Installed building products reports record second quarter 2022 results 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 second quarter ended june 30, 2022. second quarter 2022 highlights (comparisons are to prior year period) net revenue increased 38.7% to a quarterly record of $676.7 million installation revenue increased 32.1% to $638.0 million, driven by strong growth across ibp’s residential new construction, repair and remodel, and commercial markets other revenue, which includes ibp’s manufacturing and distribution operations, increased from $5.6 million to $40.3 million, driven by strong operating results and a recent acquisition installation revenue increased 32.1% to $638.0 million, driven by strong growth across ibp’s residential new construction, repair and remodel, and commercial markets other revenue, which includes ibp’s manufacturing and distribution operations, increased from $5.6 million to $40.3 million, driven by strong operating results and a recent acquisition net income increased 61.0% to $59.9 million adjusted ebitda* increased 53.1% to $119.5 million net income per diluted share increased 65.0% to $2.07 adjusted net income per diluted share* increased 55.9% to $2.48 price/mix growth increased by a record 24.9% during the second quarter at june 30, 2022, ibp had $164.8 million in cash, cash equivalents, and investments declared second quarter dividend of $0.315 per share which was paid to shareholders on june 30, 2022 returned $59.3 million to shareholders in the second quarter through dividends and share repurchases recent developments acquired ozark's modern insulation and insulation pros ibp's board of directors authorized the company to purchase up to $200 million of stock through august 10, 2023 under a new stock repurchase program, replacing the existing program robert h. schottenstein appointed to the company’s board of directors ibp’s board of directors declared the third quarter regular cash dividend of $0.315 per share “we achieved record operating and financial results during the 2022 second quarter as our team worked hard to support our customers and capitalize on strong end-market demand. the second quarter benefited from the continued success of our local branches, which prudently align our selling prices with the value we offer our customers. our price/mix increased 24.9%, driving strong incremental margins and earnings,” stated jeff edwards, chairman and chief executive officer. “ibp’s asset-light business model continues to generate substantial operating cash flow, which we allocate primarily toward our strategic acquisitions, dividend distributions, and share repurchases. year-to-date, we have returned over $144.5 million in cash back to our shareholders through our regular cash dividend, annual variable dividend, and the existing share repurchase program. while interest rates continue to increase from historically low levels, we believe demand for our installation service is strong and the current residential construction backlog continues to support our business,” 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 $71 million of annual revenue and expects to acquire at least $100 million of revenue for the full year. during the 2022 second quarter and august, ibp announced the following acquisitions: in april 2022, ibp acquired central aluminum supply corporation, a trenton, new jersey based distributor of gutter supplies and accessories with annual revenue of approximately $45 million. in april 2022, ibp made a minority investment and became the first u.s. client for energi.ai, a unified data driven, artificial intelligence (“ai”), and machine learning platform for climate action. in may 2022, ibp acquired tri-county insulation and acoustical contractors, a santa clara, california based installer of fiberglass insulation, spray foam insulation, and acoustical ceiling insulation with annual revenue of approximately $14 million. in august 2022, ibp acquired ozark's modern insulation and insulation pros, missouri based installers, which primarily install fiberglass insulation, with combined annual revenue of over $3 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 september 30, 2022, to stockholders of record on september 15, 2022. through the first six months of 2022, ibp repurchased over one million shares of its