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IBP Installed Building Products

Filed: 5 Nov 20, 7:15am

Exhibit 99.1

 

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INSTALLED BUILDING PRODUCTS REPORTS

RECORD THIRD QUARTER 2020 RESULTS

Columbus, Ohio, November 5, 2020. Installed Building Products, Inc. (the “Company” or “IBP”) (NYSE:IBP), an industry-leading installer of insulation and complementary building products, announced today results for the third quarter ended September 30, 2020.

Third Quarter 2020 Highlights (Comparisons are to Prior Year Period)

 

  

Net revenue increased 6.1% to a record $420.5 million

  

Residential sales increased 6.2%

  

Large commercial sales increased 2.0%

  

Net income increased 32.4% to a record $28.1 million

  

Adjusted EBITDA* increased 18.4% to a record $66.2 million

  

Net income per diluted share increased 33.8% to $0.95

  

Adjusted net income per diluted share* increased 22.2% to $1.21

  

Net cash provided by operating activities for the nine-months ended September 30, 2020, increased 34.5% to $143.3 million

  

At September 30, 2020, IBP had $268.7 million in cash and cash equivalents, and investments, with nothing drawn on the existing $200 million revolving line of credit

  

In August 2020, acquired Storm Master Gutters, a New Jersey based provider of gutter installation services to residential and multi-family customers throughout the mid-Atlantic, with annual revenue of approximately $20.0 million

  

In August 2020, acquired North Charleston, SC and Pooler, GA branches from Energy One America, providers of spray foam, fiberglass, and air barrier installation services to residential, multi-family and commercial customers, with combined annual revenue of approximately $22.0 million

Recent Developments

 

  

In October 2020, acquired Insulation Contractors/Magellan Insulation – known within its local markets as Icon – a Washington based provider of insulation, waterproofing, and firestopping installation services to commercial and multi-family customers throughout the Pacific Northwest, with annual revenue of approximately $26.0 million

  

In October 2020, acquired Norkote a Washington based installer of specialty coatings for fire protection, insulation, and acoustics in commercial and industrial applications throughout the Pacific Northwest, with annual revenue of approximately $10.0 million

“2020 is shaping up to be a record year reflecting the success of our business model, positive end-market fundamentals, and the dedication and hard work of our employees,” stated Jeff Edwards, Chairman and Chief Executive Officer. “I am encouraged with IBP’s strong operating and financial performance, given the unprecedented economic and social effects the COVID-19 pandemic has caused throughout 2020. In addition, I am excited by the long-term opportunities within our residential and commercial markets as a result of our ongoing geographic, end-market, and end-product diversification strategies.”

 

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“We believe we are well positioned for 2021 to be another strong year for IBP, supported by favorable demand trends within the single-family housing market. While we expect near-term challenges will occur within the large commercial end-market, we believe long-term fundamentals remain intact and diversifying our end-market exposure continues to be an important component of our growth strategy. Our strong operating cash flow and solid balance sheet provides us with significant flexibility to navigate various end-market cycles, providing strong cash flow to fund our compelling acquisition strategy. With approximately $94 million of revenue acquired year to date, 2020 is shaping up to be another strong year of acquisition growth and we continue to have a robust pipeline of acquisition opportunities across multiple geographies, products and end markets,” concluded Mr. Edwards.    

Third Quarter 2020 Results Overview

For the third quarter of 2020, net revenue was a record $420.5 million, an increase of 6.1% from $396.4 million in the third quarter of 2019. On a same branch basis, net revenue improved 1.7% from the prior year quarter. Residential same branch sales growth was 1.6% in the quarter, attributable to price gains and end-market and product mix, compared to an increase in total completions of 8.9%. Given the timing of completions and when we perform our install work, we believe it is useful to look at our performance over multiple quarters. For the nine months ended September 30, 2020, residential same branch sales grew 4.4% compared to an increase in total completions of 2.2%. Our large commercial construction end-market increased 2.0% for the third quarter of 2020.

Gross profit improved 11.5% to a record $131.6 million from $118.1 million in the prior year quarter. Adjusted gross profit* as a percent of total revenue was 31.4% which adjusts for the Company’s share-based compensation expense and employee-related expenses associated with the COVID-19 pandemic, compared to 29.8% for the same period last year. Selling and administrative expense, as a percent of net revenue, was 18.8% consistent with the prior year quarter. Adjusted selling and administrative expense*, as a percent of net revenue, was 18.0% compared to 18.2% in the prior year quarter.

