TopBuild Reports Second Quarter Results
TopBuild Corp. (NYSE:BLD) reported solid Q2 2024 results with sales growing 3.7% to $1.37 billion and adjusted EBITDA of $277.7 million (20.3% margin). Both segments showed growth, but volume was lower than expected due to high interest rates, project delays, and supply constraints. The company revised its 2024 guidance to $5.3-$5.5 billion in revenue and $1.055-$1.125 billion in adjusted EBITDA. Year-to-date, TopBuild completed 6 acquisitions expected to generate $107 million in annual revenue. The company also repurchased 1.25 million shares for $505.2 million, demonstrating confidence in future growth.
TopBuild Corp. (NYSE:BLD) ha riportato risultati solidi per il secondo trimestre del 2024, con vendite in crescita del 3,7% a 1,37 miliardi di dollari e un EBITDA rettificato di 277,7 milioni di dollari (margine del 20,3%). Entrambi i segmenti hanno mostrato crescita, ma il volume è stato inferiore alle attese a causa dei tassi di interesse elevati, ritardi nei progetti e vincoli di approvvigionamento. L'azienda ha rivisto le previsioni per il 2024, attese tra 5,3 e 5,5 miliardi di dollari di fatturato e tra 1,055 e 1,125 miliardi di dollari di EBITDA rettificato. Da inizio anno, TopBuild ha completato 6 acquisizioni che si prevede genereranno 107 milioni di dollari di fatturato annuo. L'azienda ha anche riacquistato 1,25 milioni di azioni per 505,2 milioni di dollari, dimostrando fiducia nella crescita futura.
TopBuild Corp. (NYSE:BLD) reportó sólidos resultados para el segundo trimestre de 2024, con ventas en crecimiento del 3.7% a 1.37 mil millones de dólares y un EBITDA ajustado de 277.7 millones de dólares (margen del 20.3%). Ambos segmentos mostraron crecimiento, pero el volumen fue menor de lo esperado debido a altas tasas de interés, retrasos en proyectos y restricciones de suministro. La empresa revisó su guía para 2024, esperando ingresos de 5.3 a 5.5 mil millones de dólares y un EBITDA ajustado de 1.055 a 1.125 mil millones de dólares. Hasta la fecha, TopBuild completó 6 adquisiciones que se espera generen 107 millones de dólares en ingresos anuales. La compañía también recompró 1.25 millones de acciones por 505.2 millones de dólares, demostrando confianza en el crecimiento futuro.
탑빌드 Corp. (NYSE:BLD)는 2024년 2분기 실적을 발표하며 매출이 3.7% 증가하여 13억 7천만 달러에 이르렀으며 조정 EBITDA는 2억 7천7백만 달러 (20.3% 마진)를 기록했다고 보고했습니다. 두 부문 모두 성장세를 보였으나, 고금리, 프로젝트 지연, 공급 제약으로 인해 예상보다 볼륨이 낮았습니다. 회사는 2024년 가이던스를 수정하였습니다 세전 매출 53~55억 달러, 조정 EBITDA 10억 5천5백만~11억 2천5백만 달러를 예상하고 있습니다. 올해 초부터 탑빌드는 6건의 인수합병을 완료하여 연간 1억 7천만 달러의 수익을 창출할 것으로 기대하고 있습니다. 또한 125만 주의 자사주 매입을 실시하여 5억 5천2백만 달러를 지출하며 향후 성장에 대한 확신을 드러냈습니다.
TopBuild Corp. (NYSE:BLD) a rapporté des résultats solides pour le deuxième trimestre 2024, avec des ventes en hausse de 3,7 % à 1,37 milliard de dollars et un EBITDA ajusté de 277,7 millions de dollars (marge de 20,3 %). Les deux segments ont affiché une croissance, mais le volume était inférieur aux attentes en raison de taux d'intérêt élevés, de retards de projets et de contraintes d'approvisionnement. L'entreprise a révisé ses prévisions pour 2024 à un chiffre d'affaires de 5,3 à 5,5 milliards de dollars et un EBITDA ajusté de 1,055 à 1,125 milliard de dollars. Depuis le début de l'année, TopBuild a réalisé 6 acquisitions qui devraient générer 107 millions de dollars de chiffre d'affaires annuel. L'entreprise a également racheté 1,25 million d'actions pour 505,2 millions de dollars, témoignant de sa confiance dans la croissance future.
