TopBuild (NYSE: BLD) reported Q1 EPS of $1.06, $0.26 better than the analyst estimate of $0.80. Revenue for the quarter came in at $619.3 million versus the consensus estimate of $599.96 million.

• Net Sales increased 26.0% to $619.3 million, primarily driven by acquisitions, price increases and sales volume growth at TruTeam. Of the 26.0% revenue growth, same branch sales contributed 7.1%.
• Gross margin increased 250 basis points to 25.1%.
• Operating profit was $56.6 million, compared to $33.9 million, a 67.0% increase. On an adjusted basis, operating profit was $59.1 million, compared to $38.2 million, a 54.8% improvement.
• Operating margin was 9.1% compared to 6.9%. Adjusted operating margin improved 170 basis points to 9.5%.
• Net income was $38.0 million, or $1.09 per diluted share, compared to net income of $26.4 million or $0.74 per diluted share.
• Adjusted net income was $36.6 million, or $1.06 per diluted share, compared to $26.2 million, or $0.73 per diluted share.
• Adjusted EBITDA was $74.5 million, compared to $46.0 million, a 62.0% increase and adjusted EBITDA margin improved 260 basis points to 12.0%. Incremental adjusted EBITDA margin was 22.3%.
• On a same branch basis, adjusted EBITDA was $57.2 million, a 24.3% increase, and incremental adjusted EBITDA margin was 32.2%.
• Acquisitions contributed $93.2 million of revenue. Incremental adjusted EBITDA related to these acquisitions was 18.6%.
• At March 31, 2019, the Company had cash and cash equivalents of $98.3 million and availability under the revolving credit facility of $182.7 million for total liquidity of $281.0 million.

Jerry Volas, Chief Executive Officer, stated, “The strength and diversity of the TopBuild operating model produced another outstanding quarter, in both sales and earnings. Our residential business was solid and our commercial business outperformed expectations. Our ongoing focus on operational efficiency improvements and fixed cost leveraging drove strong conversion of top line growth, both organic and through acquisitions, to the bottom line.

“We are optimistic 2019 will be another strong year for TopBuild.”

GUIDANCE:

TopBuild sees FY2019 revenue of $2.61-2.67 billion, versus the consensus of $2.6 billion.

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