Exhibit 99.1

Graphic

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

TopBuild Reports Fourth Quarter and
Year-End 2023 Financial Results

Fourth Quarter Highlights

·

Sales increase 1.7% to $1.3 billion

·

Gross margin expands 70 basis points to 30.4%

·

Adjusted EBITDA margin expands 80 basis points to 19.6%

Full Year Highlights

·

Sales increase 3.7% to $5.2 billion

·

Gross margin expands 120 basis points to 30.9%

·

Adjusted EBITDA margin expands 140 basis points to 20.2%


Provides 2024 Sales and Adjusted EBITDA Outlook


Fourth Quarter Financial Highlights

(comparisons are to the quarter ended December 31, 2022)

3 Months Ended 12/31/23

Reported

Change

“Our fourth quarter results cap a year of continuous improvement and profitable growth.

“We are particularly pleased with the performance of our businesses that serve the commercial and industrial end markets, which grew 4.9% in the fourth quarter and 6.2% for the full year.”

ROBERT BUCK, PRESIDENT & CEO, TOPBUILD

Sales

$1,286,074

1.7%

Gross Margin

30.4%

70 bps

SG&A as % of revenue

14.5%

90 bps

Operating Profit

$204,800

0.8%

Operating Margin

15.9%

(20 bps)

Net Income

$146,382

1.8%

Net Income per diluted share

$4.60

1.8%

 

 

 

3 Months Ended 12/31/23

Adjusted

Change

Sales

$1,286,074

1.7%

Gross Margin

30.4%

70 bps

SG&A as % of revenue

13.9%

40 bps

Operating Profit

$212,222

3.8%

Operating Margin

16.5%

30 bps

Net Income

$149,305

6.6%

Net Income per diluted share

$4.69

6.6%

EBITDA

$251,641

6.0%

EBITDA Margin

19.6%

80 bps

NYSE:BLD

February 28, 2024

topbuild.com


Full Year 2023 Financial Highlights

(comparisons are to the twelve months ended December 31, 2022)

12 Months Ended 12/31/23

Reported

Change

“2023 was another year of consistent performance and solid execution for TopBuild, demonstrating the strength of our unique operating model and our ability to adapt to changing environments.

“Our unrelenting focus on driving operational efficiencies, striving for operational excellence and improving sales and labor productivity contributed to our solid revenue growth and year-over-year margin expansion.”

ROBERT BUCK, PRESIDENT & CEO, TOPBUILD

Sales

$5,194,694

3.7%

Gross Margin

30.9%

120 bps

SG&A as % of revenue

14.0%

20 bps

Operating Profit

$878,825

10.2%

Operating Margin

16.9%

100 bps

Net Income

$614,254

10.5%

Net Income per diluted share

$19.33

12.8%

 

 

 

12 Months Ended 12/31/23

Adjusted

Change

Sales

$5,194,694

3.7%

Gross Margin

30.9%

120 bps

SG&A as % of revenue

13.5%

(10 bps)

Operating Profit

$900,446

11.9%

Operating Margin

17.3%

120 bps

Net Income

$626,857

13.0%

Net Income per diluted share

$19.73

15.3%

EBITDA

$1,049,160

11.5%

EBITDA Margin

20.2%

140 bps

Operating Segment Highlights ($ in 000s)

(comparisons are to the periods ended December 31, 2022)

Installation

3 Months
Ended
12/31/23

12 Months
Ended
12/31/23

Specialty Distribution

3 Months
Ended
12/31/23

12 Months
Ended
12/31/23

Sales

$790,414

$3,188,232

Sales

$564,468

$2,268,339

Change

 

 

Change

 

 

Volume

-3.0%

0.4%

 

Volume

-0.2%

-1.6%

Price

2.4%

3.6%

 

Price

0.5%

1.1%

M&A

5.1%

3.6%

 

M&A

0.0%

0.0%

Dispositions

-0.7%

-0.3%

 

Dispositions

0.0%

0.0%

Total Change

3.8%

7.3%

Total Change

0.2%

-0.4%

Operating Margin

19.0%

20.2%

Operating Margin

14.8%

14.6%

Change

40 bps

170 bps

Change

50 bps

30 bps

Adj. Operating Margin

19.0%

20.3%

Adj. Operating Margin

14.8%

14.6%

Change

30 bps

180 bps

Change

40 bps

20 bps

Adj. EBITDA Margin

21.4%

22.5%

Adj. EBITDA Margin

17.5%

17.3%

Change

60 bps

190 bps

Change

80 bps

40 bps

NYSE:BLD

February 28, 2024

topbuild.com


Capital Allocation

2023 Acquisitions

The Company acquired four residential insulation installation companies which are expected to generate over $172 million in annual revenue.  They are listed in the chart below.

