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TopBuild Reports Third Quarter Results
Source: Nasdaq GlobeNewswire / 05 Nov 2024 05:45:01 America/Chicago
Third quarter sales of $1.37 billion driven by 4.2% Installation growth and 5.1% Specialty Distribution growth
Delivered gross margin of 30.7% and adjusted EBITDA margin of 20.8%
Narrows 2024 guidance to $5.3 to $5.35 billion in revenue and $1.055 to $1.085 billion in adjusted EBITDA
DAYTONA BEACH, Fla., Nov. 05, 2024 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD) a leading installer and specialty distributor of insulation and building material products to the construction industry in the United States and Canada today reported results for the third quarter ended September 30, 2024.
“We delivered a strong performance with third quarter sales of $1.37 billion and adjusted EBITDA of $285 million, achieving the highest level of quarterly sales and profit in our history,” said Robert Buck, President and Chief Executive Officer. “Our ongoing focus on growth and profitability enabled us to drive Installation sales growth of 4.2% and Specialty Distribution sales growth of 5.1% in a macro environment that was largely unchanged from the second quarter. Adjusted EBITDA margin of 20.8% improved by 50 basis points excluding the benefit from higher-than-normal multi-family and commercial margins in the third quarter of 2023.1
“We are narrowing our 2024 outlook based on our assumptions for a continued uneven housing environment and the ongoing delay of certain commercial/industrial projects. We remain optimistic about our business with strengthening requirements for energy efficiency, the U.S. housing supply deficit, increasing household formations, and the prospect of lower interest rates driving growth.
“Our priority for our strong free cash flow continues to be acquisitions and our M&A pipeline is very healthy. In the quarter we also returned capital to shareholders, with share repurchases totaling $413.9 million or approximately 1.07 million shares, reinforcing our confidence in our outlook and ability to deploy capital successfully and generate strong returns,” concluded Mr. Buck.
1 The Company noted that its results for the third quarter of 2023 included an estimated $15 million margin benefit related to certain multi-family/commercial business.
Financial Highlights
(comparisons are to the periods ended September 30, 2023)Three Months Ended September 30, 2024 Reported Adjusted ($ in thousands) 2024 2023 2024 2023 Sales $ 1,373,268 $ 1,326,120 $ 1,373,268 $ 1,326,120 Gross Profit 421,813 420,690 421,813 420,690 Gross Margin 30.7 % 31.7 % 30.7 % 31.7 % SG&A 177,820 183,198 175,888 174,758 SG&A as % of Revenue 12.9 % 13.8 % 12.8 % 13.2 % Operating Profit 243,993 237,492 245,925 245,932 Operating Margin 17.8 % 17.9 % 17.9 % 18.5 % Net Income 168,960 167,601 170,075 172,507 Net Income per diluted share $ 5.65 $ 5.27 $ 5.68 $ 5.43 EBITDA $ 285,057 $ 283,690 EBITDA Margin 20.8 % 21.4 % Nine Months Ended September 30, 2024 Reported Adjusted ($ in thousands) 2024 2023 2024 2023 Sales $ 4,017,597 $ 3,908,620 $ 4,017,597 $ 3,908,620 Gross Profit 1,232,885 1,212,704 1,232,885 1,212,704 Gross Margin 30.7 % 31.0 % 30.7 % 31.0 % SG&A 563,992 538,679 534,497 524,480 SG&A as % of Revenue 14.0 % 13.8 % 13.3 % 13.4 % Operating Profit 668,893 674,025 698,388 688,224 Operating Margin 16.6 % 17.2 % 17.4 % 17.6 % Net Income 472,064 467,870 493,997 477,551 Net Income per diluted share $ 15.19 $ 14.74 $ 15.89 $ 15.04 EBITDA $ 816,570 $ 797,520 EBITDA Margin 20.3 % 20.4 % Sales Drivers (comparisons are to the periods ended September 30, 2023) Three Months Ended September 30, 2024 Installation Specialty
