bld_Ex_99

Exhibit 99.1

TopBuild Reports Third Quarter 2015 Financial Results

Ended September 30, 2015

Net sales increased 7.6% to $428 million; Installation segment sales up 8.7%; Distribution Segment Sales up 5.4%

$30.2 Million Operating Profit; $31.3 million on an adjusted basis, up 42%

$0.44 Diluted Earnings Per Share; $0.50 on an adjusted basis, up 56%

DAYTONA BEACH, November 3, 2015 — TopBuild Corp. (NYSE: BLD), the leading installer and distributor of insulation products to the United States construction industry based on revenue, reported financial results for the third quarter ended September 30, 2015.

Jerry Volas, Chief Executive Officer of TopBuild stated, “We continue to execute well within the ongoing improvement in both the residential and commercial building markets. Sales increased 7.6% year-over-year, despite a tight labor market for builders, which is extending the building cycle and, as a result, the traditional lag time in our business. Overall, consistent with our long-term expectation, adjusted EBITDA margin on incremental sales of 20% in the third quarter keeps the year-to-date incremental margin at 20%.”

Third Quarter Financial Highlights

(unless otherwise indicated, comparisons are to quarter ended September 30, 2014)

Net sales increased 7.6% to $427.9 million.

Gross margin on a sequential basis was up 80 basis points. On an adjusted basis, gross margin increased 100 basis points sequentially to 22.2%.

Selling, general and administrative (“SG&A”) expenses as a percentage of sales were 14.9%, a 390 basis point improvement. On an adjusted basis, SG&A expenses as a percentage of sales improved 180 basis points.

Operating profit was $30.2 million compared to $13.8 million. On an adjusted basis, operating profit was $31.3 million compared to $22.1 million, a 41.6% improvement.

Operating margins improved 360 basis points to 7.1%. On an adjusted basis, operating margins were 7.3%, up 170 basis points.

Net income from continuing operations was $16.6 million, or $0.44 per diluted share, compared to $6.5 million or $0.17 per diluted share. On an adjusted basis, net income from continuing operations was $19.0 million, or $0.50 per diluted share compared to $12.1 million or $0.32 per diluted share.

At quarter end, the Company had cash and cash equivalents of $108 million and availability under its revolving credit facility of $68 million for total liquidity of $176 million.

Operating Segment Highlights

(all comparisons are to quarter ended September 30, 2014)

Installation (TruTeamSM)

Net sales increased 8.7% driven by growth in both residential and commercial lines of business as well as improved selling prices.

Operating margin was 7.4%. On an adjusted basis, TruTeam’s operating margin was 7.8%, a 280 basis point improvement.

Recognized as a Top Service Provider at the recent KB Home Strategic Supplier Conference.

Distribution (Service Partners®)

Net sales rose 5.4%, driven by higher sales to external customers and the Installation segment.

Operating margin was 9.9%, a 60 basis point improvement.

Additional Information

Quarterly supplemental materials, including a presentation that will be referenced on today’s conference call, are available on the “Investors” section of the Company’s website at www.topbuild.com.

About TopBuild

TopBuild Corp., headquartered in Daytona Beach, Florida, is the leading installer and distributor of insulation products to the United States construction industry. We provide insulation services nationwide through TruTeamSM, which has over 190 branches in 43 states. Our Service Partners® business distributes insulation from over 70 branches in 35 states. We leverage our national footprint to gain economies of scale while capitalizing on our local market presence to forge strong relationships with our customers. To learn more about TopBuild visit our website at www.topbuild.com.

Conference Call Details

A conference call to discuss third quarter financial results is scheduled for today, November 3, 2015, at 8:00 a.m. Eastern Time. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing 1-844-862-9357 and from outside the U.S. at 1-765-507-2656. Please use the conference identification number 64958612. The conference call will be webcast simultaneously on the “Investors” section of the Company’s website at www.topbuild.com.

