Installed Building Products Reports Record First Quarter 2022 Results and Declares Regular Quarterly Cash Dividend
First Quarter 2022 Highlights (Comparisons are to Prior Year Period)
-
Net revenue increased 34.4% to a quarterly record
$587.5 million -
Installation revenue increased 30.0% to
$561.6 million , driven by strong growth across IBP’s residential new construction, repair and remodel, and commercial markets -
Other revenue, which includes IBP’s manufacturing and distribution operations, increased from
$5.3 million to$26.7 million , driven by strong operating results and a recent acquisition
-
Installation revenue increased 30.0% to
-
Net income increased 95.6% to
$33.8 million -
Adjusted EBITDA* increased 54.5% to
$84.2 million -
Net income per diluted share increased 96.6% to
$1.14 -
Adjusted net income per diluted share* increased 71.1% to
$1.54 - Price/mix growth increased by a record 14.6% during the first quarter
-
IBP amended and increased its asset-based lending credit facility to provide up to
$250 million in borrowing capacity with an extended maturity date ofFebruary 17, 2027 -
At
March 31, 2022 , IBP had$267.4 million in cash, cash equivalents, and investments -
Declared first quarter dividend of
$0.315 per share and an annual variable dividend of$0.90 per share, which were paid to shareholders onMarch 31, 2022 -
Returned
$85.3 million to shareholders in the first quarter through dividends and share repurchases -
IBP’s Board of Directors declared the second quarter regular cash dividend of
$0.315 per share
“Record first quarter results were the result of strong market dynamics within our core residential housing markets. Our local branches continue to prudently align our selling prices with the value we offer our customers, supporting profitability and strong incremental margins. Gross margin expanded 60 basis points over the past year but ongoing supply constraints required us to make material purchases outside of our typical supply chain channels again this quarter. With a combination of strong volume and pricing growth during the period, we leveraged SG&A expenses and produced record first quarter earnings, adjusted earnings, and adjusted EBITDA,” stated
“With the substantial number of permitted new housing units that have yet to be started, residential construction is expected to remain supportive of our business in 2022. We also expect the seasonal trends we typically experience throughout the year to be more muted in 2022 given the strong industry backlog. Overall, 2022 is shaping up to be another year of profitable growth and value creation for IBP,” concluded
Acquisition Update
IBP continues to prioritize profitable growth through its proven strategy of acquiring well-run installers of insulation and complementary building products. For 2022, IBP expects to acquire at least
During the 2022 first quarter and April, IBP announced the following acquisitions:
-
March 2022 - Pisgah Insulation and Fireplaces ofNC, LLC , aMills River, North Carolina based installer of spray foam insulation, fiberglass insulation, and fireplaces into new residential homes in theAsheville, North Carolina market, with annual revenue of approximately$8.5 million . -
April 2022 -Central Aluminum Supply Corporation , aTrenton, New Jersey based distributor of gutter supplies and accessories to residential, multifamily, and commercial markets, primarily in existing or retrofit construction projects across theU.S. Northeast and Mid-Atlantic, with annual revenue of approximately$45.0 million .
2022 Second Quarter Regular Cash Dividend and Share Repurchases
IBP’s Board of Directors has approved the Company’s quarterly cash dividend of
IBP repurchased 510,943 shares of its common stock at a total cost of
First Quarter 2022 Results Overview
For the first quarter of 2022, net revenue was a record
Gross profit improved 37.5% to
Selling and administrative expense, as a percent of net revenue, was 17.8% compared to 19.7% in the prior year quarter. Adjusted selling and administrative expense*, as a percent of net revenue, was 16.9% compared to 18.7% in the prior year quarter.
