Fourth Quarter Highlights
- Sales increase 1.7% to
$1.3 billion - Gross margin expands 70 basis points to 30.4%
- Adjusted EBITDA margin expands 80 basis points to 19.6%
Full Year Highlights
- Sales increase 3.7% to
$5.2 billion - Gross margin expands 120 basis points to 30.9%
- Adjusted EBITDA margin expands 140 basis points to 20.2%
Provides 2024 Sales and Adjusted EBITDA Outlook
Fourth Quarter Financial Highlights
(comparisons are to the quarter ended
3 Months Ended | Reported | Change |
Sales | 1.7% | |
Gross Margin | 30.4% | 70 bps |
SG&A as % of revenue | 14.5% | 90 bps |
Operating Profit | 0.8% | |
Operating Margin | 15.9% | (20 bps) |
Net Income | 1.8% | |
Net Income per diluted share | 1.8% | |
3 Months Ended | Adjusted | Change |
Sales | 1.7% | |
Gross Margin | 30.4% | 70 bps |
SG&A as % of revenue | 13.9% | 40 bps |
Operating Profit | 3.8% | |
Operating Margin | 16.5% | 30 bps |
Net Income | 6.6% | |
Net Income per diluted share | 6.6% | |
EBITDA | 6.0% | |
EBITDA Margin | 19.6% | 80 bps |
Full Year 2023 Financial Highlights
(comparisons are to the twelve months ended
12 Months Ended | Reported | Change |
Sales | 3.7% | |
Gross Margin | 30.9% | 120 bps |
SG&A as % of revenue | 14.0% | 20 bps |
Operating Profit | 10.2% | |
Operating Margin | 16.9% | 100 bps |
Net Income | 10.5% | |
Net Income per diluted share | 12.8% | |
12 Months Ended | Adjusted | Change |
Sales | 3.7% | |
Gross Margin | 30.9% | 120 bps |
SG&A as % of revenue | 13.5% | (10 bps) |
Operating Profit | 11.9% | |
Operating Margin | 17.3% | 120 bps |
Net Income | 13.0% | |
Net Income per diluted share | 15.3% | |
EBITDA | 11.5% | |
EBITDA Margin | 20.2% | 140 bps |
“2023 was another year of consistent performance and solid execution for
Operating Segment Highlights ($ in 000s)
(comparisons are to the periods ended
Installation | 3 Months Ended | 12 Months Ended | Specialty Distribution | 3 Months Ended | 12 Months Ended | |
Sales | Sales | |||||
Change | Change | |||||
Volume | -3.0% | 0.4% | Volume | -0.2% | -1.6% | |
Price | 2.4% | 3.6% | Price | 0.5% | 1.1% | |
M&A | 5.1% | 3.6% | M&A | 0.0% | 0.0% | |
Dispositions | -0.7% | -0.3% | Dispositions | 0.0% | 0.0% | |
Total Change | 3.8% | 7.3% | Total Change | 0.2% | -0.4% | |
Operating Margin | 19.0% | 20.2% | Operating Margin | 14.8% | 14.6% | |
Change | 40 bps | 170 bps | Change | 50 bps | 30 bps | |
Adj. Operating Margin | 19.0% | 20.3% | Adj. Operating Margin | 14.8% | 14.6% | |
Change | 30 bps | 180 bps | Change | 40 bps | 20 bps | |
Adj. EBITDA Margin | 21.4% | 22.5% | Adj. EBITDA Margin | 17.5% | 17.3% | |
Change | 60 bps | 190 bps | Change | 80 bps | 40 bps | |
Capital Allocation
2023 Acquisitions
The Company acquired four residential insulation installation companies which are expected to generate over
TTM Revenue at | Month | ||
Company Acquired | Acquisition ($ millions) | Acquired | |
January | |||
Best Insulation | July | ||
Rocky Mountain Spray Foam | July | ||
Panhandle Insulation | October | ||
Total | $172.7 | ||
“Acquisitions remain the best use of our capital, generating strong returns for our shareholders. We continue to work diligently on our planned acquisition of SPI. All three of our end-markets are highly fragmented and present great opportunities to reinvest our strong free cash flow to drive shareholder value,” said Buck.
