Installed Building Products Reports Record Results for Fourth Quarter and Fiscal Year 2018

- Record Annual Revenues and Earnings

- Strong Price / Mix Growth in Fourth Quarter

- Completed 12 Acquisitions Representing Approximately $83 Million of Annual Revenues

- Returned $89.4 Million of Capital to Shareholders Through Repurchase Program During 2018

COLUMBUS, Ohio--()--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 fourth quarter and fiscal year ended December 31, 2018.

Fourth Quarter 2018 Highlights

  • Net revenue increased 17.8% to a record $353.1 million
  • Net income increased 52.6% to a record $16.5 million
  • Adjusted EBITDA* increased 20.5% to $43.6 million
  • Net income per diluted share increased 58.8% to $0.54 per diluted share
  • Adjusted net income per diluted share increased 38.5% to $0.72 per diluted share*
  • In October 2018, acquired Advanced Fiber Technology, a manufacturer of cellulose insulation and industrial fibers in Bucyrus, Ohio with annual revenues of approximately $18.0 million
  • In December 2018, acquired Carolina Glass & Mirror, Inc., a commercial and residential glass applications installer in North Carolina with annual revenues of $6.2 million
  • In December 2018, acquired Hamilton Benchmark Inc., a commercial fire-stopping solutions installer in Wisconsin with annual revenues of $1.3 million
  • During the fourth quarter, IBP repurchased 1.3 million shares of its common stock, for a total price of $46.5 million

“IBP ended the year with strong operating and financial momentum, and I am encouraged by our fourth quarter performance,” stated Jeff Edwards, Chairman and Chief Executive Officer. “Throughout the year we worked with our suppliers and customers to successfully manage the atypical pricing environment. During the 2018 fourth quarter, price / mix contributed 7.8% of sales growth during the quarter, which combined with strong operating leverage helped drive record fourth quarter net income.

“IBP’s record results would not be possible if it wasn’t for the dedication and commitment of our 7,700 employees across the United States. We experienced improved employee retention rates in 2018 as a direct result of our financial wellness program, longevity stock program, and various community engagement programs. In addition, IBP returned $89.4 million of capital back to shareholders through our stock repurchase program.

“For 2018, sales increased 18.0%, outpacing the 3.4% year-over-year growth in total U.S. housing completions. This performance is a direct result of our ability to grow our core insulation installation business, while diversifying our installation services to new geographies, end markets, and product offerings. During 2018, IBP completed 12 acquisitions representing approximately $83 million of annual revenues. We also saw an 11.5% increase in sales of our large commercial construction installation business in 2018. As our financial results show, IBP continues to build upon its national platform of installation services and I am excited by future opportunities to grow and create greater value for our shareholders,” concluded Mr. Edwards.

Fourth Quarter 2018 Results Overview

For the fourth quarter of 2018, net revenue was $353.1 million, an increase of 17.8% from $299.9 million in the fourth quarter of 2017. On a same branch basis, net revenue improved 11.1% from the prior year quarter. Residential same branch sales growth was 10.9% in the quarter, with more than 70% of the increase attributable to price gains and more favorable customer and product mix with the remainder attributable to the growth in the number of completed jobs. Same branch single-family sales grew 8.6% during the fourth quarter, compared to a decline in U.S. single-family housing completions of -1.1%, while our large commercial construction end-market had organic growth of 13.0%.

Gross profit improved 21.3% to $98.6 million from $81.3 million in the prior year quarter. Adjusted gross profit* as a percent of total revenue was 27.9%, which adjusts for the Company’s share-based compensation expense, branch start-up costs and gain on a facility disposal, compared to 28.1% for the same period last year.

Selling and administrative expense, as a percentage of net revenue, was 18.7% compared to 19.2% in the prior year quarter. Adjusted selling and administrative expense*, as a percentage of net revenue, improved 50 basis points to 18.0% from 18.5%. Higher net revenue in the 2018 fourth quarter more than offset the higher costs needed to support the Company’s growth.

