Raises Revenue and Adjusted EBITDA Outlook
Announces $100 Million Accelerated Share Repurchase
DAYTONA BEACH, Fla., May 05, 2022 (GLOBE NEWSWIRE) -- 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 first quarter ended March 31, 2022.
Robert Buck, President and Chief Executive Officer, stated, “TopBuild reported another outstanding quarter, once again demonstrating the strength of our operating model. Strong demand, coupled with our ongoing focus on managing price, achieving operational efficiency improvements, and leveraging fixed costs, drove solid conversion of top line growth to the bottom line.
“We are particularly pleased with our same branch adjusted gross margin and adjusted EBITDA margin, which expanded 290 basis points and 310 basis points, respectively, from the prior year.
“In addition, the integration of Distribution International is proceeding very well and we are confident we will achieve the $35 million to $40 million of synergies per the timeline outlined at the close of the transaction in October 2021.”
First Quarter 2022 Financial Highlights ($ in 000s)
(comparisons are to the quarter ended March 31, 2021)
3 Months Ended 3/31/22 | Reported | Change |
Sales | $1,168,918 | 57.4% |
Gross Margin | 28.3% | 170 bps |
SG&A as % of revenue | 14.3% | 60 bps |
Operating Profit | $163,954 | 71.0% |
Operating Margin | 14.0% | 110 bps |
Net Income | $114,711 | 91.7% |
Net Income per diluted share | $3.47 | 92.8% |
3 Months Ended 3/31/22 | Adjusted | Change |
Sales | $1,168,918 | 57.4% |
Gross Margin | 28.3% | 160 bps |
SG&A as % of revenue | 14.0% | 40 bps |
Operating Profit | $167,503 | 72.4% |
Operating Margin | 14.3% | 120 bps |
Net Income | $115,604 | 72.3% |
Net Income per diluted share | $3.50 | 73.3% |
EBITDA | $201,729 | 74.2% |
EBITDA Margin | 17.3% | 170 bps |
3 Months Ended 3/31/22 | Same Branch | Change |
Sales | $881,865 | 18.7% |
Adj. Gross Margin | 29.6% | 290 bps |
Adj. Operating Margin | 16.4% | 330 bps |
Adj. EBITDA Margin | 18.7% | 310 bps |
Incremental EBITDA | 35.2% |
Operating Segment Highlights ($ in 000s)(comparisons are to the quarter ended March 31, 2021)
Installation | 3 Months Ended 3/31/22 | Specialty Distribution | 3 Months Ended 3/31/22 | |
Sales | $676,693 | Sales | $543,862 | |
Change | Change | |||
Volume | 3.0% | Volume | 0.0% | |
Price | 14.0% | Price | 22.9% | |
M&A | 10.0% | M&A | 93.3% | |
Total Change | 27.0% | Total Change | 116.2% | |
Operating Margin | 16.7% | Operating Margin | 12.9% | |
Change | 290 bps | Change | (120) bps | |
Adj. Operating Margin | 16.7% | Adj. Operating Margin | 13.0% | |
Change | 280 bps | Change | (110) bps | |
Adj. EBITDA Margin | 19.1% | Adj. EBITDA Margin | 15.6% | |
Change | 270 bps | Change | 60 bps |
Capital Allocation
TTM Revenue at | Month | ||
Company Acquired | Acquisition ($ millions) | Acquired | |
Southwest Insulation (I) | $1.7 | January | |
Billings Insulation (I) | $6.5 | February | |
Green Energy Solutions (I) | $2.0 | March | |
Assured Insulating (I) | $5.5 | April | |
Total | $15.7 |
I = Installation
“We have acquired four residential installation companies year-to-date. We continue to look for opportunities to expand our market presence in all three end-markets we serve and generate strong returns for our shareholders.
“We are also pleased to initiate an accelerated share repurchase, demonstrating our Board’s confidence in TopBuild’s present and future business,” stated Buck.
Share RepurchasesIn the first quarter, the Company repurchased 238,154 shares at an average price of $209.95 per share.
Additionally, under its current $200 million share repurchase authorization, the Company intends to enter into an agreement to repurchase $100 million of its common stock under an accelerated share repurchase (ASR) program. This will be the fourth ASR the Company has undertaken since first quarter 2017. Since January 1, 2016, through March 31, 2022, the Company has repurchased approximately 6.4 million shares of its common stock for a total investment of $472.2 million.
“Our unique operating model and scale are significant competitive advantages that enable us to outperform in any environment. We are optimistic 2022 will be another strong year for TopBuild,” added Buck.
