various stock-based compensation plans, which are more fully described in Note 12, “Equity-Based Compensation.” The Company measures compensation cost for all share-based awards at fair value on the grant date (or measurement date if different) and recognizes compensation expense, net of estimated forfeitures, over the requisite service period for awards expected to vest. The Company estimates the fair value of stock options using the Black-Scholes valuation model and determines the fair value of restricted stock units based on the quoted price of GMS’s common stock on the date of grant. The Company estimates forfeitures based on historical analysis of actual forfeitures and employee turnover. Actual forfeitures are recorded when incurred and estimated forfeitures are reviewed at least annually. |
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 supports the realizability of 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 . Beginning in March 2020 and during the year ended April 30, 2021, the COVID-19 pandemic caused significant volatility, uncertainty and economic disruption and impacted the Company’s operations and the operations of the Company’s customers and vendors as a result of ongoing or new quarantines, branch closures, travel and logistics restrictions, project delays or shutdowns, decreased demand and general market disruptions. The future impact of COVID-19 on the Company's financial results depends on numerous factors. The Company continues to evaluate the nature and extent of the COVID-19 pandemic’s impact on its financial condition, results of operations and cash flows. Credit Risk. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and trade accounts and notes receivable. The Company assesses the credit standing of counterparties as considered necessary. The Company routinely assesses the financial strength of its customers and generally does not require collateral. Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of geographically diverse customers comprising the Company’s customer base. Additionally, the Company maintains allowances for potential credit losses. The Company does not enter into financial instruments for trading or speculative purposes. As of April 30, 2021 and 2020, no customer accounted for more than 10% of gross accounts receivable. Supply Risk. The Company purchases most of its inventories from a select group of vendors. Without these vendors, the Company’s ability to acquire inventory would be significantly impaired. |
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. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of outstanding shares of common stock for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, including stock options and restricted stock units (collectively “Common Stock Equivalents”), were exercised or converted into common stock. The dilutive effect of outstanding stock options and restricted stock units is reflected in diluted earnings per share by application of the treasury stock method. In applying the treasury stock method for stock-based compensation arrangements, the assumed proceeds are computed as the sum of the amount the employee must pay upon exercise and the amount of compensation cost attributed to future services and not yet recognized. Diluted earnings per share is computed by increasing the weighted-average number of outstanding shares of common stock computed in basic earnings per share to include the dilutive effect of Common Stock Equivalents for the period. In periods of net loss, the number of shares used to calculate diluted loss per share is the same as basic net loss per share. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Credit Losses – In June 2016, the Financial Accounting Standards Board (“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 and other receivables, emphasizing an updated model based on expected losses rather than incurred losses. The Company adopted this guidance on May 1, 2020 with no material impact to its financial statements. See the heading “Trade Accounts Receivable” in this Note 1, "Business, Basis of Presentation and Summary of Significant Accounting Policies," and Note 3, “Accounts Receivable,” for additional information with respect to the Company’s allowance for expected credit losses. Fair Value Measurement Disclosures – In August 2018, the FASB issued new guidance that changes certain fair value measurement disclosure requirements. The Company adopted this guidance on May 1, 2020 with no material impact to its financial statements. Recently Issued Accounting Pronouncements Reference Rate Reform – 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, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of estimated useful lives of property and equipment | The estimated useful lives of property and equipment are as follows: Buildings 25-39 years Furniture, fixtures and automobiles 3 - 5 years Computer hardware and software 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 | Depreciation expense for property and equipment of Canadian subsidiaries is recognized over the estimated useful lives of the various asset classes as follows: 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 Straight-line over shorter of estimated useful life or lease term |
Schedule of medical self-insurance liabilities and recoveries | The following table presents the Company’s aggregate liabilities for medical self insurance, reserves for general liability, automobile and workers’ compensation and the expected recoveries for medical self insurance, general liability, automobile and workers’ compensation. Liabilities for medical self insurance are included in other accrued expenses and current liabilities. Reserves for general liability, automobile and workers’ compensation are included in other accrued expenses and current liabilities and other liabilities in the Consolidated Balance Sheets. Expected recoveries for insurance liabilities are included in prepaid expenses and other current assets and other assets in the Consolidated Balance Sheets. April 30, 2021 2020 (in thousands) Medical self-insurance $ 3,852 $ 3,770 General liability, automobile and workers’ compensation 19,807 19,410 Expected recoveries for insurance liabilities (3,209) (6,037) |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
D.L. Building Materials Inc. | |
Business Acquisition [Line Items] | |
Schedule of preliminary allocation of the consideration transferred | The following table summarizes the preliminary acquisition accounting for this acquisition based on currently available information: Preliminary (in thousands) Cash $ 4,179 Trade accounts and notes receivable 8,325 Inventories 5,075 Prepaid and other current assets 675 Property and equipment 2,721 Operating lease right-of-use assets 1,103 Customer relationships 20,926 Tradenames 2,498 Goodwill 9,084 Liabilities assumed (12,282) Deferred income taxes (2,830) Fair value of consideration transferred $ 39,474 |
2020 Acquisitions | |
Business Acquisition [Line Items] | |
Schedule of acquisitions completed | The purpose of these acquisitions was to expand the geographical coverage of the Company and grow the business. Company Name Form of Acquisition Date of Acquisition J.P. Hart Lumber Company Purchase of net assets June 3, 2019 Rigney Building Supplies Ltd. Purchase of 100% of outstanding common stock November 1, 2019 Trowel Trades Supply, Inc. Purchase of net assets February 1, 2020 |
Titan | |
Business Acquisition [Line Items] | |
Schedule of preliminary allocation of the consideration transferred | The following table summarizes the acquisition accounting: Preliminary Adjustments/ Final (in thousands) Cash $ 5,573 $ — $ 5,573 Trade accounts and notes receivable 84,039 970 85,009 Inventories 60,272 — 60,272 Prepaid and other current assets 8,334 — 8,334 Property and equipment 37,263 — 37,263 Goodwill 196,524 (2,726) 193,798 Intangible assets 289,423 (2,469) 286,954 Accounts payable and accrued expenses (40,833) (970) (41,803) Contingent consideration (12,039) — (12,039) Deferred income taxes (14,337) 2,085 (12,252) Fair value of consideration transferred $ 614,219 $ (3,110) $ 611,109 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Receivables [Abstract] | |
Schedule of trade accounts and notes receivable | The Company’s trade accounts and notes receivable consisted of the following: April 30, 2021 2020 (in thousands) Trade receivables $ 488,002 $ 398,739 Other receivables 76,941 47,328 Allowance for expected credit losses (3,254) (2,861) Other allowances (3,028) (2,280) Trade accounts and notes receivable $ 558,661 $ 440,926 |
Schedule of change in allowance for expected credit losses | The following table presents the change in the allowance for expected credit losses during the year ended April 30, 2021: (in thousands) Balance as of May 1, 2020 $ 2,861 Provision 1,774 Write-offs (1,381) Balance as of April 30, 2021 $ 3,254 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of components of property and equipment | The Company’s property and equipment consisted of the following: April 30, 2021 2020 (in thousands) Land $ 56,841 $ 52,581 Buildings and leasehold improvements 120,616 110,322 Machinery and equipment 324,375 300,133 Construction in progress 2,858 985 Total property and equipment 504,690 464,021 Less: accumulated depreciation and amortization 193,364 158,554 Total property and equipment, net of accumulated depreciation $ 311,326 $ 305,467 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The following table presents changes in the carrying amount of goodwill: Gross Accumulated Net Carrying Amount Impairment Loss Carrying Amount (in thousands) Balance as of April 30, 2020 $ 616,147 $ (63,074) $ 553,073 Goodwill recognized from acquisition 9,084 — 9,084 Purchase price adjustments (159) — (159) Translation adjustment 20,305 (5,973) 14,332 Balance as of April 30, 2021 $ 645,377 $ (69,047) $ 576,330 |
