IBP - Earnings call transcript Q1 2022 | Installed Building Products, Inc.

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Operator

Greetings, and welcome to Installed Building Products Fiscal 2022 First Quarter Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn this conference over to your host, Mr. Darren Hicks, Director of Investor Relations. Thank you, sir.

presentation. your begin may You

Darren Hicks

XX-K future any to our new federal events, of date may hereof. obligation company as report SEC on without may and The section which differ or future Good management's forward-looking within the our adverse statements call, speaks anticipation, laws. the forward-looking morning, XXXX federal press or interest Products performance, the forecasts, Form made and Quarter the include as to during of may time call our actual prices and first Installed as the a the impact statements on inflation beliefs, Investor required questions in result results in of and expectations, meaning Relations your increases Factors and section by prepared welcome factors, about from update Call. Earlier plans the timing of remarks securities except laws. in to as no of quarter, materially environment, estimates, future selling this factors crisis statements of the a and risks price by is Conference statements filings. for a be economic On statements statements These financial Building be information today, Any statements found to our material the time updated are today's Risk securities First conditions, current our website. and of limitation, results annual company's rates, and only Any prospects. discussed a forward-looking involve not can of and forward-looking industry management's forward-looking we the forward-looking supply of management uncertainties. These release undertakes as result answers duty based contain expectations on guarantee COVID-XX general in including, issued and various

diluted on measures expense. adjusted adjusted profit this margin, gross performance income, adjusted non-GAAP EBITDA net certain uses adjusted administrative management adjusted margin selling EBITDA, per as profit call, addition, and In share, income to such adjusted net and gross adjusted

over You measures EBITDA in company's earlier to equivalent additional such Niswonger, call is are release the and now reconciliation Executive and Sustainability Michael will GAAP Chairman Officer; for Jeff presentation, in our earnings Administrative I call and Financial by our Chief Jason morning's reconciliation adjusted website. which Jeff. Edwards, Officer; conference our our our hosted Officer. and fiscal can Miller, to find and their joined Chief for available Chief investor the a of nearest This years turn on by

Jeffrey Edwards

today's Thanks, to everyone good on us morning Darren, call. joining and

the encouraging inflationary core position with I benefits Record lingering and over usual, the continued chain call by residential impacts your as more we capital as challenges quarter growth. and our mix highlights quarterly within our take price Michael, financial As in we discuss results the will our and strong sales record the will then another housing before demand to overcame detail IBP questions. primarily supply of who driven are commercial produced some and profitability and quarter start markets call pandemic, well of turn COVID-XX market. record the as first within

of our team completing on and is constraints results an keep with of and struggle members chain service team significant schedule. dedication of exceptional operating market and providing end focus customers jobs homebuilders for by homes. as to and financial our geographic our navigate of benefits and Our work up model, ongoing new important members level in demand our with resonates of IBP's value environment supply proposition because product, correctly on the reflect of the The hard nationwide. resiliency our strategies business the current the especially diversification our

incremental work local As and offer we hard supported job everyone excellent your commitment, done a our and have tough a which you customers, an your strong always well. IBP, for result, aligning has To branches selling profitability with our our value the margins. job done at prices thank

that highlights, includes Before operating our changes I touch realigned I reflect more go would later in business. Michael the into and installation like further we this to distribution manufacturing segments: and quarter, this on X will have now our other, We note to in segments operations. call. have our which reporting our

quarter first growth, the another experienced our of at commercial we looking operations. within detail, COVID-XX our quarter while strong more impact continued activity results residential So pandemic in to

we period, which segment, in our residential a the growth For a by driven XX.X% by extended in same-branch increase residential Installation sales XX% construction installation during multifamily sales the same-branch by from quarter, first single-family comparison, residential installation branch total decreased By in was influenced we same experienced a revenue. and completions the XX.X% which -- year XX.X% within U.S. increase times. prior believe quarter, X.X% was increase cycle

our over and increased quarter, period. efforts with the strongest to have contributed compared the industry have During the achieved prior mix trends a demand increasing year the XX.X% our the prior price/mix becoming stabilized for we the first services, pricing inflationary the year construction in Consistent since public quarterly and company. increase to

