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 third
quarter ended September 30, 2023.
Robert Buck, President and Chief Executive Officer, stated,
“TopBuild continues to perform well and produce solid operating
results, a testament to our team’s hard work and focus on
profitable growth. We are particularly pleased with the performance
of our non-residential business. Both our Installation and
Specialty Distribution segments reported mid-single digit volume
growth related to the commercial and industrial end markets they
serve.
“Our strong track record of executing on our plan can be
attributed, in part, to our relentless focus on driving
improvements in both productivity and operational efficiencies. In
addition, our unique and diversified business model provides
multiple avenues for growth, and we see continued opportunities in
all three end markets we serve.”
Third Quarter Financial Highlights(unless
otherwise indicated, comparisons are to the three months ended
September 30, 2022)
3 Months Ended 9/30/23 |
Reported |
Change |
Sales |
$1,326,120 |
1.9% |
Gross Margin |
31.7% |
130 bps |
SG&A as % of revenue |
13.8% |
50 bps |
Operating Profit |
$237,492 |
6.6% |
Operating Margin |
17.9% |
80 bps |
Net Income |
$167,602 |
9.0% |
Net Income per diluted share |
$5.27 |
10.7% |
|
|
|
3 Months Ended 9/30/23 |
Adjusted |
Change |
Sales |
$1,326,120 |
1.9% |
Gross Margin |
31.7% |
130 bps |
SG&A as % of revenue |
13.2% |
0 bps |
Operating Profit |
$245,932 |
9.7% |
Operating Margin |
18.5% |
130 bps |
Net Income |
$172,507 |
11.4% |
Net Income per diluted share |
$5.43 |
13.1% |
EBITDA |
$283,690 |
9.4% |
EBITDA Margin |
21.4% |
150 bps |
|
|
|
Nine Month Financial Highlights(comparisons are
to the nine months ended September 30, 2022)
9 Months Ended 9/30/23 |
Reported |
Change |
Sales |
$3,908,620 |
4.4% |
Gross Margin |
31.0% |
130 bps |
SG&A as % of revenue |
13.8% |
0 bps |
Operating Profit |
$674,025 |
13.5% |
Operating Margin |
17.2% |
130 bps |
Net Income |
$467,870 |
13.5% |
Net Income per diluted share |
$14.74 |
16.7% |
|
|
|
9 Months Ended 9/30/23 |
Adjusted |
Change |
Sales |
$3,908,620 |
4.4% |
Gross Margin |
31.0% |
130 bps |
SG&A as % of revenue |
13.4% |
(20 bps) |
Operating Profit |
$688,224 |
14.6% |
Operating Margin |
17.6% |
160 bps |
Net Income |
$477,551 |
15.1% |
Net Income per diluted share |
$15.04 |
18.3% |
EBITDA |
$797,520 |
13.4% |
EBITDA Margin |
20.4% |
160 bps |
|
|
|
Operating Segment Highlights ($ in
000s)(comparisons are to the period ended September 30,
2022)
Installation |
3 Months Ended 9/30/23 |
9 Months Ended 9/30/23 |
|
Specialty Distribution |
3 Months Ended 9/30/23 |
9 Months Ended 9/30/23 |
Sales |
$821,673 |
$2,397,818 |
|
Sales |
$571,009 |
$1,703,871 |
Change |
|
|
|
Change |
|
|
Volume |
-3.5% |
1.4% |
|
Volume |
-0.2% |
-2.0% |
Price |
3.6% |
4.0% |
|
Price |
-1.9% |
1.4% |
M&A |
4.8% |
3.1% |
|
M&A |
0.0% |
0.0% |
Total Change |
4.9% |
8.6% |
|
Total Change |
-2.1% |
-0.7% |
Operating Margin |
21.3% |
20.6% |
|
Operating Margin |
15.5% |
14.5% |
Change |
160 bps |
220 bps |
|
Change |
40 bps |
20 bps |
Adj. Operating Margin |
21.6% |
20.7% |
|
Adj. Operating Margin |
15.5% |
14.6% |
Change |
200 bps |
230 bps |
|
Change |
20 bps |
20 bps |
Adj. EBITDA Margin |
23.7% |
22.9% |
|
Adj. EBITDA Margin |
18.2% |
17.2% |
Change |
210 bps |
230 bps |
|
Change |
20 bps |
20 bps |
|
|
|
|
|
|
|
Capital
Allocation“We generate significant free
cash flow and acquisitions remain our number one capital allocation
priority. Our seasoned M&A team continues to identify strong
prospects in our residential, commercial, and industrial insulation
end markets and we expect to remain active on this front,” added
Buck.