Schedule of components of definite-lived intangible assets | The following tables present the components of the Company’s definite-lived intangible assets: Estimated Weighted April 30, 2021 Gross Accumulated Net (dollars in thousands) Customer relationships 5 - 16 13.3 $ 569,255 $ (330,880) $ 238,375 Definite-lived tradenames 5 - 20 16.8 62,084 (14,842) 47,242 Vendor agreements 8 - 10 8.3 6,644 (5,372) 1,272 Developed technology 5 4.9 5,699 (3,381) 2,318 Other 3 - 5 3.3 4,291 (3,996) 295 Totals $ 647,973 $ (358,471) $ 289,502 Estimated Weighted April 30, 2020 Gross Accumulated Net (dollars in thousands) Customer relationships 5 - 16 12.8 $ 516,928 $ (270,029) $ 246,899 Definite-lived tradenames 5 - 20 16.3 55,654 (10,474) 45,180 Vendor agreements 8 - 10 8.3 6,644 (4,567) 2,077 Developed technology 5 4.9 5,036 (1,963) 3,073 Other 1 - 15 5.3 7,836 (4,548) 3,288 Totals $ 592,098 $ (291,581) $ 300,517 |
Schedule of estimated future aggregate amortization expense | The following table summarizes the estimated future amortization expense for definite-lived intangible assets. 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. Year Ending April 30, (in thousands) 2022 $ 53,094 2023 44,251 2024 36,024 2025 29,738 2026 24,807 Thereafter 101,588 Total $ 289,502 |
Other Accrued Expenses and Cu_2
Other Accrued Expenses and Current Liabilities (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of components of other accrued expenses and current liabilities | The Company’s other accrued expenses and current liabilities consisted of the following: April 30, 2021 2020 (in thousands) Insurance related liabilities $ 14,301 $ 12,922 Customer rebates payable 12,723 10,211 Sales taxes payable 11,529 9,493 Derivative liability 11,817 11,514 Reserve for sales returns 6,028 4,081 Income taxes payable 5,928 2,844 Other 24,812 24,261 Total other accrued expenses and current liabilities $ 87,138 $ 75,326 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The Company’s long-term debt consisted of the following: April 30, 2021 2020 (in thousands) Term Loan Facility $ 509,722 $ 876,903 Unamortized discount and deferred financing costs on Term Loan Facility (4,735) (10,602) ABL Facility — 80,000 Senior Notes 350,000 — Unamortized discount and deferred financing costs on Senior Notes (5,485) — Finance lease obligations 117,948 128,767 Installment notes at fixed rates up to 5.0%, due in monthly and annual installments through 2025 11,716 16,316 Unamortized discount on installment notes (739) (1,098) Canadian Facility — 7,194 Carrying value of debt 978,427 1,097,480 Less current portion 46,018 50,201 Long-term debt $ 932,409 $ 1,047,279 |
Scheduled of maturities of long-term debt | As of April 30, 2021, the maturities of existing long-term debt and finance leases were as follows: Term Loan Facility Senior Notes Finance Leases Installment Notes Total Year Ending April 30, (in thousands) 2022 $ 5,110 $ — $ 36,665 $ 4,520 $ 46,295 2023 5,110 — 31,525 4,505 41,140 2024 5,110 — 24,602 1,881 31,593 2025 5,110 — 14,675 810 20,595 2026 489,282 — 7,454 — 496,736 Thereafter — 350,000 3,027 — 353,027 $ 509,722 $ 350,000 $ 117,948 $ 11,716 $ 989,386 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Lessee Disclosure [Abstract] | |
Summary of components of lease expense | The components of lease expense were as follows: Year Ended April 30, 2021 2020 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 23,769 $ 24,352 Interest on lease liabilities 11,164 13,316 Operating lease cost 42,383 42,846 Variable lease cost 12,914 12,555 Total lease cost $ 90,230 $ 93,069 |
Summary of components of supplemental cash flow information related to leases | Supplemental cash flow information related to leases was as follows: Year Ended April 30, 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 42,876 $ 42,150 Operating cash flows from finance leases 11,164 13,316 Financing cash flows from finance leases 30,371 25,275 Right-of-use assets obtained in exchange for lease obligations Operating leases 37,513 38,143 Finance leases 27,400 50,484 |
Summary of other lease information | Other information related to leases was as follows: April 30, 2021 2020 (in thousands) Finance leases included in property and equipment Property and equipment $ 176,591 $ 171,380 Accumulated depreciation (51,869) (41,737) Property and equipment, net $ 124,722 $ 129,643 Weighted-average remaining lease term (years) Operating leases 4.7 4.9 Finance leases 3.5 3.6 Weighted-average discount rate Operating leases 5.5 % 5.5 % Finance leases 4.6 % 5.0 % |
Schedule of maturities for finance leases | Future minimum lease payments under non-cancellable leases as of April 30, 2021 were as follows: Finance Operating Year Ending April 30, (in thousands) 2022 $ 44,209 $ 39,474 2023 35,538 32,704 2024 26,259 26,764 2025 15,266 18,455 2026 7,627 8,707 Thereafter 3,051 15,197 Total lease payments 131,950 141,301 Less imputed interest 14,002 17,537 Total $ 117,948 $ 123,764 |
Schedule of maturities for operating leases | Future minimum lease payments under non-cancellable leases as of April 30, 2021 were as follows: Finance Operating Year Ending April 30, (in thousands) 2022 $ 44,209 $ 39,474 2023 35,538 32,704 2024 26,259 26,764 2025 15,266 18,455 2026 7,627 8,707 Thereafter 3,051 15,197 Total lease payments 131,950 141,301 Less imputed interest 14,002 17,537 Total $ 117,948 $ 123,764 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income before taxes | The following table presents the components of income before taxes for the years ended April 30, 2021, 2020 and 2019: Year Ended April 30, 2021 2020 2019 (in thousands) United States $ 106,059 $ 106,850 $ 62,878 Foreign 31,035 (60,525) 7,163 Income before taxes $ 137,094 $ 46,325 $ 70,041 |
Schedule of components of income tax expense | The following table presents the components of income tax expense for the years ended April 30, 2021, 2020 and 2019: Year Ended April 30, 2021 2020 2019 (in thousands) Current Federal $ 27,171 $ 12,537 $ 11,858 Foreign 9,098 1,624 13,739 State 5,594 7,857 5,929 Total Current 41,863 22,018 31,526 Deferred Federal (4,653) 8,986 453 Foreign (5,870) (7,347) (16,931) State 194 (713) (1,009) Total Deferred (10,329) 926 (17,487) Total provision for income taxes $ 31,534 $ 22,944 $ 14,039 |
Summary of significant differences between federal statutory tax rate and effective tax rate | The following table summarizes the significant differences between the U.S. federal statutory tax rate and the Company’s effective tax rate for financial statement for the years ended April 30, 2021, 2020 and 2019: Year Ended April 30, 2021 2020 2019 (in thousands) Federal income taxes at statutory rate $ 28,793 $ 9,747 $ 14,715 State income taxes, net of federal income tax benefit 4,000 4,054 2,440 Impact of foreign rate differences 1,162 (2,861) 418 Impact of rate difference on impairment of goodwill — 7,630 — Net change in valuation allowance 578 9,070 664 Nondeductible meals & entertainment 252 592 635 Equity-based compensation (1,012) (1,196) (53) GILTI 1,911 704 241 Nondeductible transaction costs — 90 529 Intercompany interest expense (4,532) (5,361) (5,255) Other 382 475 (295) Total provision for income taxes $ 31,534 $ 22,944 $ 14,039 |
Schedule of tax effects of temporary differences which give rise to deferred income taxes | The tax effects of temporary differences, which give rise to deferred income taxes as of April 30, 2021 and 2020 are as follows: April 30, 2021 2020 Deferred income tax assets: (in thousands) Allowances on accounts and notes receivable $ 2,617 $ 2,016 Accrued payroll and related costs 5,093 1,859 Insurance reserves 4,086 2,501 Inventory costs 3,252 2,630 Deferred compensation 7,892 7,426 Equity compensation 2,612 2,695 Derivative instrument 5,083 7,850 Acquisition related costs 1,202 1,311 Net operating loss carry-forwards 1,591 1,595 Disallowed interest expense 974 736 Investment in partnerships 24,316 16,535 Deferred rent 829 1,112 Noncompete agreements 95 120 Other deferred tax assets, net 1,147 1,424 Total deferred income tax assets 60,789 49,810 Less: Valuation allowance (11,768) (10,183) Total deferred income tax assets, net of valuation allowance 49,021 39,627 Deferred income tax liabilities: Amortization of intangible assets (19,583) (18,917) Rebates (151) (400) Depreciation (25,668) (21,508) Deferred financing costs (463) (1,582) Other deferred tax liabilities, net (169) (334) Total deferred income tax liabilities (46,034) (42,741) Deferred income tax liabilities, net $ 2,987 $ (3,114) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Schedule of changes to accumulated other comprehensive loss, net of tax, by component | The following table sets forth the changes to accumulated other comprehensive (loss) income, net of tax, by component for the years ended April 30, 2021, 2020 and 2019: Foreign Derivative Accumulated (in thousands) Balance as of April 30, 2018 $ — $ 441 $ 441 Other comprehensive loss before reclassification (22,320) (5,423) (27,743) Reclassification to earnings from accumulated other comprehensive income (loss) — 728 728 Balance as of April 30, 2019 (22,320) (4,254) (26,574) Other comprehensive loss before reclassification (18,257) (22,263) (40,520) Reclassification to earnings from accumulated other comprehensive income (loss) — 2,012 2,012 Balance as of April 30, 2020 (40,577) (24,505) (65,082) Other comprehensive income (loss) before reclassification 61,341 (311) 61,030 Reclassification to earnings from accumulated other comprehensive income (loss) — 8,811 8,811 Balance as of April 30, 2021 $ 20,764 $ (16,005) $ 4,759 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of stock option activity | The following table presents stock option activity as of and for the year ended April 30, 2021: Number of Weighted Weighted Aggregate (shares and dollars in thousands) Outstanding as of April 30, 2020 1,487 $ 18.85 6.4 $ 3,895 Options granted 321 23.43 Options exercised (467) 15.68 Options forfeited (52) 25.79 Outstanding as of April 30, 2021 1,289 $ 20.86 6.8 $ 29,465 Exercisable as of April 30, 2021 676 $ 18.99 5.1 $ 16,720 Vested and expected to vest as of April 30, 2021 1,284 $ 20.85 6.8 $ 29,361 |
