8-K
false 0001580905 0001580905 2020-05-08 2020-05-08

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

May 8, 2020

Date of Report (Date of earliest event reported)

 

Installed Building Products, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-36307

 

45-3707650

(State or other jurisdiction

of incorporation)

 

(Commission

File No.)

 

(IRS Employer

Identification No.)

495 South High Street, Suite 50

Columbus, Ohio 43215

(Address of principal executive offices, zip code)

(614) 221-3399

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common stock

 

IBP

 

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 


Item 2.02 Results of Operations and Financial Condition.

On May 8, 2020, Installed Building Products, Inc. (the “Company”) issued a press release reporting the financial results for the three months ended March 31, 2020. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information contained in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Furthermore, the information contained in this Item 2.02, including Exhibit 99.1 attached hereto, shall not be deemed to be incorporated by reference into any registration statement or other document filed with the Securities and Exchange Commission, except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure.

One or more representatives of the Company will meet with certain current and prospective investors during the second quarter of 2020. The materials used in connection with these meetings have been posted on the Company’s website (www.installeduildingproducts.com) under the Investor Relations section.

The information contained in this Item 7.01 is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Furthermore, the information contained in this Item 7.01 shall not be deemed to be incorporated by reference into any registration statement or other document filed with the Securities and Exchange Commission, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit 

Number

   

Description

         
 

99.1

   

Press Release, dated May 8, 2020, announcing results for the three months ended March 31, 2020.

         
 

104

   

Cover Page Interactive Data File (formatted in Inline XBRL)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

INSTALLED BUILDING PRODUCTS, INC.

             

Date: May 8, 2020

 

 

By:

 

/s/ Michael T. Miller

 

 

 

Executive Vice President and

 

 

 

Chief Financial Officer

EX-99.1

Exhibit 99.1

LOGO

INSTALLED BUILDING PRODUCTS REPORTS RECORD RESULTS

FOR FIRST QUARTER 2020

Columbus, Ohio, May 8, 2020 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, 2020.

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

 

   

Net revenue increased 16.1% to a first quarter record of $397.3 million

 

   

Net income increased 81.0% to $16.0 million

 

   

Adjusted EBITDA* increased 37.9% to $49.2 million

 

   

Net cash provided by operating activities increased 126.0% to $35.9 million

 

   

Net income per diluted share increased 76.7% to $0.53

 

   

Adjusted net income per diluted share* increased 52.9% to $0.78

 

   

At March 31, 2020, IBP had $213.7 million in cash, and cash equivalents, and investments, and nothing drawn on its existing $200 million revolving line of credit

 

   

In March 2020, acquired Royals Commercial Services, Inc., a Maryland based provider of spray foam insulation and thermal barrier installation services primarily for commercial customers, with annual revenue of approximately $10.0 million

 

   

In March 2020, acquired a Chicago based shower, shelving, and mirror installer, with annual revenue of approximately $1.1 million

Recent Developments

 

   

Revenue for the month of April 2020 increased approximately 2% compared to the same period last year, even though 10% of our branches by revenue were closed during the month due to construction’s non-essential status in certain markets

 

   

Currently, markets representing less than 2% of revenue are closed due to construction’s non-essential status.

“The COVID-19 health crisis has created unprecedented social and economic challenges and our thoughts are with everyone impacted by the pandemic,” stated Jeff Edwards, Chairman and Chief Executive Officer. “We are focused on supporting our customers and employees across the country, while ensuring our business is well positioned to withstand the uncertainty caused by the COVID-19 crisis. Across our national footprint, our branches are following federal, state, and local requirements to protect the health and safety of our customers and employees.”

“During the first quarter, branches representing approximately 90% of our revenue were located in markets where construction has been deemed an essential business and these branches remain open and operational, however restrictions limiting the number of laborers on a jobsite and our social distancing practices have impacted both our volume of completed jobs and efficiencies across our single-family, multi-family and commercial end markets. We estimate that first quarter revenue was reduced by $2.0 - $2.5 million due to the COVID-19 health crisis. I am encouraged that monthly revenue for April 2020 increased approximately 2% compared to the previous year period, despite branch closures in certain markets due to construction’s non-essential status. Currently, approximately 98% of our branches by revenue are in markets where construction is deemed essential.”

