TopBuild Corp. (NYSE:BLD), a
leading installer and distributor of insulation and building
material products today reported results for the first quarter
ended March 31, 2020.
Jerry Volas, Chief Executive Officer, stated,
“We are pleased with our strong first quarter results which were
only marginally impacted by COVID-19. Top line growth was
solid and operating margins expanded in both business
segments. We ended the quarter with $576 million of total
liquidity and net leverage of 1.46x trailing 12 months adjusted
EBITDA. TopBuild has a strong balance sheet with which to
manage through the current environment.
“Our cycle-tested leadership team has built a
flexible business model focused around achieving operational
efficiencies throughout our organization. Given the current
environment, we are evaluating every aspect of our business and
striking a balance between short term cost reductions and the
preservation of the muscle required to fully capitalize on the
eventual recovery.
“Be assured, all of our decisions place the
health and safety of our employees first.”
First Quarter 2020 Financial Highlights
(unless otherwise indicated, comparisons are to
the quarter ended March 31, 2019)
- Net Sales increased 5.5% to $653.2 million. The increase was
primarily driven by increased sales volume and increased selling
prices.
- Gross margin increased 120 basis points to 26.3%.
- Operating profit was $70.0 million, compared to $56.6 million,
a 23.6% increase. On an adjusted basis, operating profit was
$70.3 million, compared to $59.1 million, a 18.9%
improvement.
- Operating margin was 10.7% compared to 9.1%. Adjusted
operating margin improved 130 basis points to 10.8%.
- Net income was $50.8 million, or $1.51 per diluted share,
compared to net income of $38.0 million or $1.09 per diluted
share. Adjusted net income was $45.9 million, or $1.37 per
diluted share, compared to $36.6 million, or $1.06 per diluted
share.
- Adjusted EBITDA was $88.4 million, compared to $74.5 million, a
18.5% increase and adjusted EBITDA margin improved 150 basis points
to 13.5%. Incremental adjusted EBITDA margin was
40.8%.
- At March 31, 2020, the Company had cash and cash equivalents of
$187 million and availability under the revolving credit facility
of approximately $389 million for total liquidity of $576
million.
Operating Segment Highlights
($ in 000s)(comparisons are to the quarter ended
March 31, 2019)
TruTeam |
3 Months Ended 3/31/20 |
|
Service Partners |
3 Months Ended 3/31/20 |
Sales |
$ |
475,873 |
|
|
Sales |
$ |
214,223 |
|
Change |
|
|
Change |
|
Volume |
|
2.7 |
% |
|
Volume |
|
3.8 |
% |
Price |
|
2.2 |
% |
|
Price |
|
0.9 |
% |
M&A |
|
1.1 |
% |
|
M&A |
|
0.0 |
% |
Total Change |
|
5.9 |
% |
|
Total Change |
|
4.8 |
% |
Operating Margin |
|
12.7 |
% |
|
Operating Margin |
|
11.5 |
% |
Change |
130 |
bps |
|
Change |
140 |
bps |
Capital
AllocationAcquisitionsThe Company
completed two acquisitions in the first quarter, Hunter Insulation
and Cooper Glass, both of which were previously announced in
February. In 2019, the two firms combined generated
approximately $19 million in annual revenue.
Share RepurchasesThe Company
completed the $50 million accelerated share repurchase program
announced on October 31, 2019. Under the terms of the
program, the Company repurchased a total of 465,956 shares of the
Company’s common stock at an average price of $107.31 per
share. In addition, in the first quarter the Company
repurchased an additional 188,100 shares at an average price of
$75.10 per share. These shares were purchased as part of the
Company’s $200 million share repurchase program announced on
February 26, 2019. As of March 31, 2020, approximately $75
million of the $200 million authorization remained.
Credit Facility UpsizedOn March
23, 2020, the Company announced it had entered into a new term loan
and revolving credit facility, replacing its previous senior
secured facilities. The revolving credit facility was upsized
by $200 million to $450 million, which increased total borrowing
capacity to $750 million. In addition, the maturity date was
extended three years to March 2025.
2020 Outlook
On April 14, 2020, the Company withdrew its 2020
Revenue and Adjusted EBITDA guidance due to uncertainty about the
full scope of the COVID-19 impact.
