- Record Annual Revenues and
Earnings- Acquired $172 Million in Annual Revenues-
Authorizes $50 Million Stock Repurchase Program
Installed Building Products, Inc. (the "Company" or "IBP")
(NYSE:IBP), an industry-leading installer of insulation and
complementary building products, today announced record results for
the full year ended December 31, 2017.
Fourth Quarter 2017 Highlights
- Net revenue increased 28.2% to $299.9
million
- Net income was $10.8 million
- Adjusted EBITDA* increased 21.5% to
$36.2 million
- Net income per diluted share was
$0.34
- Adjusted net income per diluted share*
increased 18.2% to $0.52
- In October 2017, acquired A+
Insulation, LLC, an insulation installer in Kansas City with annual
revenues of $3.8 million
- In October 2017, acquired Building
Solutions, LLC, an insulation installer in Oklahoma with annual
revenues of approximately $2.0 million
- In December 2017, acquired Blind
Ambitions, LLC, an installer of window blinds, shades and shutters
in multiple locations throughout the Southeast with trailing-twelve
month revenue of $9.4 million
- In December 2017, acquired Allpro
Insulation Co, an insulation installer in Raleigh with
trailing-twelve month revenue of $2.8 million
Recent Developments
- In January 2018, acquired Rocket
Insulation & Coatings Inc., an insulation installer in New York
with annual revenues of $5.4 million
- In January 2018, acquired Allstate
Insulation, an insulation installer in Kentucky with annual
revenues of approximately $1.5 million
- IBP’s Board of Directors authorized a
$50 million stock repurchase program effective as of March 2, 2018
through February 28, 2019, unless extended by the Board of
Directors
“IBP’s record 2017 financial and operating results reflect the
continued success of the Company’s growth-oriented business model,
disciplined acquisition strategy, and service-oriented culture,”
stated Jeff Edwards, Chairman and Chief Executive Officer. “Since
going public in February 2014, IBP has successfully grown revenues
to a record $1.1 billion, a 162% increase from $431.9 million for
the full year 2013. In addition, we have enhanced our business
platform by diversifying our installation services and expanding
our geographic footprint to many of the strongest U.S. housing
markets. As a result, at December 31, 2017 67% of revenues were
from insulation installation services versus 74% at December 31,
2013. This diversification and expansion strategy positions IBP to
provide more installation services and deepens our relationships
with builders across the country.
“IBP’s growth over the past four years is a direct result of the
commitment of our nearly 7,000 employees. During 2017, IBP began
offering a financial wellness program to our employees, and I am
extremely pleased that approximately 40% of our eligible employees
took advantage of the program.
“As we start the new year, there continues to be significant
opportunities to meaningfully grow revenues and profitability. We
remain focused on our core insulation installation business, while
further diversifying our installation services to new geographies,
end markets, and product lines. IBP has a strong platform,
disciplined approach, and experienced team to successfully
identify, execute, and integrate acquisitions, and during 2017 the
Company completed 16 acquisitions representing $172 million of
annual revenues. Our pipeline of potential acquisitions is robust
and we expect 2018 will be another strong year of acquisition
growth. IBP’s performance and growth over the past year is
encouraging, and I am excited by future opportunities to grow and
create value for our shareholders. Given the Company’s strong
financial position and our commitment to generating shareholder
value, I am pleased to announce that the Board has approved a $50
million stock buyback plan and encouraged us to opportunistically
repurchase shares,” concluded Mr. Edwards.
Fourth Quarter 2017 Results Overview
For the fourth quarter of 2017, net revenue was $299.9 million,
an increase of 28.2% from $234.0 million in the fourth quarter of
2016. On a same branch basis, net revenue improved 9.4% from the
prior year quarter, with approximately 60% of the increase
attributable to growth in the number of completed jobs, and the
remainder achieved through more favorable customer and product
mix.
Gross profit improved 19.0% to $81.3 million from $68.4 million
in the prior year quarter. Adjusted gross profit* improved 23.2% to
$84.2 million, adjusting for the Company’s share based compensation
expense and financial wellness program.
