Specialty building products distributor Gypsum Management & Supply (GMS) reported net sales increased 38.2% on a year-over-year basis to $1.3 billion in the company’s fiscal fourth quarter. The company reported organic net sales increased 28.9% compared to the fiscal fourth quarter of 2021. For the full fiscal year, net sales increased 40.5% from 2021 to $4.6 billion in 2022, with organic net sales increasing 30.9% YOY.

The distributor attributed the YOY growth in the fiscal fourth quarter to inflationary pricing, healthy residential end market demand, strong performance in the company’s complementary products category, and the acquisitions of Westside Building Material and AMES Taping Tools. In the fourth quarter, wallboard sales increased 30.3% YOY to $491.1 million, ceilings sales increased 22.7% YOY to $148.9 million, steel framing sales increased 93.3% YOY to $276.9 million, and complementary product sales increased 27.9% to $371.8 million.

“GMS achieved outstanding results for the fourth quarter and full year fiscal 2022,” John Turner, president and CEO of GMS, said in a prepared statement. “Our scale, balanced mix of products and customers, commitment to delivering best-in-class service, and continued execution of our growth strategy, coupled with strong residential demand and an inflationary pricing environment, enabled us to deliver record levels of net sales, net income, and adjusted EBITDA.”

GMS reported its net income in the fiscal fourth quarter of $76.5 million was more than double net income in the prior year period. The company reported gross profit increased 40.5% YOY in the fourth quarter to $412.8 million and gross margin improved 50 basis points to 32.0%. GMS said gross profit and gross margin benefited from the successful pass through of product price inflation, continued strength in residential market demand, and incremental gross profit bollards along with accretive gross margins from acquisitions.

For the full fiscal year, net income increased from $105.6 million in 2021 to $273.4 million in 2022.

Adjusted EBITDA increased $63.0 million to $154.2 million in the fiscal fourth quarter, with adjusted EBITDA margin improving 220 basis points YOY. For the full fiscal year, adjusted EBITDA increased $247.6 million to $566.9 million and adjusted EBITDA margin improved 250 basis points to 12.2%.

During the full fiscal year, GMS completed five business acquisitions, including the acquisition of Westside Building Material and AMES Taping Tools, opened 13 greenfield locations, and five AMES store locations under GMS ownership.

“We are also very pleased to announce that our board of directors has approved the repurchase of up to $200 million of the company’s common stock,” Turner said. “This expanded authorization demonstrates our board’s continued confidence in the strength and future prospects of our business. We remain focused on the execution of our strategic priorities, including expanding our platform through both acquisitions and greenfield opportunities, as well as enhancing our product and service offerings and delivering improved profitability as we leverage technology and best practices to achieve advancements in productivity.

GMS operates a network of nearly 300 distribution centers with product offerings of wallboard, ceilings, steel framing, and complementary construction products. The company also operates nearly 100 tool sales, rental, and service centers across the United States.