A replay of the call will be available on TopBuild’s website or by phone by dialing 1-855-859-2056 and from outside the U.S. at 1-404-537-3406. Please use the conference identification number 64958612. The telephone replay will be available approximately two hours after the end of the call through November 17.

Safe Harbor Statement

Statements contained in this press release that reflect our views about our future performance constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “will,” “would,” “anticipate,” “expect,” “believe,” 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. We caution you against relying on any of these forward-looking statements. Our future performance may be affected by our reliance on residential new construction, residential repair/remodel, and commercial construction; our reliance on third-party suppliers and manufacturers; our ability to attract, develop and retain talented personnel and our sales and labor force; our ability to maintain consistent practices across our locations; our ability to maintain our competitive position; and our ability to realize the expected benefits of the Separation. We discuss many of the risks we face under the caption entitled “Risk Factors” in our Registration Statement on Form 10 filed with the SEC. Our forward-looking statements in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise.

Use of Non-GAAP Financial Measures

The “adjusted” financial measures and ratios presented above are not calculated in accordance with generally accepted accounting principles. The Company believes that these non-GAAP financial measures and ratios, 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. Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in a table incorporated in this news release. Non-GAAP financial measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under generally accepted accounting principles in the United States. Additional information about the Company is contained in the Company’s filings with the Securities and Exchange Commission and is available on TopBuild’s website under “Investors” at www.topbuild.com.

Investor Relations and Media Contact

Idalia Rodriguez

IR@topbuild.com
386-304-2088

TopBuild Corp.

Condensed Consolidated Statements of Operations (Unaudited)

For the Three and Nine Months Ended September 30, 2015 and 2014

(in thousands, except per common share data)


	Three months ended				Nine months ended
	September 30,				September 30,
	2015		2014		2015		2014

Net sales	$	427,890	$	397,650	$	1,190,110	$	1,114,020
Cost of sales		333,890		309,270		936,600		875,120
Gross profit		94,000		88,380		253,510		238,900

Selling, general and administrative expenses		63,810		74,600		212,970		222,770
Operating profit		30,190		13,780		40,540		16,130

Other expense, net:		(1,560)		(3,090)		(7,880)		(9,280)
Income from continuing operations before income taxes		28,630		10,690		32,660		6,850

Income tax expense from continuing operations		(12,000)		(4,220)		(13,200)		(2,290)
Income from continuing operations		16,630		6,470		19,460		4,560

Loss from discontinued operations, net		—		(90)		(230)		(930)
Net income	$	16,630	$	6,380	$	19,230	$	3,630

Income (loss) per common share:
Basic:
Income from continuing operations	$	0.44	$	0.17	$	0.52	$	0.12
Loss from discontinued operations, net		—		—		(0.01)		(0.02)
Net income	$	0.44	$	0.17	$	0.51	$	0.10

Diluted:
Income from continuing operations	$	0.44	$	0.17	$	0.52	$	0.12
Loss from discontinued operations, net		—		—		(0.01)		(0.02)
Net income	$	0.44	$	0.17	$	0.51	$	0.10

TopBuild Corp.

Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited)

(dollars in thousands)



	As of
	September 30,		December 31,
	2015		2014
ASSETS
Current assets:
Cash and cash equivalents	$	108,340	$	2,970
Receivables, net		247,250		220,180
Inventories, net		103,400		106,970
Deferred income taxes, net		6,350		910
Prepaid expenses and other current assets		7,120		4,210
Total current assets		472,460		335,240

Property and equipment, net		92,390		93,160
Goodwill		1,044,040		1,044,040
Other intangible assets, net		2,250		2,960
Other assets		2,170		1,030
Total assets	$	1,613,310	$	1,476,430

LIABILITIES
Current liabilities:
Accounts payable	$	238,870	$	228,720
Current portion of long-term debt		12,500		—
Accrued liabilities		88,830		72,750
Total current liabilities		340,200		301,470