2024 Acquisitions
Year-to-date, the Company has acquired one residential insulation company, Brabble Insulation, and has entered into an agreement to acquire a second residential insulation installer,
2024 Outlook
“We expect 2024 will be another strong year for
Sales and Adjusted EBITDA Guidance(1)
($ in millions)
2024 | Low | High | ||||
Sales | $ | 5,360 | $ | 5,560 | ||
Adjusted EBITDA* | $ | 1,040 | $ | 1,130 | ||
*See table for adjusted EBITDA reconciliation.
2024 Assumptions | |
Residential Revenue | Mid Single Digit Growth |
Commercial/Industrial Revenue | Mid Single Digit Growth |
CapEx (% of Sales) | 1.5% to 2.0% |
Working Capital Goal (% LTM Sales) | 12% to 14% |
Income Tax Rate | 25% to 27% |
Incremental Adjusted EBITDA (Organic) | 22% to 27% |
Incremental Adjusted EBITDA (Acquisitions Year One) | 11% to 16% |
(1) This outlook reflects management’s current view of present and future market conditions and are 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
Conference Call
A conference call to discuss fourth quarter 2023 financial results is scheduled for today,
About
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
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
Investor Relations and Media Contact
tabitha.zane@topbuild.com
386-763-8801
(tables follow)
Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except share and per common share amounts) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net sales | $ | 1,286,074 | $ | 1,264,543 | $ | 5,194,694 | $ | 5,008,744 | ||||||||
Cost of sales | 894,958 | 888,871 | 3,590,874 | 3,522,025 | ||||||||||||
Gross profit | 391,116 | 375,672 | 1,603,820 | 1,486,719 | ||||||||||||
Selling, general, and administrative expense | 186,316 | 172,558 | 724,995 | 689,555 | ||||||||||||
Operating profit | 204,800 | 203,114 | 878,825 | 797,164 | ||||||||||||
Other income (expense), net: | ||||||||||||||||
Interest expense | (19,187 | ) | (16,779 | ) | (74,614 | ) | (56,716 | ) | ||||||||
Other, net | 8,729 | 1,585 | 21,272 | 1,687 | ||||||||||||
Other expense, net | (10,458 | ) | (15,194 | ) | (53,342 | ) | (55,029 | ) | ||||||||
Income before income taxes | 194,342 | 187,920 | 825,483 | 742,135 | ||||||||||||
Income tax expense | (47,960 | ) | (44,086 | ) | (211,229 | ) | (186,146 | ) | ||||||||
Net income | $ | 146,382 | $ | 143,834 | $ | 614,254 | $ | 555,989 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 4.63 | $ | 4.54 | $ | 19.44 | $ | 17.26 | ||||||||
Diluted | $ | 4.60 | $ | 4.52 | $ | 19.33 | $ | 17.14 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 31,623,506 | 31,648,741 | 31,597,508 | 32,213,839 | ||||||||||||
Diluted | 31,805,569 | 31,838,352 | 31,776,901 | 32,440,405 | ||||||||||||
Consolidated Statements of Comprehensive Income | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income | $ | 146,382 | $ | 143,834 | $ | 614,254 | $ | 555,989 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustment | 4,227 | (6,762 | ) | 7,255 | (15,286 | ) | ||||||||||
Comprehensive income | $ | 150,609 | $ | 137,072 | $ | 621,509 | $ | 540,703 | ||||||||
Consolidated Balance Sheets and Other Financial Data | ||||||||
(dollars in thousands) | ||||||||