Net income was a record $28.1 million, or $0.95 per diluted share, compared to $21.2 million, or $0.71 per diluted share in the prior year quarter. Adjusted net income* was a record $35.9 million, or $1.21 per diluted share, compared to $29.7 million, or $0.99 per diluted share in the prior year quarter. Adjusted net income adjusts for the impact of non-core items in both periods, including an addback for non-cash amortization expense related to acquisitions.

Adjusted EBITDA* was a record $66.2 million, an 18.4% increase from $55.9 million in the prior year quarter, largely due to higher sales and improved gross profit margin compared to the prior year quarter.

Conference Call and Webcast

The Company will host a conference call and webcast on November 5, 2020 at 10:00 a.m. Eastern Time to discuss these results. To participate in the call, please dial 800-667-9916 (domestic) or 303-223-4361 (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 5, 2020, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 21971307.

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,

 

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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 180 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 financial and business model, the demand for our services and product offerings, the impact of the COVID-19 crisis on our business and end markets, 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, our ability to improve sales and profitability, the impact of the COVID-19 crisis on our financial results, and expectations for demand for our services and our earnings in 2020 and 2021. 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 duration, effect and severity of the COVID-19 crisis; the adverse impact of the COVID-19 crisis on our business and financial results, the economy and the markets we serve; general economic and industry conditions, the material price environment; the timing of increases in our selling prices, 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, 2019, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. 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 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 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.

 

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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, 
          2020                  2019                  2020                  2019         

Net revenue

   $420,486      $396,449      $1,211,756      $1,110,398   

Cost of sales

  288,839     278,362     836,710     795,616   
 

 

 

  

 

 

  

 

 

  

 

 

 

Gross profit

  131,647     118,087     375,046     314,782   

Operating expenses

    

Selling

  20,843     19,398     60,209     54,431   

Administrative

  58,240     55,098     177,495     156,022   

Amortization

  6,974     6,156     20,378     18,065   
 

 

 

  

 

 

  

 

 

  

 

 

 

Operating income

  45,590     37,435     116,964     86,264   

Other expense

    

Interest expense, net

  7,564     8,458     22,679     19,783   

Other

  176     155     305     381   
 

 

 

  

 

 

  

 

 

  

 

 

 

Income before income taxes

  37,850     28,822     93,980     66,100   

Income tax provision

  9,773     7,610     24,578     17,135   
 

 

 

  

 

 

  

 

 

  

 

 

 

Net income

   $28,077      $21,212      $69,402      $48,965   
 

 

 

  

 

 

  

 

 

  

 

 

 

Other comprehensive income (loss), net of tax:

    

Unrealized gain (loss) on cash flow hedge, net of tax (provision) benefit of ($408) and $575 for the three months ended September 30, 2020 and 2019, respectively, and $1,582 and $2,676 for the nine months ended September 30, 2020 and 2019, respectively

  1,176     (1,726)    (4,582)    (8,021)  
 

 

 

  

 

 

  

 

 

  

 

 

 

Comprehensive income

   $29,253      $19,486      $64,820      $40,944   
 

 

 

  

 

 

  

 

 

  

 

 

 

Basic net income per share

   $0.95      $0.71      $2.35      $1.65   
 

 

 

  

 

 

  

 

 

  

 

 

 

Diluted net income per share

   $0.95      $0.71      $2.33      $1.64   
 

 

 

  

 

 

  

 

 

  

 

 

 

Weighted average shares outstanding:

    

Basic

  29,478,816     29,785,548     29,549,460     29,741,555   

Diluted

  29,698,028     29,877,056     29,737,716     29,839,873   

 

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INSTALLED BUILDING PRODUCTS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except share and per share amounts)

 

   September 30,   December 31, 
   2020   2019 

ASSETS

    

Current assets

    

Cash and cash equivalents

   $267,471      $177,889   

Investments

   1,220      37,961   

Accounts receivable (less allowance for credit losses of $9,366 and $6,878 at September 30, 2020 and December 31, 2019, respectively)

