10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From _________ To ________

Commission File Number: 001-36307

Installed Building Products, Inc.

(Exact name of registrant as specified in its charter)

Delaware	45-3707650
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
495 South High Street, Suite 50
Columbus, Ohio	43215
(Address of principal executive offices)	(Zip Code)

(614) 221-3399

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)	Name of each exchange on which registered
Common Stock,	$0.01 par value per share	IBP	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by a check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b–2 of the Exchange Act). Yes ☐ No ☒

On April 28, 2022, the registrant had 29,295,555 shares of common stock, par value $0.01 per share, outstanding.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION	1
Item 1. Financial Statements	1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3. Quantitative and Qualitative Disclosures About Market Risk	34
Item 4. Controls and Procedures	35
PART II – OTHER INFORMATION	36
Item 1. Legal Proceedings	36
Item 1A. Risk Factors	36
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3. Defaults Upon Senior Securities	36
Item 4. Mine Safety Disclosures	36
Item 5. Other Information	36
Item 6. Exhibits	37
SIGNATURES	38

i

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

INSTALLED BUILDING PRODUCTS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except share and per share amounts)

	March 31,		December 31,
	2022		2021
ASSETS
Current assets
Cash and cash equivalents	$	217,434	$	333,485
Investments	49,980		—
Accounts receivable (less allowance for credit losses of $8,590 and $8,717 at March 31, 2022 and December 31, 2021, respectively)	345,586		312,767
Inventories	160,023		143,039
Prepaid expenses and other current assets	69,205		70,025
Total current assets	842,228		859,316
Property and equipment, net	107,817		105,933
Operating lease right-of-use assets	69,033		69,871
Goodwill	325,347		322,517
Customer relationships, net	173,868		178,264
Other intangibles, net	84,092		86,157
Other non-current assets	50,364		31,144
Total assets	$	1,652,749	$	1,653,202
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt	$	30,668	$	30,839
Current maturities of operating lease obligations	23,505		23,224
Current maturities of finance lease obligations	1,801		1,747
Accounts payable	150,643		132,705
Accrued compensation	56,639		50,964
Other current liabilities	64,272		68,090
Total current liabilities	327,528		307,569
Long-term debt	829,638		832,193
Operating lease obligations	45,091		46,075
Finance lease obligations	3,254		3,297
Deferred income taxes	11,242		4,819
Other long-term liabilities	45,765		42,409
Total liabilities	1,262,518		1,236,362
Commitments and contingencies (Note 16)
Stockholders’ equity
Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively	—		—
Common stock; $0.01 par value: 100,000,000 authorized, 33,351,843 and 33,271,659 issued and 29,275,592 and 29,706,401 shares outstanding at March 31, 2022 and December 31, 2021, respectively	334		333
Additional paid in capital	218,642		211,430
Retained earnings	350,475		352,543
Treasury stock; at cost: 4,076,251 and 3,565,258 shares at March 31, 2022 and December 31, 2021, respectively	(197,104)		(147,239)
Accumulated other comprehensive income (loss)	17,884		(227)
Total stockholders’ equity	390,231		416,840
Total liabilities and stockholders’ equity	$	1,652,749	$	1,653,202

1

See accompanying notes to consolidated financial statements

INSTALLED BUILDING PRODUCTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)

(in thousands, except share and per share amounts)

	Three months ended March 31,
	2022		2021
Net revenue	$	587,492	$	437,066
Cost of sales	415,089		311,639
Gross profit	172,403		125,427
Operating expenses
Selling	25,192		20,858
Administrative	79,144		65,077
Amortization	11,097		8,396
Operating income	56,970		31,096
Other expense, net
Interest expense, net	10,600		7,574
Other expense	145		81
Income before income taxes	46,225		23,441
Income tax provision	12,403		6,150
Net income	$	33,822	$	17,291
Other comprehensive income, net of tax:
Net change on cash flow hedges, net of tax provision of $6,430 and $3,428 for the three months ended March 31, 2022 and 2021, respectively	18,111		10,157
Comprehensive income	$	51,933	$	27,448
Earnings Per Share:
Basic	$	1.15	$	0.59
Diluted	$	1.14	$	0.58
Weighted average shares outstanding:
Basic	29,302,396		29,286,044
Diluted	29,580,731		29,613,484
Cash dividends declared per share	$	1.22	$	0.30

2

See accompanying notes to consolidated financial statements

INSTALLED BUILDING PRODUCTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND MARCH 31, 2022

(in thousands, except share amounts)

	Common Stock			Additional Paid In Capital		Retained Earnings		Treasury Stock			Accumulated  Other Comprehensive Income (Loss)		Stockholders’ Equity
	Shares	Amount						Shares	Amount
BALANCE - January 1, 2021	33,141,879	$	331	$	199,847	$	269,420	(3,518,607)	$	(141,653)	$	(8,763)	$	319,182
Net income						17,291							17,291
Issuance of common stock awards to employees	66,203	—											—
Surrender of common stock awards								(274)	—				—
Share-based compensation expense				2,713									2,713
Share-based compensation issued to directors				102									102
Dividend declared ($0.30 per share)						(8,907)							(8,907)
Other comprehensive income, net of tax											10,157		10,157
BALANCE - March 31, 2021	33,208,082	$	331	$	202,662	$	277,804	(3,518,881)	$	(141,653)	$	1,394	$	340,538
	Common Stock			Additional Paid In Capital		Retained Earnings		Treasury Stock			Accumulated Other Comprehensive Income (Loss)		Stockholders’ Equity
	Shares	Amount						Shares	Amount
BALANCE - January 1, 2022	33,271,659	$	333	$	211,430	$	352,543	(3,565,258)	$	(147,239)	$	(227)	$	416,840
Net income						33,822							33,822
Issuance of common stock awards to employees	40,980	1		(1)									—
Surrender of common stock awards								(50)	—				—
Share-based compensation expense				3,089									3,089
Share-based compensation issued to directors				124									124
Issuance of awards previously classified as liability awards	39,204			4,000									4,000
Dividends Declared ($1.22 per Share)						(35,890)							(35,890)
Common stock repurchase								(510,943)	(49,865)				(49,865)
Other comprehensive income, net of tax											18,111		18,111
BALANCE - March 31, 2022	33,351,843	$	334	$	218,642	$	350,475	(4,076,251)	$	(197,104)	$	17,884	$	390,231

3

See accompanying notes to consolidated financial statements

INSTALLED BUILDING PRODUCTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)

	Three months ended March 31,
	2022		2021
Cash flows from operating activities
Net income	$	33,822	$	17,291
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization of property and equipment	11,329		10,663
Amortization of operating lease right-of-use assets	6,371		5,050
Amortization of intangibles	11,097		8,396
Amortization of deferred financing costs and debt discount	484		331
Provision for credit losses	653		127
Gain on sale of property and equipment	(92)		(252)
Noncash stock compensation	3,418		3,196
Amortization of terminated interest rate swap	790		798
Changes in assets and liabilities, excluding effects of acquisitions
Accounts receivable	(32,700)		1,056
Inventories	(16,300)		(7,644)
Other assets	169		(1,794)
Accounts payable	16,486		524
Income taxes receivable/payable	11,433		4,633
Other liabilities	1,265		(4,757)
Net cash provided by operating activities	48,225		37,618
Cash flows from investing activities
Purchases of investments	(49,957)		—
Purchases of property and equipment	(10,362)		(10,846)
Acquisitions of businesses, net of cash acquired of $0 and $168 in 2022 and 2021, respectively	(8,050)		(41,930)
Proceeds from sale of property and equipment	265		389
Other	(614)		(5)
Net cash used in investing activities	(68,718)		(52,392)
Cash flows from financing activities
Payments on Term Loan	(1,250)		—
Proceeds from vehicle and equipment notes payable	4,752		7,808
Debt issuance costs	(627)		—
Principal payments on long-term debt	(6,618)		(6,481)
Principal payments on finance lease obligations	(521)		(530)
Dividends paid	(35,426)		(8,786)
Acquisition-related obligations	(6,003)		(1,414)
Repurchase of common stock	(49,865)		—
Net cash used in financing activities	(95,558)		(9,403)
Net change in cash and cash equivalents	(116,051)		(24,177)
Cash and cash equivalents at beginning of period	333,485		231,520
Cash and cash equivalents at end of period	$	217,434	$	207,343
Supplemental disclosures of cash flow information
Net cash paid during the period for:
Interest	$	14,293	$	10,839
Income taxes, net of refunds	1,088		1,474
Supplemental disclosure of noncash activities
Right-of-use assets obtained in exchange for operating lease obligations	5,514		5,679
Property and equipment obtained in exchange for finance lease obligations	544		268
Seller obligations in connection with acquisition of businesses	1,878		5,959
Unpaid purchases of property and equipment included in accounts payable	1,884		1,043

4

See accompanying notes to consolidated financial statements

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1 - ORGANIZATION

Installed Building Products (“IBP”), a Delaware corporation formed on October 28, 2011, and its wholly-owned subsidiaries (collectively referred to as the “Company,” and “we,” “us” and “our”) primarily install insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company operates in more than 210 locations and its corporate office is located in Columbus, Ohio.

In the first quarter of 2022, we realigned our operating segments to reflect recent changes in our business. We have three operating segments consisting of our Installation, Manufacturing and Distribution operations. The Installation operating segment is also our one reportable segment. See Note 10, Information on Segments, for further information.

Substantially all of our Installation segment sales are derived from the service-based installation of various products in the residential new construction, repair and remodel and commercial construction end markets from our national network of branch locations. Each of our Installation branches has the capacity to serve all of our end markets. See Note 3, Revenue Recognition, for information on our revenues by product and end market.

The COVID-19 pandemic ("COVID-19") has caused significant volatility, uncertainty and economic disruption. Public health organizations and international, federal, state and local governments responded by implementing measures during various points of the pandemic to contain the spread of COVID-19. We do not believe the various orders and restrictions significantly impacted our business in the first three months of 2022. However, COVID-19 has caused disruptions in the building products supply chain, impacting our ability to purchase certain materials we install through typical channels and fueling producer price and consumer inflation. The extent to which COVID-19 will impact our future growth, operations, customers, suppliers, employees and financial results is uncertain. The future impact on our financial results will depend on numerous factors including government actions and the resulting impact on construction activity, the effect on our customers’ demand for our services, the effects on our supply chain for materials, and the ability of our customers to pay for our services.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements include all of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated.

The information furnished in the Condensed Consolidated Financial Statements includes normal recurring adjustments and reflects all adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations and statements of financial position for the interim periods presented. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) have been omitted pursuant to such rules and regulations. We believe that the disclosures are adequate to prevent the information presented from being misleading when read in conjunction with our audited consolidated financial statements and the notes thereto included in Part II, Item 8, Financial Statements and Supplementary Data, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the “2021 Form 10-K”), as filed with the SEC on February 24, 2022. The December 31, 2021 Condensed Consolidated Balance Sheet data herein was derived from the audited consolidated financial statements but does not include all disclosures required by U.S. GAAP.

Our interim operating results for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected in future operating quarters.

Note 2 to the audited consolidated financial statements in our 2021 Form 10-K describes the significant accounting policies and estimates used in preparation of the audited consolidated financial statements. Other than the recently implemented accounting policies described below, there have been no changes to our significant accounting policies during the three months ended March 31, 2022.

5

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Reclassifications

The change in reportable segments described in Note 1, Organization and Note 10, Information on Segments, requires certain prior year disclosures in Note 3, Revenue Recognition and Note 6, Goodwill and Intangibles to be recast to conform to the current year presentation.

Recently Issued Accounting Pronouncements Not Yet Adopted

We are currently evaluating the impact of the following Accounting Standards Update ("ASU") on our Condensed Consolidated Financial Statements or Notes to Condensed Consolidated Financial Statements:

Standard	Description	Effective Date	Effect on the financial statements or other significant matters
ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers	This pronouncement amends Topic 805 to require an acquirer to account for revenue contracts in a business combination in accordance with Topic 606 as if the acquirer had originated the contracts.	Annual periods beginning after December 15, 2022, including interim periods therein. Early adoption is permitted.	We are currently assessing the impact of adoption on our consolidated financial statements.

