TopBuild Corp. (NYSE:BLD), a
leading installer and specialty distributor of insulation and
building material products to the construction industry in the
United States and Canada today reported results for the fourth
quarter ended December 31, 2021.
Robert Buck, President and Chief Executive Officer, stated, “We
are pleased with our fourth quarter results. Our same branch
adjusted EBITDA margin was a healthy 19.0% with same branch
incremental adjusted margin of 36.0%. The integration of DI, while
in the early stages, is proceeding ahead of expectations and we are
even more confident we will achieve the $35 million to $40 million
of synergies forecasted when we first announced this
transaction.”
Fourth Quarter Financial Highlights(unless
otherwise indicated, comparisons are to the quarter ended December
31, 2020)
3 Months Ended 12/31/21 |
Reported |
Change |
|
Sales |
$1,063,398 |
47.4% |
|
Gross Margin |
26.6% |
(80) bps |
|
SG&A |
$164,718 |
73.5% |
|
SG&A as % of revenue |
15.5% |
230 bps |
|
Operating Profit |
$118,443 |
14.9% |
|
Operating Margin |
11.1% |
(320) bps |
|
Net Income |
$78,360 |
10.7% |
|
Net Income per diluted share |
$2.37 |
11.0% |
|
|
|
|
|
|
|
|
|
3 Months Ended 12/31/21 |
Adjusted |
Change |
|
Sales |
$1,063,398 |
47.4% |
|
Gross Margin |
28.1% |
60 bps |
|
SG&A |
$148,268 |
57.0% |
|
SG&A as % of revenue |
13.9% |
80 bps |
|
Operating Profit |
$150,746 |
45.0% |
|
Operating Margin |
14.2% |
(20) bps |
|
Net Income |
$103,308 |
44.9% |
|
Net Income per diluted share |
$3.12 |
45.1% |
|
EBITDA |
$182,072 |
49.9% |
|
EBITDA Margin |
17.1% |
30 bps |
|
EBITDA Margin, Same Branch |
19.0% |
220 bps |
|
“2021 was a strong year for TopBuild with solid top line growth
and margin expansion within our legacy business,” Buck added. “Our
team did an outstanding job managing multiple material cost
increases while also balancing strong demand against persistent
supply and labor constraints. During the year we also completed 11
acquisitions which are expected to contribute over $1 billion of
annual revenue.
“Looking at 2022, we expect demand to remain solid in all three
of the end-markets we serve: residential, commercial and
industrial. Our focus throughout all areas of our business remains
unchanged: driving top line growth, continuing the successful
integration of DI, and improving operational efficiencies.”
Full Year 2021 Financial Highlights(unless
otherwise indicated, comparisons are to twelve months ended
December 31, 2020)
12 Months Ended 12/31/21 |
Reported |
Change |
|
Sales |
$3,486,207 |
28.3% |
|
Gross Margin |
27.9% |
40 bps |
|
SG&A |
$497,970 |
27.3% |
|
SG&A as % of revenue |
14.3% |
(10) bps |
|
Operating Profit |
$476,419 |
34.2% |
|
Operating Margin |
13.7% |
60 bps |
|
Net Income |
$324,016 |
31.2% |
|
Net Income per diluted share |
$9.78 |
31.8% |
|
|
|
|
|
|
|
|
|
12 Months Ended 12/31/21 |
Adjusted |
Change |
|
Sales |
$3,486,207 |
28.3% |
|
Gross Margin |
28.4% |
90 bps |
|
SG&A |
$475,592 |
22.2% |
|
SG&A as % of revenue |
13.6% |
70 bps |
|
Operating Profit |
$515,242 |
43.4% |
|
Operating Margin |
14.8% |
160 bps |
|
Net Income |
$359,716 |
48.3% |
|
Net Income per diluted share |
$10.85 |
49.0% |
|
EBITDA |
$605,948 |
38.7% |
|
EBITDA Margin |
17.4% |
130 bps |
|
EBITDA Margin, Same Branch |
18.1% |
200 bps |
|
|
|
|
|
Operating Segment Highlights ($ in
000s)(comparisons are to the period ended December 31,
2020)
Installation |
3 Months Ended 12/31/21 |
12 Months Ended 12/31/21 |
|
Specialty Distribution |
3 Months Ended 12/31/21 |
12 Months Ended 12/31/21 |
Sales |
$627,123 |
$2,378,401 |
|
Sales |
$485,813 |
$1,287,176 |
Change |
|
|
|
Change |
|
|
Volume |
1.2% |
4.5% |
|
Volume |
-6.8% |
3.3% |
Price |
11.0% |
6.5% |
|
Price |
22.4% |
13.7% |
M&A |
11.1% |
11.4% |
|
M&A |
77.6% |
22.0% |
Total Change |
23.3% |
22.4% |
|
Total Change |
93.1% |
39.0% |
Operating Margin |
16.9% |
16.1% |
|
Operating Margin |
9.0% |
13.2% |
Change |
90 bps |
90 bps |
|
Change |
(440) bps |
70 bps |
Adj. Operating Margin |
17.0% |
16.2% |
|
Adj. Operating Margin |
12.4% |
14.4% |
Change |
90 bps |
90 bps |
|
Change |
(100) bps |
190 bps |
Adj. EBITDA Margin |
19.4% |
18.7% |
|
Adj. EBITDA Margin |
15.0% |
16.0% |
Change |
80 bps |
80 bps |
|
Change |
70 bps |
230 bps |
Capital Allocation |
|
|
|
|
TTM Revenue at |
Month |
|
2021 Acquisitions |
Acquisition ($ millions) |
Acquired |
Business Focus |
LCR Contractors (I) |
$58.0 |
January |
Heavy Commercial/Fireproofing |
Ozark Foam (I) |
$7.7 |
March |
Residential, primarily spray foam |
American Building Systems (I&D) |
$144.0 |
April |
Residential (94%) & Distribution (6%) |
Creative Conservation (I) |
$7.4 |
April |
Residential insulation |
RJ Insulation (I) |
$4.0 |
June |
Residential, shower doors/mirrors |
Valley Gutter Supply (D) |
$10.0 |
August |
Specialty distributor and fabricator |
California Building Products (I) |
$18.0 |
October |
Residential and light commercial |
Distribution International (D) |
$747.0 |
October |
Specialty distributor and fabricator |
Tonks Insulation (I) |
$4.8 |
November |
Residential insulation |
Shepherds Insulation (I) |
$1.9 |
November |
Residential insulation |
Insulating Products (D) |
$11.0 |
December |
Residential distributor |
Total |
$1,013.8 |
|
|
I = InstallationD = Distribution
“We remain focused on acquiring quality installation and
specialty distribution companies that fit within our core
insulation businesses. Our pipeline is robust, and our team is
focused on expanding our presence in all three end markets we
serve,” stated Buck.