TopBuild Corp. (NYSE:BLD) meldete solide Ergebnisse für das zweite Quartal 2024, mit Umsatzsteigerungen von 3,7% auf 1,37 Milliarden US-Dollar und einem adjustierten EBITDA von 277,7 Millionen US-Dollar (20,3% Marge). Beide Segmente wiesen Wachstumsraten auf, jedoch war das Volumen aufgrund hoher Zinsen, Projektverzögerungen und Lieferengpässen geringer als erwartet. Das Unternehmen hat seine Prognose für 2024 angepasst und erwartet Einnahmen zwischen 5,3 und 5,5 Milliarden US-Dollar sowie ein ajustiertes EBITDA von 1,055 bis 1,125 Milliarden US-Dollar. Seit Jahresbeginn hat TopBuild 6 Übernahmen durchgeführt, von denen erwartet wird, dass sie jährliche Einnahmen von 107 Millionen US-Dollar generieren werden. Das Unternehmen hat zudem 1,25 Millionen Aktien zurückgekauft für 505,2 Millionen US-Dollar und damit Vertrauen in das zukünftige Wachstum demonstriert.
- Sales increased 3.7% to $1.37 billion in Q2 2024
- Adjusted EBITDA reached $277.7 million with a 20.3% margin
- Completed 6 acquisitions year-to-date, adding $107 million in expected annual revenue
- Repurchased 1.25 million shares for $505.2 million
- Volume was lower than anticipated due to high interest rates, project delays, and supply constraints
- Revised 2024 guidance downward
- Gross margin decreased from 32.0% in Q2 2023 to 31.0% in Q2 2024
Insights
TopBuild's Q2 results show mixed performance. While sales grew
Key positives include continued M&A activity with 6 acquisitions year-to-date, expected to generate
However, volume growth was lower than anticipated due to high interest rates and project delays. The revision in guidance primarily reflects timing of demand rather than fundamental business changes, which investors should monitor closely.
TopBuild's performance reflects broader housing market trends. The company's optimism about long-term fundamentals, including housing undersupply and increasing household formations, aligns with industry projections. However, near-term challenges persist, evidenced by the impact of high interest rates on volume growth.
The company's diverse end-market exposure is a strength. While residential single-family sales are improving, robust commercial and industrial backlogs provide a buffer against housing market volatility. The focus on energy efficiency aligns with growing consumer and regulatory demands, potentially driving future growth.
Investors should note the company's adaptability to market conditions, balancing organic growth with strategic acquisitions and shareholder returns. This flexible approach could position TopBuild well for various economic scenarios in the construction industry.
Both segments drive growth, resulting in second quarter sales of
Delivered gross margin of
Revises 2024 guidance to
DAYTONA BEACH, Fla., Aug. 06, 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 second quarter ended June 30, 2024.
“We’re pleased with our solid results in the second quarter, as our teams continued to focus on growth and profitability across the business. We grew sales
“Both segments delivered sales growth in the second quarter, however volume was less than anticipated due to higher interest rates, project delays and supply constraints that continue to impact results across some residential and commercial end markets. Our residential single-family sales continued to improve, and our backlog continues to support our multi-family sales. Commercial and industrial backlogs and bidding activity remain robust.
“The long-term fundamentals for our business are strong, supported by the undersupply of housing in the United States, increasing household formations, the potential for moderating interest rates, and strengthening demand for greater energy efficiency. We expect to continue driving profitable growth and strong free cash flows for TopBuild to reinvest or return to shareholders.