Selling and administrative expense, as a percentage of net
revenue, was 19.2% compared to 19.8% in the prior year quarter.
Adjusted selling and administrative expense*, as a percentage of
net revenue, improved 70 basis points to 18.5% from 19.2%. Higher
net revenue in the 2017 fourth quarter more than offset the higher
costs needed to support the Company’s growth.
Net income was $10.8 million, or $0.34 per diluted share,
compared to $11.1 million, or $0.35 per diluted share in the prior
year quarter. Adjusted net income was $16.6 million, or $0.52 per
diluted share, compared to $13.9 million, or $0.44 per diluted
share in the prior year quarter. Adjusted net income adjusts for
the impact of non-core items in both periods, includes an addback
for non-cash amortization expense related to acquisitions, and a
reduction of the Company’s deferred tax liability as a result of
the Tax Cuts and Jobs Act.
Adjusted EBITDA was $36.2 million, a 21.5% increase from $29.8
million in the prior year quarter, largely due to leveraging
administrative expenses on increased revenue. Adjusted EBITDA, as a
percentage of net revenue, was 12.1%, compared to 12.7% in the
prior year quarter.
Full Year 2017 Results Overview
For the year ended December 31, 2017, net revenue was $1,132.9
million, an increase of 31.3% from $863.0 million in 2016. On a
same branch basis, net revenue improved 9.8% from the prior year,
with approximately 60% of the increase attributable to growth in
the number of completed jobs and the remainder achieved through
price gains and more favorable customer and product mix. Same
branch residential revenue increased 11.3% as compared to an 8.8%
increase in total U.S. housing completions.
Gross profit improved 28.4% to $324.0 million from $252.4
million in the prior year. Gross margin was 28.6%, compared to
29.3% in the prior year. Adjusted gross profit, adjusted for the
Company’s share based compensation expense and financial wellness
program improved 29.7% to $327.4 million for the full year.
Selling and administrative expense, as a percentage of net
revenue, was 19.7% compared to 20.3% in the prior year. Adjusted
selling and administrative expense, as a percentage of net revenue,
improved 90 basis points to 18.9% from 19.8%.
Net income was $41.1 million, or $1.30 per diluted share,
compared to $38.4 million, or $1.23 per diluted share in the prior
year. Adjusted net income was $65.0 million, or $2.05 per diluted
share, compared to $48.4 million, or $1.54 per diluted share in the
prior year. Adjusted net income adjusts for the impact of non-core
items in both periods, includes an addback for non-cash
amortization expense related to acquisitions, and a release of the
Company’s deferred tax liability as a result of the Tax Cuts and
Jobs Act.
For the full year of 2017, adjusted EBITDA was $141.1 million, a
34.6% increase from $104.8 million in the prior year. Adjusted
EBITDA, as a percentage of net revenue, improved to 12.5%, or 40
basis points, compared to 12.1% in the prior year. Operating income
was $74.3 million, a 12.4% increase from $66.1 million in the prior
year. The incremental Adjusted EBITDA margin* on same branch
revenue growth was 13.8% (please refer to the Supplementary Tables
at the end of this Press Release).
Stock Repurchase Program
IBP’s Board of Directors has approved a stock repurchase
program, effective as of March 2, 2018, pursuant to which the
Company may repurchase up to $50 million of its outstanding common
stock. The program will remain in effect until February 28, 2019,
unless extended by the Board of Directors.
Under the repurchase program, the Company may purchase shares of
its common stock through open market transactions, block purchases,
privately negotiated transactions or otherwise in accordance with
applicable federal securities laws, including Rule 10b-18 of the
Securities Exchange Act of 1934, as amended. The timing and amount
of any repurchases under this program will be determined by the
Company’s management at its discretion based on a variety of
factors, including the market price of our common stock, corporate
considerations, general market and economic conditions, and legal
requirements. The program may be modified, discontinued or
suspended at any time or from time to time. The Company anticipates
funding for this program to come from available corporate funds,
including cash on hand and future cash flow.
