糖心vlog官网

TopBuild Reports Third Quarter 2017 Results

10.1% Operating Margin, 10.3% on an Adjusted Basis,听$0.88 Per Diluted Share Income from Continuing Operations,听$0.83 Per Diluted Share on an Adjusted Basis

DAYTONA BEACH, Fla., Nov. 07, 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, 鈥淲e continue to demonstrate the efficiency of our operating model through margin expansion and bottom line growth.听 While there was some negative impact to our top line from weather related issues in the third quarter, this should be recovered in a future period.听

鈥淟ooking ahead we see continued strength in both the residential and commercial markets.听 Our national scale should remain a strong competitive advantage for us as both capacity and labor continue to tighten.鈥�

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

• Net sales increased 7.9% to $489.0 million, primarily driven by sales volume growth and price increases in both operating segments as well as through acquisitions. On a same branch basis, revenue increased 2.7% to $464.6 million.听
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• Gross margin expanded 80 basis points to 24.7%.
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• Operating profit was $49.6 million, compared to $39.1 million.听 On an adjusted basis, operating profit was $50.3 million, compared to $39.6 million, a 27.0% improvement.
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• Operating margin was 10.1%, up 150 basis points.听 Adjusted operating margin improved 160 basis points to 10.3%.
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• Income from continuing operations was $31.4 million, or $0.88 per diluted share, compared to $24.6 million, or $0.65 per diluted share. Adjusted income from continuing operations was $29.7 million, or $0.83 per diluted share, compared to $23.8 million, or $0.63 per diluted share.听
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• Adjusted EBITDA was $57.6 million, compared to $44.6 million, a 28.9% increase.听 Incremental EBITDA margin was 36.0%. On a same branch basis, adjusted EBITDA was $53.7 million, a 20.3% increase, and incremental EBITDA margin was 74.2%.听

Nine Month Financial Highlights
(unless otherwise indicated, comparisons are to nine months ended September 30, 2016)

• Net sales increased 8.2% to $1,404.9 million. On a same branch basis, revenue increased 4.2% to $1,352.0 million.听
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• Gross margin expanded 140 basis points to 24.1%.
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• Operating profit was $86.9 million, compared to operating profit of $85.7 million.听 On an adjusted basis, operating profit was $121.0 million, compared to $87.8 million, a 37.9% improvement.
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• Operating margin was 6.2%, down 40 basis points.听 Adjusted operating margin improved 180 basis points to 8.6%.听
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• Income from continuing operations was $53.1 million, or $1.44 per diluted share, compared to $51.3 million, or $1.35 per diluted share.听 Adjusted income from continuing operations was $71.6 million, or $1.94 per diluted share, compared to $51.9 million, or $1.37 per diluted share.听
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• Adjusted EBITDA was $139.7 million, compared to $102.5 million, a 36.3% increase.听 Incremental EBITDA margin was 35.0%. On a same branch basis, adjusted EBITDA grew 29.6% to $132.7 million and incremental EBITDA margin was 56.1%.

Operating Segment Highlights ($ in 000s)
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Capital Allocation

Acquisitions
Year-to-date, the Company has completed 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.听听

Volas stated, 鈥淥ur plan is to utilize our excess free cash flow to expand our two business segments through strategic acquisitions.听 We are very encouraged by our robust pipeline of prospects and are pleased with our successful track record of integrating the seven firms we鈥檝e acquired these past 18 months.听 Incremental EBITDA margin on these acquisitions has improved from 5.7% in the first quarter of 2017 to 16.3% today.鈥�

Share Repurchases
In conjunction with its previously announced accelerated share repurchase program, in the third quarter the Company made a payment of $100.0 million to Bank of America Merrill Lynch, 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. The remaining $20 million balance is expected to settle no later than the end of the first quarter of 2018.听 Since January 1, 2016, the Company has repurchased 3.0 million shares of its common stock.听

2017 Revenue and Adjusted EBITDA Outlook

This outlook reflects management鈥檚 current view of present and future market conditions and is based on assumptions such as housing starts, general and administrative expenses, weighted average diluted shares outstanding and interest rates.听 This outlook does not include any effects related to potential acquisitions or divestitures that may occur after the date of this press release.听 Factors that could cause actual 2017 results to differ materially from TopBuild鈥檚 current expectations are discussed below and are also detailed in the Company鈥檚 2016 Annual Report on Form 10-K and subsequent SEC reports.听听

Amendment to Corporate Governance Guidelines
The Company鈥檚 Board of Directors has amended its Corporate Governance Guidelines to adopt a majority voting policy whereby any nominee for director who receives more 鈥渨ithheld鈥� votes than 鈥渇or鈥� votes in an uncontested election must submit a written offer to resign as director. Any such resignation will be reviewed by the Board鈥檚 Nominating and Corporate Governance Committee and, within 90 days after the election, the independent members of the Board will determine whether to accept, reject or take other appropriate action with respect to, the resignation, in furtherance of the best interests of the Company and its shareholders. The Company鈥檚 Corporate Governance Guidelines containing the Majority Voting Policy are available on the Company鈥檚 website, at on the Investor page under the Corporate Governance section.

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 third quarter 2017 financial results is scheduled for today, Tuesday, November 7, at 9:00 a.m. Eastern Time.听 The call may be accessed by dialing (866) 460-4783.听 The conference call will be webcast simultaneously on the 鈥淚nvestors鈥� section of the Company鈥檚 website at www.topbuild.com. 听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: 21847871.

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.

糖心vlog官网 and Media Contact
Tabitha Zane

386-763-8801

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Released November 7, 2017