Installed Building Products, Inc. (the "Company" or "IBP")
(NYSE: IBP), an industry-leading installer of insulation and
complementary building products, today announced results for the
second quarter ended June 30, 2023.
Second Quarter 2023 Highlights (Comparisons are to Prior Year
Period)
- Net revenue increased 2.3% to a second quarter record of $692.1
million
- Installation revenue increased 2.2% to $651.9 million, driven
by IBP’s multi-family and commercial new construction end markets
and acquisitions
- Other revenue, which includes IBP’s manufacturing and
distribution operations, increased from $38.8 million to $40.2
million, driven entirely by same branch sales growth
- Net income increased 2.8% to a second quarter record of $61.6
million
- Adjusted EBITDA* increased to a record $122.2 million
- Net income per diluted share increased 5.3% to a second quarter
record of $2.18
- Adjusted net income per diluted share* increased 5.6% to a
record of $2.62
- At June 30, 2023, IBP had $255.2 million in cash and cash
equivalents
- Declared second quarter dividend of $0.33 per share which was
paid to shareholders on June 30, 2023
- Marchelle E. Moore elected as an independent director to the
Company’s Board of Directors
Recent Developments
- IBP’s Board of Directors declared the third quarter regular
cash dividend of $0.33 per share
“During the second quarter we remained focused on prioritizing
profitability over volume while maintaining a high level of
installation service for our customers across the country. Despite
softer volume trends in our single-family end market, the effort of
our employees in the field across end markets translated into
record second-quarter revenue, net income, and earnings per share.
In addition, we generated $64.3 million in operating cash flow
during the second quarter, which given our asset-light business
model, further contributed to our financial flexibility,” stated
Jeff Edwards, Chairman and Chief Executive Officer.
Mr. Edwards continued, “The ongoing strength in our multifamily
business, which increased 38.3% on a same branch basis during the
second quarter helped offset softer single-family sales. In
addition, we continued to experience both sequential and
year-over-year improvements in our commercial sales. Our diverse
end market mix has been supportive of our sales during the second
quarter as fewer installation jobs in our single-family end market
than the prior year period were partially offset by commercial and
multi-family sales growth. While we expect cyclicality to continue
in the housing industry, we believe the long-term opportunities in
our residential and commercial end markets are favorable.”
“Overall, residential housing construction activity remains
resilient as stable employment and relatively low existing home
inventory levels continue to support demand for residential new
construction activity,” concluded Mr. Edwards.
Acquisition Update
IBP continues to prioritize profitable growth through its proven
strategy of acquiring well-run installers of insulation and
complementary building products. To date in 2023, IBP has acquired
approximately $48 million of annual revenue and expects to acquire
at least $100 million of revenue for the full year.
During the 2023 second quarter, IBP completed the following
acquisitions:
- In April 2023, IBP acquired Insulco Insulation, LLC., a
Florida-based installer of fiberglass and spray foam insulation
serving residential and commercial customers with annual revenue of
approximately $3 million.
- In June 2023, IBP acquired AGT&L, Inc., (doing business as
Absolute Insulation) a Texas-based installer of fiberglass, spray
foam, and cellulose insulation serving residential and commercial
customers with annual revenue of approximately $3 million.
2023 Third Quarter Cash Dividend and Potential Repricing for
Term Loan B Facility
IBP’s Board of Directors has approved the Company’s quarterly
cash dividend of $0.33 per share, payable on September 30, 2023, to
stockholders of record on September 15, 2023. The third quarter
regular cash dividend represents a 5% increase from last year’s
third quarter cash dividend payment.
IBP is seeking to reprice its existing approximately $500
million Term Loan B facility. This proposed refinancing is subject
to market and other conditions, and there can be no assurance that
it will be completed.
Second Quarter 2023 Results Overview
For the second quarter of 2023, net revenue was $692.1 million,
an increase of 2.3% from $676.7 million for the second quarter of
2022. On a consolidated same branch basis, net revenue declined
1.5% from the prior year quarter, which was primarily attributable
to a 10% decline in our reported job volume partially offset by a
7% increase in price/mix. Residential sales growth within our
Installation segment was down 5.4% on a same branch basis in the
quarter, with 38.3% same branch sales growth in our multifamily end
market partially offsetting a 13.3% decline in our single-family
same branch sales. Commercial same branch sales growth continued to
improve, increasing 16.1% from the prior year quarter.