DistributionTopBuild,
net of elimsSales (in millions) $ 856 $ 600 $ 1,373 Sales Drivers Volume 0.5 % 3.0 % 0.4 % Price 1.1 % 0.8 % 1.0 % M&A 2.9 % 1.4 % 2.4 % Dispositions (0.2 %) (0.1 %) Total Sales Change 4.2 % 5.1 % 3.6 % Nine Months Ended September 30, 2024 Installation Specialty
DistributionTopBuild,
net of elimsSales (in millions) $ 2,506 $ 1,739 $ 4,018 Sales Drivers Volume 0.6 % (0.2 %) (0.5 %) Price 1.2 % 1.2 % 1.2 % M&A 3.4 % 1.0 % 2.5 % Dispositions (0.6 %) (0.4 %) Total Sales Change 4.5 % 2.1 % 2.8 % Segment Profitability (comparisons are to the periods ended September 30, 2023) Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024 ($ in thousands) Installation Specialty
DistributionInstallation Specialty
DistributionOperating Profit $ 172,243 $ 94,911 $ 499,717 $ 261,862 Change (1.7 %) 7.5 % 1.1 % 5.8 % Operating Margin 20.1 % 15.8 % 19.9 % 15.1 % Adj. Operating Profit $ 172,274 $ 95,109 $ 500,081 $ 261,320 Change (2.7 %) 7.7 % 0.7 % 5.4 % Adj. Operating Margin 20.1 % 15.8 % 20.0 % 15.0 % Adj. EBITDA $ 191,382 $ 110,600 $ 556,816 $ 307,507 Change (1.8 %) 6.5 % 1.5 % 4.8 % Adj. EBITDA Margin 22.3 % 18.4 % 22.2 % 17.7 % Capital Allocation
2024 Acquisitions
Year to date, TopBuild has completed or announced a total of 7 acquisitions which are expected to generate approximately $118 million in annual revenue.On October 30, the Company announced the acquisition of Shannon Global Energy Services, a leading thermal acoustic blanket insulation fabricator serving the commercial and industrial end markets. The acquisition is expected to close in the fourth quarter.
Company Annual Revenue
($ in millions)Month Closed Brabble Insulation, Inc. (I) $ 5.2 February Morris Black & Sons, Inc. (I) 3.8 March Pest Control Insulation LLC (D) 25.4 March Green Space Insulation LLC (I) 6.0 April Insulation Works, Inc. (I) 28.0 May Texas Insulation (I) 38.9 May Shannon Global Energy Services (D) 10.8 TBD Total $ 118.1 I = Installation, D = Specialty Distribution Share Repurchases
During the third quarter, TopBuild repurchased approximately 1.07 million shares totaling $413.9 million. On a year-to-date basis, the Company repurchased 2.3 million shares totaling $919.2 million, leaving $235.2 million remaining under the current authorization as of September 30, 2024.2024 Outlook2
TopBuild narrowed its full year 2024 outlook based on the Company’s assumptions for a continued uneven housing environment and the ongoing delay of certain commercial/industrial projects. The Company noted that it has not experienced an uptick in project cancellations.$ in millions 2024 Outlook Low High Sales $ 5,300.0 $ 5,350.0 Adjusted EBITDA* $ 1,055.0 $ 1,085.0 * See table for Adjusted EBITDA reconciliation 2 This outlook reflects management’s current view of present and future market conditions and is based on assumptions such as housing starts, general and administrative expenses, and interest rates. These targets do not include any effects related to potential acquisitions or divestitures that may occur after the date of this press release. A reconciliation of non-GAAP targets to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, the costs and expenses that may be incurred in the future and therefore, cannot be reasonably predicted. The effect of these excluded items may be significant. Factors that could cause actual long-term results to differ materially from TopBuild’s current expectations are discussed below and are also detailed in the Company’s most recent Annual Report on Form 10-K and subsequent SEC reports.
