Installed Building Products (IBP) Q1 2021 earnings summary

Executive summary

• Achieved record Q1 2021 net revenue of $437.1 million, up 10% year-over-year, with an 18.4% CAGR since 2014.

• Adjusted EBITDA rose 10.8% to $54.5 million, and adjusted net income per diluted share increased 15.4% to $0.90.

• Overcame significant supply chain disruptions and winter storms, which reduced gross profit by $3.0–$3.5 million and earnings by $0.08–$0.09 per share.

• Completed three acquisitions in 2021 totaling $65 million in annual revenue, targeting $100 million for the year.

• Maintained a diversified product and service offering, reducing exposure to downturns in any single category.

Financial highlights

• Net revenue for Q1 2021 reached $437.1 million, a 10% increase from Q1 2020.

• Adjusted gross profit margin was 28.7%, and adjusted EBITDA margin was 12.5%.

• Adjusted net income for Q1 2021 was $26.8 million, or $0.90 per diluted share, compared to $23.2 million, or $0.78 per share, in Q1 2020.

• Net income was $17.3 million ($0.58 per diluted share), up from $16.0 million ($0.53 per share) year-over-year.

• Net cash from operating activities increased 4.8% to $37.6 million.

Outlook and guidance

• Expects 2021 single-family completion growth in the mid to high-single digits.

• Long-term outlook targets mid-teens adjusted EPS growth and annual acquisition revenue of about $100 million.

• Supply chain constraints are expected to persist, but demand and pricing remain strong.

• Anticipates improvement in large commercial business trends later in 2021 and another strong year of sales and earnings growth.