Net income was $16.5 million, or $0.54 per diluted share, compared to $10.8 million, or $0.34 per diluted share, in the prior year quarter. Adjusted net income* was $21.8 million, or $0.72 per diluted share, compared to $16.6 million, or $0.52 per diluted share in the prior year quarter. Adjusted net income adjusts for the impact of non-core items in both periods and includes an addback for non-cash amortization expense related to acquisitions.

Adjusted EBITDA* was $43.6 million, a 20.5% increase from $36.2 million in the prior year quarter, largely due to higher sales and better selling and administrative leverage. Adjusted EBITDA, as a percentage of net revenue, was 12.4% compared to 12.1% in the prior year quarter. The incremental Adjusted EBITDA margin* on same branch revenue growth was 15.5% (please refer to the Supplementary Tables at the end of this Press Release).

Full Year 2018 Results Overview

For the year ended December 31, 2018, net revenue was $1,336.4 million, an increase of 18.0% from $1,132.9 million in 2017. On a same branch basis, net revenue improved 11.5% from the prior year, with more than half 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 11.4% as compared to a 3.4% increase in total U.S. housing completions.

Gross profit improved 14.7% to $371.6 million from $324.0 million in the prior year. Gross margin was 27.8% compared to 28.6% in the prior year. Adjusted gross profit, adjusted for the Company’s share-based compensation expense, financial wellness program, branch start-up costs and gain on a facility disposal, improved 14.0% to $373.2 million for the full year.

Selling and administrative expense, as a percentage of net revenue, was 18.9% compared to 19.7% in the prior year. Adjusted selling and administrative expense, as a percentage of net revenue, improved 80 basis points to 18.1% from 18.9%.

Net income was $54.7 million, or $1.75 per diluted share, compared to $41.1 million, or $1.30 per diluted share in the prior year. Adjusted net income was $83.5 million, or $2.67 per diluted share, compared to $65.0 million, or $2.05 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 2018, adjusted EBITDA was $164.4 million, a 16.5% increase from $141.1 million in the prior year. Adjusted EBITDA, as a percentage of net revenue was 12.3%, compared to 12.5% in the prior year. Operating income was $93.2 million, a 25.5% increase from $74.3 million in the prior year. The incremental Adjusted EBITDA margin on same branch revenue growth was 11.9% (please refer to the Supplementary Tables at the end of this Press Release).

Net cash from operating activities was $96.6 million, an increase of 40.5% from $68.8 million in the prior year.

Conference Call and Webcast

The Company will host a conference call and webcast on February 28, 2019 at 10:00 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, 2019, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13686963.

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, window blinds, 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 demand for our services and product offerings, expansion of our national footprint and end markets, diversification of our products, our ability to capitalize on the new home and commercial construction recovery, our ability to grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions, our ability to improve sales and profitability, expectations for demand for our services and our earnings in 2019. 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, general economic and industry conditions, the material price environment, and the factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, 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 December 31,   Twelve months ended December 31,
2018 2017 2018 2017
Net revenue $ 353,121 $ 299,869 $ 1,336,432 $ 1,132,927
Cost of sales   254,484     218,524     964,841     808,901
Gross profit 98,637 81,345 371,591 324,026
Operating expenses
Selling 17,805 15,909 67,105 58,450
Administrative 48,340 41,774 185,850 164,453
Amortization   5,740     7,067     25,419     26,857
Operating income 26,752 16,595 93,217 74,266
Other expense
Interest expense, net 5,483 5,925 20,496 17,381
Other   118     699     535     1,065
Income before income taxes 21,151 9,971 72,186 55,820
Income tax provision (benefit)   4,676     (822 )   17,438     14,680
Net income $ 16,475   $ 10,793   $ 54,748   $ 41,140
 
Other comprehensive (loss) income, net of tax:

Unrealized (loss) gain on cash flow hedge, net of tax benefit (provision) of $1,106 and $(236) for the three months ended December 31, 2018 and 2017, respectively, and $284 and $(206) for the twelve months ended December 31, 2018 and 2017, respectively

  (3,503 )   552     (1,050 )   507
Comprehensive income $ 12,972   $ 11,345   $ 53,698   $ 41,647
 
