Installed building products reports results for third quarter 2015
Columbus, ohio--(business wire)--installed building products, inc. (the “company” or “ibp”) (nyse: ibp), an industry-leading installer of insulation and complementary building products, announced today results for the third quarter ended september 30, 2015. third quarter 2015 highlights net revenue increased 29.3% to $181.6 million compared to third quarter 2014; same branch sales increased 8.4% compared to third quarter 2014 attributable to higher volume, price gains and more favorable project mix adjusted ebitda improved 53.9% to $22.4 million compared to third quarter 2014 operating income increased 43.2% to $15.5 million compared to third quarter 2014 adjusted net income per diluted share from continuing operations increased to $0.32, compared to $0.20 per diluted share in the third quarter 2014. gaap earnings per diluted share attributable to common stockholders increased to $0.30 compared to earnings per diluted share of $0.19 in the third quarter 2014 in july 2015, acquired ecologic energy solutions, based in stamford, connecticut, which enhances the company’s presence in the connecticut, new york and northern new jersey markets, with trailing twelve month revenues ending april 30, 2015 of approximately $6.0 million in august 2015, acquired eastern contractor services based in new jersey and operating as parker insulation and building products in southeastern texas, which enhances the company’s presence in new jersey, the new york metropolitan area, and texas, with trailing twelve month revenues ending july 31, 2015 of approximately $23 million “we successfully executed our growth-oriented business strategy in the third quarter, which continues to produce strong financial results,” stated jeff edwards, chairman and chief executive officer. “revenues grew $41.1 million, or 29.3%, for the 2015 third quarter as a result of an $11.7 million increase in organic revenues and a $29.4 million increase in revenues from recent acquisitions.” “the housing market continues to recover in 2015 driven by growth in housing permits, starts, and completions. during the third quarter, we continued to increase sales organically, above the pace of single family completions. acquisitions remain an important part of our business strategy and during 2015 we have acquired $85 million of annual revenues, which are quickly contributing to both revenues and earnings. our capital position remains strong, and we have a robust pipeline of potential acquisitions for the remainder of the year and through 2016. with approximately two months remaining in 2015, we believe we will finish the year strong and that this positive momentum will continue into 2016,” concluded mr. edwards. third quarter 2015 results overview for the third quarter of 2015, net revenue was $181.6 million, an increase of 29.3% from $140.5 million in the third quarter of 2014. on a same branch basis, net revenue improved 8.4% from the prior year quarter, with approximately 40% of the growth attributable to an increase in the number of completed jobs and the remainder through price gains and a more favorable customer and product mix. gross profit improved 34.8% to $53.4 million from $39.6 million in the prior year quarter. gross margin expanded to 29.4% from 28.2% in the prior year quarter, primarily due to favorable leverage on higher net revenue and increased cost efficiencies. selling, general and administrative expense as a percentage of net revenue was 19.9% compared to 20.0% in the prior year quarter, primarily due to higher net revenues which offset costs to support higher end market activity. adjusted ebitda was $22.4 million, a 53.9% increase from $14.6 million in the prior year quarter, largely due to higher net revenue and improvements in gross margin and sg&a leverage. adjusted ebitda as a percentage of net revenue grew 200 basis points to 12.4%, compared to 10.4% in the prior year quarter. operating income was $15.5 million, an increase of 43.2% from $10.8 million in the prior year quarter. adjusted net income from continuing operations was $10.0 million, or $0.32 per diluted share, compared to $6.3 million, or $0.20 per diluted share in the prior year quarter. adjusted net income from continuing operations adjusts for the impact of non-core items in both periods. on a gaap basis, net income attributable to common stockholders was $9.5 million, or $0.30 per diluted share, compared to net income attributable to common stockholders of $6.2 million, or $0.19 per diluted share, in the prior year quarter. conference call and webcast the company will host a conference call and webcast on wednesday, october 28, 2015 at 10:00 a.m. eastern time to discuss these results. to participate in the call, please dial 877-407-9039 (domestic) or 201-689-8470 (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 november 28, 2015, by dialing 877-870-5176 (domestic) or 858-384-5517 (international) and entering the passcode 13622913. about installed building products installed building products, inc. is the nation's second largest insulation installer for the residential new construction market and is also a diversified installer of complementary building products, including garage doors, rain gutters, shower doors, closet shelving and mirrors, throughout the united states. the company manages all aspects of the installation process for its customers, including direct purchases of materials from national manufacturers, 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 from its national network of 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 demand for our services, expansion of our national footprint, our ability to capitalize on the new home construction recovery, our ability to strengthen our market position, our ability to pursue value-enhancing acquisitions, our ability to improve profitability and expectations for demand for our services for the remainder of 2015. 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 factors discussed in the “risk factors” section of the company’s annual report on form 10-k for the year ended december 31, 2014, as the same may be updated from time to time in our subsequent filings with the securities and exchange commission. 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. 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 net income from continuing operations and adjusted gross profit. the reasons for the use of adjusted ebitda, adjusted net income from continuing operations and adjusted gross profit, reconciliations of adjusted ebitda, adjusted net income from continuing operations and adjusted gross profit to the most directly comparable gaap measures and other information relating to adjusted ebitda, adjusted net income from continuing operations and adjusted gross profit are included below following the unaudited condensed consolidated financial statements. accounts receivable (less allowance for doubtful accounts of $3,609 and $2,661 at september 30, 2015 and december 31, 2014, respectively) preferred stock; $0.01 par value: 5,000,000 shares authorized, 0 issued and outstanding at september 30, 2015 and december 31, 2014, respectively common stock; $0.01 par value: 100,000,000 shares authorized, 31,982,888 and 31,839,087 issued and 31,366,328 and 31,539,087 outstanding at september 30, 2015 and december 31, 2014, respectively installed building products, inc. condensed consolidated statements of cash flows (unaudited, in thousands) reconciliation of non-gaap financial measures adjusted ebitda and adjusted net income from continuing operations measure performance by adjusting ebitda and gaap net income attributable to common stockholders, 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 (loss) 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 (loss) 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 (used in) 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 from continuing operations 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 accretion charges on redeemable preferred stock, discontinued operations, public offering costs, 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. accordingly, we believe that this measure is useful for comparing general operating performance from period to period. other companies may define adjusted net income from continuing operations differently and, as a result, our measure may not be directly comparable to measures of other companies. in addition, adjusted net income from continuing operations may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility. we believe the adjusted gross profit 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 depreciation and the effect of certain non-core items. accordingly, we believe that this measure is useful for comparing general operating performance from period to period. other companies may define adjusted gross profit differently and, as a result, our measure may not be directly comparable to measures of other companies. installed building products, inc.reconciliation of gaap to non-gaap measures(unaudited, in thousands, except share and per share amounts) the table below reconciles adjusted net income from continuing operations to the most directly comparable gaap financial measure, net income (loss) attributable to common stockholders, for the periods presented therein. diluted net income (loss) per share attributable to common stockholders, as reported per share figures in the above earnings per share calculation table may reflect rounding adjustments and consequently totals may not appear to sum. the table below reconciles adjusted ebitda to the most directly comparable gaap financial measure, net income, for the periods presented therein. the table below reconciles adjusted gross profit to the most directly comparable gaap financial measure, gross profit, for the periods presented therein.