Sales and Adjusted EBITDA Guidance (*) ($ in millions)
2022 | Low | High | ||
Sales | $ | 4,650 | $ | 4,800 |
Adjusted EBITDA* | $ | 810 | $ | 860 |
*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 2021 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 2022 financial results is scheduled for today, Thursday, May 5, 2022, 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 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 stock repurchase transactions. 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. | ||||||||
Condensed Consolidated Statements of Operations (Unaudited) | ||||||||
(in thousands, except share and per common share amounts) | ||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Net sales | $ | 1,168,918 | $ | 742,798 | ||||
Cost of sales | 837,717 | 545,039 | ||||||
Gross profit | 331,201 | 197,759 | ||||||
Selling, general, and administrative expense | 167,247 | 101,872 | ||||||
Operating profit | 163,954 | 95,887 | ||||||
Other income (expense), net: | ||||||||
Interest expense | (11,966 | ) | (6,603 | ) | ||||
Loss on extinguishment of debt | — | (13,862 | ) | |||||
Other, net | 684 | 77 | ||||||
Other expense, net | (11,282 | ) | (20,388 | ) | ||||
Income before income taxes | 152,672 | 75,499 | ||||||
Income tax expense | (37,961 | ) | (15,657 | ) | ||||
Net income | $ | 114,711 | $ | 59,842 | ||||
Net income per common share: | ||||||||
Basic | $ | 3.50 | $ | 1.82 | ||||
Diluted | $ | 3.47 | $ | 1.80 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 32,738,525 | 32,826,515 | ||||||
Diluted | 33,042,490 | 33,202,563 | ||||||
TopBuild Corp. | ||||||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | ||||||
(in thousands) | ||||||
Three Months Ended March 31, | ||||||
2022 | 2021 | |||||
Net income | $ | 114,711 | $ | 59,842 | ||
Other comprehensive income: | ||||||
Foreign currency translation adjustment | 3,218 | — | ||||
Comprehensive income | $ | 117,929 | $ | 59,842 | ||
TopBuild Corp. | ||||||||
Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited) | ||||||||
(dollars in thousands) | ||||||||
As of | ||||||||
March 31, 2022 | December 31, 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 126,553 | $ | 139,779 | ||||
Receivables, net of an allowance for credit losses of $10,487 at March 31, 2022, and $8,798 at December 31, 2021 | 735,452 | 668,419 | ||||||
Inventories, net | 390,061 | 352,801 | ||||||
Prepaid expenses and other current assets | 29,102 | 26,692 | ||||||
Total current assets | 1,281,168 | 1,187,691 | ||||||
Right of use assets | 184,762 | 177,177 | ||||||
Property and equipment, net | 248,438 | 244,574 | ||||||
Goodwill | 1,964,297 | 1,949,763 | ||||||
Other intangible assets, net | 669,797 | 684,209 | ||||||
Deferred tax assets, net | — | 1,905 | ||||||
Other assets | 13,101 | 13,211 | ||||||
Total assets | $ | 4,361,563 | $ | 4,258,530 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 473,918 | $ | 461,917 | ||||
Current portion of long-term debt | 38,723 | 38,640 | ||||||
Accrued liabilities | 207,377 | 175,891 | ||||||
Short-term operating lease liabilities | 55,293 | 54,591 | ||||||
Short-term finance lease liabilities | 2,610 | 2,387 | ||||||
Total current liabilities | 777,921 | 733,426 | ||||||
Long-term debt | 1,445,473 | 1,454,483 | ||||||
Deferred tax liabilities, net | 245,674 | 248,243 | ||||||
Long-term portion of insurance reserves | 53,111 | 51,875 | ||||||
Long-term operating lease liabilities | 133,297 | 125,339 | ||||||
Long-term finance lease liabilities | 7,631 | 7,770 | ||||||
Other liabilities | 1,216 | 960 | ||||||
Total liabilities | 2,664,323 | 2,622,096 | ||||||
EQUITY | 1,697,240 | 1,636,434 | ||||||
Total liabilities and equity | $ | 4,361,563 | $ | 4,258,530 | ||||
As of March 31, | ||||||||
2022 | 2021 | |||||||
Other Financial Data | ||||||||
Receivable days | 47 | 45 | ||||||
Inventory days | 46 | 29 | ||||||
Accounts payable days | 63 | 76 | ||||||
Receivables, net plus inventories, net less accounts payable | $ | 651,595 | $ | 296,023 | ||||
Receivables, net plus inventories, net less accounts payable as a percent of sales (TTM) † | 14.8 | % | 10.2 | % | ||||
† 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, | ||||||||
2022 | 2021 | |||||||
Cash Flows Provided by (Used in) Operating Activities: | ||||||||
Net income | $ | 114,711 | $ | 59,842 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 30,499 | 15,519 | ||||||
Share-based compensation | 3,727 | 3,111 | ||||||
Loss on extinguishment of debt | — | 13,862 | ||||||
Loss on sale of property and equipment | 207 | 56 | ||||||
Amortization of debt issuance costs | 706 | 422 | ||||||
Provision for bad debt expense | 2,512 | 1,765 | ||||||
Loss from inventory obsolescence | 868 | 653 | ||||||
Gain on foreign exchange | (649 | ) | — | |||||
Deferred income taxes, net | (81 | ) | (183 | ) | ||||
Change in certain assets and liabilities | ||||||||
Receivables, net | (65,031 | ) | (20,831 | ) | ||||
Inventories, net | (38,570 | ) | (2,088 | ) | ||||
Prepaid expenses and other current assets | (2,347 | ) | 3,517 | |||||
Accounts payable | 12,663 | (2,244 | ) | |||||
Accrued liabilities | 29,523 | 16,591 | ||||||
Other, net | 745 | (570 | ) | |||||
Net cash provided by operating activities | 89,483 | 89,422 | ||||||
Cash Flows Provided by (Used in) Investing Activities: | ||||||||
Purchases of property and equipment | (18,413 | ) | (12,284 | ) | ||||
Acquisition of businesses, net of cash acquired | (13,967 | ) | (61,092 | ) | ||||
Proceeds from sale of property and equipment | 253 | 56 | ||||||
Net cash used in investing activities | (32,127 | ) | (73,320 | ) | ||||
Cash Flows Provided by (Used in) Financing Activities: | ||||||||
Proceeds from issuance of long-term debt | — | 411,250 | ||||||
Repayment of long-term debt | (9,634 | ) | (415,856 | ) | ||||
Payment of debt issuance costs | — | (6,500 | ) | |||||
Taxes withheld and paid on employees' equity awards | (11,658 | ) | (11,480 | ) | ||||
Exercise of stock options | 808 | 5,952 | ||||||
Repurchase of shares of common stock | (50,000 | ) | (9,856 | ) | ||||
Payment of contingent consideration | (23 | ) | — | |||||
Net cash used in financing activities | (70,507 | ) | (26,490 | ) | ||||
