- Sales increased 3.4% to
$1.3 billion - Gross margin expanded 190 basis points to 32.0%
- Adjusted EBITDA margin expanded 190 basis points to 20.9%
“Our commercial and industrial business performance remains strong, with a solid backlog of projects and continued robust bidding activity. We are particularly pleased with how well our Installation branches have successfully grown their light commercial work in their respective regions and believe this will continue to be a growth driver over the long term.”
Second Quarter 2023 Financial Highlights ($ in 000s)
(comparisons are to the quarter ended
3 Months Ended | Reported | Change |
Sales | 3.4% | |
Gross Margin | 32.0% | 190 bps |
SG&A as % of revenue | 14.0% | 10 bps |
Operating Profit | 14.4% | |
Operating Margin | 18.0% | 170 bps |
Net Income | 14.4% | |
Net Income per diluted share | 17.5% | |
3 Months Ended | Adjusted | Change |
Sales | 3.4% | |
Gross Margin | 32.0% | 190 bps |
SG&A as % of revenue | 13.9% | 10 bps |
Operating Profit | 14.6% | |
Operating Margin | 18.2% | 180 bps |
Net Income | 15.4% | |
Net Income per diluted share | 18.5% | |
EBITDA | 13.7% | |
EBITDA Margin | 20.9% | 190 bps |
Six Month Financial Highlights ($ in 000s)
(comparisons are to the six months ended
6 Months Ended | Reported | Change |
Sales | 5.7% | |
Gross Margin | 30.7% | 140 bps |
SG&A as % of revenue | 13.8% | (30 bps) |
Operating Profit | 17.6% | |
Operating Margin | 16.9% | 170 bps |
Net Income | 16.2% | |
Net Income per diluted share | 20.3% | |
6 Months Ended | Adjusted | Change |
Sales | 5.7% | |
Gross Margin | 30.7% | 140 bps |
SG&A as % of revenue | 13.5% | (40 bps) |
Operating Profit | 17.5% | |
Operating Margin | 17.1% | 170 bps |
Net Income | 17.3% | |
Net Income per diluted share | 21.5% | |
EBITDA | 15.7% | |
EBITDA Margin | 19.9% | 170 bps |
Operating Segment Highlights ($ in 000s)
(comparisons are to the period ended
Installation | 3 Months Ended | 6 Months Ended |
Sales | ||
Change | ||
Volume | 2.9% | 4.1% |
Price | 2.9% | 4.3% |
M&A | 2.2% | 2.2% |
Total Change | 8.0% | 10.6% |
Operating Margin | 21.3% | 20.3% |
Change | 260 bps | 260 bps |
Adj. Operating Margin | 21.3% | 20.3% |
Change | 260 bps | 250 bps |
Adj. EBITDA Margin | 23.4% | 22.4% |
Change | 260 bps | 240 bps |
Specialty Distribution | 3 Months Ended | 6 Months Ended |
Sales | ||
Change | ||
Volume | -2.9% | -2.9% |
Price | 0.6% | 3.0% |
M&A | 0.0% | 0.0% |
Total Change | -2.3% | 0.1% |
Operating Margin | 15.0% | 14.1% |
Change | 20 bps | 20 bps |
Adj. Operating Margin | 15.0% | 14.1% |
Change | 20 bps | 20 bps |
Adj. EBITDA Margin | 17.6% | 16.7% |
Change | 40 bps | 20 bps |
Capital Allocation
“We are pleased with our progress to date on the acquisition front, welcoming three profitable and well-managed companies to the
Year-to-date the Company has completed three acquisitions;
2023 Outlook
Sales and Adjusted EBITDA Outlook(1)
($ in millions)
2023 | Low | High | ||
Sales | $ | 5,025 | $ | 5,175 |
Adjusted EBITDA* | $ | 950 | $ | 1,000 |
*See table for adjusted EBITDA reconciliation.
(1) This outlook reflects management’s current view of present and future market conditions and are based on assumptions such as housing starts and completions, general and administrative expenses, weighted average diluted shares outstanding and interest rates. These targets do not include any effects related to potential acquisitions or divestitures that may occur after the date of this press release. A reconciliation of non-GAAP targets to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, the costs and expenses that may be incurred in the future and therefore, cannot be reasonably predicted. The effect of these excluded items may be significant. Factors that could cause actual long-term results to differ materially from TopBuild’s current expectations are discussed below and are also detailed in the Company’s 2022 Annual Report on Form 10-K and subsequent
Additional Information
Quarterly supplemental materials, including a presentation that will be referenced on today’s conference call, are available on the Company’s website at www.topbuild.com.
