Segments

12 Months Ended

Apr. 30, 2017

Segments

Segments

15. Segments

         The Company applies the provisions of ASC Topic 280, "Segment Reporting." ASC 280, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products, major customers and the geographies in which the entity holds material assets and reports revenue. An operating segment is defined as a component that engages in business activities whose operating results are reviewed by the chief operating decision maker ("CODM") and for which discrete financial information is available. For purposes of evaluation under these segment reporting principles, the CODM assesses the Company's ongoing performance based on the periodic review of net sales, Adjusted EBITDA and certain other measures for each of the operating segments. Based on the provisions of ASC 280, the Company has determined that it has seven operating segments. These operating segments are based on the seven geographic divisions, which are Central, Midwest, Northeast, Southern, Southeast, Southwest and Western. Prior to May 1, 2016, we had six operating segments, Central, Northeast, Southern, Southeast, Southwest and Western. On May 1, 2016, in connection with a reorganization of our geographic regional reporting lines, we created a new operating segment for the Midwest region, which was part of the Central reporting unit. In accordance with ASC 350, we allocated goodwill and indefinite lived intangibles of $50,973 and $5,995, respectively to the newly created operating segment (which is also the reporting unit) based on the estimated fair value of the unit.

         Due to similarities between the geographic operating segments, we have aggregated them into one reportable segment in accordance with ASC 280. The accounting policies of the operating segments are the same as those described in the summary of significant policies. In addition to our reportable segment, the Company's consolidated results include corporate activities, which includes our corporate office building and related yard support activities and Tool Source Warehouse, Inc., which functions primarily as an internal distributor of tools.

	Year Ended April 30, 2017
									April 30, 2017
	Net sales		Gross profit		Depreciation & amortization		Adjusted EBITDA
									Total assets
Geographic divisions	$	2,298,871	$	750,564	$	68,001	$	186,155	$	1,376,655
Other		20,275		8,007		310		2,074		11,916
Corporate		—		—		929		—		4,694
	$	2,319,146	$	758,571	$	69,240	$	188,229	$	1,393,265

	Year Ended April 30, 2016
									April 30, 2016
	Net sales		Gross profit		Depreciation & amortization		Adjusted EBITDA
									Total assets
Geographic divisions	$	1,842,634	$	587,213	$	63,093	$	137,459	$	1,217,871
Other		15,548		5,951		295		724		12,310
Corporate		—		—		827		—		10,633
	$	1,858,182	$	593,164	$	64,215	$	138,183	$	1,240,814

	Year Ended April 30, 2015
									April 30, 2015
	Net sales		Gross profit		Depreciation & amortization		Adjusted EBITDA
									Total assets
Geographic divisions	$	1,558,209	$	474,363	$	63,136	$	105,247	$	1,143,637
Other		11,876		4,608		288		549		10,421
Corporate		—		—		741		—		6,918
	$	1,570,085	$	478,971	$	64,165	$	105,796	$	1,160,976

         Reconciliation to Consolidated Financial Statements:

	Years Ended April 30,
	2017			2016			2015
	(dollars in thousands)
Net income (loss)	$	48,886		$	12,564		$	(11,697	)
Interest expense		36,463			37,418			36,396
Interest income		(152	)		(928	)		(1,010	)
Income tax expense (benefit)		22,654			12,584			(6,626	)
Depreciation expense		25,565			26,667			32,208
Amortization expense		43,675			37,548			31,957
EBITDA	$	177,091		$	125,853		$	81,228
Stock appreciation income or (expense)	$	148		$	1,988		$	2,268
Redeemable noncontrolling interests		3,536			880			1,859
Equity-based compensation		2,534			2,699			6,455
Severance and other permitted costs		(157	)		379			413
Transaction costs (acquisitions and other)		2,249			3,751			2,728
(Gain) loss on disposal of assets		(338	)		(645	)		1,089
Management fee to related party		188			2,250			2,250
Effects of fair value adjustments to inventory		946			1,009			5,012
Interest rate cap mark-to-market		382			19			2,494
Secondary public offering costs		1,385			—			—
Debt transaction costs		265			—			—
EBITDA add-backs		11,138			12,330			24,568
Adjusted EBITDA	$	188,229		$	138,183		$	105,796

         The Company does not earn revenues or have long-lived assets located in foreign countries. In accordance with the enterprise-wide disclosure requirements of ASC 280, the Company's net sales from external customers by main product lines are as follows as of April 30, 2017, 2016, and 2015, respectively:

	Years Ended April 30,
	2017		2016		2015
	(dollars in thousands)
Wallboard	$	1,058,400	$	870,952	$	718,102
Ceilings		341,007		297,110		278,749
Steel framing		374,151		281,340		243,173
Other products		545,588		408,780		330,061
Total net sales	$	2,319,146	$	1,858,182	$	1,570,085