Feb 24, 2021

Installed Building Products Reports Record Results for Fourth Quarter and Fiscal Year 2020

Annual Revenue Increased 9.4% to a Record $1.65 Billion

Annual EPS Increased 43.4% to a Record $3.27 Per Diluted Share

Annual Cash Flow from Operations Increased 46.9% to a Record $180.8 Million

Completed 9 Acquisitions Representing Over $107 Million of Annual Revenues

COLUMBUS, Ohio--(BUSINESS WIRE)--Feb. 24, 2021-- Installed Building Products, Inc. (the "Company" or "IBP") (NYSE:IBP), an industry-leading installer of insulation and complementary building products, today announced record results for the fourth quarter and fiscal year ended December 31, 2020.

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

  • Net revenue increased 10.0% to a quarterly record of $441.5 million
  • Large commercial construction revenue grew 40.4%, and was up 6.4% on a same branch basis
  • Net income increased 45.0% to $27.8 million
  • Adjusted EBITDA* increased 20.7% to a quarterly record of $67.1 million
  • Net income per diluted share increased 46.9% to $0.94
  • Adjusted net income per diluted share* increased 33.7% to $1.23
  • Net cash provided by operating activities for the twelve months ended December 31, 2020, increased 46.9% to $180.8 million
  • At December 31, 2020, IBP had $231.5 million in cash and cash equivalents, with nothing drawn on the existing $200 million revolving line of credit

Recent Developments in Press Release Issued February 23, 2021

  • IBP’s Board of Directors approved the initiation of a quarterly cash dividend program. The first quarterly dividend of $0.30 per share is payable on March 31, 2021, to shareholders of record on March 15, 2021.
  • In addition to the quarterly cash dividend, the Board of Directors will consider an annual variable dividend to be paid in the first quarter of each year commencing in 2022. The variable dividend will be determined based on the cash flow generated by operations with consideration for planned and expected cash obligations for acquisitions and other factors as determined by the Board.
  • IBP’s Board of Directors increased its existing share repurchase program to $100.0 million and extended the program to March 1, 2022.

“Our record 2020 financial results demonstrate the hard work, dedication, and commitment of our nearly 9,000 team members nationwide,” stated Jeff Edwards, Chairman and Chief Executive Officer. “Throughout 2020, we maintained our commitment to quality and dedication to providing our customers unparalleled service, while protecting the health, safety, and well-being of our employees, customers, partners, and communities.”

“As we successfully navigate the unprecedented challenges associated with the COVID-19 pandemic, we remain focused on pursuing our ongoing geographic, end-market, and end-product diversification strategies. In 2020, we completed 9 acquisitions representing over $107 million of annual revenues, which reflects continued expansion in our primary residential end markets and included acquisitions in the large commercial construction end market. We also experienced same branch sales growth across all of our end markets in 2020, led by multifamily same branch sales growth of 22%.”

“We believe most of our markets will remain strong in 2021 and we expect 2021 will be another good year of growth and profitability for IBP, despite the continued effects of the COVID-19 pandemic. Reflecting our confidence in executing on our acquisition strategy and our commitment to create long-term value for shareholders, I am pleased with the Board’s decision to initiate a quarterly cash dividend program, and increase and extend our share repurchase program. The financial and operating accomplishments we achieved in 2020 is encouraging and I remain excited by the continued opportunities to grow IBP and create even greater value for our shareholders,” concluded Mr. Edwards.

Acquisition Update

We continue to prioritize profitable growth through our proven strategy of acquiring well-run installers of insulation and complementary building products, and during 2020, IBP completed 9 acquisitions representing over $107 million of annual revenues. Our acquisition strategy is supported by our solid and flexible capital structure and we are targeting approximately $100 million of acquired revenue in 2021. We may exceed this target depending on the timing of acquisitions within our large and growing pipeline.