NOTE 3 - REVENUE RECOGNITION

Revenues for our Installation operating segment are derived primarily through contracts with customers whereby we install insulation and other complementary building products and are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We offer assurance-type warranties on certain of our installed products and services that do not represent a separate performance obligation and, as such, do not impact the timing or extent of revenue recognition.

For contracts that are not complete at the reporting date, we recognize revenue over time utilizing a cost-to-cost input method as we believe this represents the best measure of when goods and services are transferred to the customer. When this method is used, we estimate the costs to complete individual contracts and record as revenue that portion of the total contract price that is considered complete based on the relationship of costs incurred to date to total anticipated costs. Under the cost-to-cost method, the use of estimated costs to complete each contract is a significant variable in the process of determining recognized revenue, requires judgment and can change throughout the duration of a contract due to contract modifications and other factors impacting job completion. The costs of earned revenue include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools and repairs. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined.

Our long-term contracts can be subject to modification to account for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Most of our contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis.

Payment terms typically do not exceed 30 days for short-term contracts and typically do not exceed 60 days for long-term contracts with customers. All contracts are billed either contractually or as work is performed. Billing on our long-term contracts occurs primarily on a monthly basis throughout the contract period whereby we submit invoices for customer payment based on actual or estimated costs incurred during the billing period. On certain of our long-term contracts the customer may withhold payment on an invoice equal to a percentage of the invoice amount, which will be subsequently paid after satisfactory completion of each installation project. This amount is referred to as retainage and is common practice in the construction industry, as it allows for customers to ensure the quality of the service performed prior to full payment. Retainage receivables are classified as current or long-term assets based on the expected time to project completion.

6

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Revenues for our Distribution and Manufacturing operating segments included in the Other category are accounted for on a point-in-time basis when the sale occurs, adjusted accordingly for any return provisions. Sales taxes are not included in revenue as we act as a conduit for collecting and remitting sales taxes to the appropriate government authorities. The point-in-time recognition is when we transfer the promised products to the customer and the customer obtains control of the products depending upon the agreed upon terms in the contract.

We disaggregate our revenue from contracts with customers for our Installation segment by end market and product, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenues for the Other category are presented net of intercompany sales in the tables below. The following tables present our net revenues disaggregated by end market and product (in thousands):

	Three months ended March 31,
	2022				2021
Installation:
Residential new construction	$	442,404	75	%	$	327,244	75	%
Repair and remodel	32,641		6	%	28,289		6	%
Commercial	86,586		15	%	76,645		18	%
Net revenue, Installation	$	561,631	96	%	$	432,178	99	%
Other (1)	25,861		4	%	4,888		1	%
Net revenue, as reported	$	587,492	100	%	$	437,066	100	%

	Three months ended March 31,
	2022				2021
Installation:
Insulation	$	364,943	63	%	$	278,568	63	%
Waterproofing	29,022		5	%	29,949		7	%
Shower doors, shelving and mirrors	36,340		6	%	31,433		7	%
Garage doors	35,979		6	%	24,439		6	%
Rain gutters	23,546		4	%	19,003		4	%
Fireproofing/firestopping	15,922		3	%	12,435		3	%
Window blinds	13,058		2	%	11,534		3	%
Other building products	42,821		7	%	24,817		6	%
Net revenue, Installation	$	561,631	96	%	$	432,178	99	%
Other (1)	25,861		4	%	4,888		1	%
Net revenue, as reported	$	587,492	100	%	$	437,066	100	%

(1) Net revenue for manufacturing operations are included in the Other category for all periods presented to conform with our change in composition of operating segments.

Contract Assets and Liabilities

Our contract assets consist of unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized, based on costs incurred, exceeds the amount billed to the customer. Our contract assets are recorded in other current assets in our Condensed Consolidated Balance Sheets. Our contract liabilities consist of customer deposits and billings in excess of revenue recognized, based on costs incurred and are included in other current liabilities in our Condensed Consolidated Balance Sheets.

Contract assets and liabilities related to our uncompleted contracts and customer deposits were as follows (in thousands):

	March 31, 2022		December 31, 2021
Contract assets	$	40,160	$	32,679
Contract liabilities	(14,756)		(14,153)

7

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Uncompleted contracts were as follows (in thousands):

	March 31, 2022		December 31, 2021
Costs incurred on uncompleted contracts	$	222,594	$	206,050
Estimated earnings	103,461		106,163
Total	326,055		312,213
Less: Billings to date	292,445		285,978
Net under billings	$	33,610	$	26,235

Net under billings were as follows (in thousands):

	March 31, 2022		December 31, 2021
Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets)	$	40,160	$	32,679
Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities)	(6,550)		(6,444)
Net under billings	$	33,610	$	26,235

The difference between contract assets and contract liabilities as of March 31, 2022 compared to December 31, 2021 is primarily the result of timing differences between our performance of obligations under contracts and customer payments. During the three months ended March 31, 2022, we recognized $10.4 million of revenue that was included in the contract liability balance at December 31, 2021. We did not recognize any impairment losses on our receivables and contract assets during the three months ended March 31, 2022 or 2021.

Remaining performance obligations represent the transaction price of contracts for which work has not been performed and excludes unexercised contract options and potential modifications. As of March 31, 2022, the aggregate amount of the transaction price allocated to remaining uncompleted contracts was $177.7 million. We expect to satisfy remaining performance obligations and recognize revenue on substantially all of these uncompleted contracts over the next 18 months.

Practical Expedients and Exemptions

We generally expense sales commissions and other incremental costs of obtaining a contract when incurred because the amortization period is usually one year or less. Sales commissions are recorded within selling expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income.

We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

NOTE 4 - CREDIT LOSSES

Our expected loss allowance methodology for accounts receivable is developed using historical losses, current economic conditions and future market forecasts. We also perform ongoing evaluations of our existing and potential customer’s creditworthiness.

Changes in our allowance for credit losses were as follows (in thousands):

Balance as of January 1, 2022	$	8,717
Current period provision	653
Recoveries collected and additions	89
Amounts written off	(869)
Balance as of March 31, 2022	$	8,590

NOTE 5 - INVESTMENTS AND CASH AND CASH EQUIVALENTS

Cash and cash equivalents include highly liquid instruments with insignificant interest rate risk and original or remaining maturities of three months or less at the time of purchase. These instruments amounted to approximately $201.1 million and

8

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

$258.1 million as of March 31, 2022 and December 31, 2021, respectively. See Note 9, Fair Value Measurements, for additional information.

All other investments are classified as held-to-maturity and consist of highly liquid instruments, including commercial paper. As of March 31, 2022, the amortized cost of these investments equaled the net carrying value, which was approximately 50.0 million. All held-to-maturity securities as of March 31, 2022 mature in one year or less. We held no such investments as of December 31, 2021. See Note 9, Fair Value Measurements, for additional information.

NOTE 6 - GOODWILL AND INTANGIBLES

We anticipate that the COVID-19 pandemic could continue to have an impact on the homebuilding industry in general, as it could result in further business interruptions (government-mandated or otherwise) and could affect, among other factors, inflation, interest rates, employment levels, consumer spending and consumer confidence, which could decrease demand for homes, adversely affecting our business. As such, we considered whether impairment indicators arose through the date of filing of this Quarterly Report on Form 10-Q for our goodwill, long-lived assets and other intangible assets and concluded that no such factors existed to cause us to test for goodwill impairment during the three months ended March 31, 2022. While we ultimately concluded that our goodwill, long-lived assets and other intangibles assets were not impaired as of March 31, 2022, we will continue to assess impairment indicators related to the impact of the COVID-19 pandemic on our business.

Goodwill

In the first quarter of 2022, we changed our reporting units to align with our change in operating and reportable segments. See Note 10, Information on Segments, for details about our change in segment structure. Effective January 1, 2022, our Installation reporting unit is comprised of our Installation operating and reportable segment, and our Other category is comprised of our Manufacturing and Distribution operating segments which are also reporting units. All three reporting units contain goodwill and were previously combined and recorded as a single operating and reportable segment as of December 31, 2021.

The change in carrying amount of goodwill was as follows (in thousands):

	Installation		Other		Consolidated
Goodwill (gross) - January 1, 2022, after change in reporting units	$	331,782	$	60,739	$	392,521
Business combinations	2,830		—		2,830
Goodwill (gross) - March 31, 2022	334,612		60,739		395,351
Accumulated impairment losses	(70,004)		—		(70,004)
Goodwill (net) - March 31, 2022	$	264,608	$	60,739	$	325,347

For additional information regarding changes to goodwill resulting from acquisitions, see Note 17, Business Combinations.

We test goodwill for impairment annually during the fourth quarter of our fiscal year or earlier if there is an impairment indicator. Accumulated impairment losses included within the above table were incurred over multiple periods and were all associated with the Installation segment, with the latest impairment charge being recorded during the year ended December 31, 2010.

9

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Intangibles, net

The following table provides the gross carrying amount, accumulated amortization and net book value for each major class of intangibles (in thousands):

	As of March 31,						As of December 31,
	2022						2021
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Amortized intangibles:
Customer relationships	$	295,239	$	121,371	$	173,868	$	292,113	$	113,849	$	178,264
Covenants not-to-compete	28,091		17,357		10,734		27,717		16,471		11,246
Trademarks and tradenames	104,142		34,248		69,894		103,007		32,623		70,384
Backlog	23,725		20,261		3,464		23,724		19,197		4,527
	$	451,197	$	193,237	$	257,960	$	446,561	$	182,140	$	264,421

The gross carrying amount of intangibles increased approximately $4.6 million during the three months ended March 31, 2022 primarily due to business combinations. For more information, see Note 17, Business Combinations. Remaining estimated aggregate annual amortization expense is as follows (amounts, in thousands, are for the fiscal year ended):

Remainder of 2022	$	31,315
2023	38,042
2024	34,122
2025	27,800
2026	23,842
Thereafter	102,839

NOTE 7 - LONG-TERM DEBT

Long-term debt consisted of the following (in thousands):

	As of March 31,		As of December 31,
	2022		2021
Senior Notes due 2028, net of unamortized debt issuance costs of $3,484 and $3,633, respectively	$	296,516	$	296,367
Term loan, net of unamortized debt issuance costs of $6,495 and $6,735, respectively	492,255		493,265
Vehicle and equipment notes, maturing through March 2027; payable in various monthly installments, including interest rates ranging from 1.9% to 4.8%	67,363		69,228
Various notes payable, maturing through March 2025; payable in various monthly installments, including interest rates ranging from 1.0% to 5.0%	4,172		4,172
	860,306		863,032
Less: current maturities	(30,668)		(30,839)
Long-term debt, less current maturities	$	829,638	$	832,193

10

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Remaining required repayments of debt principal, gross of unamortized debt issuance costs, as of March 31, 2022 are as follows (in thousands):

Remainder of 2022	$	23,783
2023	25,722
2024	20,012
2025	16,560
2026	9,017
Thereafter	775,191

Asset-Based Lending Credit Agreement Amendment

In February 2022, we amended and extended the term of our asset-based lending credit agreement (the “ABL Credit Agreement”). The ABL Credit Agreement increased the commitment under the asset-based lending credit facility (the “ABL Revolver”) to $250.0 million from $200.0 million, and permits us to further increase the commitment amount up to $300.0 million. The amendment also extends the maturity date from September 26, 2024 to February 17, 2027. The ABL Revolver bears interest at either the base rate or the Secured Overnight Financing Rate ("Term SOFR"), at our election, plus a margin of 0.25% or 0.50% in the case of base rate loans or 1.25% or 1.50% for Term SOFR advances (in each case based on a measure of availability under the ABL Credit Agreement). The amendment also allows for modification of specified fees dependent upon achieving certain sustainability targets, in addition to making other modifications to the ABL Credit Agreement. Including outstanding letters of credit, our remaining availability under the ABL Revolver as of March 31, 2022 was $205.7 million.

All of the obligations under the ABL Revolver are guaranteed by all of the Company’s existing restricted subsidiaries and will be guaranteed by the Company’s future restricted subsidiaries. Additionally, all obligations under the ABL Revolver, and the guarantees of those obligations, are secured by substantially all of the assets of the Company and the guarantors, subject to certain exceptions and permitted liens, including a first-priority security interest in such assets that constitute ABL Priority Collateral, as defined in the ABL Credit Agreement.

