Nov 5, 2020

Installed Building Products Reports Record Third Quarter 2020 Results

COLUMBUS, Ohio--(BUSINESS WIRE)--Nov. 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.”

“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, 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.

 
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

 

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

 

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

 

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 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

 

 
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

 

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

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

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 Adj EBITDA Adj EBITDA Adj EBITDA
Contribution Contribution Contribution 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

%

 

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

Source: Installed Building Products, Inc.