- Net Revenue Increased 26.4% to $159.7 Million
- Adjusted EBITDA Increased 77.4% to $17.7 Million
- Operating Income Increased 148.5% to $11.4 Million
- Adjusted Net Income Per Diluted Share Increased 109.1% to $0.23
Installed Building Products, Inc. (the “Company” or “IBP”) (NYSE: IBP),
an industry-leading installer of insulation and complementary building
products, announced today results for the second quarter ended June 30,
2015.
Second Quarter 2015 Highlights
-
Net revenue increased 26.4% to $159.7 million compared to second
quarter 2014; same branch sales increased 10.0% compared to second
quarter 2014 attributable to higher volume, price gains, and more
favorable project mix
-
Adjusted EBITDA improved 77.4% to $17.7 million compared to second
quarter 2014
-
Operating income increased 148.5% to $11.4 million compared to second
quarter 2014
-
Adjusted net income per diluted share increased to $0.23, compared to
$0.11 per diluted share in the second quarter 2014. GAAP earnings per
diluted share increased to $0.21 compared to earnings per diluted
share of $0.07 in the second quarter 2014
-
In April 2015, entered into a new five year, $200 million senior
secured credit facility, which replaced the Company’s prior $100
million credit facility and provides additional liquidity for
acquisitions and general corporate purposes
-
In April 2015, acquired C.Q. Insulation Inc. based in Tampa, Florida,
which provides an attractive platform to pursue additional
multi-family and commercial projects, with revenue of approximately
$6.9 million in 2014
-
In June 2015, acquired Layman Brothers Contracting based in Powhatan,
Virginia, which enhances the Company’s product offering and end market
mix, with revenues of approximately $13.7 million in 2014
-
In June 2015, acquired Bluegrass Insulation of Bowling Green, based in
Bowling Green, Kentucky, which enhances the Company's presence in
select markets in Kentucky and Tennessee, with revenue of
approximately $1.3 million in 2014
Recent Developments
-
In July 2015, acquired EcoLogic Energy Solutions, based in Stamford,
Connecticut, which enhances the Company’s presence in the Connecticut,
New York and Northern New Jersey markets, with trailing twelve month
revenues ending April 30, 2015 of approximately $6.0 million
“The second quarter reflects further momentum of our business strategy,
which produced another quarter of year-over-year growth in net revenue,
same branch sales and profitability," stated Jeff Edwards, Chairman and
Chief Executive Officer. "Our financial results are benefitting from
continued improvements in the housing market, as well as the strong
local market performance of our branches. Our core single family same
branch sales outperformed the growth in single family residential
completions during the second quarter and we expect this trend will
continue.”
“I am very pleased with our acquisition strategy, pipeline, integration,
and performance. IBP has built an exciting platform that offers a
compelling option for local builders. During 2015, we have already
acquired $63 million of annual revenues and these acquisitions are
quickly contributing to both revenues and earnings. Our capital position
remains strong, and we have a robust pipeline of potential acquisitions
for the remainder of 2015 and through 2016. We expect positive momentum
to continue throughout the remainder of the year as we continue to
benefit from improving residential end markets,” concluded Mr. Edwards.
Second Quarter 2015 Results Overview
For the second quarter of 2015, net revenue was $159.7 million, an
increase of 26.4% from $126.3 million in the second quarter of 2014. On
a same branch basis, net revenue improved 10.0% from the prior year
quarter, with approximately half of the growth attributable to an
increase in the number of completed jobs and the remainder through price
gains and a more favorable customer and product mix.
Gross profit improved 33.0% to $46.3 million from $34.8 million in the
prior year quarter. Gross margin expanded to 29.0% from 27.6% in the
prior year quarter, primarily due to favorable leverage on higher net
revenue and increased cost efficiencies.
Selling, general and administrative expense as a percentage of net
revenue was 20.9% compared to 23.4% in the prior year quarter, primarily
due to higher net revenues which more than offset an increase in costs
associated with being a publicly traded company and an increase in
personnel costs to support higher end market activity.