“Year to date, we have completed 6 acquisitions, and our M&A pipeline is very healthy. We are also returning capital to shareholders, and as of June 30, we repurchased approximately 1.25 million shares totaling
1 The Company noted that its results for the second quarter of 2023 included an estimated
Financial Highlights
(comparisons are to the periods ended June 30, 2023)
Three Months Ended June 30 | |||||||||||||
$ in thousands | Reported | Adjusted | |||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||
Sales | $ | 1,365,612 | $ | 1,317,262 | $ | 1,365,612 | $ | 1,317,262 | |||||
Gross Profit | 423,922 | 421,800 | 423,922 | 421,800 | |||||||||
Gross Margin | 31.0 | % | 32.0 | % | 31.0 | % | 32.0 | % | |||||
SG&A | 213,530 | 184,697 | 185,893 | 182,597 | |||||||||
SG&A as % of revenue | 15.6 | % | 14.0 | % | 13.6 | % | 13.9 | % | |||||
Operating Profit | 210,392 | 237,103 | 238,029 | 239,203 | |||||||||
Operating Margin | 15.4 | % | 18.0 | % | 17.4 | % | 18.2 | % | |||||
Net Income | 150,723 | 164,400 | 170,800 | 166,685 | |||||||||
Net Income per diluted share | $ | 4.78 | $ | 5.18 | $ | 5.42 | $ | 5.25 | |||||
EBITDA | $ | 277,694 | $ | 275,505 | |||||||||
EBITDA Margin | 20.3 | % | 20.9 | % | |||||||||
Six Months Ended June 30 | |||||||||||||
$ in thousands | Reported | Adjusted | |||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||
Sales | $ | 2,644,329 | $ | 2,582,500 | $ | 2,644,329 | $ | 2,582,500 | |||||
Gross Profit | 811,072 | 792,015 | 811,072 | 792,015 | |||||||||
Gross Margin | 30.7 | % | 30.7 | % | 30.7 | % | 30.7 | % | |||||
SG&A | 386,172 | 355,481 | 358,609 | 349,723 | |||||||||
SG&A as % of revenue | 14.6 | % | 13.8 | % | 13.6 | % | 13.5 | % | |||||
Operating Profit | 424,900 | 436,534 | 452,463 | 442,292 | |||||||||
Operating Margin | 16.1 | % | 16.9 | % | 17.1 | % | 17.1 | % | |||||
Net Income | 303,104 | 300,270 | 323,922 | 305,045 | |||||||||
Net Income per diluted share | $ | 9.56 | $ | 9.47 | $ | 10.22 | $ | 9.62 | |||||
EBITDA | $ | 531,513 | $ | 513,830 | |||||||||
EBITDA Margin | 20.1 | % | 19.9 | % |
Sales Drivers
(comparisons are to the periods ended June 30, 2023)
Three Months Ended June 30, 2024 | |||||||||
Installation | Specialty Distribution | TopBuild, net of elims | |||||||
Sales (in millions) | $ | 851 | $ | 593 | $ | 1,366 | |||
Sales Drivers | |||||||||
Volume | 1.0 | % | 0.6 | % | 0.0 | % | |||
Price | 1.3 | % | 1.3 | % | 1.3 | % | |||
M&A | 3.8 | % | 1.3 | % | 2.9 | % | |||
Dispositions | -0.9 | % | -0.6 | % | |||||
Total Sales Change | 5.2 | % | 3.2 | % | 3.7 | % | |||
Six Months Ended June 30, 2024 | |||||||||
Installation | Specialty Distribution | TopBuild, net of elims | |||||||
Sales (in millions) | $ | 1,650 | $ | 1,139 | $ | 2,644 | |||
Sales Drivers | |||||||||
Volume | 0.7 | % | -1.8 | % | -1.0 | % | |||
Price | 1.2 | % | 1.4 | % | 1.3 | % | |||
M&A | 3.7 | % | 0.9 | % | 2.6 | % | |||
Dispositions | -0.9 | % | -0.5 | % | |||||
Total Sales Change | 4.7 | % | 0.5 | % | 2.4 | % | |||
Segment Profitability
(comparisons are to the periods ended June 30, 2023)
Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | ||||||||||||
$ in thousands | Installation | Specialty Distribution | Installation | Specialty Distribution | |||||||||
Operating Profit | $ | 170,718 | $ | 89,373 | $ | 327,475 | $ | 166,951 | |||||
Change | -0.9 | % | 3.9 | % | 2.6 | % | 4.8 | % | |||||
Operating Margin | 20.1 | % | 15.1 | % | 19.9 | % | 14.7 | % | |||||
Adj. Operating Profit | $ | 171,006 | $ | 89,383 | $ | 327,808 | $ | 166,211 | |||||
Change | -0.9 | % | 4.0 | % | 2.5 | % | 4.1 | % | |||||
Adj. Operating Margin | 20.1 | % | 15.1 | % | 19.9 | % | 14.6 | % | |||||
Adj. EBITDA | $ | 190,036 | $ | 104,810 | $ | 365,435 | $ | 196,907 | |||||
Change | 0.2 | % | 3.7 | % | 3.3 | % | 3.9 | % | |||||
Adj. EBITDA Margin | 22.3 | % | 17.7 | % | 22.2 | % | 17.3 | % | |||||
Capital Allocation
2024 Acquisitions
Year to date, the Company has completed the acquisition of 6 insulation companies which are expected to generate approximately
Annual Revenue | ||||||
Company | ($ millions) | Month Closed | ||||
Brabble Insulation (I) | $ | 5.2 | February | |||
Morris Black & Sons (I) | 3.8 | March | ||||
Pest Control Insulation (D) | 25.4 | March | ||||
Green Space Insulation (I) | 6.0 | April | ||||
Insulation Works (I) | 28.0 | May | ||||
Texas Insulation (I) | 38.9 | May | ||||
Total | $ | 107.3 | ||||
I = Installation, D = Specialty Distribution |
Share Repurchases
During the quarter, TopBuild repurchased approximately 1.25 million shares totaling
2024 Outlook2
The Company revised its full year 2024 guidance as indicated below. The sales guidance assumes mid-single digit residential growth and low single digit commercial/industrial growth for the year. The Company noted that the revision largely reflects timing of demand, rather than any underlying changes in the business.