Conference Call and Webcast
The Company will host a conference call and webcast on February
28, 2018 at 9:00 a.m. Eastern Time to discuss these results. To
participate in the call, please dial 877-407-0792 (domestic) or
201-689-8263 (international). The live webcast will be available at
www.installedbuildingproducts.com in the investor relations
section. A replay of the conference call will be available through
March 28, 2018, by dialing 844-512-2921 (domestic) or 412-317-6671
(international) and entering the passcode 13676655.
About Installed Building Products
Installed Building Products, Inc. is one of the nation's largest
insulation installers for the residential new construction market
and is also a diversified installer of complementary building
products, including waterproofing, fire-stopping and fireproofing,
garage doors, rain gutters, shower doors, closet shelving and
mirrors, throughout the United States. The Company manages all
aspects of the installation process for its customers, including
direct purchases of materials from national manufacturers, supply
of materials to job sites and quality installation. The Company
offers its portfolio of services for new and existing single-family
and multi-family residential and commercial building projects from
its national network of branch locations.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws, including with respect
to our financial and business model, the newly authorized stock
repurchase program and its potential benefits, the demand for our
services and product offerings, expansion of our national footprint
and diversification, our ability to capitalize on the new home and
commercial construction recovery, our ability to strengthen our
market position, our ability to pursue and integrate
value-enhancing acquisitions, our ability to improve sales and
profitability, and expectations for demand for our services and our
earnings in 2018. Forward-looking statements may generally be
identified by the use of words such as "anticipate," "believe,"
"expect," "intends," "plan," and "will" or, in each case, their
negative, or other variations or comparable terminology. These
forward-looking statements include all matters that are not
historical facts. By their nature, forward-looking statements
involve risks and uncertainties because they relate to events and
depend on circumstances that may or may not occur in the future.
Any forward-looking statements that we make herein and in any
future reports and statements are not guarantees of future
performance, and actual results may differ materially from those
expressed in or suggested by such forward-looking statements as a
result of various factors, including, without limitation, the
factors discussed in the “Risk Factors” section of the Company’s
Annual Report on Form 10-K for the year ended December 31, 2016, as
the same may be updated from time to time in our subsequent filings
with the Securities and Exchange Commission. Any forward-looking
statement made by the Company in this press release speaks only as
of the date hereof. New risks and uncertainties arise from time to
time, and it is impossible for the Company to predict these events
or how they may affect it. The Company has no obligation, and does
not intend, to update any forward-looking statements after the date
hereof, except as required by federal securities laws.
*Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance
with U.S. generally accepted accounting principles (“GAAP”), this
press release contains the non-GAAP financial measures of Adjusted
EBITDA, Adjusted EBITDA margin (i.e., Adjusted EBITDA divided by
net revenue), Adjusted Net Income, Adjusted Net Income per diluted
share, Adjusted Gross Profit and Adjusted Selling and
Administrative expense. The reasons for the use of these measures,
reconciliations of Adjusted EBITDA, Adjusted Net Income, Adjusted
Net Income per diluted share, Adjusted Gross Profit, and Adjusted
Selling and Administrative expense to the most directly comparable
GAAP measures and other information relating to these measures are
included below following the unaudited condensed consolidated
financial statements. Non-GAAP financial measures have limitations
as analytical tools and should not be considered in isolation or as
a substitute for IBP’s financial results prepared in accordance
with GAAP.