Conference Call
A conference call to discuss second 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
Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
(in thousands, except share and per common share amounts) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net sales | $ | 1,317,262 | $ | 1,274,285 | $ | 2,582,500 | $ | 2,443,203 | ||||||||
Cost of sales | 895,462 | 890,188 | 1,790,485 | 1,727,905 | ||||||||||||
Gross profit | 421,800 | 384,097 | 792,015 | 715,298 | ||||||||||||
Selling, general, and administrative expense | 184,697 | 176,876 | 355,481 | 344,123 | ||||||||||||
Operating profit | 237,103 | 207,221 | 436,534 | 371,175 | ||||||||||||
Other income (expense), net: | ||||||||||||||||
Interest expense | (18,558 | ) | (13,410 | ) | (36,597 | ) | (25,375 | ) | ||||||||
Other, net | 4,605 | (279 | ) | 6,528 | 406 | |||||||||||
Other expense, net | (13,953 | ) | (13,689 | ) | (30,069 | ) | (24,969 | ) | ||||||||
Income before income taxes | 223,150 | 193,532 | 406,465 | 346,206 | ||||||||||||
Income tax expense | (58,750 | ) | (49,835 | ) | (106,195 | ) | (87,796 | ) | ||||||||
Net income | $ | 164,400 | $ | 143,697 | $ | 300,270 | $ | 258,410 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 5.20 | $ | 4.43 | $ | 9.51 | $ | 7.93 | ||||||||
Diluted | $ | 5.18 | $ | 4.41 | $ | 9.47 | $ | 7.87 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 31,599,744 | 32,405,292 | 31,575,337 | 32,570,988 | ||||||||||||
Diluted | 31,731,807 | 32,614,449 | 31,722,660 | 32,827,549 | ||||||||||||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | |||||||||||||
(in thousands) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Net income | $ | 164,400 | $ | 143,697 | $ | 300,270 | $ | 258,410 | |||||
Other comprehensive income (loss): | |||||||||||||
Foreign currency translation adjustment | 4,283 | (2,193 | ) | 6,037 | 1,026 | ||||||||
Comprehensive income | $ | 168,683 | $ | 141,504 | $ | 306,307 | $ | 259,436 | |||||
Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited) | ||||||||
(dollars in thousands) | ||||||||
As of | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 526,327 | $ | 240,069 | ||||
Receivables, net of an allowance for credit losses of | 857,664 | 836,071 | ||||||
Inventories, net | 385,049 | 438,644 | ||||||
Prepaid expenses and other current assets | 25,556 | 34,257 | ||||||
Total current assets | 1,794,596 | 1,549,041 | ||||||
Right of use assets | 204,044 | 205,892 | ||||||
Property and equipment, net | 258,746 | 253,484 | ||||||
1,991,949 | 1,966,994 | |||||||
Other intangible assets, net | 595,706 | 614,967 | ||||||
Other assets | 12,905 | 16,453 | ||||||
Total assets | $ | 4,857,946 | $ | 4,606,831 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 468,602 | $ | 487,114 | ||||
Current portion of long-term debt | 45,142 | 40,068 | ||||||
Accrued liabilities | 180,594 | 199,370 | ||||||
Short-term operating lease liabilities | 61,825 | 60,880 | ||||||
Short-term finance lease liabilities | 2,180 | 2,207 | ||||||
Total current liabilities | 758,343 | 789,639 | ||||||
Long-term debt | 1,394,794 | 1,417,257 | ||||||
Deferred tax liabilities, net | 254,777 | 251,481 | ||||||
Long-term portion of insurance reserves | 57,217 | 59,783 | ||||||
Long-term operating lease liabilities | 148,709 | 149,943 | ||||||
Long-term finance lease liabilities | 4,519 | 6,673 | ||||||
Other liabilities | 1,541 | 2,349 | ||||||
