Installed Building Products (IBP) Q1 2025 Earnings Call May 08, 2025 10:00 AM ET Speaker0 Greetings, and welcome to the Installed Building Products First Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce Darren Hicks, Vice President of Investor Relations. Please go ahead. Speaker1 Good mor ...

分组1 - Installed Building Products (IBP) reported quarterly earnings of $2.08 per share, missing the Zacks Consensus Estimate of $2.18 per share, and down from $2.47 per share a year ago, representing an earnings surprise of -4.59% [1] - The company posted revenues of $684.8 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.72%, but down from $692.9 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] 分组2 - The stock has lost about 6.3% since the beginning of the year, compared to the S&P 500's decline of -4.3% [3] - The current consensus EPS estimate for the coming quarter is $2.72 on revenues of $723.84 million, and for the current fiscal year, it is $10.53 on revenues of $2.87 billion [7] - The Zacks Industry Rank for Building Products - Miscellaneous is currently in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Company Overview - Installed Building Products (IBP) operates a national platform of over 250 locations serving 48 continental states and the District of Columbia[17] - IBP's revenue diversification shows insulation accounting for 78% of revenue in 2015, decreasing to 60% in 2024, while new single-family revenue decreased from 75% to 57% in the same period[23] - Established IBP branches generate approximately $4,400 per residential permit, while developing branches generate around $2,200 per permit[35] Financial Performance - IBP's net revenue for the last twelve months ended March 31, 2025, was $29332 million, with a net revenue growth of 43%[60] - The adjusted gross profit for the last twelve months ended March 31, 2025, was $9848 million, resulting in an adjusted gross profit margin of 336%[60] - Adjusted EBITDA for the last twelve months ended March 31, 2025, reached $4965 million, yielding an adjusted EBITDA margin of 169%[60] - IBP's target leverage ratio is less than 200x, with a ratio of 117x as of March 31, 2025[45] Capital Allocation - From 2020 to 2024, IBP allocated $579 million (50%) to acquisitions, $246 million (21%) to share repurchases, and $323 million (28%) to dividends, totaling $115 billion[48] Acquisition Strategy - IBP targets >$100M of acquired revenue annually[56]

[Installed Building Products First Quarter 2025 Results](index=1&type=section&id=Installed%20Building%20Products%20First%20Quarter%202025%20Results) [Financial & Operational Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) Installed Building Products reported solid first-quarter 2025 results despite a challenging housing market, characterized by a slight 1.2% decrease in net revenue to $684.8 million. The company demonstrated strong operating cash flow, which increased by 8.6% to $92.1 million, and actively returned capital to shareholders through $34.3 million in share repurchases and $56.8 million in dividends. Management remains focused on disciplined capital allocation and operational improvements Q1 2025 Key Financial Metrics (vs. Prior Year Period) | Metric | Q1 2025 Value | Change vs. Q1 2024 | | :--- | :--- | :--- | | Net Revenue | $684.8 million | -1.2% | | Net Income | $45.4 million | Decreased | | Adjusted EBITDA* | $102.4 million | Decreased | | Net Income per Diluted Share | $1.64 | Decreased from $1.97 | | Adjusted Net Income per Diluted Share* | $2.08 | Decreased from $2.47 | | Net Cash Flow from Operations | $92.1 million | +8.6% | - Management noted that while the housing market faces affordability challenges and a slower spring selling season, the company's long-term opportunities in residential and commercial markets remain attractive[3](index=3&type=chunk) - The company's business model, which sources products and labor domestically, is not expected to face substantial disruptions from changing import tariffs[4](index=4&type=chunk) [Financial Performance Review](index=2&type=section&id=First%20Quarter%202025%20Results%20Overview) In Q1 2025, IBP's net revenue saw a slight decrease of 1.2% to $684.8 million, driven by a 4.2% decline in consolidated same branch sales. Profitability was impacted, with gross margin contracting to 32.7% from 33.8% and adjusted EBITDA margin falling to 15.0% from 16.9%, primarily due to higher