Share repurchasesIn 2021, the
Company repurchased a total of 183,136 shares of its common stock
for approximately $35.6 million.
2022 Outlook
Sales and Adjusted EBITDA
Guidance (1) ($ in
millions)
2022 |
Low |
High |
|
Sales |
$ |
4,500 |
$ |
4,650 |
|
Adjusted EBITDA* |
$ |
770 |
$ |
820 |
|
*See table for adjusted EBITDA
reconciliation.
Assumptions(1) ($ in millions) |
|
|
|
2022 |
Low |
High |
|
Estimated net income |
$ |
423.0 |
$ |
470.1 |
|
Interest Expense and other, net |
$ |
50.3 |
$ |
46.2 |
|
Income tax expense |
$ |
148.6 |
$ |
165.2 |
|
Depreciation and Amortization |
$ |
126.4 |
$ |
121.3 |
|
Share based compensation |
$ |
13.7 |
$ |
11.2 |
|
Acquisition related costs |
$ |
8.0 |
$ |
6.0 |
|
Long-Term Assumptions (3-Years) (1) |
|
|
Metric |
|
|
Working Capital (% of LTM Sales) |
11.0% to 13.0% |
|
CapEx (% of Sales) |
1.5% to 2.0% |
|
Non-Residential Revenue Growth (Organic) |
5.0% to 7.5% |
|
Normalized Tax Rate |
25.0% to 27.0% |
|
Incremental Adjusted EBITDA (Organic) |
22.0% to 27.0% |
|
Incremental Adjusted EBITDA (Acquisitions Year One) |
11.0% to 16.0% |
|
Residential Revenue for every 50K houses insulated |
$107 million |
|
(1) This guidance and long-term
targets reflect management’s current view of present and future
market conditions and are based on assumptions such as housing
starts, general and administrative expenses, weighted average
diluted shares outstanding and interest rates. These targets do not
include any effects related to potential acquisitions or
divestitures that may occur after the date of this press release. A
reconciliation of non-GAAP targets to corresponding GAAP measures
is not available on a forward-looking basis without unreasonable
effort due to the uncertainty regarding, and the potential
variability of, the costs and expenses that may be incurred in the
future and therefore, cannot be reasonably predicted. The effect of
these excluded items may be significant. Factors that could cause
actual long-term results to differ materially from TopBuild’s
current expectations are discussed below and are also detailed in
the Company’s 2020 Annual Report on Form 10-K and subsequent SEC
reports.
Additional InformationQuarterly supplemental
materials, including a presentation that will be referenced on
today’s conference call, are available on the Company’s website at
www.topbuild.com.
Conference Call A conference
call to discuss fourth quarter 2021 financial results is scheduled
for today, Tuesday, February 22, at 9:00 a.m. Eastern Time. The
call may be accessed by dialing (877) 407-9037. The conference call
will be webcast simultaneously on the Company’s website at
www.topbuild.com. In addition, a copy of management’s formal
remarks and a presentation that summarizes management’s formal
remarks will be available immediately prior to the conference call
on www.topbuild.com.
About TopBuildTopBuild Corp.,
headquartered in Daytona Beach, Florida, is a leading installer and
specialty distributor of insulation and building material products
to the construction industry in the United States and Canada. We
provide insulation installation services nationwide through our
contractor services business which has approximately 235 branches
located across the United States. We distribute building and
mechanical insulation, insulation accessories and other building
product materials for the residential, commercial, and industrial
end markets through our Specialty Distribution business. Our
specialty distribution network encompasses approximately 175
branches. 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 “SEC Filings” at www.topbuild.com.