Conference Call
A conference call to discuss the third quarter 2024 financial results is scheduled for today, Tuesday, November 5, at 9:00 a.m. Eastern Time. The call may be accessed by dialing (877) 407-9037. A simultaneous webcast of the call, along with management’s formal remarks and a presentation, will be available on the Company’s website at www.topbuild.com shortly before the call begins.About TopBuild
TopBuild 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 250 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 Measures
Adjusted EBITDA, incremental EBITDA margin, adjusted EBITDA margin, the “adjusted” financial measures presented above, and figures presented on a “same branch basis” are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes that these non-GAAP financial measures, which are used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. We define same branch sales as sales from branches in operation for at least 12 full calendar months. Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under GAAP. Additional information may be found in the Company’s filings with the Securities and Exchange Commission which are available on TopBuild’s website under “SEC Filings” at www.topbuild.com.Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, and our plan to repurchase our common stock under stock repurchase transactions. These forward-looking statements 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.(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, 2024 2023 2024 2023 Net sales $ 1,373,268 $ 1,326,120 $ 4,017,597 $ 3,908,620 Cost of sales 951,455 905,430 2,784,712 2,695,916 Gross profit 421,813 420,690 1,232,885 1,212,704 Selling, general, and administrative expense 177,820 183,198 563,992 538,679 Operating profit 243,993 237,492 668,893 674,025 Other income (expense), net: Interest expense (18,449 ) (18,830 ) (55,811 ) (55,427 ) Other, net 2,355 6,015 24,987 12,542 Other expense, net (16,094 ) (12,815 ) (30,824 ) (42,885 ) Income before income taxes 227,899 224,677 638,069 631,140 Income tax expense (58,939 ) (57,075 ) (166,005 ) (163,270 ) Net income $ 168,960 $ 167,602 $ 472,064 $ 467,870 Net income per common share: Basic $ 5.68 $ 5.30 $ 15.28 $ 14.81 Diluted $ 5.65 $ 5.27 $ 15.19 $ 14.74 Weighted average shares outstanding: Basic 29,751,713 31,615,110 30,901,788 31,588,740 Diluted 29,925,400 31,788,812 31,083,857 31,744,856 TopBuild Corp. Condensed Consolidated Statements of Comprehensive Income (Unaudited) (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net income $ 168,960 $ 167,602 $ 472,064 $ 467,870 Other comprehensive income (loss): Foreign currency translation adjustment 2,463 (3,008 ) (3,464 ) 3,029 Comprehensive income $ 171,423 $ 164,594 $ 468,600 $ 470,899 TopBuild Corp. Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited) (dollars in thousands) As of September 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 257,342 $ 848,565 Receivables, net of an allowance for credit losses of $21,829 at September 30, 2024, and $23,948 at December 31, 2023 827,776 799,009 Inventories 392,208 364,731 Prepaid expenses and other current assets 43,813 36,939 Total current assets 1,521,139 2,049,244 Right of use assets 189,141 204,629 Property and equipment, net 270,022 264,487 Goodwill 2,092,315 2,042,568 Other intangible assets, net 565,440 591,058 Other assets 12,460 10,865 Total assets $ 4,650,517 $ 5,162,851 LIABILITIES Current liabilities: Accounts payable $ 461,478 $ 469,585 Current portion of long-term debt 45,137 47,039 Accrued liabilities 180,382 187,217 Short-term operating lease liabilities 67,509 65,780 Short-term