Impact of exchange rate changes on cash | (75 | ) | — | |||||
Net decrease in cash and cash equivalents | (13,226 | ) | (10,388 | ) | ||||
Cash and cash equivalents- Beginning of period | 139,779 | 330,007 | ||||||
Cash and cash equivalents- End of period | $ | 126,553 | $ | 319,619 | ||||
Supplemental disclosure of cash paid for: | ||||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | 22,449 | $ | 20,322 | ||||
Accruals for property and equipment | 213 | 524 | ||||||
TopBuild Corp. | ||||||||||||
Segment Data (Unaudited) | ||||||||||||
(dollars in thousands) | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2022 | 2021 | Change | ||||||||||
Installation | ||||||||||||
Sales | $ | 676,693 | $ | 532,753 | 27.0 | % | ||||||
Operating profit, as reported | $ | 112,679 | $ | 73,636 | ||||||||
Operating margin, as reported | 16.7 | % | 13.8 | % | ||||||||
Rationalization charges | 473 | — | ||||||||||
Acquisition related costs | 80 | — | ||||||||||
COVID-19 pay | — | 489 | ||||||||||
Operating profit, as adjusted | $ | 113,232 | $ | 74,125 | ||||||||
Operating margin, as adjusted | 16.7 | % | 13.9 | % | ||||||||
Share-based compensation | 407 | 341 | ||||||||||
Depreciation and amortization | 15,685 | 12,826 | ||||||||||
EBITDA, as adjusted | $ | 129,324 | $ | 87,292 | 48.2 | % | ||||||
EBITDA margin, as adjusted | 19.1 | % | 16.4 | % | ||||||||
Specialty Distribution | ||||||||||||
Sales | $ | 543,862 | $ | 251,601 | 116.2 | % | ||||||
Operating profit, as reported | $ | 70,420 | $ | 35,385 | ||||||||
Operating margin, as reported | 12.9 | % | 14.1 | % | ||||||||
Acquisition related costs | 241 | — | ||||||||||
COVID-19 pay | — | 34 | ||||||||||
Operating profit, as adjusted | $ | 70,661 | $ | 35,419 | ||||||||
Operating margin, as adjusted | 13.0 | % | 14.1 | % | ||||||||
Share-based compensation | 353 | 243 | ||||||||||
Depreciation and amortization | 14,030 | 2,088 | ||||||||||
EBITDA, as adjusted | $ | 85,044 | $ | 37,750 | 125.3 | % | ||||||
EBITDA margin, as adjusted | 15.6 | % | 15.0 | % | ||||||||
TopBuild Corp. | ||||||||||||
Adjusted EBITDA (Unaudited) | ||||||||||||
(dollars in thousands) | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2022 | 2021 | Change | ||||||||||
Total net sales | ||||||||||||
Sales before eliminations | $ | 1,220,555 | $ | 784,354 | ||||||||
Intercompany eliminations | (51,637 | ) | (41,556 | ) | ||||||||
Net sales after eliminations | $ | 1,168,918 | $ | 742,798 | 57.4 | % | ||||||
Operating profit, as reported - segments | $ | 183,099 | $ | 109,021 | ||||||||
General corporate expense, net | (10,437 | ) | (6,606 | ) | ||||||||
Intercompany eliminations | (8,708 | ) | (6,528 | ) | ||||||||
Operating profit, as reported | $ | 163,954 | $ | 95,887 | ||||||||
Operating margin, as reported | 14.0 | % | 12.9 | % | ||||||||
Rationalization charges | 473 | 16 | ||||||||||
Acquisition related costs † | 3,076 | 753 | ||||||||||
COVID-19 pay | — | 523 | ||||||||||
Operating profit, as adjusted | $ | 167,503 | $ | 97,179 | ||||||||
Operating margin, as adjusted | 14.3 | % | 13.1 | % | ||||||||
Share-based compensation | 3,727 | 3,111 | ||||||||||
Depreciation and amortization | 30,499 | 15,519 | ||||||||||
EBITDA, as adjusted | $ | 201,729 | $ | 115,809 | 74.2 | % | ||||||
EBITDA margin, as adjusted | 17.3 | % | 15.6 | % | ||||||||
Sales change period over period | 426,120 | |||||||||||
EBITDA, as adjusted, change period over period | 85,920 | |||||||||||
Incremental EBITDA, as adjusted, as a percentage of change in sales | 20.2 | % | ||||||||||
† 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, | ||||||||
2022 | 2021 | |||||||
Gross Profit Reconciliation | ||||||||
Net sales | $ | 1,168,918 | $ | 742,798 | ||||
Gross profit, as reported | $ | 331,201 | $ | 197,759 | ||||
Acquisition related costs | 121 | — | ||||||
COVID-19 pay | — | 470 | ||||||
Gross profit, as adjusted | $ | 331,322 | $ | 198,229 | ||||
Gross margin, as reported | 28.3 | % | 26.6 | % | ||||
Gross margin, as adjusted | 28.3 | % | 26.7 | % | ||||
Selling, General and Administrative Expense Reconciliation | ||||||||
Selling, general, and administrative expense, as reported | $ | 167,247 | $ | 101,872 | ||||
Rationalization charges | 473 | 16 | ||||||
Acquisition related costs | 2,955 | 753 | ||||||
COVID-19 pay | — | 53 | ||||||
Selling, general, and administrative expense, as adjusted | $ | 163,819 | $ | 101,050 | ||||
Operating Profit Reconciliation | ||||||||
Operating profit, as reported | $ | 163,954 | $ | 95,887 | ||||
Rationalization charges | 473 | 16 | ||||||
Acquisition related costs | 3,076 | 753 | ||||||
COVID-19 pay | — | 523 | ||||||
Operating profit, as adjusted | $ | 167,503 | $ | 97,179 | ||||
Operating margin, as reported | 14.0 | % | 12.9 | % | ||||
Operating margin, as adjusted | 14.3 | % | 13.1 | % | ||||
Income Per Common Share Reconciliation | ||||||||
Income before income taxes, as reported | $ | 152,672 | $ | 75,499 | ||||
Rationalization charges | 473 | 16 | ||||||
Acquisition related costs | 3,076 | 753 | ||||||
Refinancing costs and loss on extinguishment of debt | — | 13,862 | ||||||
COVID-19 pay | — | 523 | ||||||
Income before income taxes, as adjusted | 156,221 | 90,653 | ||||||
Tax rate at 26.0% | (40,617 | ) | (23,570 | ) | ||||
Income, as adjusted | $ | 115,604 | $ | 67,083 | ||||
Income per common share, as adjusted | $ | 3.50 | $ | 2.02 | ||||
Weighted average diluted common shares outstanding | 33,042,490 | 33,202,563 | ||||||
TopBuild Corp. | ||||||||
Same Branch and Acquisition Metrics (Unaudited) | ||||||||
(dollars in thousands) | ||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Net sales | ||||||||
Same branch: | ||||||||
Installation | $ | 623,600 | $ | 532,753 | ||||
Specialty Distribution | 309,211 | 251,601 | ||||||
Eliminations | (50,946 | ) | (41,556 | ) | ||||
Total same branch | 881,865 | 742,798 | ||||||
Acquisitions (a): | ||||||||
Installation | $ | 53,093 | $ | — | ||||
Specialty Distribution | 234,651 | — | ||||||
Eliminations | (691 | ) | — | |||||
Total acquisitions | 287,053 | — | ||||||
Total | $ | 1,168,918 | $ | 742,798 | ||||
Gross profit, as adjusted | ||||||||
Same branch | $ | 261,115 | $ | 198,229 | ||||
Acquisitions (a) | 70,207 | — | ||||||