$ in millions | ||||||
2024 Outlook | Low | High | ||||
Sales | $ | 5,300 | $ | 5,500 | ||
Adjusted EBITDA* | $ | 1,055 | $ | 1,125 | ||
* 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 second quarter 2024 financial results is scheduled for today, Tuesday, August 6, 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 June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net sales | $ | 1,365,612 | $ | 1,317,262 | $ | 2,644,329 | $ | 2,582,500 | |||||||
Cost of sales | 941,690 | 895,462 | 1,833,257 | 1,790,485 | |||||||||||
Gross profit | 423,922 | 421,800 | 811,072 | 792,015 | |||||||||||
Selling, general, and administrative expense | 213,530 | 184,697 | 386,172 | 355,481 | |||||||||||
Operating profit | 210,392 | 237,103 | 424,900 | 436,534 | |||||||||||
Other income (expense), net: | |||||||||||||||
Interest expense | (18,568 | ) | (18,558 | ) | (37,363 | ) | (36,597 | ) | |||||||
Other, net | 11,350 | 4,605 | 22,632 | 6,528 | |||||||||||
Other expense, net | (7,218 | ) | (13,953 | ) | (14,731 | ) | (30,069 | ) | |||||||
Income before income taxes | 203,174 | 223,150 | 410,169 | 406,465 | |||||||||||
Income tax expense | (52,451 | ) | (58,750 | ) | (107,065 | ) | (106,195 | ) | |||||||
Net income | $ | 150,723 | $ | 164,400 | $ | 303,104 | $ | 300,270 | |||||||
Net income per common share: | |||||||||||||||
Basic | $ | 4.81 | $ | 5.20 | $ | 9.63 | $ | 9.51 | |||||||
Diluted | $ | 4.78 | $ | 5.18 | $ | 9.56 | $ | 9.47 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 31,324,833 | 31,599,744 | 31,483,144 | 31,575,337 | |||||||||||
Diluted | 31,524,063 | 31,731,807 | 31,693,524 | 31,722,660 | |||||||||||
TopBuild Corp. | |||||||||||||||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net income | $ | 150,723 | $ | 164,400 | $ | 303,104 | $ | 300,270 | |||||||
Other comprehensive (loss) income: | |||||||||||||||
Foreign currency translation adjustment | (1,836 | ) | 4,283 | (5,928 | ) | 6,037 | |||||||||
Comprehensive income | $ | 148,887 | $ | 168,683 | $ | 297,176 | $ | 306,307 | |||||||
TopBuild Corp. | |||||||
Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited) | |||||||
(dollars in thousands) | |||||||
As of | |||||||
June 30, 2024 | December 31, 2023 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 463,221 | $ | 848,565 | |||
Receivables, net of an allowance for credit losses of | 859,725 | 799,009 | |||||
Inventories | 393,810 | 364,731 | |||||
Prepaid expenses and other current assets | 43,550 | 36,939 | |||||
Total current assets | 1,760,306 | 2,049,244 | |||||
Right of use assets | 191,048 | 204,629 | |||||
Property and equipment, net | 267,523 | 264,487 | |||||
Goodwill | 2,090,788 | 2,042,568 | |||||
Other intangible assets, net | 583,141 | 591,058 | |||||
Other assets | 10,187 | 10,865 | |||||
Total assets | $ | 4,902,993 | $ | 5,162,851 | |||
LIABILITIES | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 461,139 | $ | 469,585 | |||
Current portion of long-term debt | 45,665 | 47,039 | |||||
Accrued liabilities | 176,753 | 187,217 | |||||
Short-term operating lease liabilities | 66,953 | 65,780 | |||||
Short-term finance lease liabilities | 1,739 | 1,917 | |||||
Total current liabilities | 752,249 | 771,538 | |||||
Long-term debt | 1,351,969 | 1,373,028 | |||||
Deferred tax liabilities, net | 243,790 | 243,930 | |||||
Long-term portion of insurance reserves | 60,402 | 58,783 | |||||