Through October 31, the Company has completed
four acquisitions which are expected to contribute approximately
$173 million in annual revenue. In addition, the Company announced
in late July its agreement to acquire Specialty Products and
Insulation (“SPI”) in an all-cash transaction valued at $960
million. This leading North American specialty distributor and
custom fabricator of mechanical insulation is expected to generate
annual revenue of approximately $700 million.
2023
Outlook(1) ($ in
millions)
Metric |
Low |
|
High |
Sales |
$ |
5,130 |
|
|
$ |
5,210 |
|
Adjusted EBITDA* |
$ |
1,025 |
|
|
$ |
1,055 |
|
|
|
|
|
|
|
|
|
*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.
Conference Call A conference
call to discuss third quarter 2023 financial results is scheduled
for today, Tuesday, October 31, 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 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 240
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 170
branches. To learn more about TopBuild please visit our website at
www.topbuild.com.
Use of Non-GAAP Financial
MeasuresAdjusted 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 September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net sales |
$ |
1,326,120 |
|
|
$ |
1,300,998 |
|
|
$ |
3,908,620 |
|
|
$ |
3,744,201 |
|
Cost of sales |
|
905,430 |
|
|
|
905,250 |
|
|
|
2,695,916 |
|
|
|
2,633,155 |
|
Gross profit |
|
420,690 |
|
|
|
395,748 |
|
|
|
1,212,704 |
|
|
|
1,111,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense |
|
183,198 |
|
|
|
172,874 |
|
|
|
538,679 |
|
|
|
516,997 |
|
Operating profit |
|
237,492 |
|
|
|
222,874 |
|
|
|
674,025 |
|
|
|
594,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(18,830 |
) |
|
|
(14,561 |
) |
|
|
(55,427 |
) |
|
|
(39,936 |
) |
Other, net |
|
6,015 |
|
|
|
(303 |
) |
|
|
12,542 |
|
|
|
103 |
|
Other expense, net |
|
(12,815 |
) |
|
|
(14,864 |
) |
|
|
(42,885 |
) |
|
|
(39,833 |
) |
Income before income taxes |
|
224,677 |
|
|
|
208,010 |
|
|
|
631,140 |
|
|
|
554,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
(57,075 |
) |
|
|
(54,264 |
) |
|
|
(163,270 |
) |
|
|
(142,060 |
) |
Net income |
$ |
167,602 |
|
|
$ |
153,746 |
|
|
$ |
467,870 |
|
|
$ |
412,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
5.30 |
|
|
$ |
4.79 |
|
|
$ |
14.81 |
|
|
$ |
12.72 |
|
Diluted |
$ |
5.27 |
|
|
$ |
4.76 |
|
|
$ |
14.74 |
|
|
$ |
12.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
31,615,110 |
|
|
|
32,076,285 |
|
|
|
31,588,740 |
|
|
|
32,404,275 |
|
Diluted |
|
31,788,812 |
|
|
|
32,279,820 |
|
|
|
31,744,856 |
|
|
|
32,643,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Comprehensive Income
(Unaudited) |
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income |
$ |
167,602 |
|
|
$ |
153,746 |
|
|
$ |
467,870 |
|
|
$ |
412,156 |
|
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
(3,008 |
) |
|
|
(15,158 |
) |
|
|
3,029 |
|
|
|
(14,133 |
) |
Comprehensive income |
$ |
164,594 |
|
|
$ |
138,588 |
|
|
$ |
470,899 |
|
|
$ |
398,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets and Other Financial
Data (Unaudited) |
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
As of |
|
September 30, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
615,612 |
|
|
