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
third quarter ended September 30, 2023.
Third Quarter 2023 Highlights (Comparisons are to Prior Year
Period)
- Net revenue decreased 1.8% to $706.5 million
- Installation revenue decreased 1.7% to $661.2 million, as
softer single-family sales were partially offset by multi-family
and commercial sales growth, including incremental sales from IBP's
recent acquisitions
- Other revenue, which includes IBP’s manufacturing and
distribution operations, decreased slightly to $45.3 million from
$46.2 million
- Net income increased 11.5% to a third quarter record of $68.0
million
- Adjusted EBITDA* increased to a record of $130.5 million
- Net income per diluted share increased 12.7% to a third quarter
record of $2.40
- Adjusted net income per diluted share* increased 11.2% to a
record of $2.79
- At September 30, 2023, IBP had $339.8 million in cash and cash
equivalents
- Completed the repricing of its Term Loan B facility, reducing
the borrowing cost by 25 basis points
- Published the 2023 annual Environmental, Social and Governance
("ESG") report highlighting the positive impact the Company is
making for all stakeholders
- Announced retirement of Jay P. Elliott, IBP's Chief Operating
Officer, effective December 31, 2023 and the Board of Directors
named Brad A. Wheeler, current Regional President as his successor,
effective January 1, 2024
- Declared third quarter dividend of $0.33 per share which was
paid to shareholders on September 30, 2023
Recent Developments
- IBP’s Board of Directors declared the fourth quarter regular
cash dividend of $0.33 per share
“Our third quarter and year-to-date financial results reflect
the continued benefits of our product, end-market and geographic
diversification strategies, as softer single-family sales were
partially offset by the continuation of robust sales growth in our
multi-family end market. While we expect interest rate volatility
to exacerbate cyclicality in the housing industry, we believe the
long-term opportunities in our residential and commercial end
markets remain attractive and as of the end of the third quarter,
our multi-family revenue is supported by a stable backlog,” stated
Jeff Edwards, Chairman and Chief Executive Officer.
“We also continue to prioritize the value of our services over
volume, which drove strong margins during the quarter. As a result,
we achieved record quarterly net profit margin and adjusted EBITDA
margin for the three months ended September 30, 2023. With our
strong balance sheet and asset light business model, we continue to
pursue growth through acquisitions, while distributing cash
dividends, and opportunistically repurchasing our common stock,”
continued Mr. Edwards.
“I am proud of our team’s continued hard work and dedication
throughout a rapidly changing economic backdrop for the housing
industry. Our focus remains steadfast and we continue to advance
toward our goals with the third annual ESG report highlighting a
core business value of ‘doing the right thing’ for our employees,
customers, communities, and shareholders. I believe our success in
2023, and throughout IBP’s history, demonstrates that ‘doing the
right thing’ creates significant value for our stakeholders,”
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 $58 million of annual revenue. We currently
anticipate that certain acquisition targets may be delayed to the
first quarter of 2024, which would result in acquired revenue for
2023 being less than our annual goal of $100 million.
During the 2023 third quarter and in October 2023, IBP completed
the following acquisitions:
- In August 2023, IBP acquired Interior 2000 Products, LLC, a
Virginia-based installer of shower, shelving, and mirror products,
as well as fireplaces into new and existing residential and
commercial construction projects with annual revenue of
approximately $6 million.
- In August 2023, IBP acquired R-Pro Select, LLC, a North
Carolina-based residential installer of fiberglass, spray foam,
cellulose insulation, and fireplaces with annual revenue of
approximately $2 million.
- In October 2023, IBP acquired Interstate Spray Foam, LLC, a
North Dakota-based installer of fiberglass and spray foam
insulation with multifamily, residential and commercial customers
and annual revenue of approximately $2 million.
2023 Fourth Quarter Cash Dividend
IBP’s Board of Directors has approved the Company’s quarterly
cash dividend of $0.33 per share, payable on December 31, 2023, to
stockholders of record on December 15, 2023. The fourth quarter
regular cash dividend represents a 5% increase from last year’s
fourth quarter cash dividend payment.
