TopBuild Reports Second Quarter 2021 Results

• 29.1% increase in net sales
• 150 bps gross margin expansion, 140 bps on an adjusted basis
• 15.4% operating margin, 15.6% on an adjusted basis, up 270 bps
• $2.72 net income per diluted share, $2.76 on an adjusted basis
• 18.0% adjusted EBITDA margin, 18.4% on a same branch basis

Announces New $200 Million Share Repurchase Program

DAYTONA BEACH, Fla., Aug. 03, 2021 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD), a leading installer and distributor of insulation and building material products today reported results for the second quarter ended June 30, 2021.

Robert Buck, President and Chief Executive Officer, stated, “We are very pleased with our second quarter results. Top line growth was strong and operating margins expanded at both business segments. Our solid performance demonstrates our team’s ability to successfully manage pricing in conjunction with multiple material cost increases as well as productivity in a labor and material constrained market.

“Looking ahead, we expect the residential housing market to remain solid and the commercial market to continue to strengthen. Our focus will remain on driving profitable growth and creating long-term value for our stakeholders.”

Second Quarter Financial Highlights
(unless otherwise indicated, comparisons are to the quarter ended June 30, 2020)

• Net sales increased 29.1% to $834.3. million, 18.3% on a same branch basis, primarily driven by increases in both price and volume as well as M&A.
  
• Gross margin increased 150 basis points to 29.1%. On an adjusted basis, gross margin increased 140 basis points to 29.2%.
  
• Operating profit was $128.3 million, compared to operating profit of $80.5 million, a 59.5% improvement. On an adjusted basis, operating profit was $129.9 million, compared to $83.5 million, a 55.5% improvement.
  
• Operating margin was 15.4%, up 290 basis points. Adjusted operating margin improved 270 basis points to 15.6%.
  
• Net income was $90.4 million, or $2.72 per diluted share, compared to $55.5 million, or $1.67 per diluted share. Adjusted income was $91.6 million, or $2.76 per diluted share, compared to $55.7 million, or $1.68 per diluted share.
  
• Adjusted EBITDA was $149.8 million, compared to $107.8 million, a 39.1% increase, and adjusted EBITDA margin improved 130 basis points to 18.0%.
  
  
• At June 30, 2021, the Company had cash and cash equivalents of $261.7 million and availability under its revolving credit facility of $378.8 million for total liquidity of $640.5 million.
  

Six Month Financial Highlights
(unless otherwise indicated, comparisons are to six months ended June 30, 2020)

• Net sales increased 21.4% to $1,577.1 million. On a same branch basis, revenue increased 13.9% to $1,479.4 million.
  
• Gross margin expanded 110 basis points to 28.0%. On an adjusted basis, gross margin expanded 90 basis points to 28.0%.
  
• Operating profit was $224.2 million, compared to operating profit of $150.4 million, a 49.0% improvement. On an adjusted basis, operating profit was $227.1 million, compared to $153.8 million, a 47.7% improvement.
  
• Operating margin was 14.2%, and 14.4% on an adjusted basis, a 260-basis point improvement.
  
• Net income was $150.2 million, or $4.53 per diluted share, compared to $106.3 million, or $3.18 per diluted share. Adjusted income was $158.7 million, or $4.78 per diluted share, compared to $101.6 million, or $3.04 per diluted share.
  
  
• Adjusted EBITDA was $265.7 million, compared to $196.1 million, a 35.5% increase. Adjusted EBITDA margin was 16.8%, a 170-basis point improvement.
  