value align in adjustments the customers prudent trends. make pricing to offer inflationary continue to we our We with

install will should for We of remain quarter. chain generate first flexible and materials enable As the during to business supply that and for model the but we continue cash future products anticipate flow. foreseeable strong constrained the chain our expected, remained asset-light us the many building supply challenges

and presence. products, plans aimed Our branches diversifying and scale, material our benefit national geographic and from our end markets advantage buying expanding strategic at

demographics to support tight have since favorable construction. housing of the the beginning supply year, mortgage and have rates increased continued While

large activity acceptance permitted bidding remaining that with business, of the sales steady improving Within for housing heavy commercial within we while long-term focused nationwide. to relative our commercial estimate business The in at new March remain to heavy operational addition, our yet throughout quarter. was compelling project exposure and to roughly expanding In markets is of stable million flat efficiency $XXX.X branch bid commercial our significant first XXXX. record units and We with represent to continues construction started, XX, supportive on IBP, market remain the number backlog be have XXXX our XXXX commercial same expected growth our were construction first the quarter a XXXX. opportunity

Looking at our prioritize that more companies continue we building and complementary products. detail, to profitable acquisition strategy through in well-run acquiring install growth insulation

installer supplies and of accessories emissions and quarter and annual XXXX U.S., with usage $X.X quarter New a of of Asheville, million first and acquired North part early North they approximately insulation During foam are Mid-Atlantic into excited million. a annual ended, $XX Carolina the to the fireplaces of revenue markets spray a in actionable revenue approximately Since Northeast Carolina-based innovative and with an in first Energi.ai and carbon to become we investor company's fiberglass AI-driven insulation, platform market April, intelligence. first gutter energy are Jersey-based the distributor of Their and using a insight developing. platform the artificial we provides the

emissions. like fact, to as platform partner In we much. their with at greenhouse the our implement we so work Energi.ai gas solution We reduce to to IBP decided

across Our acquisition products multiple geographies, and robust pipeline markets. end opportunities includes remains and

we XXXX at believe and we in a expect $XXX strong growth to million of As least be revenue will XXXX. year acquire acquisition result, of another

residential and to excited direction As beyond, effective commercial our will of the we We in priority a chain look across headed this our end outlook to we throughout supply anticipate by continue are management remain compelling and the XXXX which we and that markets. year. be

strong to and and continue another With work backlog, IBP. of a customers logistics profitable help ease value with and suppliers position and with our healthy to teams labor, to customers year XXXX growth warehousing supply is up a chain suppliers we creation challenges. to for believe our will purchasing, shaping these industry-wide Our and be access

So results. detail overview, to to turn I'd call the first with like this on more over quarter our Michael provide to

Michael Miller

you, and good Thank morning, everyone. Jeff,

our additional revenue and remodel residential with providing are repair profit our includes segment our quarterly installation and for reporting construction, segment gross commercial We by now within and filings and earnings revenue markets. new end SEC. This on releases by the information

revenue separate manufacturing includes distribution category, net disclosed from a also revenue have operations. We which and other our

gross Going we this profit continue provide forward, revenue and information. will to

segment our driven This by was other Other an jobs increased acquisitions. IBP's across the December strong increase XXX% XXXX and increased XXXX improvements in IBP's our revenue, results of XX% by revenue the Distribution. compared commercial million, and operating On in forma strong the market full revenue net XX.X% construction completed first driven manufacturing The pro of market. a quarter a driven XX.X% results XXXX record branch total to increased includes to increased sales and customer operations, installation revenue quarter of compared AMD. distribution during On in the of look standpoint, from quarter first X.X% XX.X% basis, in and by to to price/mix, and quarterly to results XX.X% with sales to from the last record in first multifamily So significantly Net increased this sales decline for quarter $XXX.X year. financial year-over-year residential housing installation our million prior driven quarter, the $XXX.X basis, XXXX same year introduction, the during XX.X%, XX.X%, by sales same-brand improved period branch same at of end sales new of let's million U.S. growth contribution growth mainly completions the single-family first of detail. revenue more AMD a first $XXX.X same acquisition From for was growth $XX.X residential outpaced million which quarter higher improvement recent quarter the for of same-brand the the volume quarter. quarter. a