Third Quarter 2023 Results Overview
For the third quarter of 2023, net revenue was $706.5 million, a
decrease of 1.8% from $719.1 million for the third quarter of 2022.
On a consolidated same branch basis, net revenue declined 5.2% from
the prior year quarter, which was primarily attributable to a 10.8%
decline in IBP's reported job volume partially offset by a 3.5%
increase in price/mix. Residential sales growth within the
Company's Installation segment was down 6.0% on a same branch basis
in the quarter, as a 12.2% decline in single-family same branch
sales was partially offset by a 28.4% increase in multi-family same
branch sales. According to the U.S. Census Bureau, the number of
single-family housing units under construction across the industry
fell 16% from the prior year quarter while multifamily units were
up 14% relative to last year. Commercial same branch sales were
down 1.3% from the prior year quarter and total commercial sales
increased 3.7%, which includes the Company's recent
acquisitions.
Gross profit improved 9.4% to $242.1 million from $221.3 million
in the prior year quarter. Gross profit and adjusted gross profit*
as a percent of total revenue were both 34.3% up from 30.8% for 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 18.2% compared to 16.1% in the prior year quarter. Adjusted
selling and administrative expense*, as a percent of net revenue,
was 17.7% compared to 15.7% in the prior year quarter.
Net income was $68.0 million, or $2.40 per diluted share,
compared to $61.0 million, or $2.13 per diluted share in the prior
year quarter. Net income margin for the third quarter was 9.6%
compared to 8.5% in the prior year quarter. Adjusted net income*
was $78.9 million, or $2.79 per diluted share, compared to $71.7
million, or $2.51 per diluted share in the prior year quarter.
Adjusted net income margin* for the third quarter was 11.2%
compared to 10.0% 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 $126.8 million, an 8.3% increase from $117.1 million
in the prior year quarter as a result of improved margins of 18.0%
and 16.3%, respectively. Adjusted EBITDA* was $130.5 million, an
8.6% increase from $120.2 million in the prior year quarter,
representing adjusted EBITDA margins* of 18.5% and 16.7%,
respectively. Both EBITDA and Adjusted EBITDA for the third quarter
of 2023 represent record results.
Conference Call and Webcast
The Company will host a conference call and webcast on November
8, 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
December 8, 2023, by dialing 844-512-2921 (domestic) or
412-317-6671 (international) and entering the passcode
13740596.
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 ESG-related performance and
initiatives, 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 September
30,
Nine months ended September
30,
2023
2022
2023
2022
Net revenue
$
706,465
$
719,114
$
2,057,874
$
1,983,355
Cost of sales
464,371
497,837
1,372,883
1,372,966
Gross profit
242,094
221,277
684,991
610,389
Operating expenses
Selling
31,966
31,651
97,475
86,214
Administrative
96,789
84,345
282,277
247,519
Amortization
11,031
11,370
33,722
33,728
Operating income
102,308
93,911
271,517
242,928
Other expense, net
Interest expense, net
9,718
10,668
29,216
31,669
Other (income) expense
(205
)
185
(544
)
698
Income before income taxes
92,795
83,058
242,845
210,561
Income tax provision
24,803
22,080
63,982
55,857
Net income
$
67,992
$
60,978
$
178,863
$
154,704
Other comprehensive income, net of
tax:
Net change on cash flow hedges, net of tax
provision of $(1,956) and $(5,105) for the three months ended
September 30, 2023 and 2022, respectively, and $(1,633) and
$(15,138) for the nine months ended September 30, 2023 and 2022,