Total | $ | 331,322 | $ | 198,229 | ||||
Gross margin, as adjusted | ||||||||
Same branch (b) | 29.6 | % | 26.7 | % | ||||
Acquisitions (c) | 24.5 | % | ||||||
Operating profit, as adjusted | ||||||||
Same branch | $ | 144,616 | $ | 97,179 | ||||
Acquisitions (a) | 22,887 | — | ||||||
Total | $ | 167,503 | $ | 97,179 | ||||
Operating margin, as adjusted | ||||||||
Same branch (b) | 16.4 | % | 13.1 | % | ||||
Acquisitions (c) | 8.0 | % | ||||||
EBITDA, as adjusted | ||||||||
Same branch | $ | 164,769 | $ | 115,809 | ||||
Acquisitions (a) | 36,960 | — | ||||||
Total | $ | 201,729 | $ | 115,809 | ||||
EBITDA, as adjusted, as a percentage of sales | ||||||||
Same branch (b) | 18.7 | % | ||||||
Acquisitions (c) | 12.9 | % | ||||||
Total (d) | 17.3 | % | 15.6 | % | ||||
As Adjusted Incremental EBITDA, as a percentage of change in sales | ||||||||
Same branch (e) | 35.2 | % | ||||||
Acquisitions (c) | 12.9 | % | ||||||
Total (f) | 20.2 | % | ||||||
(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, | ||||||
2022 | 2021 | |||||
Net income, as reported | $ | 114,711 | $ | 59,842 | ||
Adjustments to arrive at EBITDA, as adjusted: | ||||||
Interest expense and other, net | 11,282 | 6,526 | ||||
Income tax expense | 37,961 | 15,657 | ||||
Depreciation and amortization | 30,499 | 15,519 | ||||
Share-based compensation | 3,727 | 3,111 | ||||
Rationalization charges | 473 | 16 | ||||
Acquisition related costs | 3,076 | 753 | ||||
Refinancing costs and loss on extinguishment of debt | — | 13,862 | ||||
COVID-19 pay | — | 523 | ||||
EBITDA, as adjusted | $ | 201,729 | $ | 115,809 | ||
TopBuild Corp. | ||||||||||||||
Acquisition Adjusted Net Sales (Unaudited) | ||||||||||||||
(in thousands) | ||||||||||||||
2021 | 2022 | Trailing Twelve Months Ended | ||||||||||||
Q2 | Q3 | Q4 | Q1 | March 31, 2022 | ||||||||||
Net Sales | $ | 834,255 | $ | 845,757 | $ | 1,063,398 | $ | 1,168,918 | $ | 3,912,328 | ||||
Acquisitions proforma adjustment † | 220,993 | 229,760 | 47,430 | 2,035 | 500,218 | |||||||||
Net sales, acquisition adjusted | $ | 1,055,248 | $ | 1,075,517 | $ | 1,110,828 | $ | 1,170,953 | $ | 4,412,546 | ||||
† 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 | $ | 447.6 | 495.4 | ||
Adjustments to arrive at estimated EBITDA, as adjusted: | |||||
Interest expense and other, net | 56.0 | 52.0 | |||
Income tax expense | 157.3 | 174.1 | |||
Depreciation and amortization | 126.1 | 121.0 | |||
Share-based compensation | 13.0 | 10.5 | |||
Rationalization charges | 2.0 | 1.0 | |||
Acquisition related costs | 8.0 | 6.0 | |||
Estimated EBITDA, as adjusted | $ | 810.0 | $ | 860.0 | |
Повышает выручку и Скорректированный прогноз по EBITDA
Объявляет Об Ускоренном Выкупе Акций На Сумму 100 Миллионов Долларов
ДЕЙТОНА-БИЧ, Флорида, 05 мая 2022 года (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD), ведущий установщик и специализированный дистрибьютор изоляционных материалов и строительных материалов для строительной отрасли в Соединенных Штатах и Канаде, сегодня сообщила о результатах за первый квартал, закончившийся 31 марта 2022 года.
Роберт Бак, президент и главный исполнительный директор, заявил: “TopBuild отчиталась об очередном выдающемся квартале, еще раз продемонстрировав силу нашей операционной модели. Высокий спрос в сочетании с нашим постоянным вниманием к управлению ценами, повышению операционной эффективности и использованию постоянных затрат привели к существенному преобразованию роста выручки в прибыль.
“Мы особенно довольны нашей скорректированной валовой прибылью в том же филиале и скорректированной рентабельностью по EBITDA, которые выросли на 290 базисных пунктов и 310 базисных пунктов соответственно по сравнению с предыдущим годом.
“Кроме того, интеграция Distribution International идет очень хорошо, и мы уверены, что достигнем синергии в размере от 35 до 40 миллионов долларов в соответствии со сроками, указанными при закрытии сделки в октябре 2021 года”.
Основные финансовые показатели за первый квартал 2022 года (в 000 долларов США)
(сравнение проводится с кварталом, закончившимся 31 марта 2021 года)
3 Months Ended 3/31/22 | Reported | Change |
Sales | $1,168,918 | 57.4% |
Gross Margin | 28.3% | 170 bps |
SG&A as % of revenue | 14.3% | 60 bps |
Operating Profit | $163,954 | 71.0% |
Operating Margin | 14.0% | 110 bps |
Net Income | $114,711 | 91.7% |
Net Income per diluted share | $3.47 | 92.8% |
3 Months Ended 3/31/22 | Adjusted | Change |
Sales | $1,168,918 | 57.4% |
Gross Margin | 28.3% | 160 bps |
SG&A as % of revenue | 14.0% | 40 bps |
Operating Profit | $167,503 | 72.4% |
Operating Margin | 14.3% | 120 bps |
Net Income | $115,604 | 72.3% |
Net Income per diluted share | $3.50 | 73.3% |
EBITDA | $201,729 | 74.2% |
EBITDA Margin | 17.3% | 170 bps |
3 Months Ended 3/31/22 | Same Branch | Change |
Sales | $881,865 | 18.7% |
Adj. Gross Margin | 29.6% | 290 bps |
Adj. Operating Margin | 16.4% | 330 bps |
Adj. EBITDA Margin | 18.7% | 310 bps |
Incremental EBITDA | 35.2% |
Основные показатели операционного сегмента (в 000 долларов США) (сравнение с кварталом, закончившимся 31 марта 2021 года)
Installation | 3 Months Ended 3/31/22 | Specialty Distribution | 3 Months Ended 3/31/22 | |
Sales | $676,693 | Sales | $543,862 | |
Change | Change | |||
Volume | 3.0% | Volume | 0.0% | |
Price | 14.0% | Price | 22.9% | |
M&A | 10.0% | M&A | 93.3% | |
Total Change | 27.0% | Total Change | 116.2% | |
Operating Margin | 16.7% | Operating Margin | 12.9% | |
Change | 290 bps | Change | (120) bps | |
Adj. Operating Margin | 16.7% | Adj. Operating Margin | 13.0% | |
Change | 280 bps | Change | (110) bps | |
Adj. EBITDA Margin | 19.1% | Adj. EBITDA Margin | 15.6% | |
Change | 270 bps | Change | 60 bps |
Распределение капитала
TTM Revenue at | Month | ||
Company Acquired | Acquisition ($ millions) | Acquired | |
Southwest Insulation (I) | $1.7 | January | |
Billings Insulation (I) | $6.5 | February | |
Green Energy Solutions (I) | $2.0 | March | |
Assured Insulating (I) | $5.5 | April | |
Total | $15.7 |
I = Установка
“С начала года мы приобрели четыре компании по монтажу жилых помещений. Мы продолжаем искать возможности для расширения нашего присутствия на всех трех конечных рынках, которые мы обслуживаем, и получения высокой прибыли для наших акционеров.
