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TopBuild Reports Second Quarter Results
Source: Nasdaq GlobeNewswire / 06 Aug 2024 06:45:01 America/New_York
Both segments drive growth, resulting in second quarter sales of $1.37 billion
Delivered gross margin of 31% and adjusted EBITDA margin of 20.3%
Revises 2024 guidance to $5.3 to $5.5 billion in revenue and $1.055 to $1.125 billion in adjusted EBITDA
DAYTONA BEACH, Fla., Aug. 06, 2024 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD) a leading installer and specialty distributor of insulation and building material products to the construction industry in the United States and Canada today reported results for the second quarter ended June 30, 2024.
“We’re pleased with our solid results in the second quarter, as our teams continued to focus on growth and profitability across the business. We grew sales 3.7% to $1.37 billion and delivered adjusted EBITDA of $277.7 million and adjusted EBITDA margin of 20.3%. Excluding the benefit from higher-than-normal multi-family and commercial margins in the second and third quarter of 2023,1 we delivered our highest level of sales and profitability in our history,” said Robert Buck, President and Chief Executive Officer.
“Both segments delivered sales growth in the second quarter, however volume was less than anticipated due to higher interest rates, project delays and supply constraints that continue to impact results across some residential and commercial end markets. Our residential single-family sales continued to improve, and our backlog continues to support our multi-family sales. Commercial and industrial backlogs and bidding activity remain robust.
“The long-term fundamentals for our business are strong, supported by the undersupply of housing in the United States, increasing household formations, the potential for moderating interest rates, and strengthening demand for greater energy efficiency. We expect to continue driving profitable growth and strong free cash flows for TopBuild to reinvest or return to shareholders.
“Year to date, we have completed 6 acquisitions, and our M&A pipeline is very healthy. We are also returning capital to shareholders, and as of June 30, we repurchased approximately 1.25 million shares totaling $505.2 million, underscoring management and our Board’s continued confidence in our future growth and capital allocation approach,” concluded Mr. Buck.
1 The Company noted that its results for the second quarter of 2023 included an estimated $10 million margin benefit related to certain multi-family/commercial business. In the third quarter of 2023, a similar benefit is estimated to be $15 million.
Financial Highlights
(comparisons are to the periods ended June 30, 2023)
Three Months Ended June 30 $ in thousands Reported Adjusted 2024 2023 2024 2023 Sales $ 1,365,612 $ 1,317,262 $ 1,365,612 $ 1,317,262 Gross Profit 423,922 421,800 423,922 421,800 Gross Margin 31.0 % 32.0 % 31.0 % 32.0 % SG&A 213,530 184,697 185,893 182,597 SG&A as % of revenue 15.6 % 14.0 % 13.6 % 13.9 % Operating Profit 210,392 237,103 238,029 239,203 Operating Margin 15.4 % 18.0 % 17.4 % 18.2 % Net Income 150,723 164,400 170,800 166,685 Net Income per diluted share $ 4.78 $ 5.18 $ 5.42 $ 5.25 EBITDA $ 277,694 $ 275,505 EBITDA Margin 20.3 % 20.9 % Six Months Ended June 30 $ in thousands Reported Adjusted 2024 2023 2024 2023 Sales $ 2,644,329 $ 2,582,500 $ 2,644,329 $ 2,582,500 Gross Profit 811,072 792,015 811,072 792,015 Gross Margin 30.7 % 30.7 % 30.7 % 30.7 % SG&A 386,172 355,481 358,609 349,723 SG&A as % of revenue 14.6 % 13.8 % 13.6 % 13.5 % Operating Profit 424,900 436,534 452,463 442,292 Operating Margin 16.1 % 16.9 % 17.1 % 17.1 % Net Income 303,104 300,270 323,922 305,045 Net Income per diluted share $ 9.56 $ 9.47 $ 10.22 $ 9.62 EBITDA $ 531,513 $ 513,830 EBITDA Margin 20.1 % 19.9 % Sales Drivers
(comparisons are to the periods ended June 30, 2023)
