DAYTONA BEACH, Fla.,
Aug. 4, 2016 /PRNewswire/ --
TopBuild Corp. (NYSE: BLD), the leading purchaser,
installer and distributor of insulation products to the United States construction industry,
reported financial results for the second quarter and six months
ended June 30, 2016.
Jerry Volas, Chief Executive
Officer of TopBuild stated, "We had a solid second quarter with
sales benefitting from the continued growth in residential and
commercial construction. Combined with the unusually robust first
quarter, we are pleased with the first six months of 2016 and look
forward to a strong second half of the year. Most encouraging
is the progress we continue to make driving operational
improvements into our business. Our adjusted operating margin
in the second quarter was 6.4%, a 140 basis point improvement both
year-over-year and sequentially.
"Our team remains focused on optimizing operating margins
while balancing that with top line performance aligned with the
housing recovery. While starts may grow at a rate slower than
previously expected, we believe the current recovery will be much
longer than previous cycles as new housing supply remains tight
relative to household formations."
Second Quarter Financial Highlights
(unless otherwise indicated, comparisons are to quarter ended
June 30, 2015)
- Net sales increased 6.9% to $431.6
million.
- Gross margin was up 140 basis points year-over-year and 100
basis points sequentially.
- Selling, general and administrative ("SG&A") expenses as a
percentage of sales were 16.4%, a 200 basis point improvement.
- Operating profit was $26.8
million compared to $11.5
million. On an adjusted basis, operating profit was
$27.4 million compared to
$19.3 million, a 41.9%
improvement.
- Operating margins improved 340 basis points to 6.2%. On an
adjusted basis, operating margins were 6.4%, up 140 basis
points.
- Income from continuing operations was $15.6 million, or $0.41 per diluted share, compared to $6.6 million or $0.18 per diluted share. On an adjusted basis,
income from continuing operations was $16.2
million, or $0.43 per diluted
share compared to $10.3 million or
$0.27 per diluted share.
- At quarter end, the Company had cash and cash equivalents of
$102.1 million and availability under
its revolving credit facility of $69.9
million for total liquidity of $172.0
million.
Operating Segment Highlights
(all comparisons are to
quarter ended June 30, 2015)
- TruTeamSM (Installation)
- Net sales increased 8.6% driven by growth in both residential
and commercial lines of business as well as improved selling
prices.
- Adjusted operating margin was 7.9%, a 280 basis point
improvement
- Service Partners® (Distribution)
- Net sales rose 2.1%, driven by higher sales volume which was
partially offset by a decrease in selling prices.
- Adjusted operating margin was 8.2%, a 50 basis point
improvement.
Share Repurchase Program
On March 3, 2016, the Company announced that its
Board of Directors had approved a share repurchase program.
Under the program, the Company may purchase up to $50 million in shares of its common stock during
a twelve-month period ending February
28, 2017. In the second quarter, the Company
repurchased 100,024 shares at an average price of $34.23 per share.
Repurchases under this plan may be made from time to time at the
Company's discretion, based on ongoing assessments of the capital
needs of the Company, the market price of its common stock and
general market conditions. The program may be suspended or
discontinued at any time.
Additional Information
Quarterly supplemental
materials, including a presentation that will be referenced on
today's conference call, are available on the "Investors" section
of the Company's website at www.topbuild.com. The Company's
website should be considered a recognized channel of distribution,
and the Company may periodically post important information
regarding, among other things, its business, relevant events and
news in the "Investors" section.
Conference Call Details
A conference call to discuss
the Company's second quarter financial results for 2016 is
scheduled for today, Thursday, August 4,
2016, at 9:00 a.m. Eastern
Time. The call may be accessed by dialing (800)
406-7408. The conference call will be webcast simultaneously
on the "Investors" section of the Company's website at
www.topbuild.com.
A replay of the call will be available on TopBuild's website or
it may be accessed by phone by dialing (800) 633-8284. The
replay passcode is 21813038.
Use of Non-GAAP Financial Measures
The "adjusted"
financial measures presented above are not calculated in accordance
with U.S. generally accepted accounting principles ("GAAP").