prior As extended to first to in Jeff is cycle residential remained during mentioned, period. the a times, we of relative construction year quarter believe the result this increases part which

commercial effects increased pandemic were first commercial quarter basis last same profit market. year. gross quarter, lingering in the the the commercial Installation, Adjusted relative flat COVID-XX XX.X% X.X% in to impacting first growth, our sales end while same-branch period points same-brand year-over-year sales the XX to improved experienced we our in the While quarter. the roughly margin of continued XXXX

reflect XX.X%, per quality in disruptions a profit supply shortages. sales by in the provide, in quarter a of an quarter percent points point realigned during year chain Administrative SG&A We year and supply impact sales disruptions prior approximately period. improvements $X.X margin million period. gross quarter first basis $X.XX we volume estimate from supply first as prices of our costs year prior reflects reduced impact growth and selling pressure expense income profit sales XXXX to first of year-over-year service were million percent first basis SG&A from improvement quarter our As these relative basis, had our XX we the to quarter the the expenses first diluted basis a of GAAP material that of XXX improved as increased approximately adjusted gross quarter inflationary during the The points. quarter. price/mix The leverage a the XXX share. administrative ability to during Adjusted the from $XX.X On to or prior net from strong periods. XX.X% approximately

income shortages impacted net We per XX.X% $X.XX improved per diluted first adjusted share. approximately share quarter $XX.X estimate supply Our diluted by million $X.XX share. material per to the or earnings

point first $XX.X we expense to is XX.X% an first the first approximately our margin net quarter to last a the continue to impacts XXXX, adjusted the full approximately first EBITDA During XXX of for impact to for same of believe year incremental expect was points. that for why year. is basis quarter of adjusted million. expense of $X.X our million the businesses a acquisitions, increase revenue close recent approximately second of on was acquisition for from impacted EBITDA estimates change drove useful during acquisitions amortization the improved which quarter $XX.X that for quarter, new the Based period the million, of EBITDA and Adjusted percent year. adjustment Adjusted amortization XXXX income, Same-branch year. XX.X% gross compared measure same This $X.X quarter we XXXX EBITDA million by period in future We to noncash XX.X% margin XX.X% periods. any we on for would estimate these basis last to the supply compared profit, as adjusted expect with XXXX improvement million. the we XX XX.X% by to of $XX.X last shortages reducing approximately EBITDA net Similar in the XXXX adjusted $XX.X quarter material expense profitability. same recorded million period EBITDA most the

XXXX. first December effective was XX, for continue XX% For XX.X% the quarter, approximately effective tax XXXX ending year expect and to we our rate the full rate an to tax of XX%

in requirements detail. sheet more Now liquidity, at let's and look balance our capital

Our business model cash continues to generate flow. operating strong

year-over-year $XXX.X the to XXXX. we cash facility, had our in to leverage currently ended on months prior debt swaps, ABL reducing invest with a flow limiting exposure which $XX.X we March was no the EBITDA finance from had facility. X.X% operating cash generated cash long-term an compared at net year below For XXXX, our million of aimed and cash $XX.X which which There investments. and XX, capital At rate in growth remains equivalents, borrowing facility X XX, and the interest at $XXX were million XXXX, income, million X.Xx, total combined, primarily XX, stated liquidity XX, ended increased less cash our compared Through matures of ratio in million Capital last working higher in XXXX, of increased we ABL and capital, February March XXXX, in period. an the interest than operations March XX, rate our year. The At February in with credit XX, is associated X months $XXX working Xx. expectation XXXX lending adjusted are until in we to equivalents and we debt XXXX, expenditures the leases significant million million on maturities $XXX.X X.X% excess XX-month to XXXX, for March to drawn XX, million, is net now March flow incurred On of of material ratio we the revenue inflationary leverage shortages and $XX.X period cash for amended nothing requirements have our increase environment. same use with asset-based trailing excluding under in opportunities. which offset capacity

on capital strategy we and shareholders. As continue return to our such, perform acquisition to

of share dividends our XXXX. which announced share, on second quarter, $XX.X and stockholders June record through is payable to million the Board XX, on we $X.XX June Today, returned repurchases. quarter During IBP's first to we that shareholders dividend approved Directors of XXXX, XX, per of

the for We are With now capital share while dividend through committed overview, remarks. company and will our to turn continuing call I this the excess shareholders to back repurchase Jeff returning closing grow programs. to to