TTM Revenue at

Month

“Acquisitions remain the best use of our capital, generating strong returns for our shareholders. We continue to work diligently on our planned acquisition of SPI. All three of our end-markets are highly fragmented and present great opportunities to reinvest our strong free cash flow to drive shareholder value.”

ROBERT BUCK, PRESIDENT & CEO, TOPBUILD

Company Acquired

Acquisition ($ millions)

Acquired

   

SRI Holdings

$62.0

January

Best Insulation

$100.0

July

Rocky Mountain Spray Foam

$5.4

July

Panhandle Insulation

$5.3

October

Total

$172.7

2024 Acquisitions

Year-to-date, the Company has acquired one residential insulation company, Brabble Insulation, and has entered into an agreement to acquire a second residential insulation installer, Morris Black & Sons, which will close on March 1st.  Combined, they are expected to generate approximately $9 million of annual revenue.  The Company also previously announced that it had entered into an agreement to acquire the assets of Pest Control Insulation, a specialty distribution company focused on blended, customized insulation products, accessories, and equipment for sale exclusively to the pest control industry. In 2023, Pest Control Insulation generated approximately $24 million of revenue.  This transaction is expected to close on March 1st.

2024 Outlook

Sales and Adjusted EBITDA Guidance (1)

($ in millions)

2024

Low

High

“We expect 2024 will be another strong year for TopBuild. We see many opportunities in the year ahead to again demonstrate the unique advantages of our operating model and take advantage of our multiple avenues for growth.”

ROBERT BUCK, PRESIDENT & CEO, TOPBUILD

Sales

$      5,360

$      5,560

   

Adjusted EBITDA*

$      1,040

$      1,130

*See table for adjusted EBITDA reconciliation.

2024 Assumptions

Residential Revenue

Mid Single Digit Growth

Commercial/Industrial Revenue

Mid Single Digit Growth

CapEx (% of Sales)

1.5% to 2.0%

Working Capital Goal (% LTM Sales)

12% to 14%

Income Tax Rate

25% to 27%

Incremental Adjusted EBITDA (Organic)

22% to 27%

Incremental Adjusted EBITDA (Acquisitions Year One)

11% to 16%

NYSE:BLD

February 28, 2024

topbuild.com


(1) This outlook reflects management’s current view of present and future market conditions and are based on assumptions such as housing starts, general and administrative expenses, 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.  A reconciliation of non-GAAP targets to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, the costs and expenses that may be incurred in the future and therefore, cannot be reasonably predicted. The effect of these excluded items may be significant.  Factors that could cause actual long-term results to differ materially from TopBuild’s current expectations are discussed below and are also detailed in the Company’s most recent Annual Report on Form 10-K and subsequent SEC reports.

Conference Call

A conference call to discuss fourth quarter 2023 financial results is scheduled for today, Wednesday, February 28, 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 Installation segment which has approximately 240 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 170 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.

NYSE:BLD

February 28, 2024

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 can be identified by words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “may,” “project,” “estimate” 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 follow)

NYSE:BLD

February 28, 2024

topbuild.com


TopBuild Corp.

Consolidated Statements of Operations

(in thousands, except share and per common share amounts)

Three Months Ended December 31, 

Year Ended December 31, 

2023

2022

2023

2022

Net sales

$

1,286,074

    

$

1,264,543

    

$

5,194,694

    

$

5,008,744

Cost of sales

894,958

888,871

3,590,874

3,522,025

Gross profit

391,116

375,672

1,603,820

1,486,719

Selling, general, and administrative expense

186,316

172,558

724,995

689,555

Operating profit

204,800

203,114

878,825

797,164

Other income (expense), net:

Interest expense

(19,187)

(16,779)

(74,614)

(56,716)

Other, net

8,729

1,585

21,272

1,687

Other expense, net

(10,458)