Three Months Ended June 30, 2024 Installation Specialty Distribution TopBuild, net of elims Sales (in millions) $ 851 $ 593 $ 1,366 Sales Drivers Volume 1.0 % 0.6 % 0.0 % Price 1.3 % 1.3 % 1.3 % M&A 3.8 % 1.3 % 2.9 % Dispositions -0.9 % -0.6 % Total Sales Change 5.2 % 3.2 % 3.7 % Six Months Ended June 30, 2024 Installation Specialty Distribution TopBuild, net of elims Sales (in millions) $ 1,650 $ 1,139 $ 2,644 Sales Drivers Volume 0.7 % -1.8 % -1.0 % Price 1.2 % 1.4 % 1.3 % M&A 3.7 % 0.9 % 2.6 % Dispositions -0.9 % -0.5 % Total Sales Change 4.7 % 0.5 % 2.4 %
Segment Profitability
(comparisons are to the periods ended June 30, 2023)Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 $ in thousands Installation Specialty Distribution Installation Specialty Distribution Operating Profit $ 170,718 $ 89,373 $ 327,475 $ 166,951 Change -0.9 % 3.9 % 2.6 % 4.8 % Operating Margin 20.1 % 15.1 % 19.9 % 14.7 % Adj. Operating Profit $ 171,006 $ 89,383 $ 327,808 $ 166,211 Change -0.9 % 4.0 % 2.5 % 4.1 % Adj. Operating Margin 20.1 % 15.1 % 19.9 % 14.6 % Adj. EBITDA $ 190,036 $ 104,810 $ 365,435 $ 196,907 Change 0.2 % 3.7 % 3.3 % 3.9 % Adj. EBITDA Margin 22.3 % 17.7 % 22.2 % 17.3 % Capital Allocation
2024 Acquisitions
Year to date, the Company has completed the acquisition of 6 insulation companies which are expected to generate approximately $107 million in annual revenue. They are listed in the chart below.Annual Revenue Company ($ millions) Month Closed Brabble Insulation (I) $ 5.2 February Morris Black & Sons (I) 3.8 March Pest Control Insulation (D) 25.4 March Green Space Insulation (I) 6.0 April Insulation Works (I) 28.0 May Texas Insulation (I) 38.9 May Total $ 107.3 I = Installation, D = Specialty Distribution Share Repurchases
During the quarter, TopBuild repurchased approximately 1.25 million shares totaling $505.2 million (average price of $405.43 per share). $649.2 million remained under the current authorization.2024 Outlook2
The Company revised its full year 2024 guidance as indicated below. The sales guidance assumes mid-single digit residential growth and low single digit commercial/industrial growth for the year. The Company noted that the revision largely reflects timing of demand, rather than any underlying changes in the business.$ in millions 2024 Outlook Low High Sales $ 5,300 $ 5,500 Adjusted EBITDA* $ 1,055 $ 1,125 * See table for Adjusted EBITDA reconciliation. 2 This outlook reflects management’s current view of present and future market conditions and is based on assumptions such as housing starts, general and administrative expenses, 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 most recent Annual Report on Form 10-K and subsequent SEC reports.
Conference Call
A conference call to discuss second quarter 2024 financial results is scheduled for today, Tuesday, August 6, at 9:00 a.m. Eastern Time. The call may be accessed by dialing (877) 407-9037. A simultaneous webcast of the call, along with management’s formal remarks and a presentation, will be available on the Company’s website at www.topbuild.com shortly before the call begins.
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 Installation segment which has approximately 250 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 170 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 can be identified by words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “may,” “project,” “estimate” 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.
(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, 2024 2023 2024 2023 Net sales $ 1,365,612 $ 1,317,262 $ 2,644,329 $ 2,582,500 Cost of sales 941,690 895,462 1,833,257 1,790,485 Gross profit 423,922 421,800 811,072 792,015 Selling, general, and administrative expense 213,530 184,697 386,172 355,481 Operating profit 210,392 237,103 424,900 436,534 Other income (expense), net: Interest expense (18,568 ) (18,558 ) (37,363 ) (36,597 ) Other, net 11,350 4,605 22,632 6,528 Other expense, net (7,218 ) (13,953 ) (14,731 ) (30,069 ) Income before income taxes 203,174 223,150 410,169 406,465 Income tax expense (52,451 ) (58,750 ) (107,065 ) (106,195 ) Net income $ 150,723 $ 164,400 $ 303,104 $ 300,270 Net income per common share: Basic $ 4.81 $ 5.20 $ 9.63 $ 9.51 Diluted $ 4.78 $ 5.18 $ 9.56 $ 9.47 Weighted average shares outstanding: Basic 31,324,833 31,599,744 31,483,144 31,575,337 Diluted 31,524,063 31,731,807 31,693,524 31,722,660 TopBuild Corp. Condensed Consolidated Statements of Comprehensive Income (Unaudited) (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income $ 150,723 $ 164,400 $ 303,104 $ 300,270 Other comprehensive (loss) income: Foreign currency translation adjustment (1,836 ) 4,283 (5,928 ) 6,037 Comprehensive income $ 148,887 $ 168,683 $ 297,176 $ 306,307