Jeffrey Edwards

and Michael. to Thanks, to I'd IBP for our prepared commitment again employees like remarks work, by thanking our once conclude hard company. dedication their

open is let's of for years the because over possible of call success Our all Operator, made questions. you. up the

Operator

of Our [Operator Ken first question KeyBanc. comes the Zener with line Instructions] from

Kenneth Zener

that I Was different been appreciate I thinking think is obviously, thinking? disclosure. just go increased more Could you that year? Because the you the last trends? it into contemplated there. had such seeing helpful. really that clarity something Could Was you're expand that

Michael Miller

Distribution. do AMD Ken, this to really has the Michael. It with is acquisition of December

a So decided separate that sense we out break made as segment. to it that

Kenneth Zener

this but it's this we're can talk as in price times strong word price you of amid of use time cycle view, side. resets -- past kind And how people's seeing Okay. understand But we so the tepid mind. see it your you how more the more terms because related about given you many install unfolding so many the not all much normalized in industry, in on to distribution your but this the side, I don't in stagflation, industries. the to this in given across process want And that are volume, generally I describe seeing can

Michael Miller

is Yes, again. Ken, this Michael

volume Census you it necessarily you that the if of growth the mismatch, necessarily we're when a is a the expect install, is fiberglass to tight, of nearly lot at we think, not the of through hopeful just between companies, start supply So to of considerably the But from we building see to inflationary we and rate obviously, normalization the but at growth, we continuing. clearly, entire the number relative think, When We encouraged hearing inflationary but to what that products quarter. the... spray and had, very to this were demand continuing we're solid look very environment happen look in don't that you reported And on products goes completions units will come foam and in I Bureau. year, chain. XX% environment think by completed We the that continues will, of with as as down. a be consistent, inflation growth allocation, that you're outperformed

Kenneth Zener

ahead. Go

Michael Miller

going say, I not was at solid very the just to I backlogs. authorized mean, but to a and started are historic very, numbers high, unit continuing see we're

discussion have a units which just which what terms, dollar normalized there's the bit no inflation, current the is the we're in typical I lot first and and that which of X%, it in little to solid. And things environment little a units dollar in But of that the in look seeing value great, inflation. were sort unit in I the permits of public orders you looks adjust backlog where think up a builders their makes the lost that One was think value reported But is of environment if everyone at sense about you the to is at XX%. their backlogs. up gets quarter,

So that combination of I inflation, product I think a that the of you're it's will, seeing also, you they're a combination but type well. think, as building if of that's certainly

that perspective is value of we solid. we than that's pricing environment there, demand value the And backlog. from a when look think us unit of extremely and of the we to relevant the the out the reminder, So just more believe at as backlog it's dollar a

Kenneth Zener

comment. if appreciate I can that. And I a make just

Would of roughly in you that XX% inventory is do -- to to to units? volume builders consistent still well, increase production of about say you're ways that large to in part seeing the industry's the it, exposure talked with tailwind different that but lower your mix. Last improved. Your kind year, you it operating leverage went exposure volume [XX]

Michael Miller

Yes.

Operator

question next from of the comes Grooms Trey Stephens. Our line with

Trey Grooms

looking to quickly still taking material issue, just where mean, then other lag it as lead product -- the also, availability, expecting out But wanted starts could the year, the around of are and are little foam? completions any I at rest across and real and to start for on a availability. especially with all the an So if you stands a touch to And mean maybe this look kind of how kind times of outlook change things but between in of here, with are clearly, I you your bit -- the pause. you lines there. fiberglass talk material