common stock at a total cost of $99.7 million, including commissions. the board of directors authorized a new stock repurchase program allowing the company to repurchase up to $200 million of its stock through august 10, 2023. this new program replaces the existing program. second quarter 2022 results overview for the second quarter of 2022, net revenue was a quarterly record of $676.7 million, an increase of 38.7% from $488.1 million for the second quarter of 2021. on a consolidated same branch basis, net revenue improved 27.3% from the prior year quarter, which was attributable to a 7.0% increase in the volume of jobs completed and a 24.9% increase in price/mix during the second quarter relative to the same period last year. residential sales growth within our installation segment was 32.7% on a same branch basis in the quarter. commercial sales growth of 13.9% was largely driven by recent acquisitions with same branch sales up 4.7% from the prior year quarter. gross profit improved 42.7% to $216.7 million from $151.9 million in the prior year quarter. adjusted gross profit* as a percent of total revenue was 32.0% which adjusts for the company’s share-based compensation expense, as well as expenses directly related to covid-19, compared to 31.1% for the same period last year. selling and administrative expense, as a percent of net revenue, was 16.8% compared to 18.3% in the prior year quarter. adjusted selling and administrative expense*, as a percent of net revenue, was 16.1% compared to 17.4% in the prior year quarter. net income was $59.9 million, or $2.07 per diluted share, compared to $37.2 million, or $1.26 per diluted share in the prior year quarter. adjusted net income* was $71.7 million, or $2.48 per diluted share, compared to $47.1 million, or $1.59 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 $119.5 million, a 53.1% increase from $78.0 million in the prior year quarter, largely due to strong sales growth, improved gross margin, 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 august 4, 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 september 4, 2022, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13730016. 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 210 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, 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; any recurrence of covid-19, including through any new variant strains of the virus, and the related surges in positive covid-19 cases; 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; 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. additional information - stock repurchase program under the repurchase program, the company may purchase shares of its common stock through open market transactions, accelerated share repurchase transactions, privately negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including rule 10b-18 of the securities exchange act of 1934, as amended and pursuant to any trading plan that may be adopted in accordance with rule 10b5-1 of the securities exchange act of 1934, as amended. the timing and amount of any repurchases under this program will be determined by the company’s management at its discretion based on a variety of factors, including the market price of our common stock, corporate considerations, general market and economic conditions, and legal requirements. the program may be modified, discontinued or suspended at any time or from time to time. the company anticipates funding for this program to come from available corporate funds, including cash on hand and future cash flow. installed building products, inc. condensed consolidated statements of operations and comprehensive income (unaudited, in thousands, except share and per share amounts) three months ended june 30, six months ended june 30, 2022 2021 2022 2021 net revenue $ 676,749 $ 488,098 $ 1,264,241 $ 925,164 cost of sales 460,040 336,212 875,129 647,851 gross profit 216,709 151,886 389,112 277,313 operating expenses selling 29,371 22,631 54,563 43,489 administrative 84,030 66,474 163,174 131,551 amortization 11,261 9,178 22,358 17,574 operating income 92,047 53,603 149,017 84,699 other expense, net interest expense, net 10,401 7,520 21,001 15,094 other expense (income) 368 (92 ) 513 (11 ) income before income taxes 81,278 46,175 127,503 69,616 income tax