COLUMBUS, Ohio--(BUSINESS WIRE)--

Installed Building Products, Inc. (the "Company" or "IBP") (NYSE: IBP), an industry-leading installer of insulation and complementary building products, today announced results for the first quarter ended March 31, 2024.

First Quarter 2024 Highlights (Comparisons are to Prior Year Period)

• Net revenue increased 5.1% to $692.9 million
  • Installation revenue increased 5.3% to $655.9 million, as single-family and multi-family sales growth combined with sales from IBP's recent acquisitions
  • Other revenue, which includes IBP’s manufacturing and distribution operations, increased to $37.0 million from $36.6 million
• Net income increased 13.4% to a first quarter record of $55.9 million
• Adjusted EBITDA* increased 11.6% to a first quarter record of $117.3 million
• Net income per diluted share increased 13.2% to a first quarter record of $1.97
• Adjusted net income per diluted share* increased 14.9% to a first quarter record of $2.47
• At March 31, 2024, IBP had $399.9 million in cash and cash equivalents
• Repriced Term Loan B facility, reducing the borrowing cost and extending the maturity date to 2031
• Declared first quarter dividend of $0.35 per share which was paid to shareholders on March 31, 2024
• Declared annual variable dividend of $1.60 per share which was paid to shareholders on March 31, 2024

Recent Developments

• IBP’s Board of Directors declared the second quarter regular cash dividend of $0.35 per share
• In April 2024, acquired Trade Partners, Inc., a diverse installer of building products generating annual revenue of over $6 million

“Our first quarter financial results reflect improvements in our single-family end-market and the continuation of healthy sales growth in our multi-family end market. We believe our customers are committed to building single-family homes in the current macroeconomic and industry backdrop. The long-term opportunities in our residential and commercial end markets remain attractive in our opinion,” stated Jeff Edwards, Chairman and Chief Executive Officer.

“Margins during the quarter continued to be supported by strong execution and a strategic priority to focus on realizing the value of our services over volume. As a result, we achieved record first quarter net profit margin and adjusted EBITDA margin for the three months ended March 31, 2024. With our strong balance sheet and cash flow generation, acquisitions remain our top priority for asset allocation followed by distributing cash dividends, and opportunistically repurchasing our common stock,” continued Mr. Edwards.

“I am proud of our team’s ability to continually raise the bar and focus on what they can control within the business. The outlook for 2024 remains promising and we aim to continue to create significant value for our stakeholders over the long term,” concluded Mr. Edwards.

Acquisition Update

IBP continues to prioritize profitable growth through its proven strategy of acquiring well-run installers of insulation and complementary building products.

During the 2024 first quarter and in April 2024, IBP completed the following acquisitions:

• In March 2024, IBP acquired First State Building Products, LLC, a Delaware-based installer of fireplaces into new single-family construction projects with annual revenue of approximately $5 million.
• In April 2024, IBP acquired Trade Partners, Inc., a North Carolina-based installer of insulation and numerous after paint products including, shower doors, closet shelving, mirrors, gutters, window blinds with single-family and multifamily customers generating annual revenue of over $6 million.

2024 Second Quarter Cash Dividend

IBP’s Board of Directors has approved the Company’s quarterly cash dividend of $0.35 per share, payable on June 30, 2024, to stockholders of record on June 15, 2024. The second quarter regular cash dividend represents a 6% increase from last year’s second quarter cash dividend payment.

First Quarter 2024 Results Overview

For the first quarter of 2024, net revenue was $692.9 million, an increase of 5.1% from $659.3 million for the first quarter of 2023. On a consolidated same branch basis, net revenue increased 2.9% from the prior year quarter, which was primarily attributable to a 3.8% increase in price/mix partially offset by a 1.4% decline in IBP's reported job volume. Residential sales growth within the Company's Installation segment was 3.8% on a same branch basis in the quarter, as a 1.5% improvement in single-family same branch sales combined with a 13.0% increase in multi-family same branch sales. According to the U.S. Census Bureau, the number of single-family housing units under construction across the industry fell 6% from the prior year quarter while multi-family units were up 1% relative to last year. Commercial same branch sales were down 0.8% from the prior year quarter and total commercial sales increased 2.8%, which includes the Company's recent acquisitions.

Gross profit improved 11.5% to $234.5 million from $210.4 million in the prior year quarter. Gross profit and adjusted gross profit* as a percent of total revenue were 33.8% and 33.9%, respectively, up from 31.9% for both gross profit and adjusted gross profit in the same period last year. Adjusted gross profit primarily adjusts for the Company’s share-based compensation expense.

Selling and administrative expense, as a percent of net revenue, was 19.6% compared to 18.5% in the prior year quarter. Adjusted selling and administrative expense*, as a percent of net revenue, was 19.0% compared to 17.9% in the prior year quarter.

Net income was $55.9 million, or $1.97 per diluted share, compared to $49.3 million, or $1.74 per diluted share in the prior year quarter. Net profit margin for the first quarter was 8.1% compared to 7.5% in the prior year quarter. Adjusted net income* was $70.2 million, or $2.47 per diluted share, compared to $60.7 million, or $2.15 per diluted share in the prior year quarter. Adjusted net income margin* for the first quarter was 10.1% compared to 9.2% in the prior year quarter. Adjusted net income accounts for the impact of non-core items in both periods, including an addback for non-cash amortization expense related to acquisitions.

EBITDA* was $112.8 million, an 11.6% increase from $101.1 million in the prior year quarter as a result of improved margins of 16.3% and 15.3%, respectively. Adjusted EBITDA* was $117.3 million, an 11.6% increase from $105.1 million in the prior year quarter, representing adjusted EBITDA margins* of 16.9% and 15.9%, respectively.

Conference Call and Webcast

The Company will host a conference call and webcast on May 9, 2024 at 10:00 a.m. Eastern Time to discuss these results. To participate in the call, please dial 800-274-8461 (domestic) or 203-518-9814 (international). The live webcast will be available at in the investor relations section. A replay of the conference call will be available through June 9, 2024, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 1155140.

About Installed Building Products

Installed Building Products, Inc. is one of the nation's largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely 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 in all 48 continental states and the District of Columbia from its national network of over 250 branch locations.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the housing market and the commercial market, our operations, industry and economic conditions, our financial and business model, payment of dividends, the demand for our services and product offerings, expansion of our national footprint and end markets, diversification of our products, our ability to grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions and the expected amount of acquired revenue, our ability to improve sales and profitability, and expectations for demand for our services and our earnings. 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; increases in mortgage interest rates and rising home prices; inflation and interest rates; the material price and supply environment; the timing of increases in our selling prices; the risk that the Company may reduce, suspend or eliminate dividend payments in the future; 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, 2023, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. In addition, any future declaration of dividends will be subject to the final determination of our Board of Directors. 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 EBITDA, 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 EBITDA, 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.

Reconciliation of Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Gross Profit and Adjusted Selling and Administrative Expense measure performance by adjusting GAAP net income, EBITDA, 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.

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