$ |
240,069 |
|
Receivables, net of an allowance for credit losses of $17,880 at
September 30, 2023, and $16,281 at December 31, 2022 |
|
870,890 |
|
|
|
836,071 |
|
Inventories, net |
|
357,179 |
|
|
|
438,644 |
|
Prepaid expenses and other current assets |
|
38,104 |
|
|
|
34,257 |
|
Total current assets |
|
1,881,785 |
|
|
|
1,549,041 |
|
|
|
|
|
|
|
|
|
Right of use assets |
|
209,707 |
|
|
|
205,892 |
|
Property and equipment, net |
|
264,581 |
|
|
|
253,484 |
|
Goodwill |
|
2,039,777 |
|
|
|
1,966,994 |
|
Other intangible assets, net |
|
606,940 |
|
|
|
614,967 |
|
Other assets |
|
11,300 |
|
|
|
16,453 |
|
Total assets |
$ |
5,014,090 |
|
|
$ |
4,606,831 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
455,840 |
|
|
$ |
487,114 |
|
Current portion of long-term debt |
|
48,057 |
|
|
|
40,068 |
|
Accrued liabilities |
|
183,084 |
|
|
|
199,370 |
|
Short-term operating lease liabilities |
|
64,632 |
|
|
|
60,880 |
|
Short-term finance lease liabilities |
|
2,057 |
|
|
|
2,207 |
|
Total current liabilities |
|
753,670 |
|
|
|
789,639 |
|
|
|
|
|
|
|
|
|
Long-term debt |
|
1,383,717 |
|
|
|
1,417,257 |
|
Deferred tax liabilities, net |
|
252,419 |
|
|
|
251,481 |
|
Long-term portion of insurance reserves |
|
58,343 |
|
|
|
59,783 |
|
Long-term operating lease liabilities |
|
151,970 |
|
|
|
149,943 |
|
Long-term finance lease liabilities |
|
4,596 |
|
|
|
6,673 |
|
Other liabilities |
|
1,548 |
|
|
|
2,349 |
|
Total liabilities |
|
2,606,263 |
|
|
|
2,677,125 |
|
|
|
|
|
|
|
|
|
EQUITY |
|
2,407,827 |
|
|
|
1,929,706 |
|
Total liabilities and equity |
$ |
5,014,090 |
|
|
$ |
4,606,831 |
|
|
|
|
|
|
|
|
|
|
As of September 30, |
|
2023 |
|
2022 |
Other Financial Data |
|
|
|
|
|
|
|
Receivable days |
|
51 |
|
|
|
48 |
|
Inventory days |
|
36 |
|
|
|
48 |
|
Accounts payable days |
|
60 |
|
|
|
63 |
|
Receivables, net plus inventories, net less accounts payable |
$ |
772,229 |
|
|
$ |
752,750 |
|
Receivables, net plus inventories, net less accounts payable as a
percent of sales (TTM) † |
|
14.6 |
% |
|
15.5 |
% |
|
|
|
|
|
|
|
|
† 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) |
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
Cash Flows Provided by (Used in) Operating
Activities: |
|
|
|
|
Net income |
$ |
467,870 |
|
|
$ |
412,156 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
98,216 |
|
|
|
93,051 |
|
Share-based compensation |
|
11,080 |
|
|
|
9,673 |
|
Loss on sale of assets |
|
2,733 |
|
|
|
76 |
|
Amortization of debt issuance costs |
|
2,161 |
|
|
|
2,147 |
|
Provision for bad debt expense |
|
7,380 |
|
|
|
8,837 |
|
Loss from inventory obsolescence |
|
3,617 |
|
|
|
5,127 |
|
Change in certain assets and liabilities: |
|
|
|
|
|
Receivables, net |
|
(52,482 |
) |
|
|
(152,578 |
) |
Inventories, net |
|
82,960 |
|
|
|
(101,148 |
) |
Prepaid expenses and other current assets |
|
(3,267 |
) |
|
|
(807 |
) |
Accounts payable |
|
(21,361 |
) |
|
|
49,079 |
|
Accrued liabilities |
|
(9,027 |
) |
|
|
3,469 |
|
Other, net |
|
(1,402 |
) |
|
|
6,548 |
|
Net cash provided by operating activities |
|
588,478 |
|
|
|
335,630 |
|
|
|
|
|
|
|
Cash Flows Provided by (Used in) Investing
Activities: |
|
|
|
|
|
Purchases of property and equipment |
|
(48,076 |
) |
|
|
(56,044 |
) |