Safe Harbor Statement
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, the
related assumptions underlying our expected results, and our plan
to repurchase our common stock under a stock repurchase
transaction. These forward-looking statements are distinguished by
use of 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. 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, the Company can give no assurance that
its expectations will be achieved and it undertakes no obligation
to update 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 Zanetabitha.zane@topbuild.com
386-763-8801
(tables follow)
TopBuild Corp. |
|
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|
|
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|
|
|
|
|
|
Consolidated Statements of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except share and per common share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Net sales |
|
$ |
1,063,398 |
|
|
$ |
721,487 |
|
|
$ |
3,486,207 |
|
|
$ |
2,718,038 |
|
|
Cost of sales |
|
|
780,237 |
|
|
|
523,467 |
|
|
|
2,511,818 |
|
|
|
1,971,677 |
|
|
Gross profit |
|
|
283,161 |
|
|
|
198,020 |
|
|
|
974,389 |
|
|
|
746,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense |
|
|
164,718 |
|
|
|
94,943 |
|
|
|
497,970 |
|
|
|
391,315 |
|
|
Operating profit |
|
|
118,443 |
|
|
|
103,077 |
|
|
|
476,419 |
|
|
|
355,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(10,933 |
) |
|
|
(7,745 |
) |
|
|
(29,143 |
) |
|
|
(32,456 |
) |
|
Loss on extinguishment of debt |
|
|
25 |
|
|
|
— |
|
|
|
(13,837 |
) |
|
|
(233 |
) |
|
Other, net |
|
|
(207 |
) |
|
|
85 |
|
|
|
4 |
|
|
|
733 |
|
|
Other expense, net |
|
|
(11,115 |
) |
|
|
(7,660 |
) |
|
|
(42,976 |
) |
|
|
(31,956 |
) |
|
Income before income taxes |
|
|
107,328 |
|
|
|
95,417 |
|
|
|
433,443 |
|
|
|
323,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
(28,968 |
) |
|
|
(24,660 |
) |
|
|
(109,427 |
) |
|
|
(76,067 |
) |
|
Net income |
|
$ |
78,360 |
|
|
$ |
70,757 |
|
|
$ |
324,016 |
|
|
$ |
247,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.39 |
|
|
$ |
2.16 |
|
|
$ |
9.88 |
|
|
$ |
7.50 |
|
|
Diluted |
|
$ |
2.37 |
|
|
$ |
2.13 |
|
|
$ |
9.78 |
|
|
$ |
7.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
32,753,719 |
|
|
|
32,789,911 |
|
|
|
32,801,906 |
|
|
|
32,917,971 |
|
|
Diluted |
|
|
33,117,227 |
|
|
|
33,189,104 |
|
|
|
33,146,171 |
|
|
|
33,299,986 |
|
|
TopBuild Corp. |
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|
Consolidated Statements of Comprehensive
Income |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
2021 |
|
|
2020 |
|
Net income |
|
$ |
78,360 |
|
|
$ |
70,757 |
|
$ |
324,016 |
|
|
$ |
247,023 |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
(6,634 |
) |
|
|
— |
|
|
(6,634 |
) |
|
|
— |
|
Comprehensive income |
|
$ |
71,726 |
|
|
$ |
70,757 |
|
$ |
317,382 |
|
|
$ |
247,023 |
|
TopBuild Corp. |
|
|
|
|
|
|
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Consolidated Balance Sheets and Other Financial Data
(Unaudited) |
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
As of December 31, |
|
ASSETS |
|
2021 |
|
2020 |
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
139,779 |
|
$ |
330,007 |
|
Receivables, net of an allowance for credit losses of $8,798 at
December 31, 2021, and $6,926 at December 31, 2020 |
|
|
668,419 |
|
|
427,340 |
|
Inventories, net |
|
|
352,801 |
|
|
161,369 |
|
Prepaid expenses and other current assets |
|
|
26,692 |
|
|
17,689 |
|
Total current assets |
|
|
1,187,691 |
|
|
936,405 |
|
|
|
|
|
|
|
|
|
Right of use assets |
|
|
177,177 |
|
|
83,490 |
|
Property and equipment, net |
|
|
244,574 |
|
|
180,053 |
|
Goodwill |
|
|
1,949,763 |
|
|
1,410,685 |
|
Other intangible assets, net |
|
|
684,209 |
|
|
190,605 |
|
Deferred tax assets, net |
|
|
1,905 |
|
|
2,728 |
|
Other assets |
|
|
13,211 |
|
|
11,317 |
|
Total assets |
|
$ |
4,258,530 |
|
$ |
2,815,283 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
461,917 |
|
$ |
331,710 |
|
Current portion of long-term debt |
|
|
38,640 |
|
|
