TopBuild Corp. (NYSE:BLD), a
leading installer and specialty distributor of insulation and
related building material products to the construction industry in
the United States and Canada today reported results for the first
quarter ended March 31, 2023.
Robert Buck, President and Chief Executive
Officer, stated, “TopBuild reported another strong quarter with
solid top line growth and margin expansion at both business
segments; Installation and Specialty Distribution. We are
particularly pleased with the performance of our commercial
business which reflects, in part, the success of our installation
branches in capturing light commercial activity across their
respective regions.”
“Our overall results demonstrate the strength of
our operating model, the diversity of our end-markets, the hard
work of our entire TopBuild team, and the operating efficiency
initiatives we continue to implement across the organization.”
First Quarter 2023 Financial Highlights
($ in 000s)
(comparisons are to the quarter ended March 31,
2022)
3 Months Ended 3/31/23 |
Reported |
Change |
Sales |
$1,265,238 |
8.2% |
Gross Margin |
29.3% |
100 bps |
SG&A as % of revenue |
13.5% |
(80 bps) |
Operating Profit |
$199,431 |
21.6% |
Operating Margin |
15.8% |
180 bps |
Net Income |
$135,870 |
18.4% |
Net Income per diluted share |
$4.28 |
23.3% |
|
|
|
3 Months Ended 3/31/23 |
Adjusted |
Change |
Sales |
$1,265,238 |
8.2% |
Gross Margin |
29.3% |
100 bps |
SG&A as % of revenue |
13.2% |
(80 bps) |
Operating Profit |
$203,089 |
21.2% |
Operating Margin |
16.1% |
180 bps |
Net Income |
$138,360 |
19.7% |
Net Income per diluted share |
$4.36 |
24.6% |
EBITDA |
$238,324 |
18.1% |
EBITDA Margin |
18.8% |
150 bps |
|
|
|
|
|
|
3 Months Ended 3/31/23 |
Same Branch |
Change |
Sales |
$1,250,393 |
7.0% |
Adj. Gross Margin |
29.4% |
110 bps |
Adj. Operating Margin |
16.2% |
190 bps |
Adj. EBITDA Margin |
18.9% |
160 bps |
Incremental EBITDA |
43.0% |
|
Operating Segment Highlights ($ in
000s)(comparisons are to the quarter ended March 31,
2022)
Installation |
3 Months Ended 3/31/23 |
|
Specialty Distribution |
3 Months Ended 3/31/23 |
Sales |
$767,090 |
|
Sales |
$558,375 |
Change |
|
|
Change |
|
Volume |
5.4% |
|
Volume |
-3.0% |
Price |
5.8% |
|
Price |
5.7% |
M&A |
2.2% |
|
M&A |
0.0% |
Total Change |
13.4% |
|
Total Change |
2.7% |
Operating Margin |
19.1% |
|
Operating Margin |
13.1% |
Change |
240 bps |
|
Change |
20 bps |
Adj. Operating Margin |
19.2% |
|
Adj. Operating Margin |
13.2% |
Change |
250 bps |
|
Change |
20 bps |
Adj. EBITDA Margin |
21.4% |
|
Adj. EBITDA Margin |
15.8% |
Change |
230 bps |
|
Change |
20 bps |
Capital Allocation“Acquiring
installation and specialty distribution companies remains our
number one capital allocation priority and our prospects center
around our core of insulation. The synergies we recognize and
operational improvements we achieve through M&A create great
returns for our shareholders,” added Buck.
The Company completed one acquisition in the
first quarter, SRI Holdings, which is expected to contribute
approximately $62 million of annual revenue.
2023 Outlook The Company’s outlook for 2023
remains unchanged from the outlook it provided in its fourth
quarter 2022 financial results press release distributed on
February 23, 2023.
Sales and Adjusted EBITDA
Outlook (1) ($ in millions)
2023 |
Low |
High |
Sales |
$ |
4,700 |
$ |
4,900 |
Adjusted EBITDA* |
$ |
820 |
$ |
910 |
*See table for adjusted EBITDA
reconciliation.
