糖心vlog官网

TopBuild Reports Strong Second Quarter 2017 Results

8.6% Operating Margin, 8.9% on an Adjusted Basis
$0.63 Per Diluted Share Income from Continuing Operations
$0.67 Per Diluted Share on an Adjusted Basis

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$83 million of anticipated annual incremental revenue from companies acquired in 2017

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DAYTONA BEACH, Fla., Aug. 08, 2017 (GLOBE NEWSWIRE) -- 糖心vlog官网. (NYSE:BLD), the leading purchaser, installer and distributor of insulation products to the United States construction industry, today reported results for the second quarter ended June 30, 2017.听

Jerry Volas, Chief Executive Officer, stated, 鈥�We had another outstanding quarter as we continue to grow our two business segments and expand operating margins.听 Commercial and residential new construction are demonstrating consistent strength and we continue to benefit from our business model and national scale.听听听

鈥淟ooking ahead, we have strong momentum going into the second half of the year.听 Our focus remains on driving top line growth and improving operational efficiencies throughout the Company, generating strong results for our shareholders.鈥�

Second Quarter Financial Highlights
(unless otherwise indicated, comparisons are to the quarter ended June 30, 2016)

• Net sales increased 9.9% to $474.5 million, primarily driven by sales volume growth in both operating segments as well as acquisitions. On a same branch basis, revenue increased 5.1% to $453.6 million.听
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• Gross margin expanded 200 basis points to 24.6%.
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• Operating profit was $40.8 million, compared to operating profit of $26.8 million.听 On an adjusted basis, operating profit was $42.2 million, compared to $27.4 million, a 53.8% improvement.
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• Operating margin was 8.6%, up 240 basis points.听 Adjusted operating margin improved 250 basis points to 8.9%.
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• Income from continuing operations was $23.5 million, or $0.63 per diluted share, compared to $15.6 million, or $0.41 per diluted share. Adjusted income from continuing operations was $25.0 million, or $0.67 per diluted share, compared to $16.2 million, or $0.43 per diluted share.听
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• Adjusted EBITDA was $48.2 million, compared to $32.6 million, a 48.1% increase.听 Incremental EBITDA margin was 36.5%. On a same branch basis, adjusted EBITDA was $45.6 million, a 40.1% increase, and incremental EBITDA margin was 59.1%.听
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• The seven acquisitions completed over the past 12 months contributed $20.8 million of revenue.听 Incremental EBITDA related to these acquisitions improved 680 basis points from first quarter 2017 to 12.5%.
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• At June 30, 2017, the Company had cash and cash equivalents of $94.2 million, availability under its revolving credit facility of $201.0 million and $100 million available under a delayed draw term loan for total liquidity of $395.2 million.

Six Month Financial Highlights
(unless otherwise indicated, comparisons are to six months ended June 30, 2016)

• Net sales increased 8.3% to $915.8 million. On a same branch basis, revenue increased 4.9% to $887.4 million.听
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• Gross margin expanded 170 basis points to 23.8%.
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• Operating profit was $37.3 million, compared to operating profit of $46.6 million.听 In the first quarter of 2017, the Company reported an operating loss of $3.5 million related to a $30 million legal settlement.听 On an adjusted basis, operating profit was $70.8 million, compared to $48.2 million, a 46.8% improvement.
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• Operating margin was 4.1%, down 140 basis points.听 Adjusted operating margin improved 200 basis points to 7.7%.听
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• Income from continuing operations was $21.7 million, or $0.58 per diluted share, compared to $26.7 million, or $0.70 per diluted share.听 Adjusted income from continuing operations was $42.0 million, or $1.12 per diluted share, compared to $28.1 million, or $0.74 per diluted share.听
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• Adjusted EBITDA was $82.1 million, compared to $57.8 million, a 42.0% increase.听 Incremental EBITDA margin was 34.6%. On a same branch basis, adjusted EBITDA grew 36.7% to $79.1 million and incremental EBITDA margin was 50.8%.听

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Operating Segment Highlights ($ in 000s)
(comparisons are to the quarter ended June 30, 2016)