The ABL Revolver provides incremental revolving credit facility commitments of up to $50.0 million. The terms and conditions of any incremental revolving credit facility commitments must be no more favorable than the terms of the ABL Revolver. The ABL Revolver also allows for the issuance of letters of credit of up to $100.0 million in aggregate and borrowing of swingline loans of up to $25.0 million in aggregate.

The ABL Credit Agreement contains a financial covenant requiring the satisfaction of a minimum fixed charge coverage ratio of 1.0x in the event that we do not meet a minimum measure of availability under the ABL Revolver. The ABL Credit Agreement and the Term Loan Agreement contain restrictive covenants that, among other things, limit the ability of the Company and certain of our subsidiaries (subject to certain exceptions) to: (i) incur additional debt and issue preferred stock; (ii) pay dividends on, redeem or repurchase stock in an aggregate amount exceeding the greater of 2.0% of market capitalization per fiscal year or certain applicable restricted payment basket amounts; (iii) prepay subordinated debt; (iv) create liens; (v) make specified types of investments; (vi) apply net proceeds from certain asset sales; (vii) engage in transactions with affiliates; (viii) merge, consolidate or sell substantially all of our assets; and (ix) pay dividends and make other distributions from subsidiaries.

NOTE 8 - LEASES

We lease various assets in the ordinary course of business as follows: warehouses to store our materials and perform staging activities for certain products we install, various office spaces for selling and administrative activities to support our business, and certain vehicles and equipment to facilitate our operations, including, but not limited to, trucks, forklifts and office equipment.

11

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets:

		As of March 31,			As of December 31,
(in thousands)	Classification	2022			2021
Assets
Non-Current
Operating	Operating lease right-of-use assets	$	69,033		$	69,871
Finance	Property and equipment, net	5,218			5,266
Total lease assets		$	74,251		$	75,137
Liabilities
Current
Operating	Current maturities of operating lease obligations	$	23,505		$	23,224
Financing	Current maturities of finance lease obligations	1,801			1,747
Non-Current
Operating	Operating lease obligations	45,091			46,075
Financing	Finance lease obligations	3,254			3,297
Total lease liabilities		$	73,651		$	74,343
Weighted-average remaining lease term:
Operating leases		4.2 years			4.3 years
Finance leases		3.4 years			3.3 years
Weighted-average discount rate:
Operating leases		3.47		%	3.38		%
Finance leases		4.91		%	4.96		%

Lease Costs

The table below presents certain information related to the lease costs for finance and operating leases:

		Three months ended March 31,
(in thousands)	Classification	2022		2021
Operating lease cost(1)	Administrative	$	7,759	$	6,350
Finance lease cost
Amortization of leased assets(2)	Cost of sales	716		792
Interest on finance lease obligations	Interest expense, net	61		55
Total lease costs		$	8,536	$	7,197

(1)Includes variable lease costs of $0.9 million and $0.7 million for the three months ended March 31, 2022 and 2021, respectively, and short-term lease costs of $0.3 million for both the three months ended March 31, 2022 and 2021, respectively.

(2)Includes variable lease costs of $0.2 million for each of the three months ended March 31, 2022 and 2021 .

Other Information

The table below presents supplemental cash flow information related to leases (in thousands):

	Three months ended March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	6,463	$	5,324
Operating cash flows for finance leases	61		55
Financing cash flows for finance leases	521		530

12

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet as of March 31, 2022 (in thousands):

	Finance Leases		Operating Leases
			Related Party		Other		Total Operating
Remainder of 2022	$	1,548	$	1,080	$	18,498	$	19,578
2023	1,559		1,001		19,602		20,603
2024	1,152		743		12,234		12,977
2025	784		610		7,371		7,981
2026	453		—		5,454		5,454
Thereafter	15		—		7,596		7,596
Total minimum lease payments	5,511		$	3,434	$	70,755	74,189
Less: Amounts representing executory costs	(20)						—
Less: Amounts representing interest	(436)						(5,593)
Present value of future minimum lease payments	5,055						68,596
Less: Current obligation under leases	(1,801)						(23,505)
Long-term lease obligations	$	3,254					$	45,091

NOTE 9 - FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. During the periods presented, there were no transfers between fair value hierarchical levels.

Assets Measured at Fair Value on a Nonrecurring Basis

Certain assets, specifically other intangible and long-lived assets, are measured at fair value on a nonrecurring basis in periods subsequent to initial recognition. Assets measured at fair value on a nonrecurring basis as of March 31, 2022 and December 31, 2021 are categorized based on the lowest level of significant input to the valuation. The assets are measured at fair value when our impairment assessment indicates a carrying value for each of the assets in excess of the asset’s estimated fair value. Undiscounted cash flows, a Level 3 input, are utilized in determining estimated fair values. During each of the three months ended March 31, 2022 and 2021, we did not record any impairments on these assets required to be measured at fair value on a nonrecurring basis.

Estimated Fair Value of Financial Instruments

Accounts receivable, accounts payable and accrued liabilities as of March 31, 2022 and December 31, 2021 approximate fair value due to the short-term maturities of these financial instruments. The carrying amounts of certain long-term debt, including the Term Loan and ABL Revolver as of March 31, 2022 and December 31, 2021, approximate fair value due to the variable rate nature of the agreements. The carrying amounts of our operating lease right-of-use assets and the obligations associated with our operating and finance leases as well as our vehicle and equipment notes approximate fair value as of March 31, 2022 and December 31, 2021. All debt classifications represent Level 2 fair value measurements.

Derivative financial instruments are measured at fair value based on observable market information and appropriate valuation methods. Contingent consideration liabilities arise from future earnout payments to the sellers associated with certain acquisitions and are based on predetermined calculations of certain future results. These future payments are estimated by considering various factors, including business risk and projections. The contingent consideration liabilities are measured at fair value by discounting estimated future payments, calculated based on a weighted average of various future forecast scenarios, to their net present value.

13

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The fair values of financial assets and liabilities that are recorded at fair value in the Condensed Consolidated Balance Sheets and not described above were as follows (in thousands):

	As of March 31, 2022								As of December 31, 2021
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Financial assets:
Cash equivalents	$	201,112	$	201,112	$	—	$	—	$	258,055	$	258,055	$	—	$	—
Derivative financial instruments	36,644		—		36,644		—		14,830		—		14,830		—
Total financial assets	$	237,756	$	201,112	$	36,644	$	—	$	272,885	$	258,055	$	14,830	$	—
Financial liabilities:
Contingent consideration	$	6,160	$	—	$	—	$	6,160	$	11,170	$	—	$	—	$	11,170
Derivative financial instruments	—		—		—		—		1,937		—		1,937		—
Total financial liabilities	$	6,160	$	—	$	—	$	6,160	$	13,107	$	—	$	1,937	$	11,170

See Note 5, Investments and Cash and Cash Equivalents, for more information on cash equivalents included in the table above. Also see Note 11, Derivatives and Hedging Activities, for more information on derivative financial instruments.

The change in fair value of the contingent consideration (a Level 3 input) was as follows (in thousands):

Contingent consideration liability - January 1, 2022	$	11,170
Preliminary purchase price	910
Fair value adjustments	(46)
Accretion in value	116
Settlement adjustments	(505)
Amounts paid to sellers	(5,485)
Contingent consideration liability - March 31, 2022	$	6,160

The accretion in value of contingent consideration liabilities is included within administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income.

The carrying value and associated fair value of financial assets and liabilities that are not recorded at fair value in the Condensed Consolidated Balance Sheets and not described above include our investments and Senior Notes. To estimate the fair value of our investments and Senior Notes, we utilized third-party quotes which are derived all or in part from model prices, external sources or market prices. The investments and Senior Notes represent a Level 2 fair value measurement and are as follows (in thousands):

	As of March 31, 2022				As of December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Investments	$	49,980	$	49,927	$	—	$	—
Senior Notes(1)	300,000		293,145		300,000		311,028

(1)Excludes the impact of unamortized debt issuance costs.

See Note 5, Investments and Cash and Cash Equivalents, for more information on investments included in the table above. Also see Note 7, Long-Term Debt, for more information on our Senior Notes.

NOTE 10 - INFORMATION ON SEGMENTS

During the first quarter of 2022, our Chief Executive Officer, who is also our Chief Operating Decision Maker ("CODM"), changed the manner in which he reviews financial information for purposes of assessing business performance, managing the business and allocating resources. In conjunction with this change, we realigned our segment structure resulting in our Company having three operating segments consisting of Installation, Distribution and Manufacturing.

14

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Our Installation operating segment represents the majority of our net revenue and gross profit and forms our one reportable segment. This operating segment represents the service-based installation of insulation and complementary building products in the residential new construction, repair and remodel and commercial construction end markets from our national network of branch locations. These branch locations have similar economic and operating characteristics including the nature of products and services offered, operating procedures and risks, customer bases, employee incentives, material procurement and shared corporate resources which led us to conclude that they combine to form one operating segment.

The Other category reported below reflects the operations of our two remaining operating segments, Distribution and Manufacturing, which do not meet the quantitative thresholds for separate reporting. Our Distribution operating segment includes our recently acquired distribution business that sells insulation and accessories primarily to installers of these products who operate in multiple end markets. Our Manufacturing operating segment consists of our cellulose insulation manufacturing operation which was previously combined with our Installation operating segment. In addition to sales of cellulose insulation, revenues from this operating segment consist of sales of asphalt and industrial fibers to distributors and installers of these products.

The key metrics used to assess the performance of our operating segments are revenue and adjusted gross profit as these are the metrics used by our CODM to review results, assess performance and allocate resources. We define adjusted gross profit as revenue less cost of sales, excluding depreciation and amortization. We do not report total assets or related depreciation and amortization expenses by segment because our CODM does not use this information to assess segment performance or allocate resources.

The Installation reportable segment includes substantially all of our net revenue from services while net revenue included in the Other category includes substantially all of our net revenue from sales of products. The intercompany sales from the Other category to the Installation reportable segment include a profit margin while our Installation segment records these transactions at cost.

The following table represents our segment information for the three months ended March 31, 2022 (in thousands):

	Installation		Other		Eliminations		Consolidated
Revenue	$	561,631	$	26,650	$	(789)	$	587,492
Cost of sales (exclusive of depreciation and amortization shown separately below)	385,692		19,373		(609)		404,456
Adjusted gross profit	175,939		7,277		(180)		183,036
Depreciation and amortization							10,633
Gross profit, as reported							172,403
Selling							25,192
Administrative							79,144
Amortization							11,097
Operating income							56,970
Interest expense, net							10,600
Other expense							145
Income before income taxes							$	46,225

15

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table represents our segment information for the three months ended March 31, 2021 (in thousands):

	Installation		Other		Eliminations		Consolidated
Revenue	$	432,178	$	5,253	$	(365)	$	437,066
Cost of sales (exclusive of depreciation and amortization shown separately below)	297,832		4,067		(283)		301,616
Adjusted gross profit	134,346		1,186		(82)		135,450
Depreciation and amortization							10,023
Gross profit, as reported							125,427
Selling							20,858
Administrative							65,077
Amortization							8,396
Operating income							31,096
Interest expense, net							7,574
Other expense							81
Income before income taxes							$	23,441

The prior period disclosures in the above table have been recast to conform to the current period segment presentation.

NOTE 11 - DERIVATIVES AND HEDGING ACTIVITIES

Cash Flow Hedges of Interest Rate Risk

Our purpose for using interest rate derivatives is to add stability to interest expense and to manage our exposure to interest rate movements. During the three months ended March 31, 2022, we used interest rate swaps to hedge the variable cash flows associated with existing variable-rate debt. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. We do not use derivatives for trading or speculative purposes and we currently do not have any derivatives that are not designated as hedges. As of March 31, 2022, we have not posted any collateral related to these agreements.

As of March 31, 2022, we had three interest rate swaps. One interest rate swap began July 30, 2021 and has a fixed notional amount of $200.0 million, a fixed rate of 0.51% and a maturity date of April 15, 2030. We also had two interest rate swaps that began December 31, 2021, each with a fixed notional amount of $100.0 million, a fixed rate of 1.37%, and a maturity date of December 15, 2028. Together, these three swaps serve to hedge $400.0 million of the variable cash flows on our variable rate Term Loan through maturity. The assets and liabilities associated with these interest rate swaps are included in other non-current assets and other current liabilities on the Consolidated Balance Sheets at their fair value amounts as described in Note 9, Fair Value Measurements.