respectively
5,482
14,379
4,575
42,640
Comprehensive income
$
73,474
$
75,357
$
183,438
$
197,344
Earnings Per Share:
Basic
$
2.41
$
2.14
$
6.35
$
5.36
Diluted
$
2.40
$
2.13
$
6.32
$
5.33
Weighted average shares outstanding:
Basic
28,204,328
28,478,954
28,151,899
28,851,389
Diluted
28,318,633
28,595,707
28,290,533
29,020,509
Cash dividends declared per share
$
0.33
$
0.32
$
1.89
$
1.85
INSTALLED BUILDING PRODUCTS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited, in thousands, except
share and per share amounts)
September 30,
December 31,
2023
2022
ASSETS
Current assets
Cash and cash equivalents
$
339,759
$
229,627
Accounts receivable (less allowance for
credit losses of $10,919 and $9,549 at September 30, 2023 and
December 31, 2022, respectively)
427,093
397,222
Inventories
159,675
176,629
Prepaid expenses and other current
assets
73,292
80,933
Total current assets
999,819
884,411
Property and equipment, net
134,031
118,774
Operating lease right-of-use assets
77,808
76,174
Goodwill
395,213
373,555
Customer relationships, net
181,672
192,328
Other intangibles, net
89,637
91,145
Other non-current assets
42,780
42,545
Total assets
$
1,920,960
$
1,778,932
LIABILITIES AND STOCKHOLDER'S
EQUITY
Current liabilities
Current maturities of long-term debt
$
31,803
$
30,983
Current maturities of operating lease
obligations
27,769
26,145
Current maturities of finance lease
obligations
2,694
2,508
Accounts payable
143,556
149,186
Accrued compensation
61,151
51,608
Other current liabilities
57,703
67,631
Total current liabilities
324,676
328,061
Long-term debt
833,458
830,171
Operating lease obligations
50,085
49,789
Finance lease obligations
6,909
6,397
Deferred income taxes
29,836
28,458
Other long-term liabilities
47,814
42,557
Total liabilities
1,292,778
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
September 30, 2023 and December 31, 2022, respectively
—
—
Common stock; $0.01 par value: 100,000,000
authorized, 33,582,449 and 33,429,557 issued and 28,409,655 and
28,306,482 shares outstanding at September 30, 2023 and December
31, 2022, respectively
336
334
Additional paid in capital
239,546
228,827
Retained earnings
638,309
513,095
Treasury stock; at cost: 5,172,794 and
5,123,075 shares at September 30, 2023 and December 31, 2022,
respectively
(295,144
)
(289,317
)
Accumulated other comprehensive income
45,135
40,560
Total stockholders’ equity
628,182
493,499
Total liabilities and stockholders’
equity
$
1,920,960
$
1,778,932
INSTALLED BUILDING PRODUCTS,
INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
(unaudited, in thousands)
Nine months ended September
30,
2023
2022
Cash flows from operating
activities
Net income
$
178,863
$
154,704
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization of property
and equipment
38,702
35,153
Amortization of operating lease
right-of-use assets
21,716
19,832
Amortization of intangibles
33,722
33,728
Amortization of deferred financing costs
and debt discount
1,415
1,436
Provision for credit losses
4,380
2,754
Write-off of debt issuance costs
928
—
Gain on sale of property and equipment
(1,518
)
(1,048
)
Noncash stock compensation
10,637
10,290
Other, net
(8,824
)
1,509
Changes in assets and liabilities,
excluding effects of acquisitions
Accounts receivable
(28,695
)
(98,528
)
Inventories
18,715
(23,071
)
Proceeds from termination of interest rate
swap agreements
—
25,462
Other assets
10,701
4,773
Accounts payable
(8,269
)
20,290
Income taxes receivable/payable
(198
)
12,354
Other liabilities
(21,736
)
(971
)
Net cash provided by operating
activities
250,539
198,667
Cash flows from investing
activities
Purchases of investments
—
(344,388
)
Maturities of short term investments