Acquisition of businesses, net of cash acquired |
|
(147,614 |
) |
|
|
(20,500 |
) |
Proceeds from sale of assets |
|
14,674 |
|
|
|
2,877 |
|
Net cash used in investing activities |
|
(181,016 |
) |
|
|
(73,667 |
) |
|
|
|
|
|
|
Cash Flows Provided by (Used in) Financing
Activities: |
|
|
|
|
|
Repayment of long-term debt |
|
(27,711 |
) |
|
|
(28,968 |
) |
Proceeds from revolving credit facility |
|
— |
|
|
|
70,000 |
|
Repayment of revolving credit facility |
|
— |
|
|
|
(70,000 |
) |
Taxes withheld and paid on employees' equity awards |
|
(6,350 |
) |
|
|
(11,719 |
) |
Exercise of stock options |
|
2,489 |
|
|
|
2,028 |
|
Repurchase of shares of common stock |
|
— |
|
|
|
(200,050 |
) |
Payment of contingent consideration |
|
(300 |
) |
|
|
(1,674 |
) |
Net cash used in financing activities |
|
(31,872 |
) |
|
|
(240,383 |
) |
Impact of exchange rate changes on cash |
|
(47 |
) |
|
|
(1,975 |
) |
Net increase in cash and cash equivalents |
|
375,543 |
|
|
|
19,605 |
|
Cash and cash equivalents- Beginning of period |
|
240,069 |
|
|
|
139,779 |
|
Cash and cash equivalents- End of period |
$ |
615,612 |
|
|
$ |
159,384 |
|
|
|
|
|
|
|
Supplemental disclosure of noncash
activities: |
|
|
|
|
|
Leased assets obtained in exchange for new operating lease
liabilities |
$ |
45,525 |
|
|
$ |
80,186 |
|
Accruals for property and equipment |
|
305 |
|
|
|
395 |
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Data (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
Installation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
$ |
821,673 |
|
|
$ |
783,056 |
|
|
|
4.9 |
% |
|
$ |
2,397,818 |
|
|
$ |
2,208,717 |
|
|
8.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
$ |
175,218 |
|
|
$ |
154,236 |
|
|
|
|
|
$ |
494,394 |
|
|
$ |
406,835 |
|
|
|
Operating margin, as reported |
|
21.3 |
% |
|
|
19.7 |
% |
|
|
|
|
|
20.6 |
% |
|
18.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
1,882 |
|
|
|
(807 |
) |
|
|
|
|
|
1,882 |
|
|
|
(334 |
) |
|
|
Acquisition related costs |
|
26 |
|
|
|
15 |
|
|
|
|
|
|
516 |
|
|
|
112 |
|
|
|
Operating profit, as adjusted |
$ |
177,126 |
|
|
$ |
153,444 |
|
|
|
|
|
$ |
496,792 |
|
|
$ |
406,613 |
|
|
|
Operating margin, as adjusted |
|
21.6 |
% |
|
|
19.6 |
% |
|
|
|
|
|
20.7 |
% |
|
18.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
436 |
|
|
|
268 |
|
|
|
|
|
|
1,124 |
|
|
|
956 |
|
|
|
Depreciation and amortization |
|
17,417 |
|
|
|
15,610 |
|
|
|
|
|
|
50,700 |
|
|
|
46,615 |
|
|
|
EBITDA, as adjusted |
$ |
194,979 |
|
|
$ |
169,322 |
|
|
|
15.2 |
% |
|
$ |
548,616 |
|
|
$ |
454,184 |
|
|
20.8 |
% |
EBITDA margin, as adjusted |
|
23.7 |
% |
|
|
21.6 |
% |
|
|
|
|
|
22.9 |
% |
|
20.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Distribution |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
$ |
571,009 |
|
|
$ |
583,543 |
|
|
|
(2.1 |
)% |
|
$ |
1,703,871 |
|
|
$ |
1,715,196 |
|
|
(0.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
$ |
88,269 |
|
|
$ |
88,364 |
|
|
|
|
|
$ |
247,583 |
|
|
$ |
245,534 |
|
|
|
Operating margin, as reported |
|
15.5 |
% |
|
|
15.1 |
% |
|
|
|
|
|
14.5 |
% |
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related costs |
|
10 |
|
|
|
660 |
|
|
|
|
|
|
350 |
|
|
|
1,235 |
|
|
|
Operating profit, as adjusted |
$ |
88,279 |
|
|
$ |