TopBuild Corp. Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited) (dollars in thousands) As of June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 463,221 $ 848,565 Receivables, net of an allowance for credit losses of $22,718 at June 30, 2024, and $23,948 at December 31, 2023 859,725 799,009 Inventories 393,810 364,731 Prepaid expenses and other current assets 43,550 36,939 Total current assets 1,760,306 2,049,244 Right of use assets 191,048 204,629 Property and equipment, net 267,523 264,487 Goodwill 2,090,788 2,042,568 Other intangible assets, net 583,141 591,058 Other assets 10,187 10,865 Total assets $ 4,902,993 $ 5,162,851 LIABILITIES Current liabilities: Accounts payable $ 461,139 $ 469,585 Current portion of long-term debt 45,665 47,039 Accrued liabilities 176,753 187,217 Short-term operating lease liabilities 66,953 65,780 Short-term finance lease liabilities 1,739 1,917 Total current liabilities 752,249 771,538 Long-term debt 1,351,969 1,373,028 Deferred tax liabilities, net 243,790 243,930 Long-term portion of insurance reserves 60,402 58,783 Long-term operating lease liabilities 132,529 146,213 Long-term finance lease liabilities 3,318 4,150 Other liabilities 1,422 1,554 Total liabilities 2,545,679 2,599,196 EQUITY 2,357,314 2,563,655 Total liabilities and equity $ 4,902,993 $ 5,162,851 As of June 30, 2024 2023 Other Financial Data Receivable days 51 50 Inventory days 39 39 Accounts payable days 57 64 Receivables, net plus inventories less accounts payable $ 792,396 $ 774,111 Receivables, net plus inventories less accounts payable as a percent of sales (TTM) † 14.8 % 14.9 % † 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, 2024 2023 Cash Flows Provided by (Used in) Operating Activities: Net income $ 303,104 $ 300,270 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 69,291 64,652 Share-based compensation 9,759 6,886 (Gain)/loss on sale of assets (131 ) 621 Amortization of debt issuance costs 1,440 1,440 Provision for bad debt expense 9,874 4,031 Provision for inventory obsolescence 4,892 3,290 Change in certain assets and liabilities: Receivables, net (58,411 ) (37,247 ) Inventories (30,758 ) 54,623 Prepaid expenses and other current assets (6,595 ) 8,897 Accounts payable (17,480 ) (8,806 ) Accrued liabilities (13,348 ) (13,872 ) Other, net (2,509 ) 1,012 Net cash provided by operating activities 269,128 385,797 Cash Flows Provided by (Used in) Investing Activities: Purchases of property and equipment (35,974 ) (30,672 ) Acquisition of businesses, net of cash acquired (88,123 ) (45,948 ) Proceeds from sale of assets 2,150 782 Net cash used in investing activities (121,947 ) (75,838 ) Cash Flows Provided by (Used in) Financing Activities: Repayment of long-term debt (23,873 ) (18,829 ) Taxes withheld and paid on employees' equity awards (6,059 ) (6,350 ) Exercise of stock options 3,224 1,497 Repurchase of shares of common stock (505,241 ) — Payment of contingent consideration — (300 ) Net cash used in financing activities (531,949 ) (23,982 ) Impact of exchange rate changes on cash (576 ) 281 Net (decrease) increase in cash and cash equivalents (385,344 ) 286,258 Cash and cash equivalents - Beginning of period 848,565 240,069 Cash and cash equivalents - End of period $ 463,221 $ 526,327 Supplemental disclosure of noncash activities: Leased assets obtained in exchange for new operating lease liabilities $ 20,180 $ 26,310 Accruals for property and equipment 277 1,449 Excise taxes capitalized to treasury stock 5,202 —