INSTALLED BUILDING PRODUCTS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited, in
thousands, except share and per share amounts)
Three months ended
Twelve months ended December 31, December 31,
2017 2016 2017 2016 Net revenue $
299,869 $ 233,977 $ 1,132,927 $ 862,980 Cost of sales
218,524 165,623 808,901 610,532 Gross
profit 81,345 68,354 324,026 252,448 Operating expenses Selling
15,909 13,429 58,450 49,667 Administrative 41,774 32,794 164,453
125,472 Amortization 7,067 3,081 26,857
11,259 Operating income 16,595 19,050 74,266 66,050 Other
expense Interest expense, net 5,925 1,571 17,381 6,177 Other
699 15 1,065 263 Income before income
taxes 9,971 17,464 55,820 59,610 Income tax (benefit) provision
(822 ) 6,383 14,680 21,174 Net income $
10,793 $ 11,081 $ 41,140 $ 38,436 Other comprehensive
income, net of tax: Unrealized gain on cash flow hedge, net of tax
provision of $236 and $206 for the three and twelve months ended
December 31, 2017, respectively 552 -
507 - Comprehensive income $ 11,345 $ 11,081 $ 41,647
$ 38,436 Basic and diluted net income per share $ 0.34
$ 0.35 $ 1.30 $ 1.23 Weighted average shares outstanding:
Basic 31,659,710 31,323,600 31,639,283 31,301,887 Diluted
31,860,978 31,396,857 31,756,363 31,363,290 INSTALLED
BUILDING PRODUCTS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share and per share amounts)
December 31,
2017 2016 ASSETS Current assets Cash and cash
equivalents $ 62,510 $ 14,482 Investments 30,053 -
Accounts receivable (less allowance for
doubtful accounts of $4,805 and $3,397 at December 31, 2017 and
2016, respectively)
180,725 128,466 Inventories 48,346 40,229 Other current assets
33,308 9,214 Total current assets
354,942 192,391 Property and equipment, net 81,075 67,788
Non-current assets Goodwill 155,466 107,086 Intangibles, net
137,991 86,317 Other non-current assets 9,272
8,513 Total non-current assets 302,729
201,916 Total assets $ 738,746 $ 462,095
LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities Current maturities of long-term debt $ 16,650 $ 17,192
Current maturities of capital lease obligations 5,666 6,929
Accounts payable 87,425 67,921 Accrued compensation 25,399 18,212
Other current liabilities 24,666 19,851
Total current liabilities 159,806 130,105 Long-term debt 330,927
134,235 Capital lease obligations, less current maturities 6,479
8,364 Deferred income taxes 6,444 14,239 Other long-term
liabilities 24,562 21,175 Total
liabilities 528,218 308,118 Commitments and contingencies
Stockholders' equity
Preferred Stock; $0.01 par value:
5,000,000 authorized and 0 shares issued and outstanding at
December 31, 2017 and 2016, respectively
-
-
Common Stock; $0.01 par value: 100,000,000
authorized, 32,524,934 and 32,135,176 issued and 31,862,146 and
31,484,774 shares outstanding at December 31, 2017 and 2016,
respectively
325 321 Additional paid in capital 174,043 158,581 Retained
earnings 48,434 7,294 Treasury Stock; at cost: 662,788 and 650,402
shares at December 31, 2017 and 2016, respectively (12,781 )
(12,219 ) Accumulated other comprehensive income 507
- Total stockholders' equity 210,528
153,977 Total liabilities and stockholders' equity $
738,746 $ 462,095 INSTALLED BUILDING
PRODUCTS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
Twelve
months ended December 31, 2017 2016 Cash flows
from operating activities Net income $ 41,140 $ 38,436
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization of property and equipment 28,285
23,571 Amortization of intangibles 26,857 11,259 Amortization of
deferred financing costs and debt discount 1,093 383 Provision for
doubtful accounts 2,834 2,928 Write-off of debt issuance costs
2,113 286 Gain on sale of property and equipment (492 ) (254 )
Noncash stock compensation 6,592 1,894 Deferred income taxes (6,160
) (605 ) Changes in assets and liabilities, excluding effects of
acquisitions Accounts receivable (19,955 ) (18,760 ) Inventories
(3,667 ) (8,677 ) Other assets (4,602 ) 2,803 Accounts payable
6,303 12,400 Income taxes payable/receivable (18,605 ) 1,484 Other
liabilities 7,036 6,118 Net cash
provided by operating activities 68,772 73,266
Cash flows from investing activities Purchases of
investments (30,194 ) - Purchases of property and equipment (31,668
) (27,013 ) Acquisitions of businesses, net of cash acquired of
$247 and $2,181, respectively (137,120 ) (53,312 ) Proceeds from
sale of property and equipment 959 691 Other (2,420 )
37 Net cash used in investing activities (200,443 )
(79,597 )
Cash flows from financing activities
Proceeds from revolving line of credit under credit agreement