Schedule of weighted average assumptions used in Black-Scholes option-pricing model | The fair value of stock options granted during the years ended April 30, 2021, 2020 and 2019 was estimated using the Black-Scholes option-pricing model with the following assumptions and resulting weighted average grant date fair value: Year Ended April 30, 2021 2020 2019 Volatility 51.28 % 49.86 % 33.71 % Expected life (years) 6.0 6.0 6.0 Risk-free interest rate 0.30 % 1.97 % 2.87 % Dividend yield — % — % — % Grant date fair value $ 11.13 $ 10.59 $ 9.72 |
Summary of restricted stock unity activity | The following table presents restricted stock unit activity for the year ended April 30, 2021: Number of Weighted (shares in thousands) Outstanding as of April 30, 2020 286 $ 22.71 Granted 214 23.48 Vested (110) 23.21 Forfeited (29) 23.87 Outstanding as of April 30, 2021 361 $ 22.92 |
Stock Appreciation Rights, De_2
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
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 | The following table presents a summary of changes to the liabilities for stock appreciation rights, deferred compensation and redeemable noncontrolling interests: Stock Deferred Redeemable (in thousands) Balance as of April 30, 2019 $ 23,458 $ 1,695 $ 12,498 Amounts redeemed (825) (108) (4,644) Change in fair value 1,572 73 446 Balance as of April 30, 2020 24,205 1,660 8,300 Amounts redeemed (583) — — Change in fair value 3,173 215 1,073 Balance as of April 30, 2021 $ 26,795 $ 1,875 $ 9,373 Classified as current as of April 30, 2020 $ 624 $ — $ — Classified as long-term as of April 30, 2020 23,581 1,660 8,300 Classified as current as of April 30, 2021 $ 1,305 $ — $ — Classified as long-term as of April 30, 2021 25,490 1,875 9,373 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of liabilities measured at fair value on a recurring basis | The following table presents the estimated carrying amount and fair value of the Company’s liabilities measured at fair value on a recurring basis: April 30, 2021 2020 (in thousands) Interest rate swaps (Level 2) $ 21,004 $ 32,218 |
Schedule of carrying value and fair value of the Senior Notes | The following table presents the carrying value and fair value of the Company’s Senior Notes: April 30, 2021 Carrying Amount Fair Value (in thousands) Senior Notes $ 350,000 $ 350,000 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment results | The following tables present segment results: Year Ended April 30, 2021 April 30, 2021 Net Sales Gross Profit Depreciation and Adjusted Total (in thousands) Geographic divisions $ 3,263,893 $ 1,051,741 $ 106,152 $ 316,774 $ 2,459,344 Other 34,930 10,962 364 2,597 20,339 Corporate — — 1,609 — 4,215 $ 3,298,823 $ 1,062,703 $ 108,125 $ 319,371 $ 2,483,898 Year Ended April 30, 2020 April 30, 2020 Net Sales Gross Profit Depreciation and Adjusted Total (in thousands) Geographic divisions $ 3,213,938 $ 1,053,555 $ 114,279 $ 297,646 $ 2,299,880 Other 27,369 9,659 233 2,113 18,745 Corporate — — 2,021 — 5,829 $ 3,241,307 $ 1,063,214 $ 116,533 $ 299,759 $ 2,324,454 Year Ended April 30, 2019 April 30, 2019 Net Sales Gross Profit Depreciation and Adjusted Total (in thousands) Geographic divisions $ 3,090,314 $ 994,981 $ 114,558 $ 293,190 $ 2,169,981 Other 25,718 9,138 220 2,479 16,897 Corporate — — 2,681 — 7,139 $ 3,116,032 $ 1,004,119 $ 117,459 $ 295,669 $ 2,194,017 |
Reconciliation of Adjusted EBITDA to net income | The following table presents a reconciliation of Adjusted EBITDA to net income: Year Ended April 30, 2021 2020 2019 (in thousands) Net income $ 105,560 $ 23,381 $ 56,002 Interest expense 53,786 67,718 73,677 Write-off of debt discount and deferred financing fees 4,606 1,331 — Interest income (86) (88) (66) Provision for income taxes 31,534 22,944 14,039 Depreciation expense 50,480 51,332 46,456 Amortization expense 57,645 65,201 71,003 Impairment of goodwill — 63,074 — Stock appreciation expense(a) 3,173 1,572 2,730 Redeemable noncontrolling interests(b) 1,288 520 1,188 Equity-based compensation(c) 8,442 7,060 3,906 Severance and other permitted costs(d) 2,948 5,733 8,152 Transaction costs (acquisitions and other)(e) 1,068 2,414 7,858 (Gain) loss on disposal and impairment of assets(f) (1,011) 658 (525) Effects of fair value adjustments to inventory(g) 788 575 4,176 Change in fair value of financial instruments(h) — — 6,395 Gain on legal settlement (1,382) (14,029) — Secondary public offering costs(i) — 363 — Debt transaction costs(j) 532 — 678 Adjusted EBITDA $ 319,371 $ 299,759 $ 295,669 __________________________________________ (a) Represents changes in the fair value of stock appreciation rights. (b) Represents 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 the calculation of Adjusted EBITDA under the ABL Facility and the Term Loan Facility, including certain unusual, nonrecurring costs and credits due to COVID-19. (e) Represents costs related to acquisitions paid to third parties. (f) Includes gains from the sale of assets and impairment of assets resulting from restructuring plans to close certain 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 | The following table presents Company’s net sales to external customers by main product line: Year Ended April 30, 2021 2020 2019 (in thousands) Wallboard $ 1,346,560 $ 1,329,775 $ 1,272,068 Ceilings 450,524 475,827 451,695 Steel framing 469,002 502,122 506,805 Complementary products 1,032,737 933,583 885,464 Total net sales $ 3,298,823 $ 3,241,307 $ 3,116,032 |
Schedule of net sales by major geographic area | The following table presents the Company’s net sales by major geographic area: Year Ended April 30, 2021 2020 2019 (in thousands) United States $ 2,770,450 $ 2,805,920 $ 2,701,678 Canada 528,373 435,387 414,354 Total net sales $ 3,298,823 $ 3,241,307 $ 3,116,032 |
Schedule of property and equipment by major geographic area | The following table presents the Company’s property and equipment by major geographic area: April 30, April 30, (in thousands) United States $ 271,346 $ 270,855 Canada 39,980 34,612 Total property and equipment, net $ 311,326 $ 305,467 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share of common stock | The following table sets forth the computation of basic and diluted earnings per share of common stock: Year Ended April 30, 2021 2020 2019 (in thousands, except per share data) Net income $ 105,560 $ 23,381 $ 56,002 Less: Net income allocated to participating securities — 74 1,382 Net income attributable to common stockholders $ 105,560 $ 23,307 $ 54,620 Basic earnings per common share: Basic weighted average common shares outstanding 42,765 41,853 40,914 Basic earnings per common share $ 2.47 $ 0.56 $ 1.33 Diluted earnings per common share: Basic weighted average common shares outstanding 42,765 41,853 40,914 Add: Common Stock Equivalents 578 651 675 Diluted weighted average common shares outstanding 43,343 42,504 41,589 Diluted earnings per common share $ 2.44 $ 0.55 $ 1.31 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Allowances for Accounts Receivable | |
Valuation and Qualifying Accounts | |
Schedule of Valuation and Qualifying Accounts | Allowances for Accounts Receivable Balance Provision Charged to Deductions Balance (in thousands) Fiscal Year Ended April 30, 2021 $ (5,141) $ (1,774) $ (477) $ 1,110 $ (6,282) Fiscal Year Ended April 30, 2020 (6,432) (2,348) 938 2,701 (5,141) Fiscal Year Ended April 30, 2019 (9,633) (1,064) 2,435 1,830 (6,432) __________________________________________ (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. |
Valuation Allowance on Deferred Tax Assets | |
Valuation and Qualifying Accounts | |