(1) This outlook reflects
management’s current view of present and future market conditions
and are based on assumptions such as housing starts and
completions, 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 2022 Annual Report on Form 10-K and subsequent SEC
reports.
Additional Information
Quarterly 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 first quarter 2023 financial results is scheduled
for today, Thursday, May 4, 2023, 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.
About TopBuildTopBuild Corp.,
headquartered in Daytona Beach, Florida, is a leading installer and
specialty distributor of insulation and related building material
products to the construction industry in the United States and
Canada. We provide insulation installation services nationwide
through our Installation segment 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 180
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 StatementThis 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 stock repurchase transactions. These
forward-looking statements can be identified by words such as
“will,” “would,” “anticipate,” “expect,” “believe,” “designed,”
“plan,” “may,” “project,” “estimate” 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
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, |
|
|
2023 |
|
|
2022 |
|
Net sales |
|
$ |
1,265,238 |
|
|
$ |
1,168,918 |
|
Cost of
sales |
|
|
895,023 |
|
|
|
837,717 |
|
Gross profit |
|
|
370,215 |
|
|
|
331,201 |
|
|
|
|
|
|
|
|
Selling,
general, and administrative expense |
|
|
170,784 |
|
|
|
167,247 |
|
Operating profit |
|
|
199,431 |
|
|
|
163,954 |
|
|
|
|
|
|
|
|
Other income
(expense), net: |
|
|
|
|
|
|
Interest expense |
|
|
(18,039 |
) |
|
|
(11,966 |
) |
Other, net |
|
|
1,923 |
|
|
|
684 |
|
Other
expense, net |
|
|
(16,116 |
) |
|
|
(11,282 |
) |
Income
before income taxes |
|
|
183,315 |
|
|
|
152,672 |
|
|
|
|
|
|
|
|
Income tax
expense |
|
|
(47,445 |
) |
|
|
(37,961 |
) |
Net
income |
|
$ |
135,870 |
|
|
$ |
114,711 |
|
|
|
|
|
|
|
|
Net
income per common share: |
|
|
|
|
|
|
Basic |
|
$ |
4.31 |
|
|
$ |
3.50 |
|
Diluted |
|
$ |
4.28 |
|
|
$ |
3.47 |
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
31,550,658 |
|
|
|
32,738,525 |
|
Diluted |
|
|
31,713,239 |
|
|
|
33,042,490 |
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
Condensed Consolidated Statements of Comprehensive Income
(Unaudited) |
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
2022 |
|
Net
income |
|
$ |
135,870 |
|
$ |
114,711 |
|
Other
comprehensive income: |
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
1,753 |
|
|
3,218 |
|
Comprehensive income |
|
$ |
137,623 |
|
$ |
117,929 |
|
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets and Other Financial
Data (Unaudited) |
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
333,778 |
|
|
$ |
240,069 |
|
Receivables, net of an allowance for credit losses of $16,007 at
March 31, 2023, and $16,281 at December 31, 2022 |
|
|
833,959 |
|
|
|
836,071 |
|
Inventories, net |
|
|
422,229 |
|
|
|
438,644 |
|
Prepaid expenses and other current assets |
|
|
22,861 |
|
|
|
34,257 |
|
Total current assets |
|
|
1,612,827 |
|
|
|
1,549,041 |
|
|
|
|
|
|
|
|
|
|
Right of
use assets |
|
|
211,381 |
|
