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TopBuild Reports Second Quarter 2022 Results
Source: Nasdaq GlobeNewswire / 02 Aug 2022 06:45:01 America/New_York
- Sales increase 52.7% to $1.3 billion, same branch revenue increases 20.7%
- Net income increases 59.0% to $143.7 million, and 57.5% on an adjusted basis
- Adjusted EBITDA margin expands 100 basis points to 19.0%, 19.9% on a same branch basis, up 190 basis points
DAYTONA BEACH, Fla., Aug. 02, 2022 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD), a leading installer and specialty distributor of insulation and related building material products to the construction industry in the United States and Canada today reported results for the second quarter ended June 30, 2022.
Robert Buck, President and Chief Executive Officer, stated “We are pleased to report another quarter of strong financial results. Our unique business model combining both installation and specialty distribution, a key differentiator and critical component of our success, should enable us to outperform in any environment.
“We also continue to make great progress in the integration of DI and are ahead of schedule to achieve the $35 million to $40 million of synergies forecasted when we announced this transaction.”
Second Quarter Financial Highlights ($ in 000s)
(unless otherwise indicated, comparisons are to the quarter ended June 30, 2021)
3 Months Ended 6/30/22 Reported Change Sales $1,274,285 52.7% Gross Margin 30.1% 100 bps SG&A as % of revenue 13.9% 10 bps Operating Profit $207,221 61.5% Operating Margin 16.3% 90 bps Net Income $143,697 59.0% Net Income per diluted share $4.41 62.1% 3 Months Ended 6/30/22 Adjusted Change Sales $1,274,285 52.7% Gross Margin 30.1% 90 bps SG&A as % of revenue 13.8% 20 bps Operating Profit $208,798 60.8% Operating Margin 16.4% 80 bps Net Income $144,381 57.5% Net Income per diluted share $4.43 60.5% EBITDA $242,254 61.7% EBITDA Margin 19.0% 100 bps 3 Months Ended 6/30/22 Adj. Same Branch Change Sales $1,007,185 20.7% Gross Margin 31.2% 200 bps Operating Margin 17.8% 220 bps EBITDA Margin 19.9% 190 bps Incremental EBITDA 29.4% Six Month Financial Highlights ($ in 000s)
(unless otherwise indicated, comparisons are to the six months ended June 30, 2021)
6 Months Ended 6/30/22 Reported Change Sales $2,443,203 54.9% Gross Margin 29.3% 130 bps SG&A as % of revenue 14.1% 40 bps Operating Profit $371,175 65.6% Operating Margin 15.2% 100 bps Net Income $258,410 72.0% Net Income per diluted share $7.87 73.7% 6 Months Ended 6/30/22 Adjusted Change Sales $2,443,203 54.9% Gross Margin 29.3% 130 bps SG&A as % of revenue 13.9% 30 bps Operating Profit $376,302 65.7% Operating Margin 15.4% 100 bps Net Income $259,986 63.8% Net Income per diluted share $7.92 65.7% EBITDA $443,984 67.1% EBITDA Margin 18.2% 140 bps 6 Months Ended 6/30/22 Adj. Same Branch Change Sales $1,889,050 19.8% Gross Margin 30.4% 240 bps Operating Margin 17.2% 280 bps EBITDA Margin 19.3% 250 bps Incremental EBITDA 32.0% Operating Segment Highlights ($ in 000s)
(unless otherwise indicated, comparisons are to the period ended June 30, 2021)
Installation 3 Months Ended 6/30/22 6 Months Ended 6/30/22 Specialty Distribution 3 Months Ended 6/30/22 6 Months Ended 6/30/22 Sales $748,968 $1,425,661 Sales $587,791 $1,131,653 Change Change Volume 8.3% 5.8% Volume 0.3% 0.2% Price 13.3% 13.7% Price 20.0% 21.4% M&A 2.0% 5.7% M&A 94.7% 94.0% Total Change 23.7% 25.2% Total Change 115.0% 115.6% Operating Margin 18.7% 17.7% Operating Margin 14.8% 13.9% Change 230 bps 250 bps Change (90) bps (100) bps Adj. Operating Margin 18.7% 17.8% Adj. Operating Margin 14.8% 13.9% Change 210 bps 250 bps Change (90) bps (100) bps Adj. EBITDA Margin 20.8% 20.0% Adj. EBITDA Margin 17.2% 16.5% Change 170 bps 220 bps Change 70 bps 70 bps Capital Allocation
Acquisitions
The Company acquired one residential insulation company in the second quarter, Assured Insulating, which serves markets in Northeastern Texas and Northwestern Louisiana. Through June 30, the Company has completed four acquisitions which are expected to contribute approximately $15.7 million in annual revenue.Share Repurchases
The Company announced that its Board of Directors recently approved a new share repurchase program with authorization to purchase up to $200 million shares of the Company’s common stock.As of June 30, 2022, Company has repurchased a total of 647,466 shares which includes a portion of the shares repurchased under an accelerated share repurchase program which will be completed in the third quarter.