“With the national landscape continuing to
evolve, it is too early for us to determine the full impact of
COVID-19 on our operations. We will continue to
proactively respond to changes in the economic environment.
We intend to resume guidance when visibility improves,” stated
Volas.
Additional InformationQuarterly
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.
Conference Call A conference
call to discuss first quarter 2020 financial results is scheduled
for today, Tuesday, May 5, 2020, at 9:00 a.m. Eastern Time.
The call may be accessed by dialing (888) 225-2706. The
conference call will be webcast simultaneously on the “Investors”
section of the Company’s website at www.topbuild.com.
About TopBuild
TopBuild Corp., a Fortune 1000 Company
headquartered in Daytona Beach, Florida, is a leading installer and
distributor of insulation and building material products to the
U.S. construction industry. We provide insulation and building
material services nationwide through TruTeam®, which has
approximately 200 branches, and through Service Partners® which
distributes insulation and building material products from
approximately 75 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.
Use of Non-GAAP Financial
Measures Adjusted EBITDA, incremental EBITDA margin,
adjusted EBITDA margin, the “adjusted” financial measures presented
above, and figures presented on a “same branch basis” 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. We define same branch sales as sales from branches in
operation for at least 12 full calendar months. Such non-GAAP
financial measures are reconciled to their closest GAAP financial
measures in tables contained in this press 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.
Safe Harbor StatementStatements
contained in this report that reflect our views about future
periods, including our future plans and performance, constitute
“forward-looking statements” under the Private Securities
Litigation Reform Act of 1995. Forward-looking statements can
be identified by words such as “will,” “would,” “anticipate,”
“expect,” “believe,” “designed,” “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.
We caution you against unduly relying on any of these
forward-looking statements. Our future performance may be
affected by the duration and impact of the COVID-19 pandemic on the
United States economy, specifically with respect to residential and
commercial construction; our ability to continue operations in
markets affected by the COVID-19 pandemic and our ability to
collect receivables from our customers; our reliance on residential
new construction, residential repair/remodel, and commercial
construction; our reliance on third-party suppliers and
manufacturers; our ability to attract, develop, and retain talented
personnel and our sales and labor force; our ability to maintain
consistent practices across our locations; and our ability to
maintain our competitive position. We discuss the material
risks we face under the caption entitled “Risk Factors” in our
Annual Report for the year ended December 31, 2019, as
filed with the SEC on February 25, 2020, as well as under the
caption entitled “Risk Factors” in subsequent reports that we file
with the SEC. Our forward-looking statements in this filing
speak only as of the date of this filing. Factors or events
that could cause our actual results to differ may emerge from time
to time and it is not possible for us to predict all of them.
Unless required by law, we undertake no obligation to update
publicly any forward-looking statements as a result of new
information, future events, or otherwise. The Company
believes that the non-GAAP performance measures and ratios that are
contained herein, which management uses to manage our business,
provide users of this financial information with additional
meaningful comparisons between current results and results in our
prior periods. Non-GAAP performance measures and ratios should be
viewed in addition, and not as an alternative, to the Company's
reported results under accounting principles generally accepted in
the United States. Additional information about the Company is
contained in the Company's filings with the SEC and is available on
TopBuild's website at www.topbuild.com.