Long-term debt		185,000		—
Deferred income taxes, net		194,480		182,280
Other liabilities		41,650		40,390
Total liabilities		761,330		524,140

EQUITY		851,980		952,290
Total liabilities and equity	$	1,613,310	$	1,476,430


	As of
	September 30,		September 30,
	2015		2014
Other Financial Data
Working Capital Days
Receivable days		46		44
Inventory days		30		30
Accounts payable days		86		82
Working capital	$	111,780	$	119,830
Working capital as a % of sales (LTM)		7.0%		8.1%

TopBuild Corp.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(dollars in thousands)


	Nine months ended
	September 30,
	2015		2014

Net Cash From (For) Operating Activities:
Net income	$	19,230	$	3,630
Adjustments to reconcile net income to net cash from (for) operating activities:
Depreciation and amortization		9,160		19,590
Share-based compensation		3,150		2,920
Loss on sale of property and equipment		2,260		—
Deferred income taxes, net		5,410		880
Changes in assets and liabilities:
Receivables, net		(27,070)		(20,540)
Inventories, net		3,570		3,890
Prepaids and other current assets		(2,910)		470
Accounts payable and accrued liabilities		29,140		28,740
Other, net		1,210		100
Net cash from operating activities		43,150		39,680

Cash Flows From (For) Investing Activities:
Capital expenditures		(10,590)		(8,810)
Other, net		1,270		1,210
Net cash for investing activities		(9,320)		(7,600)

Cash Flows From (For) Financing Activities:
Net transfer from (to) Former Parent		75,930		(32,060)
Cash distribution paid to Former Parent		(200,000)		—
Proceeds from issuance of long-term debt		200,000		—
Repayment of long-term debt		(2,500)		—
Payment of debt issuance costs		(1,720)		—
Other, net		(170)		—
Net cash from (for) financing activities		71,540		(32,060)

Cash and Cash Equivalents
Increase for the period		105,370		20
At December 31		2,970		3,020
At September 30	$	108,340	$	3,040

TopBuild Corp.

Segment Data (Unaudited)

For the Three and Nine Months Ended September 30, 2015 and 2014

(dollars in thousands)


		Three months ended								Nine months ended
		September 30,								September 30,
		2015			2014		Change			2015			2014		Change
Installation
Net sales	$	279,810		$	257,310		9	%	$	778,470		$	711,710		9	%

Operating profit, as reported	$	20,670		$	11,890				$	26,710		$	11,990
Operating margin, as reported		7.4	%		4.6	%				3.4	%		1.7	%

Rationalization/spin-off charges		30			1,000					3,860			1,000
Legal and insurance adjustments, net		1,030			—					2,400			—
Fixed asset disposal (truck mounted devices)		—			—					1,690			—
Operating profit, as adjusted	$	21,730		$	12,890				$	34,660		$	12,990
Operating margin, as adjusted		7.8	%		5.0	%				4.5	%		1.8	%

Distribution
Net sales	$	170,880		$	162,120		5	%	$	476,330		$	460,340		3	%

Operating profit, as reported	$	16,910		$	15,010				$	40,180		$	36,730
Operating margin, as reported		9.9	%		9.3	%				8.4	%		8.0	%

Rationalization charges		—			—					510			—
Operating profit, as adjusted	$	16,910		$	15,010				$	40,690		$	36,730
Operating margin, as adjusted		9.9	%		9.3	%				8.5	%		8.0	%

Total
Net sales before eliminations	$	450,690		$	419,430				$	1,254,800		$	1,172,050
Intercompany eliminations		(22,800)			(21,780)					(64,690)			(58,030)
Net sales after eliminations	$	427,890		$	397,650		8	%	$	1,190,110		$	1,114,020		7	%

