Segments

9 Months Ended

Jan. 31, 2022

Segment Reporting [Abstract]

Segments

Segments

There have been no changes to the Company's reportable segments during the nine months ended January 31, 2022. Westside is included in Geographic divisions and Ames is included in Other. For more information regarding the Company's reportable segments, see Note 17, "Segments," in the Company's Annual Report on Form 10-K for the year ended April 30, 2021.

Segment Results

The following tables present segment results:

	Three Months Ended January 31, 2022
	Net Sales		Gross Profit		Depreciation and Amortization		Adjusted EBITDA
	(in thousands)
Geographic divisions	$	1,130,130	$	356,811	$	28,154	$	129,725
Other	23,465		10,961		1,102		5,330
Corporate	—		—		494		—
	$	1,153,595	$	367,772	$	29,750	$	135,055

	Three Months Ended January 31, 2021
	Net Sales		Gross Profit		Depreciation and Amortization		Adjusted EBITDA
	(in thousands)
Geographic divisions	$	741,885	$	240,536	$	24,942	$	61,916
Other	9,306		2,788		92		671
Corporate	—		—		528		—
	$	751,191	$	243,324	$	25,562	$	62,587

	Nine Months Ended January 31, 2022
	Net Sales		Gross Profit		Depreciation and Amortization		Adjusted EBITDA
	(in thousands)
Geographic divisions	$	3,303,170	$	1,057,417	$	84,572	$	404,665
Other	43,052		18,058		1,278		8,008
Corporate	—		—		1,017		—
	$	3,346,222	$	1,075,475	$	86,867	$	412,673

	Nine Months Ended January 31, 2021
	Net Sales		Gross Profit		Depreciation and Amortization		Adjusted EBITDA
	(in thousands)
Geographic divisions	$	2,341,430	$	760,908	$	78,507	$	226,588
Other	25,190		7,945		274		1,575
Corporate	—		—		1,123		—
	$	2,366,620	$	768,853	$	79,904	$	228,163

The following table presents a reconciliation of Adjusted EBITDA to net income:

	Three Months Ended January 31,				Nine Months Ended January 31,
	2022		2021		2022		2021
	(in thousands)
Net income	$	61,383	$	16,126	$	196,946	$	71,814
Interest expense	15,429		13,454		43,830		41,060
Interest income	(40)		(6)		(67)		(57)
Provision for income taxes	21,211		5,709		64,951		23,590
Depreciation expense	13,816		11,371		40,444		36,908
Amortization expense	15,934		14,191		46,423		42,996
Stock appreciation rights(a)	1,251		1,446		3,126		2,552
Redeemable noncontrolling interests(b)	182		624		1,085		1,062
Equity-based compensation(c)	3,077		1,877		8,250		6,734
Severance and other permitted costs(d)	273		(83)		669		2,626
Transaction costs (acquisitions and other)(e)	921		664		3,889		789
Gain on disposal of assets(f)	(252)		(1,404)		(474)		(529)
Effects of fair value adjustments to inventory(g)	1,870		—		3,601		—
Gain on legal settlement	—		(1,382)		—		(1,382)
Adjusted EBITDA	$	135,055	$	62,587	$	412,673	$	228,163

__________________________________________

(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.

(g)Represents the non-cash cost of sales impact of acquisition accounting adjustments to increase inventory to its estimated fair value.

Revenues by Product

The following table presents the Company’s net sales to external customers by main product lines:

	Three Months Ended January 31,				Nine Months Ended January 31,
	2022		2021		2022		2021
	(in thousands)
Wallboard	$	415,132	$	311,122	$	1,219,789	$	969,722
Ceilings	139,894		103,711		418,831		330,480
Steel framing	282,764		103,957		751,040		325,782
Complementary products	315,805		232,401		956,562		740,636
Total net sales	$	1,153,595	$	751,191	$	3,346,222	$	2,366,620

Geographic Information

The following table presents the Company’s net sales by major geographic area:

	Three Months Ended January 31,				Nine Months Ended January 31,
	2022		2021		2022		2021
	(in thousands)
United States	$	1,016,425	$	637,568	$	2,867,318	$	2,001,020
Canada	137,170		113,623		478,904		365,600
Total net sales	$	1,153,595	$	751,191	$	3,346,222	$	2,366,620

The following table presents the Company’s property and equipment, net, by major geographic area:

	January 31, 2022		April 30, 2021
	(in thousands)
United States	$	302,420	$	271,346
Canada	40,575		39,980
Total property and equipment, net	$	342,995	$	311,326