As of | ||||||||
2023 | 2022 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 848,565 | $ | 240,069 | ||||
Receivables, net of an allowance for credit losses of | 799,009 | 836,071 | ||||||
Inventories | 364,731 | 438,644 | ||||||
Prepaid expenses and other current assets | 36,939 | 34,257 | ||||||
Total current assets | 2,049,244 | 1,549,041 | ||||||
Right of use assets | 204,629 | 205,892 | ||||||
Property and equipment, net | 264,487 | 253,484 | ||||||
2,042,568 | 1,966,994 | |||||||
Other intangible assets, net | 591,058 | 614,967 | ||||||
Other assets | 10,865 | 16,453 | ||||||
Total assets | $ | 5,162,851 | $ | 4,606,831 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 469,585 | $ | 487,114 | ||||
Current portion of long-term debt | 47,039 | 40,068 | ||||||
Accrued liabilities | 187,217 | 199,370 | ||||||
Short-term operating lease liabilities | 65,780 | 60,880 | ||||||
Short-term finance lease liabilities | 1,917 | 2,207 | ||||||
Total current liabilities | 771,538 | 789,639 | ||||||
Long-term debt | 1,373,028 | 1,417,257 | ||||||
Deferred tax liabilities, net | 243,930 | 251,481 | ||||||
Long-term portion of insurance reserves | 58,783 | 59,783 | ||||||
Long-term operating lease liabilities | 146,213 | 149,943 | ||||||
Long-term finance lease liabilities | 4,150 | 6,673 | ||||||
Other liabilities | 1,554 | 2,349 | ||||||
Total liabilities | 2,599,196 | 2,677,125 | ||||||
EQUITY | 2,563,655 | 1,929,706 | ||||||
Total liabilities and equity | $ | 5,162,851 | $ | 4,606,831 | ||||
As of | ||||||||
2023 | 2022 | |||||||
Other Financial Data | ||||||||
Receivable days | 53 | 54 | ||||||
Inventory days | 37 | 45 | ||||||
Accounts payable days | 62 | 66 | ||||||
Receivables, net plus inventories less accounts payable | $ | 694,155 | $ | 787,601 | ||||
Receivables, net plus inventories less accounts payable as a percent of sales (TTM) † | 13.2 | % | 15.7 | % | ||||
† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches | ||||||||
Consolidated Statement of Cash Flows | ||||||||
(in thousands) | ||||||||
Year Ended | ||||||||
2023 | 2022 | |||||||
Cash Flows Provided by (Used in) Operating Activities: | ||||||||
Net income | $ | 614,254 | $ | 555,989 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 132,878 | 123,335 | ||||||
Share-based compensation | 15,838 | 12,310 | ||||||
Loss on sale of assets | 2,349 | 1,833 | ||||||
Amortization of debt issuance costs | 2,881 | 2,867 | ||||||
Provision for bad debt expense | 6,481 | 5,510 | ||||||
Provision for inventory obsolescence | 4,794 | 6,659 | ||||||
Deferred income taxes, net | (7,476 | ) | 6,041 | |||||
Change in certain assets and liabilities: | ||||||||
Receivables, net | 20,812 | (169,327 | ) | |||||
Inventories | 74,529 | (93,874 | ) | |||||
Prepaid expenses and other current assets | (2,598 | ) | (9,222 | ) | ||||
Accounts payable | (8,867 | ) | 26,581 | |||||
Accrued liabilities | (4,444 | ) | 20,703 | |||||
Other, net | (2,022 | ) | 6,396 | |||||
Net cash provided by operating activities | 849,409 | 495,801 | ||||||
Cash Flows Provided by (Used in) Investing Activities: | ||||||||
Purchases of property and equipment | (63,998 | ) | (76,382 | ) | ||||
