Installed Building Products Reports Results for First Quarter 2014

  Installed Building Products Reports Results for First Quarter 2014

   - Net Revenue Increases 15.2% to $105.9 Million in First Quarter 2014 –

  - Adjusted EBITDA Increases 82.6% to $4.2 Million in First Quarter 2014 –

Business Wire

COLUMBUS, Ohio -- May 13, 2014

Installed Building Products, Inc. (the “Company” or “IBP”), an
industry-leading installer of insulation products, announced today results for
the first quarter ended March 31, 2014.

First Quarter 2014 Highlights

  *Net revenue increased 15.2% to $105.9 million compared to first quarter
    2013; same branch sales increased 13.1% compared to first quarter 2013
  *Adjusted EBITDA increased 82.6% to $4.2 million compared to first quarter
    2013
  *Operating income increased $0.6 million to $0.9 million compared to first
    quarter 2013
  *Net income from continuing operations increased $0.6 million to $0.4
    million compared to first quarter 2013

“Our highly efficient and scalable operations resulted in continued year over
year growth to both our revenue and net income from continuing operations to
start the year,” stated Jeff Edwards, Chairman and Chief Executive Officer.
“We are especially pleased with the 15.2% increase in revenues in the first
quarter of 2014 amid challenging weather conditions in many of our markets,
which delayed some construction activity. The improvement in our adjusted
EBITDA reflects the meaningful operating leverage in our business that we have
worked hard to build. We expect to further enhance our profitability as market
conditions improve. As we move forward in 2014, we are encouraged by our
operating momentum and remain well positioned to continue to capitalize on the
new home construction recovery and to pursue select strategic acquisitions, as
we leverage our national network of branch locations.”

First Quarter 2014 Results Overview

For the first quarter of 2014, net revenue was $105.9 million, an increase of
15.2% from $92.0 million in the first quarter of 2013. On a same branch basis,
net revenue grew 13.1% from the prior year quarter, with approximately
three-quarters of the increase attributable to growth in the residential new
construction end market and the remainder achieved through mix, price and
higher energy efficiency standards.

Gross profit improved 18.5% to $26.4 million from $22.3 million in the prior
year quarter. Gross margin expanded to 24.9% from 24.2% in the prior year
quarter, primarily due to higher net revenue and cost efficiencies.

Selling, general and administrative expense as a percentage of net revenue was
23.4% compared to 23.1% in the prior year quarter, primarily due to an
increase in personnel costs to support being a publicly traded company and
higher sales, and increased costs for insurance and technology.

Adjusted EBITDA was $4.2 million, an 82.6% increase from $2.3 million in the
prior year quarter, largely due to higher net revenue and an improvement in
gross margin. Adjusted EBITDA as a percentage of net revenue was 4.0%, a 150
basis point increase from 2.5% in the prior year quarter. Operating income of
$0.9 million increased from $0.3 million in the prior year quarter.

Net loss attributable to common shareholders, including the impact of
accretion charges, in both periods, on Redeemable Preferred Stock was ($19.5)
million, or ($0.76) per diluted share compared to ($2.0) million, or ($0.09)
per diluted share in the prior year quarter. The Redeemable Preferred Stock
was redeemed in full with a portion of the IPO proceeds. Net income from
continuing operations was $0.4 million, or $0.02 per diluted share, compared
to ($0.2) million, or ($0.01) per diluted share in the prior year quarter.

Conference Call and Webcast

The Company will host a conference call and webcast on Tuesday, May 13, 2014
at 10:00 a.m. Eastern time to discuss these results. To participate in the
call, please dial 877-407-9039 (Domestic) or 201-689-8470 (International). The
live webcast will be available at www.installedbuildingproducts.com in the
investor relations section. A replay of the conference call will be available
through June 13, 2014, by dialing 877-870-5176 (domestic) or 858-384-5517
(international) and entering the pass code 13580413.