   258,940      244,519   

Inventories

   70,218      74,606   

Other current assets

   37,607      46,974   
  

 

 

   

 

 

 

Total current assets

   635,456      581,949   

Property and equipment, net

   104,900      106,410   

Operating lease right-of-use assets

   50,873      45,691   

Goodwill

   206,782      195,652   

Intangibles, net

   155,398      153,562   

Other non-current assets

   12,036      16,215   
  

 

 

   

 

 

 

Total assets

   $1,165,445      $1,099,479   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities

    

Current maturities of long-term debt

   $24,156      $24,164   

Current maturities of operating lease obligations

   17,875      15,459   

Current maturities of finance lease obligations

   2,268      2,747   

Accounts payable

   86,898      98,871   

Accrued compensation

   43,310      33,636   

Other current liabilities

   47,734      39,272   
  

 

 

   

 

 

 

Total current liabilities

   222,241      214,149   

Long-term debt

   544,276      545,031   

Operating lease obligations

   32,431      29,785   

Finance lease obligations

   2,747      3,597   

Deferred income taxes

   3,704      9,175   

Other long-term liabilities

   55,859      47,711   
  

 

 

   

 

 

 

Total liabilities

   861,258      849,448   

Commitments and contingencies

    

Stockholders’ equity

    

Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

   -           -        

Common stock; $0.01 par value: 100,000,000 authorized, 33,127,310 and 32,871,504 issued and 29,800,535 and 30,016,340 shares outstanding at September 30, 2020 and December 31, 2019, respectively

   331      329   

Additional paid in capital

   197,486      190,230   

Retained earnings

   241,583      173,371   

Treasury stock; at cost: 3,326,775 and 2,855,164 shares at September 30, 2020 and December 31, 2019, respectively

   (123,488)     (106,756)  

Accumulated other comprehensive loss

   (11,725)     (7,143)  
  

 

 

   

 

 

 

Total stockholders’ equity

   304,187      250,031   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $1,165,445      $1,099,479   
  

 

 

   

 

 

 

 

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INSTALLED BUILDING PRODUCTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

   Nine months ended September 30, 
           2020                   2019         

Cash flows from operating activities

    

Net income

    $69,402      $48,965   

Adjustments to reconcile net income to net cash provided by operating activities

    

Depreciation and amortization of property and equipment

   30,850      28,575   

Amortization of operating lease right-of-use assets

   13,281      11,597   

Amortization of intangibles

   20,378      18,065   

Amortization of deferred financing costs and debt discount

   1,000      845   

Provision for credit losses

   3,839      3,173   

Write-off of debt issuance costs

   -      2,774   

Gain on sale of property and equipment

   (592)     (69)  

Noncash stock compensation

   8,050      6,442   

Deferred income taxes

   (3,405)     -   

Amortization of terminated interest rate swap

   508      -   

Changes in assets and liabilities, excluding effects of acquisitions

    

Accounts receivable

   (9,624)     (29,144)  

Inventories

   5,983      (852)  

Other assets

   9,027      (4,845)  

Accounts payable

   (14,746)     2,535   

Income taxes receivable/payable

   14,192      13,487   

Other liabilities

   (4,259)     4,969   
  

 

 

   

 

 

 

Net cash provided by operating activities

   143,884      106,517   
  

 

 

   

 

 

 

Cash flows from investing activities

    

Purchases of investments

   (776)     (17,352)  

Maturities of short term investments

   37,473      22,560   

Purchases of property and equipment

   (25,515)     (37,267)  

Acquisitions of businesses

   (38,825)     (24,740)  

Proceeds from sale of property and equipment

   828      563   

Other

   (2,662)     (1,795)  
  

 

 

   

 

 

 

Net cash used in investing activities

   (29,477)     (58,031)  
  

 

 

   

 

 

 

Cash flows from financing activities

    

Proceeds from senior notes

   -      300,000   

Payments on term loan

   -      (195,750)  

Proceeds from vehicle and equipment notes payable

   17,759      23,767   

Debt issuance costs

   (157)     (5,191)  

Principal payments on long-term debt

   (19,801)     (15,278)  

Principal payments on finance lease obligations

   (1,998)     (3,398)  

Acquisition-related obligations

   (3,896)     (5,797)  