23,326 |
|
Accrued liabilities |
|
|
175,891 |
|
|
107,949 |
|
Short-term operating lease liabilities |
|
|
54,591 |
|
|
33,492 |
|
Short-term finance lease liabilities |
|
|
2,387 |
|
|
— |
|
Total current liabilities |
|
|
733,426 |
|
|
496,477 |
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
1,454,483 |
|
|
683,396 |
|
Deferred tax liabilities, net |
|
|
248,243 |
|
|
168,568 |
|
Long-term portion of insurance reserves |
|
|
51,875 |
|
|
50,657 |
|
Long-term operating lease liabilities |
|
|
125,339 |
|
|
53,749 |
|
Long-term finance lease liabilities |
|
|
7,770 |
|
|
— |
|
Other liabilities |
|
|
960 |
|
|
13,642 |
|
Total liabilities |
|
|
2,622,096 |
|
|
1,466,489 |
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
1,636,434 |
|
|
1,348,794 |
|
Total liabilities and equity |
|
$ |
4,258,530 |
|
$ |
2,815,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
2021 |
|
2020 |
|
Other Financial Data |
|
|
|
|
|
|
|
Receivable days |
|
|
48 |
|
|
48 |
|
Inventory days |
|
|
43 |
|
|
30 |
|
Accounts payable days |
|
|
65 |
|
|
76 |
|
Receivables, net plus inventories, net less accounts payable |
|
$ |
559,303 |
|
$ |
256,999 |
|
Receivables, net plus inventories, net less accounts payable as a
percent of sales (TTM) † |
|
|
13.3 |
% |
9.3 |
% |
|
|
|
|
|
|
|
|
† Trailing 12 months sales have been adjusted for the pro forma
effect of acquired branches |
|
|
TopBuild Corp. |
|
|
|
|
|
|
Consolidated Statement of Cash Flows |
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2021 |
|
|
2020 |
|
Cash Flows Provided by (Used in) Operating
Activities: |
|
|
|
|
|
Net income |
|
$ |
324,016 |
|
|
$ |
247,023 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
79,390 |
|
|
|
62,410 |
|
Share-based compensation |
|
|
11,316 |
|
|
|
14,752 |
|
Loss on extinguishment of debt |
|
|
13,837 |
|
|
|
233 |
|
Loss (gain) on sale or abandonment of property and equipment |
|
|
1,356 |
|
|
|
(88 |
) |
Amortization of debt issuance costs |
|
|
2,036 |
|
|
|
1,491 |
|
Provision for bad debt expense |
|
|
7,304 |
|
|
|
6,270 |
|
Loss from inventory obsolescence |
|
|
2,637 |
|
|
|
2,512 |
|
Loss on foreign exchange |
|
|
255 |
|
|
|
— |
|
Deferred income taxes, net |
|
|
(2,818 |
) |
|
|
(4,070 |
) |
Change in certain assets and liabilities |
|
|
|
|
|
|
Receivables, net |
|
|
(69,042 |
) |
|
|
2,612 |
|
Inventories, net |
|
|
(46,518 |
) |
|
|
(11,843 |
) |
Prepaid expenses and other current assets |
|
|
558 |
|
|
|
(460 |
) |
Accounts payable |
|
|
54,961 |
|
|
|
16,844 |
|
Accrued liabilities |
|
|
24,816 |
|
|
|
20,545 |
|
Payment of contingent consideration |
|
|
(22 |
) |
|
|
(413 |
) |
Other, net |
|
|
(1,057 |
) |
|
|
66 |
|
Net cash provided by operating activities |
|
|
403,025 |
|
|
|
357,884 |
|
|
|
|
|
|
|
|
Cash Flows Provided by (Used in) Investing
Activities: |
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(55,546 |
) |
|
|
(40,938 |
) |
Acquisition of businesses, net of cash acquired |
|
|
(1,267,114 |
) |
|
|
(83,408 |
) |
Proceeds from sale of property and equipment |
|
|
415 |
|
|
|
2,463 |
|
Net cash used in investing activities |
|
|
(1,322,245 |
) |
|
|
(121,883 |
) |
|
|
|
|
|
|
|
Cash Flows Provided by (Used in) Financing
Activities: |
|
|
|
|
|
|
Proceeds from issuance of long-term debt |
|
|
1,218,750 |
|
|
|
300,000 |
|
Repayment of long-term debt |
|
|
(433,070 |
) |
|
|
(324,948 |
) |
Payment of debt issuance costs |
|
|
(14,965 |
) |
|
|
(2,280 |
) |
Taxes withheld and paid on employees' equity awards |
|
|
(8,805 |
) |
|
|
(14,932 |
) |
Exercise of stock options |
|
|
3,303 |
|
|
|
1,438 |
|
Repurchase of shares of common stock |
|
|
(35,556 |
) |
|
|
(49,151 |
) |
Payment of contingent consideration |
|
|
(650 |
) |
|
|
(928 |
) |
Net cash provided by (used in) financing activities |
|
|
729,007 |
|
|
|
(90,801 |
) |
Impact of foreign currency on cash |
|
|
(15 |
) |
|
|
— |
|
Net (decrease) increase in cash and cash equivalents |
|
|
(190,228 |
) |
|
|
145,200 |
|
Cash and cash equivalents- Beginning of period |
|
|
330,007 |
|
|
|
184,807 |