Capital Allocation

Acquisitions

In the second quarter, the Company acquired Superior Insulation Products, a residential insulation company, and Canyon Insulation, a heavy commercial insulation and firestopping company.听 Combined, these companies generated approximately $40 million in revenue for 2016.听 Year-to-date, through August 8, 2017, the Company has closed six acquisitions, four concentrating on residential insulation and two on heavy commercial.听 Combined, these acquisitions are expected to generate approximately $83 million of incremental revenue on an annual basis. 听

Volas stated, 鈥淎cquisitions remain our number one capital allocation priority and the pipeline of prospects our M&A team is currently evaluating is robust.听 Year-to-date, we鈥檝e completed six acquisitions that are expected to contribute approximately $83 million of incremental annual revenue.鈥澨�

Share Repurchases
In the second quarter, under the $200 million share repurchase program announced on February 28, 2017, the Company repurchased 461,358 shares at an average price of $47.48 per share.听 Year-to-date, through June 30, the Company has acquired 858,393 shares at an average share price of $45.77.听

In addition, as previously announced, the Company entered into an agreement with Bank of America Merrill Lynch (BofAML) to repurchase $100 million of the Company鈥檚 common stock under an accelerated share repurchase program.听 On July 5^th, the Company made a payment of $100.0 million to BofAML, using $30 million of cash on hand and borrowing $70 million under its revolving facility.听 In exchange, the Company received approximately 1.5 million shares with a value of approximately $80 million.听 The remaining $20 million balance is expected to settle no later than the end of the first quarter of 2018.听

Additional Information
Quarterly supplemental materials, including a presentation that will be referenced on today鈥檚 conference call, are available on the 鈥淚nvestors鈥� section of the Company鈥檚 website at .

Conference Call
A conference call to discuss second quarter 2017 financial results is scheduled for today, Tuesday, August 8, at 9:00 a.m. Eastern Time.听 The call may be accessed by dialing (877) 256-5211.听 The conference call will be webcast simultaneously on the 鈥淚nvestors鈥� section of the Company鈥檚 website at . A replay will be available for one week beginning at 11:00 a.m. Eastern Time and may be accessed by dialing (800) 633-8284 and entering the passcode: 21842821.

About TopBuild

糖心vlog官网., headquartered in Daytona Beach, Florida, is the leading purchaser, installer and distributor of insulation products to the U.S. construction industry. We provide insulation services nationwide through TruTeam^庐, which has over 175 branches, and through Service Partners^庐 which distributes insulation from over 70 branches.听 We leverage our national footprint to gain economies of scale while capitalizing on our local market presence to forge strong relationships with our customers.听 To learn more about TopBuild please visit our website at .

Use of Non-GAAP Financial Measures
EBITDA, incremental EBITDA margin, the 鈥渁djusted鈥� financial measures presented above, and figures presented on a 鈥渟ame branch basis鈥� are not calculated in accordance with U.S. generally accepted accounting principles (鈥淕AAP鈥�).听 The Company believes that these non-GAAP financial measures, which are used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods.听 听We define same branch sales as sales from branches in operation for at least 12 full calendar months.听 Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release.听 Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company鈥檚 reported results under GAAP.听 Additional information may be found in the Company鈥檚 filings with the Securities and Exchange Commission which are available on TopBuild鈥檚 website under 鈥淚nvestors鈥� at .

Safe Harbor Statement

This press release contains 鈥渇orward-looking statements鈥� within the meaning of the Private Securities Litigation Reform Act.听 These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results.听 These forward-looking statements are distinguished by use of words such as 鈥渨ill,鈥� 鈥渨ould,鈥� 鈥渁nticipate,鈥� 鈥渆xpect,鈥� 鈥渂elieve,鈥� 鈥渄esigned,鈥� 鈥減lan鈥� or 鈥渋ntend,鈥� the negative of these terms, and similar references to future periods.听 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.听 Our forward-looking statements contained herein speak only as of the date of this press release.听 Factors or events that we cannot predict, including those described in the risk factors contained in our filings with the Securities and Exchange Commission, may cause our actual results to differ from those expressed in forward-looking statements.听 Although TopBuild believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

(tables follow)

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糖心vlog官网 and Media Contact
Tabitha Zane
tabitha.zane@topbuild.com
386-763-8801

Released August 8, 2017