Acquisition of businesses, net of cash acquired | (149,154 | ) | (20,500 | ) | ||||
Proceeds from sale of assets | 14,982 | 2,975 | ||||||
Net cash used in investing activities | (198,170 | ) | (93,907 | ) | ||||
Cash Flows Provided by (Used in) Financing Activities: | ||||||||
Repayment of long-term debt | (40,138 | ) | (38,658 | ) | ||||
Proceeds from revolving credit facility | — | 70,000 | ||||||
Repayment of revolving credit facility | — | (70,000 | ) | |||||
Taxes withheld and paid on employees' equity awards | (6,528 | ) | (11,719 | ) | ||||
Exercise of stock options | 3,130 | 2,028 | ||||||
Repurchase of shares of common stock | — | (250,050 | ) | |||||
Payment of contingent consideration | (300 | ) | (1,674 | ) | ||||
Net cash used in by financing activities | (43,836 | ) | (300,073 | ) | ||||
Impact of exchange rate changes on cash | 1,093 | (1,531 | ) | |||||
Net increase in cash and cash equivalents | 608,496 | 100,290 | ||||||
Cash and cash equivalents - Beginning of period | 240,069 | 139,779 | ||||||
Cash and cash equivalents - End of period | $ | 848,565 | $ | 240,069 | ||||
Supplemental disclosure of cash paid for: | ||||||||
Interest | $ | 71,463 | $ | 49,888 | ||||
Income taxes | 220,773 | 186,722 | ||||||
Supplemental disclosure of noncash activities: | ||||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | 56,255 | $ | 103,997 | ||||
Accruals for property and equipment | 912 | 141 | ||||||
Segment Data (Unaudited) | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||
Installation | ||||||||||||||||||||||
Sales | $ | 790,414 | $ | 761,261 | 3.8 | % | $ | 3,188,232 | $ | 2,969,978 | 7.3 | % | ||||||||||
Operating profit, as reported | $ | 149,999 | $ | 141,961 | $ | 644,392 | $ | 548,795 | ||||||||||||||
Operating margin, as reported | 19.0 | % | 18.6 | % | 20.2 | % | 18.5 | % | ||||||||||||||
Rationalization charges | 41 | 161 | 1,923 | (174 | ) | |||||||||||||||||
Acquisition related costs | 11 | 23 | 527 | 135 | ||||||||||||||||||
Operating profit, as adjusted | $ | 150,051 | $ | 142,145 | $ | 646,842 | $ | 548,756 | ||||||||||||||
Operating margin, as adjusted | 19.0 | % | 18.7 | % | 20.3 | % | 18.5 | % | ||||||||||||||
Share-based compensation | 372 | 339 | 1,496 | 1,296 | ||||||||||||||||||
Depreciation and amortization | 18,422 | 15,869 | 69,123 | 62,483 | ||||||||||||||||||
EBITDA, as adjusted | $ | 168,845 | $ | 158,353 | 6.6 | % | $ | 717,461 | $ | 612,535 | 17.1 | % | ||||||||||
EBITDA margin, as adjusted | 21.4 | % | 20.8 | % | 22.5 | % | 20.6 | % | ||||||||||||||
Specialty Distribution | ||||||||||||||||||||||
Sales | $ | 564,468 | $ | 563,065 | 0.2 | % | $ | 2,268,339 | $ | 2,278,261 | (0.4 | )% | ||||||||||
Operating profit, as reported | $ | 83,355 | $ | 80,692 | $ | 330,938 | $ | 326,226 | ||||||||||||||
Operating margin, as reported | 14.8 | % | 14.3 | % | 14.6 | % | 14.3 | % | ||||||||||||||
Acquisition related costs | — | 266 | 350 | 1,502 | ||||||||||||||||||
Operating profit, as adjusted | $ | 83,355 | $ | 80,958 | $ | 331,288 | $ | 327,728 | ||||||||||||||
Operating margin, as adjusted | 14.8 | % | 14.4 | % | 14.6 | % | 14.4 | % | ||||||||||||||