Schedule of Valuation and Qualifying Accounts | Valuation Allowance on Deferred Tax Assets Rollforward Balance Additions Deductions Balance (in thousands) Fiscal Year Ended April 30, 2021 $ (10,183) $ (1,585) $ — $ (11,768) Fiscal Year Ended April 30, 2020 (1,112) (9,071) — (10,183) Fiscal Year Ended April 30, 2019 (448) (664) — (1,112) |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of selected quarterly financial information | The following table sets forth certain unaudited financial information for each quarter of the years ended April 30, 2021 and 2020. 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. Year Ended April 30, 2021 First Second Third Fourth (in thousands, except per share data) Net sales $ 802,573 $ 812,856 $ 751,191 $ 932,203 Gross profit 260,458 265,071 243,324 293,850 Net income 27,219 28,469 16,126 33,746 Per share data Weighted average shares outstanding(1): Basic 42,624 42,723 42,726 42,994 Diluted 43,017 43,174 43,361 43,828 Net income per share(1): Basic $ 0.64 $ 0.67 $ 0.38 $ 0.78 Diluted $ 0.63 $ 0.66 $ 0.37 $ 0.77 Year Ended April 30, 2020 First Second Third Fourth (in thousands, except per share data) Net sales $ 847,176 $ 861,929 $ 761,352 $ 770,850 Gross profit 273,654 284,493 253,473 251,594 Net income (loss)(1) 24,820 29,138 10,879 (41,456) Per share data Weighted average shares outstanding(2): Basic 41,001 41,761 42,223 42,435 Diluted 41,615 42,635 42,949 42,435 Net income (loss) per share(2): Basic $ 0.60 $ 0.70 $ 0.26 $ (0.98) Diluted $ 0.59 $ 0.68 $ 0.25 $ (0.98) __________________________________________ (1) Net loss 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. (2) Basic and diluted net income (loss) per share are computed independently for each of the quarters presented. Therefore, the sum of the quarterly basic and diluted net income (loss) per share amounts may not equal annual basic and diluted net income per share amounts. |
Business, Basis of Presentati_4
Business, Basis of Presentation and Summary of Significant Accounting Policies - Business and Reclassification (Details) $ in Thousands | Apr. 30, 2021USD ($)center | Apr. 30, 2020USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of branches through which products are distributed | center | 268 | |
Reclassification [Line Items] | ||
Other liabilities | $ (63,508) | $ (66,512) |
Other accrued expenses and current liabilities | $ 87,138 | 75,326 |
Revision of Prior Period, Error Correction, Adjustment | ||
Reclassification [Line Items] | ||
Other liabilities | 11,500 | |
Other accrued expenses and current liabilities | $ 11,500 |
Business, Basis of Presentati_5
Business, Basis of Presentation and Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Apr. 30, 2021 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Depreciation expense for property and equipment (as a percent) | 4.00% |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 25 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 39 years |
Furniture, fixtures and automobiles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Furniture, fixtures and automobiles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Warehouse and delivery equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 4 years |
Warehouse and delivery equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Vehicles and trucks | Minimum | |
Property, Plant and Equipment [Line Items] | |
Depreciation expense for property and equipment (as a percent) | 30.00% |
Vehicles and trucks | Maximum | |
Property, Plant and Equipment [Line Items] | |
Depreciation expense for property and equipment (as a percent) | 40.00% |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Depreciation expense for property and equipment (as a percent) | 8.00% |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Depreciation expense for property and equipment (as a percent) | 20.00% |
Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
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 - Leases (Details) | Apr. 30, 2021 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term (in years) | 1 year |
Renewal lease term (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term (in years) | 11 years |
Renewal lease term (in years) | 5 years |
Business, Basis of Presentati_7
Business, Basis of Presentation and Summary of Significant Accounting Policies - Insurance Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Other accrued expenses and current liabilities. | ||
Loss Contingencies [Line Items] | ||
Medical self-insurance | $ 3,852 | $ 3,770 |
General liability | ||
Loss Contingencies [Line Items] | ||
Deductible amount | 300 | |
General liability | Minimum | ||
Loss Contingencies [Line Items] | ||
Primary layer of insurance coverage | 300 | |
Workers' compensation | ||
Loss Contingencies [Line Items] | ||
Deductible amount | 500 | |
Workers' compensation | Minimum | ||
Loss Contingencies [Line Items] | ||
Primary layer of insurance coverage | 500 | |
Automobile | ||
Loss Contingencies [Line Items] | ||
Deductible amount | 1,000 | |
Automobile | Minimum | ||
Loss Contingencies [Line Items] | ||
Primary layer of insurance coverage | 1,000 | |
General liability, workers' compensation and automobile | Other accrued expenses and current liabilities. | ||
Loss Contingencies [Line Items] | ||
General liability, automobile and workers’ compensation | 19,807 | 19,410 |
General liability, workers' compensation and automobile | Prepaid expenses and other current assets | ||
Loss Contingencies [Line Items] | ||
Expected recoveries for insurance liabilities | (3,209) | $ (6,037) |
General liability, workers' compensation and automobile | Minimum | ||
Loss Contingencies [Line Items] | ||
Buffer layer of insurance coverage | 5,000 | |
Excess layer of insurance coverage | 10,000 | |
General liability, workers' compensation and automobile | Maximum | ||
Loss Contingencies [Line Items] | ||
Primary layer of insurance coverage | 5,000 | |
Buffer layer of insurance coverage | 10,000 | |
Excess layer of insurance coverage | $ 100,000 |
Business, Basis of Presentati_8
Business, Basis of Presentation and Summary of Significant Accounting Policies - Restructuring charges (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2020USD ($)facility | Jul. 31, 2018USD ($) | Apr. 30, 2021USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed | facility | 1 | ||
Restructuring costs | $ 2.2 | ||
Impairment | 1.9 | $ 1 | |
Severance | $ 0.3 | ||
Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 5 |
Business, Basis of Presentati_9
Business, Basis of Presentation and Summary of Significant Accounting Policies - Selling, General and Administrative Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Shipping and Handling Cost [Line Items] | |||
Cost of sales | $ 2,236,120 | $ 2,178,093 | $ 2,111,913 |
Delivery | Selling, general and administrative expenses | |||
Shipping and Handling Cost [Line Items] | |||
Cost of sales | $ 232,800 | $ 243,000 | $ 225,600 |
Business, Basis of Presentat_10
Business, Basis of Presentation and Summary of Significant Accounting Policies - Advertising Expense and Credit and Economic Risk (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Selling, general and administrative expenses | |||
Advertising Expense [Line Items] | |||
Advertising expense | $ 2.3 | $ 3.3 | $ 1.9 |
Business Acquisitions (Details)
Business Acquisitions (Details) $ in Thousands, shares in Millions, $ in Millions | Feb. 01, 2021USD ($)location | Feb. 01, 2021CAD ($) | Jun. 01, 2018USD ($)locationprovinceshares | Jun. 01, 2018CAD ($)shares | Apr. 30, 2021USD ($) | Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($) | Nov. 01, 2019 |
Preliminary Purchase Price Allocation | ||||||||
Goodwill | $ 576,330 | $ 553,073 | ||||||
Borrowings from revolving credit facilities | 14,750 | 880,698 | $ 981,148 | |||||
Loan repayment | $ 869,427 | 0 | 571,840 | |||||
Term Loan Facility | ||||||||
Preliminary Purchase Price Allocation | ||||||||
Loan repayment | $ 571,800 | |||||||
Third Amendment | LIBOR | ||||||||
Preliminary Purchase Price Allocation | ||||||||
Variable rate floor (as a percent) | 0.00% | 0.00% | ||||||
Margin added to variable rate (as a percent) | 2.75% | 2.75% | ||||||
D.L. Building Materials Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Outstanding common stock purchased (as a percent) | 100.00% | |||||||
Fair value of consideration transferred | $ 39,500 | $ 50.6 | ||||||
Number of locations | location | 2 | |||||||
Preliminary Purchase Price Allocation | ||||||||
Cash | $ 4,179 | |||||||
Trade accounts and notes receivable | 8,325 | |||||||
Inventories | 5,075 | |||||||
Prepaid and other current assets | 675 | |||||||
Property and equipment | 2,721 | |||||||
Operating lease right-of-use assets | 1,103 | |||||||
Goodwill | 9,084 | |||||||
Deferred income taxes | (2,830) | |||||||
Liabilities assumed | (12,282) | |||||||
Fair value of consideration transferred | 39,474 | |||||||
D.L. Building Materials Inc. | Customer relationships | ||||||||
Preliminary Purchase Price Allocation | ||||||||
Intangible assets | 20,926 | |||||||
D.L. Building Materials Inc. | Tradenames | ||||||||
Preliminary Purchase Price Allocation | ||||||||
Intangible assets | $ 2,498 | |||||||
2020 Acquisitions | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value of consideration transferred | $ 24,900 | |||||||
Rigney Building Supplies Ltd | ||||||||
Business Acquisition [Line Items] | ||||||||
Outstanding common stock purchased (as a percent) | 100.00% | |||||||
Titan | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value of consideration transferred | $ 611,100 | |||||||
Number of locations | location | 30 | |||||||
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 income taxes | (12,252) | |||||||
Fair value of consideration transferred | 611,109 | |||||||
Number of provinces | province | 5 | |||||||