administrative wages, facility costs, and vehicle-related expenses Revenue Performance (Q1 2025 vs Q1 2024) | Revenue Category | Q1 2025 Change YoY | | :--- | :--- | | Net Revenue | -1.2% | | Consolidated Same Branch Sales | -4.2% | | Residential Same Branch Sales | -4.6% | | Commercial Same Branch Sales | -2.8% | Profitability Margin Analysis (Q1 2025 vs Q1 2024) | Margin Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross Profit Margin | 32.7% | 33.8% | | Adjusted Gross Profit Margin* | 32.7% | 33.9% | | Adjusted EBITDA Margin* | 15.0% | 16.9% | | Net Profit Margin | 6.6% | 8.1% | - Margin reductions were primarily attributed to increased administrative wages, higher facility costs, and rising vehicle insurance and depreciation expenses[13](index=13&type=chunk) [Capital Allocation and Corporate Developments](index=1&type=section&id=Capital%20Allocation%20and%20Corporate%20Developments) IBP continued its strategy of profitable growth and shareholder returns in Q1 2025. The company executed on its acquisition plan, acquiring over $10 million in annual revenue year-to-date, and returned $91.1 million to shareholders via dividends and buybacks. A 6% increase in the regular quarterly dividend was also announced - Acquisition Strategy: Acquired over **$10 million** of annual revenue year-to-date and expects to acquire at least **$100 million** of annual revenue in 2025. Recent acquisitions include Volunteer Building Products (**$6M revenue**) and Pro Foamers, Inc. (**$4M revenue**)[6](index=6&type=chunk)[14](index=14&type=chunk) - Share Repurchases: Repurchased **200,000 shares** of common stock for a total of **$34.3 million** in Q1 2025. Approximately **$465.7 million** remains available under the stock repurchase program[7](index=7&type=chunk) - Dividends: The Board declared a Q2 2025 regular cash dividend of **$0.37 per share**, a **6% increase** from the prior year's Q2 dividend. In Q1, the company paid a regular dividend of **$0.37** and an annual variable dividend of **$1.70 per share**[5](index=5&type=chunk)[6](index=6&type=chunk) [Segment and End Market Performance](index=9&type=section&id=Segment%20and%20End%20Market%20Performance) The Installation segment remains the core of IBP's business, contributing 95% of total net revenue in Q1 2025. Within this segment, residential new construction is the largest end market, accounting for 72% of installation revenue. Both Installation segment revenue and its gross profit margin saw a slight decline compared to the prior year Installation Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $647.2 million | $655.9 million | | Segment Gross Profit | $229.5 million | $236.6 million | | Segment Gross Profit % | 35.5% | 36.1% | Revenue by End Market (Q1 2025) | End Market | Revenue (in millions) | % of Total Revenue | | :--- | :--- | :--- | | **Installation** | | | | Residential New Construction | $494.4 | 72% (of Installation) | | Repair and Remodel | $42.4 | 6% (of Installation) | | Commercial | $110.4 | 17% (of Installation) | | **Total Installation** | **$647.2** | **95%** | | **Other** | **$37.6** | **5%** | | **Total Net Revenue** | **$684.8** | **100%** | [Supplementary Data](index=15&type=section&id=Supplementary%20Data) Supplementary data for Q1 2025 reveals a consolidated sales decline of 1.2%, with same-branch sales falling 4.2%. The decline in same-branch installation sales was driven by a 5.6% decrease in volume, partially offset by a 1.5% increase in price/mix. Acquired businesses contributed $21.0 million in revenue during the quarter Period-over-Period Growth (Q1 2025 vs Q1 2024) | Metric | Q1 2025 Growth | Q1 2024 Growth | | :--- | :--- | :--- | | Consolidated Sales Growth | (1.2)% | 5.1% | | Consolidated Same Branch Sales Growth | (4.2)% | 2.9% | | Installation Same Branch Sales Growth | (3.7)% | 3.1% | | Installation Same Branch Volume Growth | (5.6)% | (1.4)% | | Installation Same Branch Price/Mix Growth | 1.5% | 3.8% | Incremental Revenue & Adjusted EBITDA (Q1 2025) | Contribution Source | Revenue | Adjusted EBITDA | Adj. EBITDA Margin | | :--- | :--- | :--- | :--- | | Same Branch | ($29.0 M) | ($18.2 M) | (62.8)% (decremental) | | Acquired | $21.0 M | $3.4 M | 16.2% | [Financial Statements](index=5&type=section&id=Financial%20Statements) The unaudited condensed consolidated financial statements for the period ended March 31, 2025, detail the company's financial position and