• TopBuild Reports Third Quarter 2022 Results

    Source: Nasdaq GlobeNewswire / 01 Nov 2022 05:45:45   America/Chicago

    • 53.8% increase in net sales, 22.6% on a same branch basis
    • 130 basis point operating margin expansion to 17.1%
    • 190 basis point same branch adjusted EBITDA margin expansion to 20.6%
    • Net Debt Leverage improves to 1.49x, from 1.68x at June 30, 2022

    DAYTONA BEACH, Fla., Nov. 01, 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 third quarter ended September 30, 2022.

    Robert Buck, President and Chief Executive Officer, stated “We had another outstanding quarter with revenue growth in all three end-markets we serve: residential, commercial, and industrial. In addition, EBITDA margins at both business segments expanded, driven by operational efficiencies.

    “As we look to the rest of this year and next, our focus remains on driving profitable growth and identifying and implementing initiatives that will enhance our Company’s operations. Our entire team remains focused on continuing to deliver strong results and creating shareholder value in every operating environment.”

    Third Quarter Financial Highlights

    (unless otherwise indicated, comparisons are to the quarter ended September 30, 2021)

    3 Months Ended 9/30/22ReportedChange
    Sales$1,300,99853.8%
    Gross Margin30.4%80 bps
    SG&A as % of revenue13.3%(50 bps)
    Operating Profit$222,87466.6%
    Operating Margin17.1%130 bps
    Net Income$153,74661.1%
    Net Income per diluted share$4.7665.3%
       
    3 Months Ended 9/30/22AdjustedChange
    Sales$1,300,99853.8%
    Gross Margin30.4%80 bps
    SG&A as % of revenue13.2%(10 bps)
    Operating Profit$224,17463.1%
    Operating Margin17.2%90 bps
    Net Income$154,88958.6%
    Net Income per diluted share$4.8062.7%
    EBITDA$259,21563.8%
    EBITDA Margin19.9%120 bps
       
    3 Months Ended 9/30/22Adj. Same
    Branch
    Change
    Sales$1,037,27822.6%
    Gross Margin31.3%170 bps
    Operating Margin18.5%220 bps
    EBITDA Margin20.6%190 bps
    Incremental EBITDA Margin28.8% 

    Nine Month Financial Highlights
    (unless otherwise indicated, comparisons are to nine months ended September 30, 2021)

    9 Months Ended 9/30/22ReportedChange
    Sales$3,744,20154.5%
    Gross Margin29.7%120 bps
    SG&A as % of revenue13.8%0 bps
    Operating Profit$594,04965.9%
    Operating Margin15.9%110 bps
    Net Income$412,15667.8%
    Net Income per diluted share$12.6370.4%
       
    9 Months Ended 9/30/22AdjustedChange
    Sales$3,744,20154.5%
    Gross Margin29.7%110 bps
    SG&A as % of revenue13.6%10 bps
    Operating Profit$600,47464.7%
    Operating Margin16.0%100 bps
    Net Income$414,87461.8%
    Net Income per diluted share$12.7164.4%
    EBITDA$703,19865.9%
    EBITDA Margin18.8%130 bps
       
    9 Months Ended 9/30/22Adj. Same
    Branch
    Change
    Sales$2,926,33020.8%
    Gross Margin30.8%220 bps
    Operating Margin17.6%260 bps
    EBITDA Margin19.8%230 bps
    Incremental EBITDA30.8% 

    Operating Segment Highlights ($ in 000s)
    (comparisons are to the period ended September 30, 2021)

    Installation3 Months
    Ended
    9/30/22
    9 Months
    Ended
    9/30/22
     Specialty Distribution3 Months
    Ended
    9/30/22
    9 Months
    Ended
    9/30/22
    Sales$783,056 $2,208,717  Sales$583,543 $1,715,196 
    Change   Change  
    Volume 12.3%  8.1%  Volume 5.7%  2.1% 
    Price 13.8%  13.7%  Price 13.0%  18.5% 
    M&A 1.7%  4.3%  M&A 92.4%  93.5% 
    Total Change 27.8%  26.1%  Total Change 111.1%  114.0% 
    Operating Margin 19.7%  18.4%  Operating Margin 15.1%  14.3% 
    Change260 bps250 bps Change(200 bps)(130 bps)
    Adj. Operating Margin 19.6%  18.4%  Adj. Operating Margin 15.3%  14.4% 
    Change240 bps240 bps Change(180 bps)(130 bps)
    Adj. EBITDA Margin 21.6%  20.6%  Adj. EBITDA Margin 18.0%  17.0% 
    Change200 bps220 bps Change10 bps50 bps

    Capital Allocation
    Our proven track record of selecting, acquiring, and integrating companies has produced strong returns for our shareholders and we believe acquisitions will continue to be the best use of our capital.  With the successful integration of DI mostly behind us, we continue to build and pursue a robust pipeline of prospects in all three end markets we serve, added Buck.