Aggregate purchase price | $ 627,000 | $ 800 | ||||||
Issuance of shares | shares | 1.1 | 1.1 | ||||||
Cash consideration | $ 581,500 | |||||||
Issuance preferred stock to current shareholders of Titan | 29,600 | |||||||
Titan | ABL facility | ||||||||
Preliminary Purchase Price Allocation | ||||||||
Borrowings from revolving credit facilities | 143,000 | |||||||
Titan | Term Loan Facility | ||||||||
Preliminary Purchase Price Allocation | ||||||||
Loan repayment | 571,800 | |||||||
Titan | Third Amendment | ||||||||
Preliminary Purchase Price Allocation | ||||||||
Aggregate purchase price | $ 996,800 | |||||||
Titan | Third Amendment | LIBOR | ||||||||
Preliminary Purchase Price Allocation | ||||||||
Variable rate floor (as a percent) | 0.00% | 0.00% | ||||||
Margin added to variable rate (as a percent) | 2.75% | 2.75% | ||||||
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 income taxes | (14,337) | |||||||
Fair value of consideration transferred | $ 614,219 | |||||||
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 income taxes | 2,085 | |||||||
Fair value of consideration transferred | $ (3,110) |
Accounts Receivable - Trade Acc
Accounts Receivable - Trade Accounts And Notes Receivable (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Receivables [Abstract] | ||
Trade receivables | $ 488,002 | $ 398,739 |
Other receivables | 76,941 | 47,328 |
Allowance for expected credit losses | (3,254) | (2,861) |
Other allowances | (3,028) | (2,280) |
Trade accounts and notes receivable | $ 558,661 | $ 440,926 |
Accounts Receivable - Change in
Accounts Receivable - Change in Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Change in allowance | ||
Beginning balance | $ 2,861 | |
Provision | 1,774 | |
Write-offs | (1,381) | |
Ending balance | 3,254 | |
Receivables from contracts with customers | $ 481,700 | $ 393,600 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 504,690 | $ 464,021 | |
Less: accumulated depreciation and amortization | 193,364 | 158,554 | |
Total property and equipment, net of accumulated depreciation | 311,326 | 305,467 | |
Depreciation expense | 50,480 | 51,332 | $ 46,456 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 56,841 | 52,581 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 120,616 | 110,322 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 324,375 | 300,133 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 2,858 | $ 985 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands | 12 Months Ended |
Apr. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill gross | $ 616,147 |
Goodwill, accumulated impairment loss | (63,074) |
Goodwill balance | 553,073 |
Goodwill recognized from acquisition | 9,084 |
Purchase price adjustments | (159) |
Translation adjustment, gross | 20,305 |
Translation adjustment, impairment loss | (5,973) |
Translation adjustment, net | 14,332 |
Goodwill gross | 645,377 |
Goodwill, accumulated impairment loss | (69,047) |
Goodwill balance | $ 576,330 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2020USD ($) | Apr. 30, 2021USD ($)unit | Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Number of reporting units | unit | 8 | |||
Impairment of goodwill | $ (63,100) | $ 0 | $ (63,074) | $ 0 |
Goodwill | 553,073 | 576,330 | 553,073 | |
Amortization expense | 57,645 | 65,201 | 71,003 | |
Tradenames | 61,400 | 61,400 | 61,400 | |
Canada | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of goodwill | $ (63,100) | |||
Goodwill | 144,600 | |||
Depreciation and amortization expense | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 57,600 | $ 65,200 | $ 71,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 647,973 | $ 592,098 |
Accumulated Amortization | (358,471) | (291,581) |
Net Carrying Value | $ 289,502 | $ 300,517 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (in years) | 13 years 3 months 18 days | 12 years 9 months 18 days |
Gross Carrying Amount | $ 569,255 | $ 516,928 |
Accumulated Amortization | (330,880) | (270,029) |
Net Carrying Value | $ 238,375 | $ 246,899 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (years) | 5 years | 5 years |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (years) | 16 years | 16 years |
Definite-lived tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (in years) | 16 years 9 months 18 days | 16 years 3 months 18 days |
Gross Carrying Amount | $ 62,084 | $ 55,654 |
Accumulated Amortization | (14,842) | (10,474) |
Net Carrying Value | $ 47,242 | $ 45,180 |
Definite-lived tradenames | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (years) | 5 years | 5 years |
Definite-lived tradenames | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (years) | 20 years | 20 years |
Vendor agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
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 | (5,372) | (4,567) |
Net Carrying Value | $ 1,272 | $ 2,077 |
Vendor agreements | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (years) | 8 years | 8 years |
Vendor agreements | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (years) | 10 years | 10 years |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
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 | $ 5,699 | $ 5,036 |
Accumulated Amortization | (3,381) | (1,963) |
Net Carrying Value | $ 2,318 | $ 3,073 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (in years) | 3 years 3 months 18 days | 5 years 3 months 18 days |
Gross Carrying Amount | $ 4,291 | $ 7,836 |
Accumulated Amortization | (3,996) | (4,548) |
Net Carrying Value | $ 295 | $ 3,288 |
Other | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (years) | 3 years | 1 year |
Other | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (years) | 5 years | 15 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 53,094 | |
2023 | 44,251 | |
2024 | 36,024 | |
2025 | 29,738 | |
2026 | 24,807 | |
Thereafter | 101,588 | |
Net Carrying Value | $ 289,502 | $ 300,517 |
Other Accrued Expenses and Cu_3
Other Accrued Expenses and Current Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Insurance related liabilities | $ 14,301 | $ 12,922 |
Customer rebates payable | 12,723 | 10,211 |
Sales taxes payable | 11,529 | 9,493 |
Derivative liability | 11,817 | 11,514 |
Reserve for sales returns | 6,028 | 4,081 |
Income taxes payable | 5,928 | 2,844 |
Other | 24,812 | 24,261 |
Total other accrued expenses and current liabilities | $ 87,138 | $ 75,326 |
Long-Term Debt - Components (De
Long-Term Debt - Components (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 22, 2021 | Apr. 30, 2020 |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 989,386 | ||
Finance lease obligations | 117,948 | $ 128,767 | |
Carrying value of debt | 978,427 | 1,097,480 | |
Less current portion | 46,018 | 50,201 | |
Long-term debt | 932,409 | 1,047,279 | |
Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 509,722 | $ 511,000 | 876,903 |
Unamortized discount and deferred financing costs | (4,735) | (10,602) | |
ABL Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 0 | 80,000 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 350,000 | 0 | |
Unamortized discount and deferred financing costs | (5,485) | 0 | |
Interest rate | 4.625% | ||
Installment notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 11,716 | 16,316 | |
Unamortized discount | $ (739) | $ (1,098) | |
Installment notes | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.00% | 5.00% | |
Canadian Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 0 | $ 7,194 |
Long-Term Debt - Term Loan Faci
Long-Term Debt - Term Loan Facility (Details) $ in Thousands | Apr. 22, 2021USD ($) | Mar. 06, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 01, 2018USD ($) | Apr. 30, 2021USD ($)loan | Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($) |
Debt Instrument [Line Items] | |||||||
Loan repayment | $ 869,427 | $ 0 | $ 571,840 | ||||
Long-term debt, gross | 989,386 | ||||||
Write-off of debt discount and deferred financing fees | 4,606 | 1,331 | $ 0 | ||||
Term Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Loan amortization installments | $ 1,300 | ||||||
Loan amortization installments (as a percent) | 0.25% | ||||||
Borrowing interest rate (as a percent) | 2.61% | ||||||
Loan repayment | $ 571,800 | ||||||
Repayments of debt | $ 50,000 | $ 50,000 | |||||
Long-term debt, gross | $ 511,000 | $ 509,722 | 876,903 | ||||
Write-off of debt discount and deferred financing fees | $ 1,300 | ||||||
Third Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 996,800 | ||||||
Third Amendment | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Margin added to variable rate (as a percent) | 2.75% | ||||||
Variable rate floor (as a percent) | 0.00% | ||||||
Fourth Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Write-off of debt discount and deferred financing fees | $ 4,600 | ||||||
Fourth Amendment | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Margin added to variable rate (as a percent) | 2.50% | ||||||
Variable rate floor (as a percent) | 0.00% | ||||||
Minimum | Term Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Number of incremental loans | loan | 1 | ||||||
Maximum | Term Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Fixed amount of incremental loan | $ 100,000 |
Long-Term Debt - Asset-Based Le
Long-Term Debt - Asset-Based Lending Facility (Details) - ABL Facility $ in Millions | Apr. 30, 2021USD ($) |