performance. Net income for the quarter was $45.4 million. The balance sheet shows total assets of $2.0 billion and total stockholders' equity of $660.9 million. The company generated $92.1 million in cash from operations [Income Statement](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20INCOME) For the first quarter of 2025, IBP generated $684.8 million in net revenue, a decrease from $692.9 million in the prior-year period. Operating income fell to $69.8 million from $87.9 million, resulting in net income of $45.4 million, or $1.64 per diluted share Q1 2025 Statement of Operations (in millions, except per share) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net revenue | $684.8 | $692.9 | | Gross profit | $223.7 | $234.5 | | Operating income | $69.8 | $87.9 | | Net income | $45.4 | $55.9 | | Diluted EPS | $1.64 | $1.97 | [Balance Sheet](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, IBP had total assets of approximately $2.0 billion, a slight decrease from year-end 2024. Cash and cash equivalents stood at $298.7 million. Total liabilities were $1.34 billion, with total stockholders' equity at $660.9 million Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $298.7 | $327.6 | | Total current assets | $994.7 | $1,054.9 | | Total assets | $1,999.3 | $2,059.9 | | Total current liabilities | $344.7 | $359.0 | | Total liabilities | $1,338.4 | $1,354.6 | | Total stockholders' equity | $660.9 | $705.3 | [Cash Flow Statement](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, IBP generated $92.1 million in net cash from operating activities, an 8.6% increase year-over-year. Net cash used in investing activities was $26.1 million, primarily for property/equipment purchases and acquisitions. Financing activities used $94.9 million, largely due to dividend payments ($56.8 million) and common stock repurchases ($34.3 million) Q1 2025 Cash Flow Summary (in millions) | Cash Flow Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $92.1 | $84.8 | | Net cash used in investing activities | ($26.1) | ($21.1) | | Net cash used in financing activities | ($94.9) | ($50.3) | | Net change in cash and cash equivalents | ($28.9) | $13.4 | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) The company provides non-GAAP financial measures such as Adjusted EBITDA, Adjusted Net Income, and Adjusted Gross Profit to offer investors insight into core operational performance by excluding items like amortization, share-based compensation, and acquisition-related expenses. These reconciliations bridge the gap between reported GAAP figures and the adjusted metrics used by management [Reconciliation of Adjusted Net Income](index=12&type=section&id=ADJUSTED%20NET%20INCOME%20CALCULATIONS) Adjusted Net Income for Q1 2025 was $57.6 million, or $2.08 per diluted share. This is reconciled from a GAAP Net Income of $45.4 million by adding back non-cash amortization ($10.1 million), share-based compensation ($5.9 million), and other items, net of tax Adjusted Net Income Reconciliation (Q1 2025, in millions) | Line Item | Amount | | :--- | :--- | | Net income, as reported (GAAP) | $45.4 | | Share-based compensation expense | $5.9 | | Amortization expense | $10.1 | | Acquisition related expenses | $0.5 | | Tax impact of adjusted items | ($4.3) | | **Adjusted net income (Non-GAAP)** | **$57.6** | [Reconciliation of EBITDA and Adjusted EBITDA](index=14&type=section&id=EBITDA%20AND%20ADJUSTED%20EBITDA%20CALCULATIONS) Adjusted EBITDA for Q1 2025 was $102.4 million, resulting in an Adjusted EBITDA margin of 15.0%. This figure is derived from GAAP Net Income of $45.4 million by adding back interest, taxes, D&A, and other adjustments like share-based compensation Adjusted EBITDA Reconciliation (Q1 2025, in millions) | Line Item | Amount | | :--- | :--- | | Net income, as reported (GAAP) | $45.4 | | Interest expense | $8.3 | | Provision for income tax | $15.9 | | Depreciation and amortization | $26.4 | | **EBITDA (Non-GAAP)** | **$96.0** | | Share based compensation expense | $5.9 | | Acquisition related expenses | $0.5 | | **Adjusted EBITDA (Non-GAAP)** | **$102.4** |

Q 4 2024 INSTALLED BUILDING PRODUCTS FEBRUARY 27, 2025 NYSE: IBP Safe Harbor 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," "projects," "outlook," "target," "plans" and "seeks," and, in each case their negative, and other variations or comparable terminology. Forward-looking statements are based on man ...

