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Installed Building Products Reports Record Second Quarter 2020 Results

 

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, 2020.

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

  • Net revenue increased 6.0% to a second quarter record of $393.9 million, despite reduced volume associated with branches temporarily closed during the quarter

  • Residential sales increased 5.6%

  • Large commercial sales increased 7.5%

  • Net income increased 33.9% to a record $25.3 million

  • Adjusted EBITDA* increased 27.1% to a record $63.1 million

  • Net income per diluted share increased 36.5% to $0.86

  • Adjusted net income per diluted share* increased 28.7% to $1.12

  • Net cash provided by operating activities for the three months ended June 30, 2020 increased 90.7% to $69.6 million

  • At June 30, 2020, IBP had $269.2 million in cash and cash equivalents, and investments, with nothing drawn on the existing $200 million revolving line of credit

  • In June 2020, acquired Nationwide Gutter, LLC, a Texas based provider of gutter installation and repair services primarily to multi-family and commercial customers, with annual revenue of approximately $5.2 million

"Despite the unprecedented challenges caused by the COVID-19 health crisis, IBP achieved multiple milestones for the 2020 second quarter including record second quarter sales and profitability," stated Jeff Edwards, Chairman and Chief Executive Officer. "These record results demonstrate the success of our ongoing geographic, end-market, and end-product diversification strategies, the benefits of our pricing strategies, and the hard work and dedication of our employees. In addition, the homebuilding industry has rebounded quickly during the second quarter and we experienced significant growth in our multi-family and commercial end-markets during the quarter. Based on our record second quarter results, current industry backlogs, and our solid liquidity position, we started closing transactions from our strong acquisition pipeline in June".

"Across our national footprint, our branches continue to follow federal, state, and local requirements in response to COVID-19. At the start of the second quarter, several of our branches where construction was not deemed essential were closed, which impacted revenue by approximately $10 million to $12 million. Operations have resumed across all IBP branches, but several recently re-opened locations are not yet at full capacity. We continue to closely monitor the evolving COVID-19 crisis and we will make the necessary adjustments to protect and support our employees and customers across the country".

"While overall housing trends have improved significantly from April and May of this year, our single-family market demand may be temporarily impacted by the normal lag between starts and completions as a result of the market disruptions that occurred during the early stages of the pandemic. We believe that IBP’s growing presence within the multi-family and commercial end markets and the industry backlog of single-family units under construction, combined with our acquisition strategy, will help us navigate any near-term softness created by the April and May declines in single-family housing starts. Overall, our operating and financial results continue to demonstrate the compelling business model we have created, which has allowed us to effectively respond to recent market conditions, while also providing IBP with a strong platform for long-term value creation," concluded Mr. Edwards.

Second Quarter 2020 Results Overview

For the second quarter of 2020, net revenue was $393.9 million, an increase of 6.0% from $371.8 million in the second quarter of 2019. On a same branch basis, net revenue improved 2.3% from the prior year quarter. Residential same branch sales growth was 2.5% in the quarter, attributable to price gains and more favorable customer and product mix, compared to a decline in total completions of 2.9%. Our large commercial construction end-market increased 7.5% for the second quarter of 2020.

Gross profit improved 18.5% to $127.1 million from $107.3 million in the prior year quarter. Adjusted gross profit* as a percent of total revenue was the highest we have reported as a public company of 32.4% which adjusts for the Company’s share-based compensation expense, branch start-up costs and employee-related expenses associated with the COVID-19 pandemic, compared to 29.0% for the same period last year. Selling and administrative expense, as a percent of net revenue, was 19.8% compared to 18.9% in the prior year quarter. Adjusted selling and administrative expense*, as a percent of net revenue, was 18.9% compared to 18.2% in the prior year quarter. This increase was attributable to higher variable employee expenses and insurance reserves.

