NOTE 1 – ORGANIZATION

Installed Building Products, Inc. (“IBP”), a Delaware corporation formed on October 28, 2011, and its wholly-owned subsidiaries and majority-owned subsidiary (collectively referred to as the “Company” and “we”, “us” and “our”), primarily install insulation, garage doors, rain gutters, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company operates in over 100 locations and its corporate office is located in Columbus, Ohio.

We have one operating segment and a single reportable segment. Substantially all of our sales come from service-based installation of various products in the residential new construction, residential repair and remodel and commercial construction end markets. Each of our branches has the capacity to serve all of our end markets. For the year ended December 31, 2016, residential new construction and repair and remodel was 88% of our net revenue and commercial construction was 12% of our net revenue. For the years ended December 31, 2015 and 2014, residential new construction and repair and remodel was 89% of our net revenue and commercial construction was 11% of our net revenue.

The following is a summary of the annual percentage of installation net revenue by product category:


	Years ended December 31,
	2016			2015			2014
Insulation		77	%		78	%		76	%
Garage doors		6			6			7
Shower doors, shelving and mirrors		5			5			6
Rain gutters		4			5			6
Other building products		8			6			5

		100	%		100	%		100	%

2014 Initial Public Offering (“IPO”)

On February 10, 2014, in anticipation of our IPO, we executed a 19.5-for-one stock split of our common stock, which consisted of approximately 1.1 million shares of common stock issued and outstanding immediately prior to the stock split. The effect of the stock split on outstanding shares and earnings per share has been retroactively applied to all periods presented. Following the split, we had approximately 22.0 million stock-split adjusted shares of common stock issued and outstanding.

On February 19, 2014, we completed an IPO of our common stock, which resulted in the sale of approximately 8.6 million shares. We received total proceeds from the IPO of approximately $94.2 million based upon the price of $11.00 per share. We used approximately $6.6 million of the proceeds from our IPO to pay underwriting fees, approximately $75.7 million to redeem our Series A Preferred Stock, $0.01 par value per share (the “Redeemable Preferred Stock”) and approximately $11.9 million to pay down our revolving credit facility. Our common stock is listed on The New York Stock Exchange under the symbol “IBP.”

2014 Secondary Public Offering

On June 17, 2014, we completed a secondary offering of approximately 9.3 million shares of our common stock at a public offering price of $12.50 per share. The total offering size reflects 8.1 million shares of common stock offered and sold on behalf of certain selling stockholders (the “Selling Stockholders”) and approximately 1.2 million shares that were offered and sold by us pursuant to the exercise of the underwriters’ option to purchase additional shares. We did not receive any proceeds from the sale of shares by the Selling Stockholders. However, we received approximately $14.4 million after deducting underwriting discounts but before estimated offering expenses payable by us, from the exercise of the underwriters’ option to purchase additional shares.