Investor Relations and Media
ContactTabitha Zanetabitha.zane@topbuild.com
386-763-8801
(tables follow)
TopBuild Corp. |
|
|
|
|
|
|
Condensed Consolidated Statements of
Operations (Unaudited) |
|
|
|
|
(in thousands, except share and per common share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2020 |
|
|
2019 |
|
Net sales |
|
$ |
653,228 |
|
|
$ |
619,330 |
|
Cost of
sales |
|
|
481,272 |
|
|
|
463,635 |
|
Gross profit |
|
|
171,956 |
|
|
|
155,695 |
|
|
|
|
|
|
|
|
Selling,
general, and administrative expense |
|
|
101,967 |
|
|
|
99,077 |
|
Operating profit |
|
|
69,989 |
|
|
|
56,618 |
|
|
|
|
|
|
|
|
Other income
(expense), net: |
|
|
|
|
|
|
Interest expense |
|
|
(8,742 |
) |
|
|
(9,602 |
) |
Loss on extinguishment of debt |
|
|
(233 |
) |
|
|
— |
|
Other, net |
|
|
472 |
|
|
|
333 |
|
Other
expense, net |
|
|
(8,503 |
) |
|
|
(9,269 |
) |
Income before income taxes |
|
|
61,486 |
|
|
|
47,349 |
|
|
|
|
|
|
|
|
Income tax
expense |
|
|
(10,715 |
) |
|
|
(9,366 |
) |
Net income |
|
$ |
50,771 |
|
|
$ |
37,983 |
|
|
|
|
|
|
|
|
Net
income per common share: |
|
|
|
|
|
|
Basic |
|
$ |
1.53 |
|
|
$ |
1.11 |
|
Diluted |
|
$ |
1.51 |
|
|
$ |
1.09 |
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
33,168,453 |
|
|
|
34,169,315 |
|
Diluted |
|
|
33,599,847 |
|
|
|
34,703,289 |
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets and Other Financial
Data (Unaudited) |
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
As of |
|
|
|
March 31, |
|
December 31, |
|
|
|
2020 |
|
2019 |
|
ASSETS |
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
187,039 |
|
$ |
184,807 |
|
Receivables, net of an allowance for credit losses of $7,200 at
March 31, 2020, and allowance for doubtful accounts of $4,854 at
December 31, 2019 |
|
|
431,649 |
|
|
428,844 |
|
Inventories, net |
|
|
152,721 |
|
|
149,078 |
|
Prepaid expenses and other current assets |
|
|
10,918 |
|
|
17,098 |
|
Total current assets |
|
|
782,327 |
|
|
779,827 |
|
|
|
|
|
|
|
|
|
Right of
use assets |
|
|
86,080 |
|
|
87,134 |
|
Property
and equipment, net |
|
|
185,575 |
|
|
178,080 |
|
Goodwill |
|
|
1,379,831 |
|
|
1,367,918 |
|
Other
intangible assets, net |
|
|
182,229 |
|
|
181,122 |
|
Deferred
tax assets, net |
|
|
4,359 |
|
|
4,259 |
|
Other
assets |
|
|
11,439 |
|
|
5,623 |
|
Total assets |
|
$ |
2,631,840 |
|
$ |
2,603,963 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
305,614 |
|
$ |
307,970 |
|
Current portion of long-term debt |
|
|
23,091 |
|
|
34,272 |
|
Accrued liabilities |
|
|
107,327 |
|
|
98,418 |
|
Short-term lease liabilities |
|
|
35,051 |
|
|
36,094 |
|
Total current liabilities |
|
|
471,083 |
|
|
476,754 |
|
|
|
|
|
|
|
|
|
Long-term
debt |
|
|
699,750 |
|
|
697,955 |
|
Deferred
tax liabilities, net |
|
|
174,230 |
|
|
175,263 |
|
Long-term
portion of insurance reserves |
|
|
50,928 |
|
|
45,605 |
|
Long-term
lease liabilities |
|
|
54,025 |
|
|
54,010 |
|
Other
liabilities |
|
|
2,007 |
|
|
1,487 |
|
Total liabilities |
|
|
1,452,023 |
|
|
1,451,074 |
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
1,179,817 |
|
|
1,152,889 |
|
Total liabilities and equity |
|
$ |
2,631,840 |
|
$ |
2,603,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, |
|
|
|
2020 |
|
2019 |
|
Other Financial Data |
|
|
|
|
|
|
|
Receivable days |
|
|
51 |
|
|
53 |
|
Inventory days |
|
|
29 |
|
|
31 |
|
Accounts payable days |
|
|
79 |
|
|
80 |
|
Receivables,
net plus inventories, net less accounts payable |
|
$ |
278,756 |
|
$ |
308,056 |
|
Receivables,