|
Cash and cash equivalents- End of period |
|
$ |
139,779 |
|
|
$ |
330,007 |
|
|
|
|
|
|
|
|
Supplemental disclosure of cash paid for: |
|
|
|
|
|
|
Interest |
|
$ |
22,144 |
|
|
$ |
30,896 |
|
Income taxes |
|
|
109,179 |
|
|
|
77,689 |
|
|
|
|
|
|
|
|
Supplemental disclosure of noncash
activities: |
|
|
|
|
|
|
Leased assets obtained in exchange for new operating lease
liabilities |
|
$ |
131,909 |
|
|
$ |
38,646 |
|
Leased assets obtained in exchange for new finance lease
liabilities |
|
|
10,469 |
|
|
|
— |
|
Accruals for property and equipment |
|
|
1,060 |
|
|
|
645 |
|
TopBuild Corp. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Data (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
|
|
|
|
2021 |
|
2020 |
|
Change |
|
|
|
2021 |
|
2020 |
|
|
Change |
|
Installation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
627,123 |
|
$ |
508,812 |
|
|
23.3 |
% |
|
$ |
2,378,401 |
|
$ |
1,943,461 |
|
|
22.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
105,975 |
|
$ |
81,657 |
|
|
|
|
|
|
$ |
383,722 |
|
$ |
294,793 |
|
|
|
|
|
Operating margin, as reported |
|
|
16.9 |
% |
16.0 |
% |
|
|
|
|
|
16.1 |
% |
15.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
— |
|
|
866 |
|
|
|
|
|
Acquisition related costs |
|
|
362 |
|
|
— |
|
|
|
|
|
|
|
1,642 |
|
|
4 |
|
|
|
|
|
COVID-19 pay |
|
|
— |
|
|
363 |
|
|
|
|
|
|
|
605 |
|
|
1,278 |
|
|
|
|
|
Operating profit, as adjusted |
|
$ |
106,337 |
|
$ |
82,020 |
|
|
|
|
|
|
$ |
385,969 |
|
$ |
296,941 |
|
|
|
|
|
Operating margin, as adjusted |
|
|
17.0 |
% |
16.1 |
% |
|
|
|
|
|
16.2 |
% |
15.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
270 |
|
|
298 |
|
|
|
|
|
|
|
1,157 |
|
|
1,555 |
|
|
|
|
|
Depreciation and amortization |
|
|
15,227 |
|
|
12,146 |
|
|
|
|
|
|
|
57,815 |
|
|
50,265 |
|
|
|
|
|
EBITDA, as adjusted |
|
$ |
121,834 |
|
$ |
94,464 |
|
|
29.0 |
% |
|
$ |
444,941 |
|
$ |
348,761 |
|
|
27.6 |
% |
|
EBITDA margin, as adjusted |
|
|
19.4 |
% |
18.6 |
% |
|
|
|
|
|
18.7 |
% |
17.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Distribution |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
485,813 |
|
$ |
251,535 |
|
|
93.1 |
% |
|
$ |
1,287,176 |
|
$ |
926,207 |
|
|
39.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
43,964 |
|
$ |
33,731 |
|
|
|
|
|
|
$ |
169,368 |
|
$ |
115,343 |
|
|
|
|
|
Operating margin, as reported |
|
|
9.0 |
% |
13.4 |
% |
|
|
|
|
|
13.2 |
% |
12.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
— |
|
|
783 |
|
|
|
|
|
Acquisition related costs |
|
|
530 |
|
|
— |
|
|
|
|
|
|
|
530 |
|
|
— |
|
|
|
|
|
Acquisition purchase accounting (inventory step-up) |
|
|
15,853 |
|
|
— |
|
|
|
|
|
|
|
15,853 |
|
|
— |
|
|
|
|
|
COVID-19 pay |
|
|
— |
|
|
21 |
|
|
|
|
|
|
|
54 |
|
|
90 |
|
|
|
|
|
Operating profit, as adjusted |
|
$ |
60,347 |
|
$ |
33,752 |
|
|
|
|
|
|
$ |
185,805 |
|
$ |
116,216 |
|
|
|
|
|
Operating margin, as adjusted |
|
|
12.4 |
% |
13.4 |
% |
|
|
|
|
|
14.4 |
% |
12.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
304 |
|
|
199 |
|
|
|
|
|
|
|
1,032 |
|
|
742 |
|
|
|
|
|
Depreciation and amortization |
|
|
12,405 |
|
|
2,133 |
|
|
|
|
|
|
|
18,743 |
|
|
9,912 |
|
|
|
|
|
EBITDA, as adjusted |
|
$ |
73,056 |
|
$ |
36,084 |
|
|
102.5 |
% |
|
$ |
205,580 |
|
$ |
126,870 |
|
|
62.0 |
% |
|
EBITDA margin, as adjusted |
|
|
15.0 |
% |
14.3 |
% |
|
|
|
|
|
16.0 |
% |
13.7 |
% |
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
|
|
|
Year Ended December 31, |
|
|
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
Change |
|
|
|
2021 |
|
|
|
2020 |
|
|
Change |
|
|
Total net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales before eliminations |
|
$ |
1,112,936 |
|
|
$ |
760,347 |
|
|
|
|
|
|
$ |
3,665,577 |
|
|
$ |
2,869,668 |
|
|
|
|
|
|
Intercompany eliminations |
|
|
(49,538 |
) |
|
|
(38,860 |
) |
|
|
|
|
|
|
(179,370 |
) |
|
|
(151,630 |
) |
|
|
|
|
|
Net sales after eliminations |
|
$ |
1,063,398 |
|
|
$ |
721,487 |
|
|
|
47.4 |
% |
|
$ |
3,486,207 |
|
|
$ |
2,718,038 |
|
|
|
28.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported - segments |