Operating profit, as reported - segment	$	37,580		$	26,900				$	66,890		$	48,720
General corporate expense, net		(4,400)			(6,260)					(18,010)			(17,040)
Intercompany eliminations and other adjustments		(2,990)			(6,860)					(8,340)			(15,550)
Operating profit, as reported	$	30,190		$	13,780				$	40,540		$	16,130
Operating margin, as reported		7.1	%		3.5	%				3.4	%		1.4	%

Rationalization/spinoff charges - segment		30			1,000					4,370			1,000
Legal and insurance adjustments, net		1,030			—					2,400			—
Fixed asset disposal (truck mounted devices)		—			—					1,690			—
General corporate expense, net		—			6,260					13,630			17,030
Direct corporate expense		—			6,530					5,600			14,530
Expected standalone corporate expenses		—			(5,500)					(11,000)			(16,500)
Operating profit, as adjusted	$	31,250		$	22,070				$	57,230		$	32,190
Operating margin, as adjusted		7.3	%		5.6	%				4.8	%		2.9	%

Share-based compensation		1,490			940					3,150			2,920
Depreciation and amortization - segment		2,920			6,530					9,160			19,590
EBITDA, as adjusted	$	35,660			29,540					69,540			54,700

Sales change period over period		30,240								76,090
EBITDA, as adjusted change period over period		6,120								14,840
EBITDA, as adjusted as percentage of Sales change		20	%							20	%

TopBuild Corp.

Non-GAAP Reconciliations (Unaudited)

For the Three and Nine Months Ended September 30, 2015 and 2014

(in thousands, except common share data)


	Three months ended						Nine months ended
	September 30,						September 30,
	2015			2014			2015			2014
Gross Profit and Operating Profit Reconciliations

Net sales	$	427,890		$	397,650		$	1,190,110		$	1,114,020

Gross profit, as reported	$	94,000		$	88,380		$	253,510		$	238,900

Insurance adjustment		1,000			-			1,000			-

Gross profit, as adjusted	$	95,000		$	88,380		$	254,510		$	238,900

Gross margin, as reported		22.0	%		22.2	%		21.3	%		21.4	%
Gross margin, as adjusted		22.2	%		22.2	%		21.4	%		21.4	%

Operating profit, as reported	$	30,190		$	13,780		$	40,540		$	16,130

Rationalization/spin-off charges		30			1,000			4,370			1,000
Legal and insurance adjustments, net		1,030			—			2,400			—
Fixed asset disposal (truck mounted device)		—			—			1,690			—
General corporate expense, net		—			6,260			13,630			17,030
Direct corporate expense		—			6,530			5,600			14,530
Expected standalone corporate expense		—			(5,500)			(11,000)			(16,500)
Operating profit, as adjusted	$	31,250		$	22,070		$	57,230		$	32,190

Operating margin, as reported		7.1	%		3.5	%		3.4	%		1.4	%
Operating margin, as adjusted		7.3	%		5.6	%		4.8	%		2.9	%

Earnings Per Common Share Reconciliation

Income from continuing operations
before income taxes, as reported	$	28,630		$	10,690		$	32,660		$	6,850

Rationalization/spin-off charges		30			1,000			4,370			1,000
Legal and insurance adjustments, net		1,030			—			2,400			—
Fixed asset disposal (truck mounted device)		—			—			1,690			—
General corporate expense, net		—			6,260			13,630			17,030
Direct corporate expense		—			6,530			5,600			14,530
Expected standalone corporate expense		—			(5,500)			(11,000)			(16,500)
Income from continuing operations
before income taxes, as adjusted		29,690			18,980			49,350			22,910

Tax at 36% rate		(10,688)			(6,833)			(17,766)			(8,248)
Income from continuing operations, as adjusted	$	19,002		$	12,147		$	31,584		$	14,662

Income per common share, as adjusted	$	0.50		$	0.32		$	0.84		$	0.39

Average diluted common shares outstanding		37,907,784			37,667,947			37,748,756			37,667,947