During the 2020 fourth quarter, IBP completed the following acquisitions:

  • In December 2020, acquired Custom Glass & Doors, Inc. a Georgia based provider of glass, shower, shelving, and mirror installation services to residential and multifamily customers, with annual revenue of approximately $7.1 million
  • In November 2020, acquired WeatherSeal Insulation Co., LLC a Virginia based installer of fiberglass and spray foam insulation services to residential customers, with annual revenue of approximately $6.4 million
  • 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

Fourth Quarter 2020 Results Overview

For the fourth quarter of 2020, net revenue was $441.5 million, an increase of 10.0% from $401.2 million in the fourth quarter of 2019. On a same branch basis, net revenue improved 2.8% from the prior year quarter. Residential same branch sales growth was 5.5% in the quarter, attributable to a higher volume of jobs completed, compared to an increase in total completions of 3.5%. Price/mix was negatively impacted during the quarter as the Company experienced a higher volume of sales to production builders compared to last year. This shift within the single-family end market impacted price/mix as the average insulation selling price for entry level production builder jobs is typically lower than a move-up or custom home builder. Our large commercial construction end-market increased 40.4% for the fourth quarter of 2020, and on a same branch basis grew 6.4%.

Gross profit improved 12.4% to $134.9 million from $120.0 million in the prior year quarter. Adjusted gross profit* as a percent of total revenue was 30.6%, compared to 29.9% for the same period last year. Selling and administrative expense, as a percent of net revenue, was 18.5% compared to 19.6% in the prior year quarter. Higher volume provided better administrative expense leverage during the quarter and adjusted selling and administrative expense*, as a percent of net revenue, improved to 17.8% from 18.6% in the prior year quarter.

Net income was $27.8 million, or $0.94 per diluted share, compared to $19.2 million, or $0.64 per diluted share, in the prior year quarter. Adjusted net income* was $36.6 million, or $1.23 per diluted share, compared to $27.6 million, or $0.92 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 $67.1 million, a 20.7% increase from $55.6 million in the prior year quarter, largely due to higher sales, improved gross profit, and leveraging the Company’s administrative expenses. Adjusted EBITDA, as a percent of net revenue, was 15.2% compared to 13.9% in the prior year quarter.

Full Year 2020 Results Overview

For the year ended December 31, 2020, net revenue was $1,653.2 million, an increase of 9.4% from $1,511.6 million in 2019. On a same branch basis, net revenue improved 4.5% from the prior year. Residential same branch sales growth was 4.7% for the year, attributable to price gains and end-market and product mix, compared to an increase in total completions of 2.5%. Our large commercial construction end-market increased 15.3% for 2020, and increased 2.8% on a same branch basis.

Gross profit improved 17.3% to $510.0 million from $434.8 million in the prior year. Gross margin was 30.8% compared to 28.8% in the prior year. Adjusted gross profit* as a percent of total revenue was 30.9%, which adjusts for the Company’s share-based compensation expense and employee-related expenses associated with the COVID-19 pandemic, compared to 28.8% for the same period last year. Selling and administrative expense, as a percentage of net revenue, was 19.3% compared to 19.1% in the prior year. Adjusted selling and administrative expense*, as a percentage of net revenue was 18.5% compared to 18.4% in the prior year.

Net income was $97.2 million, or $3.27 per diluted share, compared to $68.2 million, or $2.28 per diluted share in the prior year. Adjusted net income* was $128.9 million, or $4.34 per diluted share, compared to $98.3 million, or $3.29 per diluted share in the prior year.

For the full year of 2020, adjusted EBITDA* was $245.6 million, a 24.8% increase from $196.8 million in the prior year. Adjusted EBITDA, as a percentage of net revenue, was 14.9%, compared to 13.0% in the prior year. Operating income was $161.9 million, a 33.6% increase from $121.2 million in the prior year. The incremental adjusted EBITDA margin* on same branch revenue growth was 54.2% (please refer to the Supplementary Tables at the end of this Press Release).

Net cash from operating activities was $180.8 million, an increase of 46.9% from $123.1 million in the prior year.

Conference Call and Webcast

The Company will host a conference call and webcast on February 24, 2021 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 March 24, 2021, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13714679.

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 190 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, payments of a quarterly cash dividend, the possibility of an annual variable dividend in 2022, our stock repurchase program, 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 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 in 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; 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, 2019, 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 December 31,   Twelve months ended December 31,
       

2020

 

2019

 

2020

 

2019

Net revenue  

$

441,469

 

$

401,231

 

$

1,653,225

 

 

$

1,511,629

 

Cost of sales  

 

306,541

 

 

281,193

 

 

1,143,251

 

 

 

1,076,809

 

  Gross profit

 

134,928

 

 

120,038

 

 

509,974

 

 

 

434,820

 

Operating expenses              
  Selling  

 

21,404

 

 

20,585

 

 

81,613

 

 

 

75,016

 

  Administrative

 