Financial Data and Key Metrics Changes - Consolidated net revenue for Q4 2024 increased 4% to a record $750 million compared to $721 million in the same period last year [17] - Adjusted net income rose to $81 million or $2.88 per diluted share, reflecting strong operational performance [22] - Adjusted EBITDA for Q4 2024 reached a record $132 million, with an adjusted EBITDA margin of 17.6% [21] Business Line Data and Key Metrics Changes - Single-family sales growth was supported by a diverse mix of builders, contributing to nearly 6% consolidated sales growth for the year [10][11] - Multifamily installation sales grew over 6% on a same-branch basis, indicating resilience in this segment [12] - Commercial sales in the installation segment improved modestly from the prior year, reflecting stable demand [12] Market Data and Key Metrics Changes - Single-family starts in 2024 were up 7%, indicating a positive trend in the housing market [14] - The company expects a relatively stable demand environment for single-family installation services in 2025, despite challenges in housing affordability [15] - The multifamily market is anticipated to face a decline of 20% to 25% in units under construction, which may take six months to normalize [35][36] Company Strategy and Development Direction - The company continues to invest in growth opportunities, with approximately $87 million allocated for acquisitions in 2024 [8] - A new stock buyback program has been authorized, expanding repurchase capacity to $500 million, reflecting confidence in financial stability [26] - The company aims to maintain a disciplined approach to capital allocation while focusing on profitable growth and maximizing shareholder returns [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term demand for installed services, despite current market challenges [15][89] - The company anticipates a slow start to the spring selling season, with expectations of low single-family starts growth in 2025 [38][41] - Management remains committed to delivering high service levels and operational improvements in 2025 and beyond [16] Other Important Information - The board approved a 6% increase in both the regular quarterly cash dividend and the annual variable dividend for 2025 [8][27] - The company generated $340 million in cash flow from operations for the year, maintaining strong liquidity [24] - The net debt to trailing twelve-month adjusted EBITDA leverage ratio was 1.08 times, well below the target of 2 times [25] Q&A Session Summary Question: Expectations for multifamily and single-family work in 2025 - Management believes multifamily will continue to outperform the market, but acknowledges a potential decline in units under construction [34][36] - For single-family, a good case scenario is low single-family starts growth, with expectations of negative comps in the first half of the year [38][41] Question: Outlook on price mix at the beginning of the year - Current price mix benefits are carryover from prior periods, with a benign inflationary environment impacting pricing [42][44] Question: Growth plans for multifamily and CQ's role - CQ is expected to expand into new markets, with significant opportunities for growth in multifamily sales [50][56] Question: Competitive dynamics and pricing pressures - The environment is competitive, but management emphasizes maintaining relationships with builders and prioritizing fair pricing over volume [86][88] Question: Impact of inventory levels on builders - Builders are managing high inventory levels, and the company is observing varied conditions across different markets [136][139] Question: Internal distribution capabilities and margin impact - Progress is being made in expanding internal distribution capabilities, with expectations that it will not significantly drag margins [142][143]

Revenue Breakdown - Insulation installation accounted for approximately 60% of net revenue, totaling $2.9 billion for the year ended December 31, 2024[27]. - The installation and service of garage doors represented approximately 6% of net revenue for the year ended December 31, 2024[33]. - The distribution segment comprised approximately 5% of net revenue for the year ended December 31, 2024[41]. - The manufacturing segment, focused on cellulose insulation, accounted for approximately 1% of net revenue for the year ended December 31, 2024[43]. - The company’s top ten customers accounted for approximately 15% of net revenue for the year ended December 31, 2024[67]. Market Presence and Growth - The company completed over 200 acquisitions since 1999, significantly expanding its market presence and product offerings[22]. - The company has diversified its product offerings, with insulation installation decreasing from 74% of revenues in 2013 to 60% in 2024[47]. - Commercial end market revenue increased from approximately 11% in 2013 to 16% in 2024, enhancing revenue visibility[47]. - The company operates approximately 250 branch locations across 48 states and the District of Columbia[21]. - The company’s expansion into new geographic markets may present competitive and operational challenges, potentially affecting