 

1


“Single-family housing units under construction remain robust, which we believe supports over six months of industry backlog. Our strategies to expand our geographic footprint, and end market and product diversification have enhanced our local market presence and allows us to leverage our existing branch footprint during this uncertain time. Additionally, our acquisition pipeline remains strong, but we have temporarily delayed closing acquisitions until the economic environment stabilizes.”

“We entered the current market environment from a position of financial and operating strength. The 2020 first quarter was strong across our end markets and we achieved record first quarter revenue, earnings, and adjusted EBITDA. In addition, our balance sheet and access to capital is strong. During the quarter, we generated nearly $36 million of cash flow from operations, and at March 31, 2020 we had over $213.7 million of cash, and cash equivalents, and investments. We also have nothing drawn on our existing $200 million revolving line of credit. Our strong balance sheet, combined with our experienced leadership team, long-standing customer relationships, and asset light, high variable cost and diverse business model will allow IBP to navigate through this period of economic uncertainty,” concluded Mr. Edwards.

First Quarter 2020 Results Overview

For the first quarter of 2020, net revenue was $397.3 million, an increase of 16.1% from $342.1 million in the first quarter of 2019. On a same branch basis, net revenue improved 12.1% from the prior year quarter. Residential same branch sales growth was 9.7% in the quarter, attributable to price gains and more favorable customer and product mix, compared to a decline in total completions of 2.2%. Our large commercial construction end-market had organic growth of 14.1%.

Gross profit improved 30.0% to $116.3 million from $89.4 million in the prior year quarter. Adjusted gross profit* as a percent of total revenue was 29.3% which adjusts for the Company’s share-based compensation expense and branch start-up costs, compared to 26.2% for the same period last year. Selling and administrative expense, as a percent of net revenue, was 20.3% compared to 19.2% in the prior year quarter. Adjusted selling and administrative expense*, as a percent of net revenue, was 19.5% compared to 18.4% in the prior year quarter.

Net income was $16.0 million, or $0.53 per diluted share, compared to $8.8 million, or $0.30 per diluted share in the prior year quarter. Adjusted net income* was $23.2 million, or $0.78 per diluted share, compared to $15.3 million, or $0.51 per diluted share in the prior year quarter. Adjusted net income adjusts for the impact of non-core items in both periods and includes an addback for non-cash amortization expense related to acquisitions.

Adjusted EBITDA* was $49.2 million, a 37.9% increase from $35.7 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 May 8, 2020 at 10:00 a.m. Eastern Time to discuss these results. To participate in the call, please dial 877-300-8521 (domestic) or 412-317-6026 (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 8, 2020, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 10143508.

 

2


About Installed Building Products

Installed Building Products, Inc. is one of the nation’s largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects from its national network of over 180 branch locations.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the housing market, our financial and business model, the demand for our services and product offerings, the impact of the COVID-19 crisis on our business and end markets, expansion of our national footprint and end markets, diversification of our products, our ability to capitalize on the new home and commercial construction recovery, our ability to grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions, our ability to improve sales and profitability, the impact of the COVID-19 crisis on our financial results and acquisition closings, and expectations for demand for our services and our earnings in 2020. Forward-looking statements may generally be identified by the use of words such as “anticipate,” “believe,” “expect,” “intends,” “plan,” and “will” or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those expressed in or suggested by such forward-looking statements as a result of various factors, including, without limitation, the duration, effect and severity of the COVID-19 crisis; the adverse impact of the COVID-19 crisis on our business and financial results, the economy and the markets we serve; general economic and industry conditions, the material price environment; the timing of increases in our selling prices, and the factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. Any forward-looking statement made by the Company in this press release speaks only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict these events or how they may affect it. The Company has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws.

 

3


*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.