provision 21,374 8,962 33,777 15,112 net income $ 59,904 $ 37,213 $ 93,726 $ 54,504 other comprehensive income (loss), net of tax: net change on cash flow hedges, net of tax (provision) benefit of $(3,603) and $1,244 for the three months ended june 30, 2022 and 2021, respectively, and $(10,033) and $(2,184) for the six months ended june 30, 2022 and 2021, respectively 10,150 (3,687 ) 28,261 6,470 comprehensive income $ 70,054 $ 33,526 $ 121,987 $ 60,974 earnings per share: basic $ 2.08 $ 1.27 $ 3.23 $ 1.86 diluted $ 2.07 $ 1.26 $ 3.21 $ 1.84 weighted average shares outstanding: basic 28,781,866 29,374,801 29,040,693 29,330,910 diluted 28,894,140 29,609,744 29,235,997 29,612,101 cash dividends declared per share $ 0.32 $ 0.30 $ 1.53 $ 0.60 installed building products, inc. condensed consolidated balance sheets (unaudited, in thousands, except share and per share amounts) june 30, december 31, 2022 2021 assets current assets cash and cash equivalents $ 69,940 $ 333,485 investments 94,865 — accounts receivable (less allowance for credit losses of $9,264 and $8,717 at june 30, 2022 and december 31, 2021, respectively) 384,696 312,767 inventories 192,387 143,039 prepaid expenses and other current assets 74,830 70,025 total current assets 816,718 859,316 property and equipment, net 114,699 105,933 operating lease right-of-use assets 73,280 69,871 goodwill 354,971 322,517 customer relationships, net 191,375 178,264 other intangibles, net 94,443 86,157 other non-current assets 56,601 31,144 total assets $ 1,702,087 $ 1,653,202 liabilities and stockholders' equity current liabilities current maturities of long-term debt $ 30,642 $ 30,839 current maturities of operating lease obligations 24,696 23,224 current maturities of finance lease obligations 2,049 1,747 accounts payable 155,287 132,705 accrued compensation 65,692 50,964 other current liabilities 84,524 68,090 total current liabilities 362,890 307,569 long-term debt 828,632 832,193 operating lease obligations 48,298 46,075 finance lease obligations 4,462 3,297 deferred income taxes 14,834 4,819 other long-term liabilities 42,370 42,409 total liabilities 1,301,486 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 june 30, 2022 and december 31, 2021, respectively — — common stock; $0.01 par value: 100,000,000 authorized, 33,428,587 and 33,271,659 issued and 28,745,614 and 29,706,401 shares outstanding at june 30, 2022 and december 31, 2021, respectively 334 333 additional paid in capital 222,270 211,430 retained earnings 401,326 352,543 treasury stock; at cost: 4,682,973 and 3,565,258 shares at june 30, 2022 and december 31, 2021, respectively (251,363 ) (147,239 ) accumulated other comprehensive income (loss) 28,034 (227 ) total stockholders’ equity 400,601 416,840 total liabilities and stockholders’ equity $ 1,702,087 $ 1,653,202 installed building products, inc. condensed consolidated statements of cash flows (unaudited, in thousands) six months ended june 30, 2022 2021 cash flows from operating activities net income $ 93,726 $ 54,504 adjustments to reconcile net income to net cash provided by operating activities depreciation and amortization of property and equipment 23,162 21,570 amortization of operating lease right-of-use assets 13,224 10,549 amortization of intangibles 22,358 17,574 amortization of deferred financing costs and debt discount 961 663 provision for credit losses 1,887 102 gain on sale of property and equipment (511 ) (560 ) noncash stock compensation 7,078 6,693 amortization of terminated interest rate swap 1,668 1,602 changes in assets and liabilities, excluding effects of acquisitions accounts receivable (66,719 ) (3,953 ) inventories (33,481 ) (19,973 ) other assets (1,474 ) (1,225 ) accounts payable 19,259 3,724 income taxes receivable/payable 11,466 (297 ) other liabilities 6,855 (7,538 ) net cash provided by operating activities 99,460 83,435 cash flows from investing activities purchases of investments (124,713 ) — maturities of short term investments 30,000 — purchases of property and equipment (24,512 ) (20,278 ) acquisitions of businesses, net of cash acquired of $337 and $168 in 2,022 and 2021, respectively (72,463 ) (67,715 ) proceeds from sale of property and equipment 830 1,112 other (7,047 ) (5 ) net cash used in investing activities (197,905 ) (86,886 ) cash flows from financing