Segments

12 Months Ended

Apr. 30, 2022

Segment Reporting [Abstract]

Segments

Segments

General

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 has nine operating segments based on the Company’s eight geographic divisions, which are Central, Midwest, Northeast, Southern, Southeast, Southwest, Western and Canada, and Ames. The Company aggregates its eight geographic divisions operating segments into one 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, and Ames.

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, 2022								April 30, 2022
	Net Sales		Gross Profit		Depreciation and Amortization		Adjusted EBITDA		Total Assets
	(in thousands)
Geographic divisions	$	4,559,477	$	1,451,748	$	111,452	$	551,200	$	2,809,394
Other	75,398		36,527		6,120		15,721		290,341
Corporate	—		—		1,660		—		4,664
	$	4,634,875	$	1,488,275	$	119,232	$	566,921	$	3,104,399

	Year Ended April 30, 2021								April 30, 2021
	Net Sales		Gross Profit		Depreciation and Amortization		Adjusted EBITDA		Total Assets
	(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  Amortization		Adjusted EBITDA		Total Assets
	(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

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

	Year Ended April 30,
	2022		2021		2020
	(in thousands)
Net income	$	273,442	$	105,560	$	23,381
Interest expense	58,097		53,786		67,718
Write-off of debt discount and deferred financing fees	—		4,606		1,331
Interest income	(163)		(86)		(88)
Provision for income taxes	91,377		31,534		22,944
Depreciation expense	55,437		50,480		51,332
Amortization expense	63,795		57,645		65,201
Impairment of goodwill	—		—		63,074
Stock appreciation expense(a)	4,403		3,173		1,572
Redeemable noncontrolling interests(b)	1,983		1,288		520
Equity-based compensation(c)	10,968		8,442		7,060
Severance and other permitted costs(d)	1,132		2,948		5,733
Transaction costs (acquisitions and other)(e)	3,545		1,068		2,414
(Gain) loss on disposal and impairment of assets(f)	(913)		(1,011)		658
Effects of fair value adjustments to inventory(g)	3,818		788		575
Gain on legal settlement	—		(1,382)		(14,029)
Secondary public offering costs(h)	—		—		363
Debt transaction costs(i)	—		532		—
Adjusted EBITDA	$	566,921	$	319,371	$	299,759

__________________________________________

(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 acquisition accounting adjustments to increase inventory to its estimated fair value.

(h)Represents costs paid to third-party advisors related to secondary offerings of our common stock.

(i)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,
	2022		2021		2020
	(in thousands)
Wallboard	$	1,710,851	$	1,346,648	$	1,329,775
Ceilings	567,700		451,766		475,827
Steel framing	1,027,941		469,048		502,122
Complementary products	1,328,383		1,031,361		933,583
Total net sales	$	4,634,875	$	3,298,823	$	3,241,307

Geographic Information

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

	Year Ended April 30,
	2022		2021		2020
	(in thousands)
United States	$	3,993,717	$	2,770,450	$	2,805,920
Canada	641,158		528,373		435,387
Total net sales	$	4,634,875	$	3,298,823	$	3,241,307

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

	April 30, 2022		April 30, 2021
	(in thousands)
United States	$	311,061	$	271,346
Canada	39,618		39,980
Total property and equipment, net	$	350,679	$	311,326