Installed Building Products Reports First Quarter 2024 Results

Installed Building Products, Inc. (the “Company” or “IBP”), an industry-leading installer of insulation and complementary building products, announced results for the first quarter ended March 31, 2024.

First Quarter 2024 Highlights

(Comparisons are to Prior Year Period)

• Net revenue increased 5.1% to $692.9 million
  • Installation revenue increased 5.3% to $655.9 million, as single-family and multi-family sales growth combined with sales from IBP’s recent acquisitions
  • Other revenue, which includes IBP’s manufacturing and distribution operations, increased to $37.0 million from $36.6 million
• Net income increased 13.4% to a first quarter record of $55.9 million
• Adjusted EBITDA* increased 11.6% to a first quarter record of $117.3 million
• Net income per diluted share increased 13.2% to a first quarter record of $1.97
• Adjusted net income per diluted share* increased 14.9% to a first quarter record of $2.47
• At March 31, 2024, IBP had $399.9 million in cash and cash equivalents
• Repriced Term Loan B facility, reducing the borrowing cost and extending the maturity date to 2031
• Declared first quarter dividend of $0.35 per share which was paid to shareholders on March 31, 2024
• Declared annual variable dividend of $1.60 per share which was paid to shareholders on March 31, 2024

Recent Developments

• IBP’s Board of Directors declared the second quarter regular cash dividend of $0.35 per share
• In April 2024, acquired Trade Partners, Inc., a diverse installer of building products generating annual revenue of over $6 million

“Our first quarter financial results reflect improvements in our single-family end-market and the continuation of healthy sales growth in our multi-family end market. We believe our customers are committed to building single-family homes in the current macroeconomic and industry backdrop. The long-term opportunities in our residential and commercial end markets remain attractive in our opinion,” stated Jeff Edwards, Chairman and Chief Executive Officer.

“Margins during the quarter continued to be supported by strong execution and a strategic priority to focus on realizing the value of our services over volume. As a result, we achieved record first quarter net profit margin and adjusted EBITDA margin for the three months ended March 31, 2024. With our strong balance sheet and cash flow generation, acquisitions remain our top priority for asset allocation followed by distributing cash dividends, and opportunistically repurchasing our common stock,” continued Mr. Edwards.

“I am proud of our team’s ability to continually raise the bar and focus on what they can control within the business. The outlook for 2024 remains promising and we aim to continue to create significant value for our stakeholders over the long term,” concluded Mr. Edwards.

Acquisition Update

IBP continues to prioritize profitable growth through its proven strategy of acquiring well-run installers of insulation and complementary building products.

During the 2024 first quarter and in April 2024, IBP completed the following acquisitions:

• In March 2024, IBP acquired First State Building Products, LLC, a Delaware-based installer of fireplaces into new single-family construction projects with annual revenue of approximately $5 million.
• In April 2024, IBP acquired Trade Partners, Inc., a North Carolina-based installer of insulation and numerous after paint products including, shower doors, closet shelving, mirrors, gutters, window blinds with single-family and multifamily customers generating annual revenue of over $6 million.

2024 Second Quarter Cash Dividend

IBP’s Board of Directors has approved the Company’s quarterly cash dividend of $0.35 per share, payable on June 30, 2024, to stockholders of record on June 15, 2024. The second quarter regular cash dividend represents a 6% increase from last year’s second quarter cash dividend payment.

First Quarter 2024 Results Overview

For the first quarter of 2024, net revenue was $692.9 million, an increase of 5.1% from $659.3 million for the first quarter of 2023. On a consolidated same branch basis, net revenue increased 2.9% from the prior year quarter, which was primarily attributable to a 3.8% increase in price/mix partially offset by a 1.4% decline in IBP’s reported job volume. Residential sales growth within the Company’s Installation segment was 3.8% on a same branch basis in the quarter, as a 1.5% improvement in single-family same branch sales combined with a 13.0% increase in multi-family same branch sales. According to the U.S. Census Bureau, the number of single-family housing units under construction across the industry fell 6% from the prior year quarter while multi-family units were up 1% relative to last year. Commercial same branch sales were down 0.8% from the prior year quarter and total commercial sales increased 2.8%, which includes the Company’s recent acquisitions.

Gross profit improved 11.5% to $234.5 million from $210.4 million in the prior year quarter. Gross profit and adjusted gross profit* as a percent of total revenue were 33.8% and 33.9%, respectively, up from 31.9% for both gross profit and adjusted gross profit in the same period last year. Adjusted gross profit primarily adjusts for the Company’s share-based compensation expense.

Selling and administrative expense, as a percent of net revenue, was 19.6% compared to 18.5% in the prior year quarter. Adjusted selling and administrative expense*, as a percent of net revenue, was 19.0% compared to 17.9% in the prior year quarter.

Net income was $55.9 million, or $1.97 per diluted share, compared to $49.3 million, or $1.74 per diluted share in the prior year quarter. Net profit margin for the first quarter was 8.1% compared to 7.5% in the prior year quarter. Adjusted net income* was $70.2 million, or $2.47 per diluted share, compared to $60.7 million, or $2.15 per diluted share in the prior year quarter. Adjusted net income margin* for the first quarter was 10.1% compared to 9.2% in the prior year quarter. Adjusted net income accounts for the impact of non-core items in both periods, including an addback for non-cash amortization expense related to acquisitions.

EBITDA* was $112.8 million, an 11.6% increase from $101.1 million in the prior year quarter as a result of improved margins of 16.3% and 15.3%, respectively. Adjusted EBITDA* was $117.3 million, an 11.6% increase from $105.1 million in the prior year quarter, representing adjusted EBITDA margins* of 16.9% and 15.9%, respectively.

For full results click here.

About Installed Building Products

Installed Building Products, Inc. is one of the nation’s largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects in all 48 continental states and the District of Columbia from its national network of approximately 250 branch locations.

Source: Installed Building Products, Inc.