Segments

12 Months Ended

Apr. 30, 2023

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”) 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, 2023								April 30, 2023
	Net Sales		Gross Profit		Depreciation and Amortization		Adjusted EBITDA		Total Assets
	(in thousands)
Geographic divisions	$	5,200,268	$	1,651,579	$	109,872	$	635,415	$	2,954,222
Other	128,984		74,366		16,637		30,281		309,090
Corporate	—		—		398		—		3,696
	$	5,329,252	$	1,725,945	$	126,907	$	665,696	$	3,267,008

	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

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

	Year Ended April 30,
	2023		2022		2021
	(in thousands)
Net income	$	332,991	$	273,442	$	105,560
Interest expense	65,843		58,097		53,786
Write-off of debt discount and deferred financing fees	—		—		4,606
Interest income	(1,287)		(163)		(86)
Provision for income taxes	114,512		91,377		31,534
Depreciation expense	61,177		55,437		50,480
Amortization expense	65,730		63,795		57,645
Stock appreciation expense(a)	7,703		4,403		3,173
Redeemable noncontrolling interests(b)	1,178		1,983		1,288
Equity-based compensation(c)	13,217		10,968		8,442
Severance and other permitted costs(d)	2,788		1,132		2,948
Transaction costs (acquisitions and other)(e)	1,961		3,545		1,068
Gain on disposal of assets(f)	(1,413)		(913)		(1,011)
Effects of fair value adjustments to inventory(g)	1,123		3,818		788
Gain on legal settlement	—		—		(1,382)
Debt transaction costs(h)	173		—		532
Adjusted EBITDA	$	665,696	$	566,921	$	319,371

__________________________________________

(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.

(e)Represents costs related to acquisitions paid to third parties.

(f)Includes gains and losses from the sale and disposal of assets.

(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 debt refinancing activities.

Revenues by Product

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

	Year Ended April 30,
	2023		2022		2021
	(in thousands)
Wallboard	$	2,151,505	$	1,710,851	$	1,346,648
Complementary products	1,537,617		1,328,383		1,031,361
Steel framing	1,011,309		1,027,941		469,048
Ceilings	628,821		567,700		451,766
Total net sales	$	5,329,252	$	4,634,875	$	3,298,823

The following table presents additional detail on the Company’s net sales of complementary products:

	Year Ended April 30,
	2023		2022		2021
	(in thousands)
Tools and fasteners	$	319,466	$	239,069	$	167,914
Insulation	293,755		254,374		221,598
Joint treatment	240,988		200,080		162,925
Lumber	147,507		176,994		138,333
EIFS/stucco	145,517		113,886		78,941
Other	390,384		343,980		261,650
Complementary products	$	1,537,617	$	1,328,383	$	1,031,361

Geographic Information

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

	Year Ended April 30,
	2023		2022		2021
	(in thousands)
United States	$	4,676,558	$	3,993,717	$	2,770,450
Canada	652,694		641,158		528,373
Total net sales	$	5,329,252	$	4,634,875	$	3,298,823

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

	April 30, 2023		April 30, 2022
	(in thousands)
United States	$	354,652	$	311,061
Canada	41,767		39,618
Total property and equipment, net	$	396,419	$	350,679