Operating Segment Highlights ($ in 000s)
(comparisons are to the period ended June 30, 2020)

TruTeam	3 Months Ended 6/30/21	6 Months Ended 6/30/21		Service Partners	3 Months Ended 6/30/21	6 Months Ended 6/30/21
Sales	$605,625	$1,138,378		Sales	$273,364	$524,965
Change				Change
Volume	10.4%	7.7%		Volume	14.3%	14.0%
Price	5.0%	3.0%		Price	10.3%	7.0%
M&A	14.4%	10.1%		M&A	1.8%	0.9%
Total Change	29.8%	20.8%		Total Change	26.4%	21.9%
Operating Margin	16.4%	15.2%		Operating Margin	15.7%	14.9%
Change	150 bps	140 bps		Change	450 bps	360 bps
Adj. Operating Margin	16.6%	15.3%		Adj. Operating Margin	15.7%	14.9%
Change	140 bps	130 bps		Change	410 bps	330 bps

Capital Allocation

Acquisitions
Three companies were acquired in the second quarter, American Building Systems, Creative Conservation and RJ Insulation. Combined, they are expected to generate approximately $155 million of revenue on a pro forma full year basis. Year-to-date, the Company has acquired five companies which are expected to generate approximately $221 million of revenue on a pro forma, full year basis.

“M&A remains our number one capital allocation priority. Our prospects center around our core of insulation and related adjacent products that will further strengthen our industry leadership position. Our pipeline is robust, and we expect to stay very busy on this front through the remainder of the year,” added Buck.

“Our strong balance sheet and cash flows also provide us with the flexibility to continue our history of share repurchases, and we are pleased to announce another $200 million share repurchase program.”

Share Repurchase Program
In the second quarter, the Company repurchased 73,747 shares at an average price of $192.30 per share. Year-to-date, the Company has repurchased 123,031 shares at an average price of $195.38 per share.

The Company also announced that its Board of Directors has approved an additional share repurchase program whereby the Company may purchase up to $200 million of its common stock. Repurchases will be made from cash on hand as well as from a portion of the free cash flow expected to be generated from the business. The program may be suspended or discontinued at any time.

2021 Outlook

Sales and Adjusted EBITDA Guidance ⁽¹⁾

($ in millions)
2021	Low		High
Sales	$	3,290	$	3,370
Adjusted EBITDA*	$	565	$	590

*See table for adjusted EBITDA reconciliation.

Assumptions ⁽¹⁾

($ in millions)
2021	Low		High
Housing Starts		1,475		1,525
Estimated net income	$	339.5	$	363.6
Interest Expense and other, net	$	24.7	$	22.2
Income tax expense	$	119.3	$	127.8
Depreciation and Amortization	$	70.6	$	67.5
Share based compensation	$	10.9	$	8.9

⁽¹⁾ This guidance and long-term targets reflect management’s current view of present and future market conditions and are based on assumptions such as housing starts, general and administrative expenses, weighted average diluted shares outstanding and interest rates. These targets do not include any effects related to potential acquisitions or divestitures that may occur after the date of this press release. 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 2020 Annual Report on Form 10-K and subsequent SEC reports.

Conference Call
A conference call to discuss second quarter 2021 financial results is scheduled for today, Tuesday, August 3, at 9:00 a.m. Eastern time. The call may be accessed by dialing (877) 407-9037. The conference call will be webcast simultaneously on the Company’s website at www.topbuild.com.

About TopBuild
TopBuild Corp., a Fortune 1000 Company headquartered in Daytona Beach, Florida, is a leading installer and distributor of insulation and building material products to the U.S. construction industry. We provide insulation and building material services nationwide through TruTeam^®, which has approximately 235 branches, and through Service Partners^® which distributes insulation and building material products from approximately 75 branches. We leverage our national footprint to gain economies of scale while capitalizing on our local market presence to forge strong relationships with our customers. 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 at www.topbuild.com.