future sales growth[141]. Employee and Operational Efficiency - Employee retention efforts have reduced turnover to below industry averages, contributing to operational efficiency[49]. - The average monthly turnover rate for installers was 2.8% in 2024, compared to 3.9% for the U.S. construction industry[74]. - The workforce is comprised of 51.3% Hispanic or Latino employees, exceeding the construction industry average, with over 50% ethnic minorities overall[77][78]. - The company experienced a 5% increase in total hours worked from 2023 to 2024, while the OSHA-defined incident rate per 100 employees decreased by 9% to 5.10 for the year ended December 31, 2024[66]. Financial Performance and Backlog - The company reported a backlog of $126.3 million as of December 31, 2024, down from $115.7 million as of December 31, 2023[68]. - The estimated backlog associated with the commercial end market was approximately $126.3 million as of December 31, 2024[146]. Economic and Market Conditions - Housing starts in 2024 were reported at 1.37 million, a 3.9% decrease from 1.42 million in 2023, with a forecasted decline to 1.32 million in 2025[59]. - Inflation in the U.S. averaged 2.9% in 2024, down from 3.4% in 2023, impacting material costs and housing affordability[62]. - The commercial sector is predicted to see a modest increase of 6% in investment dollars in 2025 over 2024[61]. - The commercial construction market increased by 7% in 2024 compared to 2023, as measured by investment dollars[103]. - Commercial building starts are expected to rise by 6% in 2025 from 2024, while institutional building starts are projected to increase by 4%[104]. Corporate Social Responsibility - The Installed Building Products Foundation supports employee education and community initiatives, enhancing corporate social responsibility[50]. - In 2024, the Foundation and the Company awarded over 750 grants totaling over $4.5 million, an increase from 172 grants totaling $2.5 million in 2023[75]. - The company is committed to socially responsible practices, including giving back to communities and providing financial wellness training to employees[86]. Regulatory and Compliance Risks - The company is subject to various federal, state, and local regulations, including those related to employee safety and environmental compliance, with no material costs incurred to date[86][91]. - Federal and state regulations regarding ESG practices are evolving, potentially increasing compliance costs and impacting access to capital[131]. - The company is subject to various federal, state, and local laws and regulations that could impose substantial costs and restrictions on its operations[165]. Competition and Market Risks - The company faces significant competition in the building products installation industry, which could adversely affect its financial condition and results of operations[109]. - Increased fuel costs could negatively impact the cost of delivering products, affecting net income if selling prices cannot be adjusted accordingly[125]. - The commercial construction market's strength is influenced by various economic factors, including capital availability, material costs, and interest rates[105]. Financial Obligations and Capital Needs - The company has significant debt obligations that may restrict future operations and impair the ability to meet obligations[171]. - A substantial portion of cash flow from operations will be dedicated to interest and principal payments on indebtedness, reducing funds available for operations and growth[171]. - The company anticipates needing additional capital for growth, which may not be available on favorable terms[185]. Cybersecurity and Risk Management - The Board of Directors oversees the company's Enterprise Risk Management program, including cybersecurity risks[208]. - The company maintains a cybersecurity program aligned with industry standards, including the CIS Control framework[204]. - The company has experienced cybersecurity incidents in the normal course of business but is not currently aware of any that materially affect operations[202]. Legal and Liability Risks - The company is exposed to product liability and other claims related to the products it installs or manufactures, which could adversely affect its financial condition[157]. - Legal claims and lawsuits, including wage and hour lawsuits, could materially affect the company's results of operations and financial condition[156]. - Changes in employment laws could adversely impact operating costs, particularly in areas such as wage and hour laws, minimum wage requirements, and workers' compensation rates[152].

Installed Building Products (IBP) Q4 2024 Earnings Call February 27, 2025 10:00 AM ET Company Participants Darren Hicks - Managing Director of Investor RelationsJeffrey Edwards - Chairman, CEO & PresidentMichael Miller - CFO, Executive VP of Finance & DirectorKeith Hughes - Managing DirectorStephen Kim - Senior Managing DirectorPhilip Ng - Managing DirectorEthan Roberts - Research Associate Conference Call Participants Alex Isaac - Equity Research AnalystSusan Maklari - Senior Equity Research AnalystChristo ...