|
$ |
149,939 |
|
|
$ |
115,388 |
|
|
|
|
|
|
$ |
553,090 |
|
|
$ |
410,136 |
|
|
|
|
|
|
General corporate expense, net |
|
|
(22,893 |
) |
|
|
(6,174 |
) |
|
|
|
|
|
|
(47,018 |
) |
|
|
(30,785 |
) |
|
|
|
|
|
Intercompany eliminations |
|
|
(8,603 |
) |
|
|
(6,137 |
) |
|
|
|
|
|
|
(29,653 |
) |
|
|
(24,305 |
) |
|
|
|
|
|
Operating profit, as reported |
|
$ |
118,443 |
|
|
$ |
103,077 |
|
|
|
|
|
|
$ |
476,419 |
|
|
$ |
355,046 |
|
|
|
|
|
|
Operating margin, as reported |
|
|
11.1 |
% |
|
14.3 |
% |
|
|
|
|
|
13.7 |
% |
|
13.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
|
(4 |
) |
|
|
|
|
|
|
16 |
|
|
|
2,097 |
|
|
|
|
|
|
Acquisition related costs † |
|
|
16,262 |
|
|
|
518 |
|
|
|
|
|
|
|
22,107 |
|
|
|
855 |
|
|
|
|
|
|
Acquisition purchase accounting (inventory step-up) |
|
|
15,853 |
|
|
|
— |
|
|
|
|
|
|
|
15,853 |
|
|
|
— |
|
|
|
|
|
|
Refinancing costs |
|
|
188 |
|
|
|
— |
|
|
|
|
|
|
|
188 |
|
|
|
57 |
|
|
|
|
|
|
COVID-19 pay |
|
|
— |
|
|
|
384 |
|
|
|
|
|
|
|
659 |
|
|
|
1,368 |
|
|
|
|
|
|
Operating profit, as adjusted |
|
$ |
150,746 |
|
|
$ |
103,975 |
|
|
|
|
|
|
$ |
515,242 |
|
|
$ |
359,423 |
|
|
|
|
|
|
Operating margin, as adjusted |
|
|
14.2 |
% |
|
14.4 |
% |
|
|
|
|
|
14.8 |
% |
|
13.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
2,941 |
|
|
|
2,593 |
|
|
|
|
|
|
|
11,316 |
|
|
|
14,910 |
|
|
|
|
|
|
Depreciation and amortization |
|
|
28,385 |
|
|
|
14,883 |
|
|
|
|
|
|
|
79,390 |
|
|
|
62,410 |
|
|
|
|
|
|
EBITDA, as adjusted |
|
$ |
182,072 |
|
|
$ |
121,451 |
|
|
|
49.9 |
% |
|
$ |
605,948 |
|
|
$ |
436,743 |
|
|
|
38.7 |
% |
|
EBITDA margin, as adjusted |
|
|
17.1 |
% |
|
16.8 |
% |
|
|
|
|
|
17.4 |
% |
|
16.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales change period over period |
|
|
341,911 |
|
|
|
|
|
|
|
|
|
|
768,169 |
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted, change period over period |
|
|
60,621 |
|
|
|
|
|
|
|
|
|
|
169,205 |
|
|
|
|
|
|
|
|
|
Incremental EBITDA, as adjusted, as a percentage of change in
sales |
|
|
17.7 |
% |
|
|
|
|
|
|
|
|
22.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
† Acquisition related costs 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 December 31, |
|
Year Ended December 31, |
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
Gross Profit Reconciliations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
1,063,398 |
|
|
$ |
721,487 |
|
|
$ |
3,486,207 |
|
|
$ |
2,718,038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit, as reported |
|
$ |
283,161 |
|
|
$ |
198,020 |
|
|
$ |
974,389 |
|
|
$ |
746,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition purchase accounting (inventory step-up) |
|
|
15,853 |
|
|
|
— |
|
|
|
15,853 |
|
|
|
— |
|
|
|
Rationalization charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,016 |
|
|
|
COVID-19 pay |
|
|
— |
|
|
|
380 |
|
|
|
592 |
|
|
|
1,135 |
|
|
|
Gross profit, as adjusted |
|
$ |
299,014 |
|
|
$ |
198,400 |
|
|
$ |
990,834 |
|
|
$ |
748,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin, as reported |
|
|
26.6 |
% |
|
27.4 |
% |
|
27.9 |
% |
|
27.5 |
% |
|
Gross margin, as adjusted |
|
|
28.1 |
% |
|
27.5 |
% |
|
28.4 |
% |
|
27.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sellling, General and Administrative Expense
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense, as
reported |
|
$ |
164,718 |
|
|
$ |
94,943 |
|
|
$ |
497,970 |
|
|
$ |
391,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
|
(4 |
) |
|
|
16 |
|
|
|
1,081 |
|
|
|
Acquisition related costs |
|
|
16,262 |
|
|
|
518 |
|
|
|
22,107 |
|
|
|
855 |
|
|
|
Refinancing costs |
|
|
188 |
|
|
|
— |
|
|
|
188 |
|
|
|
57 |
|
|
|
COVID-19 pay |
|
|
— |
|
|
|
4 |
|
|
|
67 |
|
|
|
233 |
|
|
|
Selling, general, and administrative expense, as
adjusted |
|
$ |
148,268 |
|
|
$ |
94,425 |
|
|
$ |
475,592 |
|
|
$ |
389,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
118,443 |
|
|
$ |
103,077 |
|
|
$ |
476,419 |
|
|
$ |
355,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