Net income was
Adjusted EBITDA* was
Conference Call and Webcast
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About
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 conditions, our financial and business model, payment of dividends, the demand for our services and product offerings, trends in the large commercial business, the impact of the COVID-19 crisis on our business and end markets, supply chain and material constraints, 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, the impact of the COVID-19 crisis on our financial results, 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 duration, effect and severity of the COVID-19 crisis; any recurrence of COVID-19, including through any new variant strains of the virus, and the related surges in positive COVID-19 cases; the adverse impact of the COVID-19 crisis on our business and financial results, our supply chain, the economy and the markets we serve; general economic and industry conditions; 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
*Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||||
(unaudited, in thousands, except share and per share amounts) | |||||
Three months ended |
|||||
2022 |
2021 |
||||
Net revenue |
$ |
587,492 |
$ |
437,066 |
|
Cost of sales |
|
415,089 |
|
311,639 |
|
Gross profit |
|
172,403 |
|
125,427 |
|
Operating expenses | |||||
Selling |
|
25,192 |
|
20,858 |
|
Administrative |
|
79,144 |
|
65,077 |
|
Amortization |
|
11,097 |
|
8,396 |
|
Operating income |
|
56,970 |
|
31,096 |
|
Other expense, net | |||||
Interest expense, net |
|
10,600 |
|
7,574 |
|
Other expense |
|
145 |
|
81 |
|
Income before income taxes |
|
46,225 |
|
23,441 |
|
Income tax provision |
|
12,403 |
|
6,150 |
|
Net income |
$ |
33,822 |
$ |
17,291 |
|
Other comprehensive income, net of tax: | |||||
Net change on cash flow hedges, net of tax provision of |
|
18,111 |
|
10,157 |
|
Comprehensive income |
$ |
51,933 |
$ |
27,448 |
|
Earnings Per Share: | |||||
Basic net income per share |
$ |
1.15 |
$ |
0.59 |
|
Diluted net income per share |
$ |
1.14 |
$ |
0.58 |
|
Weighted average shares outstanding: | |||||
Basic |
|
29,302,396 |
|
29,286,044 |
|
Diluted |
|
29,580,731 |
|
29,613,484 |
|
Cash dividends declared per share |
$ |
1.22 |
$ |
0.30 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(unaudited, in thousands, except share and per share amounts) | ||||||||
|
||||||||
2022 |
2021 |
|||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents |
$ |
217,434 |
|
$ |
333,485 |
|
||
Investments |
|
49,980 |
|
|
- |
|
||
Accounts receivable (less allowance for credit losses of |
|
345,586 |
|
|
312,767 |
|
||
Inventories |
|
160,023 |
|
|
143,039 |
|
||
Prepaid expenses and other current assets |
|
69,205 |
|
|
70,025 |
|
||
Total current assets |
|
842,228 |
|
|
859,316 |
|
||
Property and equipment, net |
|
107,817 |
|
|
105,933 |
|
||
Operating lease right-of-use assets |
|
69,033 |
|
|
69,871 |
|
||
|
325,347 |
|
|
322,517 |
|
|||
Customer relationships, net |
|
173,868 |
|
|
178,264 |
|
||
Other intangibles, net |
|
84,092 |
|
|
86,157 |
|
||
Other non-current assets |
|
50,364 |
|
|
31,144 |
|
||
Total assets |
$ |
1,652,749 |
|
$ |
1,653,202 |
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt |
$ |
30,668 |
|
$ |
30,839 |
|
||
Current maturities of operating lease obligations |
|
23,505 |
|
|
23,224 |
|
||
Current maturities of finance lease obligations |
|
1,801 |
|
|
1,747 |
|
||
Accounts payable |
|
150,643 |
|
|
132,705 |
|
||
Accrued compensation |
|
56,639 |
|
|
50,964 |
|
||
Other current liabilities |
|
64,272 |
|
|
68,090 |
|
||
Total current liabilities |
|
327,528 |
|
|
307,569 |
|
||
Long-term debt |
|
829,638 |
|
|
832,193 |
|
||
Operating lease obligations |
|
45,091 |
|
|
46,075 |
|
||
Finance lease obligations |
|
3,254 |
|
|
3,297 |
|
||
Deferred income taxes |
|
11,242 |
|
|
4,819 |
|
||
Other long-term liabilities |
|
45,765 |
|
|
42,409 |
|
||
Total liabilities |
|
1,262,518 |
|
|
1,236,362 |
|
||
Commitments and contingencies | ||||||||