TopBuild Corp. Segment Data (Unaudited) (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 Change 2024 2023 Change Installation Sales $ 850,983 $ 809,055 5.2 % $ 1,649,726 $ 1,576,145 4.7 % Operating profit, as reported $ 170,718 $ 172,278 $ 327,475 $ 319,176 Operating margin, as reported 20.1 % 21.3 % 19.9 % 20.3 % Acquisition related costs 288 227 333 490 Operating profit, as adjusted $ 171,006 $ 172,505 $ 327,808 $ 319,666 Operating margin, as adjusted 20.1 % 21.3 % 19.9 % 20.3 % Share-based compensation 318 310 648 689 Depreciation and amortization 18,712 16,791 36,979 33,284 EBITDA, as adjusted $ 190,036 $ 189,606 0.2 % $ 365,435 $ 353,639 3.3 % EBITDA margin, as adjusted 22.3 % 23.4 % 22.2 % 22.4 % Specialty Distribution Sales $ 592,826 $ 574,488 3.2 % $ 1,138,620 $ 1,132,862 0.5 % Operating profit, as reported $ 89,373 $ 85,980 $ 166,951 $ 159,313 Operating margin, as reported 15.1 % 15.0 % 14.7 % 14.1 % Rationalization charges — — (750 ) — Acquisition related costs 10 — 10 340 Operating profit, as adjusted $ 89,383 $ 85,980 $ 166,211 $ 159,653 Operating margin, as adjusted 15.1 % 15.0 % 14.6 % 14.1 % Share-based compensation 380 316 813 554 Depreciation and amortization 15,047 14,740 29,883 29,312 EBITDA, as adjusted $ 104,810 $ 101,036 3.7 % $ 196,907 $ 189,519 3.9 % EBITDA margin, as adjusted 17.7 % 17.6 % 17.3 % 16.7 %
TopBuild Corp. Adjusted EBITDA (Unaudited) (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 Change 2024 2023 Change Total net sales Sales before eliminations $ 1,443,809 $ 1,383,543 $ 2,788,346 $ 2,709,007 Intercompany eliminations (78,197 ) (66,281 ) (144,017 ) (126,507 ) Net sales after eliminations $ 1,365,612 $ 1,317,262 3.7 % $ 2,644,329 $ 2,582,500 2.4 % Operating profit, as reported - segments $ 260,091 $ 258,258 $ 494,426 $ 478,489 General corporate expense, net (36,859 ) (9,957 ) (45,926 ) (20,786 ) Intercompany eliminations (12,840 ) (11,198 ) (23,600 ) (21,169 ) Operating profit, as reported $ 210,392 $ 237,103 $ 424,900 $ 436,534 Operating margin, as reported 15.4 % 18.0 % 16.1 % 16.9 % Rationalization charges 258 — (492 ) — Acquisition related costs † 4,379 2,100 5,055 5,758 Acquisition termination fee 23,000 — 23,000 — Operating profit, as adjusted $ 238,029 $ 239,203 $ 452,463 $ 442,292 Operating margin, as adjusted 17.4 % 18.2 % 17.1 % 17.1 % Share-based compensation 4,632 3,751 9,759 6,886 Depreciation and amortization 35,033 32,551 69,291 64,652 EBITDA, as adjusted $ 277,694 $ 275,505 0.8 % $ 531,513 $ 513,830 3.4 % EBITDA margin, as adjusted 20.3 % 20.9 % 20.1 % 19.9 % Sales change period over period 48,350 61,829 EBITDA, as adjusted, change period over period 2,189 17,683 Incremental EBITDA, as adjusted, as a percentage of change in sales 4.5 % 28.6 % † Acquisition related costs include corporate level adjustments as well as segment operating adjustments TopBuild Corp. Same Branch and Acquisition Metrics (Unaudited) (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net sales Same branch: Installation $ 820,243 $ 802,086 $ 1,592,184 $ 1,562,737 Specialty Distribution 585,181 574,488 1,128,626 1,132,862 Eliminations (78,197 ) (66,281 ) (144,017 ) (126,507 ) Total same branch $ 1,327,227 $ 1,310,293 $ 2,576,793 $ 2,569,092 Acquisitions (a): Installation $ 30,740 $ — $ 57,542 $ — Specialty Distribution 7,645 — 9,994 — Total acquisitions 38,385 — 67,536 — Dispositions (b): Installation $ — $ 6,969 $ — $ 13,408 Total dispositions — 6,969 — 13,408 Total net sales $ 1,365,612 $ 1,317,262 $ 2,644,329 $ 2,582,500 EBITDA, as adjusted Same branch $ 271,096 $ 274,113 $ 521,202 $ 511,305 Acquisitions (a) 6,598 — 10,311 — Dispositions (b) — 1,392 — 2,525 Total $ 277,694 $ 275,505 $ 531,513 $ 513,830 EBITDA, as adjusted, as a percentage of sales Same branch (c) 20.4 % 20.2 % Acquisitions (d) 17.2 % 15.3 % Total (e) 20.3 % 20.9 % 20.1 % 19.9 % As Adjusted Incremental EBITDA, as a percentage of change in sales Same branch (f) NM 128.5 Acquisitions (d) 17.2 % 15.3 % Total (g) 4.5 % 28.6 % (a) Represents current year impact of acquisitions in their first twelve months (b) Represents operating results in prior period previously classified as same branch (c) Same branch metric, as adjusted, as a percentage of same branch sales (d) Acquired metric, as adjusted, as a percentage of acquired sales (e) Total EBITDA, as adjusted, as a percentage of total sales (f) Change in same branch EBITDA, as adjusted, as a percentage of change in same branch sales (g) Change in total EBITDA, as adjusted, as a percentage of change in total sales NM Not Meaningful