Long-term operating lease liabilities | 132,529 | 146,213 | |||||
Long-term finance lease liabilities | 3,318 | 4,150 | |||||
Other liabilities | 1,422 | 1,554 | |||||
Total liabilities | 2,545,679 | 2,599,196 | |||||
EQUITY | 2,357,314 | 2,563,655 | |||||
Total liabilities and equity | $ | 4,902,993 | $ | 5,162,851 | |||
As of June 30, | |||||||
2024 | 2023 | ||||||
Other Financial Data | |||||||
Receivable days | 51 | 50 | |||||
Inventory days | 39 | 39 | |||||
Accounts payable days | 57 | 64 | |||||
Receivables, net plus inventories less accounts payable | $ | 792,396 | $ | 774,111 | |||
Receivables, net plus inventories less accounts payable as a percent of sales (TTM) † | 14.8 | % | 14.9 | % | |||
† 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, | |||||||
2024 | 2023 | ||||||
Cash Flows Provided by (Used in) Operating Activities: | |||||||
Net income | $ | 303,104 | $ | 300,270 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 69,291 | 64,652 | |||||
Share-based compensation | 9,759 | 6,886 | |||||
(Gain)/loss on sale of assets | (131 | ) | 621 | ||||
Amortization of debt issuance costs | 1,440 | 1,440 | |||||
Provision for bad debt expense | 9,874 | 4,031 | |||||
Provision for inventory obsolescence | 4,892 | 3,290 | |||||
Change in certain assets and liabilities: | |||||||
Receivables, net | (58,411 | ) | (37,247 | ) | |||
Inventories | (30,758 | ) | 54,623 | ||||
Prepaid expenses and other current assets | (6,595 | ) | 8,897 | ||||
Accounts payable | (17,480 | ) | (8,806 | ) | |||
Accrued liabilities | (13,348 | ) | (13,872 | ) | |||
Other, net | (2,509 | ) | 1,012 | ||||
Net cash provided by operating activities | 269,128 | 385,797 | |||||
Cash Flows Provided by (Used in) Investing Activities: | |||||||
Purchases of property and equipment | (35,974 | ) | (30,672 | ) | |||
Acquisition of businesses, net of cash acquired | (88,123 | ) | (45,948 | ) | |||
Proceeds from sale of assets | 2,150 | 782 | |||||
Net cash used in investing activities | (121,947 | ) | (75,838 | ) | |||
Cash Flows Provided by (Used in) Financing Activities: | |||||||
Repayment of long-term debt | (23,873 | ) | (18,829 | ) | |||
Taxes withheld and paid on employees' equity awards | (6,059 | ) | (6,350 | ) | |||
Exercise of stock options | 3,224 | 1,497 | |||||
Repurchase of shares of common stock | (505,241 | ) | — | ||||
Payment of contingent consideration | — | (300 | ) | ||||
Net cash used in financing activities | (531,949 | ) | (23,982 | ) | |||
Impact of exchange rate changes on cash | (576 | ) | 281 | ||||
Net (decrease) increase in cash and cash equivalents | (385,344 | ) | 286,258 | ||||
Cash and cash equivalents - Beginning of period | 848,565 | 240,069 | |||||
Cash and cash equivalents - End of period | $ | 463,221 | $ | 526,327 | |||
Supplemental disclosure of noncash activities: | |||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | 20,180 | $ | 26,310 | |||
Accruals for property and equipment | 277 | 1,449 | |||||
Excise taxes capitalized to treasury stock | 5,202 | — |
TopBuild Corp. | |||||||||||||||||||||||
Segment Data (Unaudited) | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||
Installation | |||||||||||||||||||||||
Sales | $ | 850,983 | $ | 809,055 | 5.2 | % | $ | 1,649,726 | $ | 1,576,145 | 4.7 | % | |||||||||||
Operating profit, as reported | $ | 170,718 | $ | 172,278 | $ | 327,475 | $ | 319,176 | |||||||||||||||