Net income was $25.3 million, or $0.86 per diluted share, compared to $18.9 million, or $0.63 per diluted share in the prior year quarter. Adjusted net income* was $33.2 million, or $1.12 per diluted share, compared to $25.9 million, or $0.87 per diluted share in the prior year quarter. Adjusted net income adjusts for the impact of non-core items in both periods, including COVID-19 expenses and an addback for non-cash amortization expense related to acquisitions.

Adjusted EBITDA* was $63.1 million, a 27.1% increase from $49.6 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 Thursday, August 6, 2020 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 6, 2020, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13705636.

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 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, 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 capitalize on the new home and commercial construction recovery, 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. 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.

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,



2020

 

2019

 

2020

 

2019

Net revenue


$

393,939

 


$

371,814

 


$

791,270

 


$

713,949

 

Cost of sales


 

266,800

 


 

264,557

 


 

547,871

 


 

517,254

 

Gross profit


 

127,139

 


 

107,257

 


 

243,399

 


 

196,695

 

Operating expenses









Selling


 

19,011

 


 

17,903

 


 

39,366

 


 

35,033

 

Administrative


 

59,060

 


 

52,493

 


 

119,255

 


 

100,924

 

Amortization


 

6,724

 


 

6,021

 


 

13,404

 


 

11,909

 

Operating income


 

42,344

 


 

30,840

 


 

71,374

 


 

48,829

 

Other expense









Interest expense, net


 

7,757

 


 

5,649

 


 

15,115

 


 

11,325

 

Other


 

129

 


 

101

 


 

129

 


 

226

 

Income before income taxes


 

34,458

 


 

25,090

 


 

56,130

 


 

37,278

 

Income tax provision


 

9,121

 


 

6,171

 


 

14,805

 


 

9,525

 

Net income


$

25,337

 


$

18,919

 


$

41,325

 


$

27,753

 









 

Other comprehensive loss, net of tax:









Unrealized loss on cash flow hedge, net of tax benefit of $51 and $1,180 for the three months ended June 30, 2020 and 2019, respectively, and $1,990 and $2,101 for the six months ended June 30, 2020 and 2019, respectively


 

(150

)


 

(3,546

)


 

(5,758

)


 

(6,295

)

Comprehensive income


$

25,187

 


$

15,373

 


$

35,567

 


$

21,458

 









 

Basic net income per share


$

0.86

 


$

0.64

 


$

1.40

 


$

0.93

 

Diluted net income per share


$

0.86

 


$

0.63

 


$

1.39

 


$

0.93

 

Weighted average shares outstanding:









Basic


 

29,447,121

 


 

29,758,071

 


 

29,584,782

 


 

29,719,194

 

Diluted


 

29,584,167

 


 

29,834,748

 


 

29,757,560

 


 

29,820,917

 


INSTALLED BUILDING PRODUCTS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

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





 



June 30,

 

December 31,



2020

 

2019

ASSETS





Current assets





Cash and cash equivalents


$

252,488

 


$

177,889

 

Investments


 

16,688

 


 

37,961

 

Accounts receivable (less allowance for credit losses of $9,617 and $6,878 at June 30, 2020 and December 31, 2019, respectively)


 

247,627

 


 

244,519

 

Inventories


 

69,149

 


 

74,606

 

Other current assets


 

33,996

 


 

46,974

 

Total current assets


 

619,948

 


 

581,949

 

Property and equipment, net


 

103,422

 


 

106,410

 

Operating lease right-of-use assets


 

47,448

 


 

45,691

 

Goodwill


 

200,264

 


 

195,652

 

Intangibles, net


 

147,117

 


 

153,562

 

Other non-current assets


 

12,851

 


 

16,215

 

Total assets


$

1,131,050

 


$

1,099,479

 





 

LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities





Current maturities of long-term debt


$

24,230

 


$

24,164

 

Current maturities of operating lease obligations


 

16,209

 


 

15,459

 

Current maturities of finance lease obligations


 

2,333

 


 

2,747

 

Accounts payable


 

81,386

 


 

98,871

 

Accrued compensation


 

36,520

 


 

33,636

 

Other current liabilities


 

53,371

 


 

39,272

 

Total current liabilities


 

214,049

 