Total liabilities | 2,619,900 | 2,677,125 | ||||||
EQUITY | 2,238,046 | 1,929,706 | ||||||
Total liabilities and equity | $ | 4,857,946 | $ | 4,606,831 | ||||
As of | ||||||||
2023 | 2022 | |||||||
Other Financial Data | ||||||||
Receivable days | 50 | 46 | ||||||
Inventory days | 39 | 48 | ||||||
Accounts payable days | 64 | 62 | ||||||
Receivables, net plus inventories, net less accounts payable | $ | 774,111 | $ | 696,615 | ||||
Receivables, net plus inventories, net less accounts payable as a percent of sales (TTM) † | 14.9 | % | 15.0 | % | ||||
† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches |
Condensed Consolidated Statement of Cash Flows (Unaudited) | ||||||||
(in thousands) | ||||||||
Six Months Ended | ||||||||
2023 | 2022 | |||||||
Cash Flows Provided by (Used in) Operating Activities: | ||||||||
Net income | $ | 300,270 | $ | 258,410 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 64,652 | 60,621 | ||||||
Share-based compensation | 6,886 | 7,061 | ||||||
Loss on sale of property and equipment | 621 | 525 | ||||||
Amortization of debt issuance costs | 1,440 | 1,427 | ||||||
Provision for bad debt expense | 4,031 | 6,404 | ||||||
Loss from inventory obsolescence | 3,290 | 3,610 | ||||||
Change in certain assets and liabilities: | ||||||||
Receivables, net | (37,247 | ) | (107,739 | ) | ||||
Inventories, net | 54,623 | (82,621 | ) | |||||
Prepaid expenses and other current assets | 8,897 | 648 | ||||||
Accounts payable | (8,806 | ) | 47,540 | |||||
Accrued liabilities | (13,872 | ) | 16,884 | |||||
Other, net | 1,012 | 4,927 | ||||||
Net cash provided by operating activities | 385,797 | 217,697 | ||||||
Cash Flows Provided by (Used in) Investing Activities: | ||||||||
Purchases of property and equipment | (30,672 | ) | (36,034 | ) | ||||
Acquisition of businesses, net of cash acquired | (45,948 | ) | (18,746 | ) | ||||
Proceeds from sale of property and equipment | 782 | 618 | ||||||
Net cash used in investing activities | (75,838 | ) | (54,162 | ) | ||||
Cash Flows Provided by (Used in) Financing Activities: | ||||||||
Repayment of long-term debt | (18,829 | ) | (19,287 | ) | ||||
Proceeds from revolving credit facility | — | 70,000 | ||||||
Repayment of revolving credit facility | — | (70,000 | ) | |||||
Taxes withheld and paid on employees' equity awards | (6,350 | ) | (11,667 | ) | ||||
Exercise of stock options | 1,497 | 1,452 | ||||||
Repurchase of shares of common stock | — | (150,050 | ) | |||||
Payment of contingent consideration | (300 | ) | (35 | ) | ||||
Net cash used in financing activities | (23,982 | ) | (179,587 | ) | ||||
Impact of exchange rate changes on cash | 281 | 142 | ||||||
Net increase (decrease) in cash and cash equivalents | 286,258 | (15,910 | ) | |||||
Cash and cash equivalents- Beginning of period | 240,069 | 139,779 | ||||||
Cash and cash equivalents- End of period | $ | 526,327 | $ | 123,869 | ||||
Supplemental disclosure of noncash activities: | ||||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | 26,310 | $ | 36,129 | ||||
Accruals for property and equipment | 1,449 | 563 | ||||||
Segment Data (Unaudited) | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||
Installation | ||||||||||||||||||||||
Sales | $ | 809,055 | $ | 748,968 | 8.0 | % | $ | 1,576,145 | $ | 1,425,661 | 10.6 | % | ||||||||||
Operating profit, as reported | $ | 172,278 | $ | 139,919 | $ | 319,176 | $ | 252,598 | ||||||||||||||