—
320,000
Purchases of property and equipment
(46,902
)
(35,212
)
Acquisitions of businesses, net of cash
acquired of $10 and $330 in 2023 and 2022, respectively
(44,845
)
(75,779
)
Proceeds from sale of property and
equipment
2,054
1,418
Settlements with interest rate swap
counterparties
12,165
1,287
Other
(350
)
(7,261
)
Net cash used in investing activities
$
(77,878
)
$
(139,935
)
Nine months ended September
30,
2023
2022
Cash flows from financing
activities
Payments on Term Loan
$
(3,731
)
$
(3,750
)
Proceeds from vehicle and equipment notes
payable
28,359
20,492
Debt issuance costs
(438
)
(655
)
Principal payments on long-term debt
(22,193
)
(23,340
)
Principal payments on finance lease
obligations
(2,199
)
(1,661
)
Dividends paid
(53,779
)
(53,821
)
Acquisition-related obligations
(2,721
)
(9,423
)
Repurchase of common stock
—
(112,193
)
Surrender of common stock awards by
employees
(5,827
)
(4,464
)
Net cash used in financing activities
(62,529
)
(188,815
)
Net change in cash and cash
equivalents
110,132
(130,083
)
Cash and cash equivalents at beginning of
period
229,627
333,485
Cash and cash equivalents at end of
period
$
339,759
$
203,402
Supplemental disclosures of cash flow
information
Net cash paid during the period for:
Interest
$
36,332
$
40,639
Income taxes, net of refunds
64,177
43,512
Supplemental disclosure of noncash
activities
Right-of-use assets obtained in exchange
for operating lease obligations
$
23,188
$
22,056
Release of indemnification of
acquisition-related debt
—
980
Property and equipment obtained in
exchange for finance lease obligations
2,905
4,411
Seller obligations in connection with
acquisition of businesses
8,290
25,534
Unpaid purchases of property and equipment
included in accounts payable
1,943
857
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 September 30,
2023
Nine months ended September 30,
2023
Installation
Other
Eliminations
Consolidated
Installation
Other
Eliminations
Consolidated
Revenue
$
661,191
$
47,435
$
(2,161
)
$
706,465
$
1,935,799
$
128,440
$
(6,365
)
$
2,057,874
Cost of sales (1)
419,479
33,942
(1,591
)
451,830
1,248,524
92,771
(4,940
)
1,336,355
Segment gross profit
$
241,712
$
13,493
$
(570
)
$
254,635
$
687,275
$
35,669
$
(1,425
)
$
721,519
Segment gross profit percentage
36.6
%
28.4
%
26.4
%
36.0
%
35.5
%
27.8
%
22.4
%
35.1
%
Three months ended September 30,
2022
Nine months ended September 30,
2022
Installation
Other
Eliminations
Consolidated
Installation
Other
Eliminations
Consolidated
Revenue
$
672,916
$
47,748
$
(1,550
)
$
719,114
$
1,872,544
$
114,690
$
(3,879
)
$
1,983,355
Cost of sales (1)
450,017
37,659
(1,116
)
$
486,560
1,255,521
87,425
(3,015
)
1,339,931
Segment gross profit
$
222,899
$
10,089
$
(434
)
$
232,554
$
617,023
$
27,265
$
(864
)
$
643,424
Segment gross profit percentage
33.1
%
21.1
%
28.0
%
32.3
%
33.0
%
23.8
%
22.3
%
32.4
%
(1)
Cost of sales included in segment gross
profit is exclusive of depreciation and amortization for the three
and nine months ended September 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 September
30,
Nine months ended September
30,
2023
2022
2023
2022
Segment gross profit - consolidated
$
254,635
$
232,554
$
721,519
$
643,424
Depreciation and amortization (1)
12,541
11,277
36,528
33,035
Gross profit, as reported
242,094
221,277
684,991
610,389
Operating expenses
139,786
127,366
413,474
367,461
Operating income
102,308
93,911
271,517
242,928
Other expense, net
9,513
10,853
28,672
32,367
Income before income taxes
$
92,795
$
83,058
$
242,845
$
210,561
(1)
Depreciation and amortization is excluded
from segment gross profit for the three and nine months ended
September 30, 2023 and 2022.
INSTALLED BUILDING PRODUCTS,
INC.
