Installed building products reports record quarterly results for the third quarter 2022 and declares regular quarterly cash dividend
Columbus, ohio--(business wire)--installed building products, inc. (the "company" or "ibp") (nyse: ibp), an industry-leading installer of insulation and complementary building products, today announced results for the third quarter ended september 30, 2022. third quarter 2022 highlights (comparisons are to prior year period) net revenue increased 41.1% to a quarterly record of $719.1 million installation revenue increased 33.5% to $672.9 million, driven by strong growth across ibp’s residential new construction markets other revenue, which includes ibp’s manufacturing and distribution operations, increased from $5.6 million to $46.2 million, driven by strong operating results and recent acquisitions installation revenue increased 33.5% to $672.9 million, driven by strong growth across ibp’s residential new construction markets other revenue, which includes ibp’s manufacturing and distribution operations, increased from $5.6 million to $46.2 million, driven by strong operating results and recent acquisitions net income increased 74.8% to $61.0 million adjusted ebitda* increased 53.8% to a record $120.2 million net income per diluted share increased 80.5% to $2.13 adjusted net income per diluted share* increased 68.5% to $2.51 price/mix growth increased by a record 27.1% during the third quarter at september 30, 2022, ibp had $228.4 million in cash, cash equivalents and investments published annual 2022 environmental, social and governance ("esg") report highlighting the positive impact the company is making for all stakeholders declared third quarter dividend of $0.315 per share which was paid to shareholders on september 30, 2022 returned $21.5 million to shareholders in the third quarter through dividends and share repurchases recent developments ibp’s board of directors declared the fourth quarter regular cash dividend of $0.315 per share “ibp achieved another quarter of record net revenue, net income, and adjusted ebitda, which was led by continued strength across our residential end-markets, a favorable pricing environment, and the hard work of our team members,” stated jeff edwards, chairman and chief executive officer. “during the third quarter, residential housing unit completion growth accelerated and our business was supported by a robust backlog of units under construction. in addition, we continue to benefit from positive price/mix trends, which increased 27.1% in the third quarter and drove further growth in incremental margins and earnings.” mr. edwards continued, “record cash flow through the 2022 first nine months has allowed us to allocate a growing amount of capital across our proven acquisition strategy, dividend policy and share repurchase program. year-to-date, we have acquired $73 million of annual revenue across numerous geographic regions. in addition, for the first nine months of 2022, we have returned a total of $166.0 million to shareholders through dividend payments and share repurchases, up from $26.4 million in the same period last year.” “as we outlined in our second annual esg report, ibp is focused on promoting positive corporate responsibility and creating lasting value for all of its stakeholders. i am extremely proud of our team's esg progress as well as the record financial results we continue to produce. despite macroeconomic headwinds, we expect the meaningful backlog of residential units and extended construction cycle times to support demand for our installation services throughout the remainder of 2022 and into 2023,” 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. to date in 2022, ibp has acquired over $73 million of annual revenue and expects to acquire at least $100 million of revenue for the full year. during the 2022 third quarter, ibp completed the following acquisition: in september 2022, ibp acquired all florida insulation, llc, a longwood, florida based installer of spray foam and fiberglass insulation to residential, multifamily, and commercial customers with annual revenue of approximately $2.4 million. cash dividend and share repurchases ibp’s board of directors has approved the company’s quarterly cash dividend of $0.315 per share, payable on december 31, 2022, to stockholders of record on december 15, 2022. during the 2022 nine month period, ibp has repurchased over 1.2 million shares of its common stock at a total cost of $112.2 million, including