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Equity-Based Compensation
 12 Months Ended
Apr. 30, 2022
Share-based Payment Arrangement [Abstract]  
Equity-Based Compensation Equity-Based Compensation
General
The Company has granted options and restricted stock units to employees and non-employee directors to purchase the Company’s common stock under various stock incentive plans. The plans are administered by a committee of the Board of Directors, which determines the terms of the awards granted. The committee may grant various forms of equity-based incentive compensation, including stock options, stock appreciation rights, restricted stock, restricted stock units and performance awards, among others. Stock options are granted with an exercise price equal to the closing market value of GMS common stock on the date of grant, have a term of ten years, and vest over terms of three to four years from the date of grant. Restricted stock units are granted with various vesting terms that range from one to three years from the date of grant. The Company’s current stock incentive plan provides for the issuance of a maximum of 2.4 million shares, of which 2.0 million shares were still available for grant as of April 30, 2022. The Company intends to use authorized and unissued shares to satisfy share award exercises.
Share-based compensation expense related to stock options and restricted stock units was $10.4 million, $7.9 million and $6.5 million during the years ended April 30, 2022, 2021 and 2020, respectively, and is included in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss).
Stock Option Awards
The following table presents stock option activity as of and for the year ended April 30, 2022:
Number of
Options		Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Life (years)		Aggregate
Intrinsic
Value
(shares and dollars in thousands)
Outstanding as of April 30, 20211,289 $20.86 6.8$29,465 
Options granted208 49.77 
Options exercised(222)20.02 
Options forfeited(30)29.24 
Outstanding as of April 30, 20221,245 $25.65 6.4$28,121 
Exercisable as of April 30, 2022732 $20.24 4.9$20,272 
Vested and expected to vest as of April 30, 20221,241 $25.61 6.4$28,086 
The aggregate intrinsic value represents the excess of the Company’s closing stock price on the last trading day of the period over the weighted average exercise price multiplied by the number of options outstanding, exercisable or expected to vest. Options expected to vest are unvested shares net of expected forfeitures. The total intrinsic value of options exercised during the years ended April 30, 2022, 2021 and 2020 was $7.5 million, $9.9 million and $11.5 million, respectively. As of April 30, 2022, there was $4.5 million of total unrecognized compensation cost related to stock options. That cost is expected to be recognized over a weighted-average period of 1.9 years.
The fair value of stock options granted during the years ended April 30, 2022, 2021 and 2020 was estimated using the Black-Scholes option-pricing model with the following assumptions and resulting weighted average grant date fair value:
Year Ended April 30,
202220212020
Volatility43.13 %51.28 %49.86 %
Expected life (years)6.06.06.0
Risk-free interest rate0.89 %0.30 %1.97 %
Dividend yield— %— %— %
Grant date fair value$20.86 $11.13 $10.59 
The expected volatility was based on historical and implied volatility. The expected life of stock options was based on previous history of exercises. The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the stock option. The expected dividend yield was 0% as we have not declared any common stock dividends to date and do not expect to declare common stock dividends in the near future. The fair value of the underlying common stock at the date of grant was determined based on the value of the Company’s closing stock price on the date of the grant.
Restricted Stock Units
The following table presents restricted stock unit activity for the year ended April 30, 2022:
Number of
Restricted
Stock Units		Weighted
Average
Exercise
Price
(shares in thousands)
Outstanding as of April 30, 2021361 $22.92 
Granted164 49.51 
Vested(182)23.14 
Forfeited(13)28.62 
Outstanding as of April 30, 2022330 $35.83 
As of April 30, 2022, there was $6.3 million of total unrecognized compensation cost related to nonvested restricted stock units. That cost is expected to be recognized over a weighted-average period of 1.9 years.
Employee Stock Purchase Plan
The Company has an employee stock purchase plan (“ESPP”) which allows for qualified employees (as defined) to participate in the purchase of shares of the Company’s common stock at a price equal to 90% of the lower of the closing price at the beginning or end of the last day of the purchase period, which is a six-month period ending on December 31 and June 30 of each year. The ESPP authorizes the issuance of a total 2.0 million shares, of which 1.6 million shares were still available for issuance as of April 30, 2022. The Company recognized $0.6 million, $0.5 million and $0.5 million of stock-based compensation expense in during the years ended April 30, 2022, 2021 and 2020, respectively, related to the ESPP.
The following table presents the number of shares of the Company’s common stock purchased under the ESPP and average price per share:
Year Ended April 30,
202220212020
(shares in thousands)
Number of shares purchased under the ESPP
7095115
Average purchase price$33.19 $21.78 $15.62