Stockholders' equity | ||||||||
Preferred Stock; |
|
- |
|
|
- |
|
||
Common stock; |
|
334 |
|
|
333 |
|
||
Additional paid in capital |
|
218,642 |
|
|
211,430 |
|
||
Retained earnings |
|
350,475 |
|
|
352,543 |
|
||
|
(197,104 |
) |
|
(147,239 |
) |
|||
Accumulated other comprehensive (income (loss) |
|
17,884 |
|
|
(227 |
) |
||
Total stockholders' equity |
|
390,231 |
|
|
416,840 |
|
||
Total liabilities and stockholders' equity |
$ |
1,652,749 |
|
$ |
1,653,202 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(unaudited, in thousands) | |||||||
Three months ended |
|||||||
2022 |
2021 |
||||||
Cash flows from operating activities | |||||||
Net income |
$ |
33,822 |
|
$ |
17,291 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization of property and equipment |
|
11,329 |
|
|
10,663 |
|
|
Amortization of operating lease right-of-use assets |
|
6,371 |
|
|
5,050 |
|
|
Amortization of intangibles |
|
11,097 |
|
|
8,396 |
|
|
Amortization of deferred financing costs and debt discount |
|
484 |
|
|
331 |
|
|
Provision for credit losses |
|
653 |
|
|
127 |
|
|
Gain on sale of property and equipment |
|
(92 |
) |
|
(252 |
) |
|
Noncash stock compensation |
|
3,418 |
|
|
3,196 |
|
|
Amortization of terminated interest rate swap |
|
790 |
|
|
798 |
|
|
Changes in assets and liabilities, excluding effects of acquisitions | |||||||
Accounts receivable |
|
(32,700 |
) |
|
1,056 |
|
|
Inventories |
|
(16,300 |
) |
|
(7,644 |
) |
|
Other assets |
|
169 |
|
|
(1,794 |
) |
|
Accounts payable |
|
16,486 |
|
|
524 |
|
|
Income taxes receivable/payable |
|
11,433 |
|
|
4,633 |
|
|
Other liabilities |
|
1,265 |
|
|
(4,757 |
) |
|
Net cash provided by operating activities |
|
48,225 |
|
|
37,618 |
|
|
Cash flows from investing activities | |||||||
Purchases of investments |
|
(49,957 |
) |
|
- |
|
|
Purchases of property and equipment |
|
(10,362 |
) |
|
(10,846 |
) |
|
Acquisitions of businesses, net of cash acquired of |
|
(8,050 |
) |
|
(41,930 |
) |
|
Proceeds from sale of property and equipment |
|
265 |
|
|
389 |
|
|
Other |
|
(614 |
) |
|
(5 |
) |
|
Net cash used in investing activities |
|
(68,718 |
) |
|
(52,392 |
) |
|
Cash flows from financing activities | |||||||
Payments on term loan |
|
(1,250 |
) |
|
- |
|
|
Proceeds from vehicle and equipment notes payable |
|
4,752 |
|
|
7,808 |
|
|
Debt issuance costs |
|
(627 |
) |
|
- |
|
|
Principal payments on long-term debt |
|
(6,618 |
) |
|
(6,481 |
) |
|
Principal payments on finance lease obligations |
|
(521 |
) |
|
(530 |
) |
|
Acquisition-related obligations |
|
(6,003 |
) |
|
(1,414 |
) |
|
Dividends paid |
|
(35,426 |
) |
|
(8,786 |
) |
|
Repurchase of common stock |
|
(49,865 |
) |
|
- |
|
|
Net cash used in financing activities |
|
(95,558 |
) |
|
(9,403 |
) |
|
Net change in cash and cash equivalents |
|
(116,051 |
) |
|
(24,177 |
) |
|
Cash and cash equivalents at beginning of period |
|
333,485 |
|
|
231,520 |
|
|
Cash and cash equivalents at end of period |
$ |
217,434 |
|
$ |
207,343 |
|
|
Supplemental disclosures of cash flow information | |||||||
Net cash paid during the period for: | |||||||
Interest |
$ |
14,293 |
|
$ |
10,839 |
|
|
Income taxes, net of refunds |
|
1,088 |
|
|
1,474 |
|
|
Supplemental disclosure of noncash activities | |||||||
Right-of-use assets obtained in exchange for operating lease obligations |
|
5,514 |
|
|
5,679 |
|
|
Property and equipment obtained in exchange for finance lease obligations |
|
544 |
|
|
268 |
|
|
Seller obligations in connection with acquisition of businesses |
|
1,878 |
|
|
5,959 |
|
|
Unpaid purchases of property and equipment included in accounts payable |
|
1,884 |
|
|
1,043 |
|
Information on Segments
In the first quarter of 2022, we realigned our operating segments. This change resulted in our Company having three operating segments consisting of Installation, Distribution and Manufacturing. The Other category reported below reflects the operations of our Distribution and Manufacturing operating segments.