    Acquisitions
    Through September 30, the Company has completed five acquisitions which are expected to contribute approximately $17.3 million in annual revenue.

    Share repurchases
    In the third quarter of 2022, the Company repurchased 269,544 shares at an average price of $185.50 per share.  Year-to-date the Company has repurchased 1,059,361 shares as an average price of $188.79 per share.

    2022 Outlook

    Sales and Adjusted EBITDA Guidance (1)
    ($ in millions)

    2022LowHigh
    Sales$4,950$5,000
    Adjusted EBITDA*$915$935

    *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.

    Conference Call
    A conference call to discuss third quarter 2022 financial results is scheduled for today, Tuesday, November 1, 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 to follow)

    TopBuild Corp.            
    Condensed Consolidated Statements of Operations (Unaudited)         
    (in thousands, except share and per common share amounts)         
                 
      Three Months Ended September 30, Nine Months Ended September 30,
      2022  2021  2022  2021 
    Net sales $1,300,998  $845,757  $3,744,201  $2,422,810 
    Cost of sales  905,250   595,466   2,633,155   1,731,581 
    Gross profit  395,748   250,291   1,111,046   691,229 
                 
    Selling, general, and administrative expense  172,874   116,485   516,997   333,252 
    Operating profit  222,874   133,806   594,049   357,977 
                 
    Other income (expense), net:            
    Interest expense  (14,561)  (5,503)  (39,936)  (18,210)
    Loss on extinguishment of debt           (13,862)
    Other, net  (303)  66   103   210 
    Other expense, net  (14,864)  (5,437)  (39,833)  (31,862)
    Income before income taxes  208,010   128,369   554,216   326,115 
                 
    Income tax expense  (54,264)  (32,934)  (142,060)  (80,457)
    Net income $153,746  $95,435  $412,156  $245,658 
                 
    Net income per common share:            
    Basic $4.79  $2.91  $12.72  $7.49 
    Diluted $4.76  $2.88  $12.63  $7.41 
                 
    Weighted average shares outstanding:            
    Basic  32,076,285   32,763,311   32,404,275   32,818,145 
    Diluted  32,279,820   33,088,680   32,643,161   33,155,995 
                 


    TopBuild Corp.            
    Condensed Consolidated Statements of Comprehensive Income (Unaudited)      
    (in thousands)            
                 
      Three Months Ended September 30,  Nine Months Ended September 30, 
      2022  2021 2022  2021
    Net income $153,746  $95,435 $412,156  $245,658
    Other comprehensive loss:            
    Foreign currency translation adjustment  (15,158)    (14,133)  
    Comprehensive income $138,588  $95,435 $398,023  $245,658
                 



    TopBuild Corp.       
    Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited)    
    (dollars in thousands)       
      As of 
      September 30, 2022 December 31, 2021 
    ASSETS       
    Current assets:       
    Cash and cash equivalents $159,384 $139,779 
    Receivables, net of an allowance for credit losses of $14,105 at September 30, 2022, and $8,798 at December 31, 2021  815,633  668,419 
    Inventories, net  447,100  352,801 
    Prepaid expenses and other current assets  27,416  26,692 
    Total current assets  1,449,533  1,187,691 
            
    Right of use assets  191,731  177,177 
    Property and equipment, net  248,623  244,574 
    Goodwill  1,966,234  1,949,763 
    Other intangible assets, net  631,005  684,209 
    Other assets  18,991  15,116 
    Total assets $4,506,117 $4,258,530 
            
    LIABILITIES       
    Current liabilities:       
    Accounts payable $510,163 $461,917 
    Current portion of long-term debt  37,367  38,640 
    Accrued liabilities  181,455  175,891 
    Short-term operating lease liabilities  57,268  54,591 
    Short-term finance lease liabilities  2,328  2,387 
    Total current liabilities  788,581  733,426 
            
    Long-term debt  1,428,935  1,454,483 
    Deferred tax liabilities, net  244,608  248,243 
    Long-term portion of insurance reserves  61,243  51,875 
    Long-term operating lease liabilities  138,923  125,339 
    Long-term finance lease liabilities  6,170  7,770 
    Other liabilities  3,218  960 
    Total liabilities  2,671,678  2,622,096 
            
