Installed Building Products (NYSE: IBP) reported Q3 EPS of $0.99, $0.11 better than the analyst estimate of $0.88. Revenue for the quarter came in at $396.4 million versus the consensus estimate of $385.04 million.

Third Quarter 2019 Highlights (Comparisons are to Prior Year Period)

• Net revenue increased 13.6% to a record $396.4 million
• Revenue from residential non-insulation products increased 14.3%
• Alpha’s large commercial construction revenue increased 19.4%
• Net income increased 36.3% to a record $21.2 million
• Adjusted EBITDA* increased 27.8% to a record $55.9 million
• Net income per diluted share increased 42.0% to a record $0.71
• Adjusted net income per diluted share* increased 37.5% to a record $0.99
• In September 2019, completed an offering of $300 million Senior Notes and entered into a new and increased $200 million ABL Revolving Credit Facility
• In September 2019, acquired Northeast Spray Insulation, an insulation installer serving the Maine and New Hampshire markets with annual revenue of approximately $3.6 million
• In September 2019, acquired Minnesota Spray-Foam, an insulation installer serving the Minnesota market with annual revenue of approximately $1.6 million
• In August 2019, acquired Therm-Con, LLC and Foamtech, Inc., a fireplace, shower doors, closet shelving, and mirror installer serving the Tennessee, Georgia and Alabama markets with annual revenue of approximately $4.7 million

“Favorable pricing trends, stable end-market demand, and the benefits of our geographic and product diversification strategies drove record third quarter sales and earnings,” stated Jeff Edwards, Chairman and Chief Executive Officer. “Our third quarter results demonstrate the power of our financial model and our focus on profitability. I am pleased to report that for the 2019 third quarter IBP generated record quarterly net income of $21.2 million, a 36% increase from the 2018 third quarter, and record adjusted EBITDA* of $55.9 million, a nearly 28% increase from the 2018 third quarter.”

“During the quarter, we strengthened our balance sheet with a $300 million Senior Notes offering. The pricing and structure of our Senior Notes provides us with significant capital to continually invest in our business throughout the housing cycle, while staggering our debt maturities. At September 30, 2019, IBP had $239.9 million of cash, cash equivalents, and short-term investments and nothing drawn on our $200 million ABL Revolving Credit Facility. Our strong capital position, combined with our compelling operating cash flow, provides us with the financial flexibility to support our growth strategies and pursue acquisitions that continue to expand our geography and diversify our end-products and end-markets.”

“Industry trends remain positive and net revenue increased 13.6% year-over-year as a result of stable demand in our single-family markets and double-digit growth in our multi-family and commercial end-markets. In addition, as a result of our product diversification strategy, revenue from complimentary products, not including Alpha’s large commercial construction revenue, increased 14.3% and was accretive to third quarter gross margin. I am extremely encouraged by the positive business and market trends underway and we believe we are well-positioned for continued robust sales and earnings growth,” concluded Mr. Edwards.

For earnings history and earnings-related data on Installed Building Products (IBP) click here.