net plus inventories, net less accounts payable as a percent of
sales (TTM)‡ |
|
|
10.5 |
% |
|
12.1 |
% |
|
|
|
|
|
|
|
|
‡ Trailing
12 months sales have been adjusted for the pro forma effect of
acquired branches |
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
Condensed Consolidated Statement of Cash
Flows (Unaudited) |
|
|
|
|
|
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2020 |
|
|
2019 |
|
Cash
Flows Provided by (Used in) Operating Activities: |
|
|
|
|
|
Net income |
|
$ |
50,771 |
|
|
$ |
37,983 |
|
Adjustments
to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
Depreciation
and amortization |
|
|
14,190 |
|
|
|
12,475 |
|
Share-based
compensation |
|
|
3,908 |
|
|
|
2,972 |
|
Loss on
extinguishment of debt |
|
|
233 |
|
|
|
— |
|
Loss on sale
or abandonment of property and equipment |
|
|
383 |
|
|
|
487 |
|
Amortization
of debt issuance costs |
|
|
328 |
|
|
|
390 |
|
Provision
for bad debt expense |
|
|
1,670 |
|
|
|
1,676 |
|
Loss from
inventory obsolescence |
|
|
529 |
|
|
|
1,109 |
|
Deferred
income taxes, net |
|
|
(39 |
) |
|
|
95 |
|
Change in
certain assets and liabilities |
|
|
|
|
|
|
Receivables,
net |
|
|
(5,048 |
) |
|
|
(23,341 |
) |
Inventories,
net |
|
|
(3,964 |
) |
|
|
7,125 |
|
Prepaid
expenses and other current assets |
|
|
6,193 |
|
|
|
11,192 |
|
Accounts
payable |
|
|
(4,173 |
) |
|
|
(31,407 |
) |
Accrued
liabilities |
|
|
9,981 |
|
|
|
2,100 |
|
Other,
net |
|
|
(2,032 |
) |
|
|
666 |
|
Net cash
provided by operating activities |
|
|
72,930 |
|
|
|
23,522 |
|
|
|
|
|
|
|
|
Cash
Flows Provided by (Used in) Investing Activities: |
|
|
|
|
|
|
Purchases of
property and equipment |
|
|
(15,892 |
) |
|
|
(10,213 |
) |
Acquisition
of businesses |
|
|
(20,526 |
) |
|
|
— |
|
Proceeds
from sale of property and equipment |
|
|
194 |
|
|
|
75 |
|
Other,
net |
|
|
— |
|
|
|
16 |
|
Net cash
used in investing activities |
|
|
(36,224 |
) |
|
|
(10,122 |
) |
|
|
|
|
|
|
|
Cash
Flows Provided by (Used in) Financing Activities: |
|
|
|
|
|
|
Proceeds
from issuance of long-term debt |
|
|
300,000 |
|
|
|
— |
|
Repayment of
long-term debt |
|
|
(307,668 |
) |
|
|
(5,601 |
) |
Payment of
debt issuance costs |
|
|
(2,280 |
) |
|
|
— |
|
Taxes
withheld and paid on employees' equity awards |
|
|
(10,399 |
) |
|
|
(5,578 |
) |
Repurchase
of shares of common stock |
|
|
(14,127 |
) |
|
|
(4,622 |
) |
Payment of
contingent consideration |
|
|
— |
|
|
|
(250 |
) |
Net cash
used in financing activities |
|
|
(34,474 |
) |
|
|
(16,051 |
) |
|
|
|
|
|
|
|
Cash
and Cash Equivalents |
|
|
|
|
|
|
Increase
(decrease) for the period |
|
|
2,232 |
|
|
|
(2,651 |
) |
Beginning of
period |
|
|
184,807 |
|
|
|
100,929 |
|
End of
period |
|
$ |
187,039 |
|
|
$ |
98,278 |
|
|
|
|
|
|
|
|
Supplemental disclosure of noncash
activities: |
|
|
|
|
|
|
Leased
assets obtained in exchange for new operating lease
liabilities |
|
$ |
9,167 |
|
|
$ |
105,249 |
|
Accruals for
property and equipment |
|
|
496 |
|
|
|
441 |
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
|
|
|
Segment Data (Unaudited) |
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
Change |
TruTeam |
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
475,873 |
|
|
$ |
449,383 |
|
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
60,351 |
|
|
$ |
51,299 |
|
|
|
|
|
Operating margin, as reported |
|
|
12.7 |
|
% |
|
11.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
|
118 |
|
|
|
|
|
Acquisition related costs |
|
|
4 |
|
|
|
125 |
|
|
|
|