Debt Instrument [Line Items] | |
Maximum amount under the facility | $ 445 |
Available borrowings under the facility | 429.6 |
Swing-line | |
Debt Instrument [Line Items] | |
Maximum amount under the facility | $ 44.5 |
Long-Term Debt - Prepayments (D
Long-Term Debt - Prepayments (Details) - Term Loan Facility | 12 Months Ended |
Apr. 30, 2021USD ($) | |
Debt Instrument [Line Items] | |
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 |
Maximum | |
Debt Instrument [Line Items] | |
Percentage of annual excess cash flow for mandatory prepayments | 25.00% |
Minimum | |
Debt Instrument [Line Items] | |
Percentage of annual excess cash flow for mandatory prepayments | 0.00% |
Long-Term Debt - Senior Notes (
Long-Term Debt - Senior Notes (Details) - Senior Notes | Apr. 22, 2021USD ($) |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 350,000,000 |
Interest rate | 4.625% |
Redemption price, percentage | 100.00% |
Percentage of principal amount redeemed | 40.00% |
Long-Term Debt - Canadian Revol
Long-Term Debt - Canadian Revolving Credit Facility (Details) - Apr. 30, 2021 - Canadian Facility | USD ($) | CAD ($) |
Debt Instrument [Line Items] | ||
Maximum amount under the facility | $ 24,400,000 | $ 30,000,000 |
Available borrowings under the facility | $ 24,200,000 |
Long-Term Debt - Maturities (De
Long-Term Debt - Maturities (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 22, 2021 | Apr. 30, 2020 |
Debt Instrument [Line Items] | |||
2022 | $ 46,295 | ||
2023 | 41,140 | ||
2024 | 31,593 | ||
2025 | 20,595 | ||
2026 | 496,736 | ||
Thereafter | 353,027 | ||
Total | 989,386 | ||
Term Loan Facility | |||
Debt Instrument [Line Items] | |||
2022 | 5,110 | ||
2023 | 5,110 | ||
2024 | 5,110 | ||
2025 | 5,110 | ||
2026 | 489,282 | ||
Thereafter | 0 | ||
Total | 509,722 | $ 511,000 | $ 876,903 |
Senior Notes | |||
Debt Instrument [Line Items] | |||
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
Thereafter | 350,000 | ||
Total | 350,000 | 0 | |
Finance lease obligations | |||
Debt Instrument [Line Items] | |||
2022 | 36,665 | ||
2023 | 31,525 | ||
2024 | 24,602 | ||
2025 | 14,675 | ||
2026 | 7,454 | ||
Thereafter | 3,027 | ||
Total | 117,948 | ||
Installment notes | |||
Debt Instrument [Line Items] | |||
2022 | 4,520 | ||
2023 | 4,505 | ||
2024 | 1,881 | ||
2025 | 810 | ||
2026 | 0 | ||
Thereafter | 0 | ||
Total | $ 11,716 | $ 16,316 |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Finance lease cost: | |||
Amortization of right-of-use assets | $ 23,769 | $ 24,352 | |
Interest on lease liabilities | 11,164 | 13,316 | |
Operating lease cost | 42,383 | 42,846 | |
Variable lease cost | 12,914 | 12,555 | |
Total lease cost | $ 90,230 | $ 93,069 | |
Rent expense | $ 53,500 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | $ 42,876 | $ 42,150 | |
Operating cash flows from finance leases | 11,164 | 13,316 | |
Financing cash flows from finance leases | 30,371 | 25,275 | $ 19,474 |
Right-of-use assets obtained in exchange for lease obligations | |||
Operating leases | 37,513 | 38,143 | |
Finance leases | $ 27,400 | $ 50,484 |
Leases - Other information (Det
Leases - Other information (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Finance leases included in property and equipment | ||
Property and equipment | $ 176,591 | $ 171,380 |
Accumulated depreciation | (51,869) | (41,737) |
Property and equipment, net | $ 124,722 | $ 129,643 |
Finance lease, right-of-use asset, balance sheet location [Extensible List] | Property and equipment, net of accumulated depreciation of $193,364 and $158,554, respectively | Property and equipment, net of accumulated depreciation of $193,364 and $158,554, respectively |
Weighted-average remaining lease term (years) | ||
Operating leases | 4 years 8 months 12 days | 4 years 10 months 24 days |
Finance leases | 3 years 6 months | 3 years 7 months 6 days |
Weighted-average discount rate | ||
Operating leases | 5.50% | 5.50% |
Finance leases | 4.60% | 5.00% |
Leases - Future minimum lease p
Leases - Future minimum lease payments under non-cancellable leases (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Finance lease | ||
2022 | $ 44,209 | |
2023 | 35,538 | |
2024 | 26,259 | |
2025 | 15,266 | |
2026 | 7,627 | |
Thereafter | 3,051 | |
Total lease payments | 131,950 | |
Less imputed interest | 14,002 | |
Finance lease obligations | 117,948 | $ 128,767 |
Operating lease | ||
2022 | 39,474 | |
2023 | 32,704 | |
2024 | 26,764 | |
2025 | 18,455 | |
2026 | 8,707 | |
Thereafter | 15,197 | |
Total lease payments | 141,301 | |
Less imputed interest | 17,537 | |
Total | $ 123,764 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Retirement Benefits [Abstract] | |||
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 | $ 3.2 | $ 5.3 | $ 4.7 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income Tax Disclosure [Line Items] | |||
Income before taxes | $ 137,094 | $ 46,325 | $ 70,041 |
United States | |||
Income Tax Disclosure [Line Items] | |||
Income before taxes | 106,059 | 106,850 | 62,878 |
Foreign | |||
Income Tax Disclosure [Line Items] | |||
Income before taxes | $ 31,035 | $ (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, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Current | |||
Federal | $ 27,171 | $ 12,537 | $ 11,858 |
Foreign | 9,098 | 1,624 | 13,739 |
State | 5,594 | 7,857 | 5,929 |
Total Current | 41,863 | 22,018 | 31,526 |
Deferred | |||
Federal | (4,653) | 8,986 | 453 |
Foreign | (5,870) | (7,347) | (16,931) |
State | 194 | (713) | (1,009) |
Total Deferred | (10,329) | 926 | (17,487) |
Total provision for income taxes | $ 31,534 | $ 22,944 | $ 14,039 |
Income Taxes - Reconciliation t
Income Taxes - Reconciliation to Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes at statutory rate | $ 28,793 | $ 9,747 | $ 14,715 |
State income taxes, net of federal income tax benefit | 4,000 | 4,054 | 2,440 |
Impact of foreign rate differences | 1,162 | (2,861) | 418 |
Impact of rate difference on impairment of goodwill | 0 | 7,630 | 0 |
Net change in valuation allowance | 578 | 9,070 | 664 |
Nondeductible meals & entertainment | 252 | 592 | 635 |
Equity-based compensation | (1,012) | (1,196) | (53) |
GILTI | 1,911 | 704 | 241 |
Nondeductible transaction costs | 0 | 90 | 529 |
Intercompany interest expense | (4,532) | (5,361) | (5,255) |
Other | 382 | 475 | (295) |
Total provision for income taxes | $ 31,534 | $ 22,944 | $ 14,039 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Deferred income tax assets: | ||
Allowances on accounts and notes receivable | $ 2,617 | $ 2,016 |
Accrued payroll and related costs | 5,093 | 1,859 |
Insurance reserves | 4,086 | 2,501 |
Inventory costs | 3,252 | 2,630 |
Deferred compensation | 7,892 | 7,426 |
Equity compensation | 2,612 | 2,695 |
Derivative instrument | 5,083 | 7,850 |
Acquisition related costs | 1,202 | 1,311 |
Net operating loss carry-forwards | 1,591 | 1,595 |
Disallowed interest expense | 974 | 736 |
Investment in partnerships | 24,316 | 16,535 |
Deferred rent | 829 | 1,112 |
Noncompete agreements | 95 | 120 |
Other deferred tax assets, net | 1,147 | 1,424 |
Total deferred income tax assets | 60,789 | 49,810 |
Less: Valuation allowance | (11,768) | (10,183) |
Total deferred income tax assets, net of valuation allowance | 49,021 | 39,627 |
Deferred income tax liabilities: | ||
Amortization of intangible assets | (19,583) | (18,917) |
Rebates | (151) | (400) |
Depreciation | (25,668) | (21,508) |
Deferred financing costs | (463) | (1,582) |
Other deferred tax liabilities, net | (169) | (334) |
Total deferred income tax liabilities | (46,034) | (42,741) |
Deferred income tax liabilities, net | $ 2,987 | |
Deferred income tax liabilities, net | $ (3,114) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Reserve for uncertain tax positions | $ 0 | $ 0 |
Liability for uncertain tax position | 0 | 0 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | 700,000 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | $ 29,700,000 | $ 27,400,000 |
State | Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Statute of limitation period | 3 years | |
State | Maximum | ||
Operating Loss Carryforwards [Line Items] | ||
Statute of limitation period | 4 years |
Stockholders' Equity - Exchange
Stockholders' Equity - Exchangeable Shares, Share Repurchase Program and Secondary Public Offering (Details) $ / shares in Units, $ in Millions | Sep. 09, 2019$ / sharesshares | Jun. 13, 2019shares | Jun. 01, 2018shares | Apr. 30, 2021USD ($)shares | Apr. 30, 2020shares | Apr. 30, 2019USD ($)shares |
Equity, Class of Treasury Stock [Line Items] | ||||||
Number of shares repurchased (shares) | 134,000 | 0 | 1,000,000 | |||
Shares repurchased, cost | $ | $ 4.2 | $ 16.5 | ||||
Remaining amount under repurchase program | $ | 54.3 | |||||
AEA Investors LP | Selling Stockholders | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares sold (in shares) | 6,800,000 | |||||
Price to the public (in dollars per share) | $ / shares | $ 27.20 | |||||
Maximum | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Authorized amount of shares to be repurchased under the program | $ | $ 75 | |||||
Titan | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Issuance of shares to current shareholders of Titan (in shares) | 1,100,000 | |||||
Exchangeable shares conversion ratio | 1 | |||||
Duration which stock can not be transferred | 1 year | |||||