About Installed Building Products

Installed Building Products, Inc. is the nation's second largest insulation
installer for the residential new construction market and is also a
diversified installer of complementary building products, including garage
doors, rain gutters, shower doors, closet shelving and mirrors, throughout the
United States. The Company manages all aspects of the installation process for
its customers, including direct purchases of materials from national
manufacturers, supply of materials to job sites and quality installation. The
Company offers its portfolio of services for new and existing single-family
residential, multifamily, and commercial building projects from its national
network of branch locations.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the federal securities laws, including with respect to the demand for our
services, expansion of our national footprint, our ability to capitalize on
the new home construction recovery, our ability to strengthen our market
position, our ability to pursue value-enhancing acquisitions, our ability to
improve profitability and expectations for demand for our services for the
remainder of 2014. Forward-looking statements may generally be identified by
the use of words such as "anticipate," "believe," "expect," "intends," "plan,"
and "will" or, in each case, their negative, or other variations or comparable
terminology. These forward-looking statements include all matters that are not
historical facts. By their nature, forward-looking statements involve risks
and uncertainties because they relate to events and depend on circumstances
that may or may not occur in the future. As a result, actual events may differ
materially from those expressed in or suggested by the forward-looking
statements. Any forward-looking statement made by the Company in this press
release speaks only as of the date hereof.

A full discussion of our operations and financial condition, including factors
that may affect our business and future prospects, is contained in documents
we have filed with theSECand will be contained in all subsequent periodic
filings we make with theSEC. These documents identify in detail important
risk factors that could cause our actual performance to differ materially from
current expectations.

Risk factors and uncertainties that could cause actual results to differ
materially from current and historical results include, but are not limited
to: our dependence on the residential construction industry, the economy and
the credit markets; uncertainty regarding the housing recovery; declines in
the economy or expectations regarding the housing recovery that could lead to
additional significant impairment charges; the cyclical and seasonal nature of
our business; our exposure to severe weather conditions; the highly fragmented
and competitive nature of our industry; product shortages or the loss of key
suppliers; changes in the costs and availability of products; inability to
successfully acquire and integrate other businesses; our exposure to claims
arising from our acquired operations; our reliance on key personnel; our
ability to attract, train and retain qualified employees while controlling
labor costs; our exposure to product liability, workmanship warranty,
casualty, construction defect and other claims and legal proceedings; changes
in, or failure to comply with, federal, state, local and other regulations;
disruptions in our information technology systems; and our ability to
implement and maintain effective internal control over financial reporting and
remediate any outstanding material weakness and significant deficiencies. The
order in which these factors appear should not be construed to indicate their
relative importance or priority.

New risks and uncertainties arise from time to time, and it is impossible for
the Company to predict these events or how they may affect it. The Company has
no obligation, and does not intend, to update any forward-looking statements
after the date hereof, except as required by federal securities laws.

Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with U.S.
generally accepted accounting principles (“GAAP”), this press release contains
the non-GAAP financial measure of Adjusted EBITDA. The reasons for the use of
Adjusted EBITDA, a reconciliation of Adjusted EBITDA to the most directly
comparable GAAP measure and other information relating to Adjusted EBITDA is
included below following the unaudited consolidated financial statements.


INSTALLED BUILDING PRODUCTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share and per share amounts)
                                                           
                                                                             
                                             Three months ended
                                             March 31,
                                             2014             2013
                                                                             
Net revenue                                  $ 105,946        $ 91,962
Cost of sales                                 79,541         69,688     
Gross profit                                   26,405           22,274
Operating expenses
Selling                                        6,470            5,752
Administrative                                 18,361           15,446
Amortization                                  697            791        
Operating income                               877              285
Other expense (income)
Interest expense                               588              462
Other                                         (462       )    71         
                                               126              533
                                                                             
Income (loss) before income taxes              751              (248       )
                                                                             
Income tax provision (benefit)                350            (5         )
Net income (loss) from continuing             401            (243       )
operations
Discontinued operations
Loss from discontinued operations              45               287
Income tax provision                          (17        )    -          
Loss from discontinued operations, net of     28             287        
income taxes
Net income (loss)                            $ 373           $ (530       )
Accretion charges on Redeemable Preferred     (19,897    )    (1,487     )
Stock
Net loss attributable to common              $ (19,524    )   $ (2,017     )
shareholders
                                                                             
Weighted average shares outstanding (basic     25,841,679       22,033,901
and diluted)
                                                                             
Net loss per share (basic and diluted)
Loss per share from continuing operations
attributable to common stockholders (basic   $ (0.75      )   $ (0.08      )
and diluted)
Loss per share from discontinued
operations attributable to common             (0.01      )    (0.01      )
stockholders (basic and diluted)
Loss per share attributable to common        $ (0.76      )   $ (0.09      )
stockholders (basic and diluted)
                                                                             