Share-based compensation | 298 | 104 | 1,286 | 1,041 | ||||||||||||||||||
Depreciation and amortization | 15,193 | 13,184 | 59,607 | 56,881 | ||||||||||||||||||
EBITDA, as adjusted | $ | 98,846 | $ | 94,246 | 4.9 | % | $ | 392,181 | $ | 385,650 | 1.7 | % | ||||||||||
EBITDA margin, as adjusted | 17.5 | % | 16.7 | % | 17.3 | % | 16.9 | % | ||||||||||||||
Adjusted EBITDA (Unaudited) | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||
Total net sales | ||||||||||||||||||||||
Sales before eliminations | $ | 1,354,882 | $ | 1,324,326 | $ | 5,456,571 | $ | 5,248,239 | ||||||||||||||
Intercompany eliminations | (68,808 | ) | (59,783 | ) | (261,877 | ) | (239,495 | ) | ||||||||||||||
Net sales after eliminations | $ | 1,286,074 | $ | 1,264,543 | 1.7 | % | $ | 5,194,694 | $ | 5,008,744 | 3.7 | % | ||||||||||
Operating profit, as reported - segments | $ | 233,354 | $ | 222,653 | $ | 975,330 | $ | 875,021 | ||||||||||||||
General corporate expense, net | (16,787 | ) | (9,650 | ) | (52,067 | ) | (38,018 | ) | ||||||||||||||
Intercompany eliminations | (11,767 | ) | (9,889 | ) | (44,438 | ) | (39,839 | ) | ||||||||||||||
Operating profit, as reported | $ | 204,800 | $ | 203,114 | $ | 878,825 | $ | 797,164 | ||||||||||||||
Operating margin, as reported | 15.9 | % | 16.1 | % | 16.9 | % | 15.9 | % | ||||||||||||||
Rationalization charges | 41 | 162 | 1,923 | (172 | ) | |||||||||||||||||
Acquisition related costs † | 7,381 | 1,216 | 19,698 | 7,974 | ||||||||||||||||||
Operating profit, as adjusted | $ | 212,222 | $ | 204,492 | $ | 900,446 | $ | 804,966 | ||||||||||||||
Operating margin, as adjusted | 16.5 | % | 16.2 | % | 17.3 | % | 16.1 | % | ||||||||||||||
Share-based compensation | 4,757 | 2,637 | 15,836 | 12,310 | ||||||||||||||||||
Depreciation and amortization | 34,662 | 30,284 | 132,878 | 123,335 | ||||||||||||||||||
EBITDA, as adjusted | $ | 251,641 | $ | 237,413 | 6.0 | % | $ | 1,049,160 | $ | 940,611 | 11.5 | % | ||||||||||
EBITDA margin, as adjusted | 19.6 | % | 18.8 | % | 20.2 | % | 18.8 | % | ||||||||||||||
Sales change period over period | 21,531 | 185,950 | ||||||||||||||||||||
EBITDA, as adjusted, change period over period | 14,228 | 108,549 | ||||||||||||||||||||
Incremental EBITDA, as adjusted, as a percentage of change in sales | 66.1 | % | 58.4 | % | ||||||||||||||||||
† Acquisition related costs include corporate level adjustments as well as segment operating adjustments | ||||||||||||||||||||||
Same Branch and Acquisition Metrics (Unaudited) | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net sales | ||||||||||||||||
Same branch: | ||||||||||||||||
Installation | $ | 751,971 | $ | 756,330 | $ | 3,080,770 | $ | 2,960,926 | ||||||||
Specialty Distribution | 564,468 | 563,065 | 2,268,339 | 2,278,261 | ||||||||||||
Eliminations | (68,808 | ) | (59,783 | ) | (261,877 | ) | (239,495 | ) | ||||||||
Total same branch | $ | 1,247,631 | $ | 1,259,612 | $ | 5,087,232 | $ | 4,999,692 | ||||||||
Acquisitions (a): | ||||||||||||||||
Installation | $ | 38,443 | $ | — | $ | 107,462 | $ | — | ||||||||
Total acquisitions | 38,443 | — | 107,462 | — | ||||||||||||
Dispositions (b): | ||||||||||||||||
Installation | $ | — | $ | 4,931 | $ | — | $ | 9,052 | ||||||||
