TopBuild Reports Third Quarter Results
TopBuild Corp. (NYSE:BLD) reported strong Q3 2024 results with sales reaching $1.37 billion, driven by 4.2% Installation growth and 5.1% Specialty Distribution growth. The company achieved a gross margin of 30.7% and adjusted EBITDA margin of 20.8%. Net income per diluted share was $5.65, up from $5.27 in Q3 2023. TopBuild narrowed its 2024 guidance to $5.3-$5.35 billion in revenue and $1.055-$1.085 billion in adjusted EBITDA. The company completed or announced 7 acquisitions year-to-date, expected to generate approximately $118 million in annual revenue. During Q3, TopBuild repurchased 1.07 million shares totaling $413.9 million.
TopBuild Corp. (NYSE:BLD) ha riportato risultati robusti per il terzo trimestre del 2024, con vendite che hanno raggiunto 1,37 miliardi di dollari, sostenute da una crescita dell'installazione del 4,2% e da una crescita della distribuzione specializzata del 5,1%. L'azienda ha ottenuto un margine lordo del 30,7% e un margine EBITDA rettificato del 20,8%. L'utile netto per azione diluita è stato di 5,65 dollari, in aumento rispetto ai 5,27 dollari del terzo trimestre del 2023. TopBuild ha ristretto la guida per il 2024 a 5,3-5,35 miliardi di dollari in entrate e a 1,055-1,085 miliardi di dollari in EBITDA rettificato. L'azienda ha completato o annunciato 7 acquisizioni dall'inizio dell'anno, che si prevede genereranno circa 118 milioni di dollari in entrate annuali. Durante il terzo trimestre, TopBuild ha riacquistato 1,07 milioni di azioni per un totale di 413,9 milioni di dollari.
TopBuild Corp. (NYSE:BLD) reportó resultados sólidos para el tercer trimestre de 2024, con ventas que alcanzaron 1.37 mil millones de dólares, impulsadas por un crecimiento del 4.2% en Instalaciones y un crecimiento del 5.1% en Distribución Especializada. La compañía logró un margen bruto del 30.7% y un margen EBITDA ajustado del 20.8%. El ingreso neto por acción diluida fue de 5.65 dólares, en comparación con 5.27 dólares en el tercer trimestre de 2023. TopBuild ha ajustado su guía para 2024 a entre 5.3 y 5.35 mil millones de dólares en ingresos y entre 1.055 y 1.085 mil millones de dólares en EBITDA ajustado. La empresa completó o anunció 7 adquisiciones hasta la fecha, las cuales se espera generen aproximadamente 118 millones de dólares en ingresos anuales. Durante el tercer trimestre, TopBuild recompró 1.07 millones de acciones por un total de 413.9 millones de dólares.
탑빌드 Corp. (NYSE:BLD)는 2024년 3분기 실적이 강력하다고 보고했으며, 매출은 13억 7천만 달러에 달하며, 이는 4.2%의 설치 성장과 5.1%의 전문 배급 성장을 통해 이끌어졌습니다. 회사는 30.7%의 총 이익률과 20.8%의 조정 EBITDA 비율을 달성했습니다. 희석 주당 순이익은 5.65달러로, 2023년 3분기의 5.27달러에서 증가했습니다. 탑빌드는 2024년 가이드를 53억-53억5천만 달러의 매출과 10억5500만-10억8500만 달러의 조정 EBITDA로 좁혔습니다. 회사는 올해 7건의 인수를 완료하거나 발표했으며, 연간 약 1억 1천8백만 달러의 수익을 창출할 것으로 예상하고 있습니다. 3분기 동안 탑빌드는 107만 주를 매입하여 총 4억 1,390만 달러에 달했습니다.