Jeffrey Edwards

side So know. the And a foam that everything those foam the think the this regard, is little or get a I better day time were last supply these even for every so fiberglass maybe not. free is and fiberglass on quarters Everybody there's to are want ago. want plan -- No, a absolutely year little or downtime it? things even that a back this even in couple that mix things of although running a instance, it flow, and cetera, you Jeff, Is rebuild into again. you never than kind certainly straight they out, and more issue just -- plants, et when of or than an you

get and many -- not may the a because there's in cases of lead in in to other that difficult, Some increases, too, you are they're terms the inside fiberglass kind more even products same of degree manage of industry. time terms forward the certainly notification harder be even little probably price of potentially of

grow getting to sales been So way it but service the But not have we're by too. any the supply able we customers. means, still a it's in our that little obviously easy to more general, makes adequate interesting,

Trey Grooms

you've commercial more it that's side -- can there decent then about lastly, we like demand front a backlogs what the And suggested the as we you But and some that. where progress on helpful, And it. and with Jeff. you're of year, got of your outlook maybe kind sounds then of your stand outlook their there conversations that bit like kind just the of things backlogs, business, through talk be Got on today. the having customers might from levels, little

Michael Miller

residential growth -- or commercial very that light have if tendency business. construction, that continue in business, seeing has The we're segment, We're the for that construction. market both which residential we accelerated will, expected closely which end to the side. you that heavy new would and strength about Yes, light feel given the on to us, seeing we the track business, to good the commercial a residential

And the into good we On growth business. continuing more commercial heavy about in as meaningful side, see the the year, heavy commercial are the to build. We backlogs we half there. feel of believe bidding the back we'll get

Trey Grooms

But going I what's there magnitude? that. the And is side last then pricing of kind products? could from of some sense other Okay. there you on things pricing like as and across the but pricing on other everything guys, other We a of going more lot as far have if parts fiberglass a a know from view you standpoint, them, with smaller directionally, one up. obviously, me. And your your us the decent to on for come what's is for products, into give on maybe business, But

Jeffrey Edwards

about very consider I would much read think ago, the inflationary if long how prognostications would smaller long about to product guys I going our is of think to the this, say say be got little we any got now as got of everything And I you top good that on lengthy, about up other inflation, yesterday a rates normally we we in I'll right? A thing, some the where ones But a feel bit as and price would environment that the in even much of constructive and an Well, saying but was situation, the bit like careful name, -- hand, business lines else. fact, say around pretty by to our a some interest members clearly, little as but kind I got in you careful core right? is Board a Ukraine at homebuilding you've the get it to are costs paid get rising probably right when for too lines. service and And environment, and asked last still our and I'd at we're didn't least we was we're job cost industry. up of naive we all to product it -- -- what in the I article got what in the job be the to products paid order price environment of -- right? to by now and that question his need Ken and our provide cover And wasn't do we a would you do say one is customers be one this are it's rising taking insulation. the as and the increases least provide other right

Operator

question line Capital Mike Dahl of Markets. with from Our RBC the comes next

Michael Dahl

strategy in kind kind I April, and understand this aluminum triggered it you the and your your acquisition business. part of new distribution expanding reach made wanted central December is by the the up to and building acquisition, kind on follow new of I segmentation on got the and of of

the So big to distribution, targets current about talk down as maybe you thinking road are on you us just and product the also categories want how how plans, you if update give you're formulated you M&A to an environment, that some would. use go could about and broad maybe in your that how

Jeffrey Edwards

is Jeff. This Sure.

tremendous basis. as up in a the of some even In a for into know. national distributors, they're and time. long on cases, of especially not region been very or installation particular horse manufacturers, entrants, around you probably a are insulation cases, that's There has a most Our particular been period they the number business line contemplated a for or distribution area something

where So the all not field time we us. was of many, it opportunities kind being to many, many presented had a

to us should the us did We time, adding aid time of also the more list it to of product time. long use it, kind our mean because which fiberglass, things. we it's think I took because addition distribution over right in in install is the is AMD. pure business, with doing you're distribution get to But it out a the has of not So help partner. the be laminating to with again, a ability certain regions. land but of right AMD of advantageous, side -- degree on been we to some the on quite of on for try done that And find a just does things just bit a kind and and

time, gutter over the to We've idea gutter regard. of in needs a Not on start great dissimilar the time. of So with we'll some got probably supply partners over acquisition satisfy some own business that our the side.