commissions. at september 30, 2022, the company had $187.5 million of availability remaining under its stock repurchase program. third quarter 2022 results overview for the third quarter of 2022, net revenue was a quarterly record of $719.1 million, an increase of 41.1% from $509.8 million for the third quarter of 2021. on a consolidated same branch basis, net revenue improved 28.5% from the prior year quarter, which was attributable to a 7.5% increase in the volume of jobs completed and a 27.1% increase in price/mix during the third quarter relative to the same period last year. residential sales growth within our installation segment was 34.9% on a same branch basis in the quarter. commercial sales growth of 16.0% was largely driven by recent acquisitions with same branch sales up 2.8% from the prior year quarter. gross profit improved 41.9% to $221.3 million from $155.9 million in the prior year quarter. adjusted gross profit* as a percent of total revenue was 30.8%, which adjusts for the company’s share-based compensation expense, as well as expenses directly related to covid-19, compared to 30.7% for the same period last year. the recently acquired distribution companies disclosed in the other operating segment have lower gross margins than our installation operating segment. during the 2022 third quarter, the other operating segment had a gross margin of 21.1% as compared to 33.1% for the installation operating segment. our other segment includes our more recent acquisitions in the distribution businesses, which had an impact on our consolidated gross profit margin of about 80 basis points. the distribution businesses did not have an impact on the prior year third quarter as they had not been acquired at that time. selling and administrative expense, as a percent of net revenue, was 16.1% compared to 18.1% in the prior year quarter. adjusted selling and administrative expense*, as a percent of net revenue, was 15.7% compared to 17.5% in the prior year quarter. net income was $61.0 million, or $2.13 per diluted share, compared to $34.9 million, or $1.18 per diluted share in the prior year quarter. adjusted net income* was $71.7 million, or $2.51 per diluted share, compared to $44.0 million, or $1.49 per diluted share 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. adjusted ebitda* was $120.2 million, a 53.8% increase from $78.1 million in the prior year quarter, largely due to strong sales growth and lower selling and administrative expenses as a percent of net revenue compared to the prior year quarter. conference call and webcast the company will host a conference call and webcast on november 3, 2022 at 10:00 a.m. eastern time to discuss these results. to participate in the call, please dial 877-407-0792 (domestic) or 201-689-8263 (international). the live webcast will be available at www.installedbuildingproducts.com in the investor relations section. a replay of the conference call will be available through december 3, 2022, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13732584. 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 over 220 branch locations. forward-looking statements this press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the housing market and the commercial market, our operations, our esg initiatives, industry conditions, our financial and business model, payment of dividends, the demand for our services and product offerings, the impact of the covid-19 crisis on our business and end markets, supply chain and material constraints, expansion of our national footprint and end markets, diversification of our products, our ability to grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions and the expected amount of acquired revenue, our ability to improve sales and profitability, the impact of the covid-19 crisis on our financial results, and expectations for demand for our services and our earnings. forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intends," "plan," and "will" or, in each case, their negative, or other variations or comparable terminology. these forward-looking statements include all matters that are not historical facts. by their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those expressed in or suggested by such forward-looking statements as a result of various factors, including, without limitation, the duration, effect and severity of the covid-19 crisis; the adverse impact of the covid-19 crisis on our business and financial results, our supply