“Мы также рады инициировать ускоренный выкуп акций, демонстрируя уверенность нашего Совета директоров в настоящем и будущем бизнесе TopBuild”, - заявил Бак.
Выкуп акций В первом квартале Компания выкупила 238 154 акции по средней цене 209,95 доллара за акцию.
Кроме того, в соответствии с действующим разрешением на выкуп акций на сумму 200 миллионов долларов Компания намерена заключить соглашение о выкупе своих обыкновенных акций на сумму 100 миллионов долларов в рамках программы ускоренного выкупа акций (ASR). Это будет четвертое ASR, проведенное Компанией с первого квартала 2017 года. С 1 января 2016 года по 31 марта 2022 года Компания выкупила около 6,4 миллиона своих обыкновенных акций на общую сумму инвестиций в размере 472,2 миллиона долларов.
“Наша уникальная операционная модель и масштаб являются значительными конкурентными преимуществами, которые позволяют нам превосходить конкурентов в любых условиях. Мы с оптимизмом смотрим на то, что 2022 год станет еще одним сильным годом для TopBuild”, - добавил Бак.
Прогноз по продажам и скорректированной EBITDA (*) (в миллионах долларов США)
2022 | Low | High | ||
Sales | $ | 4,650 | $ | 4,800 |
Adjusted EBITDA* | $ | 810 | $ | 860 |
*См. таблицу для сверки скорректированной EBITDA.
(1) Данный прогноз отражает текущую точку зрения руководства на нынешние и будущие рыночные условия и основан на таких допущениях, как ввод и завершение строительства жилья, общие и административные расходы, средневзвешенные разводненные акции в обращении и процентные ставки. Эти целевые показатели не включают никаких последствий, связанных с потенциальными приобретениями или отчуждениями, которые могут произойти после даты настоящего пресс-релиза. Сверка целевых показателей, не относящихся к GAAP, с соответствующими показателями GAAP невозможна на перспективной основе без необоснованных усилий из-за неопределенности и потенциальной изменчивости затрат и расходов, которые могут быть понесены в будущем и, следовательно, не могут быть разумно предсказаны. Влияние этих исключенных элементов может быть значительным. Факторы, которые могут привести к тому, что фактические долгосрочные результаты будут существенно отличаться от текущих ожиданий TopBuild, обсуждаются ниже, а также подробно описаны в Годовом отчете Компании за 2021 год по форме 10-K и последующих отчетах SEC.
дополнительная информация
Ежеквартальные дополнительные материалы, включая презентацию, ссылка на которую будет дана во время сегодняшней телефонной конференции, доступны на веб-сайте Компании по адресу www.topbuild.com .
Селекторное совещание Селекторное совещание для обсуждения финансовых результатов за первый квартал 2022 года запланировано на сегодня, четверг, 5 мая 2022 года, в 9:00 утра по восточному времени. Вызов можно получить, набрав номер (877) 407-9037. Конференц-связь будет транслироваться одновременно на веб-сайте Компании по адресу www.topbuild.com .
О компании TopBuildTopBuild Corp. со штаб-квартирой в Дейтона-Бич, штат Флорида, является ведущим установщиком и специализированным дистрибьютором изоляционных материалов и строительных материалов для строительной отрасли в Соединенных Штатах и Канаде. Мы предоставляем услуги по монтажу изоляции по всей стране через наш бизнес по оказанию услуг подрядчикам, который насчитывает около 235 филиалов, расположенных по всей территории Соединенных Штатов. Мы распространяем строительную и механическую изоляцию, изоляционные принадлежности и другие строительные материалы для жилых, коммерческих и промышленных конечных рынков через наш специализированный дистрибьюторский бизнес. Наша специализированная дистрибьюторская сеть насчитывает около 175 филиалов. Чтобы узнать больше о TopBuild, пожалуйста, посетите наш веб-сайт по адресу www.topbuild.com .
Использование финансовых показателей, не относящихся к GAAP, Скорректированная EBITDA, дополнительная рентабельность по EBITDA, скорректированная рентабельность по EBITDA, “скорректированные” финансовые показатели, представленные выше, и цифры, представленные на основе “той же отрасли”, не рассчитываются в соответствии с общепринятыми принципами бухгалтерского учета США (“GAAP”). Компания считает, что эти финансовые показатели, не относящиеся к GAAP, которые используются при управлении бизнесом, могут предоставить пользователям этой финансовой информации дополнительные значимые сравнения между текущими результатами и результатами за предыдущие периоды. Мы определяем продажи в тех же филиалах как продажи из филиалов, действующих не менее 12 полных календарных месяцев. Такие финансовые показатели, не относящиеся к GAAP, сверяются с их ближайшими финансовыми показателями по GAAP в таблицах, содержащихся в этом пресс-релизе. Финансовые показатели, не относящиеся к GAAP, следует рассматривать в дополнение к отчетным результатам Компании по GAAP, а не как альтернативу им. Дополнительную информацию можно найти в заявках Компании в Комиссию по ценным бумагам и биржам, которые доступны на веб-сайте TopBuild в разделе “Заявки SEC” по адресу www.topbuild.com .