    EQUITY  1,834,439  1,636,434 
    Total liabilities and equity $4,506,117 $4,258,530 
            
      As of September 30, 
      2022 2021 
    Other Financial Data       
    Receivable days  48  45 
    Inventory days  48  33 
    Accounts payable days  63  75 
    Receivables, net plus inventories, net less accounts payable $752,570 $336,027 
    Receivables, net plus inventories, net less accounts payable as a percent of sales (TTM) †  15.5% 10.3%
            
    † 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)      
           
      Nine Months Ended September 30,
      2022  2021 
    Cash Flows Provided by (Used in) Operating Activities:     
    Net income $412,156  $245,658 
    Adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation and amortization  93,051   51,005 
    Share-based compensation  9,673   8,375 
    Loss on extinguishment of debt     13,862 
    Loss on sale of property and equipment  76   1,410 
    Amortization of debt issuance costs  2,147   1,352 
    Provision for bad debt expense  8,837   5,215 
    Loss from inventory obsolescence  5,127   1,667 
    Change in certain assets and liabilities      
    Receivables, net  (152,578)  (62,257)
    Inventories, net  (101,148)  (30,115)
    Prepaid expenses and other current assets  (807)  (2,984)
    Accounts payable  49,079   47,907 
    Accrued liabilities  3,469   30,397 
    Other, net  6,548   (1,987)
    Net cash provided by operating activities  335,630   309,505 
           
    Cash Flows Provided by (Used in) Investing Activities:      
    Purchases of property and equipment  (56,044)  (42,320)
    Acquisition of businesses, net of cash acquired  (20,500)  (205,028)
    Proceeds from sale of property and equipment  2,877   298 
    Net cash used in investing activities  (73,667)  (247,050)
           
    Cash Flows Provided by (Used in) Financing Activities:      
    Proceeds from issuance of long-term debt     411,250 
    Repayment of long-term debt  (28,968)  (427,563)
    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  (11,719)  (11,511)
    Exercise of stock options  2,028   5,952 
    Repurchase of shares of common stock  (200,050)  (35,556)
    Payment of contingent consideration  (1,674)  (628)
    Net cash used in financing activities  (240,383)  (64,556)
    Impact of exchange rate changes on cash  (1,975)   
    Net increase (decrease) in cash and cash equivalents  19,605   (2,101)
    Cash and cash equivalents- Beginning of period  139,779   330,007 
    Cash and cash equivalents- End of period $159,384  $327,906 
           
    Supplemental disclosure of noncash activities:      
    Leased assets obtained in exchange for new operating lease liabilities $80,186  $51,190 
    Accruals for property and equipment  395   580 



    TopBuild Corp.                    
    Segment Data (Unaudited)                    
    (dollars in thousands)                    
                         
      Three Months Ended September 30,     Nine Months Ended September 30,    
       2022   2021 Change    2022   2021 Change  
    Installation                    
    Sales $783,056  $612,900  27.8% $2,208,717  $1,751,278  26.1%
                         
    Operating profit, as reported $154,236  $105,046     $406,835  $277,748    
    Operating margin, as reported  19.7 % 17.1%    18.4 % 15.9%   
                         
    Rationalization charges  (807)        (334)      
    Acquisition related costs  15   171      112   1,283    
    COVID-19 pay              605    
    Operating profit, as adjusted $153,444  $105,217     $406,613  $279,636    
    Operating margin, as adjusted  19.6 % 17.2%     18.4 % 16.0%   
                         
    Share-based compensation  268   272      956   886    
    Depreciation and amortization  15,610   14,906      46,615   42,588    
    EBITDA, as adjusted $169,322  $120,395  40.6% $454,184  $323,110  40.6%
    EBITDA margin, as adjusted  21.6 % 19.6%     20.6 % 18.4%   
                         
    Specialty Distribution                    
    Sales $583,543  $276,398  111.1% $1,715,196  $801,363  114.0%
                         
    Operating profit, as reported $88,364  $47,162     $245,534  $125,403    
    Operating margin, as reported  15.1 % 17.1%     14.3 % 15.6%   
                         
    Acquisition related costs  660         1,235       
    COVID-19 pay              54    
    Operating profit, as adjusted $89,024  $47,162     $246,769  $125,457    
    Operating margin, as adjusted  15.3 % 17.1%     14.4 % 15.7%   
                         