Basic net income per share $ 0.54   $ 0.34   $ 1.76   $ 1.30
Diluted net income per share $ 0.54   $ 0.34   $ 1.75   $ 1.30
Weighted average shares outstanding:
Basic 30,321,803 31,659,710 31,107,231 31,639,283
Diluted 30,396,412 31,860,978 31,229,558 31,756,363
 

 

   
INSTALLED BUILDING PRODUCTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share and per share amounts)

 

     
December 31, December 31,
2018 2017
ASSETS
Cash and cash equivalents $ 90,442 $ 62,510
Investments 10,060 30,053

Accounts receivable (less allowance for doubtful accounts of $5,085 and $4,805 at December 31, 2018 and 2017, respectively)

214,121 180,725
Inventories 61,162 48,346
Other current assets   35,760     33,308  
Total current assets 411,545 354,942
Property and equipment, net 90,117 81,075
Non-current assets
Goodwill 173,049 155,466
Intangibles, net 149,790 137,991
Other non-current assets   10,157     9,272  
Total non-current assets   332,996     302,729  
Total assets $ 834,658   $ 738,746  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt $ 22,642 $ 16,650
Current maturities of capital lease obligations 4,806 5,666
Accounts payable 96,949 87,425
Accrued compensation 27,923 25,399
Other current liabilities   29,366     24,666  
Total current liabilities 181,686 159,806
Long-term debt 432,182 330,927
Capital lease obligations, less current maturities 3,824 6,479
Deferred income taxes 6,695 6,444
Other long-term liabilities   27,773     24,562  
Total liabilities 652,160 528,218
Commitments and contingencies
Stockholders' equity

Preferred stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at December 31, 2018 and 2017, respectively

-

 

-

Common stock; $0.01 par value: 100,000,000 authorized, 32,723,972 and 32,524,934 issued and 29,915,611 and 31,862,146 shares outstanding at December 31, 2018 and 2017, respectively

327 325
Additional paid in capital 181,815 174,043
Retained earnings 105,212 48,434
Treasury stock; at cost: 2,808,361 and 662,788 shares at December 31, 2018 and 2017, respectively (104,425 ) (12,781 )
Accumulated other comprehensive income   (431 )   507  
Total stockholders' equity   182,498     210,528  
Total liabilities and stockholders' equity $ 834,658   $ 738,746  
 

 

   
INSTALLED BUILDING PRODUCTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
     

Twelve months ended December 31,

2018 2017
Net income $ 54,748 $ 41,140
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization of property and equipment 33,306 28,285
Amortization of intangibles 25,419 26,857
Amortization of deferred financing costs and debt discount 1,164 1,093
Provision for doubtful accounts 2,630 2,834
Write-off of debt issuance costs 1,164 2,113
Gain on sale of property and equipment (1,098 ) (492 )
Noncash stock compensation 7,839 6,592
Deferred income taxes 470 (6,160 )
Changes in assets and liabilities, excluding effects of acquisitions
Accounts receivable (30,166 ) (19,955 )
Inventories (15,717 ) (3,667 )
Other assets (4,552 ) (4,602 )
Accounts payable 8,146 6,303
Income taxes receivable / payable 10,273 (18,605 )
Other liabilities   3,007     7,036  
Net cash provided by operating activities   96,633     68,772  
Cash flows from investing activities
Purchases of investments (22,818 ) (30,194 )
Maturities of short term investments 42,782 -
Purchases of property and equipment (35,232 ) (31,668 )
Acquisitions of businesses, net of cash acquired of $0 and $247, respectively (57,740 ) (137,120 )
Proceeds from sale of property and equipment 1,958 959
Other   (3,019 )   (2,420 )
Net cash used in investing activities   (74,069 )   (200,443 )
Cash flows from financing activities
Proceeds from term loan under credit agreement applicable to respective period 100,000 300,000
Payments on term loan under credit agreement applicable to respective period (2,750 ) (97,750 )
Proceeds from delayed draw term loan under credit agreement applicable to respective period - 112,500
Payments on delayed draw term loan under credit agreement applicable to respective period - (125,000 )
Proceeds from vehicle and equipment notes payable 25,443 22,460
Debt issuance costs (1,992 ) (8,281 )
Principal payments on long-term debt (14,130 ) (10,002 )
Principal payments on capital lease obligations (5,604 ) (7,314 )
Acquisition-related obligations (3,954 ) (4,464 )
Repurchase of common stock (89,363 ) -
Surrender of common stock awards by employees (2,282 ) (562 )
Purchase of remaining interest in subsidiary   -     (1,888 )
Net cash provided by financing activities   5,368     179,699  
Net change in cash and cash equivalents 27,932 48,028
Cash and cash equivalents at beginning of period   62,510     14,482  
Cash and cash equivalents at end of period $ 90,442   $ 62,510  
Supplemental disclosures of cash flow information
Net cash paid during the period for:
Interest $ 20,075 $ 13,758
Income taxes, net of refunds - 38,887
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 2,208 4,440
Seller obligations in connection with acquisition of businesses 7,540 5,128
Unpaid purchases of property and equipment included in accounts payable 1,773 2,003
 