|
Operating profit, as adjusted |
|
$ |
60,355 |
|
|
$ |
51,542 |
|
|
|
|
|
Operating margin, as adjusted |
|
|
12.7 |
|
% |
|
11.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service Partners |
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
214,223 |
|
|
$ |
204,464 |
|
|
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
24,669 |
|
|
$ |
20,597 |
|
|
|
|
|
Operating margin, as reported |
|
|
11.5 |
|
% |
|
10.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
|
109 |
|
|
|
|
|
Operating profit, as adjusted |
|
$ |
24,669 |
|
|
$ |
20,706 |
|
|
|
|
|
Operating margin, as adjusted |
|
|
11.5 |
|
% |
|
10.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
Sales before eliminations |
|
$ |
690,096 |
|
|
$ |
653,847 |
|
|
|
|
|
Intercompany eliminations |
|
|
(36,868 |
) |
|
|
(34,517 |
) |
|
|
|
|
Net sales after eliminations |
|
$ |
653,228 |
|
|
$ |
619,330 |
|
|
|
5.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported - segments |
|
$ |
85,020 |
|
|
$ |
71,896 |
|
|
|
|
|
General corporate expense, net |
|
|
(9,198 |
) |
|
|
(9,604 |
) |
|
|
|
|
Intercompany eliminations |
|
|
(5,833 |
) |
|
|
(5,674 |
) |
|
|
|
|
Operating profit, as reported |
|
$ |
69,989 |
|
|
$ |
56,618 |
|
|
|
|
|
Operating margin, as reported |
|
|
10.7 |
|
% |
|
9.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges † |
|
|
— |
|
|
|
1,827 |
|
|
|
|
|
Acquisition related costs |
|
|
235 |
|
|
|
652 |
|
|
|
|
|
Refinancing costs |
|
|
37 |
|
|
|
— |
|
|
|
|
|
Operating profit, as adjusted |
|
$ |
70,261 |
|
|
$ |
59,097 |
|
|
|
|
|
Operating margin, as adjusted |
|
|
10.8 |
|
% |
|
9.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
3,908 |
|
|
|
2,972 |
|
|
|
|
|
Depreciation and amortization |
|
|
14,190 |
|
|
|
12,475 |
|
|
|
|
|
EBITDA, as adjusted |
|
$ |
88,359 |
|
|
$ |
74,544 |
|
|
|
|
|
EBITDA margin, as adjusted |
|
|
13.5 |
|
% |
|
12.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales change period over period |
|
|
33,898 |
|
|
|
|
|
|
|
|
EBITDA, as adjusted, change period over period |
|
|
13,815 |
|
|
|
|
|
|
|
|
EBITDA, as adjusted, as percentage of sales change |
|
|
40.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
† Rationalization
charges include corporate level adjustments as well as segment
operating adjustments. |
|
|
|
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
Non-GAAP Reconciliations (Unaudited) |
|
|
|
|
|
|
|
(in thousands, except share and per common share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2020 |
|
|
2019 |
|
|
Gross Profit and Operating Profit
Reconciliations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
653,228 |
|
|
$ |
619,330 |
|
|
|
|
|
|
|
|
|
|
Gross profit, as reported |
|
$ |
171,956 |
|
|
$ |
155,695 |
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
|
— |
|
|
Gross profit, as adjusted |
|
$ |
171,956 |
|
|
$ |
155,695 |
|
|
|
|
|
|
|
|
|
|
Gross
margin, as reported |
|
|
26.3 |
|
% |
|
25.1 |
|
% |
Gross
margin, as adjusted |
|
|
26.3 |
|
% |
|
25.1 |
|
% |
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
69,989 |
|
|
$ |
56,618 |
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
|
1,827 |
|
|
Acquisition
related costs |
|
|
235 |
|
|
|
652 |
|
|
Refinancing
costs |
|
|
37 |
|
|
|
— |
|
|
Operating profit, as adjusted |
|
$ |
70,261 |
|
|
$ |
59,097 |
|
|
|
|
|
|
|
|
|
|
Operating
margin, as reported |
|
|
10.7 |
|
% |
|
9.1 |
|
% |
Operating
margin, as adjusted |
|
|
10.8 |
|
% |
|
9.5 |
|
% |
|
|
|
|
|
|
|
|