finance lease liabilities 1,634 1,917 Total current liabilities 756,140 771,538 Long-term debt 1,341,439 1,373,028 Deferred tax liabilities, net 243,176 243,930 Long-term portion of insurance reserves 60,799 58,783 Long-term operating lease liabilities 130,299 146,213 Long-term finance lease liabilities 2,961 4,150 Other liabilities 1,434 1,554 Total liabilities 2,536,248 2,599,196 EQUITY 2,114,269 2,563,655 Total liabilities and equity $ 4,650,517 $ 5,162,851 As of September 30, 2024 2023 Other Financial Data Receivable days 49 51 Inventory days 38 36 Accounts payable days 58 60 Receivables, net plus inventories less accounts payable $ 758,506 $ 772,229 Receivables, net plus inventories less accounts payable as a percent of sales (TTM) † 14.1 % 14.6 % † 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, 2024 2023 Cash Flows Provided by (Used in) Operating Activities: Net income $ 472,064 $ 467,870 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 104,777 98,216 Share-based compensation 13,405 11,080 Loss on sale of assets 672 2,733 Amortization of debt issuance costs 2,161 2,161 Provision for bad debt expense 13,730 7,380 Provision for inventory obsolescence 6,713 3,617 Change in certain assets and liabilities, net of effects of businesses acquired: Receivables, net (30,294 ) (52,482 ) Inventories (30,916 ) 82,960 Prepaid expenses and other current assets (6,849 ) (3,267 ) Accounts payable (17,441 ) (21,361 ) Accrued liabilities (15,695 ) (9,027 ) Other, net (2,529 ) (1,402 ) Net cash provided by operating activities 509,798 588,478 Cash Flows Provided by (Used in) Investing Activities: Purchases of property and equipment (56,794 ) (48,076 ) Acquisition of businesses, net of cash acquired (88,460 ) (147,614 ) Proceeds from sale of assets 2,336 14,674 Net cash used in investing activities (142,918 ) (181,016 ) Cash Flows Provided by (Used in) Financing Activities: Repayment of long-term debt (35,651 ) (27,711 ) Taxes withheld and paid on employees' equity awards (6,088 ) (6,350 ) Exercise of stock options 3,224 2,489 Repurchase of shares of common stock (919,186 ) — Payment of contingent consideration — (300 ) Net cash used in financing activities (957,701 ) (31,872 ) Impact of exchange rate changes on cash (402 ) (47 ) Net (decrease) increase in cash and cash equivalents (591,223 ) 375,543 Cash and cash equivalents - Beginning of period 848,565 240,069 Cash and cash equivalents - End of period $ 257,342 $ 615,612 Supplemental disclosure of noncash activities: Leased assets obtained in exchange for new operating lease liabilities $ 35,718 $ 45,525 Accruals for property and equipment 227 305 Excise taxes capitalized to treasury stock 9,342 — TopBuild Corp. Segment Data (Unaudited) (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 Change 2024 2023 Change Installation Sales $ 856,350 $ 821,673 4.2 % $ 2,506,076 $ 2,397,818 4.5 % Operating profit, as reported $ 172,243 $ 175,218 $ 499,717 $ 494,394 Operating margin, as reported 20.1 % 21.3 % 19.9 % 20.6 % Rationalization charges — 1,882 — 1,882 Acquisition related costs 31 26 364 516 Operating profit, as adjusted $ 172,274 $ 177,126 $ 500,081 $ 496,792 Operating margin, as adjusted 20.1 % 21.6 % 20.0 % 20.7 % Share-based compensation 71 436 719 1,124 Depreciation and amortization 19,037 17,417 56,016 50,700 EBITDA, as adjusted $ 191,382 $ 194,979 (1.8 )% $ 556,816 $ 548,616 1.5 % EBITDA margin, as adjusted 22.3 % 23.7 % 22.2 % 22.9 % Specialty Distribution Sales $ 600,387 $ 571,009 5.1 % $ 1,739,007 $ 1,703,871 2.1 % Operating profit, as reported $ 94,911 $ 88,269 $ 261,862 $ 247,583 Operating margin, as