Repurchase of common stock

   (15,759)     -   

Surrender of common stock awards by employees

   (973)     (2,331)  
  

 

 

   

 

 

 

Net cash used in financing activities

   (24,825)     96,022   
  

 

 

   

 

 

 

Net change in cash and cash equivalents

   89,582      144,508   

Cash and cash equivalents at beginning of period

   177,889      90,442   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

    $267,471      $234,950   
  

 

 

   

 

 

 

Supplemental disclosures of cash flow information

    

Net cash paid during the period for:

    

Interest

    $24,130      $17,746   

Income taxes, net of refunds

   13,798      3,790   

Supplemental disclosure of noncash activities

    

Right-of-use assets obtained in exchange for operating lease obligations

   18,340      11,593   

Termination of operating lease obligations and right-of-use assets

   -      (2,814)  

Property and equipment obtained in exchange for finance lease obligations

   853      2,175   

Seller obligations in connection with acquisition of businesses

   6,965      4,322   

Unpaid purchases of property and equipment included in accounts payable

   1,229      1,527   

 

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Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Gross Profit and Adjusted Selling and Administrative Expense measure performance by adjusting EBITDA, GAAP net income, 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.

 

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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, 
          2020                  2019                  2020                  2019         

Net income, as reported

   $28,077      $21,212      $69,402      $48,965   

Adjustments for adjusted net income:

    

Write-off of capitalized loan costs

  -     2,774     -     2,774   

Share based compensation expense

  2,635     2,099     8,050     6,441   

Acquisition related expenses

  801     303     2,006     1,497   

COVID-19 expenses 1

  148     -     798     -   

Branch start-up costs 2

  -     129     -     746   

Amortization expense 3

  6,974     6,156     20,378     18,065   

Miscellaneous non-operating income

  -     -     (279)    -   

Tax impact of adjusted items at normalized tax rate 4

  (2,745)    (2,980)    (8,048)    (7,676)  
 

 

 

  

 

 

  

 

 

  

 

 

 

Adjusted net income

   $35,890      $29,693      $92,307      $70,812   
 

 

 

  

 

 

  

 

 

  

 

 

 

Weighted average shares outstanding (diluted)

  29,698,028     29,877,056     29,737,716     29,839,873   

Diluted net income per share, as reported

   $0.95      $0.71      $2.33      $1.64   

Adjustments for adjusted net income, net of tax impact, per diluted share 5

  0.26     0.28     0.77     0.73   
 

 

 

  

 

 

  

 

 

  

 

 

 

Diluted adjusted net income per share

   $1.21      $0.99      $3.10      $2.37   
 

 

 

  

 

 

  

 

 

  

 

 

 

1  Addback of employee pay, employee medical expenses, and legal fees directly attributable to COVID-19

2  Addback of costs related to organic branch expansion for Alpha locations

3  Addback of all non-cash amortization resulting from business combinations

4  Normalized effective tax rate of 26.0% applied to both periods presented

5  Includes adjustments related to the items noted above, net of tax

 

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INSTALLED BUILDING PRODUCTS, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

ADJUSTED GROSS PROFIT CALCULATIONS

(unaudited, in thousands)

 

   Three months ended September 30,   Nine months ended September 30, 
           2020                   2019                   2020                   2019         

Gross profit

    $131,647       $118,087       $375,046       $314,782   

Share based compensation expense

   60      97      221      280   

COVID-19 expenses 1

   117      -          425      -       

Branch start-up costs 2

   -          129      -          746   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted gross profit

    $131,824       $118,313       $375,692       $315,808   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted gross profit - % Total Revenue

   31.4%     29.8%     31.0%     28.4%  

1  Addback of employee pay and employee medical expenses directly attributable to COVID-19

2  Addback of costs related to organic branch expansion for Alpha locations

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, 
           2020                   2019                   2020                   2019         

Selling expense

    $20,843       $19,398       $60,209       $54,431   

Administrative expense

   58,240      55,098      177,495      156,022   
  

 

 

   

 

 

   

 

 

   

 

 

 

Selling and Administrative

    $79,083       $74,496       $237,704       $210,453   
  

 

 

   

 

 

   

 

 

   

 

 

 

Share based compensation expense

   2,575      2,002      7,829      6,161   

Acquisition related expenses

   801      303      2,006      1,497   

COVID-19 expenses 1

   31      -          373      -       
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Selling and Administrative

