Installed Building Products, Inc. · NYSE:IBP
Installed Building Products — FY2022 Earnings Presentation
26 slides from Installed Building Products's earnings presentation, Feb 22, 2023
Slide 1: Installed Building Products Fiscal 2022
INSTALLED BUILDING PRODUCTS Fiscal 2022 Reported February 22, 2023
Slide 2: Disclaimer
Disclaimer Fiscal 2022 IR Presentation This presentation contains "forward-looking statements" as defined under U.S. federal securities laws. Forward -looking statements are generally identified by the use of the words "will," "may," "believes," "expects," "forecast," "intends," "anticipates," "proj
Slide 3: Company Overview
Company Overview
Slide 4: National Scale
National Scale STRONG LOCAL PRESENCE + NATIONAL SCALE = HIGH QUALITY SERVICE WITH OPERATING LEVERAGE • One of the nation’s largest1 new residential insulation installers • Diversified installer of complementary building products for residential and commercial builders • National platform of over 230
Slide 5: IBP Growth Strategy
IBP Growth Strategy CAPITALIZE ON NEW RESIDENTIAL AND COMMERCIAL CONSTRUCTION MARKETS IN INSTALLATION SEGMENT Twelve months ended December 31, 2022 • Accretive acquisitions in primary residential end Residential new construction $ 1,980,253 74 % market GEOGRAPHIC Repair and remodel 151,761 6% Commer
Slide 6: Growth Focused Capital Allocation Strategy
Growth Focused Capital Allocation Strategy CAPITAL AND CASH FLOW PRIORITIES CAPITAL ALLOCATION (in thousands) Acquisitions are Primary Use of Capital Acquisition Cap Ex Shares Repurchases Dividends • Acquisitions contribute to profitability in year one $500,000 • Disciplined approach generates compe
Slide 7: Successful Acquisition Strategy
Successful Acquisition Strategy LONG-TERM STRATEGY OF PURSUING VALUE-ENHANCING STRATEGIC ACQUISITIONS • Acquisition rationale Acquirer of choice, over 160 integrated acquisitions ‒ Expand scale, product diversification, market presence Recovery • Keys to our approach ‒ Realize synergies within scala
Slide 8: Annual Operating Framework
Annual Operating Framework COMPELLING FINANCIAL MODEL CREATES LONG-TERM VALUE 2018-2022 Long-Term Outlook Acquisition Growth Assumptions Outperform U.S. Target >$100M of acquired Organic Revenue 5-25% Residential Growth revenue annually Completions Growth Material purchasing power + Stable within Pr
Slide 9: Diverse Service and Product Offering
Diverse Service and Product Offering FRAGMENTED NON-INSULATION PRODUCT MARKET ALLOWS FOR REVENUE DIVERSIFICATION AND ACQUISITIONS SHOWER DOORS, COMMERCIAL INSULATION CLOSET SHELVING GARAGE DOORS RAIN GUTTERS WINDOW BLINDS MIRRORS, HARDWARE PRODUCTS Single Digit ~30% Share NA ~7% Share ~2% Share ~6%
Slide 10: Commercial Opportunities
Commercial Opportunities HEAVY COMMERCIAL: EXPAND CURRENT PRODUCTS AND GROW REPAIR AND RESTORATION OPPORTUNITIES FIREPROOFING Maintain structural integrity of steel and concrete exposed to fire FIRESTOPPING Fire-stopping is passive protection that FIREPROOFING impedes the passage of fire, smoke and
Slide 11: ESG Highlights
ESG Highlights CLICK HERE TO VIEW ESG REPORT
Slide 12: Environmental
Environmental OUR BUSINESS IS COMMITTED TO SUSTAINABILITY, INSULATION IS THE BEST WAY TO PREVENT ENERGY WASTE Energy Efficiency • Our customers are creating homes in the houses we build with them, and that includes keeping their families safe and warm while also saving energy. Responsible Materials
Slide 13: Social Governance and Responsibility
Social Governance and Responsibility MAINTAINING TURNOVER SIGNIFICANTLY BELOW INDUSTRY AVERAGE SINCE EARLY 2017 Employee Benefits • Medical insurance • 401k • Paid time-off benefits Employee Programs • Longevity-based stock awards • Financial wellness program • Installed Building Products Foundation