reported 15.8 % 15.5 % 15.1 % 14.5 % Rationalization charges 194 — (556 ) — Acquisition related costs 4 10 14 350 Operating profit, as adjusted $ 95,109 $ 88,279 $ 261,320 $ 247,933 Operating margin, as adjusted 15.8 % 15.5 % 15.0 % 14.6 % Share-based compensation 374 434 1,187 987 Depreciation and amortization 15,117 15,102 45,000 44,414 EBITDA, as adjusted $ 110,600 $ 103,815 6.5 % $ 307,507 $ 293,334 4.8 % EBITDA margin, as adjusted 18.4 % 18.2 % 17.7 % 17.2 % TopBuild Corp. Adjusted EBITDA (Unaudited) (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 Change 2024 2023 Change Total net sales Sales before eliminations $ 1,456,737 $ 1,392,682 $ 4,245,083 $ 4,101,689 Intercompany eliminations (83,469 ) (66,562 ) (227,486 ) (193,069 ) Net sales after eliminations $ 1,373,268 $ 1,326,120 3.6 % $ 4,017,597 $ 3,908,620 2.8 % Operating profit, as reported - segments $ 267,154 $ 263,487 $ 761,579 $ 741,977 General corporate expense, net (9,685 ) (14,494 ) (55,610 ) (35,280 ) Intercompany eliminations (13,476 ) (11,501 ) (37,076 ) (32,672 ) Operating profit, as reported $ 243,993 $ 237,492 $ 668,893 $ 674,025 Operating margin, as reported 17.8 % 17.9 % 16.6 % 17.2 % Rationalization charges 485 1,882 (7 ) 1,882 Acquisition related costs † 1,447 6,558 6,502 12,317 Acquisition termination fee — — 23,000 — Operating profit, as adjusted $ 245,925 $ 245,932 $ 698,388 $ 688,224 Operating margin, as adjusted 17.9 % 18.5 % 17.4 % 17.6 % Share-based compensation 3,646 4,194 13,405 11,080 Depreciation and amortization 35,486 33,564 104,777 98,216 EBITDA, as adjusted $ 285,057 $ 283,690 0.5 % $ 816,570 $ 797,520 2.4 % EBITDA margin, as adjusted 20.8 % 21.4 % 20.3 % 20.4 % Sales change period over period 47,148 108,977 EBITDA, as adjusted, change period over period 1,367 19,050 Incremental EBITDA, as adjusted, as a percentage of change in sales 2.9 % 17.5 % † Acquisition related costs include corporate level adjustments as well as segment operating adjustments TopBuild Corp. Same Branch and Acquisition Metrics (Unaudited) (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net sales Same branch: Installation $ 832,780 $ 819,702 $ 2,424,965 $ 2,382,440 Specialty Distribution 592,641 571,009 1,721,267 1,703,871 Eliminations (83,469 ) (66,562 ) (227,486 ) (193,069 ) Total same branch $ 1,341,952 $ 1,324,149 $ 3,918,746 $ 3,893,242 Acquisitions (a): Installation $ 23,570 $ — $ 81,111 $ — Specialty Distribution 7,746 — 17,740 — Total acquisitions 31,316 — 98,851 — Dispositions (b): Installation $ — $ 1,971 $ — $ 15,378 Total dispositions — 1,971 — 15,378 Total net sales $ 1,373,268 $ 1,326,120 $ 4,017,597 $ 3,908,620 EBITDA, as adjusted Same branch $ 280,333 $ 283,175 $ 801,535 $ 794,480 Acquisitions (a) 4,724 — 15,035 — Dispositions (b) — 515 — 3,040 Total $ 285,057 $ 283,690 $ 816,570 $ 797,520 EBITDA, as adjusted, as a percentage of sales Same branch (c) 20.9 % 20.5 % Acquisitions (d) 15.1 % 15.2 % Total (e) 20.8 % 21.4 % 20.3 % 20.4 % As Adjusted Incremental EBITDA, as a percentage of change in sales Same branch (f) NM 27.7 % Acquisitions (d) 15.1 % 15.2 % Total (g) 2.9 % 17.5 % (a) Represents current year impact of acquisitions in their first twelve months (b) Represents operating results in prior period previously classified as same branch (c) Same branch metric, as adjusted, as a percentage of same branch sales (d) Acquired metric, as adjusted, as a percentage of acquired sales (e) Total EBITDA, as adjusted, as a percentage of total sales (f) Change in same branch EBITDA, as adjusted, as a percentage of change in same branch sales (g) Change in total EBITDA, as adjusted, as a percentage