The Company believes that these non-GAAP financial measures, which
are used in managing the business, may provide users of this
financial information with additional meaningful comparisons
between current results and results in prior periods. Such
non-GAAP financial measures are reconciled to their closest GAAP
financial measures in tables contained in this news release.
Non-GAAP financial measures should be viewed in addition to,
and not as an alternative for, the Company's reported results under
GAAP. Additional information may be found in the Company's
filings with the Securities and Exchange Commission which are
available on TopBuild's website under "Investors" at
www.topbuild.com.
About TopBuild
TopBuild Corp., headquartered in
Daytona Beach, Florida, is the
leading purchaser, installer and distributor of insulation products
to the U.S. construction industry. We provide insulation
services nationwide through TruTeamSM, which has over
175 branches and our Service Partners® business
distributes insulation from over 70 branches. We leverage our
national footprint to gain economies of scale while capitalizing on
our local market presence to forge strong relationships with our
customers. To learn more about TopBuild please visit our
website at www.topbuild.com.
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act.
These forward-looking statements may address, among other things,
our expected financial and operational results and the related
assumptions underlying our expected results. These
forward-looking statements are distinguished by use of words such
as "will," "would," "anticipate," "expect," "believe," "plan" or
"intend," the negative of these terms, and similar references to
future periods. These views involve risks and uncertainties
that are difficult to predict and, accordingly, our actual results
may differ materially from the results discussed in our
forward-looking statements. Our forward-looking statements
contained herein speak only as of the date of this press
release. Factors or events that we cannot predict, including
those described in the risk factors contained in our filings with
the Securities and Exchange Commission, may cause our actual
results to differ from those expressed in forward-looking
statements. Although TopBuild believes the expectations
reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurance that its
expectations will be achieved and it undertakes no obligation to
update publicly any forward-looking statements as a result of new
information, future events, or otherwise, except as required by
applicable law.
Investor Relations and Media Contact
Tabitha Zane
tabitha.zane@topbuild.com
386-763-8801
(tables follow)
TopBuild
Corp.
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands,
except common share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net sales
|
|
$
|
431,589
|
|
$
|
403,761
|
|
$
|
845,613
|
|
$
|
762,221
|
Cost of
sales
|
|
|
333,901
|
|
|
318,071
|
|
|
658,470
|
|
|
602,715
|
Gross
profit
|
|
|
97,688
|
|
|
85,690
|
|
|
187,143
|
|
|
159,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expense
|
|
|
70,898
|
|
|
74,200
|
|
|
140,586
|
|
|
149,163
|
Operating
profit
|
|
|
26,790
|
|
|
11,490
|
|
|
46,557
|
|
|
10,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(1,371)
|
|
|
(3,156)
|
|
|
(3,044)
|
|
|
(6,317)
|
Other,
net
|
|
|
61
|
|
|
(4)
|
|
|
136
|
|
|
4
|
Other expense,
net
|
|
|
(1,310)
|
|
|
(3,160)
|
|
|
(2,908)
|
|
|
(6,313)
|
Income from
continuing operations before income taxes
|
|
|
25,480
|
|
|
8,330
|
|
|
43,649
|
|
|
4,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
from continuing operations
|
|
|
(9,865)
|
|
|
(1,700)
|
|
|
(16,918)
|
|
|
(1,200)
|
Income from
continuing operations
|
|
|
15,615
|
|
|
6,630
|
|
|
26,731
|
|
|
2,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations, net
|
|
|
—
|
|
|
(235)
|
|
|
—
|
|
|
(234)
|
Net
income
|
|
$
|
15,615
|
|
$
|
6,395
|
|
$
|
26,731
|
|
$
|
2,596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.41
|
|
$
|
0.18
|
|
$
|
0.71
|
|
$
|
0.08
|
Loss from discontinued operations,
net
|
|
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(0.01)
|
Net
income
|
|
$
|
0.41
|
|
$
|
0.17
|
|
$
|
0.71
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.41
|
|
$
|
0.18
|
|
$
|
0.70
|
|
$
|
0.08
|
Loss from discontinued operations,
net
|
|
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(0.01)
|
Net
income
|
|
$
|
0.41
|
|
$
|
0.17
|
|
$
|
0.70
|
|
$
|
0.07
|
TopBuild
Corp.