Exchangeable shares converted (in shares) | 1,100,000 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Accumulated other comprehensive (loss) income [Roll Forward] | |||
Balance | $ 633,981 | $ 629,176 | $ 579,451 |
Other comprehensive income (loss) before reclassification | 61,030 | (40,520) | (27,743) |
Reclassification to earnings from accumulated other comprehensive income (loss) | 8,811 | 2,012 | 728 |
Balance | 822,462 | 633,981 | 629,176 |
Other comprehensive loss on derivative instruments before reclassification, tax | 100 | 6,400 | 1,400 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated other comprehensive (loss) income [Roll Forward] | |||
Balance | (65,082) | (26,574) | 441 |
Balance | 4,759 | (65,082) | (26,574) |
Foreign Currency Translation | |||
Accumulated other comprehensive (loss) income [Roll Forward] | |||
Balance | (40,577) | (22,320) | 0 |
Other comprehensive income (loss) before reclassification | 61,341 | (18,257) | (22,320) |
Reclassification to earnings from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Balance | 20,764 | (40,577) | (22,320) |
Derivative Financial Instruments | |||
Accumulated other comprehensive (loss) income [Roll Forward] | |||
Balance | (24,505) | (4,254) | 441 |
Other comprehensive income (loss) before reclassification | (311) | (22,263) | (5,423) |
Reclassification to earnings from accumulated other comprehensive income (loss) | 8,811 | 2,012 | 728 |
Balance | $ (16,005) | $ (24,505) | $ (4,254) |
Equity-Based Compensation (Deta
Equity-Based Compensation (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation | $ 8,442 | $ 7,060 | $ 3,906 |
Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation | $ 7,900 | $ 6,500 | $ 3,600 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of award | ten years | ||
Minimum | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Minimum | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 1 year | ||
Maximum | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 4 years | ||
Maximum | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized | 2.4 | ||
Number of shares available for grant | 2.4 |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Number of Options | |||
Outstanding, beginning of the period (in shares) | 1,487 | ||
Options granted (in shares) | 321 | ||
Options exercised (in shares) | (467) | ||
Options forfeited (in shares) | (52) | ||
Outstanding, end of the period (in shares) | 1,289 | 1,487 | |
Exercisable at end of period (in shares) | 676 | ||
Vested and expected to vest at end of period (in shares) | 1,284 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning of period (in dollars per share) | $ 18.85 | ||
Options granted (in dollars per share) | 23.43 | ||
Options exercised (in dollars per share) | 15.68 | ||
Options forfeited (in dollars per share) | 25.79 | ||
Outstanding, end of the period (in dollars per share) | 20.86 | $ 18.85 | |
Exercisable at end of period (in dollars per share) | 18.99 | ||
Vested and expected to vest at end of period (in dollars per share) | $ 20.85 | ||
Other disclosures | |||
Weighted Average Remaining Contractual Life, Outstanding (in years) | 6 years 9 months 18 days | 6 years 4 months 24 days | |
Weighted Average Remaining Contractual Life, Exercisable at end of period (in years) | 5 years 1 month 6 days | ||
Weighted Average Remaining Contractual Life, Vested and expected to vest at end of period (in years) | 6 years 9 months 18 days | ||
Aggregate Intrinsic Value, Outstanding | $ 29,465 | $ 3,895 | |
Aggregate Intrinsic Value, Exercisable at end of period | 16,720 | ||
Aggregate Intrinsic Value, Vested and expected to vest at end of period | 29,361 | ||
Intrinsic value of options exercised | 9,900 | $ 11,500 | $ 1,600 |
Unrecognized compensation cost | $ 3,900 | ||
Weighted-average period for recognition of unrecognized compensation expense (in years) | 1 year 9 months 18 days |
Equity-Based Compensation - Bla
Equity-Based Compensation - Black Scholes Options - Pricing Model (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility (as a percent) | 51.28% | 49.86% | 33.71% |
Expected life (years) | 6 years | 6 years | 6 years |
Risk-free interest rate (as a percent) | 0.30% | 1.97% | 2.87% |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Weighted average grant date fair value (in dollars per share) | $ 11.13 | $ 10.59 | $ 9.72 |
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, 2021USD ($)$ / sharesshares | |
Number of Restricted Stock Units | |
Outstanding, beginning of the period (in shares) | shares | 286 |
Granted (in shares) | shares | 214 |
Vested (in shares) | shares | (110) |
Forfeited (in shares) | shares | (29) |
Outstanding, end of the period (in shares) | shares | 361 |
Weighted Average Exercise Price | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 22.71 |
Granted (in dollars per share) | $ / shares | 23.48 |
Vested (in dollars per share) | $ / shares | 23.21 |
Forfeited (in dollars per share) | $ / shares | 23.87 |
Outstanding, end of the period (in dollars per share) | $ / shares | $ 22.92 |
Unrecognized compensation cost | $ | $ 5.2 |
Weighted-average period for recognition of unrecognized compensation expense (in years) | 1 year 8 months 12 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, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 8,442 | $ 7,060 | $ 3,906 |
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 | 1.7 | ||
Number of shares purchased under ESPP | 0.1 | 0.1 | 0.1 |
Average price per share (in dollars per share) | $ 21.78 | $ 15.62 | $ 18.51 |
Share-based compensation expense | $ 500 | $ 500 | $ 300 |
Stock Appreciation Rights, De_3
Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Selling, general and administrative expenses | |||
Equity based compensation arrangements [Roll Forward] | |||
Expense related to equity based compensation arrangements | $ 4,500 | $ 2,100 | $ 3,900 |
Stock Appreciation Rights | |||
Equity based compensation arrangements [Roll Forward] | |||
Award liability as of beginning of period | 24,205 | 23,458 | |
Amounts redeemed | (583) | (825) | |
Change in fair value | 3,173 | 1,572 | |
Award liability as of end of period | 26,795 | 24,205 | 23,458 |
Current liabilities related to plans | 1,305 | 624 | |
Long-term liabilities related to plans | $ 25,490 | 23,581 | |
Settlement period | 5 years | ||
Deferred Compensation | |||
Equity based compensation arrangements [Roll Forward] | |||
Award liability as of beginning of period | $ 1,660 | 1,695 | |
Amounts redeemed | 0 | (108) | |
Change in fair value | 215 | 73 | |
Award liability as of end of period | 1,875 | 1,660 | 1,695 |
Current liabilities related to plans | 0 | 0 | |
Long-term liabilities related to plans | $ 1,875 | 1,660 | |
Settlement period | 5 years | ||
Redeemable Noncontrolling Interests | |||
Equity based compensation arrangements [Roll Forward] | |||
Award liability as of beginning of period | $ 8,300 | 12,498 | |
Amounts redeemed | 0 | (4,644) | |
Change in fair value | 1,073 | 446 | |
Award liability as of end of period | 9,373 | 8,300 | $ 12,498 |
Current liabilities related to plans | 0 | 0 | |
Long-term liabilities related to plans | $ 9,373 | $ 8,300 | |
Settlement period | 5 years |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Derivative Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Interest rate swap agreements | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 21,004 | $ 32,218 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | Feb. 28, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Interest rate swap gains (losses) | $ 0 | $ 0 | $ (6,395) | ||
ROU asset impairment | $ 1,900 | 1,000 | |||
Impairment of goodwill | $ 63,100 | 0 | 63,074 | $ 0 | |
Interest rate swap agreements | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Interest rate swap gains (losses) | (8,800) | $ (2,000) | |||
Expected amount of pre-tax net losses will be reclassified from accumulated other comprehensive income (loss) into earnings during the next twelve months | 11,800 | ||||
Interest rate swap agreements | Other Accrued Expenses And Current Liabilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative liabilities | 11,800 | ||||
Interest rate swap agreements | Other Liabilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative liabilities | $ 9,200 | ||||
Term Loan Facility | Interest rate swap agreements | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Notional amount | $ 500,000 | ||||
Term Loan Facility | Interest rate swap agreements | LIBOR | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Capped interest rate (as a percent) | 2.46% |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value of Debt (Details) - Level 2 $ in Thousands | Apr. 30, 2021USD ($) |
Carrying Amount | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Senior Notes | $ 350,000 |
Fair Value | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Senior Notes | $ 350,000 |
Transactions With Related Par_2
Transactions With Related Parties - Purchased Inventories (Details) - Southern Wall Products, Inc. - Inventory purchases - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Related Party Transaction [Line Items] | |||
Purchases from related party | $ 7.3 | $ 14.3 | $ 13.3 |
Accounts payable | |||
Related Party Transaction [Line Items] | |||
Due to SWP | $ 1.2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Gain on legal settlement | $ 14,000 | $ 1,382 | $ 14,029 | $ 0 |