 

214,149

 

Long-term debt


 

544,976

 


 

545,031

 

Operating lease obligations


 

30,721

 


 

29,785

 

Finance lease obligations


 

3,051

 


 

3,597

 

Deferred income taxes


 

5,022

 


 

9,175

 

Other long-term liabilities


 

60,495

 


 

47,711

 

Total liabilities


 

858,314

 


 

849,448

 

Commitments and contingencies





Stockholders' equity





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


 

-

 


 

-

 

Common stock; $0.01 par value: 100,000,000 authorized, 33,124,237 and 32,871,504 issued and 29,799,188 and 30,016,340 shares outstanding at June 30, 2020 and December 31, 2019, respectively


 

331

 


 

329

 

Additional paid in capital


 

195,288

 


 

190,230

 

Retained earnings


 

213,506

 


 

173,371

 

Treasury stock; at cost: 3,325,049 and 2,855,164 shares at June 30, 2020 and December 31, 2019, respectively


 

(123,488

)


 

(106,756

)

Accumulated other comprehensive loss


 

(12,901

)


 

(7,143

)

Total stockholders' equity


 

272,736

 


 

250,031

 

Total liabilities and stockholders' equity


$

1,131,050

 


$

1,099,479

 





 

INSTALLED BUILDING PRODUCTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)




 


Six months ended June 30,


 

2020

 

 

2019

Cash flows from operating activities




Net income

$

41,325

 


$

27,753

 

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




Depreciation and amortization of property and equipment

 

20,623

 


 

18,614

 

Amortization of operating lease right-of-use assets

 

8,545

 


 

7,607

 

Amortization of intangibles

 

13,404

 


 

11,909

 

Amortization of deferred financing costs and debt discount

 

670

 


 

564

 

Provision for credit losses

 

2,668

 


 

1,605

 

Gain on sale of property and equipment

 

(144

)


 

(156

)

Noncash stock compensation

 

5,415

 


 

4,345

 

Deferred income taxes

 

(1,679

)


 

-

 

Changes in assets and liabilities, excluding effects of acquisitions




Accounts receivable

 

(3,158

)


 

(17,876

)

Inventories

 

6,072

 


 

(1,650

)

Other assets

 

9,351

 


 

(1,495

)

Accounts payable

 

(18,504

)


 

(1,253

)

Income taxes receivable/payable

 

16,015

 


 

6,347

 

Other liabilities

 

4,922

 


 

(3,914

)


 

105,525

 


 

52,400

 

Cash flows from investing activities




Purchases of investments

 

(776

)


 

(17,352

)

Maturities of short term investments

 

22,050

 


 

17,560

 

Purchases of property and equipment

 

(16,345

)


 

(17,778

)

Acquisitions of businesses

 

(12,625

)


 

(21,290

)

Proceeds from sale of property and equipment

 

314

 


 

452

 

Other

 

(1,340

)


 

(876

)


 

(8,722

)


 

(39,284

)

Cash flows from financing activities




Payments on term loan

 

-

 


 

(2,000

)

Proceeds from vehicle and equipment notes payable

 

12,768

 


 

13,783

 

Debt issuance costs

 

(157

)


 

-

 

Principal payments on long-term debt

 

(13,205

)


 

(9,751

)

Principal payments on finance lease obligations

 

(1,392

)


 

(2,481

)

Acquisition-related obligations

 

(3,486

)


 

(5,039

)

Repurchase of common stock

 

(15,759

)


 

-

 

Surrender of common stock awards by employees

 

(973

)


 

(2,323

)


 

(22,204

)


 

(7,811

)

Net change in cash and cash equivalents

 

74,599

 


 

5,305

 

Cash and cash equivalents at beginning of period

 

177,889

 


 

90,442

 

Cash and cash equivalents at end of period

$

252,488

 


$

95,747

 

Supplemental disclosures of cash flow information




Net cash paid during the period for:




Interest

$

13,006

 


$

11,793

 

Income taxes, net of refunds

 

476

 


 

3,595

 

Supplemental disclosure of noncash activities




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

 

10,229

 


 

8,677

 

Property and equipment obtained in exchange for finance lease obligations

 

600

 


 

1,830

 

Seller obligations in connection with acquisition of businesses

 

4,037

 


 

3,162

 

Unpaid purchases of property and equipment included in accounts payable

 

1,981

 


 

2,334

 

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.

