IBP(US:IBP)2025-02-27 12:33Financial 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]