(15,194)

(53,342)

(55,029)

Income before income taxes

194,342

187,920

825,483

742,135

Income tax expense

(47,960)

(44,086)

(211,229)

(186,146)

Net income

$

146,382

$

143,834

$

614,254

$

555,989

Net income per common share:

Basic

$

4.63

$

4.54

$

19.44

$

17.26

Diluted

$

4.60

$

4.52

$

19.33

$

17.14

 

Weighted average shares outstanding:

Basic

31,623,506

31,648,741

31,597,508

32,213,839

Diluted

31,805,569

31,838,352

31,776,901

32,440,405

NYSE:BLD

February 28, 2024

topbuild.com


TopBuild Corp.

Consolidated Statements of Comprehensive Income

(in thousands)

Three Months Ended December 31, 

Year Ended December 31, 

2023

2022

2023

2022

Net income

$

146,382

$

143,834

$

614,254

$

555,989

Other comprehensive income (loss):

Foreign currency translation adjustment

4,227

(6,762)

7,255

(15,286)

Comprehensive income

$

150,609

$

137,072

$

621,509

$

540,703

NYSE:BLD

February 28, 2024

topbuild.com


TopBuild Corp.

Consolidated Balance Sheets and Other Financial Data

(dollars in thousands)

As of December 31,

2023

2022

ASSETS

Current assets:

Cash and cash equivalents

$

848,565

$

240,069

Receivables, net of an allowance for credit losses of $23,948 at December 31, 2023, and $20,014 at December 31, 2022

799,009

 

836,071

Inventories

364,731

 

438,644

Prepaid expenses and other current assets

36,939

 

34,257

Total current assets

2,049,244

 

1,549,041

Right of use assets

204,629

 

205,892

Property and equipment, net

264,487

 

253,484

Goodwill

2,042,568

 

1,966,994

Other intangible assets, net

591,058

 

614,967

Other assets

10,865

 

16,453

Total assets

$

5,162,851

$

4,606,831

LIABILITIES

Current liabilities:

Accounts payable

$

469,585

$

487,114

Current portion of long-term debt

47,039

40,068

Accrued liabilities

187,217

 

199,370

Short-term operating lease liabilities

65,780

 

60,880

Short-term finance lease liabilities

1,917

2,207

Total current liabilities

771,538

 

789,639

Long-term debt

1,373,028

 

1,417,257

Deferred tax liabilities, net

243,930

 

251,481

Long-term portion of insurance reserves

58,783

59,783

Long-term operating lease liabilities

146,213

149,943

Long-term finance lease liabilities

4,150

6,673

Other liabilities

1,554

 

2,349

Total liabilities

2,599,196

 

2,677,125

EQUITY

2,563,655

 

1,929,706

Total liabilities and equity

$

5,162,851

$

4,606,831

As of December 31,

    

2023

2022

Other Financial Data

Receivable days

53

54

Inventory days

37

45

Accounts payable days

62

66

Receivables, net plus inventories less accounts payable

$

694,155

$

787,601

Receivables, net plus inventories less accounts payable as a percent of sales (TTM) †

13.2

%

15.7

%

Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches

NYSE:BLD

February 28, 2024

topbuild.com


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

Year Ended December 31, 

2023

2022

Cash Flows Provided by (Used in) Operating Activities:

    

    

    

Net income

$

614,254

$

555,989

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

132,878

123,335

Share-based compensation

15,838

12,310

Loss on sale of assets

2,349

1,833

Amortization of debt issuance costs

2,881

2,867

Provision for bad debt expense

6,481

5,510

Provision for inventory obsolescence

4,794

6,659

Deferred income taxes, net

(7,476)

6,041

Change in certain assets and liabilities:

Receivables, net

20,812

(169,327)

Inventories

74,529

(93,874)

Prepaid expenses and other current assets

(2,598)

(9,222)

Accounts payable

(8,867)

26,581

Accrued liabilities

(4,444)

20,703

Other, net

(2,022)

6,396

Net cash provided by operating activities

849,409

495,801

Cash Flows Provided by (Used in) Investing Activities:

Purchases of property and equipment

(63,998)

(76,382)

Acquisition of businesses, net of cash acquired

(149,154)

(20,500)