chain, the economy and the markets we serve; general economic and industry conditions; increases in mortgage interest rates and rising home prices; inflation and interest rates; the material price and supply environment; the timing of increases in our selling prices; the risk that the company may reduce, suspend or eliminate dividend payments in the future; and the factors discussed in the “risk factors” section of the company’s annual report on form 10-k for the year ended december 31, 2021, as the same may be updated from time to time in our subsequent filings with the securities and exchange commission. in addition, any future declaration of dividends will be subject to the final determination of our board of directors. any forward-looking statement made by the company in this press release speaks only as of the date hereof. new risks and uncertainties arise from time to time, and it is impossible for the company to predict these events or how they may affect it. the company has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. *use of non-gaap financial measures in addition to the financial measures prepared in accordance with u.s. generally accepted accounting principles (“gaap”), this press release contains the non-gaap financial measures of adjusted ebitda, adjusted ebitda margin (i.e., adjusted ebitda divided by net revenue), adjusted net income, adjusted net income per diluted share, adjusted gross profit and adjusted selling and administrative expense. the reasons for the use of these measures, reconciliations of adjusted ebitda, adjusted net income, adjusted net income per diluted share, adjusted gross profit, and adjusted selling and administrative expense to the most directly comparable gaap measures and other information relating to these measures are included below following the unaudited condensed consolidated financial statements. non-gaap financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for ibp’s financial results prepared in accordance with gaap. installed building products, inc. condensed consolidated statements of operations and comprehensive income (unaudited, in thousands, except share and per share amounts) three months ended september 30, nine months ended september 30, 2022 2021 2022 2021 net revenue $ 719,114 $ 509,763 $ 1,983,355 $ 1,434,927 cost of sales 497,837 353,879 1,372,966 1,001,730 gross profit 221,277 155,884 610,389 433,197 operating expenses selling 31,651 24,188 86,214 67,677 administrative 84,345 68,056 247,519 199,607 amortization 11,370 9,224 33,728 26,798 operating income 93,911 54,416 242,928 139,115 other expense, net interest expense, net 10,668 7,687 31,669 22,781 other expense (income) 185 (483 ) 698 (494 ) income before income taxes 83,058 47,212 210,561 116,828 income tax provision 22,080 12,320 55,857 27,432 net income $ 60,978 $ 34,892 $ 154,704 $ 89,396 other comprehensive income (loss), net of tax: net change on cash flow hedges, net of tax (provision) benefit of $(5,105) and $(454) for the three months ended september 30, 2022 and 2021, respectively, and $(15,138) and $(2,638) for the nine months ended september 30, 2022 and 2021, respectively 14,379 1,292 42,640 7,762 comprehensive income $ 75,357 $ 36,184 $ 197,344 $ 97,158 earnings per share: basic $ 2.14 $ 1.19 $ 5.36 $ 3.05 diluted $ 2.13 $ 1.18 $ 5.33 $ 3.02 weighted average shares outstanding: basic 28,478,954 29,404,257 28,851,389 29,355,538 diluted 28,595,707 29,620,748 29,020,509 29,615,162 cash dividends declared per share $ 0.32 $ 0.30 $ 1.85 $ 0.90 installed building products, inc. condensed consolidated balance sheets (unaudited, in thousands, except share and per share amounts) september 30, december 31, 2022 2021 assets current assets cash and cash equivalents $ 203,402 $ 333,485 investments 24,996 — accounts receivable (less allowance for credit losses of $9,083 and $8,717 at september 30, 2022 and december 31, 2021, respectively) 415,657 312,767 inventories 182,176 143,039 prepaid expenses and other current assets 71,790 70,025 total current assets 898,021 859,316 property and equipment, net 115,479 105,933 operating lease right-of-use assets 72,226 69,871 goodwill 356,612 322,517 customer relationships, net 184,225 178,264 other intangibles, net 91,613 86,157 other non-current assets 45,675 31,144 total assets $ 1,763,851 $ 1,653,202 liabilities and stockholder's equity current liabilities current maturities of long-term debt $ 30,494 $ 30,839 current maturities of operating lease obligations 25,414 