2022 Outlook
“As we look toward the second half of 2022, we expect demand for our services to remain steady in all three end-markets we serve: residential, commercial, and industrial. Our focus will remain on the successful integration of DI, the strategic allocation of capital and ongoing initiatives to enhance operational efficiency, drive productivity and leverage our fixed costs,” added Buck.
Sales and Adjusted EBITDA Guidance (1)
($ in millions)2022 Low High Sales $ 4,800 $ 4,900 Adjusted EBITDA* $ 860 $ 900 *See table for adjusted EBITDA reconciliation.
(1) This outlook reflects management’s current view of present and future market conditions and are based on assumptions such as housing starts and completions, general and administrative expenses, weighted average diluted shares outstanding and interest rates. These targets do not include any effects related to potential acquisitions or divestitures that may occur after the date of this press release. A reconciliation of non-GAAP targets to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, the costs and expenses that may be incurred in the future and therefore, cannot be reasonably predicted. The effect of these excluded items may be significant. Factors that could cause actual long-term results to differ materially from TopBuild’s current expectations are discussed below and are also detailed in the Company’s 2021 Annual Report on Form 10-K and subsequent SEC reports.
Conference Call
A conference call to discuss second quarter financial results is scheduled for today, Tuesday, August 2nd, at 9:00 a.m. Eastern Time. The call may be accessed by dialing (877) 407-9037. The conference call will be webcast simultaneously on the Company’s website at www.topbuild.com. In addition, a copy of management’s formal remarks and a presentation that summarizes management’s formal remarks will be available immediately prior to the conference call on www.topbuild.com.About TopBuild
TopBuild Corp., headquartered in Daytona Beach, Florida, is a leading installer and specialty distributor of insulation and related building material products to the construction industry in the United States and Canada. We provide insulation installation services nationwide through our contractor services business which has approximately 230 branches located across the United States. We distribute building and mechanical insulation, insulation accessories and other building product materials for the residential, commercial, and industrial end markets through our Specialty Distribution business. Our specialty distribution network encompasses approximately 180 branches. To learn more about TopBuild please visit our website at www.topbuild.com.Use of Non-GAAP Financial Measures
Adjusted EBITDA, incremental EBITDA margin, adjusted EBITDA margin, the “adjusted” financial measures presented above, and figures presented on a “same branch basis” are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). 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. We define same branch sales as sales from branches in operation for at least 12 full calendar months. Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under GAAP. Additional information may be found in the Company’s filings with the Securities and Exchange Commission which are available on TopBuild’s website under “SEC Filings” at www.topbuild.com.Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, and our plan to repurchase our common stock under stock repurchase transactions. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. 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. Our forward-looking statements contained herein speak only as of the date of this press release. 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. 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 any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.Investor Relations and Media Contact
Tabitha Zane
tabitha.zane@topbuild.com
386-763-8801(tables follow)