Total dispositions | — | 4,931 | — | 9,052 | ||||||||||||
Total net sales | $ | 1,286,074 | $ | 1,264,543 | $ | 5,194,694 | $ | 5,008,744 | ||||||||
EBITDA, as adjusted | ||||||||||||||||
Same branch | $ | 246,769 | $ | 236,941 | $ | 1,033,980 | $ | 939,183 | ||||||||
Acquisitions (a) | 4,872 | — | 15,180 | — | ||||||||||||
Dispositions (b) | — | 472 | — | 1,428 | ||||||||||||
Total | $ | 251,641 | $ | 237,413 | $ | 1,049,160 | $ | 940,611 | ||||||||
EBITDA, as adjusted, as a percentage of sales | ||||||||||||||||
Same branch (c) | 19.8 | % | 20.3 | % | ||||||||||||
Acquisitions (d) | 12.7 | % | 14.1 | % | ||||||||||||
Total (e) | 19.6 | % | 18.8 | % | 20.2 | % | 18.8 | % | ||||||||
As Adjusted Incremental EBITDA, as a percentage of change in sales | ||||||||||||||||
Same branch (f) | NM | 108.3 | % | |||||||||||||
Acquisitions (d) | 12.7 | % | 14.1 | % | ||||||||||||
Total (g) | 66.1 | % | 58.4 | % | ||||||||||||
(a) Represents current year impact of acquisitions in their first twelve months | ||||||||||||||||
(b) Represents operating results in prior period previously classified as same branch, including | ||||||||||||||||
(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 | ||||||||||||||||
Non-GAAP Reconciliations (Unaudited) | ||||||||||||||||
(in thousands, except share and per common share amounts) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Gross Profit Reconciliation | ||||||||||||||||
Net sales | $ | 1,286,074 | $ | 1,264,543 | $ | 5,194,694 | $ | 5,008,744 | ||||||||
Gross profit, as reported | $ | 391,116 | $ | 375,672 | $ | 1,603,820 | $ | 1,486,719 | ||||||||
Acquisition related costs | — | 15 | — | 135 | ||||||||||||
Gross profit, as adjusted | $ | 391,116 | $ | 375,687 | $ | 1,603,820 | $ | 1,486,854 | ||||||||
Gross margin, as reported | 30.4 | % | 29.7 | % | 30.9 | % | 29.7 | % | ||||||||
Gross margin, as adjusted | 30.4 | % | 29.7 | % | 30.9 | % | 29.7 | % | ||||||||
Selling, General and Administrative Expense Reconciliation | ||||||||||||||||
Selling, general, and administrative expense, as reported | $ | 186,316 | $ | 172,558 | $ | 724,995 | $ | 689,555 | ||||||||
Rationalization charges | 41 | 162 | 1,923 | (172 | ) | |||||||||||
Acquisition related costs | 7,381 | 1,201 | 19,698 | 7,839 | ||||||||||||
Selling, general, and administrative expense, as adjusted | $ | 178,894 | $ | 171,195 | $ | 703,374 | $ | 681,888 | ||||||||
Operating Profit Reconciliation | ||||||||||||||||
Operating profit, as reported | $ | 204,800 | $ | 203,114 | $ | 878,825 | $ | 797,164 | ||||||||
Rationalization charges | 41 | 162 | 1,923 | (172 | ) | |||||||||||
Acquisition related costs | 7,381 | 1,216 | 19,698 | 7,974 | ||||||||||||
Operating profit, as adjusted | $ | 212,222 | $ | 204,492 | $ | 900,446 | $ | 804,966 | ||||||||
Operating margin, as reported | 15.9 | % | 16.1 | % | 16.9 | % | 15.9 | % | ||||||||
Operating margin, as adjusted | 16.5 | % | 16.2 | % | 17.3 | % | 16.1 | % | ||||||||
Income Per Common Share Reconciliation | ||||||||||||||||
Income before income taxes, as reported | $ | 194,342 | $ | 187,920 | $ | 825,483 | $ | 742,135 | ||||||||