with working we'll we're and and -- So them to. continue

of one Our really in opportune acquisition from quite to some to our later us were to Quite going from New most Jersey stand-alone is were They're going pieces stick in for team. trying We like of really kind of our frankly, they was them business. purchasing it and them figure we X time. already a management significant small life. that in were of what a owners do gutter kind the business out as with

should was opportunity it an on. we we so thought And jump

Michael Miller

your on the question there at It's point. pipeline, of point opportunities distribution at we're regular more sort we're -- of other not actively [way] deals say that would I pursuing your M&A this looking But at.

Michael Dahl

Okay. to for a volume helpful, My That's just very yes. the to go back question, minute. second side

and absolute if customers, guess, you to volume through want maybe -- in or about terms you're year, I mean, we year-to-date seeing share the to the either mix thinking we kind go how of the I So what either of given relative as get the and be should gains market?

Michael Miller

understandable with volume just growth market And share the have with unit the based terms them, in fairly a on national high builders, share. we earlier big overall our what given discussed of had which we is

the been has So very at created record and into growth that delta next and being as frankly, at quite between and level. particularly but constructive you year a we authorized volume going for completions this year, backlog look and starts feel when around started the well not the

around remain volume So to and constructive mix. around very also continue price we

Operator

with Maklari Sachs. next comes Goldman Our question line Susan of from the

Susan Maklari

your quarter. reflected you that and Congrats question cost as on to SG&A low business? should to grow the level? came continue about the ability Michael, you a your you can the structure in to get great this in quarter. out, you on talk the longer noted exceptionally When as be SG&A is, the look term ability to sustain really how first My comments, leverage thinking And some we

Michael Miller

Quite based the with improvements significant frankly, our has SG&A. Well, to the think a in increase acquisitions, it But volume function we branches we the just you see to gaining price/mix when that SG&A would acquisitions on where very be and to strong help both mix, does past leverage and back had as do their able previous see continue cover SG&A. increases lead we leverage. obviously, lot continue is about going we're good continued SG&A to to to excellent going on in add perspective individual if upon within And constructive being because leverage. you and volume growth, and in to -- look of price forward the to I comments efficiencies lead expect quarters of we -- we or that a as our

Susan Maklari

attract done lot the it the we new to last you're volume should coming And talk and to about I Can this you labor. of support Okay. base? growth to to to to you the of a builder question it speaks That's years that and as the the quarter, when helpful. the you've that just saw about this and think backlogs the And then growth as through is, side, a retain and aware know to lot you employee over labor, several addition that next And year? of in right. my obviously, any the think material year next is continue what relates initiatives we for be balance the how also positioned

Jeffrey Edwards

Susan, Jeff. this is

and probably everybody think I pick really shape conditions, newspaper, [announces or me] ever pickup as about good you newspaper I wages. shape like under that of we're today a talking labor up old, said pretty I could in just old. as or good I is better, right? as am if you But guess, and anything these about expect

not our we the real run there. we our really I that continue place we're have in that all it past, I programs don't programs So means, and refined, good from about, about the position shows, in workforce. talk to many necessarily new we isolated and think, to put in know any but we but feel

Operator

Baumgarten Our comes the of Adam from next line question with Zelman.

Adam Baumgarten

I believe on XXXX I change -- outlook growth guess point? to at expected completions. quarter, Any first mid-single-digit said for about that you a you last guys this in

Michael Miller

obviously, we're going us backlog of sort opportunity We full it's of with we we as be is units first I obviously, in value prepared to year more the important when set the the to the quarter, number. pretty growth decline definitely that. that the looking on Census much dollar support the completions by Bureau, in basis. -- think to there Michael. what's the believe forward. a the at as in to Obviously again, this year reported for mean, And do get But is will going that that, though difficult not this saw you're are the that that backlog, be

Adam Baumgarten

the just the mix, in topic impact or meaningful of And it. Got any negative? then quarter, whether on Okay. positive

Michael Miller

growth our neutral they're other see did a We be The at lower that fairly mix perspective. quarter were lower building. is because with tends the product as just from you which, of a -- price know, products national higher to builders, in the

headwinds But had other business again, were on from the we growth the in So the mix the fairly national some side. products, builder neutral.