                                                           
Earnings Per Share Calculations
For the Three Months Ended March 31, 2014 and 2013
(unaudited, in thousands except for share data)
                                                                             
                                             Three Months Ended
                                             March 31,
                                             2014             2013
                                                                             
Net loss attributable to common              $ (19,524    )   $ (2,017     )
shareholders, as reported
                                                                             
Add back adjustments for continuing
operations:
Accretion charges on Redeemable Preferred      19,897           1,487
Stock
Loss from discontinued operations, net of     28             287        
income taxes
Net income (loss) from continuing            $ 401           $ (243       )
operations
                                                                             
Weighted average shares outstanding (basic     25,841,679       22,033,901
and diluted)
                                                                             
Loss per share attributable to common
stockholders                                 $ (0.76      )   $ (0.09      )

(basic and diluted), as reported
Add back adjustments for continuing
operations:
Accretion charges on Redeemable Preferred      0.77             0.07
Stock
Loss from discontinued operations, net of     0.01           0.01       
income taxes
Income (loss) per share from continuing
operations                                   $ 0.02          $ (0.01      )

(basic and diluted)
                                                                             

Per share figures in the above earnings per share calculation table may
reflect rounding adjustments and consequently totals may not appear to sum.


INSTALLED BUILDING PRODUCTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share and per share amounts)
                                                             
                                                  March 31,     December 31,
                                                  2014          2013
ASSETS
Current assets
Cash                                              $ 5,150       $  4,065
Restricted cash                                     1,708          1,708
Accounts receivable (less allowance for
doubtful accounts of $2,094 and $1,738 at March     57,970         58,351
31, 2014 and December 31, 2013, respectively)
Accounts receivable, related parties                461            475
Inventories                                         21,232         19,731
Income taxes receivable                             174            41
Deferred offering costs                             -              5,156
Other current assets                               4,576        5,985   
Total current assets                                91,271         95,512
Property and equipment, net                         32,702         29,475
Non-current assets
Goodwill                                            50,545         49,328
Intangibles, net                                    13,551         13,400
Other non-current assets                           3,900        3,355   
Total non-current assets                           67,996       66,083  
Total assets                                      $ 191,969    $  191,070 
                                                                             
LIABILITIES, REDEEMABLE INSTRUMENTS AND
STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
Current maturities of long-term debt              $ 268         $  255
Current maturities of capital lease obligations     8,277          7,663
Accounts payable                                    43,488         40,114
Accounts payable, related parties                   1,076          539
Accrued compensation                                7,806          8,942
Other current liabilities                          6,474        6,930   
Total current liabilities                           67,389         64,443
                                                                             
Long-term debt                                      19,107         27,771
Capital lease obligations, less current             16,109         14,370
maturities
Put option - Redeemable Preferred Stock             -              490
Deferred income taxes                               9,967          9,571
Other long-term liabilities                        10,352       9,006   
Total liabilities                                   122,924        125,651
                                                    -              -
Commitments and contingencies
                                                                             
Redeemable Preferred Stock; $0.01 par value: 0
and 1,000 authorized, issued and outstanding at     -              55,838
March 31, 2014 and December 31, 2013,
respectively
Redeemable Common Stock; $0.01 par value: 0 and
5,850,000 authorized, issued and outstanding at     -              81,010
March 31, 2014 and December 31, 2013,
respectively
Stockholders' equity (deficit)
Common Stock; $0.01 par value: 100,000,000 and
27,200,862 authorized, 30,601,401 and
16,183,901 shares issued and outstanding at         306            162
March 31, 2014 and December 31, 2013,
respectively
Additional paid in capital                          139,957        -
Accumulated deficit                                (71,218 )     (71,591 )
Total stockholders' equity (deficit)               69,045       (71,429 )
Total liabilities, redeemable instruments and     $ 191,969    $  191,070 
stockholders' equity (deficit)
                                                                             