TopBuild Corp. (NYSE:BLD) a rapporté de bons résultats pour le troisième trimestre 2024, avec des ventes atteignant 1,37 milliard de dollars, soutenues par une croissance de 4,2% dans le domaine des installations et une croissance de 5,1% dans la distribution spécialisée. L'entreprise a réalisé une marge brute de 30,7% et une marge EBITDA ajustée de 20,8%. Le bénéfice net par action diluée s'élevait à 5,65 dollars, contre 5,27 dollars au troisième trimestre 2023. TopBuild a réduit ses prévisions pour 2024 à 5,3-5,35 milliards de dollars de revenus et à 1,055-1,085 milliard de dollars d'EBITDA ajusté. L'entreprise a complété ou annoncé 7 acquisitions depuis le début de l'année, qui devraient générer environ 118 millions de dollars de revenus annuels. Au cours du troisième trimestre, TopBuild a racheté 1,07 million d'actions pour un total de 413,9 millions de dollars.
TopBuild Corp. (NYSE:BLD) meldete starke Ergebnisse für das 3. Quartal 2024 mit einem Umsatz von 1,37 Milliarden Dollar, angetrieben durch ein Wachstum von 4,2% im Bereich Installation und 5,1% im Bereich Spezialdistribution. Das Unternehmen erzielte eine Bruttomarge von 30,7% und eine bereinigte EBITDA-Marge von 20,8%. Der Nettogewinn pro verwässerter Aktie lag bei 5,65 Dollar, ein Anstieg von 5,27 Dollar im 3. Quartal 2023. TopBuild hat seine Prognose für 2024 auf 5,3-5,35 Milliarden Dollar Umsatz und 1,055-1,085 Milliarden Dollar bereinigtes EBITDA eingeengt. Das Unternehmen hat bis heute 7 Übernahmen abgeschlossen oder angekündigt, die voraussichtlich rund 118 Millionen Dollar an Jahresumsatz generieren werden. Im 3. Quartal hat TopBuild 1,07 Millionen Aktien im Wert von insgesamt 413,9 Millionen Dollar zurückgekauft.
- Record quarterly sales of $1.37 billion and adjusted EBITDA of $285 million
- Installation segment sales grew 4.2% and Specialty Distribution sales grew 5.1%
- Net income per diluted share increased to $5.65 from $5.27 YoY
- Completed/announced 7 acquisitions with expected $118M annual revenue
- Strong share repurchase program with $413.9M in Q3
- Gross margin declined to 30.7% from 31.7% YoY
- Operating margin decreased to 17.8% from 17.9% YoY
- EBITDA margin dropped to 20.8% from 21.4% YoY
- Installation segment operating profit decreased 1.7%
Insights
TopBuild's Q3 results demonstrate resilient performance with
The company's aggressive capital deployment strategy is noteworthy, with
The company's performance metrics reveal strong underlying market positioning despite macro headwinds. The modest volume growth (
The narrowed guidance suggests management's measured confidence in navigating current market challenges while positioning for growth catalysts including energy efficiency requirements and housing supply deficit.
Third quarter sales of
Delivered gross margin of
Narrows 2024 guidance to
DAYTONA BEACH, Fla., Nov. 05, 2024 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD) a leading installer and specialty distributor of insulation and building material products to the construction industry in the United States and Canada today reported results for the third quarter ended September 30, 2024.
“We delivered a strong performance with third quarter sales of
“We are narrowing our 2024 outlook based on our assumptions for a continued uneven housing environment and the ongoing delay of certain commercial/industrial projects. We remain optimistic about our business with strengthening requirements for energy efficiency, the U.S. housing supply deficit, increasing household formations, and the prospect of lower interest rates driving growth.
“Our priority for our strong free cash flow continues to be acquisitions and our M&A pipeline is very healthy. In the quarter we also returned capital to shareholders, with share repurchases totaling
1 The Company noted that its results for the third quarter of 2023 included an estimated
Financial Highlights
(comparisons are to the periods ended September 30, 2023)
| Three Months Ended September 30, 2024 | |||||||||||||
| Reported | Adjusted | ||||||||||||
| ($ 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 Distribution | TopBuild, net of elims | ||||||||||
| Sales (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 Distribution | TopBuild, net of elims | ||||||||||
| Sales (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 Distribution | Installation | Specialty Distribution | |||||||||
| Operating 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
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
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 | 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 | (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 Ended | ||||||||||||
| Q4 | 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.
FAQ
What were TopBuild's (BLD) Q3 2024 revenue and earnings?
What is TopBuild's (BLD) revenue guidance for 2024?
How many acquisitions did TopBuild (BLD) complete in 2024?
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