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IBP Installed Building Products Reports Record Third Quarter Results and Declares Regular Quarterly Cash Dividend November 4 , 2021 COLUMBUS , Ohio -- ( BUSINESS WIRE ) -- Nov . 4 , 2021-- Installed Building Products , Inc. ( the " Company " or " IBP " ) ( NYSE : IBP ) , an industry - leading installer of insulation and complementary building products , today announced results for the third quarter ended September 30 , 2021 , and also announced that its Board of Directors has approved the Company's fourth quarter cash dividend . Third Quarter 2021 Highlights ( Comparisons are to Prior Year Period ) • Net revenue increased 21.2 % to a record $ 509.8 million • Net income increased 24.3 % to $ 34.9 million • Adjusted EBITDA * increased 18.0 % to a record $ 78.1 million • Net income per diluted share increased 24.2 % to $ 1.18 • Adjusted net income per diluted share * increased 23.1 % to $ 1.49 • Supply chain disruptions had an estimated $ 2.0 million impact on gross profit in the third quarter , which reduced gross profit margin by approximately 40 basis points and lowered earnings by approximately $ 0.05 per diluted share • Price / mix growth increased 7.2 % during the third quarter • At September 30 , 2021 , IBP had $ 191.4million in cash , cash equivalents , and investments , and nothing drawn on its existing $ 200.0 million revolving line of credit • Declared third quarter regular cash dividend of $ 0.30 per share , and today announced the fourth quarter cash dividend of $ 0.30 per share " I am proud to report another quarter of record revenues and strong profitability as our team members remain focused on serving our customers and strategically growing our business , " stated Jeff Edwards , Chairman and Chief Executive Officer . " During the third quarter , we experienced double - digit sales growth year - over - year across our single - family , multi - family , and commercial end markets reflecting robust demand for our installation services , price increases , and the benefit of acquired residential and commercial revenue . " " During the third quarter , price / mix increased 7.2 % over the prior year period . This result reflects the highest increase in price / mix growth we have experienced in six quarters , which not only reflects the underlying demand for our installation services but also the hard work of our local branches to keep our pricing aligned with the value we offer . Unfortunately , industry wide supply chain issues continue to impact our operating efficiency , driving our costs higher . In order to meet customer demand during the quarter , we purchased materials from distributors and home centers at a premium to what we typically would purchase directly from manufacturers . Although supply chain disruptions have improved from prior quarters , purchases outside of typical supply chain channels had a gross margin impact of approximately $ 2.0 million . Demand remains strong but we anticipate supply chain disruptions will continue into 2022. We remain focused on working with our customers to offset higher costs . " " On October 18th , we issued our inaugural Environmental , Social , & Governance ( ESG ) report . Our primary insulation installation services are a critical component to improving energy efficiency and conservation in residential and commercial structures . Within our report , we've highlighted the meaningful impact insulation provides on single - family homes through energy savings and reductions in greenhouse gas emissions provided within local market building codes and additional detail of actual performance , as rated by our HERSⓇ rating business in Columbus Ohio . However , that is only part of the story . We have also provided further information regarding our internal initiatives on topics such as health and safety , reduction targets for our greenhouse gas emissions , and diversity , equality and inclusion efforts . " " I am pleased with our third quarter and year - to - date performance as our team continues to work tirelessly to respond to customer needs and support the growth of our business . As we enter the fourth quarter , we believe 2021 will be another record year for IBP and I am excited by the opportunities ahead in 2022 , " concluded Mr. Edwards . Acquisition Update IBP continues to prioritize profitable growth through its proven strategy of acquiring well - run installers of insulation and complementary building products . To date in 2021 , the Company has completed nine acquisitions representing approximately $ 130 million of annual revenues , surpassing IBP's $ 100 million acquired revenue target for this year . During the 2021 third quarter , IBP acquired Five Star Building Products , LLC and Five Star Building Products of Southern Utah , LLC ( " Five Star " ) . Five Star is a Salt Lake City , Provo , and Southern Utah based installer of fiberglass and garage doors for residential and multi - family customers , with annual revenue of approximately $ 25.0 million . IBP also acquired MT Insulation , LLC , a Hummelstown , Pennsylvania based installer of insulation and gutter services to residential and commercial customers , with annual revenue of approximately $ 4.0 million . Since the end of the third quarter , IBP has completed the following acquisitions : • In October 2021 , acquired Mr. Insulation Co. , a Hermiston , Oregon based installer of insulation , gutters , windows , and siding to single family , multi - family , and commercial customers , with annual revenue of approximately $ 2.8 million . • In November 2021 , acquired Denison Glass and Mirror , Inc. and DGM , LLC ( “ DGM ” ) . DGM , a Denison , Texas based installer of glass , mirrors , and related products into new commercial construction projects has annual revenue of approximately $ 20.0 million . Third Quarter 2021 Results Overview For the third quarter of 2021 , net revenue was a record $ 509.8 million , an increase of 21.2 % from $ 420.5 million in the third quarter of 2020. On a same branch basis , net revenue improved 11.2 % from the prior year quarter , which was attributable to a 4.6 % increase in the volume of jobs completed and a 7.2 % increase in price / mix during the quarter relative to the same period last year . Residential sales growth was 22.5 % and 14.5 % on a same branch basis in the quarter . Our commercial construction end - market net revenue increased 16.3 % for the third quarter of 2021 , the growth was largely driven by recent acquisitions as same branch sales declined 5.6 % primarily due to continued challenges associated with the COVID - 19 crisis . Same branch sales within our large commercial business experienced a modest decline of 1.1 % over the prior year period . Gross profit improved 18.4 % to $ 155.9 million from $ 131.6 million in the prior year quarter . Adjusted gross profit * as a percent of total revenue was 30.7 % which adjusts for the Company's share - based compensation expense , as well as directly related COVID - 19 expenses , compared to 31.4 % for the same period last year . Inflationary pressure contributed to the year - over - year margin compression as materials , particularly spray foam and several complementary installed products , continued to be difficult to source near volume and pricing levels secured in prior periods . Third quarter gross profit was reduced by an estimated $ 2.0 million due to supply chain disruptions that occurred during the quarter , which reduced gross profit margin by approximately 40 basis points and had the same impact to operating profit margin and adjusted EBITDA * margin . Selling and administrative expense , as a percent of net revenue , was 18.1 % compared to 18.8 % in the prior year quarter , the most favorable quarterly result since becoming a public company . Adjusted selling and administrative expense * , as a percent of net revenue , was 17.5 % compared to 18.0 % in the prior year quarter .