Adjusted EBITDA was $17.7 million, a 77.4% increase from $10.0 million
in the prior year quarter, largely due to higher net revenue, and
improvements in gross margin and SG&A leverage. Adjusted EBITDA as a
percentage of net revenue grew 320 basis points to 11.1%, compared to
7.9% in the prior year quarter. Operating income was $11.4 million, an
increase of 148.5% from $4.6 million in the prior year quarter.
Adjusted net income from continuing operations was $7.2 million, or
$0.23 per diluted share, compared to $3.5 million, or $0.11 per diluted
share in the prior year quarter. Adjusted net income from continuing
operations adjusts for the impact of non-core items in both periods. On
a GAAP basis, net income attributable to common stockholders was $6.5
million, or $0.21 per diluted share, compared to net income attributable
to common stockholders of $2.3 million, or $0.07 per diluted share, in
the prior year quarter.
Conference Call and Webcast
The Company will host a conference call and webcast on Wednesday, July
29, 2015 at 10:00 a.m. Eastern time to discuss these results. To
participate in the call, please dial 877-407-9039 (domestic) or
201-689-8470 (international). The live webcast will be available at www.installedbuildingproducts.com
in the investor relations section. A replay of the conference call will
be available through August 29, 2015, by dialing 877-870-5176 (domestic)
or 858-384-5517 (international) and entering the pass code 13614549.
About Installed Building Products
Installed Building Products, Inc. is the nation's second largest
insulation installer for the residential new construction market and is
also a diversified installer of complementary building products,
including garage doors, rain gutters, shower doors, closet shelving and
mirrors, throughout the United States. The Company manages all aspects
of the installation process for its customers, including direct
purchases of materials from national manufacturers, supply of materials
to job sites and quality installation. The Company offers its portfolio
of services for new and existing single-family and multi-family
residential and commercial building projects from its national network
of branch locations.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the federal securities laws, including with respect to the
demand for our services, expansion of our national footprint, our
ability to capitalize on the new home construction recovery, our ability
to strengthen our market position, our ability to pursue value-enhancing
acquisitions, our ability to improve profitability and expectations for
demand for our services for the remainder of 2015. Forward-looking
statements may generally be identified by the use of words such as
"anticipate," "believe," "expect," "intends," "plan," and "will" or, in
each case, their negative, or other variations or comparable
terminology. These forward-looking statements include all matters that
are not historical facts. By their nature, forward-looking statements
involve risks and uncertainties because they relate to events and depend
on circumstances that may or may not occur in the future. Any
forward-looking statements that we make herein and in any future reports
and statements are not guarantees of future performance, and actual
results may differ materially from those expressed in or suggested by
such forward-looking statements as a result of various factors,
including, without limitation, the factors discussed in the “Risk
Factors” section of the Company’s Annual Report on Form 10-K for the
year ended December 31, 2014, as the same may be updated from time to
time in our subsequent filings with the Securities and Exchange
Commission. Any forward-looking statement made by the Company in this
press release speaks only as of the date hereof. New risks and
uncertainties arise from time to time, and it is impossible for the
Company to predict these events or how they may affect it. The Company
has no obligation, and does not intend, to update any forward-looking
statements after the date hereof, except as required by federal
securities laws.
Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with U.S.
generally accepted accounting principles (“GAAP”), this press release
contains the non-GAAP financial measures of Adjusted EBITDA, Adjusted
Net Income and Adjusted Gross Profit. The reasons for the use of
Adjusted EBITDA, Adjusted Net Income and Adjusted Gross Profit,
reconciliations of Adjusted EBITDA, Adjusted Net Income and Adjusted
Gross Profit to the most directly comparable GAAP measures and other
information relating to Adjusted EBITDA, Adjusted Net Income and
Adjusted Gross Profit are included below following the unaudited
condensed consolidated financial statements.
|
|
|
Installed Building Products, Inc.