60,463

 

 

58,112

 

 

237,959

 

 

 

214,134

 

  Amortization

 

8,158

 

 

6,445

 

 

28,535

 

 

 

24,510

 

  Operating income

 

44,903

 

 

34,896

 

 

161,867

 

 

 

121,160

 

Other expense                
  Interest expense, net

 

7,612

 

 

8,321

 

 

30,291

 

 

 

28,104

 

  Other  

 

94

 

 

70

 

 

399

 

 

 

451

 

  Income before income taxes

 

37,197

 

 

26,505

 

 

131,177

 

 

 

92,605

 

Income tax provision

 

9,360

 

 

7,311

 

 

33,938

 

 

 

24,446

 

Net income    

$

27,837

 

$

19,194

 

$

97,239

 

 

$

68,159

 

                     
Other comprehensive income (loss), net of tax:              
  Net change on cash flow hedges, net of tax (provision) benefit of
($1,032) and ($451) for the three months ended December 31,
2020 and 2019, respectively, and $550 and $2,225 for the twelve months
ended December 31, 2020 and 2019, respectively

 

2,962

 

 

1,309

 

 

(1,620

)

 

 

(6,712

)

Comprehensive income

$

30,799

 

$

20,503

 

$

95,619

 

 

$

61,447

 

                     
Basic net income per share

$

0.95

 

$

0.64

 

$

3.30

 

 

$

2.29

 

Diluted net income per share

$

0.94

 

$

0.64

 

$

3.27

 

 

$

2.28

 

Weighted average shares outstanding:              
  Basic    

 

29,371,629

 

 

29,785,548

 

 

29,504,115

 

 

 

29,752,644

 

  Diluted  

 

29,660,839

 

 

29,972,444

 

 

29,717,609

 

 

 

29,873,106

 

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

2020

 

2019

ASSETS        
Current assets        
Cash and cash equivalents  

$

231,520

 

 

$

177,889

 

Investments  

 

-

 

 

 

37,961

 

Accounts receivable (less allowance for credit losses of $8,789 and $6,878
at December 31, 2020 and 2019, respectively)
 

 

266,566

 

 

 

244,519

 

Inventories  

 

77,179

 

 

 

74,606

 

Prepaid expenses and other current assets  

 

48,678

 

 

 

46,974

 

Total current assets  

 

623,943

 

 

 

581,949

 

Property and equipment, net  

 

104,022

 

 

 

106,410

 

Operating lease right-of-use assets  

 

53,766

 

 

 

45,691

 

Goodwill  

 

216,870

 

 

 

195,652

 

Customer relationships, net    

 

108,504

 

 

 

99,946

 

Other intangibles, net  

 

62,889

 

 

 

53,616

 

Other non-current assets  

 

17,682

 

 

 

16,215

 

Total assets  

$

1,187,676

 

 

$

1,099,479

 

           
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities        
Current maturities of long-term debt  

$

23,355

 

 

$

24,164

 

Current maturities of operating lease obligations  

 

18,758

 

 

 

15,459

 

Current maturities of finance lease obligations  

 

2,073

 

 

 

2,747

 

Accounts payable  

 

101,462

 

 

 

98,871

 

Accrued compensation  

 

45,876

 

 

 

33,636

 

Other current liabilities  

 

44,951

 

 

 

39,272

 

Total current liabilities  

 

236,475

 

 

 

214,149

 

Long-term debt  

 

541,957

 

 

 

545,031

 

Operating lease obligations  

 

34,413

 

 

 

29,785

 

Finance lease obligations  

 

2,430

 

 

 

3,597

 

Deferred income taxes  

 

35

 

 

 

9,175

 

Other long-term liabilities  

 

53,184

 

 

 

47,711

 

Total liabilities  

 

868,494

 

 

 

849,448

 

Commitments and contingencies        
Stockholders' equity        
Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued
and outstanding at December 31, 2020 and 2019, respectively
 

 

-

 

 

 

-

 

Common stock; $0.01 par value: 100,000,000 authorized, 33,141,879 and
32,871,504 issued and 29,623,272 and 30,016,340 shares outstanding at
December 31, 2020 and 2019, respectively
 

 

331

 

 

 

329

 

Additional paid in capital  

 

199,847

 

 

 

190,230

 

Retained earnings  

 

269,420

 

 

 

173,371

 

