XML 39 R23.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Segments
 12 Months Ended
Apr. 30, 2024
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 ten operating segments based on the Company’s nine geographic divisions, which are Central, Midwest, New York, Northeast, Southern, Southeast, Southwest, Western and Canada, and Ames. The acquisition of Kamco resulted in a new operating segment, New York. The Company aggregates its nine 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, 2024April 30, 2024
Net SalesGross ProfitDepreciation and
Amortization		Adjusted
EBITDA		Total
Assets
(in thousands)
Geographic divisions$5,374,474 $1,708,593 $118,548 $598,540 $3,449,392 
Other127,433 66,508 14,481 16,914 307,011 
Corporate— — 333 — 3,437 
$5,501,907 $1,775,101 $133,362 $615,454 $3,759,840 
Year Ended April 30, 2023April 30, 2023
Net SalesGross ProfitDepreciation and
Amortization		Adjusted
EBITDA		Total
Assets
(in thousands)
Geographic divisions$5,200,268 $1,651,579 $109,872 $635,415 $2,954,222 
Other128,984 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, 2022April 30, 2022
Net SalesGross ProfitDepreciation and
 Amortization		Adjusted
EBITDA		Total
Assets
(in thousands)
Geographic divisions$4,559,477 $1,451,748 $111,452 $551,200 $2,809,394 
Other75,398 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 
The following table presents a reconciliation of Adjusted EBITDA to net income:
Year Ended April 30,
202420232022
(in thousands)
Net income$276,079 $332,991 $273,442 
Interest expense75,461 65,843 58,097 
Write-off of debt discount and deferred financing fees2,075 — — 
Interest income(1,754)(1,287)(163)
Provision for income taxes98,087 114,512 91,377 
Depreciation expense69,206 61,177 55,437 
Amortization expense64,156 65,730 63,795 
Stock appreciation expense(a)5,391 7,703 4,403 
Redeemable noncontrolling interests and deferred compensation(b)1,427 1,178 1,983 
Equity-based compensation(c)15,618 13,217 10,968 
Severance and other permitted costs(d)2,628 2,788 1,132 
Transaction costs (acquisitions and other)(e)4,856 1,961 3,545 
Gain on disposal of assets(f)(729)(1,413)(913)
Effects of fair value adjustments to inventory(g)1,633 1,123 3,818 
Debt transaction costs(h)1,320 173 — 
Adjusted EBITDA$615,454 $665,696 $566,921 
__________________________________________
(a)Represents changes in the fair value of stock appreciation rights.
(b)Represents changes in the fair values of noncontrolling interests and deferred compensation agreements.
(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,
202420232022
(in thousands)
Wallboard$2,263,337 $2,151,505 $1,710,851 
Complementary products1,650,689 1,537,617 1,328,383 
Steel framing892,730 1,011,309 1,027,941 
Ceilings695,151 628,821 567,700 
Total net sales$5,501,907 $5,329,252 $4,634,875 
The following table presents additional detail on the Company’s net sales of complementary products:
Year Ended April 30,
202420232022
(in thousands)
Tools and fasteners$346,482 $319,466 $239,069 
Insulation320,209 293,755 254,374 
Joint treatment265,086 240,988 200,080 
Lumber151,457 147,507 176,994 
EIFS/stucco178,948 145,517 113,886 
Other388,507 390,384 343,980 
Complementary products$1,650,689 $1,537,617 $1,328,383 
Geographic Information
The following table presents the Company’s net sales by major geographic area:
Year Ended April 30,
202420232022
(in thousands)
United States$4,815,044 $4,676,558 $3,993,717 
Canada686,863 652,694 641,158 
Total net sales$5,501,907 $5,329,252 $4,634,875 
The following table presents the Company’s property and equipment by major geographic area:
April 30,
2024		April 30,
2023
(in thousands)
United States$425,429 $354,652 
Canada46,828 41,767 
Total property and equipment, net$472,257 $396,419