|
Condensed Consolidated Statements of Operations
|
(unaudited, in thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
159,693
|
|
$
|
126,348
|
|
|
$
|
289,641
|
|
$
|
232,294
|
|
Cost of sales
|
|
|
113,411
|
|
|
91,539
|
|
|
|
209,233
|
|
|
171,080
|
|
|
Gross profit
|
|
|
46,282
|
|
|
34,809
|
|
|
|
80,408
|
|
|
61,214
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
Selling
|
|
|
8,881
|
|
|
7,556
|
|
|
|
16,993
|
|
|
14,026
|
|
|
Administrative
|
|
|
24,528
|
|
|
21,957
|
|
|
|
46,765
|
|
|
40,318
|
|
|
Amortization
|
|
|
1,485
|
|
|
714
|
|
|
|
2,274
|
|
|
1,411
|
|
|
Operating income
|
|
|
11,388
|
|
|
4,582
|
|
|
|
14,376
|
|
|
5,459
|
|
Other expense (income)
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
967
|
|
|
674
|
|
|
|
1,665
|
|
|
1,262
|
|
|
Other
|
|
|
194
|
|
|
98
|
|
|
|
219
|
|
|
(364
|
)
|
|
|
|
|
1,161
|
|
|
772
|
|
|
|
1,884
|
|
|
898
|
|
|
Income before income taxes
|
|
|
10,227
|
|
|
3,810
|
|
|
|
12,492
|
|
|
4,561
|
|
Income tax provision
|
|
|
3,720
|
|
|
1,483
|
|
|
|
4,743
|
|
|
1,833
|
|
|
Net income from continuing operations
|
|
|
6,507
|
|
|
2,327
|
|
|
|
7,749
|
|
|
2,728
|
|
Discontinued operations
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations
|
|
|
-
|
|
|
33
|
|
|
|
-
|
|
|
78
|
|
|
Income tax benefit
|
|
|
-
|
|
|
(13
|
)
|
|
|
-
|
|
|
(30
|
)
|
|
Loss from discontinued operations, net of income taxes
|
|
|
-
|
|
|
20
|
|
|
|
-
|
|
|
48
|
|
|
Net income
|
|
|
6,507
|
|
|
2,307
|
|
|
|
7,749
|
|
|
2,680
|
|
|
Accretion charges on Redeemable Preferred Stock
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
(19,897
|
)
|
Net income (loss) attributable to common stockholders
|
|
$
|
6,507
|
|
$
|
2,307
|
|
|
$
|
7,749
|
|
$
|
(17,217
|
)
|
Basic net income (loss) per share attributable to common
stockholders:
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
0.21
|
|
$
|
0.08
|
|
|
$
|
0.25
|
|
$
|
(0.61
|
)
|
|
Loss from discontinued operations
|
|
|
-
|
|
|
(0.01
|
)
|
|
|
-
|
|
|
-
|
|
|
Net income (loss) per share
|
|
$
|
0.21
|
|
$
|
0.07
|
|
|
$
|
0.25
|
|
$
|
(0.61
|
)
|
Diluted net income (loss) per share attributable to common
stockholders:
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
0.21
|
|
$
|
0.08
|
|
|
$
|
0.25
|
|
$
|
(0.61
|
)
|
|
Loss from discontinued operations
|
|
|
-
|
|
|
(0.01
|
)
|
|
|
-
|
|
|
-
|
|
|
Net income (loss) per share
|
|
$
|
0.21
|
|
$
|
0.07
|
|
|
$
|
0.25
|
|
$
|
(0.61
|
)
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
31,228,000
|
|
|
30,777,955
|
|
|
|
31,360,060
|
|
|
28,370,787
|
|
|
Diluted
|
|
|
31,249,050
|
|
|
30,777,955
|
|
|
|
31,371,216
|
|
|
28,370,787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installed Building Products, Inc.