Gross profit improved 7.3% to $232.5 million from $216.7 million
in the prior year quarter. Gross profit and adjusted gross profit*
as a percent of total revenue was 33.6% up from 32.0% for both
metrics the same period last year. Adjusted gross profit primarily
adjusts for the Company’s share-based compensation expense.
Selling and administrative expense, as a percent of net revenue,
was 18.6% compared to 16.8% in the prior year quarter. Adjusted
selling and administrative expense*, as a percent of net revenue,
was 17.9% compared to 16.1% in the prior year quarter.
Net income was $61.6 million, or $2.18 per diluted share,
compared to $59.9 million, or $2.07 per diluted share in the prior
year quarter. Adjusted net income* was $74.0 million, or $2.62 per
diluted share, compared to $71.7 million, or $2.48 per diluted
share in the prior year quarter. Adjusted net income accounts for
the impact of non-core items in both periods, including an addback
for non-cash amortization expense related to acquisitions.
EBITDA* was $116.7 million a 1.6% increase from $114.8 million
in the prior year quarter as relatively stable year-over-year
margins combined with incremental sales growth driven by
acquisitions. Adjusted EBITDA* was $122.2 million, a 2.3% increase
from $119.5 million in the prior year quarter and a quarterly
record.
Conference Call and Webcast
The Company will host a conference call and webcast on August 2,
2023 at 10:00 a.m. Eastern Time to discuss these results. To
participate in the call, please dial 877-407-0792 (domestic) or
201-689-8263 (international). The live webcast will be available at
www.installedbuildingproducts.com in the investor relations
section. A replay of the conference call will be available through
September 2, 2023, by dialing 844-512-2921 (domestic) or
412-317-6671 (international) and entering the passcode
13738795.
About Installed Building Products
Installed Building Products, Inc. is one of the nation's largest
new residential insulation installers and is a diversified
installer of complementary building products, including
waterproofing, fire-stopping, fireproofing, garage doors, rain
gutters, window blinds, shower doors, closet shelving and mirrors
and other products for residential and commercial builders located
in the continental United States. The Company manages all aspects
of the installation process for its customers, from direct purchase
and receipt of materials from national manufacturers to its timely
supply of materials to job sites and quality installation. The
Company offers its portfolio of services for new and existing
single-family and multi-family residential and commercial building
projects in all 48 continental states and the District of Columbia
from its national network of over 240 branch locations.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws, including with respect
to the housing market and the commercial market, our operations,
industry and economic conditions, our financial and business model,
payment of dividends, the demand for our services and product
offerings, expansion of our national footprint and end markets,
diversification of our products, our ability to grow and strengthen
our market position, our ability to pursue and integrate
value-enhancing acquisitions and the expected amount of acquired
revenue, our ability to improve sales and profitability, and
expectations for demand for our services and our earnings.
Forward-looking statements may generally be identified by the use
of words such as "anticipate," "believe," "expect," "intends,"
"plan," and "will" or, in each case, their negative, or other
variations or comparable terminology. These forward-looking
statements include all matters that are not historical facts. By
their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. Any
forward-looking statements that we make herein and in any future
reports and statements are not guarantees of future performance,
and actual results may differ materially from those expressed in or
suggested by such forward-looking statements as a result of various
factors, including, without limitation, the adverse impact of the
ongoing COVID-19 pandemic; general economic and industry
conditions; rising home prices; inflation and interest rates; the
material price and supply environment; the timing of increases in
our selling prices; the risk that the Company may reduce, suspend
or eliminate dividend payments in the future; and the factors
discussed in the “Risk Factors” section of the Company’s Annual
Report on Form 10-K for the year ended December 31, 2022, as the
same may be updated from time to time in our subsequent filings
with the Securities and Exchange Commission. In addition, any
future declaration of dividends will be subject to the final
determination of our Board of Directors. Any forward-looking
statement made by the Company in this press release speaks only as
of the date hereof. New risks and uncertainties arise from time to
time, and it is impossible for the Company to predict these events
or how they may affect it. The Company has no obligation, and does
not intend, to update any forward-looking statements after the date
hereof, except as required by federal securities laws.
*Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance
with U.S. generally accepted accounting principles (“GAAP”), this
press release contains the non-GAAP financial measures of EBITDA,
Adjusted EBITDA, Adjusted EBITDA margin (i.e., Adjusted EBITDA
divided by net revenue), Adjusted Net Income, Adjusted Net Income
per diluted share, Adjusted Gross Profit and Adjusted Selling and
Administrative expense. The reasons for the use of these measures,
reconciliations of EBITDA, Adjusted EBITDA, Adjusted Net Income,
Adjusted Net Income per diluted share, Adjusted Gross Profit, and
Adjusted Selling and Administrative expense to the most directly
comparable GAAP measures and other information relating to these
measures are included below following the unaudited condensed
consolidated financial statements. Non-GAAP financial measures have
limitations as analytical tools and should not be considered in
isolation or as a substitute for IBP’s financial results prepared
in accordance with GAAP.
INSTALLED BUILDING PRODUCTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (unaudited, in thousands, except share and per share
amounts)
Three months ended June 30,
Six months ended June 30,
2023
2022
2023
2022
Net revenue
$
692,100
$
676,749
$
1,351,409
$
1,264,241
Cost of sales
459,625
460,040
908,512
875,129
Gross profit
232,475
216,709
442,897
389,112
Operating expenses
Selling
32,902
29,371
65,509
54,563
Administrative
95,984
84,030
185,488
163,174
Amortization
11,256
11,261
22,691
22,358
Operating income
92,333
92,047
169,209
149,017
Other expense, net
Interest expense, net
9,828
10,401
19,498
21,001
Other (income) expense
(186
)
368
(339
)
513
Income before income taxes
82,691
81,278
150,050
127,503
Income tax provision
21,094
21,374
39,179
33,777
Net income
$
61,597
$
59,904
$
110,871
$
93,726
Other comprehensive (loss) income, net of
tax:
Net change on cash flow hedges, net of tax
benefit (provision) of $(1,928) and $(3,603) for the three months
ended June 30, 2023 and 2021, respectively.
5,402
10,150
(907
)
28,261
Comprehensive income
$
66,999
$
70,054
$
109,964
$
121,987
Earnings Per Share:
Basic
$
2.19
$
2.08
$
3.94
$
3.23
Diluted
$
2.18
$
2.07
$
3.92
$
3.21
Weighted average shares outstanding:
Basic
28,174,279
28,781,866
28,125,251
29,040,693
Diluted
28,273,334
28,894,140
28,276,049
29,235,997
Cash dividends declared per share
$
0.33
$
0.32
$
1.56
$
1.53
INSTALLED BUILDING PRODUCTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands,
except share and per share amounts)
June 30,
December 31,
2023
2022
ASSETS
Current assets
Cash and cash equivalents
$
255,226
$
229,627
Accounts receivable (less allowance for
credit losses of $10,634 and $9,549 at June 30, 2023 and December
31, 2022, respectively)
416,601
397,222
Inventories
163,378
176,629
Prepaid expenses and other current
assets
82,897
80,933
Total current assets
918,102
884,411
Property and equipment, net
130,979
118,774
Operating lease right-of-use assets
76,582
76,174
Goodwill
393,493
373,555
Customer relationships, net
187,507
192,328
Other intangibles, net
91,919
91,145
Other non-current assets
37,358
42,545
Total assets
$
1,835,940
$
1,778,932
LIABILITIES AND STOCKHOLDER'S
EQUITY
Current liabilities
Current maturities of long-term debt
$
31,661
$
30,983
Current maturities of operating lease
obligations
26,389
26,145
Current maturities of finance lease
obligations
2,702
2,508
Accounts payable
138,029
149,186
Accrued compensation
51,932
51,608
Other current liabilities
63,821
67,631
Total current liabilities
314,534
328,061
Long-term debt
831,282
830,171
Operating lease obligations
49,975
49,789
Finance lease obligations
6,996
6,397