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, 2024 2023 2024 2023 Gross Profit Reconciliation Net sales $ 1,365,612 $ 1,317,262 $ 2,644,329 $ 2,582,500 Gross profit, as reported $ 423,922 $ 421,800 $ 811,072 $ 792,015 Acquisition related costs — — — — Gross profit, as adjusted $ 423,922 $ 421,800 $ 811,072 $ 792,015 Gross margin, as reported 31.0 % 32.0 % 30.7 % 30.7 % Gross margin, as adjusted 31.0 % 32.0 % 30.7 % 30.7 % Selling, General and Administrative Expense Reconciliation Selling, general, and administrative expense, as reported $ 213,530 $ 184,697 $ 386,172 $ 355,481 Rationalization charges 258 — (492 ) — Acquisition related costs 4,379 2,100 5,055 5,758 Acquisition termination fee 23,000 — 23,000 — Selling, general, and administrative expense, as adjusted $ 185,893 $ 182,597 $ 358,609 $ 349,723 Operating Profit Reconciliation Operating profit, as reported $ 210,392 $ 237,103 $ 424,900 $ 436,534 Rationalization charges 258 — (492 ) — Acquisition related costs 4,379 2,100 5,055 5,758 Acquisition termination fee 23,000 — 23,000 — Operating profit, as adjusted $ 238,029 $ 239,203 $ 452,463 $ 442,292 Operating margin, as reported 15.4 % 18.0 % 16.1 % 16.9 % Operating margin, as adjusted 17.4 % 18.2 % 17.1 % 17.1 % Income Per Common Share Reconciliation Income before income taxes, as reported $ 203,174 $ 223,150 $ 410,169 $ 406,465 Rationalization charges 258 — (492 ) — Acquisition related costs 4,379 2,100 5,055 5,758 Acquisition termination fee 23,000 — 23,000 — Income before income taxes, as adjusted 230,811 225,250 437,732 412,223 Tax rate at 26.0% (60,011 ) (58,565 ) (113,810 ) (107,178 ) Income, as adjusted $ 170,800 $ 166,685 $ 323,922 $ 305,045 Income per common share, as adjusted $ 5.42 $ 5.25 $ 10.22 $ 9.62 Weighted average diluted common shares outstanding 31,524,063 31,731,807 31,693,524 31,722,660
TopBuild Corp. Reconciliation of Adjusted EBITDA to Net Income (Unaudited) (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income, as reported $ 150,723 $ 164,400 $ 303,104 $ 300,270 Adjustments to arrive at EBITDA, as adjusted: Interest expense and other, net 7,218 13,953 14,731 30,069 Income tax expense 52,451 58,750 107,065 106,195 Depreciation and amortization 35,033 32,551 69,291 64,652 Share-based compensation 4,632 3,751 9,759 6,886 Rationalization charges 258 — (492 ) — Acquisition related costs 4,379 2,100 5,055 5,758 Acquisition termination fee 23,000 — 23,000 — EBITDA, as adjusted $ 277,694 $ 275,505 $ 531,513 $ 513,830
TopBuild Corp. Acquisition Adjusted Net Sales (Unaudited) (in thousands) 2023 2024 Trailing Twelve Months Ended Q3 Q4 Q1 Q2 June 30, 2024 Net sales $ 1,326,120 $ 1,286,074 $ 1,278,717 $ 1,365,612 $ 5,256,523 Acquisitions proforma adjustment † 33,549 28,367 24,075 10,603 96,594 Net sales, acquisition adjusted $ 1,359,669 $ 1,314,441 $ 1,302,792 $ 1,376,215 $ 5,353,117 † Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches TopBuild Corp. 2024 Estimated Adjusted EBITDA Range (Unaudited) (in millions) Twelve Months Ending December 31, 2024 Low High Estimated net income, as reported $ 603.0 $ 663.0 Adjustments to arrive at estimated EBITDA, as adjusted: Interest expense and other, net 48.0 45.0 Income tax expense 212.0 230.0 Depreciation and amortization 144.0 141.0 Share-based compensation 19.0 18.0 Acquisition related costs & rationalization charges 29.0 28.0 Estimated EBITDA, as adjusted $ 1,055.0 $ 1,125.0
Investor Relations and Media Contact PI Aquino pi.aquino@topbuild.com 386-763-8801