    Share-based compensation  296   241      938   729    
    Depreciation and amortization  15,662   2,138      43,697   6,338    
    EBITDA, as adjusted $104,982  $49,541  111.9% $291,404  $132,524  119.9%
    EBITDA margin, as adjusted  18.0 % 17.9%     17.0 % 16.5%   
                         


    TopBuild Corp.                     
    Adjusted EBITDA (Unaudited)                     
    (dollars in thousands)                     
                          
      Three Months Ended September 30,     Nine Months Ended September 30,     
       2022 2021  Change   2022   2021  Change  
    Total net sales                     
    Sales before eliminations $1,366,599  $889,298      $3,923,913  $2,552,641      
    Intercompany eliminations  (65,601)  (43,541)      (179,712)  (129,831)     
    Net sales after eliminations $1,300,998  $845,757   53.8% $3,744,201  $2,422,810   54.5% 
                          
    Operating profit, as reported - segments $242,600  $152,208      $652,369  $403,151      
    General corporate expense, net  (8,920)  (10,812)      (28,371)  (24,124)     
    Intercompany eliminations  (10,806)  (7,590)      (29,949)  (21,050)     
    Operating profit, as reported $222,874  $133,806      $594,049  $357,977      
    Operating margin, as reported  17.1 % 15.8 %     15.9 % 14.8 %    
                          
    Rationalization charges  (807)         (334)  16      
    Acquisition related costs  2,107   3,634       6,759   5,844      
    COVID-19 pay               659      
    Operating profit, as adjusted $224,174  $137,440      $600,474  $364,496      
    Operating margin, as adjusted  17.2 % 16.3 %     16.0 % 15.0 %    
                          
    Share-based compensation  2,611   2,998       9,673   8,375      
    Depreciation and amortization  32,430   17,784       93,051   51,005      
    EBITDA, as adjusted $259,215  $158,222   63.8% $703,198  $423,876   65.9% 
    EBITDA margin, as adjusted  19.9 % 18.7 %     18.8 % 17.5 %    
                          
    Sales change period over period  455,241          1,321,391         
    EBITDA, as adjusted, change period over period  100,993          279,322         
    Incremental EBITDA, as adjusted, as a percentage of change in sales  22.2 %        21.1 %       
                          
    † 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 September 30, Nine Months Ended September 30, 
      2022  2021  2022  2021  
    Gross Profit Reconciliation             
                  
    Net sales $1,300,998  $845,757  $3,744,201  $2,422,810  
                  
    Gross profit, as reported $395,748  $250,291  $1,111,046  $691,229  
                  
    Acquisition related costs        121     
    COVID-19 pay           592  
    Gross profit, as adjusted $395,748  $250,291  $1,111,167  $691,821  
                  
    Gross margin, as reported  30.4 % 29.6 % 29.7 % 28.5 %
    Gross margin, as adjusted  30.4 % 29.6 % 29.7 % 28.6 %
                  
    Selling, General and Administrative Expense Reconciliation             
                  
    Selling, general, and administrative expense, as reported $172,874  $116,485  $516,997  $333,252  
                  
    Rationalization charges  (807)     (334)  16  
    Acquisition related costs  2,107   3,634   6,638   5,844  
    COVID-19 pay           67  
    Selling, general, and administrative expense, as adjusted $171,574  $112,851  $510,693  $327,325  
                  
    Operating Profit Reconciliation             
                  
    Operating profit, as reported $222,874  $133,806  $594,049  $357,977  
                  
    Rationalization charges  (807)     (334)  16  
    Acquisition related costs  2,107   3,634   6,759   5,844  
    COVID-19 pay           659  
    Operating profit, as adjusted $224,174  $137,440  $600,474  $364,496  
                  
    Operating margin, as reported  17.1 % 15.8 % 15.9 % 14.8 %
    Operating margin, as adjusted  17.2 % 16.3 % 16.0 % 15.0 %
                  
    Income Per Common Share Reconciliation             
                  
    Income before income taxes, as reported $208,010  $128,369  $554,216  $326,115  
                  
    Rationalization charges  (807)     (334)  16  
    Acquisition related costs  2,107   3,634   6,759   5,844  
    Refinancing costs and loss on extinguishment of debt           13,862  
    COVID-19 pay           659  
    Income before income taxes, as adjusted  209,310   132,003   560,641   346,496  
                  
    Tax rate at 26.0%  (54,421)  (34,321)  (145,767)  (90,089) 
    Income, as adjusted $154,889  $97,682  $414,874  $256,407  
                  