SEGMENT INFORMATION AS OF |
||||||||||||
(unaudited, in thousands) | ||||||||||||
Installation | Other | Eliminations |
Consolidated |
|||||||||
Revenue |
$ |
561,631 |
$ |
26,650 |
$ |
(789 |
) |
$ |
587,492 |
|||
Cost of sales (exclusive of depreciation and amortization shown separately below) |
|
385,692 |
|
19,373 |
|
(609 |
) |
|
404,456 |
|||
Adjusted gross profit |
|
175,939 |
|
7,277 |
|
(180 |
) |
|
183,036 |
|||
Depreciation and amortization |
|
10,633 |
||||||||||
Gross profit, as reported |
|
172,403 |
||||||||||
Selling |
|
25,192 |
||||||||||
Administrative |
|
79,144 |
||||||||||
Amortization |
|
11,097 |
||||||||||
Operating income |
|
56,970 |
||||||||||
Interest expense, net |
|
10,600 |
||||||||||
Other expense |
|
145 |
||||||||||
Income before income taxes |
$ |
46,225 |
||||||||||
SEGMENT INFORMATION AS OF |
||||||||||||
(unaudited, in thousands) | ||||||||||||
Installation |
Other |
Eliminations |
Consolidated |
|||||||||
Revenue |
$ |
432,178 |
$ |
5,253 |
$ |
(365 |
) |
$ |
437,066 |
|||
Cost of sales (exclusive of depreciation and amortization shown separately below) |
|
297,832 |
|
4,067 |
|
(283 |
) |
|
301,616 |
|||
Adjusted gross profit |
|
134,346 |
|
1,186 |
|
(82 |
) |
|
135,450 |
|||
Depreciation and amortization |
|
10,023 |
||||||||||
Gross profit, as reported |
|
125,427 |
||||||||||
Selling |
|
20,858 |
||||||||||
Administrative |
|
65,077 |
||||||||||
Amortization |
|
8,396 |
||||||||||
Operating income |
|
31,096 |
||||||||||
Interest expense, net |
|
7,574 |
||||||||||
Other expense |
|
81 |
||||||||||
Income before income taxes |
$ |
23,441 |
||||||||||
The prior period disclosures in the above table have been recast to conform to the current period segment presentation. |
REVENUE BY END MARKET AS OF |
||||||||||||
(unaudited, in thousands) | ||||||||||||
Three months ended |
||||||||||||
2022 |
2021 |
|||||||||||
Installation | ||||||||||||
Residential new construction |
$ |
442,404 |
75 |
% |
$ |
327,244 |
75 |
% |
||||
Repair and remodel |
|
32,641 |
6 |
% |
|
28,289 |
6 |
% |
||||
Commercial |
|
86,586 |
15 |
% |
|
76,645 |
18 |
% |
||||
Net revenue, Installation |
|
561,631 |
96 |
% |
|
432,178 |
99 |
% |
||||
Other 1 |
|
25,861 |
4 |
% |
|
4,888 |
1 |
% |
||||
Net revenue, as reported |
$ |
587,492 |
100 |
% |
$ |
437,066 |
100 |
% |
||||
1 Net revenue for manufacturing operations are included in the Other category for all periods presented to conform with our change in composition of operating segments. Revenues for the Other category are presented net of intercompany sales. |
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.