23,224 current maturities of finance lease obligations 2,275 1,747 accounts payable 156,117 132,705 accrued compensation 61,453 50,964 other current liabilities 82,809 68,090 total current liabilities 358,562 307,569 long-term debt 827,906 832,193 operating lease obligations 46,640 46,075 finance lease obligations 5,469 3,297 deferred income taxes 19,901 4,819 other long-term liabilities 47,859 42,409 total liabilities 1,306,337 1,236,362 commitments and contingencies (note 16) stockholders’ equity — — preferred stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at september 30, 2022 and december 31, 2021, respectively — — common stock; $0.01 par value: 100,000,000 authorized, 33,429,557 and 33,271,659 issued and 28,604,098 and 29,706,401 shares outstanding at september 30, 2022 and december 31, 2021, respectively 334 333 additional paid in capital 225,377 211,430 retained earnings 453,286 352,543 treasury stock; at cost: 4,825,459and 3,565,258 shares at september 30, 2022 and december 31, 2021, respectively (263,896 ) (147,239 ) accumulated other comprehensive income (loss) 42,413 (227 ) total stockholders’ equity 457,514 416,840 total liabilities and stockholders’ equity $ 1,763,851 $ 1,653,202 installed building products, inc. condensed consolidated statements of cash flows (unaudited, in thousands) nine months ended september 30, 2022 2021 cash flows from operating activities net income $ 154,704 $ 89,396 adjustments to reconcile net income to net cash provided by operating activities depreciation and amortization of property and equipment 35,153 32,498 amortization of operating lease right-of-use assets 19,832 16,464 amortization of intangibles 33,728 26,798 amortization of deferred financing costs and debt discount 1,436 993 provision for credit losses 2,754 1,135 gain on sale of property and equipment (1,048 ) (1,405 ) noncash stock compensation 10,290 10,228 other, net 1,509 2,414 changes in assets and liabilities, excluding effects of acquisitions accounts receivable (98,528 ) (23,224 ) inventories (23,071 ) (37,122 ) proceeds from termination of interest rate swap agreements 25,462 — other assets 4,773 (8,116 ) accounts payable 20,290 14,120 income taxes receivable/payable 12,354 (107 ) other liabilities (971 ) (7,594 ) net cash provided by operating activities 198,667 116,478 cash flows from investing activities purchases of investments (344,388 ) — maturities of short term investments 320,000 — purchases of property and equipment (35,212 ) (27,898 ) acquisitions of businesses, net of cash acquired of $330 and $1,640 in 2022 and 2021, respectively (75,779 ) (94,500 ) proceeds from sale of property and equipment 1,418 2,219 other (5,974 ) (1,430 ) net cash used in investing activities (139,935 ) (121,609 ) cash flows from financing activities payments on term loan (3,750 ) — proceeds from vehicle and equipment notes payable 20,492 20,753 debt issuance costs (655 ) — principal payments on long-term debt (23,340 ) (19,688 ) principal payments on finance lease obligations (1,661 ) (1,573 ) dividends paid (53,821 ) (26,428 ) acquisition-related obligations (9,423 ) (2,442 ) repurchase of common stock (112,193 ) — surrender of common stock awards by employees (4,464 ) (5,576 ) net cash used in financing activities (188,815 ) (34,954 ) net change in cash and cash equivalents (130,083 ) (40,085 ) cash and cash equivalents at beginning of period 333,485 231,520 cash and cash equivalents at end of period $ 203,402 $ 191,435 supplemental disclosures of cash flow information net cash paid during the period for: interest $ 40,639 $ 23,748 income taxes, net of refunds 43,512 27,428 supplemental disclosure of noncash activities right-of-use assets obtained in exchange for operating lease obligations 22,056 23,543 release of indemnification of acquisition-related debt 980 2,036 property and equipment obtained in exchange for finance lease obligations 4,411 1,918 seller obligations in connection with acquisition of businesses 25,534 18,987 unpaid purchases of property and equipment included in accounts payable 857 1,327 information on segments in the first quarter of 2022, we realigned our operating segments. this change resulted in our company having three operating segments consisting of installation, distribution and manufacturing. the other category reported below reflects the operations of our distribution and manufacturing operating segments. installed building products, inc. segment information (unaudited, in thousands) three months