Gypsum industry news

US: GMS’s consolidates sales were US$2.19bn in the first half of 2021, up by 36% year-on-year from US$1.62bn in the first half of 2020. Its gypsum wallboard sales constituted 37% of its total sales at US$805m, up by 22% from US$659m. The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 70% to US$265m from US$156m, while its gross profit rose by 35% to US$708m from US$526m.

President and chief executive officer John Turner said “Net sales again topped US$1bn, with record levels of net income and adjusted EBITDA. Supply chain dynamics have led to all-time high levels of product inflation, which have been the principal driver of both sales growth and incremental profitability. He added “That said, our relentless focus on customer service and the solid execution of our strategic priorities have enabled us to capture the benefits of both this heightened product inflation across our portfolio as well as continued strength in the residential market.”

Turner concluded “While commercial activity remains well below pre-Covid levels, we were pleased to see certain commercial projects that were previously on hold receive approvals to move forward. With other positive signs also emerging, we believe that we are very well positioned as we head into the next calendar year to benefit from an eventual commercial construction recovery.”

US: GMS has completed its acquisition of interior building products distributor Westside Building Material. The group says that it funded the US$135m deal with cash-on-hand and available borrowings on its revolving credit facility.

President and chief executive officer John Turner said, “Building on the momentum of our very solid fourth quarter 2021 earnings report, we are pleased to announce the successful completion of this transaction and welcome the Westside team to GMS. Westside significantly increases our reach in several major California markets and represents our first foray into the Las Vegas market. Expanding our geographic platform through accretive acquisitions such as this one continues to be a vital component of our strategic growth priorities.”

US: GMS has agreed to acquire gypsum wallboard retailer Westside Building Material for US$135m. The trader operates nine sites across California and Nevada. The producer says that the company’s current management will continue to lead the business.

President and chief executive officer John Turner said, “The acquisition of Westside reflects the continued execution of our growth strategy and brings together two leading organisations with shared cultures and entrepreneurial values. Westside’s differentiated platform provides a unique opportunity for GMS to expand our reach and capture significant growth opportunities in strategically important West Coast markets.” He added “We believe that through this combination we will create new opportunities to deliver world-class service to our customers and value to our stakeholders for years to come.”

US: GMS recorded consolidated net sales of US$2.47bn in the first nine months of its 2021 financial year that ended on 31 January 2021, up by 4% year-on-year from US$2.37bn in the corresponding period of 2019. Costs of sales fell by 4% to US$1.60bn from US$1.66bn. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) fell slightly in the third quarter of the 2021 financial year to US$62.6m from US$62.7m in the third quarter of the 2020 financial year. Third-quarter wallboard volumes grew by under 1% and wallboard prices fell by 2%, resulting in a 1% sales decline.

President and chief executive officer John Turner said, “As a result of our team’s ability to seize opportunities and address challenges in dynamic market conditions, we delivered better than expected sales, higher net income and an improved adjusted EBITDA margin in the third quarter of the 2021 financial year. We continued to realise benefits from our on-going commitment to our strategic priorities: expanding share in core products, growing our complementary other products offering, platform expansion and improved productivity and profitability. During the quarter, we generated higher volume in wallboard, increased sales of complementary products and opened our Waco, Texas greenfield location.” He added, “We are excited to be celebrating GMS’s 50th anniversary in 2021, and I am confident that our focus on our strategic priorities and our team’s continued drive to execute will position us to generate value for our shareholders well into the future.”

Canada: US-based GMS has acquired DL Building Materials. The company distributes gypsum wallboard and other building products to western Quebec and eastern Ontario via two locations in Gatineau, Quebec, and Kingston, Ontario. Founder Richard Davis, general manager Shana Davis and the existing DL management will continue to lead the business. The acquired locations will continue to operate under the DL brand. No value for the acquisition has been disclosed.

US: GMS’ net sales from its wallboard products rose by 5% year-on-year to US$1.33bn in the financial year to 30 April 2020 from US$1.27bn in the same period in 2019. Its overall sales grew by 4% to US$3.24bn from US$3.12bn. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased slightly to US$300m. Wallboard sales were stable in the fourth quarter of its reporting year as coronavrius-related market declines in late March and April 2020 caused total company sales to decrease in the period.

“Through mid-March 2020 we experienced favourable end-market trends and generated robust volume growth. Even as disruptions from COVID-19 began to escalate in the second half of March 2020, construction and building products distribution were deemed essential in the majority of our markets, which enabled us to keep most of our locations open. However, demand weakened significantly in late March 2020 and in April 2020 as customers delayed orders and building projects were paused due to mandated shutdowns in certain markets or as they focused on responding to the effects of COVID-19 on their businesses,” said John C Turner, Jr, president and chief executive officer of GMS.

US: GMS has reported a net profit over the three months to 31 January 2020, the third quarter of its 2020 fiscal year, of US$10.9m, up by 87% from US$5.83m in the corresponding quarter of its 2019 fiscal year. Its net sales over the period rose by 5.2% year-on-year to US$761m from US$724m. The company’s gypsum wallboard sales reached US$314m, up by 5.7% from US$297m in the third quarter of the 2019 fiscal year.

US: Gypsum products distributor GMS has appointed Teri P McClure as an independent member of its board of directors. McClure is currently Chief Human Resources Officer and Senior Vice President, Labor at United Parcel Service (UPS). She is also a member of the Management Committee, which is responsible for setting strategy, profit and operating plans for UPS.

McClure joined UPS in 1995 and has served in various legal and operations positions, including Senior Vice President of Legal, Compliance and Public Affairs, General Counsel and Corporate Secretary from 2006 until assuming her current position in 2015. Prior to joining UPS, McClure practiced law with the Troutman Sanders law firm in Atlanta. She also serves on the Board of Directors for Lennar Corporation, Heart for Africa and The Task Force for Global Health.

US: GMS’s half-year wallboard sales have risen due to its acquisition of Canada’s Titan on 1 June 2018 and rising prices. Its wallboard sales rose by 14% year-on-year to US$652m in the half year to 31 October 2018, from US$573m in the same period in 2017. Overall, the wallboard distributor’s net sales increased by 25% to US$1.61bn.

US: The gypsum wallboard and suspended ceilings distributor GMS Inc. has acquired substantially all of the operating assets of Pennsylvania, US-based Washington Builder’s Supply Company (WBS) to expand footprint in Western Pennsylvania, according to a company release. Terms of the transaction were not disclosed.

WBS will join Ohio Valley Drywall Supply, a GMS company acquired in 2015, which serves residential and commercial customers in Pittsburgh and the surrounding areas.

WBS and Ohio Valley will stock a wide variety of products including wallboard, steel, insulation and construction accessories, along with a full range of commercial and residential services, such as after-hours and weekend delivery as needed.

GMS operates a network of more than 210 distribution centres across the United States. The company’s product offerings include wallboard, suspended ceilings systems and complementary interior construction materials.