 

4


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,  
     2020     2019  

Net revenue

   $ 397,331     $ 342,135  

Cost of sales

     281,071       252,697  
  

 

 

   

 

 

 

Gross profit

     116,260       89,438  

Operating expenses

    

Selling

     20,355       17,130  

Administrative

     60,195       48,431  

Amortization

     6,680       5,888  
  

 

 

   

 

 

 

Operating income

     29,030       17,989  

Other expense

    

Interest expense, net

     7,358       5,676  

Other

     —         125  
  

 

 

   

 

 

 

Income before income taxes

     21,672       12,188  

Income tax provision

     5,684       3,354  
  

 

 

   

 

 

 

Net income

   $ 15,988     $ 8,834  
  

 

 

   

 

 

 

Other comprehensive loss, net of tax:

    

Unrealized loss on cash flow hedge, net of tax benefit of $1,939 and $921 for the three months ended March 31, 2020 and 2019, respectively

     (5,608     (2,749
  

 

 

   

 

 

 

Comprehensive income

   $ 10,380     $ 6,085  
  

 

 

   

 

 

 

Basic net income per share

   $ 0.54     $ 0.30  
  

 

 

   

 

 

 

Diluted net income per share

   $ 0.53     $ 0.30  
  

 

 

   

 

 

 

Weighted average shares outstanding:

    

Basic

     29,722,444       29,679,884  

Diluted

     29,930,954       29,806,653  

 

5


INSTALLED BUILDING PRODUCTS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

     March 31,     December 31,  
     2020     2019  

ASSETS

    

Current assets

    

Cash and cash equivalents

   $ 187,187     $ 177,889  

Investments

     26,487       37,961  

Accounts receivable (less allowance for credit losses of $9,029 and $6,878 at March 31, 2020 and December 31, 2019, respectively)

     245,469       244,519  

Inventories

     73,569       74,606  

Other current assets

     37,024       46,974  
  

 

 

   

 

 

 

Total current assets

     569,736       581,949  

Property and equipment, net

     106,262       106,410  

Operating lease right-of-use assets

     47,134       45,691  

Goodwill

     198,664       195,652  

Intangibles, net

     151,426       153,562  

Other non-current assets

     13,842       16,215  
  

 

 

   

 

 

 

Total assets

   $ 1,087,064     $ 1,099,479  
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities

    

Current maturities of long-term debt

   $ 24,241     $ 24,164  

Current maturities of operating lease obligations

     15,889       15,459  

Current maturities of finance lease obligations

     2,438       2,747  

Accounts payable

     90,708       98,871  

Accrued compensation

     32,264       33,636  

Other current liabilities

     36,025       39,272  
  

 

 

   

 

 

 

Total current liabilities

     201,565       214,149  

Long-term debt

     545,552       545,031  

Operating lease obligations

     30,741       29,785  

Finance lease obligations

     3,412       3,597  

Deferred income taxes

     6,759       9,175  

Other long-term liabilities

     53,238       47,711  
  

 

 

   

 

 

 

Total liabilities

     841,267       849,448  

Commitments and contingencies

    

Stockholders’ equity

    

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

     —         —    

Common stock; $0.01 par value: 100,000,000 authorized, 32,961,777 and 32,871,504 issued and 29,662,312 and 30,016,340 shares outstanding at March 31, 2020 and December 31, 2019, respectively

     330       329  

Additional paid in capital

     192,564       190,230  

Retained earnings

     188,169       173,371  

Treasury stock; at cost: 3,299,465 and 2,855,164 shares at March 31, 2020 and December 31, 2019, respectively

     (122,515     (106,756

Accumulated other comprehensive loss

     (12,751     (7,143
  

 

 

   

 

 

 

Total stockholders’ equity

     245,797       250,031  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 1,087,064     $ 1,099,479  
  

 

 

   

 

 

 

 

6


INSTALLED BUILDING PRODUCTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

     Three months ended March 31,  
     2020     2019  

Cash flows from operating activities

    

Net income

   $ 15,988     $ 8,834  

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

    