INSTALLED BUILDING PRODUCTS, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

ADJUSTED NET INCOME CALCULATIONS

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








 


Three months ended June 30,

 

Six months ended June 30,


2020

 

2019

 

2020

 

2019








 

Net income, as reported

$

25,337

 


$

18,919

 


$

41,325

 


$

27,753

 

Adjustments for adjusted net income:








Share based compensation expense

 

2,733

 


 

2,404

 


 

5,415

 


 

4,342

 

Acquisition related expenses

 

522

 


 

606

 


 

1,205

 


 

1,194

 

COVID-19 expenses 1

 

650

 


 

-

 


 

650

 


 

-

 

Branch start-up costs 2

 

-

 


 

357

 


 

-

 


 

617

 

Amortization expense 3

 

6,724

 


 

6,021

 


 

13,404

 


 

11,909

 

Miscellaneous non-operating income

 

-

 


 

-

 


 

(279

)


 

-

 

Tax impact of adjusted items at normalized tax rate 4

 

(2,764

)


 

(2,441

)


 

(5,303

)


 

(4,696

)

Adjusted net income

$

33,202

 


$

25,866

 


$

56,417

 


$

41,119

 

Weighted average shares outstanding (diluted)

 

29,584,167

 


 

29,834,748

 


 

29,757,560

 


 

29,820,917

 

Diluted net income per share, as reported

$

0.86

 


$

0.63

 


$

1.39

 


$

0.93

 

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

 

0.26

 


 

0.24

 


 

0.51

 


 

0.45

 

Diluted adjusted net income per share

$

1.12

 


$

0.87

 


$

1.90

 


$

1.38

 

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


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.

INSTALLED BUILDING PRODUCTS, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

ADJUSTED GROSS PROFIT CALCULATIONS

(unaudited, in thousands)








 


Three months ended June 30,

 

Six months ended June 30,


2020

 

2019

 

2020

 

2019








 

Gross profit

$

127,139

 


$

107,257

 


$

243,399

 


$

196,695

 

Share based compensation expense

 

65

 


 

105

 


 

161

 


 

183

 

COVID-19 expenses 1

 

307

 


 

-

 


 

307

 


 

-

 

Branch start-up costs 2

 

-

 


 

357

 


 

-

 


 

617

 

Adjusted gross profit

$

127,511

 


$

107,719

 


$

243,867

 


$

197,495

 

Adjusted gross profit - % Total Revenue

 

32.4

%


 

29.0

%


 

30.8

%


 

27.7

%

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 June 30,

 

Six months ended June 30,


2020

 

2019

 

2020

 

2019








 

Selling expense

$

19,011

 


$

17,903

 


$

39,366

 


$

35,033

 

Administrative expense

 

59,060

 


 

52,493

 


 

119,255

 


 

100,924

 

Selling and Administrative

$

78,071

 


$

70,396

 


$

158,621

 


$

135,957

 

Share based compensation expense

 

2,668

 


 

2,298

 


 

5,254

 


 

4,159

 

Acquisition related expenses

 

522

 


 

606

 


 

1,205

 


 

1,194

 

COVID-19 expenses 1

 

342

 


 

-

 


 

342

 


 

-

 

Adjusted Selling and Administrative

$

74,539

 


$

67,492

 


$

151,820

 


$

130,604

 

Adj. Selling and Administrative - % Total Revenue

 

18.9

%


 

18.2

%


 

19.2

%


 

18.3

%

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


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


INSTALLED BUILDING PRODUCTS, INC.