Deferred income taxes
27,906
28,458
Other long-term liabilities
44,575
42,557
Total liabilities
1,275,268
1,285,433
Commitments and contingencies (Note
16)
Stockholders’ equity
Preferred Stock; $0.01 par value:
5,000,000 authorized and 0 shares issued and outstanding at June
30, 2023 and December 31, 2022, respectively
—
—
Common stock; $0.01 par value: 100,000,000
authorized, 33,582,403 and 33,429,557 issued and 28,410,568 and
28,306,482 shares outstanding at June 30, 2023 and December 31,
2022, respectively
336
334
Additional paid in capital
236,123
228,827
Retained earnings
579,691
513,095
Treasury stock; at cost: 5,171,835 and
5,123,075 shares at June 30, 2023 and December 31, 2022,
respectively
(295,131
)
(289,317
)
Accumulated other comprehensive income
39,653
40,560
Total stockholders’ equity
560,672
493,499
Total liabilities and stockholders’
equity
$
1,835,940
$
1,778,932
Six months ended June 30,
2023
2022
Cash flows from operating
activities
Net income
$
110,871
$
93,726
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization of property
and equipment
25,416
23,162
Amortization of operating lease
right-of-use assets
14,446
13,224
Amortization of intangibles
22,691
22,358
Amortization of deferred financing costs
and debt discount
951
961
Provision for credit losses
3,196
1,887
Gain on sale of property and equipment
(1,203
)
(511
)
Noncash stock compensation
7,121
7,078
Other, net
(5,543
)
1,668
Changes in assets and liabilities,
excluding effects of acquisitions
Accounts receivable
(17,492
)
(66,719
)
Inventories
14,724
(33,481
)
Other assets
4,933
(1,474
)
Accounts payable
(16,300
)
19,259
Income taxes receivable/payable
(4,841
)
11,466
Other liabilities
(20,877
)
6,855
Net cash provided by operating
activities
138,093
99,459
Cash flows from investing
activities
Purchases of investments
—
(124,713
)
Maturities of short term investments
—
30,000
Purchases of property and equipment
(28,330
)
(24,512
)
Acquisitions of businesses, net of cash
acquired of $10 and $337 in 2022 and 2021, respectively
(40,182
)
(72,463
)
Proceeds from sale of property and
equipment
1,457
830
Settlements with interest rate swap
counterparties
7,760
—
Other
(225
)
(7,047
)
Net cash used in investing activities
$
(59,520
)
$
(197,905
)
Six months ended June 30,
2023
2022
Cash flows from financing
activities
Payments on Term Loan
$
(2,500
)
$
(2,500
)
Proceeds from vehicle and equipment notes
payable
18,299
13,325
Debt issuance costs
—
(657
)
Principal payments on long-term debt
(14,793
)
(16,158
)
Principal payments on finance lease
obligations
(1,449
)
(1,085
)
Dividends paid
(44,471
)
(44,877
)
Acquisition-related obligations
(2,246
)
(9,024
)
Repurchase of common stock
—
(99,665
)
Surrender of common stock awards by
employees
(5,814
)
(4,459
)
Net cash used in financing activities
(52,974
)
(165,100
)
Net change in cash and cash
equivalents
25,599
(263,545
)
Cash and cash equivalents at beginning of
period
229,627
333,485
Cash and cash equivalents at end of
period
$
255,226
$
69,940
Supplemental disclosures of cash flow
information
Net cash paid during the period for:
Interest
$
20,807
$
22,586
Income taxes, net of refunds
44,096
22,311
Supplemental disclosure of noncash
activities
Right-of-use assets obtained in exchange
for operating lease obligations
$
14,713
$
16,561
Release of indemnification of
acquisition-related debt
—
980
Property and equipment obtained in
exchange for finance lease obligations
2,232
2,600
Seller obligations in connection with
acquisition of businesses
7,714
25,278
Unpaid purchases of property and equipment
included in accounts payable
4,860
1,058
INSTALLED BUILDING PRODUCTS,
INC.