In August 2020, we terminated two then-existing interest rate swaps and one then-existing forward interest rate swap. During both the three months ended March 31, 2022 and 2021 we amortized $0.8 million of the $17.8 million unrealized loss existing at the time of termination to interest expense, net.

The changes in the fair value of derivatives designated, and that qualify, as cash flow hedges are recorded in other comprehensive income, net of tax on the Condensed Consolidated Statements of Operations and Comprehensive Income and in accumulated other comprehensive income (loss) on the Condensed Consolidated Balance Sheets and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. We had no such changes during the three months ended March 31, 2021 or 2022.

Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense, net as interest payments are made on our variable-rate debt and as terminated swaps are amortized. Over the next twelve months, we estimate that an additional $0.6 million will be reclassified as an increase to interest expense, net.

LIBOR is used as a reference rate for our interest rate swap agreements we use to hedge our interest rate exposure. The Intercontinental Exchange Benchmark Administration, the administrator of LIBOR, announced in March 2021 its intention to extend the publication of certain LIBOR settings, including the setting we use as a reference rate, to June 2023. In January

16

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

2020, the FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848) and in January 2021, the FASB subsequently issued ASU 2021-01, Reference Rate Reform - Scope, which clarified the scope and application of the original guidance. The purpose of this guidance is to provide relief for impacted areas as it relates to impending reference rate reform. We elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation.

NOTE 12 - STOCKHOLDERS’ EQUITY

As of March 31, 2022 we had income of $17.9 million in accumulated other comprehensive income (loss) on our Condensed Consolidated Balance Sheets, comprised of the effective portion of the unrealized gain on our current interest rate swap of 27.2 million, net of taxes, less the unrealized loss on our terminated interest rate swaps of $(9.3) million, net of taxes. As of December 31, 2021 we had a loss of $(0.2) million in accumulated other comprehensive income (loss) on our Condensed Consolidated Balance Sheets, comprised of the unrealized loss on our terminated interest rate swaps of $(9.9) million, net of taxes, less the effective portion of the unrealized gain on our interest rate swaps of $9.7 million, net of taxes. For additional information, see Note 11, Derivatives and Hedging Activities.

During the three months ended March 31, 2022 we repurchased approximately 511 thousand shares of our common stock with an aggregate price of approximately $49.9 million, or $97.57 average price per share. We did not repurchase any shares during the three months ended March 31, 2021. On February 24, 2022, we announced that our board of directors authorized an extension of our stock repurchase program through March 1, 2023 and concurrently authorized an increase in the total amount of our outstanding common stock we can purchase up to $200.0 million. As of March 31, 2022, we have $150.1 million remaining on our current stock repurchase program. The effect of these treasury shares in reducing the number of common shares outstanding is reflected in our earnings per share calculation.

Dividends

During the three months ended March 31, 2022, we declared and paid the following cash dividends (amount declared and amount paid in thousands):

Declaration Date	Record Date	Payment Date	Dividend Per Share		Amount Declared		Amount Paid
2/24/2022	3/15/2022	3/31/2021	$	0.90	$	26,585	$	26,242
2/24/2022	3/15/2022	3/31/2021	0.315		9,305		9,184

During the three months ended March 31, 2021, we declared and paid the following cash dividends (amount declared and amount paid in thousands):

Declaration Date	Record Date	Payment Date	Dividend Per Share		Amount Declared		Amount Paid
2/23/2021	3/15/2021	3/31/2021	$	0.30	$	8,907	$	8,786

The amount of dividends declared may vary from the amount of dividends paid in a period due to the vesting of restricted stock awards and performance share awards, which accrue dividend equivalent rights that are paid when the award vests. The payment of future dividends will be at the discretion of our board of directors and will depend on our future earnings, capital requirements, financial condition, future prospects, results of operations, contractual restrictions, legal requirements, and other factors deemed relevant by our board of directors.

NOTE 13 - EMPLOYEE BENEFITS

Healthcare

We participate in multiple healthcare plans, the largest of which is partially self-funded with an insurance company paying benefits in excess of stop loss limits per individual/family. Our healthcare benefit expense (net of employee contributions) was $8.9 million and $7.2 million for the three months ended March 31, 2022 and 2021, respectively. An accrual for estimated

17

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

healthcare claims incurred but not reported (“IBNR”) is included within accrued compensation on the Condensed Consolidated Balance Sheets and was $3.6 million and $3.3 million as of March 31, 2022 and December 31, 2021, respectively.

Workers’ Compensation

Workers’ compensation expense totaled $5.7 million and $4.2 million for the three months ended March 31, 2022 and 2021, respectively. Workers’ compensation known claims and IBNR reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands):

	March 31, 2022		December 31, 2021
Included in other current liabilities	$	7,166	$	8,048
Included in other long-term liabilities	15,509		13,397
	$	22,675	$	21,445

We also had an insurance receivable for claims that exceeded the stop loss limit under our self-insured policies as well as claims under our fully insured policies included on the Condensed Consolidated Balance Sheets. This receivable offsets an equal liability included within the reserve amounts noted above and was as follows (in thousands):

	March 31, 2022		December 31, 2021
Included in other non-current assets	$	2,377	$	2,137

Retirement Plans

We participate in multiple 401(k) plans, whereby we provide a matching contribution of wages deferred by employees and can also make discretionary contributions to each plan. Certain plans allow for discretionary employer contributions only. These plans cover substantially all our eligible employees. We recognized 401(k) plan expenses of $0.8 million and $0.7 million during the three months ended March 31, 2022 and 2021, respectively. These expenses are included in administrative expenses on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.

Multiemployer Pension Plans

We participate in various multiemployer pension plans under collective bargaining agreements in Washington, Oregon, California and Illinois with other companies in the construction industry. These plans cover our union-represented employees and contributions to these plans are expensed as incurred. These plans generally provide for retirement, death and/or termination benefits for eligible employees within the applicable collective bargaining units, based on specific eligibility/participation requirements, vesting periods and benefit formulas. We do not participate in any multiemployer pension plans that are considered to be individually significant.

Share-Based Compensation

Common Stock Awards

We periodically grant shares of our common stock to non-employee members of our board of directors and our employees. During the three months ended March 31, 2022 and 2021, we did not grant any such shares under our 2014 Omnibus Incentive Plan to non-employee members of our board of directors.

Employees – Performance-Based Stock Awards

During the three months ended March 31, 2022, we issued approximately 41 thousand shares of our common stock to certain officers, which vest in two equal installments on each of April 20, 2023 and April 20, 2024. In addition, during the three months ended March 31, 2022, we established, and our board of directors approved, performance-based targets in connection with common stock awards to be issued to certain officers in 2023 contingent upon achievement of these targets.

In addition, there are long-term performance-based restricted stock awards to be issued to certain employees annually through 2024 contingent upon achievement of certain performance targets. These awards are accounted for as liability-based awards since they represent a predominantly-fixed monetary amount that will be settled with a variable number of common shares in the first quarter of 2025 and as such are included in other long-term liabilities on the Condensed Consolidated Balance Sheets.

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INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

During the three months ended March 31, 2022 and 2021, we granted approximately 39 thousand and five thousand shares of our common stock, respectively, which will vest in the second quarter of 2022.

Employees – Performance-Based Restricted Stock Units

During 2021, we established, and our board of directors approved, performance-based restricted stock units in connection with common stock awards to be issued to certain employees in 2022 based upon achievement of a performance target. These units will be accounted for as equity-based awards that will be settled with a fixed number of common shares.

Share-Based Compensation Summary

Amounts and changes for each category of equity-based award were as follows:

	Common Stock Awards			Performance-Based Stock Awards			Performance-Based Restricted Stock Units
	Awards	Weighted Average Grant Date Fair Value Per Share		Awards	Weighted Average Grant Date Fair Value Per Share		Units	Weighted Average Grant Date Fair Value Per Share
Nonvested awards/units at December 31, 2021	199,353	$	68.99	143,401	$	81.30	8,252	$	126.89
Granted	39,204	102.98		54,585	102.98		—	—
Forfeited/Cancelled	(50)	126.89		—	—		(191)	126.89
Nonvested awards/units at March 31, 2022	238,507	$	74.57	197,986	$	87.28	8,061	$	126.89

The following table summarizes the share-based compensation expense recognized under our 2014 Omnibus Incentive Plan (in thousands):

	Three months ended March 31,
	2022		2021
Common Stock Awards	$	1,531	$	1,120
Non-Employee Common Stock Awards	124		102
Performance-Based Stock Awards	1,315		1,148
Liability Performance-Based Stock Awards	206		705
Performance-Based Restricted Stock Units	242		121
	$	3,418	$	3,196

We recorded the following stock compensation expense by income statement category (in thousands):

	Three months ended March 31,
	2022		2021
Cost of sales	$	149	$	62
Selling	62		51
Administrative	3,207		3,083
	$	3,418	$	3,196

Administrative stock compensation expense includes all stock compensation earned by our administrative personnel, while cost of sales and selling stock compensation represents all stock compensation earned by our installation and sales employees, respectively.

19

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Unrecognized share-based compensation expense related to unvested awards was as follows (in thousands):

	As of March 31, 2022
	Unrecognized Compensation Expense on Unvested Awards		Weighted Average Remaining Vesting Period
Common Stock Awards	$	5,910	1.5
Performance-Based Stock Awards	9,139		2.1
Performance-Based Restricted Stock Units	50		0.1
Total unrecognized compensation expense related to unvested awards	$	15,099

Total unrecognized compensation expense is subject to future adjustments for forfeitures. This expense is expected to be recognized over the remaining weighted-average period shown above on a straight-line basis except for the Performance-Based Stock Awards which uses the graded-vesting method. Shares forfeited are returned as treasury shares and available for future issuances.

As of March 31, 2022, approximately 1.8 million of the 3.0 million shares of common stock authorized for issuance were available for issuance under the 2014 Omnibus Incentive Plan.

NOTE 14 - INCOME TAXES

Our provision for income taxes as a percentage of pretax earnings is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items.

During the three months ended March 31, 2022 and 2021, our effective tax rate was 26.8% and 26.2%, respectively. The rate for both the three months ended March 31, 2022 and 2021 was unfavorably impacted by certain expenses not being deductible for income tax reporting purposes.

NOTE 15 - RELATED PARTY TRANSACTIONS

We sell installation services to other companies related to us through common or affiliated ownership and/or board of directors and/or management relationships. We also purchase services and materials and pay rent to companies with common or affiliated ownership.

We lease our headquarters and certain other facilities from related parties. See Note 8, Leases, for future minimum lease payments to be paid to these related parties.

The amount of sales to common or related parties as well as the purchases from and rent expense paid to common or related parties were as follows (in thousands):

	Three months ended March 31,
	2022		2021
Sales	$	560	$	278
Purchases	407		392
Rent	314		306

We had a related party balance of approximately $1.0 million and $0.9 million included in accounts receivable on our Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021, respectively. These balances primarily represent trade accounts receivable arising during the normal course of business with various related parties.

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INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 16 - COMMITMENTS AND CONTINGENCIES

Accrued General Liability and Auto Insurance

Accrued general liability and auto insurance reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands):

	March 31, 2022		December 31, 2021
Included in other current liabilities	$	5,762	$	5,889
Included in other long-term liabilities	17,317		16,050
	$	23,079	$	21,939

We also had insurance receivables and indemnification assets included on the Condensed Consolidated Balance Sheets that, in aggregate, offset equal liabilities included within the reserve amounts noted above. The amounts were as follows (in thousands):

	March 31, 2022		December 31, 2021
Insurance receivables and indemnification assets for claims under fully insured policies	$	3,548	$	3,578
Insurance receivables for claims that exceeded the stop loss limit	600		278
Total insurance receivables and indemnification assets included in other non-current assets	$	4,148	$	3,856

Leases

See Note 8, Leases, for further information regarding our lease commitments.