Proceeds from sale of assets

14,982

2,975

Net cash used in investing activities

(198,170)

(93,907)

Cash Flows Provided by (Used in) Financing Activities:

Repayment of long-term debt

(40,138)

(38,658)

Proceeds from revolving credit facility

70,000

Repayment of revolving credit facility

(70,000)

Taxes withheld and paid on employees' equity awards

(6,528)

(11,719)

Exercise of stock options

3,130

2,028

Repurchase of shares of common stock

(250,050)

Payment of contingent consideration

(300)

(1,674)

Net cash used in financing activities

(43,836)

(300,073)

Impact of exchange rate changes on cash

1,093

(1,531)

Net increase in cash and cash equivalents

608,496

100,290

Cash and cash equivalents - Beginning of period

 

240,069

 

139,779

Cash and cash equivalents - End of period

$

848,565

$

240,069

Supplemental disclosure of cash paid for:

Interest

$

71,463

$

49,888

Income taxes

220,773

186,722

Supplemental disclosure of noncash activities:

Leased assets obtained in exchange for new operating lease liabilities

$

56,255

$

103,997

Accruals for property and equipment

912

141

NYSE:BLD

February 28, 2024

topbuild.com


TopBuild Corp.

Segment Data (Unaudited)

(dollars in thousands)

Three Months Ended December 31, 

Year Ended December 31, 

2023

2022

Change

2023

2022

Change

Installation

Sales

$

790,414

$

761,261

3.8

%

$

3,188,232

$

2,969,978

7.3

%

Operating profit, as reported

$

149,999

$

141,961

$

644,392

$

548,795

Operating margin, as reported

19.0

%

18.6

%

20.2

%

18.5

%

Rationalization charges

41

161

1,923

(174)

Acquisition related costs

11

23

527

135

Operating profit, as adjusted

$

150,051

$

142,145

$

646,842

$

548,756

Operating margin, as adjusted

19.0

%

18.7

%

20.3

%

18.5

%

Share-based compensation

372

339

1,496

1,296

Depreciation and amortization

18,422

15,869

69,123

62,483

EBITDA, as adjusted

$

168,845

$

158,353

6.6

%

$

717,461

$

612,535

17.1

%

EBITDA margin, as adjusted

21.4

%

20.8

%

22.5

%

20.6

%

Specialty Distribution

Sales

$

564,468

$

563,065

0.2

%

$

2,268,339

$

2,278,261

(0.4)

%

Operating profit, as reported

$

83,355

$

80,692

$

330,938

$

326,226

Operating margin, as reported

14.8

%

14.3

%

14.6

%

14.3

%

Acquisition related costs

266

350

1,502

Operating profit, as adjusted

$

83,355

$

80,958

$

331,288

$

327,728

Operating margin, as adjusted

14.8

%

14.4

%

14.6

%

14.4

%

Share-based compensation

298

104

1,286

1,041

Depreciation and amortization

15,193

13,184

59,607

56,881

EBITDA, as adjusted

$

98,846

$

94,246

4.9

%

$

392,181

$

385,650

1.7

%

EBITDA margin, as adjusted

17.5

%

16.7

%

17.3

%

16.9

%

NYSE:BLD

February 28, 2024

topbuild.com


TopBuild Corp.

Adjusted EBITDA (Unaudited)

(dollars in thousands)

Three Months Ended December 31, 

Year Ended December 31, 

2023

2022

Change

2023

2022

Change

Total net sales

Sales before eliminations

$

1,354,882

$

1,324,326

$

5,456,571

$

5,248,239

Intercompany eliminations

(68,808)

(59,783)

(261,877)

(239,495)

Net sales after eliminations

$

1,286,074

$

1,264,543

1.7

%

$

5,194,694

$

5,008,744

3.7

%

Operating profit, as reported - segments

$

233,354

$

222,653

$

975,330

$

875,021

General corporate expense, net

(16,787)

(9,650)

(52,067)

(38,018)

Intercompany eliminations

(11,767)

(9,889)

(44,438)

(39,839)

Operating profit, as reported

$

204,800

$

203,114

$

878,825

$

797,164

Operating margin, as reported

15.9

%

16.1

%

16.9

%

15.9

%

Rationalization charges

41

162

1,923

(172)