SEGMENT INFORMATION
(unaudited, in thousands)
Information on
Segments
Our Company has three operating
segments consisting of Installation, Distribution and
Manufacturing. The Other category reported below reflects the
operations of our Distribution and Manufacturing operating
segments.
Three months ended June 30,
2023
Six months ended June 30,
2023
Installation
Other
Eliminations
Consolidated
Installation
Other
Eliminations
Consolidated
Revenue
$
651,866
$
42,283
$
(2,049
)
$
692,100
$
1,274,608
$
81,005
$
(4,204
)
$
1,351,409
Cost of sales (1)
418,661
30,371
(1,583
)
447,449
829,046
58,829
(3,349
)
884,526
Segment gross profit
$
233,205
$
11,912
$
(466
)
$
244,651
$
445,562
$
22,176
$
(855
)
$
466,883
Segment gross profit percentage
35.8
%
28.2
%
22.7
%
35.3
%
35.0
%
27.4
%
20.3
%
34.5
%
Three months ended June 30,
2022
Six months ended June 30,
2022
Installation
Other
Eliminations
Consolidated
Installation
Other
Eliminations
Consolidated
Revenue
$
637,998
$
40,291
$
(1,540
)
$
676,749
$
1,199,629
$
66,941
$
(2,329
)
$
1,264,241
Cost of sales (1)
419,812
30,392
(1,290
)
$
448,914
805,504
49,765
(1,899
)
853,370
Segment gross profit
$
218,186
$
9,899
$
(250
)
$
227,835
$
394,125
$
17,176
$
(430
)
$
410,871
Segment gross profit percentage
34.2
%
24.6
%
16.2
%
33.7
%
32.9
%
25.7
%
18.5
%
32.5
%
(1)
Cost of sales included in segment gross
profit is exclusive of depreciation and amortization for the three
and six months ended June 30, 2023 and 2022.
The reconciliation between consolidated
segment gross profit for each period as shown in the tables above
to consolidated income before income taxes as follows:
Three months ended June 30,
Six months ended June 30,
2023
2022
2023
2022
Segment gross profit - consolidated
$
244,651
$
227,835
466,883
410,871
Depreciation and amortization (1)
12,176
11,126
23,986
21,759
Gross profit, as reported
232,475
216,709
442,897
389,112
Operating expenses
140,142
124,662
273,688
240,095
Operating income
92,333
92,047
169,209
149,017
Other expense, net
9,642
10,769
19,159
21,514
Income before income taxes
$
82,691
$
81,278
150,050
127,503
(1)
Depreciation and amortization is excluded
from segment gross profit for the three and six months ended June
30, 2023 and 2022.
INSTALLED BUILDING PRODUCTS,
INC.
REVENUE BY END MARKET
(unaudited, in thousands)
Three months ended June 30,
Six months ended June 30,
2023
2022
2023
2022
Installation:
Residential new construction
$
495,699
71
%
$
505,513
75
%
$
970,795
72
%
$
947,916
75
%
Repair and remodel
38,939
6
%
37,965
5
%
76,613
5
%
70,606
6
%
Commercial
117,227
17
%
94,520
14
%
227,200
17
%
181,107
14
%
Net revenue, Installation
651,865
94
%
637,998
94
%
1,274,608
94
%
1,199,629
95
%
Other
40,235
6
%
38,751
6
%
76,801
6
%
64,612
5
%
Net revenue, as reported
$
692,100
100
%
$
676,749
100
%
$
1,351,409
100
%
$
1,264,241
100
%
Reconciliation of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net
Income, Adjusted Gross Profit and Adjusted Selling and
Administrative Expense measure performance by adjusting GAAP net
income, EBITDA, gross profit and selling and administrative
expense, respectively, for certain income or expense items that are
not considered part of our core operations. We believe that the
presentation of these measures provides useful information to
investors regarding our results of operations because it assists
both investors and us in analyzing and benchmarking the performance
and value of our business.