Treasury stock; at cost: 3,518,607 and 2,855,164 shares at December 31,
2020 and 2019, respectively
 

 

(141,653

)

 

 

(106,756

)

Accumulated other comprehensive loss  

 

(8,763

)

 

 

(7,143

)

Total stockholders' equity  

 

319,182

 

 

 

250,031

 

Total liabilities and stockholders' equity  

$

1,187,676

 

 

$

1,099,479

 

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

2020

 

2019

Cash flows from operating activities      
Net income    

$

97,239

 

 

$

68,159

 

Adjustments to reconcile net income to net cash provided by operating activities      
  Depreciation and amortization of property and equipment      

 

41,339

 

 

 

38,862

 

  Amortization of operating lease right-of-use assets

 

18,122

 

 

 

15,691

 

  Amortization of intangibles

 

28,535

 

 

 

24,510

 

  Amortization of deferred financing costs and debt discount

 

1,332

 

 

 

1,184

 

  Provision for credit losses

 

4,444

 

 

 

4,312

 

  Write-off of debt issuance costs

 

-

 

 

 

3,725

 

  Gain on sale of property and equipment

 

(786

)

 

 

(140

)

  Noncash stock compensation

 

10,826

 

 

 

8,727

 

  Deferred income taxes

 

(8,475

)

 

 

5,341

 

  Amortization of terminated interest rate swap

 

1,326

 

 

 

-

 

  Changes in assets and liabilities, excluding effects of acquisitions      
  Accounts receivable

 

(10,489

)

 

 

(29,582

)

  Inventories

 

187

 

 

 

(10,597

)

  Other assets

 

(870

)

 

 

(16,959

)

  Accounts payable

 

(203

)

 

 

947

 

  Income taxes receivable/payable

 

4,296

 

 

 

(3,944

)

  Other liabilities

 

(6,034

)

 

 

12,831

 

  Net cash provided by operating activities

 

180,789

 

 

 

123,067

 

Cash flows from investing activities      
  Purchases of investments

 

(776

)

 

 

(52,795

)

  Maturities of short term investments

 

38,693

 

 

 

25,061

 

  Purchases of property and equipment

 

(33,587

)

 

 

(50,167

)

  Acquisitions of businesses, net of cash acquired of $0 and $334, in 2020 and 2019, respectively

 

(76,446

)

 

 

(51,706

)

  Proceeds from sale of property and equipment

 

1,187

 

 

 

761

 

  Other    

 

(6,865

)

 

 

(2,887

)

  Net cash used in investing activities

 

(77,794

)

 

 

(131,733

)

Cash flows from financing activities      
  Proceeds from senior notes

 

-

 

 

 

300,000

 

  Payments on term loan

 

-

 

 

 

(195,750

)

  Proceeds from vehicle and equipment notes payable

 

21,290

 

 

 

33,090

 

  Debt issuance costs

 

(157

)

 

 

(6,691

)

  Principal payments on long-term debt

 

(26,685

)

 

 

(21,316

)

  Principal payments on finance lease obligations

 

(2,632

)

 

 

(4,157

)

  Acquisition-related obligations

 

(6,283

)

 

 

(6,732

)

  Repurchase of common stock

 

(33,924

)

 

 

-

 

  Surrender of common stock awards by employees

 

(973

)

 

 

(2,331

)

  Net cash (used in) provided by financing activities

 

(49,364

)

 

 

96,113

 

Net change in cash and cash equivalents

 

53,631

 

 

 

87,447

 

Cash and cash equivalents at beginning of period

 

177,889

 

 

 

90,442

 

Cash and cash equivalents at end of period

$

231,520

 

 

$

177,889

 

Supplemental disclosures of cash flow information      
  Net cash paid during the period for:      
  Interest

$

26,324

 

 

$

20,943

 

  Income taxes, net of refunds

 

37,072

 

 

 

22,633

 

Supplemental disclosure of noncash activities      
  Right-of-use assets obtained in exchange for operating lease obligations

 

26,001

 

 

 

18,907

 

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

 

-

 

 

 

(2,946

)

  Property and equipment obtained in exchange for finance lease obligations

 

1,000

 

 

 

2,809

 

  Seller obligations in connection with acquisition of businesses

 

14,086

 

 

 

7,543

 

  Unpaid purchases of property and equipment included in accounts payable

 

1,013

 

 

 

1,903

 

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 December 31,   Twelve months ended December 31,
 