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 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 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 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.

       
INSTALLED BUILDING PRODUCTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED NET INCOME CALCULATIONS
(unaudited, in thousands, except share and per share amounts)
 
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.
 
Reconciliation of GAAP to Non-GAAP Measures
Adjusted Net Income Calculations
(unaudited, in thousands except for share and per share data)
 
Three months ended December 31,   Twelve months ended December 31,
2018 2017 2018 2017
 
Net income, as reported $ 16,475 $ 10,793 $ 54,748 $ 41,140
Adjustments for adjusted net income:
Writeoff of capitalized loan costs - 1,791 1,164 2,113
Share based compensation expense 1,756 1,842 7,846 6,591
Acquisition related expenses 800 928 2,674 3,201
Financial Wellness Program 1 - 2,206 604 2,206
Branch start-up costs 2 214 - 843 -
Retirement expense - - 824 -
Legal settlement 200 - 990 -
Gain on sale of assets (466 ) - (831 ) -
Amortization expense 3 5,740 7,067 25,419 26,857
Tax impact of adjusted items at normalized tax rate 4 (2,086 ) (4,648 ) (10,002 ) (13,765 )
2017 Tax Cuts and Jobs Act - Release of deferred tax liability 5   (810 )   (3,386 )   (810 )   (3,386 )
Adjusted net income $ 21,823   $ 16,593   $ 83,469   $ 64,957  
 
Weighted average shares outstanding (diluted) 30,396,412 31,860,978 31,229,558 31,756,363
 
Diluted net income per share, as reported $ 0.54 $ 0.34 $ 1.75 $ 1.30
Adjustments for adjusted net income, net of tax impact, per diluted share 6   0.18     0.18     0.92     0.75  
Diluted adjusted net income per share $ 0.72   $ 0.52   $ 2.67   $ 2.05  
1 Employer match upon completion of the program, net of waived executive bonuses
2 Addback of costs related to organic branch expansion for Alpha locations
3 Addback of all non-cash amortization resulting from business combinations
4 Normalized effective tax rate of 25.3% applied to 2018 period, normalized rate of 33.6% applied to 2017 period
5 Tax impacts on deferred tax and uncertain tax positions recorded as a result of the 2017 Tax Cuts and Jobs Act
6 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,
2018   2017 2018   2017
 
Gross profit $ 98,637 $ 81,345 $ 371,591 $ 324,026
Share based compensation expense 96 458 846 965
Financial Wellness Program 1 - 2,412 711 2,412
Branch start-up costs 214 - 843 -
Gain on sale of assets   (466 )   -     (831 )   -  
Adjusted gross profit $ 98,481   $ 84,215   $ 373,160   $ 327,403  
 
Adjusted gross profit - % Total Revenue 27.9 % 28.1 % 27.9 % 28.9 %

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,
2018   2017 2018   2017
 
Selling expense $ 17,805 $ 15,909 $ 67,105 $ 58,450
Administrative expense   48,340     41,774     185,850     164,453  
Selling and Administrative $ 66,145   $ 57,683   $ 252,955   $ 222,903  
 