89,024 |
|
|
|
|
|
$ |
247,933 |
|
|
$ |
246,769 |
|
|
|
Operating margin, as adjusted |
|
15.5 |
% |
|
|
15.3 |
% |
|
|
|
|
|
14.6 |
% |
|
14.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
434 |
|
|
|
296 |
|
|
|
|
|
|
987 |
|
|
|
938 |
|
|
|
Depreciation and amortization |
|
15,102 |
|
|
|
15,662 |
|
|
|
|
|
|
44,414 |
|
|
|
43,697 |
|
|
|
EBITDA, as adjusted |
$ |
103,815 |
|
|
$ |
104,982 |
|
|
|
(1.1 |
)% |
|
$ |
293,334 |
|
|
$ |
291,404 |
|
|
0.7 |
% |
EBITDA margin, as adjusted |
|
18.2 |
% |
|
|
18.0 |
% |
|
|
|
|
|
17.2 |
% |
|
17.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
Total net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales before eliminations |
$ |
1,392,682 |
|
|
$ |
1,366,599 |
|
|
|
|
|
$ |
4,101,689 |
|
|
$ |
3,923,913 |
|
|
|
|
Intercompany eliminations |
|
(66,562 |
) |
|
|
(65,601 |
) |
|
|
|
|
|
(193,069 |
) |
|
|
(179,712 |
) |
|
|
|
Net sales after eliminations |
$ |
1,326,120 |
|
|
$ |
1,300,998 |
|
|
1.9 |
% |
|
$ |
3,908,620 |
|
|
$ |
3,744,201 |
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported - segments |
$ |
263,487 |
|
|
$ |
242,600 |
|
|
|
|
|
$ |
741,977 |
|
|
$ |
652,369 |
|
|
|
|
General corporate expense, net |
|
(14,494 |
) |
|
|
(8,920 |
) |
|
|
|
|
|
(35,280 |
) |
|
|
(28,371 |
) |
|
|
|
Intercompany eliminations |
|
(11,501 |
) |
|
|
(10,806 |
) |
|
|
|
|
|
(32,672 |
) |
|
|
(29,949 |
) |
|
|
|
Operating profit, as reported |
$ |
237,492 |
|
|
$ |
222,874 |
|
|
|
|
|
$ |
674,025 |
|
|
$ |
594,049 |
|
|
|
|
Operating margin, as reported |
|
17.9 |
% |
|
|
17.1 |
% |
|
|
|
|
|
17.2 |
% |
|
|
15.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
1,882 |
|
|
|
(807 |
) |
|
|
|
|
|
1,882 |
|
|
|
(334 |
) |
|
|
|
Acquisition related costs † |
|
6,558 |
|
|
|
2,107 |
|
|
|
|
|
|
12,317 |
|
|
|
6,759 |
|
|
|
|
Operating profit, as adjusted |
$ |
245,932 |
|
|
$ |
224,174 |
|
|
|
|
|
$ |
688,224 |
|
|
$ |
600,474 |
|
|
|
|
Operating margin, as adjusted |
|
18.5 |
% |
|
|
17.2 |
% |
|
|
|
|
|
17.6 |
% |
|
|
16.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
4,194 |
|
|
|
2,611 |
|
|
|
|
|
|
11,080 |
|
|
|
9,673 |
|
|
|
|
Depreciation and amortization |
|
33,564 |
|
|
|
32,430 |
|
|
|
|
|
|
98,216 |
|
|
|
93,051 |
|
|
|
|
EBITDA, as adjusted |
$ |
283,690 |
|
|
$ |
259,215 |
|
|
9.4 |
% |
|
$ |
797,520 |
|
|
$ |
703,198 |
|
|
13.4 |
% |
EBITDA margin, as adjusted |
|
21.4 |
% |
|
|
19.9 |
% |
|
|
|
|
|
20.4 |
% |
|
|
18.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales change period over period |
|
25,122 |
|
|
|
|
|
|
|
|
|
164,419 |
|
|
|
|
|
|
|
EBITDA, as adjusted, change period over period |
|
24,475 |
|
|
|
|
|
|
|
|
|
94,322 |
|
|
|
|
|
|
|
Incremental EBITDA, as adjusted, as a percentage of change in
sales |
|
97.4 |
% |
|
|
|
|
|
|
|
|
57.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
† 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 September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Gross Profit Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
1,326,120 |
|
|
$ |
1,300,998 |
|
|
$ |
3,908,620 |
|
|
$ |
3,744,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit, as reported |
$ |
420,690 |
|
|
$ |
395,748 |
|
|
$ |
1,212,704 |
|
|
$ |
1,111,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