We believe the Adjusted EBITDA measure is useful to investors
and us as a measure of comparative operating performance from
period to period as it measures our changes in pricing decisions,
cost controls and other factors that impact operating performance,
and removes the effect of our capital structure (primarily interest
expense), asset base (primarily depreciation and amortization),
items outside our control (primarily income taxes) and the
volatility related to the timing and extent of other activities
such as asset impairments and non-core income and expenses.
Accordingly, we believe that this measure is useful for comparing
general operating performance from period to period. In addition,
we use various EBITDA-based measures in determining the achievement
of awards under certain of our incentive compensation programs.
Other companies may define Adjusted EBITDA differently and, as a
result, our measure may not be directly comparable to measures of
other companies. In addition, Adjusted EBITDA may be defined
differently for purposes of covenants contained in our revolving
credit facility or any future facility.
Although we use the Adjusted EBITDA measure to assess the
performance of our business, the use of the measure is limited
because it does not include certain material expenses, such as
interest and taxes, necessary to operate our business. Adjusted
EBITDA should be considered in addition to, and not as a substitute
for, GAAP net income as a measure of performance. Our presentation
of this measure should not be construed as an indication that our
future results will be unaffected by unusual or non-recurring
items. This measure has limitations as an analytical tool, and you
should not consider it in isolation or as a substitute for analysis
of our results as reported under GAAP. Because of these
limitations, this measure is not intended as an alternative to net
income as an indicator of our operating performance, as an
alternative to any other measure of performance in conformity with
GAAP or as an alternative to cash flow provided by operating
activities as a measure of liquidity. You should therefore not
place undue reliance on this measure or ratios calculated using
this measure.
We also believe the Adjusted Net Income measure is useful to
investors and us as a measure of comparative operating performance
from period to period as it measures our changes in pricing
decisions, cost controls and other factors that impact operating
performance, and removes the effect of certain non-core items such
as discontinued operations, acquisition related expenses,
amortization expense, the tax impact of these certain non-core
items, and the volatility related to the timing and extent of other
activities such as asset impairments and non-core income and
expenses. To make the financial presentation more consistent with
other public building products companies, beginning in the fourth
quarter 2016 we included an addback for non-cash amortization
expense related to acquisitions. Accordingly, we believe that this
measure is useful for comparing general operating performance from
period to period. Other companies may define Adjusted Net Income
differently and, as a result, our measure may not be directly
comparable to measures of other companies. In addition, Adjusted
Net Income may be defined differently for purposes of covenants
contained in our revolving credit facility or any future
facility.
INSTALLED BUILDING PRODUCTS,
INC.
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES
ADJUSTED NET INCOME
CALCULATIONS
(unaudited, in thousands, except
share and per share amounts)
The table below reconciles Adjusted Net
Income to the most directly comparable GAAP financial measure, net
income, for the periods presented therein.
Per share figures may reflect rounding
adjustments and consequently totals may not appear to sum.
Three months ended June 30,
Six months ended June 30,
2023
2022
2023
2022
Net income, as reported
$
61,597
$
59,904
$
110,871
$
93,726
Adjustments for adjusted net income
Share based compensation expense
3,685
3,660
7,121
7,078
Acquisition related expenses
534
737
1,103
1,401
COVID-19 expenses (1)
—
—
1
301
Amortization expense (2)
11,256
11,261
22,691
22,358
Legal Reserve
1,283
280
1,283
845
Tax impact of adjusted items at a
normalized tax rate (3)
(4,357
)
(4,144
)
(8,372
)
(8,316
)
Adjusted net income
$
73,998
$
71,698
$
134,698
$
117,393
Weighted average shares outstanding
(diluted)
28,273,334
28,894,140
28,276,049
29,235,997
Diluted net income per share, as
reported
$
2.18
$
2.07
$
3.92
$
3.21
Adjustments for adjusted net income, net
of tax impact, per diluted share (4)
0.44
0.41
0.84
0.81
Diluted adjusted net income per share
$
2.62
$
2.48
$
4.76
$
4.02
(1)
Addback of employee pay, employee medical
expenses, and legal fees directly attributable to COVID-19.