    $75,676       $72,191       $227,496       $202,795   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adj. Selling and Administrative - % Total Revenue

   18.0%     18.2%     18.8%     18.3%  

1  Addback of employee pay, employee medical expenses and legal fees directly attributable to COVID-19

 

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The table below reconciles Adjusted EBITDA to the most directly comparable GAAP financial measure, net income, for the periods presented therein.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

ADJUSTED EBITDA CALCULATIONS

(unaudited, in thousands)

 

   Three months ended September 30,   Nine months ended September 30, 
           2020                   2019                   2020                   2019         

Adjusted EBITDA:

        

Net income (GAAP)

    $28,077       $21,212       $69,402       $48,965   

Interest expense

   7,564      8,458      22,679      19,783   

Provision for income taxes

   9,773      7,610      24,578      17,135   

Depreciation and amortization

   17,201      16,117      51,230      46,640   

Miscellaneous non-operating income

   -          -          (279)     -       
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   62,615      53,397      167,610      132,523   
  

 

 

   

 

 

   

 

 

   

 

 

 

Acquisition related expenses

   801      303      2,006      1,497   

Share based compensation expense

   2,635      2,099      8,050      6,441   

COVID-19 expenses 1

   148      -          798      -       

Branch start-up costs

   -          129      -          746   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

    $66,199       $55,928       $178,464       $141,207   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

   15.7%     14.1%     14.7%     12.7%  

1  Addback of employee pay, employee medical expenses and legal fees directly attributable to COVID-19

 

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INSTALLED BUILDING PRODUCTS, INC.

SUPPLEMENTARY TABLE

(unaudited)

 

   Three months ended September 30,   Nine months ended September 30, 
   2020   2019   2020   2019 
Period-over-period Growth        

Sales Growth

   6.1%     13.6%     9.1%     12.9%  

Same Branch Sales Growth

   1.7%     9.3%     5.1%     8.2%  

Single-Family Sales Growth

   1.8%     10.3%     4.0%     11.3%  

Single-Family Same Branch Sales Growth

   -3.1%     4.9%     -0.5%     5.3%  

Residential Sales Growth

   6.2%     10.7%     8.5%     11.2%  

Residential Same Branch Sales Growth

   1.6%     6.0%     4.4%     6.0%  
Same Branch Sales Growth                 

Volume Growth1

   2.2%     2.9%     0.0%     2.3%  

Price/Mix Growth1

   0.2%     5.4%     5.5%     5.1%  

Large Commercial Construction Sales Growth

   2.0%     19.4%     7.5%     15.7%  
U.S. Housing Market2                 

Total Completions Growth

   8.9%     1.5%     2.2%     2.6%  

Single-Family Completions Growth

   2.6%     3.7%     1.7%     4.8%  

1  Excludes the large commercial end market

2  U.S. Census Bureau data, as revised

 

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INSTALLED BUILDING PRODUCTS, INC.

INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS

(unaudited, in thousands)

 

  Three months ended September 30,  Nine months ended September 30, 
      2020          % Total          2019          % Total          2020          % Total          2019          % Total     

Revenue Increase

        

Same Branch

  $6,756     28.1%    $32,570     68.6%    $56,884     56.1%    $80,754     63.5%  

Acquired

  17,282     71.9%    14,880     31.4%    44,474     43.9%    46,333     36.5%  
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total

  $  24,038     100.0%    $  47,450     100.0%    $  101,358     100.0%    $  127,087     100.0%  
     Adj EBITDA
Contribution
     Adj EBITDA
Contribution
     Adj EBITDA
Contribution
     Adj EBITDA
Contribution
 

Adjusted EBITDA

        

Same Branch

  $8,126     120.3%    $9,589     29.4%    $30,629     53.8%    $14,037     17.4%  

Acquired

  2,145     12.4%    2,589     17.4%    6,626     14.9%    6,433     13.9%  
 

 

 

   

 

 

   

 

 

   

 

 

  

Total

  $10,271     42.7%    $12,178     25.7%    $37,255     36.8%    $20,470     16.1%  

 

Source: Installed Building Products, Inc.

Contact Information:

Investor Relations:

614-221-9944

investorrelations@installed.net

 

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