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 |
|||||||
2022 |
2021 |
||||||
Net income, as reported |
$ |
33,822 |
|
$ |
17,291 |
|
|
Adjustments for adjusted net income: | |||||||
Share based compensation expense |
|
3,418 |
|
|
3,196 |
|
|
Acquisition related expenses |
|
664 |
|
|
1,161 |
|
|
COVID-19 expenses 1 |
|
301 |
|
|
52 |
|
|
Amortization expense 2 |
|
11,097 |
|
|
8,396 |
|
|
Legal reserve |
|
565 |
|
|
- |
|
|
Tax impact of adjusted items at normalized tax rate 3 |
|
(4,172 |
) |
|
(3,329 |
) |
|
Adjusted net income |
$ |
45,695 |
|
$ |
26,767 |
|
|
Weighted average shares outstanding (diluted) |
|
29,580,731 |
|
|
29,613,484 |
|
|
Diluted net income per share, as reported |
$ |
1.14 |
|
$ |
0.58 |
|
|
Adjustments for adjusted net income, net of tax impact, per diluted share 4 |
|
0.40 |
|
|
0.32 |
|
|
Diluted adjusted net income per share |
$ |
1.54 |
|
$ |
0.90 |
|
|
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 |
RECONCILIATION OF GAAP TO NON-GAAP MEASURES | |||||||
ADJUSTED GROSS PROFIT CALCULATIONS | |||||||
(unaudited, in thousands) | |||||||
Three months ended |
|||||||
2022 |
2021 |
||||||
Gross profit |
$ |
172,403 |
|
$ |
125,427 |
|
|
Share based compensation expense |
|
149 |
|
|
62 |
|
|
COVID-19 expenses 1 |
|
2 |
|
|
49 |
|
|
Adjusted gross profit |
$ |
172,554 |
|
$ |
125,538 |
|
|
Adjusted gross profit - % Total Revenue |
|
29.4 |
% |
|
28.7 |
% |
|
1Addback of employee pay and employee medical expenses directly attributable to COVID-19 |
RECONCILIATION OF GAAP TO NON-GAAP MEASURES | |||||||
ADJUSTED SELLING AND ADMINISTRATIVE EXPENSE CALCULATIONS | |||||||
(unaudited, in thousands) | |||||||
Three months ended |
|||||||
2022 |
2021 |
||||||
Selling expense |
$ |
25,192 |
|
$ |
20,858 |
|
|
Administrative expense |
|
79,144 |
|
|
65,077 |
|
|
Selling and Administrative |
$ |
104,336 |
|
$ |
85,935 |
|
|
Share based compensation expense |
|
3,269 |
|
|
3,133 |
|
|
Acquisition related expenses |
|
664 |
|
|
1,161 |
|
|
COVID-19 expenses 1 |
|
299 |
|
|
3 |
|
|
Legal reserve |
|
565 |
|
|
- |
|
|
Adjusted Selling and Administrative |
$ |
99,539 |
|
$ |
81,638 |
|
|
Adjusted Selling and Administrative - % Total Revenue |
|
16.9 |
% |
|
18.7 |
% |
|
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.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES | |||||||
ADJUSTED EBITDA CALCULATIONS | |||||||
(unaudited, in thousands) | |||||||
Three months ended |
|||||||
2022 |
2021 |
||||||
Adjusted EBITDA: | |||||||
Net income (GAAP) |
$ |
33,822 |
|
$ |
17,291 |
|
|
Interest expense |
|
10,600 |
|
|
7,574 |
|
|
Provision for income taxes |
|
12,403 |
|
|
6,150 |
|
|
Depreciation and amortization |
|
22,425 |
|
|
19,059 |
|
|
EBITDA |
|
79,250 |
|
|
50,074 |
|
|
Acquisition related expenses |
|
664 |
|
|
1,161 |
|
|
Share based compensation expense |
|
3,418 |
|
|
3,196 |
|
|
COVID-19 expenses 1 |
|
301 |
|
|
52 |
|
|
Legal reserve |
|
565 |
|
|
- |
|
|
Adjusted EBITDA |
$ |
84,198 |
|
$ |
54,483 |
|
|
Adjusted EBITDA margin |
|
14.3 |
% |
|
12.5 |
% |