2020

 

2019

 

2020

 

2019

               
Net income, as reported

$

27,837

 

 

$

19,194

 

 

$

97,239

 

 

$

68,159

 

Adjustments for adjusted net income:              
Write-off of capitalized loan costs

 

-

 

 

 

951

 

 

 

-

 

 

 

3,725

 

Share based compensation expense

 

2,776

 

 

 

2,286

 

 

 

10,826

 

 

 

8,727

 

Acquisition related expenses

 

759

 

 

 

560

 

 

 

2,765

 

 

 

2,058

 

COVID-19 expenses 1

 

116

 

 

 

-

 

 

 

914

 

 

 

-

 

Branch start-up costs 2

 

-

 

 

 

-

 

 

 

-

 

 

 

746

 

Legal settlement

 

-

 

 

 

1,200

 

 

 

-

 

 

 

1,200

 

Amortization expense 3

 

8,158

 

 

 

6,445

 

 

 

28,535

 

 

 

24,510

 

Miscellaneous non-operating income

 

-

 

 

 

-

 

 

 

(279

)

 

 

-

 

Tax impact of adjusted items at normalized tax rate 4

 

(3,059

)

 

 

(3,021

)

 

 

(11,075

)

 

 

(10,815

)

Adjusted net income

$

36,587

 

 

$

27,615

 

 

$

128,925

 

 

$

98,310

 

Weighted average shares outstanding (diluted)

 

29,660,839

 

 

 

29,972,444

 

 

 

29,717,609

 

 

 

29,873,106

 

Diluted net income per share, as reported

$

0.94

 

 

$

0.64

 

 

$

3.27

 

 

$

2.28

 

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

 

0.29

 

 

 

0.28

 

 

 

1.07

 

 

 

1.01

 

Diluted adjusted net income per share

$

1.23

 

 

$

0.92

 

 

$

4.34

 

 

$

3.29

 

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 25.9% and 26.4% applied to periods presented for 2020 and 2019, respectively
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 December 31,   Twelve months ended December 31,
   

2020

 

2019

 

2020

 

2019

                 
Gross profit

$

134,928

 

 

$

120,038

 

 

$

509,974

 

 

$

434,820

 

Share based compensation expense

 

62

 

 

 

94

 

 

 

284

 

 

 

374

 

COVID-19 expenses 1

 

105

 

 

 

-

 

 

 

530

 

 

 

-

 

Branch start-up costs 2

 

-

 

 

 

-

 

 

 

-

 

 

 

746

 

Adjusted gross profit

$

135,095

 

 

$

120,132

 

 

$

510,788

 

 

$

435,940

 

Adjusted gross profit - % Total Revenue

 

30.6

%

 

 

29.9

%

 

 

30.9

%

 

 

28.8

%

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 December 31,   Twelve months ended December 31,
 

2020

 

2019

 

2020

 

2019

               
Selling expense

$

21,404

 

 

$

20,585

 

 

$

81,613

 

 

$

75,016

 

Administrative expense

 

60,463

 

 

 

58,112

 

 

 

237,959

 

 

 

214,134

 

Selling and Administrative

$

81,867

 

 

$

78,697

 

 

$

319,572

 

 

$

289,150

 

Share based compensation expense

 

2,713

 

 

 

2,192

 

 

 

10,542

 

 

 

8,353

 

Acquisition related expenses

 

759

 

 

 

560

 

 

 

2,765

 

 

 

2,058

 

COVID-19 expenses 1

 

11

 

 

 

-

 

 

 

384

 

 

 

-

 

Legal settlement

 

-

 

 

 

1,200

 

 

 

-

 

 

 

1,200

 

Adjusted Selling and Administrative

$

78,384

 

 

$

74,745

 

 

$

305,881

 

 

$

277,539

 

Adjusted Selling and Administrative - % Total Revenue

 

17.8

%

 

 

18.6

%

 

 

18.5

%

 

 

18.4

%

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 December 31,   Twelve months ended December 31,
     

2020

 

2019

 

2020

   

2019

  Adjusted EBITDA:                
  Net income (GAAP)

$

27,837

 

 

$

19,194

 

 

$

97,239

 

   

$

68,159

 

    Interest expense

 

7,612

 

 

 

8,321

 

 

 

30,291

 

   

 

28,104

 

    Provision for income taxes

 

9,360

 

 

 