Operating margin, as reported | 21.3 | % | 18.7 | % | 20.3 | % | 17.7 | % | ||||||||||||||
Rationalization charges | — | — | — | 473 | ||||||||||||||||||
Acquisition related costs | 227 | 16 | 490 | 96 | ||||||||||||||||||
Operating profit, as adjusted | $ | 172,505 | $ | 139,935 | $ | 319,666 | $ | 253,167 | ||||||||||||||
Operating margin, as adjusted | 21.3 | % | 18.7 | % | 20.3 | % | 17.8 | % | ||||||||||||||
Share-based compensation | 310 | 282 | 689 | 689 | ||||||||||||||||||
Depreciation and amortization | 16,791 | 15,319 | 33,284 | 31,004 | ||||||||||||||||||
EBITDA, as adjusted | $ | 189,606 | $ | 155,536 | 21.9 | % | $ | 353,639 | $ | 284,860 | 24.1 | % | ||||||||||
EBITDA margin, as adjusted | 23.4 | % | 20.8 | % | 22.4 | % | 20.0 | % | ||||||||||||||
Specialty Distribution | ||||||||||||||||||||||
Sales | $ | 574,488 | $ | 587,791 | (2.3 | )% | $ | 1,132,862 | $ | 1,131,653 | 0.1 | % | ||||||||||
Operating profit, as reported | $ | 85,980 | $ | 86,749 | $ | 159,313 | $ | 157,170 | ||||||||||||||
Operating margin, as reported | 15.0 | % | 14.8 | % | 14.1 | % | 13.9 | % | ||||||||||||||
Acquisition related costs | — | 334 | 340 | 575 | ||||||||||||||||||
Operating profit, as adjusted | $ | 85,980 | $ | 87,083 | $ | 159,653 | $ | 157,745 | ||||||||||||||
Operating margin, as adjusted | 15.0 | % | 14.8 | % | 14.1 | % | 13.9 | % | ||||||||||||||
Share-based compensation | 316 | 287 | 554 | 641 | ||||||||||||||||||
Depreciation and amortization | 14,740 | 14,005 | 29,312 | 28,034 | ||||||||||||||||||
EBITDA, as adjusted | $ | 101,036 | $ | 101,375 | (0.3 | )% | $ | 189,519 | $ | 186,420 | 1.7 | % | ||||||||||
EBITDA margin, as adjusted | 17.6 | % | 17.2 | % | 16.7 | % | 16.5 | % | ||||||||||||||
Adjusted EBITDA (Unaudited) | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||
Total net sales | |||||||||||||||||||||||
Sales before eliminations | $ | 1,383,543 | $ | 1,336,759 | $ | 2,709,007 | $ | 2,557,314 | |||||||||||||||
Intercompany eliminations | (66,281 | ) | (62,474 | ) | (126,507 | ) | (114,111 | ) | |||||||||||||||
Net sales after eliminations | $ | 1,317,262 | $ | 1,274,285 | 3.4 | % | $ | 2,582,500 | $ | 2,443,203 | 5.7 | % | |||||||||||
Operating profit, as reported - segments | $ | 258,258 | $ | 226,668 | $ | 478,489 | $ | 409,768 | |||||||||||||||
General corporate expense, net | (9,957 | ) | (9,012 | ) | (20,786 | ) | (19,449 | ) | |||||||||||||||
Intercompany eliminations | (11,198 | ) | (10,435 | ) | (21,169 | ) | (19,144 | ) | |||||||||||||||
Operating profit, as reported | $ | 237,103 | $ | 207,221 | $ | 436,534 | $ | 371,175 | |||||||||||||||
Operating margin, as reported | 18.0 | % | 16.3 | % | 16.9 | % | 15.2 | % | |||||||||||||||
Rationalization charges | — | — | — | 473 | |||||||||||||||||||
Acquisition related costs † | 2,100 | 1,577 | 5,758 | 4,654 | |||||||||||||||||||
Operating profit, as adjusted | $ | 239,203 | $ | 208,798 | $ | 442,292 | $ | 376,302 | |||||||||||||||
Operating margin, as adjusted | 18.2 | % | 16.4 | % | 17.1 | % | 15.4 | % | |||||||||||||||
Share-based compensation | 3,751 | 3,334 | 6,886 | 7,061 | |||||||||||||||||||
Depreciation and amortization | 32,551 | 30,122 | 64,652 | 60,621 | |||||||||||||||||||
EBITDA, as adjusted | $ | 275,505 | $ | 242,254 | 13.7 | % | $ | 513,830 | $ | 443,984 | 15.7 | % | |||||||||||
EBITDA margin, as adjusted | 20.9 | % | 19.0 | % | 19.9 | % | 18.2 | % | |||||||||||||||