(2)
Addback of all non-cash amortization
resulting from business combinations.
(3)
Normalized effective tax rate of 26.0%
applied to periods presented.
(4)
Includes adjustments related to the items
noted above, net of tax.
INSTALLED BUILDING PRODUCTS,
INC.
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES
ADJUSTED GROSS PROFIT
CALCULATIONS
(unaudited, in thousands)
The table below reconciles Adjusted Gross
Profit to the most directly comparable GAAP financial measure,
gross profit, for the periods presented therein.
Three months ended June 30,
Six months ended June 30,
2023
2022
2023
2022
Gross profit, as reported
$
232,475
$
216,709
$
442,897
$
389,112
Share based compensation expense
240
171
405
320
COVID-19 expense(1)
—
—
1
2
Adjusted gross profit
$
232,715
$
216,880
$
443,303
$
389,434
Gross profit margin
33.6
%
32.0
%
32.8
%
30.8
%
Adjusted gross profit margin
33.6
%
32.0
%
32.8
%
30.8
%
(1)
Addback of employee pay and employee
medical expenses directly attributable to COVID-19.
The table below reconciles Adjusted Selling and Administrative
to the most directly comparable GAAP financial measure, selling and
administrative, for the periods presented therein.
INSTALLED BUILDING PRODUCTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES ADJUSTED SELLING AND
ADMINISTRATIVE EXPENSE CALCULATIONS (unaudited, in thousands)
Three months ended June 30,
Six months ended June 30,
2023
2022
2023
2022
Selling expense
$
32,902
$
29,371
$
65,509
$
54,563
Administrative expense
95,984
84,030
185,488
163,174
Selling and administrative, as
reported
128,886
113,401
250,997
217,737
Share based compensation expense
3,445
3,489
6,716
6,758
Acquisition related expense
534
737
1,103
1,401
COVID-19 expenses(1)
—
—
1
299
Legal reserve
1,283
280
1,283
845
Adjusted selling and administrative
$
123,624
$
108,895
$
241,894
$
208,434
Selling and administrative - % Net
revenue
18.6
%
16.8
%
18.6
%
17.2
%
Adjusted selling and administrative - %
Net revenue
17.9
%
16.1
%
17.9
%
16.5
%
(1)
Addback of employee pay and employee
medical expenses directly attributable to COVID-19.
INSTALLED BUILDING PRODUCTS,
INC.
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES
EBITDA AND ADJUSTED EBITDA
CALCULATIONS
(unaudited, in thousands)
The table below reconciles EBITDA and
Adjusted EBITDA to the most directly comparable GAAP financial
measure, net income, for the periods presented therein.
Three months ended June 30,
Six months ended June 30,
2023
2022
2023
2022
Net income, as reported
$
61,597
$
59,904
$
110,871
$
93,726
Interest expense
9,828
10,401
19,498
21,001
Provision for income tax
21,094
21,374
39,179
33,777
Depreciation and amortization
24,147
23,095
48,107
45,520
EBITDA
116,666
114,774
217,655
194,024
Acquisition related expenses
534
737
1,103
1,401
Share based compensation expense
3,685
3,660
7,121
7,078
COVID-19 expenses(1)
—
—
1
301
Legal reserve
1,283
280
1,283
845
Adjusted EBITDA
$
122,168
$
119,451
$
227,163
$
203,649
Net profit margin
8.9
%
8.9
%
8.2
%
7.4
%
EBITDA margin
16.9
%
17.0
%
16.1
%
15.3
%
Adjusted EBITDA margin
17.7
%
17.7
%
16.8
%
16.1
%
(1)
Addback of employee pay and
employee medical expenses, and legal fees directly attributable to
COVID-19.
INSTALLED BUILDING PRODUCTS, INC.