Заявление о безопасной гавани
Этот пресс-релиз содержит “прогнозные заявления” по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам. Эти прогнозные заявления могут касаться, среди прочего, наших ожидаемых финансовых и операционных результатов, соответствующих допущений, лежащих в основе наших ожидаемых результатов, и нашего плана обратного выкупа наших обыкновенных акций в рамках сделок обратного выкупа акций. Эти прогнозные заявления отличаются использованием таких слов, как “будет”, “хотел бы”, “предвидеть”, “ожидать”, “полагать”, “разработан”, “планировать” или “намереваться”, отрицательное значение этих терминов и аналогичные ссылки на будущие периоды. Эти взгляды связаны с рисками и неопределенностями, которые трудно предсказать, и, соответственно, наши фактические результаты могут существенно отличаться от результатов, обсуждаемых в наших прогнозных заявлениях. Наши прогнозные заявления, содержащиеся в настоящем документе, относятся только к дате настоящего пресс-релиза. Факторы или события, которые мы не можем предсказать, включая те, которые описаны в факторах риска, содержащихся в наших заявках в Комиссию по ценным бумагам и биржам, могут привести к тому, что наши фактические результаты будут отличаться от тех, которые указаны в прогнозных заявлениях. Хотя TopBuild считает, что ожидания, отраженные в таких прогнозных заявлениях, основаны на разумных предположениях, Компания не может дать никаких гарантий того, что ее ожидания будут достигнуты, и она не берет на себя никаких обязательств по обновлению каких-либо прогнозных заявлений в результате новой информации, будущих событий или иным образом, за исключением случаев, когда это требуется применимым законодательством. закон.
Связи с инвесторами и Контакты со СМИ
Табита Zanetabitha.zane@topbuild.com 386-763-8801
(далее следуют таблицы)
TopBuild Corp. | ||||||||
Condensed Consolidated Statements of Operations (Unaudited) | ||||||||
(in thousands, except share and per common share amounts) | ||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Net sales | $ | 1,168,918 | $ | 742,798 | ||||
Cost of sales | 837,717 | 545,039 | ||||||
Gross profit | 331,201 | 197,759 | ||||||
Selling, general, and administrative expense | 167,247 | 101,872 | ||||||
Operating profit | 163,954 | 95,887 | ||||||
Other income (expense), net: | ||||||||
Interest expense | (11,966 | ) | (6,603 | ) | ||||
Loss on extinguishment of debt | — | (13,862 | ) | |||||
Other, net | 684 | 77 | ||||||
Other expense, net | (11,282 | ) | (20,388 | ) | ||||
Income before income taxes | 152,672 | 75,499 | ||||||
Income tax expense | (37,961 | ) | (15,657 | ) | ||||
Net income | $ | 114,711 | $ | 59,842 | ||||
Net income per common share: | ||||||||
Basic | $ | 3.50 | $ | 1.82 | ||||
Diluted | $ | 3.47 | $ | 1.80 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 32,738,525 | 32,826,515 | ||||||
Diluted | 33,042,490 | 33,202,563 | ||||||
TopBuild Corp. | ||||||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | ||||||
(in thousands) | ||||||
Three Months Ended March 31, | ||||||
2022 | 2021 | |||||
Net income | $ | 114,711 | $ | 59,842 | ||
Other comprehensive income: | ||||||
Foreign currency translation adjustment | 3,218 | — | ||||
Comprehensive income | $ | 117,929 | $ | 59,842 | ||
TopBuild Corp. | ||||||||
Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited) | ||||||||
(dollars in thousands) | ||||||||
As of | ||||||||
March 31, 2022 | December 31, 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 126,553 | $ | 139,779 | ||||
Receivables, net of an allowance for credit losses of $10,487 at March 31, 2022, and $8,798 at December 31, 2021 | 735,452 | 668,419 | ||||||
Inventories, net | 390,061 | 352,801 | ||||||
Prepaid expenses and other current assets | 29,102 | 26,692 | ||||||
Total current assets | 1,281,168 | 1,187,691 | ||||||
Right of use assets | 184,762 | 177,177 | ||||||
Property and equipment, net | 248,438 | 244,574 | ||||||
Goodwill | 1,964,297 | 1,949,763 | ||||||
Other intangible assets, net | 669,797 | 684,209 | ||||||
Deferred tax assets, net | — | 1,905 | ||||||
Other assets | 13,101 | 13,211 | ||||||
Total assets | $ | 4,361,563 | $ | 4,258,530 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 473,918 | $ | 461,917 | ||||
Current portion of long-term debt | 38,723 | 38,640 | ||||||
Accrued liabilities | 207,377 | 175,891 | ||||||
Short-term operating lease liabilities | 55,293 | 54,591 | ||||||
Short-term finance lease liabilities | 2,610 | 2,387 | ||||||
Total current liabilities | 777,921 | 733,426 | ||||||
Long-term debt | 1,445,473 | 1,454,483 | ||||||
Deferred tax liabilities, net | 245,674 | 248,243 | ||||||
Long-term portion of insurance reserves | 53,111 | 51,875 | ||||||
Long-term operating lease liabilities | 133,297 | 125,339 | ||||||
Long-term finance lease liabilities | 7,631 | 7,770 | ||||||
Other liabilities | 1,216 | 960 | ||||||
Total liabilities | 2,664,323 | 2,622,096 | ||||||
EQUITY | 1,697,240 | 1,636,434 | ||||||
Total liabilities and equity | $ | 4,361,563 | $ | 4,258,530 | ||||
As of March 31, | ||||||||
2022 | 2021 | |||||||
Other Financial Data | ||||||||
Receivable days | 47 | 45 | ||||||
Inventory days | 46 | 29 | ||||||
Accounts payable days | 63 | 76 | ||||||
Receivables, net plus inventories, net less accounts payable | $ | 651,595 | $ | 296,023 | ||||
Receivables, net plus inventories, net less accounts payable as a percent of sales (TTM) † | 14.8 | % | 10.2 | % | ||||