ended september 30, 2022 three months ended september 30, 2021 installation other eliminations consolidated installation other eliminations consolidated revenue $ 672,916 $ 47,748 $ (1,550 ) $ 719,114 $ 504,161 $ 6,305 $ (703 ) $ 509,763 cost of sales (exclusive of depreciation and amortization shown separately below) 450,017 37,659 (1,116 ) 486,560 339,308 4,837 (539 ) 343,606 segment gross profit 222,899 10,089 (434 ) 232,554 164,853 1,468 (164 ) 166,157 depreciation and amortization 11,277 10,273 gross profit, as reported 221,277 155,884 selling 31,651 24,188 administrative 84,345 68,056 amortization 11,370 9,224 operating income 93,911 54,416 interest expense, net 10,668 7,687 other expense (income) 185 (483 ) income before income taxes $ 83,058 $ 47,212 three months ended june 30, 2022 three months ended june 30, 2021 installation other eliminations consolidated installation other eliminations consolidated segment gross profit percentage 33.1 % 21.1 % 28.0 % 32.3 % 32.7 % 23.3 % 23.3 % 32.6 % nine months ended september 30, 2022 nine months ended september 30, 2021 installation other eliminations consolidated installation other eliminations consolidated revenue $ 1,872,544 $ 114,690 $ (3,879 ) $ 1,983,355 $ 1,419,302 $ 17,182 $ (1,557 ) $ 1,434,927 cost of sales (exclusive of depreciation and amortization shown separately below) 1,255,521 87,425 (3,015 ) 1,339,931 959,384 12,980 (1,207 ) 971,157 segment gross profit 617,023 27,265 (864 ) 643,424 459,918 4,202 (350 ) 463,770 depreciation and amortization 33,035 30,573 gross profit, as reported 610,389 433,197 selling 86,214 67,677 administrative 247,519 199,607 amortization 33,728 26,798 operating income 242,928 139,115 interest expense, net 31,669 22,781 other expense (income) 698 (494 ) income before income taxes $ 210,561 $ 116,828 nine months ended september 30, 2022 nine months ended september 30, 2021 installation other eliminations consolidated installation other eliminations consolidated segment gross profit percentage 33.0 % 23.8 % 22.3 % 32.4 % 32.4 % 24.5 % 22.5 % 32.3 % the prior period disclosures in the above table have been recast to conform to the current period segment presentation. installed building products, inc. revenue by end market (unaudited, in thousands) three months ended september 30, nine months ended september 30, 2022 2021 2022 2021 installation residential new construction $ 532,299 74 % $ 385,401 76 % $ 1,480,214 75 % $ 1,082,379 75 % repair and remodel 39,139 6 % 31,276 6 % 109,745 5 % 89,810 7 % commercial 101,478 14 % 87,484 17 % 282,585 14 % 247,113 17 % net revenue - installation 672,916 94 % 504,161 99 % 1,872,544 94 % 1,419,302 99 % other 1 46,198 6 % 5,602 1 % 110,811 6 % 15,625 1 % net revenue, as reported $ 719,114 100 % $ 509,763 100 % $ 1,983,355 100 % $ 1,434,927 100 % 1 net revenue for manufacturing operations are included in other category for all periods presented to conform with our change in composition of operating segments. reconciliation of non-gaap financial measures adjusted ebitda, adjusted ebitda margin, adjusted net income, adjusted gross profit and adjusted selling and administrative expense measure performance by adjusting ebitda, gaap net income, gross profit and selling and administrative expense, respectively, for certain income or expense items that are not considered part of our core operations. we believe that the presentation of these measures provides useful information to investors regarding our results of operations because it assists both investors and us in analyzing and benchmarking the performance and value of our business. we believe the adjusted ebitda measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of our capital structure (primarily interest expense), asset base (primarily depreciation and amortization), items outside our control (primarily income taxes) and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. accordingly, we believe that this measure is useful for comparing general operating performance from period to period. in addition, we use various ebitda-based measures in determining the achievement of awards under certain of our incentive compensation programs. other companies may define adjusted ebitda differently and, as a result, our measure may not be directly comparable to measures of other companies. in addition, adjusted ebitda may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility. although we use the adjusted ebitda measure to assess the performance of our business, the