GMS Inc. (NYSE:GMS) Q1 2021 Earnings Conference Call - Final Transcript
Sep 03, 2020 • 08:30 am ET
Greetings and welcome to the GMS Inc. First Quarter Fiscal 2021 Earnings Conference Call. [Operator Instructions]
It is now my pleasure to introduce your host, Leslie Kratcoski, Vice President of Investor Relations. Thank you. You may begin.
Leslie H. Kratcoski
Thanks, Daryll. Good morning and thank you for joining us for the GMS earnings conference call for the first quarter of fiscal 2021. I'm joined today by John Turner, President and CEO; and Scott Deakin, Vice President and CFO. In addition to the press release issued this morning, we posted presentation slides to accompany this in the Investors section of our website at gms.com.
On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address matters that are subject to risks and uncertainties, many of which are beyond our control and may cause actual results to differ from those discussed today. As a reminder, forward-looking statements represent management's current estimates and expectations. The Company assumes no obligation to update any forward-looking statements in the future. Listeners are encouraged to review the more detailed discussions related to these forward-looking statements contained in the Company's filings with the SEC, including the Risk Factors section in the Company's 10-K and other periodic reports.
Today's presentation also includes a discussion of certain non-GAAP measures. The definitions and reconciliations of these non-GAAP measures are provided in the press release and presentation slides. Please note that references on this call to the first quarter of fiscal 2021 relate to the quarter ended July 31, 2020. Finally, once we begin the question-and-answer session of the call, in the interest of time, we kindly request that you limit yourself to one question and one follow-up.
With that, I will now turn the call over to John Turner. J.T.?
John C. Turner
Thank you, Leslie. Good morning and thank you for joining us today. I'd like to open by saying that all of us at GMS hope everyone joining this call as well as your families and colleagues are safe and well. I'll start with a review of our operating highlights and then turn it over to Scott, who will cover our financial results. I'll then share some closing thoughts before taking your questions.
If you turn to slide 3, our first quarter results reflect outstanding execution by our entire team against the backdrop of a business environment that clearly demand, excuse me, that clearly remains challenging throughout the period. As a result of the economic impacts arising from the COVID-19 pandemic, net sales and organic net sales declined 5.3% and 5.7% respectively. Despite the lower sales, we generated higher net income and higher adjusted net income. Furthermore, we improved both gross and adjusted EBITDA margins by 20 basis points and 40 basis points respectively. These improvements were the direct result of the rapid alignment of our cost structure to current demand, our balanced product and market mix which has been strengthened through the execution of our growth