|
1Addback of employee pay, employee medical expenses and legal fees directly attributable to COVID-19 |
SUPPLEMENTARY TABLE | |||||
(unaudited) | |||||
Three months ended |
|||||
2022 |
2021 |
||||
Period-over-period Growth | |||||
Consolidated Sales Growth |
34.4 |
% |
10.0 |
% |
|
Consolidated Same Branch Sales Growth |
22.5 |
% |
2.2 |
% |
|
Installation 1 | |||||
Sales Growth |
30.0 |
% |
9.8 |
% |
|
Same Branch Sales Growth |
22.2 |
% |
2.0 |
% |
|
Single-Family Sales Growth |
37.4 |
% |
9.4 |
% |
|
Single-Family Same Branch Sales Growth |
29.4 |
% |
4.7 |
% |
|
Multi-Family Sales Growth |
24.6 |
% |
18.8 |
% |
|
Multi-Family Same Branch Sales Growth |
23.1 |
% |
6.6 |
% |
|
Residential Sales Growth |
35.2 |
% |
10.9 |
% |
|
Residential Same Branch Sales Growth |
28.3 |
% |
5.0 |
% |
|
Commercial Sales Growth 2 |
13.0 |
% |
2.8 |
% |
|
Commercial Same Branch Sales Growth |
5.9 |
% |
-14.0 |
% |
|
Other 1,3 | |||||
Sales Growth |
407.3 |
% |
37.3 |
% |
|
Same Branch Sales Growth |
50.8 |
% |
37.3 |
% |
|
Same Branch Sales Growth - Installation | |||||
Volume Growth 4 |
9.7 |
% |
10.2 |
% |
|
Price/Mix Growth 4 |
14.6 |
% |
-6.2 |
% |
|
Heavy Commercial Same Branch Sales Growth 5 |
0.5 |
% |
-13.1 |
% |
|
Total Completions Growth |
-5.5 |
% |
9.2 |
% |
|
Single-Family Completions Growth |
-0.7 |
% |
11.2 |
% |
|
Multi-Family Completions Growth |
-17.3 |
% |
4.8 |
% |
1 |
During the three months ended |
|
2 |
Our commercial end market consists of heavy and light commercial projects. |
|
3 |
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. This fiscal quarter is the first full quarter of results for our recently acquired distribution business. The acquisition was completed in |
|
4 |
Excludes the heavy commercial end market. |
|
5 |
The heavy commercial end market, as a subset of our total commercial market, comprises certain of our branches working on projects constructed in steel and concrete, which are much larger than our average job. This market is excluded from the above same branch price/mix and volume growth metrics as to not skew the rates given the much larger per-job revenue compared to our average job. |
|
6 |
|
INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS | |||||||||||
(unaudited, in thousands) | |||||||||||
Three months ended |
|||||||||||
2022 |
% Total |
2021 |
% Total | ||||||||
Revenue Increase | |||||||||||
Same Branch |
$ |
98,267 |
65.3 |
% |
$ |
8,777 |
22.1 |
% |
|||
Acquired |
|
52,159 |
34.7 |
% |
|
30,958 |
77.9 |
% |
|||
Total |
$ |
150,426 |
100.0 |
% |
$ |
39,735 |
100.0 |
% |
|||
Adj EBITDA | Adj EBITDA | ||||||||||
Contribution | Contribution | ||||||||||
Adjusted EBITDA | |||||||||||
Same Branch |
$ |
22,529 |
22.9 |
% |
$ |
920 |
10.5 |
% |
|||
Acquired |
|
7,186 |
13.8 |
% |
|
4,393 |
14.2 |
% |
|||
Total |
$ |
29,715 |
19.8 |
% |
$ |
5,313 |
13.4 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220504005980/en/
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614-221-9944
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Source: