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Installed Building Products (IBP)

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 from its national network of over 190 branch locations.

Company profile

Ticker
IBP
Exchange
CEO
Jeffrey Edwards
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
5 Star Building Products LLC • 5 Star Building Products of Southern Utah, LLC • A+ Insulation of Kansas City, LLC • Accurate Insulation LLC • Accurate Insulation of Colorado, LLC • Accurate Insulation of Delaware, LLC • Accurate Insulation of Upper Marlboro, LLC • Advanced Fiber, LLC • Advanced Insulation, LLC • Alert Insulation of California, LLC ...

IBP stock data

Analyst ratings and price targets

Last 3 months

Calendar

4 Aug 22
28 Sep 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 69.94M 69.94M 69.94M 69.94M 69.94M 69.94M
Cash burn (monthly) 49.16M 11.16M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 145.19M 32.97M n/a n/a n/a n/a
Cash remaining -75.25M 36.97M n/a n/a n/a n/a
Runway (months of cash) -1.5 3.3 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
8 Aug 22 Thomas Michael H Common Stock, $0.01 par value per share Sell Dispose S No No 101.0501 2,491 251.72K 8,669
18 Jul 22 Schottenstein Robert H Common Stock, $0.01 par value per share Grant Acquire A No No 0 970 0 970
26 May 22 Carter Margot Lebenberg Common Stock, $0.01 par value per share Grant Acquire A No No 0 1,067 0 9,606
26 May 22 Thomas Michael H Common Stock, $0.01 par value per share Grant Acquire A No No 0 1,067 0 11,160
45.5% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 195 210 -7.1%
Opened positions 28 38 -26.3%
Closed positions 43 43
Increased positions 75 69 +8.7%
Reduced positions 68 74 -8.1%
13F shares Current Prev Q Change
Total value 4.76B 2.4B +98.4%
Total shares 25.51M 26.43M -3.5%
Total puts 2.5K 9.2K -72.8%
Total calls 8.5K 19.7K -56.9%
Total put/call ratio 0.3 0.5 -37.0%
Largest owners Shares Value Change
BLK Blackrock 3.73M $309.98M -1.7%
Jeffrey W. Edwards 3M $418.86M 0.0%
Vanguard 2.51M $208.81M -11.5%
Findlay Park Partners 2M $166M -0.5%
Bamco 1.42M $118.35M +1.8%
IVZ Invesco 1.01M $84.36M -27.9%
STT State Street 874.14K $72.69M -0.6%
Dimensional Fund Advisors 744.15K $61.88M +0.9%
Van Berkom & Associates 681.5K $56.67M +26.3%
Wasatch Advisors 645.54K $53.68M -11.2%
Largest transactions Shares Bought/sold Change
IVZ Invesco 1.01M -392.45K -27.9%
Vanguard 2.51M -325.26K -11.5%
Blue Grotto Capital 50K -221.89K -81.6%
Van Berkom & Associates 681.5K +142.09K +26.3%
Royal London Asset Management 135.66K +135.66K NEW
Citadel Advisors 167.19K +118.9K +246.3%
BNP Paribas Asset Management Holding 461.59K -116.51K -20.2%
MS Morgan Stanley 289.7K +114.63K +65.5%
Global Alpha Capital Management 111.9K +111.9K NEW
Speece Thorson Capital 0 -102.03K EXIT