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets and Other Financial Data
(Unaudited)
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2016
|
|
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
102,090
|
|
$
|
112,848
|
|
Receivables, net of
an allowance for doubtful accounts of $3,481 and $3,399 at June
30,
2016 and December 31, 2015, respectively
|
|
|
254,998
|
|
|
235,549
|
|
Inventories,
net
|
|
|
102,216
|
|
|
118,701
|
|
Prepaid expenses and
other current assets
|
|
|
16,529
|
|
|
13,263
|
|
Total current
assets
|
|
|
475,833
|
|
|
480,361
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
91,829
|
|
|
93,066
|
|
Goodwill
|
|
|
1,044,041
|
|
|
1,044,041
|
|
Other intangible
assets, net
|
|
|
1,584
|
|
|
1,987
|
|
Deferred tax assets,
net
|
|
|
20,549
|
|
|
20,549
|
|
Other
assets
|
|
|
1,581
|
|
|
2,245
|
|
Total
assets
|
|
$
|
1,635,417
|
|
$
|
1,642,249
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
214,012
|
|
$
|
253,311
|
|
Current portion of
long-term debt
|
|
|
20,000
|
|
|
15,000
|
|
Accrued
liabilities
|
|
|
73,371
|
|
|
58,369
|
|
Total current
liabilities
|
|
|
307,383
|
|
|
326,680
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
168,628
|
|
|
178,457
|
|
Deferred tax
liabilities, net
|
|
|
181,251
|
|
|
181,254
|
|
Long-term portion of
insurance reserves
|
|
|
37,801
|
|
|
39,655
|
|
Other
liabilities
|
|
|
436
|
|
|
474
|
|
Total
liabilities
|
|
|
695,499
|
|
|
726,520
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
939,918
|
|
|
915,729
|
|
Total liabilities and
equity
|
|
$
|
1,635,417
|
|
$
|
1,642,249
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2016
|
|
2015
|
|
Other Financial
Data
|
|
|
|
|
|
|
|
Working Capital
Days
|
|
|
|
|
|
|
|
Receivable
days
|
|
|
46
|
|
|
45
|
|
Inventory
days
|
|
|
28
|
|
|
30
|
|
Accounts payable
days
|
|
|
82
|
|
|
82
|
|
Working
capital
|
|
$
|
143,202
|
|
$
|
129,023
|
|
Working capital as a
percent of sales (LTM)
|
|
|
8.4
|
%
|
|
8.3
|
%
|
TopBuild
Corp.
|
|
|
|
|
|
|
Condensed
Consolidated Statement of Cash Flows (Unaudited)
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2016
|
|
2015
|
Net Cash From
(For) Operating Activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
26,731
|
|
$
|
2,596
|
Adjustments to
reconcile net income to net cash from (for) operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
5,908
|
|
|
6,140
|
Share-based
compensation
|
|
|
3,705
|
|
|
1,666
|
Loss on sale or
abandonment of property and equipment
|
|
|
1,477
|
|
|
2,299
|
Provision for bad
debt expense
|
|
|
1,986
|
|
|
2,507
|
Loss from inventory
obsolescence
|
|
|
667
|
|
|
792
|
Deferred income
taxes, net
|
|
|
(3)
|
|
|
1,202
|
Changes in certain
assets and liabilities:
|
|
|
|
|
|
|
Receivables,
net
|
|
|
(21,436)
|
|
|
(19,415)
|
Inventories,
net
|
|
|
15,819
|
|
|
7,293
|
Prepaid expenses and
other current assets
|
|
|
(3,266)
|
|
|
(412)
|
Accounts
payable
|
|
|