Acquisition related costs †

7,381

1,216

19,698

7,974

Operating profit, as adjusted

$

212,222

$

204,492

$

900,446

$

804,966

Operating margin, as adjusted

16.5

%

16.2

%

17.3

%

16.1

%

Share-based compensation

4,757

2,637

15,836

12,310

Depreciation and amortization

34,662

30,284

132,878

123,335

EBITDA, as adjusted

$

251,641

$

237,413

6.0

%

$

1,049,160

$

940,611

11.5

%

EBITDA margin, as adjusted

19.6

%

18.8

%

20.2

%

18.8

%

Sales change period over period

21,531

185,950

EBITDA, as adjusted, change period over period

14,228

108,549

Incremental EBITDA, as adjusted, as a percentage of change in sales

66.1

%

58.4

%

† Acquisition related costs include corporate level adjustments as well as segment operating adjustments.

NYSE:BLD

February 28, 2024

topbuild.com


TopBuild Corp.

Same Branch and Acquisition Metrics (Unaudited)

(dollars in thousands)

Three Months Ended December 31, 

Year Ended December 31, 

2023

2022

2023

2022

Net sales

Same branch:

Installation

$

751,971

$

756,330

$

3,080,770

$

2,960,926

Specialty Distribution

564,468

563,065

2,268,339

2,278,261

Eliminations

(68,808)

(59,783)

(261,877)

(239,495)

Total same branch

$

1,247,631

$

1,259,612

$

5,087,232

$

4,999,692

Acquisitions (a):

Installation

$

38,443

$

-

$

107,462

$

-

Total acquisitions

38,443

-

107,462

-

Dispositions (b):

Installation

$

-

$

4,931

$

-

$

9,052

Total dispositions

-

4,931

-

9,052

Total net sales

$

1,286,074

$

1,264,543

$

5,194,694

$

5,008,744

EBITDA, as adjusted

Same branch

$

246,769

$

236,941

$

1,033,980

$

939,183

Acquisitions (a)

4,872

-

15,180

-

Dispositions (b)

-

472

-

1,428

Total

$

251,641

$

237,413

$

1,049,160

$

940,611

EBITDA, as adjusted, as a percentage of sales

Same branch (c)

19.8

%

20.3

%

Acquisitions (d)

12.7

%

14.1

%

Total (e)

19.6

%

18.8

%

20.2

%

18.8

%

As Adjusted Incremental EBITDA, as a percentage of change in sales

Same branch (f)

NM

108.3

%

Acquisitions (d)

12.7

%

14.1

%

Total (g)

66.1

%

58.4

%


(a) Represents current year impact of acquisitions in their first twelve months

(b) Represents operating results in prior period previously classified as same branch, including $4,121 net sales and $956 EBITDA, as adjusted, in the third quarter of 2022, respectively

(c) Same branch metric, as adjusted, as a percentage of same branch sales

(d) Acquired metric, as adjusted, as a percentage of acquired sales

(e) Total EBITDA, as adjusted, as a percentage of total sales

(f) Change in same branch EBITDA, as adjusted, as a percentage of change in same branch sales

(g) Change in total EBITDA, as adjusted, as a percentage of change in total sales

NM Not Meaningful

NYSE:BLD

February 28, 2024

topbuild.com


TopBuild Corp.

Non-GAAP Reconciliations (Unaudited)

(in thousands, except share and per common share amounts)

Three Months Ended December 31, 

Year Ended December 31, 

2023

2022

2023

2022

Gross Profit Reconciliation

Net sales

$

1,286,074

$

1,264,543

$

5,194,694

$

5,008,744

Gross profit, as reported

$

391,116

$

375,672

$

1,603,820

$

1,486,719

Acquisition related costs

-

15

-

135

Gross profit, as adjusted

$

391,116

$

375,687

$

1,603,820

$

1,486,854

Gross margin, as reported

30.4

%

29.7

%

30.9

%

29.7

%

Gross margin, as adjusted

30.4

%

29.7

%

30.9

%

29.7

%

Selling, General and Administrative Expense Reconciliation

Selling, general, and administrative expense, as reported

$

186,316

$

172,558

$

724,995

$

689,555

Rationalization charges

41

162

1,923

(172)