SUPPLEMENTARY TABLE (unaudited)
Three months ended June 30,
Six months ended June 30,
2023
2022
2023
2022
Period-over-period Growth
Consolidated Sales Growth
2.3
%
38.7
%
6.9
%
36.7
%
Consolidated Same Branch Sales Growth
(1.5
)%
27.3
%
2.5
%
25.0
%
Installation
Sales Growth
2.2
%
32.1
%
6.3
%
31.1
%
Same Branch Sales Growth
(1.9
)%
27.4
%
2.2
%
24.9
%
Single-Family Sales Growth
(9.7
)%
37.8
%
(4.4
)%
37.6
%
Single-Family Same Branch Sales Growth
(13.3
)%
33.1
%
(8.3
)%
31.4
%
Multi-Family Sales Growth
40.7
%
30.3
%
39.5
%
27.6
%
Multi-Family Same Branch Sales Growth
38.3
%
30.3
%
38.1
%
26.8
%
Residential Sales Growth
(1.9
)%
36.6
%
2.4
%
35.9
%
Residential Same Branch Sales Growth
(5.4
)%
32.7
%
(1.1
)%
30.6
%
Commercial Sales Growth(1)
24.0
%
13.9
%
25.5
%
13.5
%
Commercial Same Branch Sales Growth
16.1
%
4.7
%
19.1
%
5.3
%
Other
(2)
Sales Growth
4.9
%
616.5
%
21.0
%
515.4
%
Same Branch Sales Growth
4.9
%
36.8
%
8.1
%
43.5
%
Same Branch Sales
Growth - Installation
Volume Growth(3)
(10.1
)%
7.0
%
(9.8
)%
8.2
%
Price/Mix Growth(3)
7.2
%
24.9
%
11.5
%
19.8
%
U.S. Housing
Market(4)
Total Completions Growth
4.6
%
3.1
%
7.8
%
0.0
%
Single-Family Completions Growth
(3.5
)%
6.5
%
(1.2
)%
4.1
%
Multi-Family Completions Growth
25.9
%
(6.6
)%
35.6
%
(11.9
)%
(1)
Our commercial end market consists of
heavy and light commercial projects.
(2)
Other business segment category includes
our manufacturing and distribution businesses operating segments.
As of 1Q22, Installation segment end market growth metrics exclude
the manufacturing and distribution businesses. Our distribution
businesses were acquired in December, 2021 and April, 2022.
(3)
The heavy commercial end market is
excluded from these metrics given its much larger per-job revenue
compared to our average job.
(4)
U.S. Census Bureau data, as revised.
INSTALLED BUILDING PRODUCTS, INC.
INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS (unaudited, in
thousands)
Revenue Increase
Three months ended June 30,
Six months ended June 30,
2023
% Total
2022
% Total
2023
% Total
2022
% Total
Same Branch
$
(10,455
)
(68.1
)%
$
133,141
70.6
%
$
30,975
35.5
%
$
231,408
68.2
%
Acquired
25,806
168.1
%
55,509
29.4
%
56,193
64.5
%
107,668
31.8
%
Total
$
15,351
100.0
%
$
188,650
100.0
%
$
87,168
100.0
%
$
339,076
100.0
%
Adjusted EBITDA Margin
Contributions
Three months ended June 30,
Six months ended June 30,
2023
% Margin
2022
% Margin
2023
% Margin
2022
% Margin
Same Branch 1
$
(2,700
)
25.8
%
$
34,406
25.8
%
$
13,632
44.0
%
$
56,935
24.6
%
Acquired
5,417
21.0
%
7,027
12.7
%
9,882
17.6
%
14,213
13.2
%
Total
$
2,717
17.7
%
$
41,433
22.0
%
$
23,514
27.0
%
$
71,148
21.0
%
(1)
Same branch adjusted EBITDA margin
contribution percentage is a percentage of same branch revenue
increase/(decrease). For the three months ended June 30, 2023, the
margin reflects a decremental margin.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230801770257/en/
Investor Relations: 614-221-9944
investorrelations@installed.net
Grafico Azioni Installed Building Produ... (NYSE:IBP)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Installed Building Produ... (NYSE:IBP)
Storico
Da Giu 2023 a Giu 2024