Financial report summary

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Risks
  • RISKS RELATED TO OUR BUSINESS AND INDUSTRY
  • Our business and the industry in which we operate are highly dependent on general and local economic conditions, the housing market, the level of new residential and commercial construction activity and other important factors, all of which are beyond our control.
  • A downturn in the housing market could materially and adversely affect our business and financial results.
  • Our business relies on commercial construction activity, which has faced significant challenges and is dependent on business investment.
  • A decline in the economy and/or a deterioration in expectations regarding the housing market or the commercial construction market could cause us to record significant non-cash impairment charges, which could negatively affect our earnings and reduce stockholders’ equity.
  • Our industry is highly fragmented and competitive, and increased competitive pressure may adversely affect our business, financial condition, results of operations and cash flows.
  • Product shortages or the loss of key suppliers could affect our business, financial condition, results of operations and cash flows.
  • Changes in the costs of the products we use in our business, an inability to increase our selling prices or a delay in the timing of such increases can decrease our profit margins.
  • Our success depends on our key personnel.
  • We are dependent on attracting, training and retaining qualified employees while controlling labor costs.
  • Higher labor and health care costs could adversely affect our business.
  • Variability in self-insurance liability estimates could adversely impact our results of operations.
  • Increases in union organizing activity and/or work stoppages could delay or reduce availability of products that we use in our business and increase our costs.
  • Increases in fuel costs could adversely affect our results of operations.
  • Because we operate our business through highly dispersed locations across the United States, our operations may be materially adversely affected by inconsistent practices and the operating results of individual branches may vary.
  • In the ordinary course of business, we are required to obtain performance bonds and licensing bonds, the unavailability of which could adversely affect our business, financial condition, results of operations and/or cash flows.
  • Increasing scrutiny and changing expectations from stakeholders regarding our environmental, social and governance ("ESG") practices may impose additional costs on us or expose us to new or additional risks.
  • RISKS TO OUR BUSINESS FROM EXTERNAL THREATS
  • The COVID-19 pandemic could continue to adversely impact the U.S. economy as well as our business, financial condition, operating results and cash flows.
  • Our business is seasonal and may be affected by adverse weather conditions, natural disasters or other catastrophic events.
  • We may be adversely affected by disruptions in our information technology systems.
  • In the event of a cybersecurity incident, we could experience operational interruptions, incur substantial additional costs, become subject to legal or regulatory proceedings or suffer damage to our reputation.
  • Terrorist attacks or acts of war against the United States or increased domestic or international instability could have an adverse effect on our operations.
  • RISKS ASSOCIATED WITH OUR GROWTH STRATEGY
  • We may not be able to continue to successfully expand into new products or geographic markets and further diversify our business, which could negatively impact our future sales and results of operations.
  • We may be unable to successfully acquire and integrate other businesses and realize the anticipated benefits of acquisitions.
  • Our continued expansion into the commercial construction end market and other new lines of business could affect our revenue, margins, financial condition, operating results and cash flows.
  • Our customers could purchase materials directly from manufacturers or other sources.
  • We may be subject to claims arising from the operations of our various businesses for periods prior to the dates we acquired them.
  • LEGAL AND REGULATORY RISKS
  • Changes in employment laws may adversely affect our business.
  • Our business could be adversely affected by changes in immigration laws or failure to properly verify the employment eligibility of our employees.
  • Our results of operations, financial condition and cash flows could be adversely affected if pending or future legal claims against us are not resolved in our favor.
  • The nature of our business exposes us to product liability, workmanship warranty, casualty, negligence, construction defect, breach of contract and other claims and legal proceedings.
  • Federal, state, local and other laws and regulations could impose substantial costs and/or restrictions on our operations and could adversely affect our business.
  • We are subject to environmental regulation and potential exposure to environmental liabilities.
  • RISKS RELATED TO OUR INDEBTEDNESS
  • We have debt principal and interest payment requirements that may restrict our future operations and impair our ability to meet our obligations.
  • Restrictions in our existing credit facilities, senior notes, and any future facilities or any other indebtedness we may incur in the future, limit our ability to take certain actions and could adversely affect our business, financial condition, results of operations, and the value of our common stock.
  • Our use of interest rate hedging instruments could expose us to risks and financial losses that may adversely affect our financial condition, liquidity and results of operations.
  • If we default on our obligations under the instruments governing our indebtedness, we may not be able to make payments on our debt and our business and financial condition could be adversely affected.
  • Adverse credit ratings could increase our costs of borrowing money and limit our access to capital markets and commercial credit.
  • Our indebtedness exposes us to interest expense increases if interest rates increase.
  • We may require additional capital in the future, which may not be available on favorable terms or at all.
  • RISKS RELATED TO OUR SECURITIES
  • The price of our common stock may fluctuate substantially and your investment may decline in value.
  • Our internal controls over financial reporting may not be effective, which could have a significant and adverse effect on our business and reputation.
  • Future sales of our common stock, or the perception in the public markets that these sales may occur, may depress our stock price.
  • Jeff Edwards has significant ownership of our common stock and may have interests that conflict with those of our other stockholders.
  • Provisions of our charter documents and Delaware law could delay, discourage or prevent an acquisition of us, even if the acquisition would be beneficial to our stockholders, and could make it more difficult for our stockholders to change our management.
  • We pay dividends to holders of our common stock, but may reduce, suspend, or eliminate dividend payments in the future.
  • If securities analysts do not publish favorable reports about us or if we, or our industry, are the subject of unfavorable commentary, the price of our common stock could decline.
Management Discussion
  • Net revenue increased 38.7%, or $188.7 million to $676.7 million, while gross profit increased 42.7% to $216.7 million during the three months ended June 30, 2022 compared to 2021. The increase in net revenue and gross profit was primarily driven by the contribution of our recent acquisitions, selling price and product mix improvements as evidenced by the 24.9% increase in our price/mix metric, and increased sales volume of 7.0% on a same branch basis. Gross profit grew faster than revenue primarily due to higher selling prices and resulting leverage gained on labor and other costs of sales, which was partially offset by higher material costs caused by supply chain constraints and higher fuel costs. Inflationary pressures continue to contribute to higher material costs, particularly for spray foam and several complementary installed products, as some products continue to be difficult to source near volume and pricing levels secured in prior periods. Certain net revenue and industry metrics we use to monitor our operations are discussed in the "Key Measures of Performance" section below, and further details regarding results of our various end markets are discussed further in the "Net Revenue, Cost of Sales and Gross Profit" section below.

Content analysis

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