TopBuild (BLD) Tops Q4 EPS by 18c, Revenues Beat; Offers FY21 Revenue Mid-Point Guidance Above Consensus

February 23, 2021 6:48 AM EST

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TopBuild (NYSE: BLD) reported Q4 EPS of $2.15, $0.18 better than the analyst estimate of $1.97. Revenue for the quarter came in at $721.5 million versus the consensus estimate of $712.27 million.

Fourth Quarter Financial Highlights

(unless otherwise indicated, comparisons are to the quarter ended December 31, 2019)

  • Net sales increased 8.9% to $721.5 million, driven by increased volume and sales from acquisitions.
  • Gross margin expanded 150 basis points to 27.4%. On an adjusted basis, gross margin was 27.5%, a 160-basis point increase.
  • Operating profit was $103.1 million, compared to $76.4 million. On an adjusted basis, operating profit was $104.0 million, compared to $76.6 million, a 35.7% improvement.
  • Operating margin was 14.3%. Adjusted operating margin improved 280 basis points to 14.4%.
  • Net income was $70.8 million, or $2.13 per diluted share, compared to $46.0 million, or $1.36 per diluted share.
  • Adjusted net income was $71.3 million, or $2.15 per diluted share, compared to $50.0 million, or $1.48 per diluted share.
  • Adjusted EBITDA was $121.5 million, compared to $92.5 million, a 31.2% increase and adjusted EBITDA margin improved 280 basis points to 16.8%. Incremental adjusted EBITDA margin was 48.9%.
  • At December 31, 2020, the Company had cash and cash equivalents of $330.0 million, availability under its revolving credit facility of $389.6 million for total liquidity of $719.6 million.

Robert Buck, President and Chief Executive Officer, stated, “Our fourth quarter results were strong with operating margins expanding over 200 basis points at both TruTeam and Service Partners. Same branch residential and commercial revenue improved sequentially from the third quarter and continues to strengthen.

“Labor shortages and material constraints are extending the building cycle and the traditional lag time in our business. Our ability to share labor and material across our footprint gives us an advantage in serving our customers and helps us mitigate these challenges.”

Buck added, “Our 2020 financial results demonstrate the strength of our operating model and the hard work and dedication of our entire TopBuild team. Despite the challenges resulting from the pandemic, both of our business segments reported revenue growth and solid margin expansion.

“In addition, during the year we completed three acquisitions, strengthening our footprint in the high growth markets of Texas, Colorado and Tennessee.

“Looking ahead, housing fundamentals remain robust and our Company should continue to benefit from strong demand for new housing construction. Our focus remains on driving top line growth and improving operational efficiencies throughout the Company.”

GUIDANCE:

TopBuild sees FY2021 revenue of $3.05-3.15 billion, versus the consensus of $3.06 billion.

This guidance and long-term targets reflect management’s current view of present and future market conditions and are based on assumptions such as housing starts, general and administrative expenses, weighted average diluted shares outstanding and interest rates.

For earnings history and earnings-related data on TopBuild (BLD) click here.



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