Slide 14: Diversity, Equity, and Inclusion (DEI)
Diversity, Equity, and Inclusion (DEI) WE ARE COMMITTED TO MAINTAINING WORKPLACES FREE FROM DISCRIMINATION AND HARASSMENT 1 Management training programs intend to address minority representation in management and sales positions, as well as gender income equality 2 Assessment of vendors and supplier
Slide 15: Community and Employee Engagement
Community and Employee Engagement COMMITMENT TO OUR EMPLOYEES AND COMMUNITIES WE SERVE INSTALLED BUILDING PRODUCTS Impact The scholarship has allowed me to focus on my studies without having to be worried about my financial responsibilities at school. $2.4 million in scholarships have been committed
Slide 16: Financial Performance
Financial Performance
Slide 17: Strong Top-Line Momentum
Strong Top-Line Momentum 22.6% REVENUE CAGR FROM 2014 TO 2022 $2,670 $1,969 $1,653 $1,512 $1,336 $1,133 $863 $663 $518 Twelve months ended December 31, (in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 IBP Net Revenue Growth 19.9 % 27.9 % 30.2 % 31.3 % 18.0 % 13.1 % 9.4 % 19.1 % 35.6 % Tota
Slide 18: Summary Financial Results
Summary Financial Results Twelve months ended December 31, ($ in millions) 2018 2019 2020 2021 2022 Net Revenue $ 1,336 $ 1,512 $ 1,653 $ 1,969 $ 2,670 % Net Revenue Growth1 18.0% 13.1% 9.4% 19.1% 35.6% Same Branch Consolidated Sales Growth 11.5% 8.6% 4.5% 9.7% 24.6% COGS (Adjusted)2 $ 963 $ 1,076 $
Slide 19: Multi-Year Financial Improvement
Multi-Year Financial Improvement ADDITIONAL VALUE DRIVEN BY OPERATING LEVERAGE AND NATIONAL SCALE Adjusted Gross Profit1 Adjusted Selling & Administrative2 1 $436 Adjusted Gross Profit is a non-GAAP financial measure. A reconciliation to $828 the most comparable measure prepared $348 in accordance w
Slide 20: Strong Balance Sheet
Strong Balance Sheet Twelve months ended December 31, ($ in millions) 2018 2019 2020 2021 2022 Cash $ 90 $ 178 $ 232 $ 334 $ 230 Short-Term Investments 10 38 — — — Senior Notes, net of unamortized debt issuance costs1 — 295 296 296 297 Term Loan, net of unamortized debt issuance costs2 391 198 199 4
Slide 21: Appendix
Appendix
Slide 22: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation Twelve months ended December 31, ($ in millions) 2018 2019 2020 2021 2022 1 Addback of employee pay, employee Net Income $ 54.7 $ 68.2 $ 97.2 $ 118.8 $ 223.4 medical expenses and legal fees directly attributable to COVID-19. Interest expense 20.5 28.1 30.3 3
Slide 23: Adjusted Selling & Administrative Expense
Adjusted Selling & Administrative Expense Twelve months ended December 31, ($ in millions) 2018 2019 2020 2021 2022 Selling & Administrative $ 253.0 $ 289.2 $ 319.6 $ 364.6 $ 438.6 Acquisition related expenses 2.7 2.5 3.0 3.8 3.0 Gains on acquisition earnouts — (0.4) (0.2) (1.0) (16.1) Share-based c
Slide 24: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Three months ended December 31, Twelve months ended December 31, ($ in millions, except share and per share amounts) 2022 2021 2022 2021 Net income, as reported $ 68.7 $ 29.4 $ 223.4 $ 118.8 Adjustments for adjusted net income Write-off of capital loan costs — 1.8
Slide 25: Adjusted Cost of Sales and Adjusted Gross Profit Reconciliation
Adjusted Cost of Sales and Adjusted Gross Profit Reconciliation Twelve months ended December 31, ($ in millions) 2018 2019 2020 2021 2022 Net revenue $ 1,336.4 $ 1,511.6 $ 1,653.2 $ 1,968.6 $ 2,669.8 Cost of Sales $ 964.8 $ 1,076.8 $ 1,143.3 $ 1,379.1 1,842.1 Share-based compensation expense 0.8 0.4
Slide 26: Investor Relations
INVESTOR RELATIONS 614-221-9944 [email protected]
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