Other Commitments and Contingencies

From time to time, various claims and litigation are asserted or commenced against us principally arising from contractual matters and personnel and employment disputes. In determining loss contingencies, management considers the likelihood of loss as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss is recorded when it is considered probable that such a liability has been incurred and when the amount of loss can be reasonably estimated. As litigation is subject to inherent uncertainties, we cannot be certain that we will prevail in these matters. However, we do not believe that the ultimate outcome of any pending matters will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

NOTE 17 - BUSINESS COMBINATIONS

As part of our ongoing strategy to expand geographically and increase market share in certain markets, as well as diversify our products and end markets, we completed one business combination during each of the three months ended March 31, 2022 and 2021, respectively.

We acquired Pisgah Insulation and Fireplaces of NC, LLC. ("Pisgah") in March 2022 and I.W. International Insulation, Inc., dba Intermountain West Insulation (“IWI”) in March 2021. Below is a summary of each significant acquisition by year, including revenue and net income since date of acquisition shown for the year of acquisition. Net income includes amortization, taxes and interest allocations when appropriate.

For the three months ended March 31, 2022 (in thousands):

									Three months ended March 31, 2022
2022 Acquisitions	Date	Acquisition Type	Cash Paid		Seller Obligations		Total Purchase Price		Revenue		Net Income
Pisgah	03/01/2022	Share	$	8,050	$	1,878	$	9,928	$	915	$	97

21

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the three and three months ended March 31, 2021 (in thousands)

									Three months ended March 31, 2021
2021 Acquisitions	Date	Acquisition Type	Cash Paid		Seller Obligations		Total Purchase Price		Revenue		Net Income
IWI	03/01/2021	Share	$	42,098	$	5,959	$	48,057	$	3,608	$	450

Acquisition-related costs recorded within administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income amounted to $0.7 million for the three months ended March 31, 2022, and $1.2 million for the three months ended March 31, 2021, respectively. The goodwill recognized in conjunction with these business combinations represents the excess cost of the acquired entity over the net amount assigned to assets acquired and liabilities assumed. We expect to deduct approximately $2.8 million of goodwill for tax purposes as a result of 2022 acquisitions.

Purchase Price Allocations

The estimated fair values of the assets acquired and liabilities assumed for the acquisitions, as well as total purchase prices and cash paid, approximated the following (in thousands):

	As of March 31, 2022		As of March 31, 2021
	Pisgah		IWI
Estimated fair values:
Cash	$	—	$	168
Accounts receivable	772		5,122
Inventories	684		1,157
Other current assets	21		3,014
Property and equipment	1,049		796
Intangibles	4,634		25,200
Goodwill	2,830		23,282
Other non-current assets	7		264
Accounts payable and other current liabilities	(69)		(8,416)
Other long-term liabilities	—		(2,530)
Fair value of assets acquired and purchase price	9,928		48,057
Less seller obligations	1,878		5,959
Cash paid	$	8,050	$	42,098

Contingent consideration is included as “seller obligations” in the above table or within “fair value of assets acquired” if subsequently paid during the period presented. These contingent payments consist primarily of earnouts based on performance that are recorded at fair value at the time of acquisition, and/or non-compete agreements and amounts based on working capital calculations. When these payments are expected to be made over one year from the acquisition date, the contingent consideration is discounted to net present value of future payments based on a weighted average of various future forecast scenarios.

Further adjustments to the allocation for each acquisition still under its measurement period are expected as third-party or internal valuations are finalized, certain tax aspects of the transaction are completed, contingent consideration is settled and customary post-closing reviews are concluded during the measurement period attributable to each individual business combination. As a result, insignificant adjustments to the fair value of assets acquired, and in some cases total purchase price, have been made to certain business combinations since the date of acquisition and future adjustments may be made through the end of each measurement period. Any acquisition acquired after March 31, 2021 is deemed to be within the measurement period and its purchase price considered preliminary. Goodwill and intangibles per the above table may not agree to the total gross increases of these assets as shown in Note 6, Goodwill and Intangibles, during each of the three months ended March 31, 2022 and 2021 due to adjustments to goodwill for the allocation of certain acquisitions still under measurement as well as other immaterial intangible assets added during the ordinary course of business.

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INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Estimates of acquired intangible assets related to the acquisitions are as follows (in thousands):

	For the three months ended March 31,
	2022			2021
Acquired intangibles assets	Estimated Fair Value		Weighted Average Estimated Useful Life (yrs.)	Estimated Fair Value		Weighted Average Estimated Useful Life (yrs.)
Customer relationships	$	3,125	12	$	18,200	12
Trademarks and tradenames	1,136		15	4,400		15
Non-competition agreements	374		5	2,600		5

Pro Forma Information

The unaudited pro forma information for the combined results of the Company has been prepared as if the 2022 acquisition had taken place on January 1, 2021 and the 2021 acquisition had taken place on January 1, 2020. The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transactions actually taken place on January 1, 2021 and 2020, respectively, and the unaudited pro forma information does not purport to be indicative of future financial operating results (in thousands, except per share data):

	Unaudited pro forma for the three months ended March 31,
	2022		2021
Net revenue	$	589,356	$	484,248
Net income	34,009		21,621
Basic net income per share	1.16		0.74
Diluted net income per share	1.15		0.73

Unaudited pro forma net income reflects additional intangible asset amortization expense of approximately $68 thousand and $3.2 million for the three months ended March 31, 2022 and 2021, respectively, as well as additional income tax expense of approximately $66 thousand and $1.5 million for the three months ended March 31, 2022 and 2021, respectively, that would have been recorded had the 2022 acquisition taken place on January 1, 2021 and the 2021 acquisition taken place on January 1, 2020.

NOTE 18 - INCOME PER COMMON SHARE

Basic net income per common share is calculated by dividing net income by the weighted average shares outstanding during the period, without consideration for common stock equivalents.

Diluted net income per common share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury stock method. Potential common stock is included in the diluted income per common share calculation when dilutive. The dilutive effect of outstanding restricted stock awards after application of the treasury stock method was approximately 278 thousand and 327 thousand shares for the three months ended March 31, 2022 and 2021, respectively. Approximately 30 thousand shares of potential common stock was not included in the calculation of diluted net income per common share for the three months ended March 31, 2021 because the effect would have been anti-dilutive. There were no shares that would have been considered anti-dilutive in the three months ended March 31, 2022.

23

INSTALLED BUILDING PRODUCTS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 19 - SUBSEQUENT EVENTS

On April 11, 2022, we acquired the stock of Central Aluminum Supply Corporation and Central Aluminum Supply of North Jersey, LLC for a total consideration of approximately $57.3 million. The initial accounting for the business combinations was not complete at the time the financial statements were issued due to the timing of the acquisitions and the filing of this Quarterly Report on Form 10-Q. As a result, disclosures required under ASC 805-10-50, Business Combinations cannot be made at this time.

On May 5th, 2022, we announced that our board of directors declared a quarterly dividend, payable on June 30, 2022 to stockholders of record on June 15, 2022, at a rate of 31.5 cents per share.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our consolidated financial statements and related notes in “Item 1. Financial Statements” of this Form 10-Q, as well as our 2021 Form 10-K.

OVERVIEW

We are one of the nation’s largest insulation installers for the residential new construction market and are also a diversified installer of complementary building products, including waterproofing, fire-stopping and fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving, mirrors and other products throughout the United States. We offer our portfolio of services for new and existing single-family and multi-family residential and commercial building projects in all 48 continental states and the District of Columbia from our national network of over 210 branch locations. 96% of our net revenue comes from service-based installation of these products in the residential new construction, repair and remodel and commercial construction end markets and forms our Installation operating segment and single reportable segment. Additionally, we manufacture and distribute building products and materials to installers and distributors in new construction projects and these two operations form our Distribution operating segment and our Manufacturing operating segment, respectively. We believe our business is well positioned to continue to profitably grow over the long-term due to our strong balance sheet, liquidity and our continuing acquisition strategy. See “Key Factors Affecting Our Operating Results, COVID-19 Impacts” below for a discussion of short-term impacts to our business.

A large portion of our net revenue comes from the U.S. residential new construction market, which depends upon a number of economic factors, including demographic trends, interest rates, inflation, consumer confidence, employment rates, housing inventory levels, foreclosure rates, the health of the economy and availability of mortgage financing. The strategic acquisitions of multiple companies over the last several years contributed meaningfully to our 34.4% increase in net revenue during the three months ended March 31, 2022 compared to 2021.

2022 First Quarter Highlights

Net revenue increased 34.4%, or $150.4 million to $587.5 million, while gross profit increased 37.5% to $172.4 million during the three months ended March 31, 2022 compared to 2021. The increase in net revenue and gross profit was primarily driven by the contribution of our recent acquisitions, selling price and product mix improvements as evidenced by the 14.6% increase in our price/mix metric, and increased sales volume of 9.7% on a same branch basis. Gross profit grew faster than revenue primarily due to higher selling prices and resulting leverage gained on labor and other costs of sales, which was partially offset by higher material costs caused by supply chain constraints and higher fuel costs. Inflationary pressures continue to contribute to higher material costs, particularly for spray foam and several complementary installed products, as some products continue to be difficult to source near volume and pricing levels secured in prior periods. Our liquidity remains strong despite repurchasing $49.9 million of our Company's stock and paying our first annual dividend plus our quarterly regular dividend, totaling $35.4 million during the three months ended March 31, 2022. As of March 31, 2022, we had $217.4 million of cash and cash equivalents, $50.0 million of short-term investments, and we have not drawn on our revolving line of credit, which we amended and extended during the three months ended March 31, 2022, increasing the commitment to $250.0 million from $200.0 million.

During the three months ended March 31, 2022, we experienced growth in all of our end markets and we achieved 22.5% year-over-year same branch sales growth. Our largest end market, the single-family subset of the residential new construction market, grew revenue 37.4% over the same period ended March 31, 2021. Our commercial end market also experienced sales growth during this period due primarily to acquisitions despite continued project delays due to macroeconomic concerns surrounding the pandemic. These fluctuations are shown in further detail in the table below and impacts from COVID-19 are discussed further in the sections that follow.

Key Measures of Performance

During the three months ended March 31, 2022, we realigned our operating segments to reflect recent changes in our business as described in Part I, Item1, "Note 10 - Information on Segments." In conjunction with this realignment, we modified the key metrics we use to monitor company and segment performance. Specifically, we now present total sales growth and same branch growth metrics for our consolidated results, our Installation reportable segment and our Other category consisting of our Distribution and Manufacturing operating segments. In addition, our volume growth and price/mix growth metrics are now only presented for the Installation reportable segment to align with how we monitor our operations. While these changes do not

25

significantly alter the prior period metrics previously disclosed, prior period Manufacturing operating segment growth metrics were reclassified from our Installation segment metrics to the Other category metrics.

The following table shows key measures of performance we utilize to evaluate our results:

	Three months ended March 31,
	2022		2021
Period-over-period Growth
Consolidated Sales Growth	34.4	%	10.0	%
Consolidated Same Branch Sales Growth (1)	22.5	%	2.2	%
Installation (2)
Sales Growth (3)	30.0	%	9.8	%
Same Branch Sales Growth (1)(3)	22.2	%	2.0	%
Single-Family Sales Growth (4)	37.4	%	9.4	%
Single-Family Same Branch Sales Growth (1)(4)	29.4	%	4.7	%
Multi-Family Sales Growth (5)	24.6	%	18.8	%
Multi-Family Same Branch Sales Growth (1)(5)	23.1	%	6.6	%
Residential Sales Growth (6)	35.2	%	10.9	%
Residential Same Branch Sales Growth (1)(6)	28.3	%	5.0	%
Commercial Sales Growth (7)	13.0	%	2.8	%
Commercial Same Branch Sales Growth (1)(7)	5.9	%	(14.0)	%
Other (2)
Sales Growth (8)	407.3	%	37.3	%
Same Branch Sales Growth (1)(8)	50.8	%	37.3	%
Same Branch Sales Growth - Installation
Volume Growth (1)(9)	9.7	%	10.2	%
Price/Mix Growth (1)(10)	14.6	%	(6.2)	%
Heavy Commercial Same Branch Sales Growth(1)(11)	0.5	%	(13.1)	%
U.S. Housing Market (12)
Total Completions Growth	(5.5)	%	9.2	%
Single-Family Completions Growth (4)	(0.7)	%	11.2	%
Multi-Family Completions Growth (5)	(17.3)	%	4.8	%

(1)	Same-branch basis represents period-over-period growth for branch locations owned greater than 12 months as of each financial statement date.
(2)	Prior period disclosures in this section of the above table have been recast to conform to the current period segment presentation.
(3)	Calculated based on period-over-period growth of all end markets for our Installation segment.
(4)	Calculated based on period-over-period growth in the single-family subset of the residential new construction end market for our Installation segment.
(5)	Calculated based on period-over-period growth in the multi-family subset of the residential new construction end market for our Installation segment.
(6)	Calculated based on period-over-period growth in the residential new construction end market for our Installation segment.
(7)	Calculated based on period-over-period growth in the total commercial end market for our Installation segment. Our commercial end market consists of heavy and light commercial projects.
(8)	Calculated based on period-over-period growth in our Other category which consists of our Manufacturing and Distribution operating segments. This fiscal quarter is the first full period of results for our recently acquired distribution business. The acquisition was completed in December 2021.
(9)	Excludes the heavy commercial end market; calculated as period-over-period change in the number of completed same-branch residential new construction and repair and remodel jobs.
(10)	Excludes the heavy commercial end market; defined as change in the mix of products sold and related pricing changes and calculated as the change in period-over-period average selling price per same-branch residential new construction and repair and remodel jobs multiplied by total current year jobs. The mix of end customer and product would have an impact on the year-over-year price per job.
(11)	The heavy commercial end market, as a subset of our total commercial market, comprises certain of our branches working on projects constructed primarily out of steel and concrete, which are much larger than our average residential job. This market is excluded from the above same branch price/mix and volume growth metrics as to not skew the rates given the much larger per-job revenue compared to our average job.
(12)	U.S. Census Bureau data, as revised.