TopBuild Corp. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per common share amounts) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net sales $ 1,274,285 $ 834,255 $ 2,443,203 $ 1,577,053 Cost of sales 890,188 591,075 1,727,905 1,136,114 Gross profit 384,097 243,180 715,298 440,939 Selling, general, and administrative expense 176,876 114,894 344,123 216,767 Operating profit 207,221 128,286 371,175 224,172 Other income (expense), net: Interest expense (13,410 ) (6,105 ) (25,375 ) (12,707 ) Loss on extinguishment of debt — — — (13,862 ) Other, net (279 ) 66 406 144 Other expense, net (13,689 ) (6,039 ) (24,969 ) (26,425 ) Income before income taxes 193,532 122,247 346,206 197,747 Income tax expense (49,835 ) (31,867 ) (87,796 ) (47,525 ) Net income $ 143,697 $ 90,380 $ 258,410 $ 150,222 Net income per common share: Basic $ 4.43 $ 2.75 $ 7.93 $ 4.57 Diluted $ 4.41 $ 2.72 $ 7.87 $ 4.53 Weighted average shares outstanding: Basic 32,405,292 32,865,303 32,570,988 32,846,016 Diluted 32,614,449 33,177,435 32,827,549 33,190,107
TopBuild Corp. Condensed Consolidated Statements of Comprehensive Income (Unaudited) (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income $ 143,697 $ 90,380 $ 258,410 $ 150,222 Other comprehensive (loss) income: Foreign currency translation adjustment (2,193 ) — 1,026 — Comprehensive income $ 141,504 $ 90,380 $ 259,436 $ 150,222
TopBuild Corp. Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited) (dollars in thousands) As of June 30, 2022 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 123,869 $ 139,779 Receivables, net of an allowance for credit losses of $12,558 at June 30, 2022, and $8,798 at December 31, 2021 773,744 668,419 Inventories, net 431,098 352,801 Prepaid expenses and other current assets 25,835 26,692 Total current assets 1,354,546 1,187,691 Right of use assets 174,361 177,177 Property and equipment, net 250,051 244,574 Goodwill 1,968,603 1,949,763 Other intangible assets, net 653,458 684,209 Deferred tax assets, net — 1,905 Other assets 19,965 13,211 Total assets $ 4,420,984 $ 4,258,530 LIABILITIES Current liabilities: Accounts payable $ 508,227 $ 461,917 Current portion of long-term debt 38,162 38,640 Accrued liabilities 197,308 175,891 Short-term operating lease liabilities 55,284 54,591 Short-term finance lease liabilities 2,712 2,387 Total current liabilities 801,693 733,426 Long-term debt 1,437,102 1,454,483 Deferred tax liabilities, net 245,687 248,243 Long-term portion of insurance reserves 60,805 51,875 Long-term operating lease liabilities 124,191 125,339 Long-term finance lease liabilities 7,055 7,770 Other liabilities 1,788 960 Total liabilities 2,678,321 2,622,096 EQUITY 1,742,663 1,636,434 Total liabilities and equity $ 4,420,984 $ 4,258,530 As of June 30, 2022 2021 Other Financial Data Receivable days 46 45 Inventory days 48 30 Accounts payable days 62 74 Receivables, net plus inventories, net less accounts payable $ 696,615 $ 313,631 Receivables, net plus inventories, net less accounts payable as a percent of sales (TTM) † 15.0 % 9.9 % † Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches
TopBuild Corp. Condensed Consolidated Statement of Cash Flows (Unaudited) (in thousands) Six Months Ended June 30, 2022 2021 Cash Flows Provided by (Used in) Operating Activities: Net income $ 258,410 $ 150,222 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 60,621 33,221 Share-based compensation 7,061 5,377 Loss on extinguishment of debt — 13,862 Loss on sale of property and equipment 525 833 Amortization of debt issuance costs 1,427 858 Provision for bad debt expense 6,404 4,037 Loss from inventory obsolescence 3,610 1,129 Change in certain assets and liabilities Receivables, net (107,739 ) (36,277 ) Inventories, net (82,621 ) (8,055 ) Prepaid expenses and other current assets 648 (2,273 ) Accounts payable 47,540 21,782 Accrued liabilities 16,884 17,693 Other, net 4,927 (206 ) Net cash provided by operating activities 217,697 202,203 Cash Flows Provided by (Used in) Investing Activities: Purchases of property and equipment (36,034 ) (28,560 ) Acquisition