Rationalization charges | 41 | 162 | 1,923 | (172 | ) | |||||||||||
Acquisition related costs | 7,381 | 1,216 | 19,698 | 7,974 | ||||||||||||
Income before income taxes, as adjusted | 201,764 | 189,298 | 847,104 | 749,937 | ||||||||||||
Tax rate at 26.0% | (52,459 | ) | (49,217 | ) | (220,247 | ) | (194,984 | ) | ||||||||
Income, as adjusted | $ | 149,305 | $ | 140,081 | $ | 626,857 | $ | 554,953 | ||||||||
Income per common share, as adjusted | $ | 4.69 | $ | 4.40 | $ | 19.73 | $ | 17.11 | ||||||||
Weighted average diluted common shares outstanding | 31,805,569 | 31,838,352 | 31,776,901 | 32,440,405 | ||||||||||||
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income, as reported | $ | 146,382 | $ | 143,834 | $ | 614,254 | $ | 555,989 | ||||||||
Adjustments to arrive at EBITDA, as adjusted: | ||||||||||||||||
Interest expense and other, net | 10,458 | 15,194 | 53,342 | 55,029 | ||||||||||||
Income tax expense | 47,960 | 44,086 | 211,229 | 186,146 | ||||||||||||
Depreciation and amortization | 34,662 | 30,284 | 132,878 | 123,335 | ||||||||||||
Share-based compensation | 4,757 | 2,637 | 15,836 | 12,310 | ||||||||||||
Rationalization charges | 41 | 162 | 1,923 | (172 | ) | |||||||||||
Acquisition related costs | 7,381 | 1,216 | 19,698 | 7,974 | ||||||||||||
EBITDA, as adjusted | $ | 251,641 | $ | 237,413 | $ | 1,049,160 | $ | 940,611 | ||||||||
Proforma acquisition EBITDA(a) | $ | 6,251 | ||||||||||||||
Proforma disposition EBITDA(b) | (3,040 | ) | ||||||||||||||
Proforma TTM EBITDA, as adjusted | $ | 1,052,371 | ||||||||||||||
(a) Represents the trailing twelve months proforma impact of acquisitions completed in 2023 | ||||||||||||||||
(b) Represents the trailing twelve months proforma impact of dispositions completed in 2023 | ||||||||||||||||
Acquisition Adjusted | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
2023 | Year Ended | ||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||||
Net sales | $ | 1,265,238 | $ | 1,317,262 | $ | 1,326,120 | $ | 1,286,074 | $ | 5,194,694 | |||||||||
Acquisitions proforma adjustment † | 31,847 | 26,978 | 5,400 | 55 | 64,280 | ||||||||||||||
Net sales, acquisition adjusted | $ | 1,297,085 | $ | 1,344,240 | $ | 1,331,520 | $ | 1,286,129 | $ | 5,258,974 | |||||||||
† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches | |||||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Residential | $ | 830,915 | $ | 830,789 | $ | 3,350,003 | $ | 3,272,001 | ||||||||
Commercial/Industrial | 455,159 | 433,754 | 1,844,691 | 1,736,743 | ||||||||||||
Total net sales | $ | 1,286,074 | $ | 1,264,543 | $ | 5,194,694 | $ | 5,008,744 | ||||||||
2024 | |||||||
(in millions) | |||||||
Twelve Months Ending | |||||||
Low | High | ||||||
Estimated net income, as reported | $ | 588.0 | $ | 667.0 | |||
Adjustments to arrive at estimated EBITDA, as adjusted: | |||||||
Interest expense and other, net | 60.0 | 54.0 | |||||
Income tax expense | 206.0 | 234.0 | |||||
Depreciation and amortization | 140.0 | 135.0 | |||||
Share-based compensation | 21.0 | 18.0 | |||||
Acquisition related costs | 25.0 | 22.0 | |||||
Estimated EBITDA, as adjusted | $ | 1,040.0 | $ | 1,130.0 | |||
Source:
2024 GlobeNewswire, Inc., source