Depreciation and amortization of property and equipment

     10,374       9,111  

Amortization of operating lease right-of-use assets

     4,207       3,798  

Amortization of intangibles

     6,680       5,888  

Amortization of deferred financing costs and debt discount

     325       282  

Provision for credit losses

     1,298       828  

Gain on sale of property and equipment

     (35     (19

Noncash stock compensation

     2,681       2,022  

Changes in assets and liabilities, excluding effects of acquisitions

    

Accounts receivable

     (1,000     (3,704

Inventories

     1,411       799  

Other assets

     6,933       (1,048

Accounts payable

     (8,308     (7,807

Income taxes receivable/payable

     5,649       2,746  

Other liabilities

     (10,291     (5,841
  

 

 

   

 

 

 

Net cash provided by operating activities

     35,912       15,889  
  

 

 

   

 

 

 

Cash flows from investing activities

    

Purchases of investments

     (776     (7,482

Maturities of short term investments

     12,275       7,530  

Purchases of property and equipment

     (9,919     (8,658

Acquisitions of businesses

     (8,501     (5,125

Proceeds from sale of property and equipment

     162       196  

Other

     (1,340     (420
  

 

 

   

 

 

 

Net cash used in investing activities

     (8,099     (13,959
  

 

 

   

 

 

 

Cash flows from financing activities

    

Payments on term loan

     —         (1,000

Proceeds from vehicle and equipment notes payable

     7,094       4,908  

Debt issuance costs

     (22     —    

Principal payments on long-term debt

     (6,711     (3,946

Principal payments on finance lease obligations

     (738     (1,366

Acquisition-related obligations

     (2,378     (2,818

Repurchase of common stock

     (15,759     —    

Surrender of common stock awards by employees

     —         (4
  

 

 

   

 

 

 

Net cash used in financing activities

     (18,514     (4,226
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     9,299       (2,296

Cash and cash equivalents at beginning of period

     177,889       90,442  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 187,188     $ 88,146  
  

 

 

   

 

 

 

Supplemental disclosures of cash flow information

    

Net cash paid during the period for:

    

Interest

   $ 9,798     $ 5,816  

Income taxes, net of refunds

     37       737  

Supplemental disclosure of noncash activities

    

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

     5,612       3,851  

Property and equipment obtained in exchange for finance lease obligations

     343       1,108  

Seller obligations in connection with acquisition of businesses

     2,570       1,380  

Unpaid purchases of property and equipment included in accounts payable

     1,346       1,503  

 

7


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.

 

8


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,  
     2020      2019  

Net income, as reported

   $ 15,988      $ 8,834  

Adjustments for adjusted net income:

     

Share based compensation expense

     2,681        1,938  

Acquisition related expenses

     683        588  

Branch start-up costs 1

     —          261  

Amortization expense 2

     6,680        5,888  

Miscellaneous non-operating income

     (279      —    

Tax impact of adjusted items at normalized tax rate 3

     (2,539      (2,256
  

 

 

    

 

 

 

Adjusted net income

   $ 23,214      $ 15,253  
  

 

 

    

 

 

 

Weighted average shares outstanding (diluted)

     29,930,954        29,806,653  

Diluted net income per share, as reported

   $ 0.53      $ 0.30  

Adjustments for adjusted net income, net of tax impact, per diluted share 4

     0.25        0.21  
  

 

 

    

 

 

 

Diluted adjusted net income per share

   $ 0.78      $ 0.51  
  

 

 

    

 

 

 

 

1

Addback of costs related to organic branch expansion for Alpha locations

2

Addback of all non-cash amortization resulting from business combinations

3

Normalized effective tax rate of 26.0% applied to both periods presented

4 

Includes adjustments related to the items noted above, net of tax

 

9


INSTALLED BUILDING PRODUCTS, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

ADJUSTED GROSS PROFIT CALCULATIONS

(unaudited, in thousands)

 

     Three months ended March 31,  
     2020     2019  

Gross profit

   $ 116,260     $ 89,438  

Share based compensation expense

     96       78  

Branch start-up costs 1

     —         261  
  

 

 

   

 

 

 

Adjusted gross profit

   $ 116,356     $ 89,777  
  

 