|
|
205,892 |
|
Property
and equipment, net |
|
|
260,146 |
|
|
|
253,484 |
|
Goodwill |
|
|
1,992,394 |
|
|
|
1,966,994 |
|
Other
intangible assets, net |
|
|
607,683 |
|
|
|
614,967 |
|
Other
assets |
|
|
16,483 |
|
|
|
16,453 |
|
Total assets |
|
$ |
4,700,914 |
|
|
$ |
4,606,831 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
450,963 |
|
|
$ |
487,114 |
|
Current portion of long-term debt |
|
|
42,371 |
|
|
|
40,068 |
|
Accrued liabilities |
|
|
193,347 |
|
|
|
199,370 |
|
Short-term operating lease liabilities |
|
|
62,110 |
|
|
|
60,880 |
|
Short-term finance lease liabilities |
|
|
2,452 |
|
|
|
2,207 |
|
Total current liabilities |
|
|
751,243 |
|
|
|
789,639 |
|
|
|
|
|
|
|
|
|
|
Long-term
debt |
|
|
1,405,931 |
|
|
|
1,417,257 |
|
Deferred
tax liabilities, net |
|
|
252,044 |
|
|
|
251,481 |
|
Long-term
portion of insurance reserves |
|
|
61,466 |
|
|
|
59,783 |
|
Long-term
operating lease liabilities |
|
|
154,844 |
|
|
|
149,943 |
|
Long-term
finance lease liabilities |
|
|
4,983 |
|
|
|
6,673 |
|
Other
liabilities |
|
|
5,259 |
|
|
|
2,349 |
|
Total liabilities |
|
|
2,635,770 |
|
|
|
2,677,125 |
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
2,065,144 |
|
|
|
1,929,706 |
|
Total liabilities and equity |
|
$ |
4,700,914 |
|
|
$ |
4,606,831 |
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, |
|
|
|
2023 |
|
|
2022 |
|
Other Financial Data |
|
|
|
|
|
|
|
|
Receivable days |
|
|
52 |
|
|
|
47 |
|
Inventory days |
|
|
43 |
|
|
|
46 |
|
Accounts payable days |
|
|
60 |
|
|
|
63 |
|
Receivables, net plus inventories, net less accounts payable |
|
$ |
805,225 |
|
|
$ |
651,595 |
|
Receivables, net plus inventories, net less accounts payable as a
percent of sales (TTM) † |
|
|
15.6 |
% |
|
|
14.8 |
% |
|
|
|
|
|
|
|
|
|
† 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, |
|
|
2023 |
|
|
2022 |
|
Cash
Flows Provided by (Used in) Operating Activities: |
|
|
|
|
|
Net income |
|
$ |
135,870 |
|
|
$ |
114,711 |
|
Adjustments
to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
Depreciation
and amortization |
|
|
32,100 |
|
|
|
30,499 |
|
Share-based
compensation |
|
|
3,135 |
|
|
|
3,727 |
|
Loss on sale
of property and equipment |
|
|
185 |
|
|
|
207 |
|
Amortization
of debt issuance costs |
|
|
720 |
|
|
|
706 |
|
Provision
for bad debt expense |
|
|
1,338 |
|
|
|
2,512 |
|
Loss from
inventory obsolescence |
|
|
1,642 |
|
|
|
868 |
|
Deferred
income taxes, net |
|
|
563 |
|
|
|
(81 |
) |
Change in
certain assets and liabilities: |
|
|
|
|
|
|
Receivables,
net |
|
|
(10,847 |
) |
|
|
(65,031 |
) |
Inventories,
net |
|
|
20,096 |
|
|
|
(38,570 |
) |
Prepaid
expenses and other current assets |
|
|
11,579 |
|
|
|
(2,347 |
) |
Accounts
payable |
|
|
(25,480 |
) |
|
|
12,663 |
|
Accrued
liabilities |
|
|
(3,339 |
) |
|
|
29,523 |
|
Other,
net |
|
|
2,239 |
|
|
|
96 |
|
Net cash
provided by operating activities |
|
|
169,801 |
|
|
|
89,483 |
|
|
|
|
|
|
|
|
Cash
Flows Provided by (Used in) Investing Activities: |
|
|
|
|
|
|
Purchases of
property and equipment |
|
|
(15,580 |
) |
|
|
(18,413 |
) |
Acquisition
of businesses, net of cash acquired |
|
|
(45,845 |
) |
|
|
(13,967 |
) |
Proceeds
from sale of property and equipment |
|
|
455 |
|
|
|
253 |
|
Net cash