7,311

 

 

 

33,938

 

   

 

24,446

 

    Depreciation and amortization

 

18,646

 

 

 

16,732

 

 

 

69,876

 

   

 

63,372

 

    Miscellaneous non-operating income

 

-

 

 

 

-

 

 

 

(279

)

   

 

-

 

  EBITDA

 

63,455

 

 

 

51,558

 

 

 

231,065

 

   

 

184,081

 

    Acquisition related expenses

 

759

 

 

 

560

 

 

 

2,765

 

   

 

2,058

 

    Share based compensation expense

 

2,776

 

 

 

2,286

 

 

 

10,826

 

   

 

8,727

 

    COVID-19 expenses 1

 

116

 

 

 

-

 

 

 

914

 

   

 

-

 

    Branch start-up costs

 

-

 

 

 

-

 

 

 

-

 

   

 

746

 

    Legal settlement

 

-

 

 

 

1,200

 

 

 

-

 

   

 

1,200

 

  Adjusted EBITDA

$

67,106

 

 

$

55,604

 

 

$

245,570

 

   

$

196,812

 

  Adjusted EBITDA margin

 

15.2

%

 

 

13.9

%

 

 

14.9

%

   

 

13.0

%

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 December 31,   Twelve months ended December 31,
 

2020

 

2019

 

2020

 

2019

Period-over-period Growth              
Sales Growth

10.0%

 

13.6%

 

9.4%

 

13.1%

Same Branch Sales Growth

2.8%

 

9.7%

 

4.5%

 

8.6%

               
Single-Family Sales Growth

7.8%

 

8.5%

 

5.0%

 

10.5%

Single-Family Same Branch Sales Growth

2.9%

 

3.5%

 

0.4%

 

4.8%

               
Multi-Family Sales Growth

33.6%

 

20.6%

 

37.5%

 

13.5%

Multi-Family Same Branch Sales Growth

22.2%

 

19.5%

 

33.2%

 

13.2%

               
Residential Sales Growth

11.3%

 

10.0%

 

9.2%

 

10.9%

Residential Same Branch Sales Growth

5.5%

 

5.5%

 

4.7%

 

5.9%

               
Large Commercial Sales Growth

40.4%

 

10.2%

 

15.3%

 

14.3%

Large Commercial Same Branch Sales Growth

6.4%

 

10.2%

 

2.8%

 

14.3%

               
Same Branch Sales Growth              
Volume Growth1

7.0%

 

3.3%

 

1.9%

 

2.6%

Price/Mix Growth1

-4.5%

 

6.3%

 

2.8%

 

5.4%

               
U.S. Housing Market2              
Total Completions Growth

3.5%

 

16.1%

 

2.5%

 

5.9%

Single-Family Completions Growth

-1.0%

 

15.2%

 

0.9%

 

7.5%

Multi-Family Completions Growth

16.3%

 

19.0%

 

6.6%

 

2.2%

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 December 31,   Twelve months ended December 31,
 

2020

 

% Total

 

2019

 

% Total

 

2020

 

% Total

 

2019

 

% Total

Revenue Increase                              
Same Branch

$

11,230

 

27.9

%

 

$

34,109

 

70.9

%

 

$

68,115

 

48.1

%

 

$

114,863

 

65.6

%

Acquired

 

29,008

 

72.1

%

 

 

14,001

 

29.1

%

 

 

73,481

 

51.9

%

 

 

60,334

 

34.4

%

Total

$

40,238

 

100.0

%

 

$

48,110

 

100.0

%

 

$

141,596

 

100.0

%

 

$

175,197

 

100.0

%

                               
                               
                               
      Adj EBITDA       Adj EBITDA       Adj EBITDA       Adj EBITDA
      Contribution       Contribution       Contribution       Contribution
Adjusted EBITDA                              
Same Branch

$

6,279

 

55.9

%

 

$

10,048

 

29.5

%

 

$

36,908

 

54.2

%

 

$

24,084

 

21.0

%

Acquired

 

5,223

 

18.0

%

 

 

1,938

 

13.8

%

 

 

11,850

 

16.1

%

 

 

8,371

 

13.9

%

Total

$

11,502

 

28.6

%

 

$

11,986

 

24.9

%

 

$

48,758

 

34.4

%

 

$

32,455

 

18.5

%

Source: Installed Building Products, Inc.

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

Source: Installed Building Products, Inc.