|
Condensed Consolidate Balance Sheets
|
(unaudited, in thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
Current assets
|
|
|
|
|
Cash
|
|
$
|
5,562
|
|
|
$
|
10,761
|
|
Accounts receivable (less allowance for doubtful accounts of
$3,070 and $2,661 at June 30, 2015 and December 31, 2014,
respectively)
|
|
|
88,656
|
|
|
|
72,280
|
|
Inventories
|
|
|
27,424
|
|
|
|
23,971
|
|
Other current assets
|
|
|
7,589
|
|
|
|
12,276
|
|
Total current assets
|
|
|
129,231
|
|
|
|
119,288
|
|
Property and equipment, net
|
|
|
47,230
|
|
|
|
39,370
|
|
Non-current assets
|
|
|
|
|
Goodwill
|
|
|
74,236
|
|
|
|
53,393
|
|
Intangibles, net
|
|
|
47,148
|
|
|
|
17,718
|
|
Other non-current assets
|
|
|
8,154
|
|
|
|
4,393
|
|
Total non-current assets
|
|
|
129,538
|
|
|
|
75,504
|
|
Total assets
|
|
$
|
305,999
|
|
|
$
|
234,162
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Current liabilities
|
|
|
|
|
Current maturities of long-term debt
|
|
$
|
4,827
|
|
|
$
|
1,786
|
|
Current maturities of capital lease obligations
|
|
|
9,161
|
|
|
|
9,374
|
|
Accounts payable
|
|
|
51,973
|
|
|
|
46,584
|
|
Accrued compensation
|
|
|
13,112
|
|
|
|
11,311
|
|
Other current liabilities
|
|
|
13,572
|
|
|
|
7,501
|
|
Total current liabilities
|
|
|
92,645
|
|
|
|
76,556
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
72,898
|
|
|
|
25,070
|
|
Capital lease obligations, less current maturities
|
|
|
14,846
|
|
|
|
17,508
|
|
Deferred income taxes
|
|
|
14,557
|
|
|
|
9,746
|
|
Other long-term liabilities
|
|
|
16,496
|
|
|
|
13,408
|
|
Total liabilities
|
|
|
211,442
|
|
|
|
142,288
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
Preferred Stock; $0.01 par value: 5,000,000 shares authorized, 0
issued and outstanding at June 30, 2015 and December 31, 2014,
respectively
|
|
|
-
|
|
|
|
-
|
|
Common Stock; $0.01 par value: 100,000,000 shares authorized,
31,982,888 and 31,839,087 issued and 31,366,328 and 31,539,087
outstanding at June 30, 2015 and December 31, 2014, respectively
|
|
|
320
|
|
|
|
319
|
|
Additional paid in capital
|
|
|
155,530
|
|
|
|
154,497
|
|
Accumulated deficit
|
|
|
(49,910
|
)
|
|
|
(57,659
|
)
|
Treasury Stock; at cost: 616,560 and 300,000 shares, respectively
|
|
|
(11,383
|
)
|
|
|
(5,283
|
)
|
Total stockholders' equity
|
|
|
94,557
|
|
|
|
91,874
|
|
Total liabilities and stockholders' equity
|
|
$
|
305,999
|
|
|
$
|
234,162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installed Building Products, Inc.
|
Condensed Consolidated Statements of Cash Flows
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
Six months ended June 30,
|
|
|
2015
|
|
2014
|
Cash flows from operating activities
|
|
|
|
|
Net income
|
|
$
|
7,749
|
|
|
$
|
2,680
|
|
Adjustments to reconcile net income to net cash provided by
operating activities
|
|
|
Depreciation and amortization of property and equipment
|
|
|
7,366
|
|
|
|
5,602
|
|
Amortization of intangibles
|
|
|
2,274
|
|
|
|
1,411
|
|
Amortization of deferred financing costs
|
|
|
133
|
|
|
|
87
|
|
Provision for doubtful accounts
|
|
|
953
|
|
|
|
843
|
|
Gain on sale of property and equipment
|
|
|
(164
|
)
|
|
|
(242
|
)
|
Noncash stock compensation
|
|
|
958
|
|
|
|
300
|
|
Other
|
|
|
-
|
|
|
|
(490
|
)
|
Changes in assets and liabilities, excluding effects of acquisitions
|
|
|
|
|
Accounts receivable
|
|
|
(9,865
|
)
|
|
|
(5,570
|
)
|
Inventories
|
|
|
(1,988
|
)
|
|
|
(1,901
|
)
|
Other assets
|
|
|
3,715
|
|
|
|
261
|
|
Accounts payable
|
|
|
1,592
|
|
|
|
4,596
|
|
Income taxes payable
|
|
|
3,302
|
|
|
|
(855
|
)
|
Other liabilities
|
|
|
(626
|
)
|
|
|
908
|
|
Net cash provided by operating activities
|
|
|
15,399
|
|
|
|
7,630
|
|
Cash flows from investing activities
|
|
|
|
|
Restricted cash
|
|
|
-
|
|
|
|
70
|
|
Purchases of property and equipment
|
|
|
(11,513
|
)
|
|
|
(1,518
|
)