activities payments on term loan (2,500 ) — proceeds from vehicle and equipment notes payable 13,325 15,103 debt issuance costs (657 ) — principal payments on long-term debt (16,158 ) (13,012 ) principal payments on finance lease obligations (1,085 ) (1,041 ) dividends paid (44,877 ) (17,607 ) acquisition-related obligations (9,024 ) (2,050 ) repurchase of common stock (99,665 ) — surrender of common stock awards by employees (4,459 ) (5,551 ) net cash used in financing activities (165,100 ) (24,158 ) net change in cash and cash equivalents (263,545 ) (27,609 ) cash and cash equivalents at beginning of period 333,485 231,520 cash and cash equivalents at end of period $ 69,940 $ 203,911 supplemental disclosures of cash flow information net cash paid during the period for: interest $ 22,586 $ 12,899 income taxes, net of refunds 22,311 15,288 supplemental disclosure of noncash activities right-of-use assets obtained in exchange for operating lease obligations 16,561 16,967 release of indemnification of acquisition-related debt 980 2,036 property and equipment obtained in exchange for finance lease obligations 2,600 1,134 seller obligations in connection with acquisition of businesses 25,278 12,954 unpaid purchases of property and equipment included in accounts payable 1,058 886 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 june 30, 2022 three months ended june 30, 2021 installation other eliminations consolidated installation other eliminations consolidated revenue $ 637,998 $ 40,291 $ (1,540 ) $ 676,749 $ 482,965 $ 5,623 $ (490 ) $ 488,098 cost of sales (exclusive of depreciation and amortization shown separately below) 419,812 30,392 (1,290 ) 448,914 322,244 4,076 (386 ) 325,934 adjusted gross profit 218,186 9,899 (250 ) 227,835 160,721 1,547 (104 ) 162,164 depreciation and amortization 11,126 10,278 gross profit, as reported 216,709 151,886 selling 29,371 22,631 administrative 84,030 66,474 amortization 11,261 9,178 operating income 92,047 53,603 interest expense, net 10,401 7,520 other expense (income) 368 (92 ) income before income taxes $ 81,278 $ 46,175 three months ended june 30, 2022 three months ended june 30, 2021 installation other eliminations consolidated installation other eliminations consolidated adjusted gross profit percentage 34.2 % 24.6 % 16.2 % 33.7 % 33.3 % 27.5 % 21.2 % 33.2 % six months ended june 30, 2022 six months ended june 30, 2021 installation other eliminations consolidated installation other eliminations consolidated revenue $ 1,199,629 $ 66,941 $ (2,329 ) $ 1,264,241 $ 915,142 $ 10,877 $ (855 ) $ 925,164 cost of sales (exclusive of depreciation and amortization shown separately below) 805,504 49,765 (1,899 ) 853,370 620,077 8,143 (669 ) 627,551 adjusted gross profit 394,125 17,176 (430 ) 410,871 295,065 2,734 (186 ) 297,613 depreciation and amortization 21,759 20,300 gross profit, as reported 389,112 277,313 selling 54,563 43,489 administrative 163,174 131,551 amortization 22,358 17,574 operating income 149,017 84,699 interest expense, net 21,001 15,094 other expense (income) 513 (11 ) income before income taxes $ 127,503 $ 69,616 six months ended june 30, 2022 six months ended june 30, 2021 installation other eliminations consolidated installation other eliminations consolidated adjusted gross profit percentage 32.9 % 25.7 % 18.5 % 32.5 % 32.2 % 25.1 % 21.8 % 32.2 % 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 june 30, six months ended june 30, 2022 2021 2022 2021 installation residential new construction $ 505,513 75 % $ 369,736 76 % $ 947,916 75 % $ 696,979 75 % repair and remodel 37,965 5 % 30,245 6 % 70,606 6 % 58,534 7 % commercial 94,520 14 % 82,984 17 % 181,107 14 % 159,629 17 % net revenue - installation $ 637,998 94 % $ 482,965 99 % $ 1,199,629 95 % $ 915,142 99 % other 1 38,751 6 % 5,133 1 % 64,612 5 % 10,022 1 % net revenue, as reported $ 676,749 100 % $ 488,098 100 % $ 1,264,241 100 % $ 925,164 100 % 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 june 30, six months ended june 30, 2022 2021 2022 2021 net income, as reported $ 59,904 $ 37,213 $ 93,726 $ 54,504 adjustments for adjusted net income share based compensation expense 3,660 3,497 7,078 6,693 acquisition related expenses 737 740 1,401 1,901 covid-19 expenses 1 — 1 301 53 amortization expense 2 11,261 9,178 22,358 17,574 legal reserve 280 — 845 — tax