RECONCILIATION OF GAAP TO NON-GAAP MEASURES


ADJUSTED EBITDA CALCULATIONS


(unaudited, in thousands)




 

 

 

 

 

 

 




Three months ended June 30,

 

Six months ended June 30,




2020

 

2019

 

2020

 

2019


Adjusted EBITDA:









Net income (GAAP)

$

25,337

 


$

18,919

 


$

41,325

 


$

27,753

 



Interest expense

 

7,757

 


 

5,649

 


 

15,115

 


 

11,325

 



Provision for income taxes

 

9,121

 


 

6,171

 


 

14,805

 


 

9,525

 



Depreciation and amortization

 

16,974

 


 

15,523

 


 

34,029

 


 

30,523

 



Miscellaneous non-operating income

 

-

 


 

-

 


 

(279

)


 

-

 


EBITDA

 

59,189

 


 

46,262

 


 

104,995

 


 

79,126

 



Acquisition related expenses

 

522

 


 

606

 


 

1,205

 


 

1,194

 



Share based compensation expense

 

2,733

 


 

2,404

 


 

5,415

 


 

4,342

 



COVID-19 expenses 1

 

650

 


 

-

 


 

650

 


 

-

 



Branch start-up costs

 

-

 


 

357

 


 

-

 


 

617

 


Adjusted EBITDA

$

63,094

 


$

49,629

 


$

112,265

 


$

85,279

 


Adjusted EBITDA margin

 

16.0

%


 

13.3

%


 

14.2

%


 

11.9

%


1

Addback of employee pay, 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,


2020

 

2019

 

2020

 

2019

Period-over-period Growth








Sales Growth

6.0%


11.8%


10.8%


12.6%

Same Branch Sales Growth

2.3%


7.8%


7.0%


7.6%








 

Single-Family Sales Growth

-0.2%


9.5%


5.1%


11.8%

Single-Family Same Branch Sales Growth

-3.5%


4.4%


1.0%


5.4%








 

Residential Sales Growth

5.6%


9.5%


9.7%


11.5%

Residential Same Branch Sales Growth

2.5%


5.2%


5.9%


6.0%








 

Same Branch Sales Growth








Volume Growth1

-2.1%


0.7%


-1.2%


2.0%

Price/Mix Growth1

4.8%


5.7%


8.4%


4.9%








 

Large Commercial Construction Sales Growth

7.5%


21.0%


10.6%


13.7%








 

U.S. Housing Market2








Total Completions Growth

-2.9%


0.5%


-1.7%


3.2%

Single-Family Completions Growth

-2.5%


6.3%


0.7%


5.5%

1 Excludes the large commercial end market

2 U.S. Census Bureau data, as revised


INSTALLED BUILDING PRODUCTS, INC.

INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS

(unaudited, in thousands)
















 


Three months ended June 30,

 

Six months ended June 30,


2020

 

% Total

 

2019

 

% Total

 

2020

 

% Total

 

2019

 

% Total

Revenue Increase
















Same Branch

$

8,680


39.2

%


$

25,890


66.0

%


$

50,128


64.8

%


$

48,184


60.5

%

Acquired

 

13,444


60.8

%


 

13,340


34.0

%


 

27,192


35.2

%


 

31,453


39.5

%

Total

$

22,124


100.0

%


$

39,230


100.0

%


$

77,320


100.0

%


$

79,637


100.0

%
















 
















 
















 




Adj EBITDA

 

 

 

Adj EBITDA

 

 

 

Adj EBITDA

 

 

 

Adj EBITDA




Contribution

 

 

 

Contribution

 

 

 

Contribution

 

 

 

Contribution

Adjusted EBITDA
















Same Branch

$

11,217


129.2

%


$

2,101


8.1

%


$

22,503


44.9

%


$

4,447


9.2

%

Acquired

 

2,247


16.7

%


 

1,960


14.7

%


 

4,481


16.5

%


 

3,843


12.2

%

Total

$

13,464


60.9

%


$

4,061


10.4

%


$

26,984


34.9

%


$

8,291


10.4

%

 

Contacts

Investor Relations:
614-221-9944
investorrelations@installed.net