REVENUE BY END MARKET
(unaudited, in thousands)
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
Installation:
Residential new construction
$
518,080
73
%
$
532,299
74
%
$
1,488,875
72
%
$
1,480,214
75
%
Repair and remodel
37,839
6
%
39,139
6
%
114,452
6
%
109,745
5
%
Commercial
105,272
15
%
101,478
14
%
332,472
16
%
282,585
14
%
Net revenue, Installation
661,191
94
%
672,916
94
%
1,935,799
94
%
1,872,544
94
%
Other
45,274
6
%
46,198
6
%
122,075
6
%
110,811
6
%
Net revenue, as reported
$
706,465
100
%
$
719,114
100
%
$
2,057,874
100
%
$
1,983,355
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 September
30,
Nine months ended September
30,
2023
2022
2023
2022
Net income, as reported
$
67,992
$
60,978
$
178,863
$
154,704
Adjustments for adjusted net income
Share based compensation expense
3,516
3,212
10,637
10,290
Acquisition related expenses
157
(94
)
1,260
1,307
COVID-19 expenses (1)
—
2
1
303
Amortization expense (2)
11,031
11,370
33,722
33,728
Legal Reserve
—
—
1,283
845
Tax impact of adjusted items at a
normalized tax rate (3)
(3,823
)
(3,767
)
(12,195
)
(12,083
)
Adjusted net income
$
78,873
$
71,701
$
213,571
$
189,094
Weighted average shares outstanding
(diluted)
28,318,633
28,595,707
28,290,533
29,020,509
Diluted net income per share, as
reported
$
2.40
$
2.13
$
6.32
$
5.33
Adjustments for adjusted net income, net
of tax impact, per diluted share (4)
0.39
0.38
1.23
1.19
Diluted adjusted net income per share
$
2.79
$
2.51
$
7.55
$
6.52
(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 September
30,
Nine months ended September
30,
2023
2022
2023
2022
Gross profit, as reported
$
242,094
$
221,277
$
684,991
$
610,389
Share based compensation expense
253
164
658
484
COVID-19 expense(1)
—
2
1
4
Adjusted gross profit
$
242,347
$
221,443
$
685,650
$
610,877
Gross profit margin
34.3
%
30.8
%
33.3
%
30.8
%
Adjusted gross profit margin
34.3
%
30.8
%
33.3
%
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 September
30,
Nine months ended September
30,
2023
2022
2023
2022
Selling expense
$
31,966
$
31,651
$
97,475
$
86,214
Administrative expense
96,789
84,345
282,277
247,519
Selling and administrative, as
reported
128,755
115,996
379,752
333,733
Share based compensation expense
3,263
3,048
9,979
9,806
Acquisition related expense
157
(94
)
1,260
1,307
COVID-19 expenses(1)
—
—
1
299
Legal reserve
—
—
1,283
845
Adjusted selling and administrative
$
125,335
$
113,042
$
367,229
$
321,476
Selling and administrative - % Net
revenue
18.2
%
16.1
%
18.5
%
16.8
%
Adjusted selling and administrative - %
Net revenue
17.7
%
15.7
%
17.8
%
16.2
%
(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 September
30,
Nine months ended September
30,
2023
2022
2023
2022
Net income, as reported
$
67,992
$
60,978
$
178,863
$
154,704
Interest expense
9,718
10,668
29,216
31,669
Provision for income tax
24,803
22,080
63,982
55,857
Depreciation and amortization
24,317
23,361
72,424
68,881
EBITDA
126,830
117,087
344,485
311,111
Acquisition related expenses
157
(94
)
1,260
1,307
Share based compensation expense
3,516
3,212
10,637
10,290
COVID-19 expenses(1)
—
2
1
303
Legal reserve
—
—