Safe Harbor Statement
Statements contained herein reflect our views about future periods, including our future plans and performance, constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995.  Forward-looking statements can be identified by words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” 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.  We caution you against unduly relying on any of these forward-looking statements.  Our future performance may be affected by the duration and impact of the COVID-19 pandemic on the United States economy, specifically with respect to residential and commercial construction; our ability to continue operations in markets affected by the COVID-19 pandemic and our ability to collect receivables from our customers; our reliance on residential new construction, residential repair/remodel, and commercial construction; our reliance on third-party suppliers and manufacturers; our ability to attract, develop, and retain talented personnel and our sales and labor force; our ability to maintain consistent practices across our locations; and our ability to maintain our competitive position.  We discuss the material risks we face under the caption entitled “Risk Factors” in our Annual Report for the year ended December 31, 2020, as filed with the SEC on February 23, 2021, as well as under the caption entitled “Risk Factors” in subsequent reports that we file with the SEC.  Our forward-looking statements in this filing speak only as of the date of this filing.  Factors or events that could cause our actual results to differ may emerge from time to time and it is not possible for us to predict all of them.  Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise.  The Company believes that the non-GAAP performance measures and ratios that are contained herein, which management uses to manage our business, provide users of this financial information with additional meaningful comparisons between current results and results in our prior periods.  Non-GAAP performance measures and ratios should be viewed in addition, and not as an alternative, to the Company's reported results under accounting principles generally accepted in the United States.  Additional information about the Company is contained in the Company's filings with the SEC and is available on TopBuild's website at www.topbuild.com.

Investor Relations and Media Contact
Tabitha Zane
tabitha.zane@topbuild.com
386-763-8801

(tables follow)

TopBuild Corp.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per common share amounts)
		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
Net sales		$	834,255			$	646,099			$	1,577,053			$	1,299,327
Cost of sales			591,075				468,045				1,136,114				949,316
Gross profit			243,180				178,054				440,939				350,011
Selling, general, and administrative expense			114,894				97,600				216,767				199,568
Operating profit			128,286				80,454				224,172				150,443
Other income (expense), net:
Interest expense			(6,105	)			(8,277	)			(12,707	)			(17,018	)
Loss on extinguishment of debt			—				—				(13,862	)			(233	)
Other, net			66				89				144				561
Other expense, net			(6,039	)			(8,188	)			(26,425	)			(16,690	)
Income before income taxes			122,247				72,266				197,747				133,753
Income tax expense			(31,867	)			(16,770	)			(47,525	)			(27,485	)
Net income		$	90,380			$	55,496			$	150,222			$	106,268
Net income per common share:
Basic		$	2.75			$	1.69			$	4.57			$	3.22
Diluted		$	2.72			$	1.67			$	4.53			$	3.18
Weighted average shares outstanding:
Basic			32,865,303				32,867,842				32,846,016				33,018,148
Diluted			33,177,435				33,202,423				33,190,107				33,401,135

TopBuild Corp.
Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited)
(dollars in thousands)
		As of
		June 30,				December 31,
ASSETS		2021				2020
Current assets:
Cash and cash equivalents		$	261,739			$	330,007
Receivables, net of an allowance for credit losses of $8,337 at June 30, 2021, and $6,926 at December 31, 2020			491,625				427,340
Inventories, net			178,576				161,369
Prepaid expenses and other current assets			20,523				17,689
Total current assets			952,463				936,405
Right of use assets			100,558				83,490
Property and equipment, net			199,982				180,053
Goodwill			1,494,200				1,410,685
Other intangible assets, net			237,573				190,605
Deferred tax assets, net			2,729				2,728
Other assets			11,213				11,317
Total assets		$	2,998,718			$	2,815,283
LIABILITIES
Current liabilities:
Accounts payable		$	356,570			$	331,710
Current portion of long-term debt			23,476				23,326
Accrued liabilities			126,517				107,949
Short-term lease liabilities			36,673				33,492
Total current liabilities			543,236				496,477
Long-term debt			680,999				683,396
Deferred tax liabilities, net			168,091				168,568
Long-term portion of insurance reserves			49,456				50,657
Long-term lease liabilities			68,457				53,749
Other liabilities			13,663				13,642
Total liabilities			1,523,902				1,466,489
EQUITY			1,474,816				1,348,794
Total liabilities and equity		$	2,998,718			$	2,815,283
		As of June 30,
		2021				2020
Other Financial Data
Receivable days			45				49
Inventory days			30				28
Accounts payable days			74				83
Receivables, net plus inventories, net less accounts payable		$	313,631			$	277,080
Receivables, net plus inventories, net less accounts payable as a percent of sales (TTM) †			9.9	%			10.5	%
† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches

TopBuild Corp.
Condensed Consolidated Statement of Cash Flows (Unaudited)
(in thousands)
		Six Months Ended June 30,
		2021				2020
Cash Flows Provided by (Used in) Operating Activities:
Net income		$	150,222			$	106,268
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			33,221				33,311
Share-based compensation			5,377				9,038
Loss on extinguishment of debt			13,862				233
Loss on sale or abandonment of property and equipment			833				320
Amortization of debt issuance costs			858				716
Provision for bad debt expense			4,037				3,756
Loss from inventory obsolescence			1,129				1,313
Deferred income taxes, net			(206	)			(38	)
Change in certain assets and liabilities
Receivables, net			(36,277	)			1,894
Inventories, net			(8,055	)			538
Prepaid expenses and other current assets			(2,273	)			9,151
Accounts payable			21,782				(16,390	)
Accrued liabilities			17,693				28,188
Payment of contingent consideration			—				(413	)
Other, net			—				277
Net cash provided by operating activities			202,203				178,162
Cash Flows Provided by (Used in) Investing Activities:
Purchases of property and equipment			(28,560	)			(20,937	)
Acquisition of businesses			(195,411	)			(20,526	)
Proceeds from sale of property and equipment			193				763
Net cash used in investing activities			(223,778	)			(40,700	)
Cash Flows Provided by (Used in) Financing Activities:
Proceeds from issuance of long-term debt			411,250				300,000
Repayment of long-term debt			(421,716	)			(313,407	)
Payment of debt issuance costs			(6,500	)			(2,280	)
Taxes withheld and paid on employees' equity awards			(11,491	)			(13,165	)
Exercise of stock options			5,952				—
Repurchase of shares of common stock			(24,038	)			(34,152	)
Payment of contingent consideration			(150	)			(428	)
Net cash used in financing activities			(46,693	)			(63,432	)
Cash and Cash Equivalents
(Decrease) increase for the period			(68,268	)			74,030
Beginning of period			330,007				184,807
End of period		$	261,739			$	258,837
Supplemental disclosure of noncash activities:
Leased assets obtained in exchange for new operating lease liabilities		$	39,135			$	19,257
Accruals for property and equipment			460				323

TopBuild Corp.
Segment Data (Unaudited)
(dollars in thousands)
		Three Months Ended June 30,													Six Months Ended June 30,
		2021				2020				Change					2021				2020				Change
TruTeam
Sales		$	605,625			$	466,569				29.8	%			$	1,138,378			$	942,442			20.8	%
Operating profit, as reported		$	99,066			$	69,643									172,702				129,994
Operating margin, as reported			16.4	%			14.9	%								15.2	%			13.8	%
Rationalization charges			—				857									—				857
Acquisition related costs			1,112				—									1,112				4
COVID-19 pay			116				638									605				638
Operating profit, as adjusted		$	100,294			$	71,138								$	174,419			$	131,493
Operating margin, as adjusted			16.6	%			15.2	%								15.3	%			14.0	%
Service Partners
Sales		$	273,364			$	216,336				26.4	%			$	524,965			$	430,558			21.9	%
Operating profit, as reported		$	42,856			$	24,155									78,241				48,825
Operating margin, as reported			15.7	%			11.2	%								14.9	%			11.3	%
Rationalization charges			—				944									—				944
COVID-19 pay			20				54									54				54
Operating profit, as adjusted		$	42,876			$	25,153								$	78,295			$	49,823
Operating margin, as adjusted			15.7	%			11.6	%								14.9	%			11.6	%
Total
Sales before eliminations		$	878,989			$	682,905								$	1,663,343			$	1,373,000
Intercompany eliminations			(44,734	)			(36,806	)								(86,290	)			(73,673	)
Net sales after eliminations		$	834,255			$	646,099				29.1	%			$	1,577,053			$	1,299,327			21.4	%
Operating profit, as reported - segments		$	141,922			$	93,798								$	250,943			$	178,819
General corporate expense, net			(6,704	)			(7,383	)								(13,311	)			(16,581	)
Intercompany eliminations			(6,932	)			(5,961	)								(13,460	)			(11,795	)
Operating profit, as reported		$	128,286			$	80,454								$	224,172			$	150,443
Operating margin, as reported			15.4	%			12.5	%								14.2	%			11.6	%
Rationalization charges			—				2,376									16				2,376
Acquisition related costs †			1,457				(40	)								2,210				196
Refinancing costs			—				20									—				57
COVID-19 pay			136				692									659				692
Operating profit, as adjusted		$	129,879			$	83,502								$	227,057			$	153,764
Operating margin, as adjusted			15.6	%			12.9	%								14.4	%			11.8	%
Share-based compensation			2,266				5,130									5,377				9,038
Depreciation and amortization			17,703				19,121									33,221				33,311
EBITDA, as adjusted		$	149,848			$	107,753								$	265,655			$	196,113
EBITDA margin, as adjusted			18.0	%			16.7	%								16.8	%			15.1	%
Sales change period over period			188,156													277,726
EBITDA, as adjusted, change period over period			42,095													69,542
Incremental EBITDA, as adjusted, as a percentage of change in sales			22.4	%												25.0	%
† Acquisition related costs include corporate level adjustments as well as segment operating adjustments.