use of the measure is limited because it does not include certain material expenses, such as interest and taxes, necessary to operate our business. adjusted ebitda should be considered in addition to, and not as a substitute for, gaap net income as a measure of performance. our presentation of this measure should not be construed as an indication that our future results will be unaffected by unusual or non-recurring items. this measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under gaap. because of these limitations, this measure is not intended as an alternative to net income as an indicator of our operating performance, as an alternative to any other measure of performance in conformity with gaap or as an alternative to cash flow provided by operating activities as a measure of liquidity. you should therefore not place undue reliance on this measure or ratios calculated using this measure. we also believe the adjusted net income measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of certain non-core items such as discontinued operations, acquisition related expenses, amortization expense, the tax impact of these certain non-core items, and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. to make the financial presentation more consistent with other public building products companies, beginning in the fourth quarter 2016 we included an addback for non-cash amortization expense related to acquisitions. accordingly, we believe that this measure is useful for comparing general operating performance from period to period. other companies may define adjusted net income differently and, as a result, our measure may not be directly comparable to measures of other companies. in addition, adjusted net income may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility. installed building products, inc. reconciliation of gaap to non-gaap measures adjusted net income calculations (unaudited, in thousands, except share and per share amounts) the table below reconciles adjusted net income to the most directly comparable gaap financial measure, net income, for the periods presented therein. per share figures may reflect rounding adjustments and consequently totals may not appear to sum. three months ended september 30, nine months ended september 30, 2022 2021 2022 2021 net income, as reported $ 60,978 $ 34,892 $ 154,704 $ 89,396 adjustments for adjusted net income share based compensation expense 3,212 3,535 10,290 10,228 acquisition related expenses (94 ) (252 ) 1,307 1,649 covid-19 expenses 1 2 311 303 365 gain on sale of assets — (499 ) — (499 ) amortization expense 2 11,370 9,224 33,728 26,798 legal reserve — — 845 — tax impact of adjusted items at a normalized tax rate 3 (3,767 ) (3,203 ) (12,083 ) (10,021 ) adjusted net income $ 71,701 $ 44,008 $ 189,094 $ 117,916 weighted average shares outstanding (diluted) 28,595,707 29,620,748 29,020,509 29,615,162 diluted net income per share, as reported $ 2.13 $ 1.18 $ 5.33 $ 3.02 adjustments for adjusted net income, net of tax impact, per diluted share 4 0.38 0.31 1.19 0.96 diluted adjusted net income per share $ 2.51 $ 1.49 $ 6.52 $ 3.98 1 addback of employee pay, employee medical expenses, and legal fees directly attributable to covid-19. 2 addback of all non-cash amortization resulting from business combinations. 3 normalized effective tax rate of 26.0% applied to periods presented. 4 includes adjustments related to the items noted above, net of tax. installed building products, inc. reconciliation of gaap to non-gaap measures adjusted gross profit calculations (unaudited, in thousands) three months ended september 30, nine months ended september 30, 2022 2021 2022 2021 gross profit, as reported $ 221,277 $ 155,884 $ 610,389 $ 433,197 share based compensation expense 164 161 484 287 covid-19 expense 1 2 310 4 360 adjusted gross profit $ 221,443 $ 156,355 $ 610,877 $ 433,844 adjusted gross profit - % total revenue 30.8 % 30.7 % 30.8 % 30.2 % 1 addback of employee pay, employee medical expenses, and legal fees directly attributable to covid-19. installed building products, inc. reconciliation of gaap to non-gaap measures adjusted selling and administrative expense calculations (unaudited, in thousands) three months ended september 30, nine months ended september 30, 2022 2021 2022 2021 selling expense $ 31,651 $ 24,188 $ 86,214 $ 67,677 administrative expense 84,345 68,056 247,519 199,607 selling and administrative, as reported 115,996 92,244 333,733 267,284 share based compensation