Operating margin, as reported | 20.1 | % | 21.3 | % | 19.9 | % | 20.3 | % | |||||||||||||||
Acquisition related costs | 288 | 227 | 333 | 490 | |||||||||||||||||||
Operating profit, as adjusted | $ | 171,006 | $ | 172,505 | $ | 327,808 | $ | 319,666 | |||||||||||||||
Operating margin, as adjusted | 20.1 | % | 21.3 | % | 19.9 | % | 20.3 | % | |||||||||||||||
Share-based compensation | 318 | 310 | 648 | 689 | |||||||||||||||||||
Depreciation and amortization | 18,712 | 16,791 | 36,979 | 33,284 | |||||||||||||||||||
EBITDA, as adjusted | $ | 190,036 | $ | 189,606 | 0.2 | % | $ | 365,435 | $ | 353,639 | 3.3 | % | |||||||||||
EBITDA margin, as adjusted | 22.3 | % | 23.4 | % | 22.2 | % | 22.4 | % | |||||||||||||||
Specialty Distribution | |||||||||||||||||||||||
Sales | $ | 592,826 | $ | 574,488 | 3.2 | % | $ | 1,138,620 | $ | 1,132,862 | 0.5 | % | |||||||||||
Operating profit, as reported | $ | 89,373 | $ | 85,980 | $ | 166,951 | $ | 159,313 | |||||||||||||||
Operating margin, as reported | 15.1 | % | 15.0 | % | 14.7 | % | 14.1 | % | |||||||||||||||
Rationalization charges | — | — | (750 | ) | — | ||||||||||||||||||
Acquisition related costs | 10 | — | 10 | 340 | |||||||||||||||||||
Operating profit, as adjusted | $ | 89,383 | $ | 85,980 | $ | 166,211 | $ | 159,653 | |||||||||||||||
Operating margin, as adjusted | 15.1 | % | 15.0 | % | 14.6 | % | 14.1 | % | |||||||||||||||
Share-based compensation | 380 | 316 | 813 | 554 | |||||||||||||||||||
Depreciation and amortization | 15,047 | 14,740 | 29,883 | 29,312 | |||||||||||||||||||
EBITDA, as adjusted | $ | 104,810 | $ | 101,036 | 3.7 | % | $ | 196,907 | $ | 189,519 | 3.9 | % | |||||||||||
EBITDA margin, as adjusted | 17.7 | % | 17.6 | % | 17.3 | % | 16.7 | % | |||||||||||||||
TopBuild Corp. | |||||||||||||||||||||||
Adjusted EBITDA (Unaudited) | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||
Total net sales | |||||||||||||||||||||||
Sales before eliminations | $ | 1,443,809 | $ | 1,383,543 | $ | 2,788,346 | $ | 2,709,007 | |||||||||||||||
Intercompany eliminations | (78,197 | ) | (66,281 | ) | (144,017 | ) | (126,507 | ) | |||||||||||||||
Net sales after eliminations | $ | 1,365,612 | $ | 1,317,262 | 3.7 | % | $ | 2,644,329 | $ | 2,582,500 | 2.4 | % | |||||||||||
Operating profit, as reported - segments | $ | 260,091 | $ | 258,258 | $ | 494,426 | $ | 478,489 | |||||||||||||||
General corporate expense, net | (36,859 | ) | (9,957 | ) | (45,926 | ) | (20,786 | ) | |||||||||||||||
Intercompany eliminations | (12,840 | ) | (11,198 | ) | (23,600 | ) | (21,169 | ) | |||||||||||||||
Operating profit, as reported | $ | 210,392 | $ | 237,103 | $ | 424,900 | $ | 436,534 | |||||||||||||||
Operating margin, as reported | 15.4 | % | 18.0 | % | 16.1 | % | 16.9 | % | |||||||||||||||
Rationalization charges | 258 | — | (492 | ) | — | ||||||||||||||||||
Acquisition related costs † | 4,379 | 2,100 | 5,055 | 5,758 | |||||||||||||||||||
Acquisition termination fee | 23,000 | — | 23,000 | — | |||||||||||||||||||
Operating profit, as adjusted | $ | 238,029 | $ | 239,203 | $ | 452,463 | $ | 442,292 | |||||||||||||||
Operating margin, as adjusted | 17.4 | % | 18.2 | % | 17.1 | % | 17.1 | % | |||||||||||||||
Share-based compensation | 4,632 | 3,751 | 9,759 | 6,886 | |||||||||||||||||||
Depreciation and amortization | 35,033 | 32,551 | 69,291 | 64,652 | |||||||||||||||||||
EBITDA, as adjusted | $ | 277,694 | $ | 275,505 | 0.8 | % | $ | 531,513 | $ | 513,830 | 3.4 | % | |||||||||||
