Strong first quarter for Installed Building Products
Insulation installer and building services provider Installed Building Products (IBP) reported that first quarter net revenue increased 16.1% to a first quarter record of $397.3 million.
This compares to a net revenue of $342.1 million in the first quarter of 2019.
IBP said revenue for April 2020 increased approximately 2% compared to the same period last year, even though 10% of its branches by revenue were closed during the month due to construction’s non-essential status in certain markets as a result of the COVID-19 crisis.
Net income for the quarter increased 81% to $16 million from a net income of $9 million for the same period last year.
In March, IBP acquired Royals Commercial Services, Inc., a Maryland-based provider of spray foam insulation and thermal barrier installation services with annual revenue of approximately $10 million.
IBP also acquired a Chicago-based shower, shelving, and mirror installer, with annual revenue of approximately $1.1 million two months ago.
Based in Columbus, Ohio, IBP operates more than 180 branch locations and provides waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders.
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The Bottom Line: Sales rise 16.1% as Installed Building Products’ net income soars 81% to $16 million in the first quarter.
What the CEO said: “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 job site 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,” said Jeff Edwards, chairman and CEO of Installed Building Products.
“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.”
Looking ahead, Edwards said, “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.”
Company info: The full first quarter 2020 report from Installed Building Products is available here.
This compares to a net revenue of $342.1 million in the first quarter of 2019.
IBP said revenue for April 2020 increased approximately 2% compared to the same period last year, even though 10% of its branches by revenue were closed during the month due to construction’s non-essential status in certain markets as a result of the COVID-19 crisis.
Net income for the quarter increased 81% to $16 million from a net income of $9 million for the same period last year.
In March, IBP acquired Royals Commercial Services, Inc., a Maryland-based provider of spray foam insulation and thermal barrier installation services with annual revenue of approximately $10 million.
IBP also acquired a Chicago-based shower, shelving, and mirror installer, with annual revenue of approximately $1.1 million two months ago.
Based in Columbus, Ohio, IBP operates more than 180 branch locations and provides waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders.
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The Bottom Line: Sales rise 16.1% as Installed Building Products’ net income soars 81% to $16 million in the first quarter.
What the CEO said: “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 job site 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,” said Jeff Edwards, chairman and CEO of Installed Building Products.
“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.”
Looking ahead, Edwards said, “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.”
Company info: The full first quarter 2020 report from Installed Building Products is available here.