TopBuild Corp.
Non-GAAP Reconciliations (Unaudited)
(in thousands, except share and per common share amounts)
		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
Gross Profit and Operating Profit Reconciliations
Net sales		$	834,255			$	646,099			$	1,577,053			$	1,299,327
Gross profit, as reported		$	243,180			$	178,054			$	440,939			$	350,011
Rationalization charges			—				1,079				—				1,079
COVID-19 pay			122				482				592				482
Gross profit, as adjusted		$	243,302			$	179,615			$	441,531			$	351,572
Gross margin, as reported			29.1	%			27.6	%			28.0	%			26.9	%
Gross margin, as adjusted			29.2	%			27.8	%			28.0	%			27.1	%
Operating profit, as reported		$	128,286			$	80,454			$	224,172			$	150,443
Rationalization charges			—				2,376				16				2,376
Acquisition related costs			1,457				(40	)			2,210				196
Refinancing costs			—				20				—				57
COVID-19 pay			136				692				659				692
Operating profit, as adjusted		$	129,879			$	83,502			$	227,057			$	153,764
Operating margin, as reported			15.4	%			12.5	%			14.2	%			11.6	%
Operating margin, as adjusted			15.6	%			12.9	%			14.4	%			11.8	%
Income Per Common Share Reconciliation
Income before income taxes, as reported		$	122,247			$	72,266			$	197,747			$	133,753
Rationalization charges			—				2,376				16				2,376
Acquisition related costs			1,457				(40	)			2,210				196
Refinancing costs and loss on extinguishment of debt			—				20				13,862				290
COVID-19 pay			136				692				659				692
Income before income taxes, as adjusted			123,840				75,314				214,494				137,307
Tax rate at 26.0%			(32,198	)			(19,582	)			(55,769	)			(35,700	)
Income, as adjusted		$	91,642			$	55,732			$	158,725			$	101,607
Income per common share, as adjusted		$	2.76			$	1.68			$	4.78			$	3.04
Weighted average diluted common shares outstanding			33,177,435				33,202,423				33,190,107				33,401,135