applicable to respective period - 37,975 Payments on revolving line
of credit under credit agreement applicable to respective period -
(37,975 ) Proceeds from term loan under credit agreement applicable
to respective period 300,000 100,000 Payments on term loan under
credit agreement applicable to respective period (97,750 ) (51,875
) Proceeds from delayed draw term loan under credit agreement
applicable to respective period 112,500 12,500 Payments on delayed
draw term loan under credit agreement applicable to respective
period (125,000 ) (50,000 ) Proceeds from vehicle and equipment
notes payable 22,460 22,948 Debt issuance costs (8,281 ) (1,238 )
Principal payments on long-term debt (10,002 ) (5,849 ) Principal
payments on capital lease obligations (7,314 ) (8,598 )
Acquisition-related obligations (4,464 ) (3,057 ) Surrender of
common stock awards by employees (562 ) (836 ) Purchase of
remaining interest in subsidiary (1,888 ) -
Net cash provided by financing activities 179,699
13,995 Net change in cash and cash equivalents 48,028
7,664 Cash and cash equivalents at beginning of period
14,482 6,818 Cash and cash equivalents at end
of period $ 62,510 $ 14,482
Supplemental
disclosures of cash flow information Net cash paid during the
period for: Interest $ 13,758 $ 5,342 Income taxes, net of refunds
38,887 18,929
Supplemental disclosure of noncash investing and
financing activities Common stock issued for acquisition of
business 10,859 - Vehicles capitalized under capital leases and
related lease obligations 4,440 3,737 Seller obligations in
connection with acquisition of businesses 5,128 4,459 Unpaid
purchases of property and equipment included in accounts payable
2,003 775
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income,
Adjusted Gross Profit and Adjusted Selling and Administrative
Expense measure performance by adjusting EBITDA, GAAP net income,
gross profit and selling and administrative expense, respectively,
for certain income or expense items that are not considered part of
our core operations. We believe that the presentation of these
measures provides useful information to investors regarding our
results of operations because it assists both investors and us in
analyzing and benchmarking the performance and value of our
business.
We believe the Adjusted EBITDA measure is useful to investors
and us as a measure of comparative operating performance from
period to period as it measures our changes in pricing decisions,
cost controls and other factors that impact operating performance,
and removes the effect of our capital structure (primarily interest
expense), asset base (primarily depreciation and amortization),
items outside our control (primarily income taxes) and the
volatility related to the timing and extent of other activities
such as asset impairments and non-core income and expenses.
Accordingly, we believe that this measure is useful for comparing
general operating performance from period to period. In addition,
we use various EBITDA-based measures in determining the achievement
of awards under certain of our incentive compensation programs.
Other companies may define Adjusted EBITDA differently and, as a
result, our measure may not be directly comparable to measures of
other companies. In addition, Adjusted EBITDA may be defined
differently for purposes of covenants contained in our revolving
credit facility or any future facility.
Although we use the Adjusted EBITDA measure to assess the
performance of our business, the use of the measure is limited
because it does not include certain material expenses, such as
interest and taxes, necessary to operate our business. Adjusted
EBITDA should be considered in addition to, and not as a substitute
for, GAAP net (loss) income as a measure of performance. Our
presentation of this measure should not be construed as an
indication that our future results will be unaffected by unusual or
non-recurring items. This measure has limitations as an analytical
tool, and you should not consider it in isolation or as a
substitute for analysis of our results as reported under GAAP.
Because of these limitations, this measure is not intended as an
alternative to net (loss) income as an indicator of our operating
performance, as an alternative to any other measure of performance
in conformity with GAAP or as an alternative to cash flow (used in)
provided by operating activities as a measure of liquidity. You
should therefore not place undue reliance on this measure or ratios
calculated using this measure.