Operator

with Stephen line of from Our next ISI. the comes Evercore question Kim

Trey Morrish

actually Morrish Trey Steve. It's on for

do you cycle a if could volume on same growth completions the challenged do to branch. environment little garner growth a to more quarter wonder little you or you X% bit, with and you guys more bit dropping times guys With get volume when what specific speaking, volume the what seems to up to but you were able flatten be I able it broadly see a actually I to mean even out. and on more this talked put be about extending cycle -- builder

Michael Miller

lines in providing them the markets It's completed. support the every really have get service best share and that houses consistent their time we winning with their in customers market can efforts and our we to the say customers, when historical and market. trying to best we in doing everything And of are customers trend high-quality meet to those mean their

Jeffrey Edwards

and well maybe still on And it's labor, pretty get we're are. back to to positioned think the others I labor some too,

Trey Morrish

And and should shares? at still in and in about How you million] think we the about [$XXX share your back of particularly in million cash quarter, did chunk willingness $XXX using good authorization buy release to have the that left. your it. Got you then you looking repurchases the aggressiveness definitely a there that and highlighted

Michael Miller

mean, This is the have favorably. gee, I positioned Michael. very balance, we

prudent. think, very we Our leverage, is

have We our they way looked are under cash we at ABL availability facility. the that opportunistic. always considerable is say share would that I repurchases that have and

market feel in essence, we're open would $XXX quarter, the based quarter. we making $XX that's as share. a the you opportunity very I again, business in at that it the thought then. in purchased approximately we was of the first of about did the us. upon, shares better million Obviously, front We in know, we, So purchases in about say those first attractive than now

think we're positioned to able to that I to return to very well at shareholders. capital So we're be multiple ways pleased look

Operator

comes Keith with Hughes Next line of question Truist. from the

Keith Hughes

quarter Gross was we in A actually had than on ago. slightly years margin. gross margin couple the question of a higher

margins today that that be is XXXX, XXXX? we from gross for know repeatable Our in something that could what we saw

Michael Miller

Yes.

Keith Hughes

Is better there last else year? just what -- anything And would Okay. that year-over-year that realization increase? versus cause that price is

Michael Miller

EBITDA growth. is Both volume it price well a A margin meaningfully as of as margin. contribute to realization improvements lot in the consequence, as and gross

Keith Hughes

comment, not newspaper you're X also Okay. right. alone. so pick Jeff, And I up All

Operator

question JPMorgan. of next comes from Rehaut Our the Mike line with

Douglas Wardlaw

just COVID be you COVID wondering on is business guys where further now? a bit? I'm on especially you now. little little this see Doug on forward, times And you've that on the to if business. backlog on commercial Mike. impact know could I bit few give COVID's for of the a was a color I referenced the seems subsiding wondering as do what moving impact

Michael Miller

lingering We're start projects. complete in delays the definitely time continuing projects time to of to and see

work, would them, we fortunately, the to and we within having and months. and the there. thought the before year So the projects for continues extremely particularly into We half X done encouraged heavy have say, ability It's think about meaningful the we of to backdrop gotten last that commercial that XX is beginning rates latter some of start last, -- the started commercial go the work be as even have growth constructive. to we would of year work, business backlog that But we getting or 'XX the 'XX. XX thought And we feel when extended months. year did

Douglas Wardlaw

the environment XX Got over it. M&A secondly, pipeline at just all? then months? it changed of has And the rate you active? how you does any less And to the next XX thinking current are make And

Jeffrey Edwards

think I don't current The us environment the pipeline make less active. No, that rate remains robust. would

in much macro As are driven I've really some said life to not and many most the general mean, when thing, really times there's sell, before, their buy -- businesses where in where other smaller sellers in by to they we're kind to -- they cycle their life life. the want I contractors, it's looking it's of sellers and a

a and few lot a markets general. kind to of markets in business industry. most good sell of bad market? because good well, while in you a people in down talking a in the for and have Not in to down been I like a we're people No, of housing this have market? mean, the A down deal written get up don't say, sellers and do Now generally.

