IBP(US:IBP)2024-11-07 12:33Financial Performance - Net revenue for Q3 2024 reached a record $760.6 million, a 7.7% increase from $706.5 million in Q3 2023[1] - Net income rose 0.9% to $68.6 million, with net income per diluted share increasing 1.7% to $2.44[1] - Adjusted EBITDA reached an all-time high of $132.3 million, reflecting a 1.4% increase from the previous year[1] - Comprehensive income for the nine months ended September 30, 2024, was $183.8 million, compared to $183.5 million for the same period in 2023, reflecting a slight increase[21] - Basic earnings per share (EPS) for the nine months ended September 30, 2024, was $6.75, up from $6.35 in the prior year, representing a 6.3% increase[21] - Total revenue for the nine months ended September 30, 2024, was $2,191.1 million, up from $2,057.9 million in the same period of 2023[29] - Adjusted net income for the nine months ended September 30, 2024, was $230.8 million, up from $213.6 million in the same period of 2023, reflecting a 8.8% increase[39] Revenue Breakdown - Installation revenue increased by 7.9% to $713.7 million, driven by growth across all end markets and contributions from recent acquisitions[1] - Residential new construction accounted for 72% of installation revenue, generating $548.8 million in the three months ended September 30, 2024, up from $518.1 million in 2023[31] - The company reported a net revenue of $760.6 million for the three months ended September 30, 2024, with installation contributing 94% of total revenue[31] - Revenue for the three months ended September 30, 2024, was $760.6 million, a 7.4% increase from $706.5 million in the same period of 2023[29] Expenses and Profitability - Gross profit improved by 6.1% to $256.8 million, with a gross profit margin of 33.8%[10] - Selling and administrative expenses as a percentage of total revenue increased to 19.1% compared to 18.2% in the prior year[11] - Operating expenses for the three months ended September 30, 2024, were $155.5 million, an increase from $139.8 million in the same period of 2023[30] - Gross profit for the nine months ended September 30, 2024, was $742.7 million, compared to $685.0 million in the same period of 2023, marking an 8.4% increase[46] - Selling and administrative expense for the nine months ended September 30, 2024, was $422.1 million, compared to $379.8 million in the same period of 2023, reflecting a 11.1% increase[48] Cash Flow and Assets - Net cash provided by operating activities for the nine months ended September 30, 2024, was $265.2 million, compared to $250.5 million for the same period in 2023, indicating a 5.9% increase[24] - Cash and cash equivalents at the end of the period increased to $406.2 million from $339.8 million, reflecting a growth of 19.7%[26] - Total assets increased to $2,072.5 million as of September 30, 2024, from $1,981.3 million at December 31, 2023, marking a growth of 4.6%[23] - Long-term debt as of September 30, 2024, was $840.8 million, slightly up from $835.1 million at December 31, 2023[23] - Total liabilities increased to $1,356.1 million as of September 30, 2024, from $1,311.0 million at December 31, 2023, representing a 3.4% increase[23] Shareholder Returns - The fourth quarter cash dividend of $0.35 per share represents a 6% increase from the previous year's fourth quarter dividend[7] - The company declared cash dividends of $0.35 per share for the current period, up from $0.33 per share in the previous period[21] - The company repurchased 100,000 shares of common stock for a total cost of $20.7 million during Q3 2024[1] Strategic Outlook - The company maintains a positive outlook for 2025, expecting further acquisitions and continued growth in residential and commercial markets[3][4] - IBP has acquired over $73 million in annual revenue through acquisitions in 2024, including Insulation Supplies and Euroview Enterprises[2][5] - The company plans to wind down operations of a non-core commercial branch by March 31, 2025, due to unfavorable market conditions[37] - The company expects to complete the closure of the non-core branch by March 31, 2025[50] Impairment Charges - The company recognized asset impairment charges of $4.9 million during the nine months ended September 30, 2024, related to winding down operations of a non-core branch[41] - The company recognized intangible and asset impairment charges of $4.9 million during the nine months ended September 30, 2024[54]