of businesses, net of cash acquired (18,746 ) (195,411 ) Proceeds from sale of property and equipment 618 193 Net cash used in investing activities (54,162 ) (223,778 ) Cash Flows Provided by (Used in) Financing Activities: Proceeds from issuance of long-term debt — 411,250 Repayment of long-term debt (19,287 ) (421,716 ) Payment of debt issuance costs — (6,500 ) Proceeds from revolving credit facility 70,000 — Repayment of revolving credit facility (70,000 ) — Taxes withheld and paid on employees' equity awards (11,667 ) (11,491 ) Exercise of stock options 1,452 5,952 Repurchase of shares of common stock (150,050 ) (24,038 ) Payment of contingent consideration (35 ) (150 ) Net cash used in financing activities (179,587 ) (46,693 ) Impact of exchange rate changes on cash 142 — Net decrease in cash and cash equivalents (15,910 ) (68,268 ) Cash and cash equivalents- Beginning of period 139,779 330,007 Cash and cash equivalents- End of period $ 123,869 $ 261,739 Supplemental disclosure of noncash activities: Leased assets obtained in exchange for new operating lease liabilities $ 36,129 $ 39,135 Accruals for property and equipment 563 460
TopBuild Corp. Segment Data (Unaudited) (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 Change 2022 2021 Change Installation Sales $ 748,968 $ 605,625 23.7 % $ 1,425,661 $ 1,138,378 25.2 % Operating profit, as reported $ 139,919 $ 99,066 $ 252,598 $ 172,702 Operating margin, as reported 18.7 % 16.4 % 17.7 % 15.2 % Rationalization charges — — 473 — Acquisition related costs 16 1,112 96 1,112 COVID-19 pay — 116 — 605 Operating profit, as adjusted $ 139,935 $ 100,294 $ 253,167 $ 174,419 Operating margin, as adjusted 18.7 % 16.6 % 17.8 % 15.3 % Share-based compensation 282 274 689 614 Depreciation and amortization 15,319 14,857 31,004 27,683 EBITDA, as adjusted $ 155,536 $ 115,425 34.8 % $ 284,860 $ 202,716 40.5 % EBITDA margin, as adjusted 20.8 % 19.1 % 20.0 % 17.8 % Specialty Distribution Sales $ 587,791 $ 273,364 115.0 % $ 1,131,653 $ 524,965 115.6 % Operating profit, as reported $ 86,749 $ 42,856 $ 157,170 $ 78,241 Operating margin, as reported 14.8 % 15.7 % 13.9 % 14.9 % Acquisition related costs 334 — 575 — COVID-19 pay — 20 — 54 Operating profit, as adjusted $ 87,083 $ 42,876 $ 157,745 $ 78,295 Operating margin, as adjusted 14.8 % 15.7 % 13.9 % 14.9 % Share-based compensation 287 244 641 488 Depreciation and amortization 14,005 2,112 28,034 4,200 EBITDA, as adjusted $ 101,375 $ 45,232 124.1 % $ 186,420 $ 82,983 124.6 % EBITDA margin, as adjusted 17.2 % 16.5 % 16.5 % 15.8 %
TopBuild Corp. Adjusted EBITDA (Unaudited) (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 Change 2022 2021 Change Total net sales Sales before eliminations $ 1,336,759 $ 878,989 $ 2,557,314 $ 1,663,343 Intercompany eliminations (62,474 ) (44,734 ) (114,111 ) (86,290 ) Net sales after eliminations $ 1,274,285 $ 834,255 52.7 % $ 2,443,203 $ 1,577,053 54.9 % Operating profit, as reported - segments $ 226,668 $ 141,922 $ 409,768 $ 250,943 General corporate expense, net (9,012 ) (6,704 ) (19,449 ) (13,311 ) Intercompany eliminations (10,435 ) (6,932 ) (19,144 ) (13,460 ) Operating profit, as reported $ 207,221 $ 128,286 $ 371,175 $ 224,172 Operating margin, as reported 16.3 % 15.4 % 15.2 % 14.2 % Rationalization charges — — 473 16 Acquisition related costs † 1,577 1,457 4,654 2,210 COVID-19 pay — 136 — 659 Operating profit, as adjusted $ 208,798 $ 129,879 $ 376,302 $ 227,057 Operating margin, as adjusted 16.4 % 15.6 % 15.4 % 14.4 % Share-based compensation 3,334 2,266 7,061 5,377 Depreciation and amortization 30,122 17,703 60,621 33,221 EBITDA, as adjusted $ 242,254 $ 149,848 61.7 % $ 443,984 $ 265,655 67.1 % EBITDA margin, as adjusted 19.0 % 18.0 % 18.2 % 16.8 % Sales change period over period 440,030 866,150 EBITDA, as adjusted, change period over period 92,406 178,329 Incremental EBITDA, as adjusted, as a percentage of change in sales 21.0 % 20.6 % † Acquisition related costs include corporate level adjustments as well as segment operating adjustments.