used in investing activities |
|
|
(60,970 |
) |
|
|
(32,127 |
) |
|
|
|
|
|
|
|
Cash
Flows Provided by (Used in) Financing Activities: |
|
|
|
|
|
|
Repayment of
long-term debt |
|
|
(9,743 |
) |
|
|
(9,634 |
) |
Taxes
withheld and paid on employees' equity awards |
|
|
(6,350 |
) |
|
|
(11,658 |
) |
Exercise of
stock options |
|
|
1,029 |
|
|
|
808 |
|
Repurchase
of shares of common stock |
|
|
— |
|
|
|
(50,000 |
) |
Payment of
contingent consideration |
|
|
— |
|
|
|
(23 |
) |
Net cash
used in financing activities |
|
|
(15,064 |
) |
|
|
(70,507 |
) |
Impact of
exchange rate changes on cash |
|
|
(58 |
) |
|
|
(75 |
) |
Net increase
(decrease) in cash and cash equivalents |
|
|
93,709 |
|
|
|
(13,226 |
) |
Cash and
cash equivalents- Beginning of period |
|
|
240,069 |
|
|
|
139,779 |
|
Cash and
cash equivalents- End of period |
|
$ |
333,778 |
|
|
$ |
126,553 |
|
|
|
|
|
|
|
|
Supplemental disclosure of noncash
activities: |
|
|
|
|
|
|
Leased
assets obtained in exchange for new operating lease
liabilities |
|
$ |
18,271 |
|
|
$ |
22,449 |
|
Accruals for
property and equipment |
|
|
835 |
|
|
|
213 |
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
|
|
|
|
|
Segment Data (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
Installation |
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
767,090 |
|
|
$ |
676,693 |
|
|
|
13.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
146,897 |
|
|
$ |
112,679 |
|
|
|
|
|
Operating margin, as reported |
|
|
19.1 |
% |
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
|
473 |
|
|
|
|
|
Acquisition related costs |
|
|
263 |
|
|
|
80 |
|
|
|
|
|
Operating profit, as adjusted |
|
$ |
147,160 |
|
|
$ |
113,232 |
|
|
|
|
|
Operating margin, as adjusted |
|
|
19.2 |
% |
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
379 |
|
|
|
407 |
|
|
|
|
|
Depreciation and amortization |
|
|
16,493 |
|
|
|
15,685 |
|
|
|
|
|
EBITDA, as adjusted |
|
$ |
164,032 |
|
|
$ |
129,324 |
|
|
|
26.8 |
% |
EBITDA margin, as adjusted |
|
|
21.4 |
% |
|
|
19.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Distribution |
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
558,375 |
|
|
$ |
543,862 |
|
|
|
2.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
73,333 |
|
|
$ |
70,420 |
|
|
|
|
|
Operating margin, as reported |
|
|
13.1 |
% |
|
|
12.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related costs |
|
|
340 |
|
|
|
241 |
|
|
|
|
|
Operating profit, as adjusted |
|
$ |
73,673 |
|
|
$ |
70,661 |
|
|
|
|
|
Operating margin, as adjusted |
|
|
13.2 |
% |
|
|
13.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
238 |
|
|
|
353 |
|
|
|
|
|
Depreciation and amortization |
|
|
14,572 |
|
|
|
14,030 |
|
|
|
|
|
EBITDA, as adjusted |
|
$ |
88,483 |
|
|
$ |
85,044 |
|
|
|
4.0 |
% |
EBITDA margin, as adjusted |
|
|
15.8 |
% |
|
|
15.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (Unaudited) |
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
Change |
|
Total net sales |
|
|
|
|
|
|
|
|
|
|
Sales before eliminations |
|
$ |
1,325,465 |
|
|
$ |
1,220,555 |
|
|
|
|
|
Intercompany eliminations |
|
|
(60,227 |
) |
|
|
(51,637 |
) |
|
|
|
|
Net sales after eliminations |
|
$ |
1,265,238 |
|
|
$ |
1,168,918 |
|
|
|