† 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, | ||||||||
2022 | 2021 | |||||||
Cash Flows Provided by (Used in) Operating Activities: | ||||||||
Net income | $ | 114,711 | $ | 59,842 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 30,499 | 15,519 | ||||||
Share-based compensation | 3,727 | 3,111 | ||||||
Loss on extinguishment of debt | — | 13,862 | ||||||
Loss on sale of property and equipment | 207 | 56 | ||||||
Amortization of debt issuance costs | 706 | 422 | ||||||
Provision for bad debt expense | 2,512 | 1,765 | ||||||
Loss from inventory obsolescence | 868 | 653 | ||||||
Gain on foreign exchange | (649 | ) | — | |||||
Deferred income taxes, net | (81 | ) | (183 | ) | ||||
Change in certain assets and liabilities | ||||||||
Receivables, net | (65,031 | ) | (20,831 | ) | ||||
Inventories, net | (38,570 | ) | (2,088 | ) | ||||
Prepaid expenses and other current assets | (2,347 | ) | 3,517 | |||||
Accounts payable | 12,663 | (2,244 | ) | |||||
Accrued liabilities | 29,523 | 16,591 | ||||||
Other, net | 745 | (570 | ) | |||||
Net cash provided by operating activities | 89,483 | 89,422 | ||||||
Cash Flows Provided by (Used in) Investing Activities: | ||||||||
Purchases of property and equipment | (18,413 | ) | (12,284 | ) | ||||
Acquisition of businesses, net of cash acquired | (13,967 | ) | (61,092 | ) | ||||
Proceeds from sale of property and equipment | 253 | 56 | ||||||
Net cash used in investing activities | (32,127 | ) | (73,320 | ) | ||||
Cash Flows Provided by (Used in) Financing Activities: | ||||||||
Proceeds from issuance of long-term debt | — | 411,250 | ||||||
Repayment of long-term debt | (9,634 | ) | (415,856 | ) | ||||
Payment of debt issuance costs | — | (6,500 | ) | |||||
Taxes withheld and paid on employees' equity awards | (11,658 | ) | (11,480 | ) | ||||
Exercise of stock options | 808 | 5,952 | ||||||
Repurchase of shares of common stock | (50,000 | ) | (9,856 | ) | ||||
Payment of contingent consideration | (23 | ) | — | |||||
Net cash used in financing activities | (70,507 | ) | (26,490 | ) | ||||
Impact of exchange rate changes on cash | (75 | ) | — | |||||
Net decrease in cash and cash equivalents | (13,226 | ) | (10,388 | ) | ||||
Cash and cash equivalents- Beginning of period | 139,779 | 330,007 | ||||||
Cash and cash equivalents- End of period | $ | 126,553 | $ | 319,619 | ||||
Supplemental disclosure of cash paid for: | ||||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | 22,449 | $ | 20,322 | ||||
Accruals for property and equipment | 213 | 524 | ||||||
TopBuild Corp. | ||||||||||||
Segment Data (Unaudited) | ||||||||||||
(dollars in thousands) | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2022 | 2021 | Change | ||||||||||
Installation | ||||||||||||
Sales | $ | 676,693 | $ | 532,753 | 27.0 | % | ||||||
Operating profit, as reported | $ | 112,679 | $ | 73,636 | ||||||||
Operating margin, as reported | 16.7 | % | 13.8 | % | ||||||||
Rationalization charges | 473 | — | ||||||||||
Acquisition related costs | 80 | — | ||||||||||
COVID-19 pay | — | 489 | ||||||||||
Operating profit, as adjusted | $ | 113,232 | $ | 74,125 | ||||||||
Operating margin, as adjusted | 16.7 | % | 13.9 | % | ||||||||
Share-based compensation | 407 | 341 | ||||||||||
Depreciation and amortization | 15,685 | 12,826 | ||||||||||
EBITDA, as adjusted | $ | 129,324 | $ | 87,292 | 48.2 | % | ||||||
EBITDA margin, as adjusted | 19.1 | % | 16.4 | % | ||||||||
Specialty Distribution | ||||||||||||
Sales | $ | 543,862 | $ | 251,601 | 116.2 | % | ||||||
Operating profit, as reported | $ | 70,420 | $ | 35,385 | ||||||||
Operating margin, as reported | 12.9 | % | 14.1 | % | ||||||||
Acquisition related costs | 241 | — | ||||||||||
COVID-19 pay | — | 34 | ||||||||||
Operating profit, as adjusted | $ | 70,661 | $ | 35,419 | ||||||||
Operating margin, as adjusted | 13.0 | % | 14.1 | % | ||||||||
Share-based compensation | 353 | 243 | ||||||||||
Depreciation and amortization | 14,030 | 2,088 | ||||||||||
EBITDA, as adjusted | $ | 85,044 | $ | 37,750 | 125.3 | % | ||||||
EBITDA margin, as adjusted | 15.6 | % | 15.0 | % | ||||||||
TopBuild Corp. | ||||||||||||
Adjusted EBITDA (Unaudited) | ||||||||||||
(dollars in thousands) | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2022 | 2021 | Change | ||||||||||
Total net sales | ||||||||||||
Sales before eliminations | $ | 1,220,555 | $ | 784,354 | ||||||||
Intercompany eliminations | (51,637 | ) | (41,556 | ) | ||||||||
Net sales after eliminations | $ | 1,168,918 | $ | 742,798 | 57.4 | % | ||||||
Operating profit, as reported - segments | $ | 183,099 | $ | 109,021 | ||||||||
General corporate expense, net | (10,437 | ) | (6,606 | ) | ||||||||
Intercompany eliminations | (8,708 | ) | (6,528 | ) | ||||||||
Operating profit, as reported | $ | 163,954 | $ | 95,887 | ||||||||
Operating margin, as reported | 14.0 | % | 12.9 | % | ||||||||
Rationalization charges | 473 | 16 | ||||||||||
Acquisition related costs † | 3,076 | 753 | ||||||||||
COVID-19 pay | — | 523 | ||||||||||
Operating profit, as adjusted | $ | 167,503 | $ | 97,179 | ||||||||
Operating margin, as adjusted | 14.3 | % | 13.1 | % | ||||||||
Share-based compensation | 3,727 | 3,111 | ||||||||||
Depreciation and amortization | 30,499 | 15,519 | ||||||||||
EBITDA, as adjusted | $ | 201,729 | $ | 115,809 | 74.2 | % | ||||||
EBITDA margin, as adjusted | 17.3 | % | 15.6 | % | ||||||||
Sales change period over period | 426,120 | |||||||||||