Acquisition related costs

7,381

1,201

19,698

7,839

Selling, general, and administrative expense, as adjusted

$

178,894

$

171,195

$

703,374

$

681,888

Operating Profit Reconciliation

Operating profit, as reported

$

204,800

$

203,114

$

878,825

$

797,164

Rationalization charges

41

162

1,923

(172)

Acquisition related costs

7,381

1,216

19,698

7,974

Operating profit, as adjusted

$

212,222

$

204,492

$

900,446

$

804,966

Operating margin, as reported

15.9

%

16.1

%

16.9

%

15.9

%

Operating margin, as adjusted

16.5

%

16.2

%

17.3

%

16.1

%

Income Per Common Share Reconciliation

Income before income taxes, as reported

$

194,342

$

187,920

$

825,483

$

742,135

Rationalization charges

41

162

1,923

(172)

Acquisition related costs

7,381

1,216

19,698

7,974

Income before income taxes, as adjusted

201,764

189,298

847,104

749,937

Tax rate at 26.0%

(52,459)

(49,217)

(220,247)

(194,984)

Income, as adjusted

$

149,305

$

140,081

$

626,857

$

554,953

Income per common share, as adjusted

$

4.69

$

4.40

$

19.73

$

17.11

Weighted average diluted common shares outstanding

31,805,569

31,838,352

31,776,901

32,440,405

NYSE:BLD

February 28, 2024

topbuild.com


TopBuild Corp.

Reconciliation of Adjusted EBITDA to Net Income (Unaudited)

(in thousands)

Three Months Ended December 31, 

Year Ended December 31, 

2023

2022

2023

2022

Net income, as reported

$

146,382

$

143,834

$

614,254

$

555,989

Adjustments to arrive at EBITDA, as adjusted:

Interest expense and other, net

10,458

15,194

53,342

55,029

Income tax expense

47,960

44,086

211,229

186,146

Depreciation and amortization

34,662

30,284

132,878

123,335

Share-based compensation

4,757

2,637

15,836

12,310

Rationalization charges

41

162

1,923

(172)

Acquisition related costs

7,381

1,216

19,698

7,974

EBITDA, as adjusted

$

251,641

$

237,413

$

1,049,160

$

940,611

Proforma acquisition EBITDA (a)

$

6,251

Proforma disposition EBITDA (b)

(3,040)

Proforma TTM EBITDA, as adjusted

$

1,052,371

(a) Represents the trailing twelve months proforma impact of acquisitions completed in 2023.

(b) Represents the trailing twelve months proforma impact of dispositions completed in 2023

NYSE:BLD

February 28, 2024

topbuild.com


TopBuild Corp.

Acquisition Adjusted Net Sales (Unaudited)

(in thousands)

2023

Year Ended

Q1

Q2

Q3

Q4

    

December 31, 2023

Net sales

$

1,265,238

$

1,317,262

$

1,326,120

$

1,286,074

$

5,194,694

Acquisitions proforma adjustment †

31,847

26,978

5,400

55

64,280

Net sales, acquisition adjusted

$

1,297,085

$

1,344,240

$

1,331,520

$

1,286,129

$

5,258,974

† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches

NYSE:BLD

February 28, 2024

topbuild.com


TopBuild Corp.

Net Sales by Market (Unaudited)

(in thousands)

Three Months Ended December 31, 

Year Ended December 31, 

2023

2022

2023

2022

Residential

$

830,915

$

830,789

$

3,350,003

$

3,272,001

Commercial/Industrial

455,159

433,754

1,844,691

1,736,743

Total net sales

$

1,286,074

$

1,264,543

$

5,194,694

$

5,008,744

NYSE:BLD

February 28, 2024

topbuild.com


TopBuild Corp.

2024 Estimated Adjusted EBITDA Range (Unaudited)
(in millions)

Twelve Months Ending December 31, 2024

Low

High

Estimated net income, as reported

$

588.0

$

667.0

Adjustments to arrive at estimated EBITDA, as adjusted:

Interest expense and other, net

60.0

54.0

Income tax expense

206.0

234.0

Depreciation and amortization

140.0

135.0

Share-based compensation

21.0

18.0

Acquisition related costs

25.0

22.0

Estimated EBITDA, as adjusted

$

1,040.0

$

1,130.0

NYSE:BLD

February 28, 2024

topbuild.com