121 |
|
Gross profit, as adjusted |
$ |
420,690 |
|
|
$ |
395,748 |
|
|
$ |
1,212,704 |
|
|
$ |
1,111,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin, as reported |
|
31.7 |
% |
|
30.4 |
% |
|
|
31.0 |
% |
|
29.7 |
% |
Gross margin, as adjusted |
|
31.7 |
% |
|
30.4 |
% |
|
|
31.0 |
% |
|
29.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative Expense
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense, as
reported |
$ |
183,198 |
|
|
$ |
172,874 |
|
|
$ |
538,679 |
|
|
$ |
516,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
1,882 |
|
|
|
(807 |
) |
|
|
1,882 |
|
|
|
(334 |
) |
Acquisition related costs |
|
6,558 |
|
|
|
2,107 |
|
|
|
12,317 |
|
|
|
6,638 |
|
Selling, general, and administrative expense, as
adjusted |
$ |
174,758 |
|
|
$ |
171,574 |
|
|
$ |
524,480 |
|
|
$ |
510,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit, as reported |
$ |
237,492 |
|
|
$ |
222,874 |
|
|
$ |
674,025 |
|
|
$ |
594,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
1,882 |
|
|
|
(807 |
) |
|
|
1,882 |
|
|
|
(334 |
) |
Acquisition related costs |
|
6,558 |
|
|
|
2,107 |
|
|
|
12,317 |
|
|
|
6,759 |
|
Operating profit, as adjusted |
$ |
245,932 |
|
|
$ |
224,174 |
|
|
$ |
688,224 |
|
|
$ |
600,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported |
|
17.9 |
% |
|
17.1 |
% |
|
|
17.2 |
% |
|
15.9 |
% |
Operating margin, as adjusted |
|
18.5 |
% |
|
17.2 |
% |
|
|
17.6 |
% |
|
16.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income Per Common Share Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes, as reported |
$ |
224,677 |
|
|
$ |
208,010 |
|
|
$ |
631,140 |
|
|
$ |
554,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rationalization charges |
|
1,882 |
|
|
|
(807 |
) |
|
|
1,882 |
|
|
|
(334 |
) |
Acquisition related costs |
|
6,558 |
|
|
|
2,107 |
|
|
|
12,317 |
|
|
|
6,759 |
|
Income before income taxes, as adjusted |
|
233,117 |
|
|
|
209,310 |
|
|
|
645,339 |
|
|
|
560,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax rate at 26.0% |
|
(60,610 |
) |
|
|
(54,421 |
) |
|
|
(167,788 |
) |
|
|
(145,767 |
) |
Income, as adjusted |
$ |
172,507 |
|
|
$ |
154,889 |
|
|
$ |
477,551 |
|
|
$ |
414,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share, as adjusted |
$ |
5.43 |
|
|
$ |
4.80 |
|
|
$ |
15.04 |
|
|
$ |
12.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted common shares outstanding |
|
31,788,812 |
|
|
|
32,279,820 |
|
|
|
31,744,856 |
|
|
|
32,643,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
|
|
|
|
Same Branch and Acquisition Metrics
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net sales |
|
|
|
|
|
|
|
|
|
|
|
Same branch: |
|
|
|
|
|
|
|
|
|
|
|
Installation |
$ |
784,025 |
|
|
$ |
783,056 |
|
|
$ |
2,328,800 |
|
|
$ |
2,208,717 |
|
Specialty Distribution |
|
571,009 |
|
|
|
583,543 |
|
|
|
1,703,871 |
|
|
|
1,715,196 |
|
Eliminations |
|
(66,562 |
) |
|
|
(65,601 |
) |
|
|
(193,069 |
) |
|
|
(179,712 |
) |
Total same branch |
$ |
1,288,472 |
|
|
$ |
1,300,998 |
|
|
$ |
3,839,602 |
|
|
$ |
3,744,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions (a): |
|
|
|
|
|
|
|
|
|
|
|
Installation |
$ |
37,648 |
|
|
$ |
— |
|
|
$ |
69,018 |
|
|
$ |
— |
|
Total acquisitions |
|
37,648 |
|
|
|
— |
|
|
|
69,018 |
|
|
|
— |
|
Total |