8.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported - segments |
|
$ |
220,230 |
|
|
$ |
183,099 |
|
|
|
|
|
General corporate expense, net |
|
|
(10,828 |
) |
|
|
(10,437 |
) |
|
|
|
|
Intercompany eliminations |
|
|
(9,971 |
) |
|
|
(8,708 |
) |
|
|
|
|
Operating profit, as reported |
|
$ |
199,431 |
|
|
$ |
163,954 |
|
|
|
|
|
Operating margin, as reported |
|
|
15.8 |
% |
|
|
14.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
|
473 |
|
|
|
|
|
Acquisition related costs † |
|
|
3,658 |
|
|
|
3,076 |
|
|
|
|
|
Operating profit, as adjusted |
|
$ |
203,089 |
|
|
$ |
167,503 |
|
|
|
|
|
Operating margin, as adjusted |
|
|
16.1 |
% |
|
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
3,135 |
|
|
|
3,727 |
|
|
|
|
|
Depreciation and amortization |
|
|
32,100 |
|
|
|
30,499 |
|
|
|
|
|
EBITDA, as adjusted |
|
$ |
238,324 |
|
|
$ |
201,729 |
|
|
|
18.1 |
% |
EBITDA margin, as adjusted |
|
|
18.8 |
% |
|
|
17.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales change period over period |
|
|
96,320 |
|
|
|
|
|
|
|
|
EBITDA, as adjusted, change period over period |
|
|
36,595 |
|
|
|
|
|
|
|
|
Incremental EBITDA, as adjusted, as a percentage of change in
sales |
|
|
38.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
† 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 March 31, |
|
|
2023 |
|
2022 |
Gross Profit Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
1,265,238 |
|
|
$ |
1,168,918 |
|
|
|
|
|
|
|
|
Gross profit, as reported |
|
$ |
370,215 |
|
|
$ |
331,201 |
|
|
|
|
|
|
|
|
Acquisition
related costs |
|
|
— |
|
|
|
121 |
|
Gross profit, as adjusted |
|
$ |
370,215 |
|
|
$ |
331,322 |
|
|
|
|
|
|
|
|
Gross
margin, as reported |
|
|
29.3 |
% |
|
|
28.3 |
% |
Gross
margin, as adjusted |
|
|
29.3 |
% |
|
|
28.3 |
% |
|
|
|
|
|
|
|
Selling, General and Administrative Expense
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense, as
reported |
|
$ |
170,784 |
|
|
$ |
167,247 |
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
|
473 |
|
Acquisition
related costs |
|
|
3,658 |
|
|
|
2,955 |
|
Selling, general, and administrative expense, as
adjusted |
|
$ |
167,126 |
|
|
$ |
163,819 |
|
|
|
|
|
|
|
|
Operating Profit Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
|
$ |
199,431 |
|
|
$ |
163,954 |
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
|
473 |
|
Acquisition
related costs |
|
|
3,658 |
|
|
|
3,076 |
|
Operating profit, as adjusted |
|
$ |
203,089 |
|
|
$ |
167,503 |
|
|
|
|
|
|
|
|
Operating
margin, as reported |
|
|
15.8 |
% |
|
|
14.0 |
% |
Operating
margin, as adjusted |
|
|
16.1 |
% |
|
|
14.3 |
% |
|
|
|
|
|
|
|
Income Per Common Share Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes, as reported |
|
$ |
183,315 |
|
|
$ |
152,672 |
|
|
|
|
|
|
|
|
Rationalization charges |
|
|
— |
|
|
|
473 |
|
Acquisition
related costs |
|
|
3,658 |
|
|
|
3,076 |
|
Income before income taxes, as adjusted |
|
|
186,973 |
|
|
|
156,221 |
|
|
|
|
|
|
|
|
Tax rate at
26.0% |
|
|
(48,613 |
) |
|
|
(40,617 |
) |
Income, as adjusted |
|
$ |
138,360 |
|
|
$ |
115,604 |
|
|
|
|
|
|
|
|
Income per common share, as adjusted |
|
$ |
4.36 |
|
|
$ |
3.50 |
|
|
|
|
|
|
|
|
Weighted
average diluted common shares outstanding |
|
|
31,713,239 |
|
|
|
33,042,490 |