(39,237)
|
|
|
(21,771)
|
Long-term portion of
insurance reserves
|
|
|
(1,360)
|
|
|
1,882
|
Accrued
liabilities
|
|
|
15,002
|
|
|
6,311
|
Other, net
|
|
|
153
|
|
|
(47)
|
Net cash from (for)
operating activities
|
|
|
6,146
|
|
|
(8,957)
|
|
|
|
|
|
|
|
Cash Flows From
(For) Investing Activities:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(6,023)
|
|
|
(7,111)
|
Proceeds from sale of
property and equipment
|
|
|
219
|
|
|
440
|
Other,
net
|
|
|
147
|
|
|
460
|
Net cash for
investing activities
|
|
|
(5,657)
|
|
|
(6,211)
|
|
|
|
|
|
|
|
Cash Flows From
(For) Financing Activities:
|
|
|
|
|
|
|
Net transfer from
Former Parent
|
|
|
—
|
|
|
77,186
|
Cash distribution
paid to Former Parent
|
|
|
—
|
|
|
(200,000)
|
Proceeds from
issuance of long-term debt
|
|
|
—
|
|
|
200,000
|
Repayment of
long-term debt
|
|
|
(5,000)
|
|
|
—
|
Payment of debt
issuance costs
|
|
|
—
|
|
|
(1,715)
|
Taxes withheld and
paid on employees' equity awards
|
|
|
(1,285)
|
|
|
—
|
Repurchase of shares
of common stock
|
|
|
(4,962)
|
|
|
—
|
Net cash (for) from
financing activities
|
|
|
(11,247)
|
|
|
75,471
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
|
|
|
|
|
(Decrease) increase
for the period
|
|
|
(10,758)
|
|
|
60,303
|
Beginning of
year
|
|
|
112,848
|
|
|
2,965
|
End of
period
|
|
$
|
102,090
|
|
$
|
63,268
|
|
|
|
|
|
|
|
Supplemental
disclosure of noncash investing activities:
|
|
|
|
|
|
|
Accruals for property
and equipment
|
|
$
|
521
|
|
$
|
—
|
TopBuild
Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Data
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
Change
|
|
|
|
2016
|
|
|
2015
|
|
Change
|
|
|
Installation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
288,042
|
|
$
|
265,296
|
|
|
8.6
|
%
|
|
$
|
560,920
|
|
$
|
498,659
|
|
|
12.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as
reported
|
|
$
|
22,797
|
|
$
|
7,067
|
|
|
|
|
|
$
|
36,303
|
|
$
|
6,035
|
|
|
|
|
|
Operating margin,
as reported
|
|
|
7.9
|
%
|
|
2.7
|
%
|
|
|
|
|
|
6.5
|
%
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization
charges†
|
|
|
66
|
|
|
3,188
|
|
|
|
|
|
|
894
|
|
|
3,830
|
|
|
|
|
|
Legal adjustments,
net
|
|
|
—
|
|
|
1,020
|
|
|
|
|
|
|
—
|
|
|
1,370
|
|
|
|
|
|
Fixed asset disposal
(truck mounted devices)
|
|
|
—
|
|
|
1,690
|
|
|
|
|
|
|
—
|
|
|
1,690
|
|
|
|
|
|
Operating profit, as
adjusted
|
|
$
|
22,863
|
|
$
|
12,965
|
|
|
|
|
|
$
|
37,197
|
|
$
|
12,925
|
|
|
|
|
|
Operating margin,
as adjusted
|
|
|
7.9
|
%
|
|
5.1
|
%
|
|
|
|
|
|
6.6
|
%
|
|
2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
164,257
|
|
$
|
160,841
|
|
|
2.1
|
%
|
|
$
|
325,145
|
|
$
|
305,452
|
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as
reported
|
|
$
|
13,547
|
|
$
|
11,897
|
|
|
|
|
|
$
|
27,880
|
|
$
|
23,274
|
|
|
|
|
|
Operating margin,
as reported
|
|
|
8.2
|
%
|
|
7.4
|
%
|
|
|
|
|
|
8.6
|
%
|
|
7.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization
charges
|
|
|
—
|
|
|
512
|
|
|
|
|
|
|
83
|
|
|
512
|
|
|
|
|
|
Operating profit, as
adjusted
|
|
$
|
13,547
|
|
$
|
12,409
|
|
|
|
|
|
$
|
27,963
|
|
$
|
23,786
|
|
|
|
|
|
Operating margin,
as adjusted
|
|
|
8.2
|
%
|
|
7.7
|
%
|
|
|
|
|
|
8.6
|
%
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales before
eliminations
|
|
$
|
452,299
|
|
$
|
426,137
|
|
|
|
|
|
$
|
886,065
|
|
$
|
804,111
|
|
|
|
|
|
Intercompany
eliminations
|
|
|
(20,710)
|
|
|
(22,376)
|
|
|
|
|
|
|
(40,452)
|
|
|
(41,890)
|
|
|
|
|
|
Net sales after
eliminations
|
|
$
|
431,589
|
|
$
|
403,761
|
|
|
6.9
|
%
|
|
$
|
845,613
|
|
$
|
762,221
|
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as
reported - segment
|
|
$
|
36,344
|
|
$
|
18,964
|
|
|
|
|
|
$
|
64,183
|
|
$
|
29,309
|
|
|
|
|
|
General corporate
expense, net
|
|
|
(6,030)
|
|
|
(5,724)
|
|
|
|
|
|
|
(10,750)
|
|
|
(13,627)
|
|
|
|
|
|
Intercompany
eliminations and other adjustments
|
|
|
(3,524)
|
|
|
(1,750)
|
|
|
|
|
|
|
(6,876)
|
|
|
(5,339)
|
|
|
|
|
|
Operating profit, as
reported
|
|
$
|
26,790
|
|
$
|
11,490
|
|
|
|
|
|
$
|
46,557
|
|
$
|
10,343
|
|
|
|
|
|
Operating margin,
as reported
|
|
|
6.2
|
%
|
|
2.8
|
%
|
|
|
|
|
|
5.5
|
%
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization
charges† ‡
|
|
|
647
|
|
|
3,700
|
|
|
|
|
|
|
1,655
|
|
|
4,342
|
|
|
|
|
|
Legal adjustments,
net
|
|
|
—
|
|
|
1,020
|
|
|
|
|
|
|
—
|
|
|
1,370
|
|
|
|
|
|
Fixed asset disposal
(truck mounted devices)
|
|
|
—
|
|
|
1,690
|
|
|
|
|
|
|
—
|
|
|
1,690
|
|
|
|
|
|
Masco general
corporate expense, net
|
|
|
—
|
|
|
5,724
|
|
|
|
|
|
|
—
|
|
|
13,627
|
|
|
|
|
|
Masco direct
corporate expense
|
|
|
—
|
|
|
1,207
|
|
|
|
|
|
|
—
|
|
|
5,604
|
|
|
|
|
|
Expected standalone
corporate expense
|
|
|
—
|
|
|
(5,500)
|
|
|
|
|
|
|
—
|
|
|
(11,000)
|
|
|
|
|
|
Operating profit, as
adjusted
|
|
$
|
27,437
|
|
$
|
19,331
|
|
|
|
|
|
$
|
48,212
|
|
$
|
25,976
|
|
|
|
|
|
Operating margin,
as adjusted
|
|
|
6.4
|
%
|
|
5.0
|
%
|
|
|
|
|
|
5.7
|
%
|
|
3.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
2,105
|
|
|
858
|
|
|
|
|
|
|
3,705
|
|
|
1,666
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
3,013
|
|
|
3,087
|
|
|
|
|
|
|
5,908
|
|
|
6,140
|
|
|
|
|
|
EBITDA, as
adjusted
|
|
$
|
32,555
|
|
$
|
23,276
|
|
|
|
|
|
$
|
57,825
|
|
$
|
33,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales change period
over period
|
|
|
27,828
|
|
|
|
|
|
|
|
|
|
83,392
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
change period over period
|
|
|
9,279
|
|
|
|
|
|
|
|
|
|
24,043
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted
as percentage of sales change
|
|
|
33.3
|
%
|
|
|
|
|
|
|
|
|
28.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
† 2015
Rationalization charges included spin-off charges.
|
‡ 2016
Rationalization charges include corporate level adjustments as well
as segment operating adjustments.