impact of adjusted items at a normalized tax rate 3 (4,144 ) (3,488 ) (8,316 ) (6,817 ) adjusted net income $ 71,698 $ 47,141 $ 117,393 $ 73,908 weighted average shares outstanding (diluted) 28,894,140 29,609,744 29,235,997 29,612,101 diluted net income per share, as reported $ 2.07 $ 1.26 $ 3.21 $ 1.84 adjustments for adjusted net income, net of tax impact, per diluted share 4 0.41 0.33 0.82 0.66 diluted adjusted net income per share $ 2.48 $ 1.59 $ 4.03 $ 2.50 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 june 30, six months ended june 30, 2022 2021 2022 2021 gross profit $ 216,709 $ 151,886 $ 389,112 $ 277,313 share based compensation expense 171 63 320 125 covid-19 expense 1 — — 2 49 adjusted gross profit $ 216,880 $ 151,949 $ 389,434 $ 277,487 adjusted gross profit - % total revenue 32.0 % 31.1 % 30.8 % 30.0 % 1 addback of employee pay and employee medical expenses 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 june 30, six months ended june 30, 2022 2021 2022 2021 selling expense $ 29,371 $ 22,631 $ 54,563 $ 43,489 administrative expense 84,030 66,474 163,174 131,551 selling and administrative $ 113,401 $ 89,105 $ 217,737 $ 175,040 share based compensation expense 3,489 3,434 6,758 6,567 acquisition related expense 737 740 1,401 1,901 covid-19 expenses 1 — 1 299 4 legal reserve 280 — 845 — adjusted selling and administrative $ 108,895 $ 84,930 $ 208,434 $ 166,568 adjusted selling and administrative - % total revenue 16.1 % 17.4 % 16.5 % 18.0 % 1 addback of employee pay and employee medical expenses 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 june 30, six months ended june 30, 2022 2021 2022 2021 adjusted ebitda net income (gaap) $ 59,904 $ 37,213 $ 93,726 $ 54,504 interest expense 10,401 7,520 21,001 15,094 provision for income tax 21,374 8,962 33,777 15,112 depreciation and amortization 23,095 20,085 45,520 39,144 ebitda 114,774 73,780 194,024 123,854 acquisition related expenses 737 740 1,401 1,901 share based compensation expense 3,660 3,497 7,078 6,693 covid-19 expenses 1 — 1 301 53 legal reserve 280 — 845 — adjusted ebitda $ 119,451 $ 78,018 $ 203,649 $ 132,501 adjusted ebitda margin 17.7 % 16.0 % 16.1 % 14.3 % 1 addback of employee pay and employee medical expenses directly attributable to covid-19. installed building products, inc. supplementary table (unaudited) three months ended june 30, six months ended june 30, 2022 2021 2022 2021 period-over-period growth consolidated sales growth 38.7 % 23.9 % 36.7 % 16.9 % consolidated same branch sales growth 27.3 % 13.1 % 25.0 % 7.6 % installation 1 sales growth 32.1 % 23.5 % 31.1 % 16.7 % same branch sales growth 27.4 % 12.6 % 24.9 % 7.3 % single-family sales growth 37.8 % 26.6 % 37.6 % 17.9 % single-family same branch sales growth 33.1 % 17.7 % 31.4 % 11.1 % multi-family same branch sales growth 30.3 % 14.1 % 27.6 % 16.3 % multi-family same branch 30.3 % 3.5 % 26.8 % 5.0 % residential sales growth 36.6 % 24.4 % 35.9 % 17.7 % residential same branch sales growth 32.7 % 15.2 % 30.6 % 10.1 % commercial sales growth 2 13.9 % 16.2 % 13.5 % 9.3 % commercial same branch sales growth 4.7 % (0.6 )% 5.3 % (7.4 )% other 1,3 sales growth 616.5 % 89.0 % 515.4 % 59.9 % same branch sales growth 36.8 % 89.0 % 43.5 % 59.9 % same branch sales growth - installation volume growth 4 7.0 % 17.1 % 8.2 % 13.5 % price/mix growth 4 24.9 % (2.8 )% 19.8 % (4.4 )% u.s. housing market 5 total completions growth 2.0 % 12.0 % (0.6 )% 10.7 % single-family completions growth 5.7 % 8.8 % 3.7 % 10.0 % multi-family completions growth (5.9 )% 22.6 % (12.2 )% 14.0 % 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. 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 june 30, six months ended june 30, 2022 % total 2021 % total 2022 % total 2021 % total same branch $ 133,141 70.6 % $ 51,474 54.7 % $ 231,408 68.2 % $ 60,251 45.0 % acquired 55,509 29.4 % 42,686 45.3 % 107,668 31.8 % 73,644 55.0 % total $ 188,650 100.0 % $ 94,160 100.0 % $ 339,076 100.0 % $ 133,895 100.0 % adjusted ebitda margin contributions three months ended june 30, six months ended june 30, 2022 % margin 2021 % margin 2022 % margin 2021 % margin same branch $ 34,406 25.8 % $ 6,871 13.3 % $ 56,935 24.6 % $ 7,791 12.9 % acquired 7,027 12.7 % 8,053 18.9 % 14,213 13.2 % 12,446 16.9 % total $ 41,433 22.0 % $ 14,924 15.8 % $ 71,148 21.0 % $ 20,237 15.1 %