EBITDA margin, as adjusted | 20.3 | % | 20.9 | % | 20.1 | % | 19.9 | % | |||||||||||||||
Sales change period over period | 48,350 | 61,829 | |||||||||||||||||||||
EBITDA, as adjusted, change period over period | 2,189 | 17,683 | |||||||||||||||||||||
Incremental EBITDA, as adjusted, as a percentage of change in sales | 4.5 | % | 28.6 | % | |||||||||||||||||||
† 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 June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net sales | |||||||||||||||
Same branch: | |||||||||||||||
Installation | $ | 820,243 | $ | 802,086 | $ | 1,592,184 | $ | 1,562,737 | |||||||
Specialty Distribution | 585,181 | 574,488 | 1,128,626 | 1,132,862 | |||||||||||
Eliminations | (78,197 | ) | (66,281 | ) | (144,017 | ) | (126,507 | ) | |||||||
Total same branch | $ | 1,327,227 | $ | 1,310,293 | $ | 2,576,793 | $ | 2,569,092 | |||||||
Acquisitions (a): | |||||||||||||||
Installation | $ | 30,740 | $ | — | $ | 57,542 | $ | — | |||||||
Specialty Distribution | 7,645 | — | 9,994 | — | |||||||||||
Total acquisitions | 38,385 | — | 67,536 | — | |||||||||||
Dispositions (b): | |||||||||||||||
Installation | $ | — | $ | 6,969 | $ | — | $ | 13,408 | |||||||
Total dispositions | — | 6,969 | — | 13,408 | |||||||||||
Total net sales | $ | 1,365,612 | $ | 1,317,262 | $ | 2,644,329 | $ | 2,582,500 | |||||||
EBITDA, as adjusted | |||||||||||||||
Same branch | $ | 271,096 | $ | 274,113 | $ | 521,202 | $ | 511,305 | |||||||
Acquisitions (a) | 6,598 | — | 10,311 | — | |||||||||||
Dispositions (b) | — | 1,392 | — | 2,525 | |||||||||||
Total | $ | 277,694 | $ | 275,505 | $ | 531,513 | $ | 513,830 | |||||||
EBITDA, as adjusted, as a percentage of sales | |||||||||||||||
Same branch (c) | 20.4 | % | 20.2 | % | |||||||||||
Acquisitions (d) | 17.2 | % | 15.3 | % | |||||||||||
Total (e) | 20.3 | % | 20.9 | % | 20.1 | % | 19.9 | % | |||||||
As Adjusted Incremental EBITDA, as a percentage of change in sales | |||||||||||||||
Same branch (f) | NM | 128.5 | |||||||||||||
Acquisitions (d) | 17.2 | % | 15.3 | % | |||||||||||
Total (g) | 4.5 | % | 28.6 | % | |||||||||||
(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 June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Gross Profit Reconciliation | |||||||||||||||
Net sales | $ | 1,365,612 | $ | 1,317,262 | $ | 2,644,329 | $ | 2,582,500 | |||||||
Gross profit, as reported | $ | 423,922 | $ | 421,800 | $ | 811,072 | $ | 792,015 | |||||||
Acquisition related costs | — | — | — | — | |||||||||||
Gross profit, as adjusted | $ | 423,922 | $ | 421,800 | $ | 811,072 | $ | 792,015 | |||||||
Gross margin, as reported | 31.0 | % | 32.0 | % | 30.7 | % | 30.7 | % | |||||||
Gross margin, as adjusted | 31.0 | % | 32.0 | % | 30.7 | % | 30.7 | % | |||||||
Selling, General and Administrative Expense Reconciliation | |||||||||||||||
Selling, general, and administrative expense, as reported | $ | 213,530 | $ | 184,697 | $ | 386,172 | $ | 355,481 | |||||||
Rationalization charges | 258 | — | (492 | ) | — | ||||||||||
Acquisition related costs | 4,379 | 2,100 | 5,055 | 5,758 | |||||||||||
Acquisition termination fee | 23,000 | — | 23,000 | — | |||||||||||
Selling, general, and administrative expense, as adjusted | $ | 185,893 | $ | 182,597 | $ | 358,609 | $ | 349,723 | |||||||
Operating Profit Reconciliation | |||||||||||||||