INSTALLED BUILDING PRODUCTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
                                                              
                                                Three months ended March 31,
                                                2014              2013
Net cash provided by (used in) operating        $  5,030         $ (8,555 )
activities
Cash flows from investing activities
Restricted cash                                    -                95
Purchases of property and equipment                (749     )       (635   )
Acquisitions of businesses                         (2,006   )       (687   )
Proceeds from sale of property and equipment      160            112    
Net cash used in investing activities             (2,595   )      (1,115 )
Cash flows from financing activities
Proceeds from issuance of common stock, net        87,645           -
of costs
Redemption of Redeemable Preferred Stock           (75,735  )       -
(Payments) proceeds from revolving line of         (8,714   )       9,965
credit, net
Principal payments on long term debt               (296     )       (46    )
Payments on capital lease obligations              (2,120   )       (1,141 )
Payments for deferred offering costs              (2,130   )      -      
Net cash (used in) provided by financing          (1,350   )      8,778  
activities
Net change in cash                                 1,085            (892   )
Cash at beginning of period                       4,065          3,898  
Cash at end of period                           $  5,150         $ 3,006  
Supplemental disclosures of cash flow
information
Net cash paid during the period for:
Interest                                        $  313            $ 199
Income taxes, net of refunds                       467              4,157
Supplemental disclosure of noncash investing
and financing activities
Vehicles capitalized under capital leases and      4,633            2,991
related lease obligations
Note payable issued in connection with             -                300
acquisition of business
Unpaid offering costs                              2,085            -
                                                                             

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA measures performance by adjusting EBITDA for certain income or
expense items that are not considered part of our core operations. We believe
that the presentation of this measure provides useful information to investors
regarding our results of operations because it assists both investors and us
in analyzing and benchmarking the performance and value of our business. We
also believe this measure is useful to investors and us as a measure of
comparative operating performance from period to period as it measures our
changes in pricing decisions, cost controls and other factors that impact
operating performance, and removes the effect of our capital structure
(primarily interest expense), asset base (primarily depreciation and
amortization), items outside our control (primarily income taxes) and the
volatility related to the timing and extent of other activities such as asset
impairments and non-core income and expenses. Accordingly, we believe that
this measure is useful for comparing general operating performance from period
to period. In addition, we use various EBITDA-based measures in determining
certain of our incentive compensation programs. Other companies may define
Adjusted EBITDA differently and, as a result, our measure may not be directly
comparable to measures of other companies. In addition, Adjusted EBITDA may be
defined differently for purposes of covenants contained in our revolving
credit facility or any future facility.

Although we use this measure to assess the performance of our business, the
use of the measure is limited because it does not include certain material
expenses, such as interest and taxes, necessary to operate our business.
Adjusted EBITDA should be considered in addition to, and not as a substitute
for, net (loss) income in accordance with GAAP as a measure of performance.
Our presentation of this measure should not be construed as an indication that
our future results will be unaffected by unusual or non-recurring items. This
measure has limitations as an analytical tool, and you should not consider it
in isolation or as a substitute for analysis of our results as reported under
GAAP. Because of these limitations, this measure is not intended as an
alternative to net (loss) income from continuing operations as an indicator of
our operating performance, as an alternative to any other measure of
performance in conformity with GAAP or as an alternative to cash flow (used
in) provided by operating activities as a measure of liquidity. You should
therefore not place undue reliance on this measure or ratios calculated using
this measure.

The table below reconciles Adjusted EBITDA to the most directly comparable
GAAP financial measure, net income (loss) for the periods presented therein.


Reconciliation of GAAP to Non-GAAP Measures
For the Three Months Ended March 31, 2014
(unaudited, in thousands)
                                                             
                                                                          
                                                    Three Months Ended
                                                    March 31,
                                                    2014        2013
Adjusted EBITDA:
                                                                          
Net income (loss) (GAAP)                            $ 373       $ (530  )
Interest expense                                      588         462
Provision for income taxes, continuing operations     350         (5    )
Depreciation and amortization                         3,335       2,392
                                                               
EBITDA                                               4,646     2,318 
                                                                          
Initial public offering costs expensed                76          -
Gain from put option Redeemable Preferred Stock       (490  )     -
                                                               
Adjusted EBITDA                                     $ 4,232    $ 2,318 
                                                                          
Adjusted EBITDA margin                                4.0   %     2.5   %
                                                                          

Contact:

Installed Building Products, Inc.
Investor Relations, 614-221-9944
investorrelations@installed.net
 
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