|
(4 |
) |
|
|
16 |
|
|
|
2,097 |
|
|
|
Acquisition related costs |
|
|
16,262 |
|
|
|
518 |
|
|
|
22,107 |
|
|
|
855 |
|
|
|
Acquisition purchase accounting (inventory step-up) |
|
|
15,853 |
|
|
|
— |
|
|
|
15,853 |
|
|
|
— |
|
|
|
Refinancing costs |
|
|
188 |
|
|
|
— |
|
|
|
188 |
|
|
|
57 |
|
|
|
COVID-19 pay |
|
|
— |
|
|
|
384 |
|
|
|
659 |
|
|
|
1,368 |
|
|
|
Operating profit, as adjusted |
|
$ |
150,746 |
|
|
$ |
103,975 |
|
|
$ |
515,242 |
|
|
$ |
359,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported |
|
|
11.1 |
% |
|
14.3 |
% |
|
13.7 |
% |
|
13.1 |
% |
|
Operating margin, as adjusted |
|
|
14.2 |
% |
|
14.4 |
% |
|
14.8 |
% |
|
13.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Per Common Share Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes, as reported |
|
$ |
107,328 |
|
|
$ |
95,417 |
|
|
$ |
433,443 |
|
|
$ |
323,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
|
(4 |
) |
|
|
16 |
|
|
|
2,097 |
|
|
|
Acquisition related costs |
|
|
16,262 |
|
|
|
518 |
|
|
|
22,107 |
|
|
|
855 |
|
|
|
Acquisition purchase accounting (inventory step-up) |
|
|
15,853 |
|
|
|
— |
|
|
|
15,853 |
|
|
|
— |
|
|
|
Refinancing costs and loss on extinguishment of debt |
|
|
163 |
|
|
|
— |
|
|
|
14,025 |
|
|
|
290 |
|
|
|
COVID-19 pay |
|
|
— |
|
|
|
384 |
|
|
|
659 |
|
|
|
1,368 |
|
|
|
Income before income taxes, as adjusted |
|
|
139,606 |
|
|
|
96,315 |
|
|
|
486,103 |
|
|
|
327,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax rate at 26.0% |
|
|
(36,298 |
) |
|
|
(25,042 |
) |
|
|
(126,387 |
) |
|
|
(85,202 |
) |
|
|
Income, as adjusted |
|
$ |
103,308 |
|
|
$ |
71,273 |
|
|
$ |
359,716 |
|
|
$ |
242,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share, as adjusted |
|
$ |
3.12 |
|
|
$ |
2.15 |
|
|
$ |
10.85 |
|
|
$ |
7.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted common shares outstanding |
|
|
33,117,227 |
|
|
|
33,189,104 |
|
|
|
33,146,171 |
|
|
|
33,299,986 |
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Branch and Acquisition
Metrics (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same branch: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installation |
|
$ |
570,675 |
|
|
$ |
508,812 |
|
|
$ |
2,157,011 |
|
|
$ |
1,943,461 |
|
|
|
Specialty Distribution |
|
|
290,662 |
|
|
|
251,535 |
|
|
|
1,083,497 |
|
|
|
926,207 |
|
|
|
Eliminations |
|
|
(49,391 |
) |
|
|
(38,860 |
) |
|
|
(177,904 |
) |
|
|
(151,630 |
) |
|
|
Total same branch |
|
|
811,946 |
|
|
|
721,487 |
|
|
|
3,062,604 |
|
|
|
2,718,038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installation |
|
$ |
56,448 |
|
|
$ |
— |
|
|
$ |
221,390 |
|
|
$ |
— |
|
|
|
Specialty Distribution |
|
|
195,151 |
|
|
|
— |
|
|
|
203,679 |
|
|
|
— |
|
|
|
Eliminations |
|
|
(147 |
) |
|
|
— |
|
|
|
(1,466 |
) |
|
|
— |
|
|
|
Total acquisitions |
|
|
251,452 |
|
|
|
— |
|
|
|
423,603 |
|
|
|
— |
|
|
|
Total |
|
$ |
1,063,398 |
|
|
$ |
721,487 |
|
|
$ |
3,486,207 |
|
|
$ |
2,718,038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit, as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same branch |
|
$ |
238,840 |
|
|
$ |
198,400 |
|
|
$ |
889,252 |
|
|
$ |
748,512 |
|
|
|
Acquisitions (a) |
|
|
60,174 |
|
|
|
— |
|
|
|
101,582 |
|
|
|
— |
|
|
|
Total |
|
$ |
299,014 |
|
|
$ |
198,400 |
|
|
$ |
990,834 |
|
|
$ |
748,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin, as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same branch (b) |
|
|
29.4 |
|
% |
|
27.5 |
|
% |
|
29.0 |
|
% |
27.5 |
|
% |
|
Acquisitions (c) |
|
|
23.9 |
|
% |
|
|
|
|
24.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same branch |
|
$ |
135,595 |
|
|
$ |
103,975 |
|
|
$ |
484,085 |
|
|
$ |
359,423 |
|
|
|
Acquisitions (a) |
|
|
15,151 |
|
|
|
— |
|
|
|
31,157 |
|
|
|
— |
|
|
|
Total |
|
$ |
150,746 |
|
|
$ |
103,975 |
|
|
$ |
515,242 |
|
|
$ |
359,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin, as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same branch (b) |
|
|
16.7 |
|
% |
|
14.4 |
|
% |
|
15.8 |
|
% |
13.2 |
|
% |
|
Acquisitions (c) |