EBITDA, as adjusted, change period over period | 85,920 | |||||||||||
Incremental EBITDA, as adjusted, as a percentage of change in sales | 20.2 | % | ||||||||||
† 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, | ||||||||
2022 | 2021 | |||||||
Gross Profit Reconciliation | ||||||||
Net sales | $ | 1,168,918 | $ | 742,798 | ||||
Gross profit, as reported | $ | 331,201 | $ | 197,759 | ||||
Acquisition related costs | 121 | — | ||||||
COVID-19 pay | — | 470 | ||||||
Gross profit, as adjusted | $ | 331,322 | $ | 198,229 | ||||
Gross margin, as reported | 28.3 | % | 26.6 | % | ||||
Gross margin, as adjusted | 28.3 | % | 26.7 | % | ||||
Selling, General and Administrative Expense Reconciliation | ||||||||
Selling, general, and administrative expense, as reported | $ | 167,247 | $ | 101,872 | ||||
Rationalization charges | 473 | 16 | ||||||
Acquisition related costs | 2,955 | 753 | ||||||
COVID-19 pay | — | 53 | ||||||
Selling, general, and administrative expense, as adjusted | $ | 163,819 | $ | 101,050 | ||||
Operating Profit Reconciliation | ||||||||
Operating profit, as reported | $ | 163,954 | $ | 95,887 | ||||
Rationalization charges | 473 | 16 | ||||||
Acquisition related costs | 3,076 | 753 | ||||||
COVID-19 pay | — | 523 | ||||||
Operating profit, as adjusted | $ | 167,503 | $ | 97,179 | ||||
Operating margin, as reported | 14.0 | % | 12.9 | % | ||||
Operating margin, as adjusted | 14.3 | % | 13.1 | % | ||||
Income Per Common Share Reconciliation | ||||||||
Income before income taxes, as reported | $ | 152,672 | $ | 75,499 | ||||
Rationalization charges | 473 | 16 | ||||||
Acquisition related costs | 3,076 | 753 | ||||||
Refinancing costs and loss on extinguishment of debt | — | 13,862 | ||||||
COVID-19 pay | — | 523 | ||||||
Income before income taxes, as adjusted | 156,221 | 90,653 | ||||||
Tax rate at 26.0% | (40,617 | ) | (23,570 | ) | ||||
Income, as adjusted | $ | 115,604 | $ | 67,083 | ||||
Income per common share, as adjusted | $ | 3.50 | $ | 2.02 | ||||
Weighted average diluted common shares outstanding | 33,042,490 | 33,202,563 | ||||||
TopBuild Corp. | ||||||||
Same Branch and Acquisition Metrics (Unaudited) | ||||||||
(dollars in thousands) | ||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Net sales | ||||||||
Same branch: | ||||||||
Installation | $ | 623,600 | $ | 532,753 | ||||
Specialty Distribution | 309,211 | 251,601 | ||||||
Eliminations | (50,946 | ) | (41,556 | ) | ||||
Total same branch | 881,865 | 742,798 | ||||||
Acquisitions (a): | ||||||||
Installation | $ | 53,093 | $ | — | ||||
Specialty Distribution | 234,651 | — | ||||||
Eliminations | (691 | ) | — | |||||
Total acquisitions | 287,053 | — | ||||||
Total | $ | 1,168,918 | $ | 742,798 | ||||
Gross profit, as adjusted | ||||||||
Same branch | $ | 261,115 | $ | 198,229 | ||||
Acquisitions (a) | 70,207 | — | ||||||
Total | $ | 331,322 | $ | 198,229 | ||||
Gross margin, as adjusted | ||||||||
Same branch (b) | 29.6 | % | 26.7 | % | ||||
Acquisitions (c) | 24.5 | % | ||||||
Operating profit, as adjusted | ||||||||
Same branch | $ | 144,616 | $ | 97,179 | ||||
Acquisitions (a) | 22,887 | — | ||||||
Total | $ | 167,503 | $ | 97,179 | ||||
Operating margin, as adjusted | ||||||||
Same branch (b) | 16.4 | % | 13.1 | % | ||||
Acquisitions (c) | 8.0 | % | ||||||
EBITDA, as adjusted | ||||||||
Same branch | $ | 164,769 | $ | 115,809 | ||||
Acquisitions (a) | 36,960 | — | ||||||
Total | $ | 201,729 | $ | 115,809 | ||||
EBITDA, as adjusted, as a percentage of sales | ||||||||
Same branch (b) | 18.7 | % | ||||||
Acquisitions (c) | 12.9 | % | ||||||
Total (d) | 17.3 | % | 15.6 | % | ||||
As Adjusted Incremental EBITDA, as a percentage of change in sales | ||||||||
Same branch (e) | 35.2 | % | ||||||
Acquisitions (c) | 12.9 | % | ||||||
Total (f) | 20.2 | % | ||||||
(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, | ||||||
2022 | 2021 | |||||
Net income, as reported | $ | 114,711 | $ | 59,842 | ||
Adjustments to arrive at EBITDA, as adjusted: | ||||||
Interest expense and other, net | 11,282 | 6,526 | ||||
Income tax expense | 37,961 | 15,657 | ||||
Depreciation and amortization | 30,499 | 15,519 | ||||
Share-based compensation | 3,727 | 3,111 | ||||
Rationalization charges | 473 | 16 | ||||
Acquisition related costs | 3,076 | 753 | ||||
Refinancing costs and loss on extinguishment of debt | — | 13,862 | ||||
COVID-19 pay | — | 523 | ||||
EBITDA, as adjusted | $ | 201,729 | $ | 115,809 | ||
TopBuild Corp. | ||||||||||||||
Acquisition Adjusted Net Sales (Unaudited) | ||||||||||||||
(in thousands) | ||||||||||||||
2021 | 2022 | Trailing Twelve Months Ended | ||||||||||||
Q2 | Q3 | Q4 | Q1 | March 31, 2022 | ||||||||||
Net Sales | $ | 834,255 | $ | 845,757 | $ | 1,063,398 | $ | 1,168,918 | $ | 3,912,328 | ||||
Acquisitions proforma adjustment † | 220,993 | 229,760 | 47,430 | 2,035 | 500,218 | |||||||||
Net sales, acquisition adjusted | $ | 1,055,248 | $ | 1,075,517 | $ | 1,110,828 | $ | 1,170,953 | $ | 4,412,546 | ||||
† 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 | $ | 447.6 | 495.4 | ||
Adjustments to arrive at estimated EBITDA, as adjusted: | |||||
Interest expense and other, net | 56.0 | 52.0 | |||
Income tax expense | 157.3 | 174.1 | |||
Depreciation and amortization | 126.1 | 121.0 | |||
Share-based compensation | 13.0 | 10.5 | |||
Rationalization charges | 2.0 | 1.0 | |||
Acquisition related costs | 8.0 | 6.0 | |||
Estimated EBITDA, as adjusted | $ | 810.0 | $ | 860.0 | |