    Income per common share, as adjusted $4.80  $2.95  $12.71  $7.73  
                  
    Weighted average diluted common shares outstanding  32,279,820   33,088,680   32,643,161   33,155,995  
                  


    TopBuild Corp.              
    Same Branch and Acquisition Metrics (Unaudited)              
    (dollars in thousands)              
                   
      Three Months Ended September 30, Nine Months Ended September 30,  
      2022  2021  2022  2021   
    Net sales              
    Same branch:              
    Installation $772,589  $612,900  $2,132,833  $1,751,278   
    Specialty Distribution  328,127   276,398   966,145   801,363   
    Eliminations  (63,438)  (43,541)  (172,648)  (129,831)  
    Total same branch  1,037,278   845,757   2,926,330   2,422,810   
                   
    Acquisitions (a):              
    Installation $10,467  $  $75,884  $   
    Specialty Distribution  255,416      749,051      
    Eliminations  (2,163)     (7,064)     
    Total acquisitions  263,720      817,871      
    Total $1,300,998  $845,757  $3,744,201  $2,422,810   
                   
    Gross profit, as adjusted              
    Same branch $324,832  $250,291  $899,959  $691,821   
    Acquisitions (a)  70,916      211,208      
    Total $395,748  $250,291  $1,111,167  $691,821   
                   
    Gross margin, as adjusted              
    Same branch (b)  31.3 % 29.6 % 30.8 % 28.6 % 
    Acquisitions (c)  26.9 %    25.8 %    
                   
    Operating profit, as adjusted              
    Same branch $192,249  $137,440  $516,374  $364,496   
    Acquisitions (a)  31,925      84,100      
    Total $224,174  $137,440  $600,474  $364,496   
                   
    Operating margin, as adjusted              
    Same branch (b)  18.5 % 16.3 % 17.6 % 15.0 % 
    Acquisitions (c)  12.1 %    10.3 %    
                   
    EBITDA, as adjusted              
    Same branch $213,412  $158,222  $578,847  $423,876   
    Acquisitions (a)  45,803      124,351      
    Total $259,215  $158,222  $703,198  $423,876   
                   
    EBITDA, as adjusted, as a percentage of sales              
    Same branch (b)  20.6 %    19.8 %    
    Acquisitions (c)  17.4 %    15.2 %    
    Total (d)  19.9 % 18.7 % 18.8 % 17.5 % 
                   
    As Adjusted Incremental EBITDA, as a percentage of change in sales              
    Same branch (e)  28.8 %    30.8 %    
    Acquisitions (c)  17.4 %    15.2 %    
    Total (f)  22.2 %    21.1 %    
                   
    (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 September 30, Nine Months Ended September 30, 
      2022  2021 2022  2021 
    Net income, as reported $153,746  $95,435 $412,156  $245,658 
    Adjustments to arrive at EBITDA, as adjusted:             
    Interest expense and other, net  14,864   5,437  39,833   18,000 
    Income tax expense  54,264   32,934  142,060   80,457 
    Depreciation and amortization  32,430   17,784  93,051   51,005 
    Share-based compensation  2,611   2,998  9,673   8,375 
    Rationalization charges  (807)    (334)  16 
    Acquisition related costs  2,107   3,634  6,759   5,844 
    Refinancing costs and loss on extinguishment of debt          13,862 
    COVID-19 pay          659 
    EBITDA, as adjusted $259,215  $158,222 $703,198  $423,876 
                  



    TopBuild Corp.              
    Acquisition Adjusted Net Sales (Unaudited)              
    (in thousands)              
     2021 2022 Trailing Twelve Months Ended
     Q4 Q1 Q2 Q3 September 30, 2022
    Net Sales$1,063,398 $1,168,918 $1,274,285 $1,300,998 $4,807,599
    Acquisitions proforma adjustment † 49,639  2,934  438  -  53,011
    Net sales, acquisition adjusted$1,113,037 $1,171,852 $1,274,723 $1,300,998 $4,860,610
                   
                   
    † 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$525.0  545.7 
    Adjustments to arrive at estimated EBITDA, as adjusted:     
    Interest expense and other, net 56.5  54.5 
    Income tax expense 184.5  191.8 
    Depreciation and amortization 125.0  123.0 
    Share-based compensation 13.0  12.0 
    Rationalization charges 1.0  - 
    Acquisition related costs 10.0  8.0 
    Estimated EBITDA, as adjusted$915.0 $935.0 
           



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