expense 3,048 3,374 9,806 9,941 acquisition related expense (94 ) (252 ) 1,307 1,649 covid-19 expenses 1 — 1 299 5 legal reserve — — 845 — adjusted selling and administrative $ 113,042 $ 89,121 $ 321,476 $ 255,689 adjusted selling and administrative - % total revenue 15.7 % 17.5 % 16.2 % 17.8 % 1 addback of employee pay, employee medical expenses, and legal fees directly attributable to covid-19. installed building products, inc. reconciliation of gaap to non-gaap measures adjusted ebitda calculations (unaudited, in thousands) the table below reconciles adjusted ebitda to the most directly comparable gaap financial measure, net income, for the periods presented therein. per share figures may reflect rounding adjustments and consequently totals may not appear to sum. three months ended september 30, nine months ended september 30, 2022 2021 2022 2021 adjusted ebitda net income, as reported $ 60,978 $ 34,892 $ 154,704 $ 89,396 interest expense 10,668 7,687 31,669 22,781 provision for income tax 22,080 12,320 55,857 27,432 depreciation and amortization 23,361 20,152 68,881 59,296 ebitda 117,087 75,051 311,111 198,905 acquisition related expenses (94 ) (252 ) 1,307 1,649 share based compensation expense 3,212 3,535 10,290 10,228 covid-19 expenses 1 2 311 303 365 gain on sale of assets — (499 ) — (499 ) legal reserve — — 845 — adjusted ebitda $ 120,207 $ 78,146 $ 323,856 $ 210,648 adjusted ebitda margin 16.7 % 15.3 % 16.3 % 14.7 % 1 addback of employee pay, employee medical expenses, and legal fees directly attributable to covid-19. installed building products, inc. supplementary table (unaudited) three months ended september 30, nine months ended september 30, 2022 2021 2022 2021 period-over-period growth consolidated sales growth 41.1% 21.2% 38.2% 18.4% consolidated same branch sales growth 28.5% 11.2% 26.2% 8.9% installation 1 sales growth 33.5% 21.3% 31.9% 18.2% same branch sales growth 28.4% 11.2% 26.2% 8.6% single-family sales growth 39.2% 24.1% 38.2% 20.1% single-family same branch sales growth 35.3% 16.0% 32.8% 12.8% multi-family sales growth 33.9% 18.2% 29.7% 17.0% multi-family same branch sales growth 32.9% 10.9% 28.9% 7.0% residential sales growth 38.4% 23.2% 36.8% 19.6% residential same branch sales growth 34.9% 15.1% 32.1% 11.8% commercial sales growth 2 16.0% 17.5% 14.4% 12.1% commercial same branch sales growth 2.8% (0.2)% 4.4% (5.0)% other 1,3 sales growth 657.3% 23.0% 567.5% 44.0% same branch sales growth 44.3% 23.0% 43.8% 44.0% same branch sales growth - installation volume growth 4 7.5% 4.7% 7.9% 10.4% price/mix growth 4 27.1% 7.4% 22.2% (0.3)% u.s. housing market 5 total completions growth 6.5% (2.1)% 2.3% 5.9% single-family completions growth 8.1% 1.5% 5.4% 6.9% multi-family completions growth 5.6% (9.6)% (5.3)% 4.3% 1 during the three months ended march 31, 2022, we realigned our operating segments to reflect recent changes in our business. prior period disclosures in the above table have been recast to conform to the current period segment presentation. the segment change has no impact on the company's previously reported consolidated u.s. gaap financial results. 2 our commercial end market consists of heavy and light commercial projects. 3 other business segment category includes our manufacturing and distribution businesses operating segments. as of 1q22, installation segment end market growth metrics exclude the manufacturing and distribution businesses. our distribution businesses were acquired in december, 2021 and april, 2022. 4 the heavy commercial end market is excluded from these metrics given its much larger per-job revenue compared to our average job. 5 u.s. census bureau data, as revised. installed building products, inc. incremental revenue and adjusted ebitda margins (unaudited, in thousands) revenue increase three months ended september 30, nine months ended september 30, 2022 % total 2021 % total 2022 % total 2021 % total same branch $ 145,083 69.3 % $ 47,216 52.9 % $ 376,491 68.6 % $ 107,467 48.2 % acquired 64,269 30.7 % 42,060 47.1 % 171,937 31.4 % 115,704 51.8 % total $ 209,352 100.0 % $ 89,276 100.0 % $ 548,428 100.0 % $ 223,171 100.0 % adjusted ebitda margin contributions three months ended september 30, nine months ended september 30, 2022 % margin 2021 % margin 2022 % margin 2021 % margin same branch $ 35,873 24.7 % $ 6,220 13.2 % $ 92,808 24.7 % $ 14,011 13.0 % acquired 6,187 9.6 % 5,726 13.6 % 20,400 11.9 % 18,172 15.7 % total $ 42,060 20.1 % $ 11,946 13.4 % $ 113,208 20.6 % $ 32,183 14.4 %
