The initial public offering of at last 7 million shares priced at $21 to $23 apiece will take place around May 25, according to the New York Stock Exchange's IPO filings list. Another 1.05 million shares could be made available over the succeeding 30 days if demand warrants, the Tucker, Ga.-based firm said in a filing with the federal Securities and Exchange Commission (SEC).
GMS has been owned since April 2014 by affiliates of AEA Investors LP. Since then the firm--which operates across most of the country under 45 local names--has gone on a buying and expansion spree in an intent to provide total coast-to-coast service. It describes itself as North America's leading distributor of wallboard and suspended ceiling systems, holding 13% market share in the first category and 14% in the second. It says it now has 185 branches in 41 states. (See map at bottom of story, taken from its latest SEC filing.)
GMS said it expected to report net sales of about $1.85 billion to $1.86 billion in its fiscal year ended April 30, an 18% gain from the previous fiscal year's $1.57 billion. Such numbers would have put it around 7th or 8th on the 2016 ProSales 100--just behind No. 6 Allied Building Products and just ahead of No. 9 L&W Supply, two dealers that sell lots of drywall.
GMS also said it expects its income to swing from a $13.8 million loss in the year ended April 30, 2015, to a net profit of $10.4 million to $13.9 million in its 2016 fiscal year. Like many companies, GMS prefers to view its results in terms of adjusted EBITDA--earnings before interest, taxes, depreciation, amortization, and certain other costs. By that metric, it expects adjusted EBITDA to grow to between $143.7 million and $156.7 million in the fiscal year ended April 30 compared with the $113.9 million it posted a year earlier.
GMS gave first notice of its intentions to go public nearly a year ago, last July 28, when it filed an initial registration statement with the SEC. It has updated that statement several times since then, most recently on May 16 when it revealed how many shares it would sell and that they'd be traded on the New York Stock Exchange, but it didn't say when.
Accordiing to its SEC filing, GMS in fiscal 2015 sold $718.1 million worth of wallboard, $278.7 million worth of ceilings, $243.2 million worth of steel framing, and $330.1 million worth of other products. It claims roughly 20,000 customers.