We believe the revenue growth measures are important indicators of how our business is performing, however, we may rely on different metrics in the future. We also utilize gross profit percentage as shown in the following section to monitor our most significant variable costs and to evaluate labor efficiency and success at passing increasing costs of materials to customers.

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Net revenue, cost of sales and gross profit

The components of gross profit were as follows (in thousands):

	Three months ended March 31,
	2022			Change		2021
Net revenue	$	587,492		34.4	%	$	437,066
Cost of sales	415,089			33.2	%	311,639
Gross profit	$	172,403		37.5	%	$	125,427
Gross profit percentage	29.3		%			28.7		%

Net revenue increased during the three months ended March 31, 2022, primarily driven by acquisitions, increased selling prices and organic growth from our existing branches, especially in our Installation residential end market (as shown in the Key Measures of Performance section above). All end markets we serve experienced sales growth, with overall sales growing 34.4% over the prior year period. For the three months ended March 31, 2022, on a same branch consolidated basis, net revenue improved 22.5% with approximately 14.6% of this increase attributable to price gains and more favorable customer and product mix with the remainder attributable to growth in the number of completed jobs. Growth in our residential end market is primarily due to selling price increases, higher volume and the continued success of our acquisition strategy. In our commercial end market, continued challenges associated with the COVID-19 pandemic had an impact as evidenced by a modest increase of 5.9% in same branch sales within this end market. See “Key Factors Affecting Our Operating Results, COVID-19 Impacts” below for further information.

As a percentage of net revenue, gross profit improved during the three months ended March 31, 2022 compared to the prior period primarily on the strength of sales growth across all end markets as well as strong price/mix growth. However, ongoing 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. During the three months ended March 31, 2022, we estimate these purchases increased materials expense by approximately $1.4 million, therefore reducing gross profit by approximately 20 basis points. While inflation and material supply chain issues are likely to persist throughout the year, we believe new housing construction will remain supportive of our business due to the substantial number of permitted units that have yet to be started.

Operating expenses

Operating expenses were as follows (in thousands):

	Three months ended March 31,
	2022			Change		2021
Selling	$	25,192		20.8	%	$	20,858
Percentage of total net revenue	4.3		%			4.8		%
Administrative	$	79,144		21.6	%	$	65,077
Percentage of total net revenue	13.5		%			14.9		%
Amortization	$	11,097		32.2	%	$	8,396
Percentage of total net revenue	1.9		%			1.9		%

Selling

The dollar increase in selling expenses for the three months ended March 31, 2022 was primarily driven by an increase in selling wages and commissions to support our increased net revenue of 34.4%. Selling expense as a percentage of sales decreased for the three months ended March 31, 2022 compared to 2021 primarily due to increased leverage on wages and commissions from selling price increases.

Administrative

The dollar increase in administrative expenses for the three months ended March 31, 2022 was primarily due to an increase in wages, benefits, liability insurance and facility costs to support both acquisitions and organic growth. Administrative expenses decreased as a percentage of sales for the three months ended March 31, 2022 compared to 2021 primarily due to the leverage gained on administrative wages and benefits from increased sales.

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Amortization

The increase in amortization expense for the three months ended March 31, 2022 was attributable to the increase in finite-lived intangible assets recorded as a result of acquisitions.

Other expense, net

Other expense, net was as follows (in thousands):

	Three months ended March 31,
	2022		Change		2021
Interest expense, net	$	10,600	40.0	%	$	7,574
Other expense	145		79.0	%	81
Total other expense, net	$	10,745			$	7,655

The increase in interest expense, net during the three months ended March 31, 2022 compared to 2021 was primarily due to the increase in debt levels. See Note 7, Long-Term Debt, for more information.

Income tax provision

Income tax provision and effective tax rates were as follows (in thousands):

	Three months ended March 31,
	2022			2021
Income tax provision	$	12,403		$	6,150
Effective tax rate	26.8		%	26.2		%

During the three months ended March 31, 2022 and 2021, our effective tax rate was 26.8% and 26.2%, respectively. The rates for both periods were unfavorably impacted by certain expenses not being deductible for income tax reporting purposes.

Other comprehensive income, net of tax

Other comprehensive income, net of tax was as follows (in thousands):

	Three months ended March 31,
	2022		2021
Net change on cash flow hedges, net of taxes	$	18,111	$	10,157

During the three months ended March 31, 2022, we recorded an unrealized gain of $17.5 million, net of tax, on our cash flow hedges due to the market's expectations for higher interest rates in the future relative to our three existing interest rate swaps. We also amortized $0.8 million of our remaining unrealized loss on our terminated cash flow hedges to interest expense during the three months ended March 31, 2022, not including tax effects of $0.2 million. During the three months ended March 31, 2021, we recorded an unrealized gain on our then forward cash flow hedge due to favorable market conditions and amortized a portion of the unrealized loss on our terminated cash flow hedges.

KEY FACTORS AFFECTING OUR OPERATING RESULTS

Inflation and Interest Rates

The fast recovery in residential housing demand helped offset prolonged impacts of the pandemic already experienced. However, the strong demand for residential housing has caused inflationary pressure on materials. Inflation has also affected the economy as a whole with the Federal Reserve raising the federal funds rate in March of 2022 in addition to signaling it plans to continue raising this rate throughout 2022 and into 2023. This caused the average mortgage rate in the United States to rise each month in 2022, which could curtail housing demand.

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Cost and Availability of Materials

We typically purchase the materials that we install directly from manufacturers, and the products we sell are either purchased from manufacturers or other suppliers or are manufactured by us. Since the beginning of the COVID-19 pandemic, the industry supply of many of the materials we install has been disrupted. The higher demand for materials coupled with supply chain issues including raw material shortages, supplier labor shortages, bottlenecks and shipping constraints has forced us to buy some materials at higher prices through distributors and local retailers to meet customer demand, therefore reducing gross profit. The pandemic has also resulted in the need for some of our manufacturers to allocate materials across the industry which has affected the pricing and availability of those materials. We expect the supply chain disruptions affecting most of the materials used throughout our installation work to continue throughout 2022.

In addition, we experience price increases from our suppliers from time to time, including multiple increases over the last few years caused by supply shortages and general economic inflationary pressures. During the three months ended March 31, 2022, we saw increased pricing for fiberglass insulation and many of the other products we install and expect manufacturers to seek additional price increases during the year. The increase in demand, inflationary pressures, product shortages and other supply constraints has caused these material price increases to be larger and more frequent than a normal business cycle. Increased market pricing, regardless of the catalyst, has and could continue to impact our results of operations throughout the remainder of 2022, to the extent that price increases cannot be passed on to our customers. We will continue to work with our customers to adjust selling prices to offset higher costs as they occur. See “COVID-19 Impacts” below for a discussion of the short-term impacts of the current economic climate on the availability of the materials we install.

Cost of Labor

Our business is labor intensive and the majority of our employees work as installers on local construction sites. We expect to spend more to hire, train and retain installers to support our growing business in 2022, as tight labor availability continues within the construction industry. We obtained leverage on our labor costs in the three months ended March 31, 2022 due to increased selling prices per job, however, inflation and market competition could increase these costs in the near-term. We offer a comprehensive benefits package, which many of our local competitors are not able to provide, which will increase costs as we hire additional personnel. Our workers’ compensation costs may continue to rise as we increase our coverage for additional personnel.

We experienced strong employee retention, turnover and labor efficiency rates in the three months ended March 31, 2022. We believe this is partially a result of various programs meant to benefit our employees, including our financial wellness plan, longevity stock compensation plan for employees and assistance from the Installed Building Products Foundation meant to benefit our employees, their families and their communities. While improved retention drives lower costs to recruit and train new employees, resulting in greater installer productivity, these improvements are somewhat offset by the additional costs of these incentives.

COVID-19 Impacts

The COVID-19 pandemic has caused significant volatility, uncertainty and economic disruption. While the COVID-19 pandemic and related events will likely have a negative effect on our business during the remainder of 2022, the full extent and scope of the impact on our business and industry, as well as national, regional and global markets and economies, depends on numerous evolving factors that we may not be able to accurately predict, including the duration and scope of the pandemic, additional government actions taken in response to the pandemic, the impact on construction activity and demand for homes (based on employment levels, consumer spending and consumer confidence). The fast recovery in residential housing demand helped offset prolonged impacts of the pandemic already experienced. However, we have experienced supply constraints and material price increases ultimately stemming from the effects of the pandemic across most of the products we install or sell, which we expect to continue throughout 2022.

In the commercial sector, we have experienced some impact to our commercial business, mainly in the form of project start delays and inefficiencies due to social distancing requirements in some areas. In the future, certain large-scale infrastructure programs may be at risk if the need for such structures decline, project funding declines or as consumer behaviors change in the wake of COVID-19 disruptions to the economy and changes to our general ways of life. For example, reduced demand for office buildings and/or educational facilities, decreased airport traffic, or decreased usage of sports arenas or similar commercial structures could impact our commercial end market. We continue to evaluate the nature and extent of the COVID-19 pandemic’s impact on our financial condition, results of operations and cash flows.

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On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security ("CARES Act") was signed into law. The CARES Act provides numerous tax provision and other stimulus measures. We benefited from the temporary suspension of the employer portion of Social Security taxes by deferring $20.7 million of payments in 2020. 50% of the amount was paid on December 31, 2021 and the remaining 50% will be paid on December 31, 2022. It is important to note that this does not impact the timing of the expense, only the timing of the payment.

LIQUIDITY AND CAPITAL RESOURCES

Our capital resources primarily consist of cash from operations and borrowings under our various debt agreements and capital equipment leases and loans. As of March 31, 2022, we had cash and cash equivalents of $217.4 million, short-term investments of $50.0 million, as well as access to $250.0 million under our asset-based lending credit facility (as defined below), less $44.3 million of outstanding letters of credit, resulting in total liquidity of $473.1 million. This total liquidity was reduced by $4.3 million within our cash and cash equivalents due to a deposit into a trust to serve as additional collateral for our workers' compensation and general liability policies. This amount can be converted to a letter of credit at our discretion and would reduce the availability of our asset-based lending facility (as defined below). Liquidity may also be limited in the future by certain cash collateral limitations under our asset-based credit facility (as defined below), depending on the status of our borrowing base availability.

We experienced unprecedented increases in pricing for fiberglass and foam insulation materials in 2021 and the first quarter of 2022 and expect manufacturers to seek additional price increases in 2022. Increased market pricing on the materials we purchase has and could continue to impact our results of operations in 2022 due to the higher prices we must pay for materials. See Part I, Item 1A, Risk Factors on the 2021 Form 10-K, for information on the potential and currently known impacts on our business and liquidity from the COVID-19 pandemic.

