Installed Building Products (NYSE: IBP) reported Q1 EPS of $0.78, $0.16 better than the analyst estimate of $0.62. Revenue for the quarter came in at $397.3 million versus the consensus estimate of $381.85 million.

First Quarter 2020 Highlights (Comparisons are to Prior Year Period)

• Net revenue increased 16.1% to a first quarter record of $397.3 million
• Net income increased 81.0% to $16.0 million
• Adjusted EBITDA* increased 37.9% to $49.2 million
• Net cash provided by operating activities increased 126.0% to $35.9 million
• Net income per diluted share increased 76.7% to $0.53
• Adjusted net income per diluted share* increased 52.9% to $0.78
• At March 31, 2020, IBP had $213.7 million in cash, and cash equivalents, and investments, and nothing drawn on its existing $200 million revolving line of credit
• In March 2020, acquired Royals Commercial Services, Inc., a Maryland based provider of spray foam insulation and thermal barrier installation services primarily for commercial customers, with annual revenue of approximately $10.0 million
• In March 2020, acquired a Chicago based shower, shelving, and mirror installer, with annual revenue of approximately $1.1 million

Recent Developments

• Revenue for the month of April 2020 increased approximately 2% compared to the same period last year, even though 10% of our branches by revenue were closed during the month due to construction’s non-essential status in certain markets
• Currently, markets representing less than 2% of revenue are closed due to construction’s non-essential status.

“The COVID-19 health crisis has created unprecedented social and economic challenges and our thoughts are with everyone impacted by the pandemic,” stated Jeff Edwards, Chairman and Chief Executive Officer. “We are focused on supporting our customers and employees across the country, while ensuring our business is well positioned to withstand the uncertainty caused by the COVID-19 crisis. Across our national footprint, our branches are following federal, state, and local requirements to protect the health and safety of our customers and employees.”

“During the first quarter, branches representing approximately 90% of our revenue were located in markets where construction has been deemed an essential business and these branches remain open and operational, however restrictions limiting the number of laborers on a jobsite and our social distancing practices have impacted both our volume of completed jobs and efficiencies across our single-family, multi-family and commercial end markets. We estimate that first quarter revenue was reduced by $2.0 - $2.5 million due to the COVID-19 health crisis. I am encouraged that monthly revenue for April 2020 increased approximately 2% compared to the previous year period, despite branch closures in certain markets due to construction’s non-essential status. Currently, approximately 98% of our branches by revenue are in markets where construction is deemed essential.”

“Single-family housing units under construction remain robust, which we believe supports over six months of industry backlog. Our strategies to expand our geographic footprint, and end market and product diversification have enhanced our local market presence and allows us to leverage our existing branch footprint during this uncertain time. Additionally, our acquisition pipeline remains strong, but we have temporarily delayed closing acquisitions until the economic environment stabilizes.”

“We entered the current market environment from a position of financial and operating strength. The 2020 first quarter was strong across our end markets and we achieved record first quarter revenue, earnings, and adjusted EBITDA. In addition, our balance sheet and access to capital is strong. During the quarter, we generated nearly $36 million of cash flow from operations, and at March 31, 2020 we had over $213.7 million of cash, and cash equivalents, and investments. We also have nothing drawn on our existing $200 million revolving line of credit. Our strong balance sheet, combined with our experienced leadership team, long-standing customer relationships, and asset light, high variable cost and diverse business model will allow IBP to navigate through this period of economic uncertainty,” concluded Mr. Edwards.

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