Share based compensation expense 1,660 1,384 7,000 5,626
Acquisition related expenses 800 928 2,674 3,201
Financial Wellness Program 1 - (206 ) (107 ) (206 )
Retirement expense - - 824 -
Legal settlement   200     -     990     -  
Adjusted Selling and Administrative $ 63,485   $ 55,577   $ 241,574   $ 214,282  
 
Adj. Selling and Administrative - % Total Revenue 18.0 % 18.5 % 18.1 % 18.9 %
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,
2018   2017 2018   2017
Adjusted EBITDA:
 
Net income (GAAP) $ 16,475 $ 10,793 $ 54,748 $ 41,140
Interest expense 5,483 5,925 20,496 17,381
Provision for income taxes 4,676 (822 ) 17,438 14,680
Depreciation and amortization   14,480     14,619     58,725     55,141  
EBITDA   41,114     30,515     151,407     128,342  
 
Acquisition related expenses 800 928 2,674 3,201
Share based compensation expense 1,756 1,842 7,846 6,591
Financial Wellness Program - 2,206 604 2,206
Write-off of uncertain tax position - 713 - 713
Branch start-up costs 214 - 843 -
Retirement expense - - 824 -
Legal settlement 200 - 990 -
Gain on sale of assets   (466 )   -     (831 )   -  
Adjusted EBITDA $ 43,618   $ 36,204   $ 164,357   $ 141,053  
 
Adjusted EBITDA margin 12.4 % 12.1 % 12.3 % 12.5 %
 
   
INSTALLED BUILDING PRODUCTS, INC.
SUPPLEMENTARY TABLE
(unaudited)
 
Three months ended December 31,   Twelve months ended December 31,
2018   2017 2018   2017
 

Period-over-period Growth

Sales Growth 17.8% 28.2% 18.0% 31.3%
Same Branch Sales Growth 11.1% 9.4% 11.5% 9.8%
 
Single-Family Sales Growth 16.6% 18.2% 20.0% 17.6%
Single-Family Same Branch Sales Growth 8.6% 9.8% 12.1% 7.9%
 
Residential Sales Growth 18.1% 21.3% 18.4% 24.6%
Residential Same Branch Sales Growth 10.9% 11.1% 11.4% 11.3%
 

U.S. Housing Market1

Total Completions Growth -5.3% 5.0% 3.4% 8.8%
Single-Family Completions Growth -1.1% 5.4% 6.1% 7.7%
 

Same Branch Sales Growth 2

Volume Growth 3.1% 5.9% 6.1% 5.8%
Price/Mix Growth 7.8% 3.5% 5.4% 4.0%
Alpha Sales Growth 13.0% N/A 11.5% N/A
1 U.S. Census Bureau data, as revised
2 Same branch volume and price/mix growth excludes Alpha sales growth
 
   
INSTALLED BUILDING PRODUCTS, INC.
INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS
(unaudited, in thousands)
 
Three months ended December 31, Twelve months ended December 31,
2018   % Total   2017   % Total 2018   % Total   2017   % Total
Revenue Increase
Same Branch $ 33,276 62.5% $ 21,959 33.3% $ 129,969 63.9% $ 84,245 31.2%
Acquired   19,976 37.5%   43,933 66.7%   73,536 36.1%   185,701 68.8%
Total $ 53,252 100.0% $ 65,892 100.0% $ 203,505 100.0% $ 269,946 100.0%
 
 
 
Adj EBITDA Adj EBITDA Adj EBITDA Adj EBITDA
Contribution Contribution Contribution Contribution
Adjusted EBITDA
Same Branch $ 5,152 15.5% $ 1,849 8.4% $ 15,434 11.9% $ 11,598 13.8%
Acquired   2,262 11.3%   4,558 10.4%   7,870 10.7%   24,627 13.3%
Total $ 7,414 13.9% $ 6,407 9.7% $ 23,304 11.5% $ 36,225 13.4%

Contacts

Investor Relations:
614-221-9944
investorrelations@installed.net

Contacts

Investor Relations:
614-221-9944
investorrelations@installed.net