糖心vlog官网

TopBuild Reports Fourth Quarter 2018 Results

• Net sales increase 27.6%
  
• Gross margin expands 40 basis points
• 10.2% operating margin, 10.5% on an adjusted basis, up 40 basis points
• Adjusted EBITDA increases 42.4%, margin expands 130 basis points
• $1.10 net income per diluted share, $1.20 on an adjusted basis

Announces New Share Repurchase Program
Provides 2019 Revenue and Adjusted EBITDA Outlook

DAYTONA BEACH, Fla., Feb. 26, 2019 (GLOBE NEWSWIRE) -- 听糖心vlog官网. (NYSE:BLD), a leading installer and distributor of insulation and building material products today reported results for the fourth quarter ended December 31, 2018.听

Jerry Volas, Chief Executive Officer, stated, 鈥淲e are pleased with our fourth quarter results as we continue to deliver on our objective of producing profitable growth. Our team remains focused on optimizing our operational performance as evidenced by our 40 basis point gross margin expansion and 12.9% EBITDA margin, a 130 basis point increase from a year ago.鈥�

Fourth Quarter Financial Highlights

(unless otherwise indicated, comparisons are to the quarter ended December 31, 2017)

• Net sales increased 27.6% to $639.5 million, driven by acquisitions and price increases. On a same branch basis, net sales increased 6.5% to $533.9 million.听
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• Gross margin expanded 40 basis points to 24.7%.
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• Operating profit was $65.2 million, compared to $50.0 million.听 On an adjusted basis, operating profit was $67.2 million, compared to $50.8 million, a 32.1% improvement.
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• Operating margin was 10.2%, up 20 basis points.听 Adjusted operating margin improved 40 basis points to 10.5%.

• Net income was $38.6 million, or $1.10 per diluted share, compared to $105.0 million, or $2.93 per diluted share. The Company noted that in the fourth quarter of 2017 it recorded a one-time tax benefit of $74.1 million related to the change in the federal tax rate as a result of the Tax Cuts and Jobs Act.听
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• Adjusted net income was $42.2 million, or $1.20 per diluted share, compared to $30.1 million, or $0.84 per diluted share.听
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• Adjusted EBITDA was $82.5 million, compared to $57.9 million, a 42.4% increase and adjusted EBITDA margin improved 130 basis points to 12.9%.听 Incremental adjusted EBITDA margin was 17.8%. 听
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• On a same branch basis, adjusted EBITDA was $65.3 million, a 12.6% increase, and incremental adjusted EBITDA margin was 22.5%.听
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• Acquisitions contributed $105.7 million of revenue.听 Incremental adjusted EBITDA related to these acquisitions was 16.3%.
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• 听At December 31, 2018, the Company had cash and cash equivalents of $100.9 million, availability under its revolving credit facility of $190.7 million for total liquidity of $291.6 million.

Full Year 2018 Financial Highlights

(unless otherwise indicated, comparisons are to twelve months ended December 31, 2017)

• Net sales increased 25.1% to $2,384.2 million. On a same branch basis, revenue increased 8.5% to $2,067.6 million.听
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• Gross margin was unchanged at 24.2%.
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• Operating profit was $209.0 million, compared to operating profit of $136.9 million.听 On an adjusted basis, operating profit was $232.6 million, compared to $171.9 million, a 35.3% improvement.
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• Operating margin was 8.8%, up 160 basis points.听 Adjusted operating margin improved 80 basis points to 9.8%.听
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• Net income was $134.8 million, or $3.78 per diluted share, compared to $158.1 million, or $4.32 per diluted share.听 Adjusted net income was $149.3 million, or $4.19 per diluted share, compared to $101.8 million, or $2.78 per diluted share.听
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• Adjusted EBITDA was $283.4 million, compared to $197.6 million, a 43.4% increase and adjusted EBITDA margin improved 150 basis points to 11.9%.听 Incremental adjusted EBITDA margin was 17.9%.
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• On a same branch basis, adjusted EBITDA grew 20.5% to $238.1 million and incremental EBITDA margin was 25.1%.
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• Acquisitions contributed $316.7 million of revenue.听 Incremental EBITDA related to these acquisitions was 14.3%.

鈥淥ur 2018 financial results clearly demonstrate the effectiveness of our operating model, the benefits of our size and scale and our success in integrating acquisitions onto our operating platform.听Despite an environment of unprecedented material cost increases, we maintained our gross margin and expanded our adjusted 听operating and EBITDA margins," added Volas.

Operating Segment Highlights ($ in 000s)
(comparisons are to the period ended December 31, 2017)

Capital Allocation
Acquisitions
In 2018, the Company completed three acquisitions that are expected to generate approximately $410 million of net annual revenue.

Volas stated, 鈥淪trategic acquisitions remain our number one choice for capital allocation. Since implementing our acquisition program in 2016, we have acquired ten companies that are expected to generate over $500 million in annual revenue.听 Our success in integrating acquisitions onto our operating platform has become a core competency, enabling us to take advantage of available synergies and generate strong returns for our shareholders.鈥�

The companies acquired were:

• USI, the third largest provider of insulation installation and distribution services to the residential and commercial construction markets.
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• ADO Products, a distributor of insulation accessories.
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• Santa Rosa Insulation and Fireproofing, a residential and commercial insulation company.

Share Repurchases
The Company also announced that its Board of Directors has authorized a new share repurchase program whereby the Company may purchase up to $200 million of its common stock.听 Repurchases will be made from cash on hand as well as from a portion of the free cash flow expected to be generated from the business.听听

Volas stated,听"We anticipate continuing to generate cash beyond what is required to fund our internal growth and finance acquisitions, our highest capital allocation priorities.听 This $200 million share repurchase program further enhances our on-going commitment to maximizing shareholder value.鈥澨�

In 2018 the Company repurchased a total of 1,049,871 shares of its common stock for approximately $65 million.听 This includes the receipt of 796,925 shares related to its previously announced $50 million accelerated share repurchase (鈥淎SR鈥�) program. 听The ASR is expected to settle no later than the end of the first quarter of 2019.听

2019 Revenue and Adjusted EBITDA Outlook
鈥淲e believe the fundamentals driving supply and demand in the residential housing market are healthy.听 In 2019, we will continue to focus on generating profitable growth, achieving additional operational efficiencies and identifying acquisitions that meet our investment criteria.听 Our business model, including national scale and diversity through both residential and commercial installation and distribution, offers multiple avenues for growth,鈥� added Volas.

*See table for adjusted EBITDA reconciliation

Assumptions
($ in millions)

Long-Term Targets (3-Years)

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 2019 results to differ materially from TopBuild鈥檚 current expectations are discussed below and are also detailed in the Company鈥檚 2018 Annual Report on Form 10-K and subsequent SEC reports.

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 www.topbuild.com.

Conference Call
A conference call to discuss fourth quarter and year-end 2018 financial results is scheduled for today, Tuesday, February 26, at 9:00 a.m. Eastern Time.听 The call may be accessed by dialing (888) 225-2706.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

About TopBuild
糖心vlog官网., headquartered in Daytona Beach, Florida, is a leading installer and distributor of insulation and building material products to the U.S. construction industry. We provide insulation and building material services nationwide through TruTeam^庐, which has over 200 branches, and through Service Partners^庐 which distributes insulation and building material products from over 75 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 www.topbuild.com.

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 www.topbuild.com.

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.

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Released February 26, 2019