|
|
6.0 |
|
% |
|
|
|
|
7.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same branch |
|
$ |
154,051 |
|
|
$ |
121,451 |
|
|
$ |
554,379 |
|
|
$ |
436,743 |
|
|
|
Acquisitions (a) |
|
|
28,021 |
|
|
|
— |
|
|
|
51,569 |
|
|
|
— |
|
|
|
Total |
|
$ |
182,072 |
|
|
$ |
121,451 |
|
|
$ |
605,948 |
|
|
$ |
436,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted, as a percentage of sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same branch (b) |
|
|
19.0 |
|
% |
|
|
|
|
18.1 |
|
% |
|
|
|
Acquisitions (c) |
|
|
11.1 |
|
% |
|
|
|
|
12.2 |
|
% |
|
|
|
Total (d) |
|
|
17.1 |
|
% |
|
16.8 |
|
% |
|
17.4 |
|
% |
16.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Adjusted Incremental EBITDA, as a percentage of change
in sales |
|
|
|
|
|
|
|
|
|
|
|
Same branch (e) |
|
|
36.0 |
|
% |
|
|
|
|
34.1 |
|
% |
|
|
|
Acquisitions (c) |
|
|
11.1 |
|
% |
|
|
|
|
12.2 |
|
% |
|
|
|
Total (f) |
|
|
17.7 |
|
% |
|
|
|
|
22.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Represents current year impact of acquisitions in their first
twelve months |
|
|
|
|
|
|
|
|
|
|
|
(b) Same branch metric, as adjusted, as a percentage of same branch
sales |
|
|
|
|
|
|
|
|
|
|
|
|
(c) Acquired metric, 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 December 31, |
|
Year Ended December 31, |
|
|
|
2021 |
|
2020 |
|
|
2021 |
|
2020 |
|
Net income, as reported |
|
$ |
78,360 |
|
$ |
70,757 |
|
|
$ |
324,016 |
|
$ |
247,023 |
|
Adjustments to arrive at EBITDA, as adjusted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and other, net |
|
|
11,140 |
|
|
7,660 |
|
|
|
29,139 |
|
|
31,723 |
|
Income tax expense |
|
|
28,968 |
|
|
24,660 |
|
|
|
109,427 |
|
|
76,067 |
|
Depreciation and amortization |
|
|
28,385 |
|
|
14,883 |
|
|
|
79,390 |
|
|
62,410 |
|
Share-based compensation |
|
|
2,941 |
|
|
2,593 |
|
|
|
11,316 |
|
|
14,910 |
|
Rationalization charges |
|
|
— |
|
|
(4 |
) |
|
|
16 |
|
|
2,097 |
|
Acquisition related costs |
|
|
16,262 |
|
|
518 |
|
|
|
22,107 |
|
|
855 |
|
Acquisition purchase accounting (inventory step-up) |
15,853 |
|
|
— |
|
|
|
15,853 |
|
|
— |
|
Refinancing costs and loss on extinguishment of debt |
|
|
163 |
|
|
— |
|
|
|
14,025 |
|
|
290 |
|
COVID-19 pay |
|
|
— |
|
|
384 |
|
|
|
659 |
|
|
1,368 |
|
EBITDA, as adjusted |
|
$ |
182,072 |
|
$ |
121,451 |
|
|
$ |
605,948 |
|
$ |
436,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proforma acquisition EBITDA (a) |
|
|
|
|
|
|
|
|
73,898 |
|
|
|
|
Proforma TTM EBITDA, as adjusted |
|
|
|
|
|
|
|
$ |
679,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Represents the trailing twelve months proforma impact of
acquisitions completed in 2021. |
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition Adjusted Net Sales (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
Year Ended |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q3 |
|
December 31, 2021 |
Net Sales |
$ |
742,798 |
|
$ |
834,255 |
|
$ |
845,757 |
|
$ |
1,063,398 |
|
$ |
3,486,207 |
Acquisitions proforma adjustment † |
|
230,581 |
|
|
218,855 |
|
|
227,621 |
|
|
45,291 |
|
|
722,348 |
Net sales, acquisition adjusted |
$ |
973,379 |
|
$ |
1,053,110 |
|
$ |
1,073,378 |
|
$ |
1,108,688 |
|
$ |
4,208,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
† Trailing 12 months sales have been adjusted for the pro forma
effect of acquired branches |
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
2022 Estimated Adjusted EBITDA Range
(Unaudited) |
|
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ending December 31, 2022 |
|
|
|
Low |
|
|
High |
|
Estimated net income |
$ |
423.0 |
|
$ |
470.1 |
|
Adjustments to arrive at estimated EBITDA, as adjusted: |
|
|
|
|
Interest expense and other, net |
|
50.3 |
|
|
46.2 |
|
Income tax expense |
|
148.6 |
|
|
165.2 |
|
Depreciation and amortization |
|
126.4 |
|
|
121.3 |
|
Share-based compensation |
|
13.7 |
|
|
11.2 |
|
Acquisition related costs |
|
8.0 |
|
|
6.0 |
|
Estimated EBITDA, as adjusted |
$ |
770.0 |
|
$ |
820.0 |
|
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