Operating profit, as reported | $ | 210,392 | $ | 237,103 | $ | 424,900 | $ | 436,534 | |||||||
Rationalization charges | 258 | — | (492 | ) | — | ||||||||||
Acquisition related costs | 4,379 | 2,100 | 5,055 | 5,758 | |||||||||||
Acquisition termination fee | 23,000 | — | 23,000 | — | |||||||||||
Operating profit, as adjusted | $ | 238,029 | $ | 239,203 | $ | 452,463 | $ | 442,292 | |||||||
Operating margin, as reported | 15.4 | % | 18.0 | % | 16.1 | % | 16.9 | % | |||||||
Operating margin, as adjusted | 17.4 | % | 18.2 | % | 17.1 | % | 17.1 | % | |||||||
Income Per Common Share Reconciliation | |||||||||||||||
Income before income taxes, as reported | $ | 203,174 | $ | 223,150 | $ | 410,169 | $ | 406,465 | |||||||
Rationalization charges | 258 | — | (492 | ) | — | ||||||||||
Acquisition related costs | 4,379 | 2,100 | 5,055 | 5,758 | |||||||||||
Acquisition termination fee | 23,000 | — | 23,000 | — | |||||||||||
Income before income taxes, as adjusted | 230,811 | 225,250 | 437,732 | 412,223 | |||||||||||
Tax rate at | (60,011 | ) | (58,565 | ) | (113,810 | ) | (107,178 | ) | |||||||
Income, as adjusted | $ | 170,800 | $ | 166,685 | $ | 323,922 | $ | 305,045 | |||||||
Income per common share, as adjusted | $ | 5.42 | $ | 5.25 | $ | 10.22 | $ | 9.62 | |||||||
Weighted average diluted common shares outstanding | 31,524,063 | 31,731,807 | 31,693,524 | 31,722,660 |
TopBuild Corp. | |||||||||||||||
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net income, as reported | $ | 150,723 | $ | 164,400 | $ | 303,104 | $ | 300,270 | |||||||
Adjustments to arrive at EBITDA, as adjusted: | |||||||||||||||
Interest expense and other, net | 7,218 | 13,953 | 14,731 | 30,069 | |||||||||||
Income tax expense | 52,451 | 58,750 | 107,065 | 106,195 | |||||||||||
Depreciation and amortization | 35,033 | 32,551 | 69,291 | 64,652 | |||||||||||
Share-based compensation | 4,632 | 3,751 | 9,759 | 6,886 | |||||||||||
Rationalization charges | 258 | — | (492 | ) | — | ||||||||||
Acquisition related costs | 4,379 | 2,100 | 5,055 | 5,758 | |||||||||||
Acquisition termination fee | 23,000 | — | 23,000 | — | |||||||||||
EBITDA, as adjusted | $ | 277,694 | $ | 275,505 | $ | 531,513 | $ | 513,830 | |||||||
TopBuild Corp. | |||||||||||||||||||
Acquisition Adjusted Net Sales (Unaudited) | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
2023 | 2024 | Trailing Twelve Months Ended | |||||||||||||||||
Q3 | Q4 | Q1 | Q2 | June 30, 2024 | |||||||||||||||
Net sales | $ | 1,326,120 | $ | 1,286,074 | $ | 1,278,717 | $ | 1,365,612 | $ | 5,256,523 | |||||||||
Acquisitions proforma adjustment † | 33,549 | 28,367 | 24,075 | 10,603 | 96,594 | ||||||||||||||
Net sales, acquisition adjusted | $ | 1,359,669 | $ | 1,314,441 | $ | 1,302,792 | $ | 1,376,215 | $ | 5,353,117 | |||||||||
† 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 | $ | 603.0 | $ | 663.0 | |||
Adjustments to arrive at estimated EBITDA, as adjusted: | |||||||
Interest expense and other, net | 48.0 | 45.0 | |||||
Income tax expense | 212.0 | 230.0 | |||||
Depreciation and amortization | 144.0 | 141.0 | |||||
Share-based compensation | 19.0 | 18.0 | |||||
Acquisition related costs & rationalization charges | 29.0 | 28.0 | |||||
Estimated EBITDA, as adjusted | $ | 1,055.0 | $ | 1,125.0 | |||
FAQ
What were TopBuild's (BLD) Q2 2024 financial results?
How many acquisitions did TopBuild (BLD) complete in 2024 so far?
What is TopBuild's (BLD) revised guidance for 2024?