We also believe the Adjusted Net Income measure is useful to
investors and us as a measure of comparative operating performance
from period to period as it measures our changes in pricing
decisions, cost controls and other factors that impact operating
performance, and removes the effect of certain non-core items such
as discontinued operations, acquisition related expenses,
amortization expense, the tax impact of these certain non-core
items, and the volatility related to the timing and extent of other
activities such as asset impairments and non-core income and
expenses. To make the financial presentation more consistent with
other public building products companies, beginning in the fourth
quarter 2016 we included an addback for non-cash amortization
expense related to acquisitions. Accordingly, we believe that this
measure is useful for comparing general operating performance from
period to period. Other companies may define Adjusted Net Income
differently and, as a result, our measure may not be directly
comparable to measures of other companies. In addition, Adjusted
Net Income may be defined differently for purposes of covenants
contained in our revolving credit facility or any future
facility.
The table below reconciles Adjusted Net Income to the most
directly comparable GAAP financial measure, net income, for the
periods presented therein.
Per share figures may reflect rounding adjustments and
consequently totals may not appear to sum.
INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF
GAAP TO NON-GAAP MEASURES ADJUSTED NET INCOME CALCULATIONS
(unaudited, in thousands, except share and per share amounts)
Three months ended December 31, Twelve months
ended December 31, 2017 2016 2017
2016 Net income, as reported $ 10,793 $
11,081 $ 41,140 $ 38,436 Adjustments for adjusted net income:
Write-off of capitalized loan costs 1,791 - 2,113 286 Share based
compensation expense 1,842 362 6,591 1,894 Acquisition related
expenses 928 989 3,201 2,320 Financial Wellness Program 1 2,206 -
2,206 - Amortization expense 2 7,067 3,081 26,857 11,259 Tax impact
of adjusted items at normalized tax rate 3 (4,648 ) (1,640 )
(13,765 ) (5,831 ) 2017 Tax Cuts and Jobs Act - Release of deferred
tax liability 4 (3,385 ) - (3,385 )
-
Adjusted net income $ 16,594 $ 13,873
$ 64,958 $ 48,364 Weighted average
shares outstanding (diluted) 31,860,978 31,396,857 31,756,363
31,363,290
Diluted net income per share, as reported
$ 0.34 $ 0.35 $ 1.30 $ 1.23 Adjustments for adjusted net income,
net of tax impact, per diluted share 5 0.18
0.09 0.75 0.31
Diluted
adjusted net income per share $ 0.52 $ 0.44 $
2.05 $ 1.54
1
Employer match upon completion of the
program, net of waived executive bonuses
2
Addback of all non-cash amortization
resulting from business combinations
3
Pre-2017 tax reform impacted effective tax
rate of 33.6% applied to 2017 and 37.0% in 2016
4
Tax impacts on deferred tax and uncertain
tax positions recorded as a result of the 2017 Tax Cuts and Jobs
Act
5
Includes adjustments related to the items
noted above, net of tax
INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF
GAAP TO NON-GAAP MEASURES ADJUSTED GROSS PROFIT CALCULATIONS
(unaudited, in thousands)
Three months ended December 31,
Twelve months ended December 31, 2017 2016
2017 2016 Gross profit $ 81,345 $ 68,354 $
324,026 $ 252,448 Share based compensation expense 458 - 965 -
Financial Wellness Program 1 2,412 - 2,412
- Adjusted gross profit $ 84,215 $ 68,354 $ 327,403 $
252,448 1 Employer match upon completion of the
program, partially offset by waived executive bonuses (see below
Adjusted Selling & Administrative)
INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF GAAP TO
NON-GAAP MEASURES ADJUSTED SELLING AND ADMINISTRATIVE EXPENSE
CALCULATIONS (unaudited, in thousands)
Three months ended
December 31, Twelve months ended December 31,
2017 2016 2017 2016
Selling expense $ 15,909 $ 13,429 $ 58,450 $ 49,667
Administrative expense 41,774 32,794 164,453 125,472
Selling and Administrative $ 57,683 $ 46,223
$ 222,903 $ 175,139 Share based
compensation expense 1,384 362 5,626 1,894 Acquisition related
expenses 928 989 3,201 2,320 Financial Wellness Program 1 (206 ) -
(206 ) - Adjusted Selling and
Administrative $ 55,577 $ 44,872 $ 214,282 $
170,925 Adj. Selling and Administrative - % Total
Revenue 18.5 % 19.2 % 18.9 % 19.8 % 1 Employer match
upon completion of the program, net of waived executive bonuses
The table below reconciles Adjusted EBITDA to the most directly
comparable GAAP financial measure, net income, for the periods
presented therein.