TopBuild Corp. Non-GAAP Reconciliations (Unaudited) (in thousands, except share and per common share amounts) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Gross Profit Reconciliation Net sales $ 1,274,285 $ 834,255 $ 2,443,203 $ 1,577,053 Gross profit, as reported $ 384,097 $ 243,180 $ 715,298 $ 440,939 Acquisition related costs — — 121 — COVID-19 pay — 122 — 592 Gross profit, as adjusted $ 384,097 $ 243,302 $ 715,419 $ 441,531 Gross margin, as reported 30.1 % 29.1 % 29.3 % 28.0 % Gross margin, as adjusted 30.1 % 29.2 % 29.3 % 28.0 % Selling, General and Administrative Expense Reconciliation Selling, general, and administrative expense, as reported $ 176,876 $ 114,894 $ 344,123 $ 216,767 Rationalization charges — — 473 16 Acquisition related costs 1,577 1,457 4,533 2,210 COVID-19 pay — 14 — 67 Selling, general, and administrative expense, as adjusted $ 175,299 $ 113,423 $ 339,117 $ 214,474 Operating Profit Reconciliation Operating profit, as reported $ 207,221 $ 128,286 $ 371,175 $ 224,172 Rationalization charges — — 473 16 Acquisition related costs 1,577 1,457 4,654 2,210 COVID-19 pay — 136 — 659 Operating profit, as adjusted $ 208,798 $ 129,879 $ 376,302 $ 227,057 Operating margin, as reported 16.3 % 15.4 % 15.2 % 14.2 % Operating margin, as adjusted 16.4 % 15.6 % 15.4 % 14.4 % Income Per Common Share Reconciliation Income before income taxes, as reported $ 193,532 $ 122,247 $ 346,206 $ 197,747 Rationalization charges — — 473 16 Acquisition related costs 1,577 1,457 4,654 2,210 Refinancing costs and loss on extinguishment of debt — — — 13,862 COVID-19 pay — 136 — 659 Income before income taxes, as adjusted 195,109 123,840 351,333 214,494 Tax rate at 26.0% (50,728 ) (32,198 ) (91,347 ) (55,769 ) Income, as adjusted $ 144,381 $ 91,642 $ 259,986 $ 158,725 Income per common share, as adjusted $ 4.43 $ 2.76 $ 7.92 $ 4.78 Weighted average diluted common shares outstanding 32,614,449 33,177,435 32,827,549 33,190,107
TopBuild Corp. Same Branch and Acquisition Metrics (Unaudited) (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net sales Same branch: Installation $ 736,643 $ 605,625 $ 1,360,243 $ 1,138,378 Specialty Distribution 328,807 273,364 638,018 524,965 Eliminations (58,265 ) (44,734 ) (109,211 ) (86,290 ) Total same branch 1,007,185 834,255 1,889,050 1,577,053 Acquisitions (a): Installation $ 12,325 $ — $ 65,418 $ — Specialty Distribution 258,984 — 493,635 — Eliminations (4,209 ) — (4,900 ) — Total acquisitions 267,100 — 554,153 — Total $ 1,274,285 $ 834,255 $ 2,443,203 $ 1,577,053 Gross profit, as adjusted Same branch $ 314,012 $ 243,302 $ 575,127 $ 441,531 Acquisitions (a) 70,085 — 140,292 — Total $ 384,097 $ 243,302 $ 715,419 $ 441,531 Gross margin, as adjusted Same branch (b) 31.2 % 29.2 % 30.4 % 28.0 % Acquisitions (c) 26.2 % 25.3 % Operating profit, as adjusted Same branch $ 179,512 $ 129,879 $ 324,127 $ 227,057 Acquisitions (a) 29,286 — 52,175 — Total $ 208,798 $ 129,879 $ 376,302 $ 227,057 Operating margin, as adjusted Same branch (b) 17.8 % 15.6 % 17.2 % 14.4 % Acquisitions (c) 11.0 % 9.4 % EBITDA, as adjusted Same branch $ 200,667 $ 149,848 $ 365,435 $ 265,655 Acquisitions (a) 41,587 — 78,549 — Total $ 242,254 $ 149,848 $ 443,984 $ 265,655 EBITDA, as adjusted, as a percentage of sales Same branch (b) 19.9 % 19.3 % Acquisitions (c) 15.6 % 14.2 % Total (d) 19.0 % 18.0 % 18.2 % 16.8 % As Adjusted Incremental EBITDA, as a percentage of change in sales Same branch (e) 29.4 % 32.0 % Acquisitions (c) 15.6 % 14.2 % Total (f) 21.0 % 20.6 % (a) Represents current year impact of acquisitions in their first twelve months (b) Same branch metric, as adjusted, as a percentage of same branch sales (c) Acquired metric, as adjusted, as a percentage of acquired sales (d) Total EBITDA, as adjusted, as a percentage of total sales (e) Change in same branch EBITDA, as adjusted, as a percentage of change in same branch sales (f) Change in total EBITDA, as adjusted, as a percentage of change in total sales
TopBuild Corp. Reconciliation of Adjusted EBITDA to Net Income (Unaudited) (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income, as reported $ 143,697 $ 90,380 $ 258,410 $ 150,222 Adjustments to arrive at EBITDA, as adjusted: Interest expense and other, net 13,689 6,039 24,969 12,563 Income tax expense 49,835 31,867 87,796 47,525 Depreciation and amortization 30,122 17,703 60,621 33,221 Share-based compensation 3,334 2,266 7,061 5,377 Rationalization charges — — 473 16 Acquisition related costs 1,577 1,457 4,654 2,210 Refinancing costs and loss on extinguishment of debt — — — 13,862 COVID-19 pay — 136 — 659 EBITDA, as adjusted $ 242,254 $ 149,848 $ 443,984 $ 265,655 TopBuild Corp. Acquisition Adjusted Net Sales (Unaudited) (in thousands) 2021 2022 Trailing Twelve Months Ended Q3 Q4 Q1 Q2 June 30, 2022 Net Sales $ 845,757 $ 1,063,398 $ 1,168,918 $ 1,274,285 $ 4,352,358 Acquisitions proforma adjustment † 231,146 48,816 2,481 39 282,482 Net sales, acquisition adjusted $ 1,076,903 $ 1,112,214 $ 1,171,399 $ 1,274,324 $ 4,634,840 † Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches
TopBuild Corp. 2022 Estimated Adjusted EBITDA Range (Unaudited) (in millions) Twelve Months Ending December 31, 2022 Low High Estimated net income $ 481.5 520.1 Adjustments to arrive at estimated EBITDA, as adjusted: Interest expense and other, net 61.0 58.0 Income tax expense 169.2 182.7 Depreciation and amortization 124.9 120.8 Share-based compensation 13.4 11.4 Rationalization charges 2.0 1.0 Acquisition related costs 8.0 6.0 Estimated EBITDA, as adjusted $ 860.0 $ 900.0 