|
Acquisitions of businesses, net of cash acquired of $761 and $0,
respectively
|
|
|
(43,989
|
)
|
|
|
(2,006
|
)
|
Proceeds from sale of property and equipment
|
|
|
340
|
|
|
|
390
|
|
Other
|
|
|
(407
|
)
|
|
|
-
|
|
Net cash used in investing activities
|
|
|
(55,569
|
)
|
|
|
(3,064
|
)
|
Cash flows from financing activities
|
|
|
|
|
Proceeds from initial public offering of common stock, net of costs
|
|
|
-
|
|
|
|
87,645
|
|
Proceeds from secondary public offering of common stock, net of costs
|
|
|
-
|
|
|
|
14,418
|
|
Redemption of Redeemable Preferred Stock
|
|
|
-
|
|
|
|
(75,735
|
)
|
Net payments on previous revolving line of credit
|
|
|
-
|
|
|
|
(20,280
|
)
|
Proceeds from revolving line of credit
|
|
|
75,750
|
|
|
|
-
|
|
Payments on revolving line of credit
|
|
|
(75,750
|
)
|
|
|
-
|
|
Proceeds from new term loan
|
|
|
50,000
|
|
|
|
-
|
|
Payments on previous term loan
|
|
|
(24,688
|
)
|
|
|
-
|
|
Proceeds from delayed-draw term loan
|
|
|
15,000
|
|
|
|
-
|
|
Proceeds from vehicle and equipment notes payable
|
|
|
7,979
|
|
|
|
-
|
|
Debt issuance costs
|
|
|
(758
|
)
|
|
|
-
|
|
Principal payments on long term debt
|
|
|
(1,611
|
)
|
|
|
(689
|
)
|
Principal payments on capital lease obligations
|
|
|
(4,851
|
)
|
|
|
(4,477
|
)
|
Payments for deferred initial public offering costs
|
|
|
-
|
|
|
|
(4,254
|
)
|
Payments for deferred secondary public offering costs
|
|
|
-
|
|
|
|
(126
|
)
|
Repurchase of common stock
|
|
|
(6,100
|
)
|
|
|
-
|
|
Net cash provided by (used in) financing activities
|
|
|
34,971
|
|
|
|
(3,498
|
)
|
Net change in cash
|
|
|
(5,199
|
)
|
|
|
1,068
|
|
Cash at beginning of period
|
|
|
10,761
|
|
|
|
4,065
|
|
Cash at end of period
|
|
$
|
5,562
|
|
|
$
|
5,133
|
|
Supplemental disclosures of cash flow information
|
|
|
|
|
Net cash paid during the period for:
|
|
|
|
|
Interest
|
|
$
|
1,480
|
|
|
$
|
1,183
|
|
Income taxes, net of refunds
|
|
|
1,318
|
|
|
|
2,579
|
|
Supplemental disclosure of noncash investing and financing activities
|
|
|
|
|
Vehicles capitalized under capital leases and related lease
obligations
|
|
|
1,966
|
|
|
|
9,367
|
|
Seller obligations in connection with acquisition of businesses
|
|
|
8,392
|
|
|
|
279
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted Net Income measure performance by adjusting
EBITDA and GAAP net income, respectively, for certain income or expense
items that are not considered part of our core operations. We believe
that the presentation of these measures provides useful information to
investors regarding our results of operations because it assists both
investors and us in analyzing and benchmarking the performance and value
of our business.
We believe the Adjusted EBITDA measure is useful to investors and us as
a measure of comparative operating performance from period to period as
it measures our changes in pricing decisions, cost controls and other
factors that impact operating performance, and removes the effect of our
capital structure (primarily interest expense), asset base (primarily
depreciation and amortization), items outside our control (primarily
income taxes) and the volatility related to the timing and extent of
other activities such as asset impairments and non-core income and
expenses. Accordingly, we believe that this measure is useful for
comparing general operating performance from period to period. In
addition, we use various EBITDA-based measures in determining the
achievement of awards under certain of our incentive compensation
programs. Other companies may define Adjusted EBITDA differently and, as
a result, our measure may not be directly comparable to measures of
other companies. In addition, Adjusted EBITDA may be defined differently
for purposes of covenants contained in our revolving credit facility or
any future facility.