Short-Term Material Cash Requirements

Our primary capital requirements are to fund working capital needs, operating expenses, acquisitions and capital expenditures, to meet principal and interest obligations and to make required income tax payments. We may also use our resources to fund our optional stock repurchase program and pay quarterly and annual dividends. In addition, we expect to spend cash and cash equivalents to acquire various companies with at least $100.0 million in aggregate net revenue acquired each fiscal year. The amount of cash paid for an acquisition is dependent on various factors, including the size and determined value of the business being acquired.

We expect to meet our short-term liquidity requirements primarily through net cash flows from operations, our cash and cash equivalents on hand and borrowings from banks under the Master Loan and Security Agreement, the Master Equipment Agreement and the Master Loan Agreements. Additional sources of funds, should we need them, include borrowing capacity under our asset-based lending credit facility (as defined below).

Despite the current known impacts of the COVID-19 pandemic, we believe that our cash flows from operations, combined with our current cash levels and available borrowing capacity, will be adequate to support our ongoing operations and to fund our business needs, commitments and contractual obligations for at least the next 12 months as evidenced by our net positive cash flows from operations for the three months ended March 31, 2022 and 2021. We believe that we have access to additional funds, if needed, through the capital markets to obtain further debt financing under the current market conditions, but we cannot guarantee that such financing will be available on favorable terms, or at all. We also expect the seasonal trends we typically experience throughout the year to be more muted in 2022 given the strong industry backlog. This could affect the timing of cash collections and payments during each quarter of 2022.

Long-Term Material Cash Requirements

Beyond the next twelve months, our principal demands for funds will be to fund working capital needs and operating expenses, to meet principal and interest obligations on our long-term debts and finance leases as they become due or mature, and to make required income tax payments. Additional funds may be spent on acquisitions, capital improvements and dividend payments, at our discretion.

On a long-term basis, our sources of capital could be insufficient to meet our needs and growth strategy. We may refinance existing debt or obtain further debt financing in the future to the extent that our sources of capital is insufficient.

In "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the 2021 Form 10-K, we disclosed that we had $1.1 billion aggregate long-term material cash requirements as of December 31, 2021. There have

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been no material changes to our cash requirements during the period covered by this 10-Q outside of the normal course of our business.

Sources and Uses of Cash and Related Trends

Working Capital

We carefully manage our working capital and operating expenses. As of March 31, 2022 and December 31, 2021, our working capital, including cash and cash equivalents and investments, was $514.7 million and $551.7 million. Accounts receivable increased $32.8 million resulting from our increased net revenue, and inventories increased by $17.0 million due to material price inflation, increased selling activity and acquisitions. These increases were partially offset by an increase of $17.9 million in accounts payable primarily due material price inflation and increased sales volume. We continue to look for opportunities to reduce our working capital as a percentage of net revenue.

The following table summarizes our liquidity (in thousands):

	Three months ended March 31,
	2022		2021
Net cash provided by operating activities	$	48,225	$	37,618
Net cash used in investing activities	(68,718)		(52,392)
Net cash used in financing activities	(95,558)		(9,403)

Cash Flows from Operating Activities

Our primary source of cash provided by operations are revenues generated from installing building products and the resulting operating income generated by these revenues. Operating income is adjusted for certain non-cash items, and our cash flows from operations can be impacted by the timing of our cash collections on sales and collection of retainage amounts. The COVID-19 pandemic has not had a material impact on our cash collections to date.

Our primary uses of cash from operating activities include payments for installation materials, compensation costs, leases, income taxes and other general corporate expenditures included in net income.

Net cash provided by operating activities increased from 2021 to 2022 primarily due to the increases in net income and various noncash adjustments, offset by the changes in working capital.

Cash Flows from Investing Activities

Sources of cash from investing activities consist primarily of proceeds from the sales of property and equipment and, periodically, maturities from short term investments. Cash used in investing activities consists primarily of purchases of property and equipment, payments for acquisitions and, periodically, purchases of short term investments.

Net cash used by investing activities increased from 2021 to 2022 primarily due to the purchase of short-term investment during the three months ended March 31, 2022. See Note 5, Investments and Cash and Cash Equivalents, for more information on this investment.

Cash Flows from Financing Activities

Our sources of cash from financing activities consists of proceeds from the issuances of vehicle and equipment notes payable and, periodically, other sources of debt financing. Cash used in financing activities consists primarily of debt repayments, acquisition-related obligations, dividends and stock repurchases.

Net cash used by financing activities increased from 2021 to 2022 primarily due to the repurchase of common stock under our stock repurchase plan during the three months ended March 31, 2022. Our net cash provided by financing activities also increased during the three months ended March 31, 2022 due to the payment of our first annual dividend payment. See Note 12, Stockholders' Equity, for more information on the repurchase of common stock and the payment of dividends.

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Debt

5.75% Senior Notes due 2028

In September 2019, we issued $300.0 million in aggregate principal amount of 5.75% senior unsecured notes (the “Senior Notes”). The Senior Notes will mature on February 1, 2028 and interest is payable semi-annually in cash in arrears on February 1 and August 1, commencing on February 1, 2020. The net proceeds from the Senior Notes offering were $295.0 million after debt issuance costs.

The indenture covering the Senior Notes contains restrictive covenants that, among other things, limit the ability of the Company and certain of our subsidiaries (subject to certain exceptions) to: (i) incur additional debt and issue preferred stock; (ii) pay dividends on, redeem or repurchase stock in an aggregate amount exceeding 2.0% of market capitalization per fiscal year, or in an aggregate amount exceeding certain applicable restricted payment baskets; (iii) prepay subordinated debt; (iv) create liens; (v) make specified types of investments; (vi) apply net proceeds from certain asset sales; (vii) engage in transactions with affiliates; (viii) merge, consolidate or sell substantially all of our assets; and (ix) pay dividends and make other distributions from subsidiaries.

Credit Facilities

In December 2021, we amended and restated our $500 million, seven-year term loan facility due December 2028 (the “Term Loan”) under our credit agreement (the “Term Loan Agreement”), dated as of December 14, 2021 with Royal Bank of Canada as the administrative agent and collateral agent thereunder. The amended Term Loan amortizes in quarterly principal payments of $1.25 million starting on March 31, 2022, with any remaining unpaid balances due on the maturity date of December 14, 2028. The Term Loan bears interest at either the base rate (which approximates the prime rate) or the Eurodollar rate, plus a margin of (A) 1.25% in the case of base rate loans or (B) 2.25% in the case of Eurodollar rate loans. Proceeds from the Term Loan were used to refinance and repay in full all amounts outstanding under our previous term loan agreement. We intend to use the remaining funds to pay for certain fees and expenses associated with the closing of the Term Loan and for general corporate purposes, including acquisitions and other growth initiatives. As of March 31, 2022, we had $492.3 million, net of unamortized debt issuance costs, due on our Term Loan.

Subject to certain exceptions, the Term Loan will be subject to mandatory prepayments of (i) 100% of the net cash proceeds from issuances or incurrence of debt by the Company or any of its restricted subsidiaries (other than with respect to certain permitted indebtedness (excluding any refinancing indebtedness); (ii) 100% (with step-downs to 50% and 0% based on achievement of specified net leverage ratios) of the net cash proceeds from certain sales or dispositions of assets by the Company or any of its restricted subsidiaries in excess of a certain amount and subject to reinvestment provision and certain other exception; and (iii) 50% (with step-downs to 25% and 0% based upon achievement of specified net leverage ratios) of excess cash flow of the Company and its restricted subsidiaries in excess of $15 million, subject to certain exceptions and limitations.

In February 2022, we amended and extended the term of our asset-based lending credit agreement (the “ABL Credit Agreement”). The ABL Credit Agreement increased the commitment under the asset-based lending credit facility (the “ABL Revolver”) to $250.0 million from $200.0 million, and permits us to further increase the commitment amount up to $300.0 million. The amendment also extends the maturity date from September 26, 2024 to February 17, 2027. The ABL Revolver bears interest at either the base rate or the Secured Overnight Financing Rate ("Term SOFR"), at our election, plus a margin of 0.25% or 0.50% in the case of base rate loans or 1.25% or 1.50% for Term SOFR advances (in each case based on a measure of availability under the ABL Credit Agreement). The amendment also allows for modification of specified fees dependent upon achieving certain sustainability targets, in addition to making other modifications to the ABL Credit Agreement. In connection with the Term Loan Agreement, we entered into a Third Amendment (the “Third Amendment”) to the ABL/Term Loan Intercreditor Agreement with Bank of America, N.A., as ABL Agent for the lenders under the ABL Credit Agreement, and Royal Bank of Canada as collateral agent under the Term Loan Agreement. Including outstanding letters of credit, our remaining availability under the ABL Revolver as of March 31, 2022 was $205.7 million.

All of the obligations under the Term Loan and ABL Revolver are guaranteed by all of the Company’s existing restricted subsidiaries and will be guaranteed by the Company’s future restricted subsidiaries. Additionally, all obligations under the Term Loan and ABL Revolver, and the guarantees of those obligations, are secured by substantially all of the assets of the Company and the guarantors, subject to certain exceptions and permitted liens, including a first-priority security interest in such assets that constitute ABL Priority Collateral, as defined in the ABL Credit Agreement, and a second- priority security interest in such assets that constitute Term Loan Priority Collateral, as defined in the Term Loan Agreement.

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The ABL Revolver also provides incremental revolving credit facility commitments of up to $50.0 million. The terms and conditions of any incremental revolving credit facility commitments must be no more favorable than the terms of the ABL Revolver. The ABL Revolver also allows for the issuance of letters of credit of up to $100.0 million in aggregate and borrowing of swingline loans of up to $25.0 million in aggregate.

The ABL Credit Agreement contains a financial covenant requiring the satisfaction of a minimum fixed charge coverage ratio of 1.0x in the event that we do not meet a minimum measure of availability under the ABL Revolver. The ABL Credit Agreement and the Term Loan Agreement contain restrictive covenants that, among other things, limit the ability of the Company and certain of our subsidiaries (subject to certain exceptions) to: (i) incur additional debt and issue preferred stock; (ii) pay dividends on, redeem or repurchase stock in an aggregate amount exceeding the greater of 2.0% of market capitalization per fiscal year or certain applicable restricted payment basket amounts; (iii) prepay subordinated debt; (iv) create liens; (v) make specified types of investments; (vi) apply net proceeds from certain asset sales; (vii) engage in transactions with affiliates; (viii) merge, consolidate or sell substantially all of our assets; and (ix) pay dividends and make other distributions from subsidiaries. At March 31, 2022, we were in compliance with all applicable covenants under the Term Loan Agreement, ABL Credit Agreement and the Senior Notes.

Derivative Instruments

As of March 31, 2022, we had three interest rate swaps. One interest rate swap began July 30, 2021 and has a fixed notional amount of $200.0 million, a fixed rate of 0.51% and a maturity date of April 15, 2030. We also had two interest rate swaps that began December 31, 2021, each with a fixed notional amount of $100.0 million, a fixed rate of 1.37%, and a maturity date of December 15, 2028. Together, these three swaps serve to hedge $400.0 million of the variable cash flows on our variable rate Term Loan through maturity. The assets and liabilities associated with the forward interest rate swap are included in other non-current assets and other current liabilities on the Consolidated Balance Sheets at their fair value amounts as described in Note 9, Fair Value Measurements.

LIBOR is used as a reference rate for our Term Loan and our interest rate swap agreements we use to hedge our interest rate exposure. For more information on the discontinuance of LIBOR, see Item 3. Quantitative and Qualitative Disclosures about Market Risk below.

Vehicle and Equipment Notes

We have financing loan agreements with various lenders to provide financing for the purpose of purchasing or leasing vehicles and equipment used in the normal course of business. Vehicles and equipment purchased or leased under each financing arrangement serve as collateral for the note applicable to such financing arrangement. Regular payments are due under each note for a period of typically 60 consecutive months after the incurrence of the obligation.

Total gross assets and respective outstanding loan balances relating to our master loan and equipment agreements were $139.3 million and $67.4 million as of March 31, 2022 and $134.5 million and $69.2 million as of December 31, 2021, respectively. Depreciation of assets held under these agreements is included within cost of sales on the Condensed Consolidated Statements of Operations and Comprehensive Income.