$ |
1,326,120 |
|
|
$ |
1,300,998 |
|
|
$ |
3,908,620 |
|
|
$ |
3,744,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted |
|
|
|
|
|
|
|
|
|
|
|
Same branch |
$ |
277,497 |
|
|
$ |
259,215 |
|
|
$ |
787,212 |
|
|
$ |
703,198 |
|
Acquisitions (a) |
|
6,193 |
|
|
|
— |
|
|
|
10,308 |
|
|
|
— |
|
Total |
$ |
283,690 |
|
|
$ |
259,215 |
|
|
$ |
797,520 |
|
|
$ |
703,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as adjusted, as a percentage of sales |
|
|
|
|
|
|
|
|
|
|
|
Same branch (b) |
|
21.5 |
% |
|
|
|
|
|
20.5 |
% |
|
|
|
Acquisitions (c) |
|
16.4 |
% |
|
|
|
|
|
14.9 |
% |
|
|
|
Total (d) |
|
21.4 |
% |
|
|
19.9 |
% |
|
20.4 |
% |
|
|
18.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
As Adjusted Incremental EBITDA, as a percentage of change
in sales |
|
|
|
|
|
|
|
|
|
|
|
Same branch (e) |
|
NM |
|
|
|
|
|
|
88.1 |
% |
|
|
|
Acquisitions (c) |
|
16.4 |
% |
|
|
|
|
|
14.9 |
% |
|
|
|
Total (f) |
|
97.4 |
% |
|
|
|
|
|
57.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
salesNM Not Meaningful
TopBuild Corp. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Net Income
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income, as reported |
$ |
167,602 |
|
|
$ |
153,746 |
|
|
$ |
467,870 |
|
|
$ |
412,156 |
|
Adjustments to arrive at EBITDA, as adjusted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and other, net |
|
12,815 |
|
|
|
14,864 |
|
|
|
42,885 |
|
|
|
39,833 |
|
Income tax expense |
|
57,075 |
|
|
|
54,264 |
|
|
|
163,270 |
|
|
|
142,060 |
|
Depreciation and amortization |
|
33,564 |
|
|
|
32,430 |
|
|
|
98,216 |
|
|
|
93,051 |
|
Share-based compensation |
|
4,194 |
|
|
|
2,611 |
|
|
|
11,080 |
|
|
|
9,673 |
|
Rationalization charges |
|
1,882 |
|
|
|
(807 |
) |
|
|
1,882 |
|
|
|
(334 |
) |
Acquisition related costs |
|
6,558 |
|
|
|
2,107 |
|
|
|
12,317 |
|
|
|
6,759 |
|
EBITDA, as adjusted |
$ |
283,690 |
|
|
$ |
259,215 |
|
|
$ |
797,520 |
|
|
$ |
703,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TopBuild Corp. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition Adjusted Net Sales (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
2023 |
|
Trailing Twelve Months Ended |
|
Q4 |
|
Q1 |
|
Q2 |
|
Q3 |
|
September 30, 2023 |
Net Sales |
$ |
1,264,543 |
|
|
$ |
1,265,238 |
|
|
$ |
1,317,262 |
|
|
$ |
1,326,120 |
|
|
$ |
5,173,163 |
|
Acquisitions proforma adjustment † |
|
45,575 |
|
|
|
30,745 |
|
|
|
25,753 |
|
|
|
4,258 |
|
|
|
106,331 |
|
Net sales, acquisition adjusted |
$ |
1,310,118 |
|
|
$ |
1,295,983 |
|
|
$ |
1,343,015 |
|
|
$ |
1,330,378 |
|
|
$ |
5,279,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
† 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 |
$ |
597.0 |
|
|
|
625.0 |
|
Adjustments to arrive at estimated EBITDA, as adjusted: |
|
|
|
|
|
|
Interest expense and other, net |
|
54.0 |
|
|
|
51.0 |
|
Income tax expense |
|
210.0 |
|
|
|
219.0 |
|
Depreciation and amortization |
|
133.0 |
|
|
|
131.0 |
|
Share-based compensation |
|
15.0 |
|
|
|
14.0 |
|
Acquisition related costs |
|
16.0 |
|
|
|
15.0 |
|
Estimated EBITDA, as adjusted |
$ |
1,025.0 |
|
|
$ |
1,055.0 |
|
|
|
|
|
|
|
|
|
TopBuild (NYSE:BLD)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
TopBuild (NYSE:BLD)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024