Transactions With Related Parties

12 Months Ended

Apr. 30, 2018

Transactions With Related Parties

Transactions With Related Parties

13. Transactions With Related Parties

The Company leases warehouse facilities from partnerships owned by certain stockholders of GMS Inc. and its subsidiaries. As of April 30, 2018, these leases had expiration dates through fiscal 2025. Rent expense related to these leases was $0.8 million, $0.8 million and $0.6 million during the years ended April 30, 2018, 2017 and 2016, respectively, and are included in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income. As of April 30, 2018, future minimum payments under the terms of the leases aggregated to $2.0 million.

The Company purchases inventories from Southern Wall Products, Inc. (“SWP”) on a continuing basis. Certain stockholders of the Company are stockholders of SWP. The Company purchased inventory from SWP for distribution in the amount of $14.0 million $13.0 million and $12.8 million during the years ended April 30, 2018, 2017 and 2016, respectively. Amounts due to SWP for purchases of inventory for distribution as of April 30, 2018 and 2017 were $1.2 million and $1.1 million, respectively, and are included in accounts payable in the Consolidated Balance Sheets.

In connection with the IPO, the Company terminated its management agreement with AEA. The agreement required the Company to pay AEA an annual management fee of $2.3 million per year following the Acquisition for advisory and consulting services. The fee was payable in quarterly installments of $0.6 million in advance of the upcoming calendar quarter on the first day, and is included in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income.