Although we use the Adjusted EBITDA measure to assess the performance of
our business, the use of the measure is limited because it does not
include certain material expenses, such as interest and taxes, necessary
to operate our business. Adjusted EBITDA should be considered in
addition to, and not as a substitute for, net (loss) income in
accordance with GAAP as a measure of performance. Our presentation of
this measure should not be construed as an indication that our future
results will be unaffected by unusual or non-recurring items. This
measure has limitations as an analytical tool, and you should not
consider it in isolation or as a substitute for analysis of our results
as reported under GAAP. Because of these limitations, this measure is
not intended as an alternative to net (loss) income from continuing
operations as an indicator of our operating performance, as an
alternative to any other measure of performance in conformity with GAAP
or as an alternative to cash flow (used in) provided by operating
activities as a measure of liquidity. You should therefore not place
undue reliance on this measure or ratios calculated using this measure.
We also believe the Adjusted Net Income measure is useful to investors
and us as a measure of comparative operating performance from period to
period as it measures our changes in pricing decisions, cost controls
and other factors that impact operating performance, and removes the
effect of certain non-core items such as accretion charges on Redeemable
Preferred Stock, discontinued operations, public offering costs, the tax
impact of these certain non-core items, and the volatility related to
the timing and extent of other activities such as asset impairments and
non-core income and expenses. Accordingly, we believe that this measure
is useful for comparing general operating performance from period to
period. Other companies may define Adjusted Net Income differently and,
as a result, our measure may not be directly comparable to measures of
other companies. In addition, Adjusted Net Income may be defined
differently for purposes of covenants contained in our revolving credit
facility or any future facility.
We believe the Adjusted Gross Profit measure is useful to investors and
us as a measure of comparative operating performance from period to
period as it measures our changes in pricing decisions, cost controls
and other factors that impact operating performance, and removes
depreciation and the effect of certain non-core items. Accordingly, we
believe that this measure is useful for comparing general operating
performance from period to period. Other companies may define Adjusted
Gross Profit differently and, as a result, our measure may not be
directly comparable to measures of other companies.
INSTALLED BUILDING PRODUCTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(unaudited, in thousands, except share and per share amounts)
The table below reconciles Adjusted Net Income to the most directly
comparable GAAP financial measure, GAAP net income (loss) for the
periods presented therein.
|
|
|
|
|
|
Three months ended
|
Six months ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to common stockholders, as reported
|
|
$
|
6,507
|
|
|
$
|
2,307
|
|
|
$
|
7,749
|
|
|
$
|
(17,217
|
)
|
Adjustments for net income from continuing operations:
|
|
|
|
|
|
|
|
|
Accretion charges on Redeemable Preferred Stock
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19,897
|
|
Loss from discontinued operations, net of income taxes
|
|
|
-
|
|
|
|
20
|
|
|
|
-
|
|
|
|
48
|
|
Net income from continuing operations
|
|
$
|
6,507
|
|
|
$
|
2,327
|
|
|
$
|
7,749
|
|
|
$
|
2,728
|
|
Adjustments for adjusted net income from continuing operations:
|
|
|
|
|
|
|
|
|
IPO costs
|
|
|
-
|
|
|
|
1,259
|
|
|
|
-
|
|
|
|
1,335
|
|
Sarbanes-Oxley initial implementation
|
|
|
-
|
|
|
|
262
|
|
|
|
-
|
|
|
|
262
|
|
Gain from put option Redeemable Preferred Stock
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(490
|
)
|