Core Viewpoint - Installed Building Products (IBP) reported quarterly earnings of $2.90 per share, slightly missing the Zacks Consensus Estimate of $2.91 per share, but showing an increase from $2.72 per share a year ago, indicating a mixed performance in earnings expectations [1][2]. Financial Performance - The company posted revenues of $750.2 million for the quarter ended December 2024, which was 2.72% below the Zacks Consensus Estimate, but an increase from $720.7 million in the same quarter last year [2]. - Over the last four quarters, IBP has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2]. Stock Performance - IBP shares have declined approximately 1.9% since the beginning of the year, contrasting with the S&P 500's gain of 1.3%, indicating underperformance relative to the broader market [3]. - The current Zacks Rank for IBP is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]. Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $2.39, with expected revenues of $692.45 million, and for the current fiscal year, the estimate is $11.53 on $3.07 billion in revenues [7]. - The trend of estimate revisions for IBP is mixed, which could change following the recent earnings report [6]. Industry Context - The Building Products - Miscellaneous industry, to which IBP belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, suggesting potential challenges ahead [8].

Financial Performance - Net revenue for Q4 2024 reached a record $750.2 million, an increase of 4.1% from $720.7 million in Q4 2023[8] - For the full year 2024, net revenue was a record $2.9 billion, up 5.9% from $2.8 billion in 2023[13] - Total consolidated net revenue for the twelve months ended December 31, 2024, reached $2,941.3 million, compared to $2,778.6 million in 2023, reflecting a growth of 5.9%[35] - Net income rose 3.1% to $66.9 million, with net income per diluted share increasing 4.4% to $2.39[11] - Net income for the twelve months ended December 31, 2024, was $256.6 million, compared to $243.7 million in 2023, reflecting a 5.9% increase[26] - The net income for the three months ended December 31, 2024, was $66.9 million, compared to $64.9 million in the same period of 2023[57] Revenue Segmentation - Installation revenue increased by 3.8% to $695.0 million, driven by growth across all end markets and contributions from recent acquisitions[5] - Installation segment revenue for Q4 2024 was $695.0 million, up from $669.8 million in Q4 2023, representing an increase of 3.5%[35] - Residential new construction accounted for 71% of installation revenue in both Q4 2024 and Q4 2023, with revenues of $533.3 million and $510.5 million respectively[38] - Other revenue for Q4 2024 was $60.9 million, up from $53.6 million in Q4 2023, representing an increase of 6.1%[35] Profitability Metrics - Adjusted EBITDA for Q4 2024 was $132.0 million, a 2.9% increase from $128.3 million in the prior year quarter, representing an adjusted EBITDA margin of 17.6%[12] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $511.4 million, compared to $485.9 million for the same period in 2023, reflecting an adjusted EBITDA margin of 17.4%[57] - The total adjusted EBITDA margin for the twelve months ended December 31, 2024, was 16.7%, compared to 41.0% in 2023, indicating a decline in profitability[66] - The total adjusted EBITDA for the three months ended December 31, 2024, was $0.8 million, with a margin of 2.7%, down from $15.2 million and a margin of 37.9% in the same period of 2023[66] Expenses and Dividends - Selling and administrative expenses for the twelve months ended December 31, 2024, totaled $564.6 million, compared to $517.1 million in 2023, with an adjusted selling and administrative expense margin of 18.5%[54] - The Board of Directors declared a 6% increase in the regular quarterly cash dividend to $0.37 per share and an annual variable dividend of $1.70 per share[5] - The company declared cash dividends of $3.00 per share for the year 2024, up from $2.22 in 2023, representing a 35.2% increase[26] Acquisitions and Growth Strategy - The company completed nine acquisitions in 2024, contributing over $100 million in annual revenue, with plans for at least $100 million in additional acquisitions in 2025[6] - The company authorized a new stock repurchase program allowing for the repurchase of up to $500 million of outstanding common stock, effective through March 1, 2026[7] Asset Management - Cash and cash equivalents at December 31, 2024, totaled $328 million[5] - Total assets increased to $2,059.9 million as of December 31, 2024, compared to $1,981.3 million in 2023, marking a growth of 4.0%[28] - The company reported a total stockholders' equity of $705.3 million at the end of 2024, up from $670.3 million in 2023, indicating a 5.2% increase[28] - Cash and cash equivalents decreased to $327.6 million at the end of 2024 from $386.5 million at the end of 2023, a decline of 15.2%[28] Operational Challenges - The company recognized intangible and asset impairment charges of $4.9 million during the twelve months ended December 31, 2024, related to winding down a non-core branch[48] - The company expects to complete the closure of the non-core branch by March 31, 2025, which is anticipated to impact future financial results[56] - The company’s performance metrics suggest a need for strategic adjustments to enhance profitability and revenue growth moving forward[67]