 

   

 

 

 

Adjusted gross profit - % Total Revenue

     29.3     26.2

 

1 

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 March 31,  
     2020     2019  

Selling expense

   $ 20,355     $ 17,130  

Administrative expense

     60,195       48,431  
  

 

 

   

 

 

 

Selling and Administrative

   $ 80,550     $ 65,561  
  

 

 

   

 

 

 

Share based compensation expense

     2,585       1,860  

Acquisition related expenses

     683       588  
  

 

 

   

 

 

 

Adjusted Selling and Administrative

   $ 77,282     $ 63,113  
  

 

 

   

 

 

 

Adj. Selling and Administrative - % Total Revenue

     19.5     18.4

 

10


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,  
     2020     2019  

Adjusted EBITDA:

    

Net income (GAAP)

   $ 15,988     $ 8,834  

Interest expense

     7,358       5,676  

Provision for income taxes

     5,684       3,354  

Depreciation and amortization

     17,055       15,000  

Miscellaneous non-operating income

     (279     —    
  

 

 

   

 

 

 

EBITDA

     45,806       32,864  
  

 

 

   

 

 

 

Acquisition related expenses

     683       588  

Share based compensation expense

     2,681       1,938  

Branch start-up costs

     —         261  
  

 

 

   

 

 

 

Adjusted EBITDA

   $ 49,170     $ 35,651  
  

 

 

   

 

 

 

Adjusted EBITDA margin

     12.4     10.4

 

11


INSTALLED BUILDING PRODUCTS, INC.

SUPPLEMENTARY TABLE

(unaudited)

 

     Three months ended March 31,  
     2020     2019  

Period-over-period Growth

    

Sales Growth

     16.1     13.4

Same Branch Sales Growth

     12.1     7.4

Single-Family Sales Growth

     11.0     14.4

Single-Family Same Branch Sales Growth

     5.9     6.5

Residential Sales Growth

     14.2     13.8

Residential Same Branch Sales Growth

     9.7     7.0

Same Branch Sales Growth

    

Volume Growth1

     -0.2     3.4

Price/Mix Growth1

     12.1     4.1

Large Commercial Construction Sales Growth

     14.1     6.6

U.S. Housing Market2

    

Total Completions Growth

     -2.2     5.7

Single-Family Completions Growth

     2.4     4.2

 

1

Excludes the large commercial end market

2 

U.S. Census Bureau data, as revised

 

12


INSTALLED BUILDING PRODUCTS, INC.

INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS

(unaudited, in thousands)

 

     Three months ended March 31,  
     2020      % Total     2019      % Total  

Revenue Increase

          

Same Branch

   $ 41,447        75.1   $ 22,294        55.2

Acquired

     13,749        24.9     18,113        44.8
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 55,196        100.0   $ 40,407        100.0
            Adj EBITDA
Contribution
           Adj EBITDA
Contribution
 

Adjusted EBITDA

          

Same Branch

   $ 11,286        27.2   $ 2,346        10.5

Acquired

     2,234        16.3     1,884        10.4
  

 

 

      

 

 

    

Total

   $ 13,520        24.5   $ 4,230        10.5

Source: Installed Building Products, Inc.

Contact Information:

Investor Relations:

614-221-9944

investorrelations@installed.net

 

13

v3.20.1
Document and Entity Information
May 08, 2020
Cover [Abstract]  
Amendment Flag false
Entity Central Index Key 0001580905
Document Type 8-K
Document Period End Date May 08, 2020
Entity Registrant Name Installed Building Products, Inc.
Entity Incorporation State Country Code DE
Entity File Number 001-36307
Entity Tax Identification Number 45-3707650
Entity Address, Address Line One 495 South High Street
Entity Address, Address Line Two Suite 50
Entity Address, City or Town Columbus
Entity Address, State or Province OH
Entity Address, Postal Zip Code 43215
City Area Code (614)
Local Phone Number 221-3399
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Common stock
Trading Symbol IBP
Security Exchange Name NYSE
Entity Emerging Growth Company false