Topbuild Corp. · NYSE:BLD
Topbuild — Q1 2016 Earnings Presentation
17 slides from Topbuild's earnings presentation, 2016
Slide 1: First Quarter 2016 Earnings Presentation
First Quarter 2016 Earnings Presentation NYSE:BLD
Slide 2: Safe Harbor
Statements contained in this presentation that are not historical and reflect our views about Safe Harbor future periods and events, including our future performance, constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can b
Slide 3: Q1 Overview
Q1 Overview First Quarter ($ in 000s) 2016 Sales $414,024 Y-O-Y Change 15.5% Gross Profit Margin 21.6% Y-O-Y Change 100 bps Adjusted Operating Profit Margin * 5.0% Y-O-Y Change 310 bps Adjusted Net Income per Share * $0.31 Y-O-Y Change $0.25 * See Slides 16 & 17 for adjusted EBITDA reconciliation an
Slide 4: Capital Allocation
Capital Allocation • Accretive/Strategic Acquisitions o Installation and distribution targets Expand market penetration Focus on regions with outsize growth prospects o Commercial Installation Fragmented industry Growth opportunity • $50M Share Repurchase Program o $1.5M Purchased o $28.81 a
Slide 5: Growth Potential
Housing Starts 1,500 1,300 50 Year Growth Average 1,100 Potential 900 700 8 Year Average 2008-2015 500 5
Slide 6: Q1 Operations Review
Q1 Operations Review ($ in 000s) Sales $272,878 $160,888 Y-O-Y Change 16.9% 11.3% Adjusted Operating Profit * $14,334 $14,416 Y-O-Y Increase $14,374 $3,039 Adjusted Operating Margin * 5.3% 9.0% Y-O-Y Change 530 bps 110 bps * See slide 17 for GAAP to non-GAAP reconciliation Mild Winter, Increased Mar
Slide 7: Key Initiatives
Key Initiatives • Continue1,500 to streamline and simplify the business 1,300 • Local empowerment and execution 1,100 • Expand market share in RNC and leverage the growth in new home construction 900 • Grow opportunity in Commercial business 700 500 Continuing to Drive Operational Improvements 7 7
Slide 8: Commercial Growth
Commercial Growth Existing Expertise Commercial Hub Take what we Leverage our Outpace the are already scale and industry with doing in commercial effective, commercial expertise sustainable growth 8
Slide 9: TopBuild Home Services
TopBuild Home Services 2016 ENERGY STAR Partner 1,500 Customer Value Proposition • Pre-construction plan reviews 1,300 • Home energy analysis modeling • Diagnostic testing 1,100 Benefits to TopBuild 900 • More stringent energy codes require more pounds of insulation 700 • Another important channel t
Slide 10: Income Statement
Income Statement First Quarter First Quarter ($ in 000s) 2016 2015 Sales $414,024 $358,460 Y-O-Y Change 15.5% Adjusted Operating Profit * $20,775 $6,645 Y-O-Y Change 212.6% Adjusted Operating Margin * 5.0% 1.9% Y-O-Y Change 310 bps Adjusted EBITDA * $25,270 $10,506 Y-O-Y Change 140.5% * See Slides 1
Slide 11: Installation Segment Highlights
First Quarter First Quarter ($ in 000s) 2016 2015 Sales $272,878 $233,363 Y-O-Y Change 16.9% Adjusted Operating Profit * $14,334 ($40) Y-O-Y Change Fav Adjusted Operating Margin * 5.3% (0.0%) Y-O-Y Change 530 bps * See slide 17 for GAAP to non-GAAP reconciliation Highlights • Strong sales growth dri
Slide 12: Distribution Segment Highlights
First Quarter First Quarter ($ in 000s) 2016 2015 Sales $160,888 $144,611 Y-O-Y Change 11.3% Adjusted Operating Profit * $14,416 $11,377 Y-O-Y Change 26.7% Adjusted Operating Margin * 9.0% 7.9% Y-O-Y Change 110 bps * See slide 17 for GAAP to non-GAAP reconciliation Highlights • Sales up 11.3% for im
Slide 13: Selling, general and administrative expenses
Selling, general and administrative expenses First Quarter First Quarter ($ in 000s) 2016 2015 SG&A expenses as reported $69,688 $74,963 SG&A % of sales 16.8% 20.9% SG&A % of sales vs. prior year 410 bps SG&A adjusted for non-GAAP items and allocations $68,680 $67,171 Adj. SG&A % of sales 16.6% 18.7
Slide 14: Adjusted EPS
Adjusted EPS Three Months Ended ($ in 000s) March 31, 2016 2015 Income (loss) from continuing operations before income taxes, as reported $ 18,169 $ (4,300) Rationalization charges † 1,008 642 Legal adjustments, net — 350 Masco general corporate expense, net — 7,903 Masco direct corporate expense —
Slide 15: Cash Flow/Working Capital/CAPEX
Cash Flow/Working Capital/CAPEX Three Months ended Three Months ended ($ in 000s) March, 31 2016 March, 31 2015 CAPEX $2,900 $2,298 Working Capital % to sales 7.6% 8.1% (using LTM sales) Operating Cash Flow $3,353 ($18,639) Cash Balance $108,150 $3,599 Highlights • CAPEX @ 0.7% of sales • Working ca
Slide 16: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended March 31, ($ in 000s) 2016 2015 Change Net sales after eliminations $ 414,024 $ 358,460 15.5 % Operating profit (loss), as reported $ 19,767 $ (1,147) Operating margin, as reported 4.8 % (0.3) % Rationalization charges 1,008 ‡ 642 † Legal adjustments
Slide 17: Segment GAAP to Non-GAAP Reconciliation
Segment GAAP to Non-GAAP Reconciliation Three Months Ended ($ in 000s) March 31, 2016 2015 Change Installation Sales $ 272,878 $ 233,363 16.9 % Operating profit (loss), as reported $ 13,506 $ (1,032) Operating margin, as reported 4.9 % (0.4) % Rationalization charges 828 642 † Legal adjustments, net