Income Per Common Share Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes, as reported |
|
$ |
61,486 |
|
|
$ |
47,349 |
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
|
1,827 |
|
|
Acquisition
related costs |
|
|
235 |
|
|
|
652 |
|
|
Refinancing
costs and loss on extinguishment of debt |
|
|
270 |
|
|
|
— |
|
|
Income before income taxes, as adjusted |
|
|
61,991 |
|
|
|
49,828 |
|
|
|
|
|
|
|
|
|
|
Tax rate at
26.0% and 26.5% for 2020 and 2019, respectively |
|
|
(16,118 |
) |
|
|
(13,204 |
) |
|
Income, as adjusted |
|
$ |
45,873 |
|
|
$ |
36,624 |
|
|
|
|
|
|
|
|
|
|
Income per common share, as adjusted |
|
$ |
1.37 |
|
|
$ |
1.06 |
|
|
|
|
|
|
|
|
|
|
Weighted
average diluted common shares outstanding |
|
|
33,599,847 |
|
|
|
34,703,289 |
|
|
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
Same
Branch and Acquisition Net Sales and Adjusted EBITDA
(Unaudited) |
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2020 |
|
|
2019 |
|
|
Net
sales |
|
|
|
|
|
|
|
Same
branch: |
|
|
|
|
|
|
|
Installation segment |
|
$ |
471,008 |
|
|
$ |
449,383 |
|
|
Distribution segment |
|
|
214,223 |
|
|
|
204,464 |
|
|
Eliminations |
|
|
(36,868 |
) |
|
|
(34,517 |
) |
|
Total same
branch |
|
|
648,363 |
|
|
|
619,330 |
|
|
|
|
|
|
|
|
|
|
Acquisitions
(a): |
|
|
|
|
|
|
|
Installation segment |
|
$ |
4,865 |
|
|
$ |
— |
|
|
Distribution segment |
|
|
— |
|
|
|
— |
|
|
Eliminations |
|
|
— |
|
|
|
— |
|
|
Total
acquisitions |
|
|
4,865 |
|
|
|
— |
|
|
Total |
|
$ |
653,228 |
|
|
$ |
619,330 |
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted |
|
|
|
|
|
|
|
Same
branch |
|
$ |
87,266 |
|
|
$ |
74,544 |
|
|
Acquisitions
(a) |
|
|
1,093 |
|
|
|
— |
|
|
Total |
|
$ |
88,359 |
|
|
$ |
74,544 |
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted, as a percentage of sales |
|
|
|
|
|
|
|
Same branch
(b) |
|
|
13.5 |
|
% |
|
|
|
Acquisitions
(c) |
|
|
22.5 |
|
% |
|
|
|
Total (d) |
|
|
13.5 |
|
% |
|
12.0 |
|
% |
|
|
|
|
|
|
|
|
As
Adjusted Incremental EBITDA, as a percentage of incremental
sales |
|
|
|
|
|
|
|
Same branch
(e) |
|
|
43.8 |
|
% |
|
|
|
Acquisitions
(c) |
|
|
22.5 |
|
% |
|
|
|
Total (f) |
|
|
40.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
(a)
Represents current year impact of acquisitions in their first
twelve months |
|
|
|
|
|
|
|
(b) Same
branch EBITDA, as adjusted, as a percentage of same branch
sales |
|
|
|
|
|
|
|
(c) Acquired
EBITDA, as adjusted, as a percentage of acquired sales |
|
|
|
|
|
|
|
(d) Total
EBITDA, as adjusted, as a percentage of total sales |
|
|
|
|
|
|
|
(e) Change in same branch EBITDA, as adjusted, as a percentage of
change in same branch sales |
|
|
|
|
(f) Change
in total EBITDA, as adjusted, as a percentage of change in total
sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Net
Income (Unaudited) |
|
|
|
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2020 |
|
2019 |
Net
income, as reported |
|
$ |
50,771 |
|
$ |
37,983 |
Adjustments to arrive at EBITDA, as adjusted: |
|
|
|
|
|
Interest expense and other, net |
|
|
8,270 |
|
|
9,269 |
Income tax expense |
|
|
10,715 |
|
|
9,366 |
Depreciation and amortization |
|
|
14,190 |
|
|
12,475 |
Share-based compensation |
|
|
3,908 |
|
|
2,972 |
Rationalization charges |
|
|
— |
|
|
1,827 |
Acquisition related costs |
|
|
235 |
|
|
652 |
Refinancing costs and loss on extinguishment of debt |
|
|
270 |
|
|
— |
EBITDA, as adjusted |
|
$ |
88,359 |
|
$ |
74,544 |
|
|
|
|
|
|
|
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