INSTALLED BUILDING PRODUCTS

Investors

News Release Details

Installed Building Products Reports Record First Quarter 2022 Results and Declares Regular Quarterly Cash Dividend

May 5, 2022

COLUMBUS, Ohio--(BUSINESS WIRE)--May 5, 2022-- 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 first quarter ended March 31, 2022.

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
  • 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 of February 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 on March 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 Jeff Edwards, Chairman and Chief Executive Officer.

Mr. Edwards, continued, “Despite ongoing supply chain constraints, we are committed to maintaining an exceptional level of service for our customers by completing jobs correctly and on schedule. I am proud of the continued resolve, hard work, and dedication of our teams across the country, especially in the current market environment.”

“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 Mr. Edwards.

Acquisition Update

IBP continues to prioritize profitable growth through its proven strategy of acquiring well-run installers of insulation and complementary building products. For 2022, IBP expects to acquire at least $100 million of revenue.

During the 2022 first quarter and April, IBP announced the following acquisitions:

  • March 2022 - Pisgah Insulation and Fireplaces of NC, LLC, a Mills River, North Carolina based installer of spray foam insulation, fiberglass insulation, and fireplaces into new residential homes in the Asheville, North Carolina market, with annual revenue of approximately $8.5 million.
  • April 2022 - Central Aluminum Supply Corporation, a Trenton, New Jersey based distributor of gutter supplies and accessories to residential, multifamily, and commercial markets, primarily in existing or retrofit construction projects across the U.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 $0.315 per share, payable on June 30, 2022, to stockholders of record on June 15, 2022. The second quarter regular cash dividend represents a 5% increase from last year’s second quarter cash dividend payment.

IBP repurchased 510,943 shares of its common stock at a total cost of $49.9 million, including commissions, during the first quarter of 2022. The Company has approximately $150 million of availability remaining under the Company’s current authorization, which expires March 1, 2023.

First Quarter 2022 Results Overview

For the first quarter of 2022, net revenue was a record $587.5 million, an increase of 34.4% from $437.1 million for the first quarter of 2021. On a consolidated same branch basis, net revenue improved 22.5% from the prior year quarter, which was attributable to a 9.7% increase in the volume of jobs completed and a 14.6% increase in price/mix during the first quarter relative to the same period last year. Residential sales growth within our Installation segment was 28.3% on a same branch basis in the quarter. Our commercial end-market net revenue within the Installation segment increased 13.0% for the first quarter of 2022. Commercial growth was largely driven by recent acquisitions as same branch sales were up 5.9% on a year-over-year basis, primarily due to continued challenges associated with the COVID-19 pandemic. Same branch sales within our heavy commercial business increased 0.5% over the prior year period.

Gross profit improved 37.5% to $172.4 million from $125.4 million in the prior year quarter. Adjusted gross profit* as a percent of total revenue was 29.4% which adjusts for the Company’s share-based compensation expense, as well as expenses directly related to COVID-19, compared to 28.7% for the same period last year. First quarter gross profit was reduced by an estimated $1.4 million due to ongoing supply chain disruptions that occurred during the quarter, which reduced gross profit margin by approximately 20 basis points and had the same impact to operating profit margin and adjusted EBITDA margin*.

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 $33.8 million, or $1.14 per diluted share, compared to $17.3 million, or $0.58 per diluted share in the prior year quarter. Adjusted net income* was $45.7 million, or $1.54 per diluted share, compared to $26.8 million, or $0.90 per diluted share in the prior year quarter. Adjusted net income accounts for the impact of non-core items in both periods, including an addback for non-cash amortization expense related to acquisitions.

Adjusted EBITDA* was $84.2 million, a 54.5% increase from $54.5 million in the prior year quarter, largely due to strong sales growth, improved gross margin, and leverage on selling and administrative expenses compared to the prior year quarter.

Conference Call and Webcast

The Company will host a conference call and webcast on May 5, 2022 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 June 5, 2022, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13727647.

About Installed Building Products

Installed Building Products, Inc. is one of the nation's largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects in all 48 continental states and the District of Columbia from its national network of over 210 branch locations.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the housing market and the commercial market, our operations, industry 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 December 31, 2021, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. In addition, any future declaration of dividends will be subject to the final determination of our Board of Directors. Any forward-looking statement made by the Company in this press release speaks only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict these events or how they may affect it. The Company has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws.

*Use of Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains the non-GAAP financial measures of 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 March 31,

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 $6,430 and $3,428 for the three months ended March 31, 2022 and 2021, respectively

 

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

INSTALLED BUILDING PRODUCTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share and per share amounts)
 
March 31,

December 31,

2022

2021

ASSETS
Current assets
Cash and cash equivalents

$

217,434

 

$

333,485

 

Investments

 

49,980

 

 

-

 

Accounts receivable (less allowance for credit losses of $8,590 and $8,717 at March 31, 2022 and December 31, 2021, respectively)

 

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

 

Goodwill

 

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; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively

 

-

 

 

-

 

Common stock; $0.01 par value: 100,000,000 authorized, 33,351,843 and 33,271,659 issued and 29,275,592 and 29,706,401 shares outstanding at March 31, 2022 and December 31, 2021, respectively

 

334

 

 

333

 

Additional paid in capital

 

218,642

 

 

211,430

 

Retained earnings

 

350,475

 

 

352,543

 

Treasury stock; at cost: 4,076,251 and 3,565,258 shares at March 31, 2022 and December 31, 2021, respectively

 

(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

 

INSTALLED BUILDING PRODUCTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
 
Three months ended March 31,

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 $0 and $168 in 2022 and 2021, respectively

 

(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.

INSTALLED BUILDING PRODUCTS, INC.
SEGMENT INFORMATION AS OF MARCH 31, 2022
(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

 
 
INSTALLED BUILDING PRODUCTS, INC.
SEGMENT INFORMATION AS OF MARCH 31, 2021
(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.
INSTALLED BUILDING PRODUCTS, INC.
REVENUE BY END MARKET AS OF MARCH 31, 2022 AND 2021
(unaudited, in thousands)
 
Three months ended March 31,

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.

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 March 31,

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
INSTALLED BUILDING PRODUCTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED GROSS PROFIT CALCULATIONS
(unaudited, in thousands)
 
Three months ended March 31,

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

INSTALLED BUILDING PRODUCTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED SELLING AND ADMINISTRATIVE EXPENSE CALCULATIONS
(unaudited, in thousands)
 
Three months ended March 31,

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 March 31,

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

INSTALLED BUILDING PRODUCTS, INC.
SUPPLEMENTARY TABLE
(unaudited)
 
Three months ended March 31,

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

%

 
U.S. Housing Market 6
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 March 31, 2022, we realigned our operating segments to reflect recent changes in our business. Prior period disclosures in the above table have been recast to conform to the current period segment presentation. The segment change has no impact on the Company's previously reported consolidated U.S. GAAP financial results.

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 December 2021.

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

U.S. Census Bureau data, as revised.

INSTALLED BUILDING PRODUCTS, INC.
INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS
(unaudited, in thousands)
 
Three months ended March 31,

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

%

 

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

Source: Installed Building Products, Inc.