Sales change period over period | 42,977 | 139,297 | |||||||||||||||||||||
EBITDA, as adjusted, change period over period | 33,251 | 69,846 | |||||||||||||||||||||
Incremental EBITDA, as adjusted, as a percentage of change in sales | 77.4 | % | 50.1 | % | |||||||||||||||||||
† Acquisition related costs include corporate level adjustments as well as segment operating adjustments. | |||||||||||||||||||||||
Non-GAAP Reconciliations (Unaudited) | |||||||||||||||||
(in thousands, except share and per common share amounts) | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Gross Profit Reconciliation | |||||||||||||||||
Net sales | $ | 1,317,262 | $ | 1,274,285 | $ | 2,582,500 | $ | 2,443,203 | |||||||||
Gross profit, as reported | $ | 421,800 | $ | 384,097 | $ | 792,015 | $ | 715,298 | |||||||||
Acquisition related costs | — | — | — | 121 | |||||||||||||
Gross profit, as adjusted | $ | 421,800 | $ | 384,097 | $ | 792,015 | $ | 715,419 | |||||||||
Gross margin, as reported | 32.0 | % | 30.1 | % | 30.7 | % | 29.3 | % | |||||||||
Gross margin, as adjusted | 32.0 | % | 30.1 | % | 30.7 | % | 29.3 | % | |||||||||
Selling, General and Administrative Expense Reconciliation | |||||||||||||||||
Selling, general, and administrative expense, as reported | $ | 184,697 | $ | 176,876 | $ | 355,481 | $ | 344,123 | |||||||||
Rationalization charges | — | — | — | 473 | |||||||||||||
Acquisition related costs | 2,100 | 1,577 | 5,758 | 4,533 | |||||||||||||
Selling, general, and administrative expense, as adjusted | $ | 182,597 | $ | 175,299 | $ | 349,723 | $ | 339,117 | |||||||||
Operating Profit Reconciliation | |||||||||||||||||
Operating profit, as reported | $ | 237,103 | $ | 207,221 | $ | 436,534 | $ | 371,175 | |||||||||
Rationalization charges | — | — | — | 473 | |||||||||||||
Acquisition related costs | 2,100 | 1,577 | 5,758 | 4,654 | |||||||||||||
Operating profit, as adjusted | $ | 239,203 | $ | 208,798 | $ | 442,292 | $ | 376,302 | |||||||||
Operating margin, as reported | 18.0 | % | 16.3 | % | 16.9 | % | 15.2 | % | |||||||||
Operating margin, as adjusted | 18.2 | % | 16.4 | % | 17.1 | % | 15.4 | % | |||||||||
Income Per Common Share Reconciliation | |||||||||||||||||
Income before income taxes, as reported | $ | 223,150 | $ | 193,532 | $ | 406,465 | $ | 346,206 | |||||||||
Rationalization charges | — | — | — | 473 | |||||||||||||
Acquisition related costs | 2,100 | 1,577 | 5,758 | 4,654 | |||||||||||||
Income before income taxes, as adjusted | 225,250 | 195,109 | 412,223 | 351,333 | |||||||||||||
Tax rate at 26.0% | (58,565 | ) | (50,728 | ) | (107,178 | ) | (91,347 | ) | |||||||||
Income, as adjusted | $ | 166,685 | $ | 144,381 | $ | 305,045 | $ | 259,986 | |||||||||
Income per common share, as adjusted | $ | 5.25 | $ | 4.43 | $ | 9.62 | $ | 7.92 | |||||||||
Weighted average diluted common shares outstanding | 31,731,807 | 32,614,449 | 31,722,660 | 32,827,549 | |||||||||||||
Same Branch and Acquisition Metrics (Unaudited) | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net sales | ||||||||||||||||
Same branch: | ||||||||||||||||
Installation | $ | 792,529 | $ | 748,968 | $ | 1,544,775 | $ | 1,425,661 | ||||||||
Specialty Distribution | 574,488 | 587,791 | 1,132,862 | 1,131,653 | ||||||||||||
Eliminations | (66,281 | ) | (62,474 | ) | (126,507 | ) | (114,111 | ) | ||||||||
Total same branch | 1,300,736 | 1,274,285 | 2,551,130 | 2,443,203 | ||||||||||||
Acquisitions (a): | ||||||||||||||||
Installation | $ | 16,526 | $ | — | $ | 31,370 | $ | — | ||||||||
Total acquisitions | 16,526 | — | 31,370 | — | ||||||||||||
Total | $ | 1,317,262 | $ | 1,274,285 | $ | 2,582,500 | $ | 2,443,203 | ||||||||
EBITDA, as adjusted | ||||||||||||||||
Same branch | $ | 272,939 | $ | 242,254 | $ | 509,715 | $ | 443,984 | ||||||||
Acquisitions (a) | 2,566 | — | 4,115 | — | ||||||||||||
Total | $ | 275,505 | $ | 242,254 | $ | 513,830 | $ | 443,984 | ||||||||
EBITDA, as adjusted, as a percentage of sales | ||||||||||||||||
Same branch (b) | 21.0 | % | 20.0 | % | ||||||||||||
Acquisitions (c) | 15.5 | % | 13.1 | % | ||||||||||||
Total (d) | 20.9 | % | 19.0 | % | 19.9 | % | 18.2 | % | ||||||||
As Adjusted Incremental EBITDA, as a percentage of change in sales | ||||||||||||||||
Same branch (e) | 116.0 | % | 60.9 | % | ||||||||||||
Acquisitions (c) | 15.5 | % | 13.1 | % | ||||||||||||
Total (f) | 77.4 | % | 50.1 | % | ||||||||||||
(a) Represents current year impact of acquisitions in their first twelve months | ||||||||||||||||
(b) Same branch metric, as adjusted, as a percentage of same branch sales | ||||||||||||||||
(c) Acquired metric, as adjusted, as a percentage of acquired sales | ||||||||||||||||
(d) Total EBITDA, as adjusted, as a percentage of total sales | ||||||||||||||||
(e) Change in same branch EBITDA, as adjusted, as a percentage of change in same branch sales | ||||||||||||||||
(f) Change in total EBITDA, as adjusted, as a percentage of change in total sales | ||||||||||||||||
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) | ||||||||||||
(in thousands) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Net income, as reported | $ | 164,400 | $ | 143,697 | $ | 300,270 | $ | 258,410 | ||||
Adjustments to arrive at EBITDA, as adjusted: | ||||||||||||
Interest expense and other, net | 13,953 | 13,689 | 30,069 | 24,969 | ||||||||
Income tax expense | 58,750 | 49,835 | 106,195 | 87,796 | ||||||||
Depreciation and amortization | 32,551 | 30,122 | 64,652 | 60,621 | ||||||||
Share-based compensation | 3,751 | 3,334 | 6,886 | 7,061 | ||||||||
Rationalization charges | — | — | — | 473 | ||||||||
Acquisition related costs | 2,100 | 1,577 | 5,758 | 4,654 | ||||||||
EBITDA, as adjusted | $ | 275,505 | $ | 242,254 | $ | 513,830 | $ | 443,984 | ||||
Acquisition Adjusted | ||||||||||||||
(in thousands) | ||||||||||||||
2022 | 2023 | Trailing Twelve Months Ended | ||||||||||||
Q3 | Q4 | Q1 | Q2 | |||||||||||
$ | 1,300,998 | $ | 1,264,543 | $ | 1,265,238 | $ | 1,317,262 | $ | 5,148,041 | |||||
Acquisitions proforma adjustment † | 17,576 | 18,279 | 6,187 | - | 42,042 | |||||||||
Net sales, acquisition adjusted | $ | 1,318,574 | $ | 1,282,822 | $ | 1,271,425 | $ | 1,317,262 | $ | 5,190,083 | ||||
† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches | ||||||||||||||
2023 | ||||||
(in millions) | ||||||
Twelve Months Ending | ||||||
Low | High | |||||
Estimated net income | $ | 543.0 | 586.0 | |||
Adjustments to arrive at estimated EBITDA, as adjusted: | ||||||
Interest expense and other, net | 62.0 | 59.0 | ||||
Income tax expense | 191.0 | 206.0 | ||||
Depreciation and amortization | 131.0 | 128.0 | ||||
Share-based compensation | 15.0 | 14.0 | ||||
Acquisition related costs | 8.0 | 7.0 | ||||
Estimated EBITDA, as adjusted | $ | 950.0 | $ | 1,000.0 | ||
Source:
2023 GlobeNewswire, Inc., source