|
|
TopBuild
Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Reconciliations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands,
except common share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months
Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Gross Profit and
Operating Profit Reconciliations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
|
431,589
|
|
$
|
403,761
|
|
$
|
845,613
|
|
$
|
762,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit, as
reported
|
|
$
|
97,688
|
|
$
|
85,690
|
|
$
|
187,143
|
|
$
|
159,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit, as
adjusted
|
|
$
|
97,688
|
|
$
|
85,690
|
|
$
|
187,143
|
|
$
|
159,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin, as
reported
|
|
|
22.6
|
%
|
|
21.2
|
%
|
|
22.1
|
%
|
|
20.9
|
%
|
Gross margin, as
adjusted
|
|
|
22.6
|
%
|
|
21.2
|
%
|
|
22.1
|
%
|
|
20.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit,
as reported
|
|
$
|
26,790
|
|
$
|
11,490
|
|
$
|
46,557
|
|
$
|
10,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization
charges†
|
|
|
647
|
|
|
3,700
|
|
|
1,655
|
|
|
4,342
|
|
Legal adjustments,
net
|
|
|
—
|
|
|
1,020
|
|
|
—
|
|
|
1,370
|
|
Fixed asset disposal
(truck mounted device)
|
|
|
—
|
|
|
1,690
|
|
|
—
|
|
|
1,690
|
|
Masco general
corporate expense, net
|
|
|
—
|
|
|
5,724
|
|
|
—
|
|
|
13,627
|
|
Masco direct
corporate expense
|
|
|
—
|
|
|
1,207
|
|
|
—
|
|
|
5,604
|
|
Expected standalone
corporate expense
|
|
|
—
|
|
|
(5,500)
|
|
|
—
|
|
|
(11,000)
|
|
Operating profit,
as adjusted
|
|
$
|
27,437
|
|
$
|
19,331
|
|
$
|
48,212
|
|
$
|
25,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin, as
reported
|
|
|
6.2
|
%
|
|
2.8
|
%
|
|
5.5
|
%
|
|
1.4
|
%
|
Operating margin, as
adjusted
|
|
|
6.4
|
%
|
|
5.0
|
%
|
|
5.7
|
%
|
|
3.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Per Common
Share Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes, as
reported
|
|
$
|
25,480
|
|
$
|
8,330
|
|
$
|
43,649
|
|
$
|
4,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization
charges†
|
|
|
647
|
|
|
3,700
|
|
|
1,655
|
|
|
4,342
|
|
Legal adjustments,
net
|
|
|
—
|
|
|
1,020
|
|
|
—
|
|
|
1,370
|
|
Fixed asset disposal
(truck mounted device)
|
|
|
—
|
|
|
1,690
|
|
|
—
|
|
|
1,690
|
|
Masco general
corporate expense, net
|
|
|
—
|
|
|
5,724
|
|
|
—
|
|
|
13,627
|
|
Masco direct
corporate expense
|
|
|
—
|
|
|
1,207
|
|
|
—
|
|
|
5,604
|
|
Expected standalone
corporate expense
|
|
|
—
|
|
|
(5,500)
|
|
|
—
|
|
|
(11,000)
|
|
Income from
continuing operations before income taxes, as
adjusted
|
|
|
26,127
|
|
|
16,171
|
|
|
45,304
|
|
|
19,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax rate at 38% and
36% for 2016 and 2015, respectively
|
|
|
(9,928)
|
|
|
(5,822)
|
|
|
(17,216)
|
|
|
(7,079)
|
|
Income from
continuing operations, as adjusted
|
|
$
|
16,199
|
|
$
|
10,349
|
|
$
|
28,088
|
|
$
|
12,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common
share, as adjusted
|
|
$
|
0.43
|
|
$
|
0.27
|
|
$
|
0.74
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted
common shares outstanding
|
|
|
37,976,703
|
|
|
37,667,947
|
|
|
37,938,108
|
|
|
37,667,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
† 2015
Rationalization charges included spin-off charges.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Logo
- http://photos.prnewswire.com/prnh/20151204/293425LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/topbuild-reports-second-quarter-2016-financial-results-300308891.html
SOURCE TopBuild Corp.