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES ADJUSTED EBITDA CALCULATIONS (unaudited, in
thousands)
Three months ended December 31, Twelve
months ended December 31, 2017 2016
2017 2016 Adjusted EBITDA: Net
income (GAAP) $ 10,793 $ 11,081 $ 41,140 $ 38,436 Interest expense
5,925 1,571 17,381 6,177 Provision for income taxes (822 ) 6,383
14,680 21,174 Depreciation and amortization 14,619
9,411 55,141 34,830
EBITDA 30,515 28,446 128,342
100,617 Acquisition related expenses
928 989 3,201 2,320 Share based compensation expense 1,842 362
6,591 1,894 Financial Wellness Program 1 2,206 - 2,206 - Write-off
of uncertain tax position 2 713 -
713 - Adjusted EBITDA $ 36,204 $
29,797 $ 141,053 $ 104,831 Adjusted
EBITDA margin 12.1 % 12.7 % 12.5 % 12.1 %
1
Employer match upon completion of the
program, net of waived executive bonuses
2
Write off of uncertain tax position
INSTALLED BUILDING PRODUCTS, INC.
SUPPLEMENTARY TABLE (unaudited)
Three months ended
December 31, Twelve months ended December 31,
2017 2016 2017 2016
Period-over-period
Growth
Sales Growth 28.2% 22.2% 31.3% 30.2% Same Branch Sales Growth 9.4%
10.6% 9.8% 15.6% Single-Family Sales Growth 18.2% 21.4%
17.6% 28.2% Single-Family Same Branch Sales Growth 9.8% 7.7% 7.9%
13.5% Residential Sales Growth 21.3% 23.0% 24.6% 30.1%
Residential Same Branch Sales Growth 11.1% 9.9% 11.3% 15.3%
U.S. Housing
Market1
Total Completions Growth 5.0% 13.2% 8.8% 9.5% Single-Family
Completions Growth 5.3% 15.3% 7.7% 14.0%
Same Branch Sales
Growth
Volume Growth 5.9% 5.5% 5.8% 8.8% Price/Mix Growth 3.5% 5.1% 4.0%
6.8% 1 U.S. Census Bureau data, as revised
INSTALLED BUILDING PRODUCTS, INC.
INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS (unaudited, in
thousands)
Three months ended December 31, Twelve
months ended December 31, 2017 % Total
2016 % Total 2017 % Total
2016 % Total Revenue Increase
Same Branch $ 21,959 33.3 % $ 20,294 47.8 % $ 84,245 31.2 % $
103,406 51.6 % Acquired 43,933 66.7 % 22,184 52.2 %
185,701 68.8 % 96,855 48.4 % Total $ 65,892 100.0 % $
42,478 100.0 % $ 269,946 100.0 % $ 200,261 100.0 %
Adj EBITDA Adj EBITDA Adj EBITDA Adj EBITDA Contribution
Contribution Contribution Contribution
Adjusted EBITDA
Same Branch $ 1,849 8.4 % $ 4,054 20.0 % $ 11,598 13.8 % $
22,983 22.2 % Acquired 4,558 10.4 % 2,263 10.2 %
24,627 13.3 % 10,687 11.0 % Total $ 6,407 9.7 % $
6,317 14.9 % $ 36,225 13.4 % $ 33,670 16.8 %
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version on businesswire.com: http://www.businesswire.com/news/home/20180228005260/en/
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