1,283
845
Adjusted EBITDA
$
130,503
$
120,207
$
357,666
$
323,856
Net profit margin
9.6
%
8.5
%
8.7
%
7.8
%
EBITDA margin
18.0
%
16.3
%
16.7
%
15.7
%
Adjusted EBITDA margin
18.5
%
16.7
%
17.4
%
16.3
%
(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 September
30,
Nine months ended September
30,
2023
2022
2023
2022
Period-over-period Growth
Consolidated Sales Growth
(1.8
)%
41.1
%
3.8
%
38.2
%
Consolidated Same Branch Sales Growth
(5.2
)%
28.5
%
(0.3
)%
26.2
%
Installation
Sales Growth
(1.7
)%
33.5
%
3.4
%
31.9
%
Same Branch Sales Growth
(5.4
)%
28.4
%
(0.5
)%
26.2
%
Single-Family Sales Growth
(8.7
)%
39.2
%
(6.0
)%
38.2
%
Single-Family Same Branch Sales Growth
(12.2
)%
35.3
%
(9.7
)%
32.8
%
Multi-Family Sales Growth
30.9
%
33.9
%
36.4
%
29.7
%
Multi-Family Same Branch Sales Growth
28.4
%
32.9
%
34.7
%
28.9
%
Residential Sales Growth
(2.7
)%
38.4
%
0.6
%
36.8
%
Residential Same Branch Sales Growth
(6.0
)%
34.9
%
(2.8
)%
32.1
%
Commercial Sales Growth(1)
3.7
%
16.0
%
17.7
%
14.4
%
Commercial Same Branch Sales Growth
(1.3
)%
2.8
%
11.8
%
4.4
%
Other
(2)
Sales Growth
(0.7
)%
657.3
%
12.0
%
567.5
%
Same Branch Sales Growth
(0.7
)%
44.3
%
4.5
%
43.8
%
Same Branch Sales
Growth - Installation
Volume Growth(3)
(10.8
)%
7.5
%
(10.1
)%
7.9
%
Price/Mix Growth(3)
3.5
%
27.1
%
8.6
%
22.2
%
U.S. Housing
Market(4)
Total Completions Growth
(1.8
)%
7.0
%
4.8
%
2.4
%
Single-Family Completions Growth
(4.7
)%
8.7
%
(2.2
)%
5.7
%
Multi-Family Completions Growth
3.9
%
4.8
%
24.1
%
(6.0
)%
(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 September
30,
Nine months ended September
30,
2023
% Total
2022
% Total
2023
% Total
2022
% Total
Same Branch
$
(37,426
)
295.9
%
$
145,082
69.3
%
$
(6,451
)
(8.7
)%
$
376,491
68.6
%
Acquired
24,777
(195.9
)%
64,270
30.7
%
80,970
108.7
%
171,938
31.4
%
Total
$
(12,649
)
100.0
%
$
209,352
100.0
%
$
74,519
100.0
%
$
548,429
100.0
%
Adjusted EBITDA Margin
Contributions
Three months ended September
30,
Nine months ended September
30,
2023
% Margin
2022
% Margin
2023
% Margin
2022
% Margin
Same Branch(1)
$
5,492
*
$
35,873
24.7
%
$
19,124
*
$
92,808
24.7
%
Acquired
4,804
19.4
%
6,187
9.6
%
14,686
18.1
%
20,400
11.9
%
Total
$
10,296
*
$
42,060
20.1
%
$
33,810
45.4
%
$
113,208
20.6
%
(1)
Same branch adjusted EBITDA margin
contribution percentage is a percentage of same branch revenue
increase (decrease).
*
During the three months ended September
30, 2023, same branch and total revenue declined while same branch
and total adjusted EBITDA increased. During the nine months ended
September 30, 2023, same branch revenue declined while same branch
adjusted EBITDA increased. The negative % margin result in both
periods does not reflect a decremental margin, but rather, a
quotient with mixed signs for the numerator and denominator.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231106253041/en/
Contact Information: Investor Relations: 614-221-9944
investorrelations@installed.net
Installed Building Produ... (NYSE:IBP)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Installed Building Produ... (NYSE:IBP)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024