Segments - Narrative (Details)
Segments - Narrative (Details) | 12 Months Ended | |
Apr. 30, 2021divisionsegment | Apr. 30, 2020segment | |
Segment Reporting [Abstract] | ||
Number of operating segments | 8 | 7 |
Number of reportable segments | 1 | |
Number of geographic divisions | division | 8 |
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, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 932,203 | $ 751,191 | $ 812,856 | $ 802,573 | $ 770,850 | $ 761,352 | $ 861,929 | $ 847,176 | $ 3,298,823 | $ 3,241,307 | $ 3,116,032 |
Gross Profit | 293,850 | $ 243,324 | $ 265,071 | $ 260,458 | 251,594 | $ 253,473 | $ 284,493 | $ 273,654 | 1,062,703 | 1,063,214 | 1,004,119 |
Depreciation and Amortization | 108,125 | 116,533 | 117,459 | ||||||||
Adjusted EBITDA | 319,371 | 299,759 | 295,669 | ||||||||
Total Assets | 2,483,898 | 2,324,454 | 2,483,898 | 2,324,454 | 2,194,017 | ||||||
Geographic divisions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,263,893 | 3,213,938 | 3,090,314 | ||||||||
Gross Profit | 1,051,741 | 1,053,555 | 994,981 | ||||||||
Depreciation and Amortization | 106,152 | 114,279 | 114,558 | ||||||||
Adjusted EBITDA | 316,774 | 297,646 | 293,190 | ||||||||
Total Assets | 2,459,344 | 2,299,880 | 2,459,344 | 2,299,880 | 2,169,981 | ||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 34,930 | 27,369 | 25,718 | ||||||||
Gross Profit | 10,962 | 9,659 | 9,138 | ||||||||
Depreciation and Amortization | 364 | 233 | 220 | ||||||||
Adjusted EBITDA | 2,597 | 2,113 | 2,479 | ||||||||
Total Assets | 20,339 | 18,745 | 20,339 | 18,745 | 16,897 | ||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Gross Profit | 0 | 0 | 0 | ||||||||
Depreciation and Amortization | 1,609 | 2,021 | 2,681 | ||||||||
Adjusted EBITDA | 0 | 0 | 0 | ||||||||
Total Assets | $ 4,215 | $ 5,829 | $ 4,215 | $ 5,829 | $ 7,139 |
Segments - Reconciliation of Ne
Segments - Reconciliation of Net Income to Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Segment Reporting [Abstract] | |||||||||||
Net income | $ 33,746 | $ 16,126 | $ 28,469 | $ 27,219 | $ (41,456) | $ 10,879 | $ 29,138 | $ 24,820 | $ 105,560 | $ 23,381 | $ 56,002 |
Interest expense | 53,786 | 67,718 | 73,677 | ||||||||
Write-off of debt discount and deferred financing fees | 4,606 | 1,331 | 0 | ||||||||
Interest income | (86) | (88) | (66) | ||||||||
Provision for income taxes | 31,534 | 22,944 | 14,039 | ||||||||
Depreciation expense | 50,480 | 51,332 | 46,456 | ||||||||
Amortization expense | 57,645 | 65,201 | 71,003 | ||||||||
Impairment of goodwill | 63,100 | 0 | 63,074 | 0 | |||||||
Stock appreciation expense | 3,173 | 1,572 | 2,730 | ||||||||
Redeemable noncontrolling interests | 1,288 | 520 | 1,188 | ||||||||
Equity-based compensation | 8,442 | 7,060 | 3,906 | ||||||||
Severance and other permitted costs | 2,948 | 5,733 | 8,152 | ||||||||
Transaction costs (acquisitions and other) | 1,068 | 2,414 | 7,858 | ||||||||
(Gain) loss on disposal and impairment of assets | (1,011) | 658 | (525) | ||||||||
Effects of fair value adjustments to inventory | 788 | 575 | 4,176 | ||||||||
Change in fair value of financial instruments | 0 | 0 | 6,395 | ||||||||
Gain on legal settlement | $ (14,000) | (1,382) | (14,029) | 0 | |||||||
Secondary public offering costs | 0 | 363 | 0 | ||||||||
Debt transaction costs | 532 | 0 | 678 | ||||||||
Adjusted EBITDA | $ 319,371 | $ 299,759 | $ 295,669 |
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, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Revenue from External Customer [Line Items] | |||||||||||
Total net sales | $ 932,203 | $ 751,191 | $ 812,856 | $ 802,573 | $ 770,850 | $ 761,352 | $ 861,929 | $ 847,176 | $ 3,298,823 | $ 3,241,307 | $ 3,116,032 |
Wallboard | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total net sales | 1,346,560 | 1,329,775 | 1,272,068 | ||||||||
Ceilings | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total net sales | 450,524 | 475,827 | 451,695 | ||||||||
Steel framing | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total net sales | 469,002 | 502,122 | 506,805 | ||||||||
Complementary products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total net sales | $ 1,032,737 | $ 933,583 | $ 885,464 |
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, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | $ 932,203 | $ 751,191 | $ 812,856 | $ 802,573 | $ 770,850 | $ 761,352 | $ 861,929 | $ 847,176 | $ 3,298,823 | $ 3,241,307 | $ 3,116,032 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | 2,770,450 | 2,805,920 | 2,701,678 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | $ 528,373 | $ 435,387 | $ 414,354 |
Segments - Property and equipme
Segments - Property and equipment, net, by major geographic area (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 311,326 | $ 305,467 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 271,346 | 270,855 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 39,980 | $ 34,612 |
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, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | ||||
Earnings Per Share [Abstract] | ||||||||||||||
Net income | $ 33,746 | $ 16,126 | $ 28,469 | $ 27,219 | $ (41,456) | $ 10,879 | $ 29,138 | $ 24,820 | $ 105,560 | $ 23,381 | $ 56,002 | |||
Less: Net income allocated to participating securities | 0 | 74 | 1,382 | |||||||||||
Net income attributable to common stockholders | $ 105,560 | $ 23,307 | $ 54,620 | |||||||||||
Basic earnings per common share: | ||||||||||||||
Basic weighted average common shares outstanding (in shares) | 42,994 | 42,726 | 42,723 | 42,624 | 42,435 | 42,223 | 41,761 | 41,001 | 42,765 | 41,853 | 40,914 | |||
Basic earnings per common share (in dollars per share) | $ 0.78 | $ 0.38 | $ 0.67 | $ 0.64 | $ (0.98) | $ 0.26 | $ 0.70 | $ 0.60 | $ 2.47 | [1] | $ 0.56 | [1] | $ 1.33 | [1] |
Diluted earnings per common share: | ||||||||||||||
Basic weighted average common shares outstanding (in shares) | 42,994 | 42,726 | 42,723 | 42,624 | 42,435 | 42,223 | 41,761 | 41,001 | 42,765 | 41,853 | 40,914 | |||
Add: Common Stock Equivalents | 578 | 651 | 675 | |||||||||||
Diluted weighted average common shares outstanding (in shares) | 43,828 | 43,361 | 43,174 | 43,017 | 42,435 | 42,949 | 42,635 | 41,615 | 43,343 | 42,504 | 41,589 | |||
Diluted earnings per common share (in dollars per share) | $ 0.77 | $ 0.37 | $ 0.66 | $ 0.63 | $ (0.98) | $ 0.25 | $ 0.68 | $ 0.59 | $ 2.44 | [1] | $ 0.55 | [1] | $ 1.31 | [1] |
Shares were not included in the calculation of Diluted loss per common share | ||||||||||||||
Anti-dilutive shares (in shares) | 300 | 800 | 600 | |||||||||||
[1] | See Note 18 for detailed calculations. |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Allowance Rollforward | |||
Trade accounts and notes receivable | $ 558,661 | $ 440,926 | |
ASU 2014-09 | |||
Allowance Rollforward | |||
Trade accounts and notes receivable | $ (3,600) | ||
Allowances for Accounts Receivable | |||
Allowance Rollforward | |||
Balance at beginning of period | (5,141) | (6,432) | (9,633) |
Provision / Additions charged to costs and expenses | (1,774) | (2,348) | (1,064) |
Charged to other accounts | (477) | 938 | 2,435 |
Deductions | 1,110 | 2,701 | 1,830 |
Balance at end of period | (6,282) | (5,141) | (6,432) |
Valuation Allowance on Deferred Tax Assets | |||
Allowance Rollforward | |||
Balance at beginning of period | (10,183) | (1,112) | (448) |
Provision / Additions charged to costs and expenses | (1,585) | (9,071) | (664) |
Deductions | 0 | 0 | 0 |
Balance at end of period | $ (11,768) | $ (10,183) | $ (1,112) |
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, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Net sales | $ 932,203 | $ 751,191 | $ 812,856 | $ 802,573 | $ 770,850 | $ 761,352 | $ 861,929 | $ 847,176 | $ 3,298,823 | $ 3,241,307 | $ 3,116,032 | |||
Gross Profit | 293,850 | 243,324 | 265,071 | 260,458 | 251,594 | 253,473 | 284,493 | 273,654 | 1,062,703 | 1,063,214 | 1,004,119 | |||
Net income | $ 33,746 | $ 16,126 | $ 28,469 | $ 27,219 | $ (41,456) | $ 10,879 | $ 29,138 | $ 24,820 | $ 105,560 | $ 23,381 | $ 56,002 | |||
Weighted average shares outstanding: | ||||||||||||||
Basic (in shares) | 42,994 | 42,726 | 42,723 | 42,624 | 42,435 | 42,223 | 41,761 | 41,001 | 42,765 | 41,853 | 40,914 | |||
Diluted (in shares) | 43,828 | 43,361 | 43,174 | 43,017 | 42,435 | 42,949 | 42,635 | 41,615 | 43,343 | 42,504 | 41,589 | |||
Net income per share: | ||||||||||||||
Basic (in dollars per share) | $ 0.78 | $ 0.38 | $ 0.67 | $ 0.64 | $ (0.98) | $ 0.26 | $ 0.70 | $ 0.60 | $ 2.47 | [1] | $ 0.56 | [1] | $ 1.33 | [1] |
Diluted (in dollars per share) | $ 0.77 | $ 0.37 | $ 0.66 | $ 0.63 | $ (0.98) | $ 0.25 | $ 0.68 | $ 0.59 | $ 2.44 | [1] | $ 0.55 | [1] | $ 1.31 | [1] |
Impairment of goodwill | $ 63,100 | $ 0 | $ 63,074 | $ 0 | ||||||||||
Gain on legal settlement | $ 14,000 | $ 1,382 | $ 14,029 | $ 0 | ||||||||||
[1] | See Note 18 for detailed calculations. |
Subsequent Event (Details)
Subsequent Event (Details) - Westside Building Material - Forecast - Subsequent Event $ in Millions | 3 Months Ended |
Sep. 30, 2021USD ($)location | |
Subsequent Event [Line Items] | |
Cash consideration | $ | $ 135 |
Number of distribution network locations | 10 |
California | |
Subsequent Event [Line Items] | |
Number of distribution network locations | 9 |
Nevada | |
Subsequent Event [Line Items] | |
Number of distribution network locations | 1 |