Share based compensation expense
|
|
|
856
|
|
|
|
300
|
|
|
|
958
|
|
|
|
300
|
|
Acquisition related expenses
|
|
|
268
|
|
|
|
-
|
|
|
|
487
|
|
|
|
-
|
|
Tax impact of adjusted items at 37.5% effective tax rate1
|
|
|
(421
|
)
|
|
|
(683
|
)
|
|
|
(542
|
)
|
|
|
(528
|
)
|
Adjusted net income from continuing operations
|
|
$
|
7,209
|
|
|
$
|
3,465
|
|
|
$
|
8,652
|
|
|
$
|
3,607
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (diluted)
|
|
|
31,249,050
|
|
|
|
30,777,955
|
|
|
|
31,371,216
|
|
|
|
28,370,787
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per share attributable to common
stockholders, as reported
|
|
$
|
0.21
|
|
|
$
|
0.07
|
|
|
$
|
0.25
|
|
|
$
|
(0.61
|
)
|
Adjustments for net income from continuing operations per diluted
share2
|
|
|
-
|
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.71
|
|
Diluted net income per share from continuing operations
|
|
$
|
0.21
|
|
|
$
|
0.08
|
|
|
$
|
0.25
|
|
|
$
|
0.10
|
|
Adjustments for adjusted net income from continuing operations,
net of tax impact, per diluted share3
|
|
|
0.03
|
|
|
|
0.04
|
|
|
|
0.03
|
|
|
|
0.03
|
|
Diluted adjusted net income per share from continuing operations
|
|
$
|
0.23
|
|
|
$
|
0.11
|
|
|
$
|
0.28
|
|
|
$
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 A projected effective tax rate of 37.5% was applied to
the adjustments for consistency in presentation
|
|
2 Includes adjustments related to accretion charges on
Redeemable Preferred Stock and loss from discontinued operations,
net of income taxes
|
|
3 Includes adjustments related to share based
compensation expense, acquisition related expenses, expensed Initial
Public Offering costs and gain from put option on Redeemable
Preferred Stock
|
|
Per share figures in the above earnings per share calculation table may
reflect rounding adjustments and consequently totals may not appear to
sum.
The table below reconciles Adjusted EBITDA to the most directly
comparable GAAP financial measure, net income for the periods presented
therein.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP)
|
|
|
|
$
|
6,507
|
|
|
$
|
2,307
|
|
|
$
|
7,749
|
|
|
$
|
2,680
|
|
|
|
|
Interest expense
|
|
|
|
|
967
|
|
|
|
674
|
|
|
|
1,665
|
|
|
|
1,262
|
|
|
|
|
Provision for income taxes, continuing operations
|
|
|
|
|
3,720
|
|
|
|
1,483
|
|
|
|
4,743
|
|
|
|
1,833
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
5,351
|
|
|
|
3,677
|
|
|
|
9,640
|
|
|
|
7,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
|
16,545
|
|
|
|
8,141
|
|
|
|
23,797
|
|
|
|
12,787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related expenses
|
|
|
|
|
268
|
|
|
|
-
|
|
|
|
487
|
|
|
|
-
|
|
|
|
|
Share based compensation expense
|
|
|
|
|
856
|
|
|
|
300
|
|
|
|
958
|
|
|
|
300
|
|
|
|
|
IPO costs
|
|
|
|
|
-
|
|
|
|
1,259
|
|
|
|
-
|
|
|
|
1,335
|
|
|
|
|
Sarbanes-Oxley initial implementation
|
|
|
|
|
-
|
|
|
|
262
|
|
|
|
-
|
|
|
|
262
|
|
|
|
|
Gain from put option Redeemable Preferred Stock
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(490
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
17,669
|
|
|
$
|
9,962
|
|
|
$
|
25,242
|
|
|
$
|
14,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
|
|
|
11.1
|
%
|
|
|
7.9
|
%
|
|
|
8.7
|
%
|
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below reconciles Adjusted Gross Profit to the most directly
comparable GAAP financial measure, Gross Profit, for the periods
presented therein.
|
Reconciliation of GAAP to Non-GAAP Measures
|
Adjusted Gross Profit Calculations
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
|
46,282
|
|
|
$
|
34,809
|
|
|
$
|
80,408
|
|
|
$
|
61,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
3,690
|
|
|
|
2,828
|
|
|
|
7,030
|
|
|
|
5,336
|
|
Adjusted gross profit
|
|
$
|
49,972
|
|
|
$
|
37,637
|
|
|
$
|
87,438
|
|
|
$
|
66,550
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross profit margin
|
|
|
31.3
|
%
|
|
|
29.8
|
%
|
|
|
30.2
|
%
|
|
|
28.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150729005503/en/
Copyright Business Wire 2015