We And isn't businesses, around the good increases kind any than opportunities buying which pretty with don't talking impacted the that pipeline it's it's going of forward in about know about by feel perspective. acquisition the and capital from cost hugely really we're here. the really terms that -- been different of I so of our an associated returns doesn't

Operator

comes Dan Our Suisse. Oppenheim with Credit next from question of the line

Daniel Oppenheim

wondering start terms acquisition the repurchasing some as expect guess talked of How the pipeline. acquisitions about share that. continuing and X opportunistic I'll Should share opportunities? I with to you I of that, still the thoughts sort see weigh guess in we here? and is you repurchase your

Michael Miller

Yes.

with actively have continuously we can purposely pursue that cash free and positioned both to with share company fact have and combined leverage flow. the ample We and that the combined generates considerable the opportunistically so company and liquidity, acquisitions low repurchases,

in So we ability business and the do very our to share of to opportunistically growth good acquisitions, feel also in the invest about invest repurchases.

Daniel Oppenheim

the just better with and What's on something feel leading more first second in And on you're business side talking to that's Great. than seeing said that repurchase, the or the the the you sort about backlog understanding during the one, on feel side residential even strong? Is continuing And I comments you now? better is had that feeling about continuing, to the guess share the the first than that you about quarter. still in of that commercial be better quarter? -- just the

Michael Miller

as all really -- feel Combined see we're price about which mix is talking well there, positive trends side been encouraging. that we've continuing with that about It's We're of out is what the better some commercial the seeing We there. on above. business. seeing as the to backlog the

believe, constructive continue those way. forward to, move of all on a we things So in

Operator

BTIG. next line Our of the comes Instructions] [Operator with question from Ryan Gilbert

Ryan Gilbert

an your to quarter's higher from you light saw in urgency if of influenced First wondering rates. sense I'm me, customers or selling ahead all. spring inventory at on of increase that question change in get if from your that's if up of the think any mortgage And you results season, -- the homebuilder especially

Michael Miller

yes. and Yes

Ryan Gilbert

to at all? want expand You on that

Michael Miller

I out accelerated they getting start and delivering an because working this possible others by to continue for solid that getting there's they as served demand that get out many rates to foundations at that we're start framed. hard houses still of And demand. as it's they're better do houses want discussed very by well public think we, want the as the that mortgage that meet want to basis to been served the in there better to they they believe, completed and increase despite public and

to is of help backlog, growth customers completions we as to continue cycle But important the Census we points their reported know Now as improve to to by times obviously, fairly to our that, work how with underlying just believe Bureau because as the and much the going that we're disappointing. the we can that them. was strength

Ryan Gilbert

up And that have enough support there that into rates then maybe and Okay. could given a that is Great. some deceleration if if -- then in whatever impact think XXXX we at demand guess 'XX? half ends do And is some to least do 'XX? starts, and growth through year second point causes at see higher backlog I bleed you in it, really do you of completions as helpful. Or we some being enough see just backlog, deterioration this see or think That's of rest deterioration, mortgage the the you there you issue? the

Michael Miller

unprecedented that Obviously, is upon do in it dollar there we 'XX believe I but plenty the deceleration, it's current mean into of really backlog. to the depends and value of work the 'XX.

Jeffrey Edwards

the time all defined it Well, to a to it a It's home. that we've expansion of build on the lot than takes different be. historically,

Michael Miller

constructive. we we help weeks, don't would construction be it and that quite we to a cycle of reduce "normal" in And reduce But believe is even starts do couple it's anytime to honestly, a soon. it slowdown can time, expect anything very

Operator

question-and-answer we reached Mr. the I turn gentlemen, Edwards would over closing remarks. to today's end to session. this call Jeff for of like and back have Ladies

Jeffrey Edwards

Thank you and look to quarterly call. your for questions, forward you. next I our Thank

Operator

conference. today's concludes This

at time. participation your this during the your lines disconnect You of rest your you day. Thank may for

Installed Building Products (IBP) 7 May 222022 Q1 Earnings call transcript