of change in total sales NM Not Meaningful 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, 2024 2023 2024 2023 Gross Profit Reconciliation Net sales $ 1,373,268 $ 1,326,120 $ 4,017,597 $ 3,908,620 Gross profit, as reported $ 421,813 $ 420,690 $ 1,232,885 $ 1,212,704 Acquisition related costs — — — — Gross profit, as adjusted $ 421,813 $ 420,690 $ 1,232,885 $ 1,212,704 Gross margin, as reported 30.7 % 31.7 % 30.7 % 31.0 % Gross margin, as adjusted 30.7 % 31.7 % 30.7 % 31.0 % Selling, General and Administrative Expense Reconciliation Selling, general, and administrative expense, as reported $ 177,820 $ 183,198 $ 563,992 $ 538,679 Rationalization charges 485 1,882 (7 ) 1,882 Acquisition related costs 1,447 6,558 6,502 12,317 Acquisition termination fee — — 23,000 — Selling, general, and administrative expense, as adjusted $ 175,888 $ 174,758 $ 534,497 $ 524,480 Operating Profit Reconciliation Operating profit, as reported $ 243,993 $ 237,492 $ 668,893 $ 674,025 Rationalization charges 485 1,882 (7 ) 1,882 Acquisition related costs 1,447 6,558 6,502 12,317 Acquisition termination fee — — 23,000 — Operating profit, as adjusted $ 245,925 $ 245,932 $ 698,388 $ 688,224 Operating margin, as reported 17.8 % 17.9 % 16.6 % 17.2 % Operating margin, as adjusted 17.9 % 18.5 % 17.4 % 17.6 % Income Per Common Share Reconciliation Income before income taxes, as reported $ 227,899 $ 224,677 $ 638,069 $ 631,140 Rationalization charges 485 1,882 (7 ) 1,882 Acquisition related costs 1,447 6,558 6,502 12,317 Acquisition termination fee — — 23,000 — Income before income taxes, as adjusted 229,831 233,117 667,564 645,339 Tax rate at 26.0% (59,756 ) (60,610 ) (173,567 ) (167,788 ) Income, as adjusted $ 170,075 $ 172,507 $ 493,997 $ 477,551 Income per common share, as adjusted $ 5.68 $ 5.43 $ 15.89 $ 15.04 Weighted average diluted common shares outstanding 29,925,400 31,788,812 31,083,857 31,744,856 TopBuild Corp. Reconciliation of Adjusted EBITDA to Net Income (Unaudited) (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net income, as reported $ 168,960 $ 167,602 $ 472,064 $ 467,870 Adjustments to arrive at EBITDA, as adjusted: Interest expense and other, net 16,094 12,815 30,824 42,885 Income tax expense 58,939 57,075 166,005 163,270 Depreciation and amortization 35,486 33,564 104,777 98,216 Share-based compensation 3,646 4,194 13,405 11,080 Rationalization charges 485 1,882 (7 ) 1,882 Acquisition related costs 1,447 6,558 6,502 12,317 Acquisition termination fee — — 23,000 — EBITDA, as adjusted $ 285,057 $ 283,690 $ 816,570 $ 797,520 TopBuild Corp. Acquisition Adjusted Net Sales (Unaudited) (in thousands) 2023 2024 Trailing Twelve
Months EndedQ4 Q1 Q2 Q3 September 30, 2024 Net sales $ 1,286,074 $ 1,278,717 $ 1,365,612 $ 1,373,268 $ 5,303,671 Acquisitions proforma adjustment † 28,367 24,075 10,603 — 63,045 Net sales, acquisition adjusted $ 1,314,441 $ 1,302,792 $ 1,376,215 $ 1,373,268 $ 5,366,716 † Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches TopBuild Corp. 2024 Estimated Adjusted EBITDA Range (Unaudited) (in millions) Twelve Months Ending December 31, 2024 Low High Estimated net income, as reported $ 606.0 $ 634.0 Adjustments to arrive at estimated EBITDA, as adjusted: Interest expense and other, net 48.0 45.0 Income tax expense 213.0 222.0 Depreciation and amortization 142.0 140.0 Share-based compensation 17.0 16.0 Acquisition related costs & rationalization charges 29.0 28.0 Estimated EBITDA, as adjusted $ 1,055.0 $ 1,085.0 This press release was published by a CLEAR® Verified individual.
Investor Relations and Media Contact PI Aquino pi.aquino@topbuild.com 386-763-8801