TopBuild Corp.
Same Branch and Acquisition Net Sales and Adjusted EBITDA (Unaudited)
(dollars in thousands)
		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
Net sales
Same branch:
TruTeam		$	538,360			$	466,569			$	1,043,657			$	942,442
Service Partners			269,473				216,336				521,074				430,558
Eliminations			(43,750	)			(36,806	)			(85,305	)			(73,673	)
Total same branch			764,083				646,099				1,479,426				1,299,327
Acquisitions (a):
TruTeam		$	67,265			$	—			$	94,721			$	—
Service Partners			3,891				—				3,891				—
Eliminations			(984	)			—				(985	)			—
Total acquisitions			70,172				—				97,627				—
Total		$	834,255			$	646,099			$	1,577,053			$	1,299,327
EBITDA, as adjusted
Same branch		$	140,425			$	107,753			$	253,554			$	196,113
Acquisitions (a)			9,423				—				12,101				—
Total		$	149,848			$	107,753			$	265,655			$	196,113
EBITDA, as adjusted, as a percentage of sales
Same branch (b)			18.4	%							17.1	%
Acquisitions (c)			13.4	%							12.4	%
Total (d)			18.0	%			16.7	%			16.8	%			15.1	%
As Adjusted Incremental EBITDA, as a percentage of change in sales
Same branch (e)			27.7	%							31.9	%
Acquisitions (c)			13.4	%							12.4	%
Total (f)			22.4	%							25.0	%
(a) Represents current year impact of acquisitions in their first twelve months
(b) Same branch EBITDA, as adjusted, as a percentage of same branch sales
(c) Acquired EBITDA, as adjusted, as a percentage of acquired sales
(d) Total EBITDA, as adjusted, as a percentage of total sales
(e) Change in same branch EBITDA, as adjusted, as a percentage of change in same branch sales
(f) Change in total EBITDA, as adjusted, as a percentage of change in total sales

TopBuild Corp.
Same Branch and Acquisition Net Sales by Market (Unaudited)
(in thousands)
	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Same branch:
Residential	$	594,259		$	505,534		$	1,151,253		$	1,012,266
Commercial		169,824			140,565			328,173			287,061
Same branch net sales		764,083			646,099			1,479,426			1,299,327
Acquisitions (a):
Residential	$	58,351		$	—		$	78,141		$	—
Commercial		11,821			—			19,486			—
Acquisitions net sales		70,172			—			97,627			—
Total net sales	$	834,255		$	646,099		$	1,577,083		$	1,299,327
(a) Represents current year impact of acquisitions in their first twelve months

TopBuild Corp.
Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
(in thousands)
		Three Months Ended June 30,							Six Months Ended June 30,
		2021			2020				2021			2020
Net income, as reported		$	90,380		$	55,496			$	150,222		$	106,268
Adjustments to arrive at EBITDA, as adjusted:
Interest expense and other, net			6,039			8,188				12,563			16,457
Income tax expense			31,867			16,770				47,525			27,485
Depreciation and amortization			17,703			19,121				33,221			33,311
Share-based compensation			2,266			5,130				5,377			9,038
Rationalization charges			—			2,376				16			2,376
Acquisition related costs			1,457			(40	)			2,210			196
Refinancing costs and loss on extinguishment of debt			—			20				13,862			290
COVID-19 pay			136			692				659			692
EBITDA, as adjusted		$	149,848		$	107,753			$	265,655		$	196,113

TopBuild Corp.
Acquisition Adjusted Net Sales (Unaudited)
(in thousands)
	2020						2021						Trailing Twelve Months Ended
	Q3			Q4			Q1			Q2			June 30, 2021
Net Sales	$	697,223		$	721,487		$	742,798		$	834,255		$	2,995,763
Acquisitions proforma adjustment †		73,677			55,303			44,199			2,204			175,383
Net sales, acquisition adjusted	$	770,900		$	776,790		$	786,997		$	836,459		$	3,171,146
† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches

TopBuild Corp.
2021 Estimated Adjusted EBITDA Range (Unaudited)
(in millions)
	Twelve Months Ending December 31, 2021
	Low			High
Estimated net income	$	339.5		$	363.6
Adjustments to arrive at estimated EBITDA, as adjusted:
Interest expense and other, net		24.7			22.2
Income tax expense		119.3			127.8
Depreciation and amortization		70.6			67.5
Share-based compensation		10.9			8.9
Estimated EBITDA, as adjusted	$	565.0		$	590.0