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
Same
Branch and Acquisition Metrics (Unaudited) |
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2023 |
|
2022 |
Net
sales |
|
|
|
|
|
|
Same
branch: |
|
|
|
|
|
|
Installation |
|
$ |
752,245 |
|
|
$ |
676,693 |
|
Specialty Distribution |
|
|
558,375 |
|
|
|
543,862 |
|
Eliminations |
|
|
(60,227 |
) |
|
|
(51,637 |
) |
Total same
branch |
|
|
1,250,393 |
|
|
|
1,168,918 |
|
|
|
|
|
|
|
|
Acquisitions
(a): |
|
|
|
|
|
|
Installation |
|
$ |
14,845 |
|
|
$ |
— |
|
Total
acquisitions |
|
|
14,845 |
|
|
|
— |
|
Total |
|
$ |
1,265,238 |
|
|
$ |
1,168,918 |
|
|
|
|
|
|
|
|
EBITDA, as adjusted |
|
|
|
|
|
|
Same
branch |
|
$ |
236,775 |
|
|
$ |
201,729 |
|
Acquisitions
(a) |
|
|
1,549 |
|
|
|
— |
|
Total |
|
$ |
238,324 |
|
|
$ |
201,729 |
|
|
|
|
|
|
|
|
EBITDA, as adjusted, as a percentage of sales |
|
|
|
|
|
|
Same branch
(b) |
|
|
18.9 |
% |
|
|
|
Acquisitions
(c) |
|
|
10.4 |
% |
|
|
|
Total (d) |
|
|
18.8 |
% |
|
|
17.3 |
% |
|
|
|
|
|
|
|
As
Adjusted Incremental EBITDA, as a percentage of change in
sales |
|
|
|
|
|
|
Same branch
(e) |
|
|
43.0 |
% |
|
|
|
Acquisitions
(c) |
|
|
10.4 |
% |
|
|
|
Total (f) |
|
|
38.0 |
% |
|
|
|
|
|
|
|
|
|
|
(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 March 31, |
|
|
|
2023 |
|
2022 |
|
Net
income, as reported |
|
$ |
135,870 |
|
$ |
114,711 |
|
Adjustments
to arrive at EBITDA, as adjusted: |
|
|
|
|
|
|
|
Interest expense and other, net |
|
|
16,116 |
|
|
11,282 |
|
Income tax expense |
|
|
47,445 |
|
|
37,961 |
|
Depreciation and amortization |
|
|
32,100 |
|
|
30,499 |
|
Share-based compensation |
|
|
3,135 |
|
|
3,727 |
|
Rationalization charges |
|
|
— |
|
|
473 |
|
Acquisition related costs |
|
|
3,658 |
|
|
3,076 |
|
EBITDA, as adjusted |
|
$ |
238,324 |
|
$ |
201,729 |
|
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition Adjusted Net Sales (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
2023 |
|
Trailing Twelve Months Ended |
|
Q2 |
|
Q3 |
|
Q4 |
|
Q1 |
|
March 31, 2023 |
Net
Sales |
$ |
1,274,285 |
|
$ |
1,300,998 |
|
$ |
1,264,543 |
|
$ |
1,265,238 |
|
$ |
5,105,064 |
Acquisitions
proforma adjustment † |
|
15,575 |
|
|
17,576 |
|
|
18,279 |
|
|
6,187 |
|
|
57,617 |
Net sales,
acquisition adjusted |
$ |
1,289,860 |
|
$ |
1,318,574 |
|
$ |
1,282,822 |
|
$ |
1,271,425 |
|
$ |
5,162,681 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
† Trailing 12 months sales have been adjusted for the pro forma
effect of acquired branches |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
2023 Estimated Adjusted EBITDA Range
(Unaudited) |
|
|
|
|
|
(in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ending December 31, 2023 |
|
|
|
Low |
|
|
High |
|
Estimated net income |
$ |
445.0 |
|
|
521.0 |
|
Adjustments to arrive at estimated EBITDA, as adjusted: |
|
|
|
|
|
Interest expense and other, net |
|
67.0 |
|
|
63.0 |
|
Income tax expense |
|
157.0 |
|
|
183.0 |
|
Depreciation and amortization |
|
129.0 |
|
|
125.0 |
|
Share-based compensation |
|
15.0 |
|
|
13.0 |
|
Acquisition related costs |
|
7.0 |
|
|
5.0 |
|
Estimated EBITDA, as adjusted |
$ |
820.0 |
|
$ |
910.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TopBuild (NYSE:BLD)
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