Letters of Credit and Bonds

We may use performance bonds to ensure completion of our work on certain larger customer contracts that can span multiple accounting periods. Performance bonds generally do not have stated expiration dates; rather, we are released from the bonds as the contractual performance is completed. In addition, we occasionally use letters of credit and cash to secure our performance under our general liability and workers’ compensation insurance programs. Permit and license bonds are typically issued for one year and are required by certain municipalities when we obtain licenses and permits to perform work in their jurisdictions.

The following table summarizes our outstanding bonds, letters of credit and cash-collateral (in thousands):

	As of March 31, 2022
Performance bonds	$	76,020
Insurance letters of credit and cash collateral	50,433
Permit and license bonds	7,934
Total bonds and letters of credit	$	134,387

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We have $4.3 million deposited into a trust as of March 31, 2022 to serve as additional collateral for our workers’ compensation and general liability policies. This collateral can be converted to a letter of credit at our discretion and is therefore not considered to be restricted cash.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. Certain accounting policies involve judgments and uncertainties to such an extent that there is a reasonable likelihood that materially different amounts could have been reported using different assumptions or under different conditions. We evaluate our estimates and assumptions on a regular basis. We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of our assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates and assumptions used in preparation of our consolidated financial statements. There have been no significant changes to our critical accounting policies and estimates during the three months ended March 31, 2022 from those disclosed in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our 2021 Form 10-K.

Recent Accounting Pronouncements

For a description of recently issued and/or adopted accounting pronouncements, see Note 2, Significant Accounting Policies, to our audited consolidated financial statements included in the 2021 10-K.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws, including with respect to the housing market and the commercial market, industry conditions, our financial and business model, payments of dividends, the impact of COVID-19 on our business and end markets, the demand for our services and product offerings, trends in the commercial business, expansion of our national footprint and end markets, diversification of our products, our ability to grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions, our ability to improve sales and profitability, our efforts to navigate the material pricing environment, our ability to increase selling prices, our material and labor costs, supply chain and material constraints, the impact of COVID-19 on our financial results and expectations for demand for our services and our earnings in 2022. Forward-looking statements may generally be identified by the use of words such as “anticipate,” “believe,” “estimate,” “project,” “predict,” “possible,” “forecast,” “may,” “could,” “would,” “should,” “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 duration, effect and severity of the COVID-19 crisis; any recurrence of COVID-19, including through any new variant strains of the virus, and the related surges in positive COVID-19 cases; the adverse impact of the COVID-19 crisis on our business and financial results, our supply chain, the economy and the markets we serve; general economic and industry conditions; inflation and interest rates; the material price and supply environment; the timing of increases in our selling prices; the risk that the Company may reduce, suspend or eliminate dividend payments in the future; and the factors discussed in the “Risk Factors” section of our 2021 Annual Report on Form 10-K and this Quarterly Report on Form 10-Q, as the same may be updated from time to time in our subsequent filings with the SEC. In addition, any future declaration of dividends will be subject to the final determination of our Board of Directors. Any forward-looking statement made by the Company in this report 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.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risks related to fluctuations in interest rates on our outstanding variable rate debt. As of March 31, 2022, we had $498.8 million outstanding on our Term Loan, gross of unamortized debt issuance costs, no outstanding borrowings on our ABL Revolver and no outstanding borrowings under finance leases subject to variable interest rates. As of

34

March 31, 2022, we had three interest rate swaps which, when combined, serve to hedge $400.0 million of the variable cash flows on our Term Loan until its maturity unless extended. As a result, total variable rate debt of $98.8 million was exposed to market risks as of March 31, 2022. A hypothetical one percentage point increase (decrease) in interest rates on our variable rate debt would increase (decrease) our annual interest expense by approximately $1.0 million. Our Senior Notes accrue interest at a fixed rate of 5.75%.

For variable rate debt, interest rate changes generally do not affect the fair value of the debt instrument, but do impact future earnings and cash flows, assuming other factors are held constant. We have not entered into and currently do not hold derivatives for trading or speculative purposes.

LIBOR is used as a reference rate for our Term Loan and our interest rate swap agreements we use to hedge our interest rate exposure. In 2017, the FCA announced that it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The Intercontinental Exchange Benchmark Administration, the administrator of LIBOR, announced in March 2021 its intention to extend the publication of certain LIBOR settings, including the setting we use as a reference rate, to June 2023. It is unclear whether new methods of calculating LIBOR will be established after that date. Our Term Loan Agreement and 2021 interest rate swap agreements include a provision related to the potential discontinuance of LIBOR to be replaced with one or more Secured Overnight Financing Rate (SOFR) values or another alternate benchmark rate. However, if LIBOR ceases to exist after 2023, the interest rates under the alternative rate could be higher than LIBOR. In January 2020, the FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848) and in January 2021, the FASB subsequently issued ASU 2021-01, Reference Rate Reform - Scope, which clarified the scope and application of the original guidance. The purpose of this guidance is to provide relief for impacted areas as it relates to impending reference rate reform. We elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We have evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) as required by Exchange Act Rules 13a-15(e) and 15d-15(e). Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of March 31, 2022.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the three months ended March 31, 2022 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We have not experienced any material impact to our internal controls over financial reporting despite the fact that some of the employees at our corporate office are working remotely at times due to the COVID-19 pandemic. We are continually monitoring and assessing the COVID-19 situation on our internal controls to minimize the impact on their design and operating effectiveness.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

See Part I, Item 1. Financial Statements, Note 16, Commitments and Contingencies – Other Commitments and Contingencies, for information about existing legal proceedings.

Item 1A. Risk Factors

As of the date of this report, there have been no material changes from the risk factors disclosed in our 2021 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table shows the stock repurchase activity for the three months ended March 31, 2022:

	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs (1)
January 1 - 31, 2022	—	—		—	—
February 1 - 28, 2022	—	—		—	—
March 1 - 31, 2022	510,943	$	97.57	510,943	$	150.1	million
	510,943	$	97.57	510,943	$	150.1	million

(1)On February 24, 2022 our board of directors authorized an extension of our stock repurchase program through March 1, 2023 and concurrently authorized an increase in total amount of our outstanding common stock we can purchase under the extended program up to $200.0 million. We repurchased $49.9 million shares of common stock under our stock repurchase program during the three months ended March 31, 2022. As a result of this extension and repurchased stock, we have $150.1 million remaining on our stock repurchase program as of the date of filing of this Form 10-Q. For further information about our stock repurchase program, see Note 12, Stockholder's Equity.

Item 3. Defaults Upon Senior Securities

There have been no material defaults in senior securities.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.    

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Item 6. Exhibits

(a)(3) Exhibits

The following exhibits are being filed as part of this Quarterly Report on Form 10-Q:

Exhibit   Number	Description
10.1	Amendment No. 3 to Credit Agreement, dated February 17, 2022, by and among Installed Building Products, Inc., the financial institutions party thereto as lenders and Bank of America N.A., as administrative agent, incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed on February 18, 2022.
21.1*†	List of Subsidiaries of Installed Building Products, Inc.
31.1*	CEO Certification pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	CFO Certification pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	CEO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	CFO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101**	The following financial statements from the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2022, formatted in inline XBRL, include: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income, (iii) Condensed Consolidated Statements of Stockholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows and (v) the Notes to the Condensed Consolidated Financial Statements.
104**	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

*    Filed herewith.

**    Submitted electronically with the report.

†    Corrected version of exhibit previously filed as Exhibit 21.1 to the Company's 2021 Form 10-K, as updated to March 31, 2022.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 5, 2022

INSTALLED BUILDING PRODUCTS, INC.
By:	/s/ Jeffrey W. Edwards
	Jeffrey W. Edwards
	President and Chief Executive Officer
By:	/s/ Michael T. Miller
	Michael T. Miller
	Executive Vice President and Chief Financial Officer

EX-21.1

Exhibit 21.1

Significant Subsidiaries of Installed Building Products, Inc.

Name	Jurisdiction of Organization
5 Star Building Products LLC	Utah
5 Star Building Products of Southern Utah, LLC	Utah
A+ Insulation of Kansas City, LLC	Delaware
Accurate Insulation LLC	Maryland
Accurate Insulation of Colorado, LLC	Delaware
Accurate Insulation of Delaware, LLC	Delaware
Accurate Insulation of Upper Marlboro, LLC	Delaware
Advanced Fiber, LLC	Delaware
Advanced Insulation, LLC	Delaware
Alert Insulation of California, LLC	Delaware
All Construction Services, LLC	Delaware
All in One & Moore Building Systems, LLC	Delaware
Alpha Insulation & Water Proofing Company	Georgia
Alpha Insulation & Water Proofing, Inc.	Texas
Alpine Construction of Colorado, LLC	Ohio
Alpine Insulation I, LLC	Delaware
AMD Distribution Services, LLC	Delaware
American Insulation & Energy Services, LLC	Alabama
Any Season Insulation, LLC	Delaware
Apple Valley Insulation, a BDI Company, Inc.	California
Aster Contractors Holdings, LLC	Delaware
Astro Insulation of Illinois, LLC	Delaware
Baytherm Insulation, LLC	Delaware
BDI Insulation of Idaho Falls, Inc.	Idaho
BDI Insulation of Salt Lake, L.L.C.	Utah
Big City Insulation of Idaho, Inc.	Idaho
Big City Insulation, Inc.	Utah
B-Organized Insulation, LLC	Delaware
Broken Drum Insulation Visalia, Inc.	California
Broken Drum of Bakersfield, Inc.	California
Builders Installed Products of Maine, LLC	Delaware
Builders Installed Products of New Hampshire, LLC	Delaware
Builders Installed Products of New York, LLC	Delaware
Builders Installed Products of Vermont, LLC	Delaware
Building Materials Finance, Inc.	Delaware
C.Q. Insulation, Inc.	Florida
CFI Insulation, Inc.	Tennessee

CLS Insulation, LLC	Delaware
Cornhusker Insulation, LLC	Delaware
Division 7 8 9 Supply, LLC	Delaware
East Coast Insulators II, LLC	Delaware
Eastern Contractor Services Limited Liability Company	New Jersey
Ecologic Energy Solutions, LLC	Delaware
Edwards/Mooney & Moses, LLC	Delaware
Elite Spray Foam of Las Vegas, LLC	Delaware
EMPER Holdings, LLC	Delaware
Energy Savers of Louisville, LLC	Delaware
Expert Insulation of Minnesota, LLC	Delaware
FiberClass Insulation, LLC	Delaware
First State Building Products, LLC	Delaware
Fort Wayne Urethane, LLC	Delaware
Garage Door Systems, LLC	Delaware
Gold Insulation, Inc.	Delaware
Gold Star Insulation, L.P.	Delaware
Green Star Plus Insulation, LLC	Delaware
G-T-G, LLC	South Carolina
Gulf Coast Insulation, LLC	Delaware
Hinkle Insulation & Drywall Company, Incorporated	Texas
Horizon Electric Services, LLC	Delaware
I.W. International Insulation Incorporated	Washington
IBHL A Holding Company, Inc.	Delaware
IBHL B Holding Company, Inc.	Delaware
IBHL II-A Holding Company, Inc.	Delaware
IBHL II-B Holding Company, Inc.	Delaware
IBP Arctic Express, LLC	Delaware
IBP Asset II, LLC	Delaware
IBP Asset, LLC	Delaware
IBP Corporation Holdings, Inc.	Delaware
IBP Exteriors, Inc.	New Jersey
IBP Holdings II, LLC	Delaware
IBP Holdings, LLC	Delaware
IBP Legacy Glass & Supply, LLC	Delaware
IBP Logistics, LLC	Delaware
IBP of Mansfield, LLC	Delaware
IBP of Oklahoma, LLC	Delaware
IBP of San Antonio, LLC	Delaware
IBP of Toledo, LLC	Delaware
IBP Rating Services, LLC	Texas

IBP Texas Assets I, LLC	Delaware
IBP Texas Assets II, LLC	Delaware
IBP Texas Assets III, LLC	Delaware
Installed Building Products – Panhandle, LLC	Delaware
Installed Building Products – Portland, LLC	Oregon
Installed Building Products Distribution Services, LLC	Delaware
Installed Building Products II, LLC	Delaware
Installed Building Products of Fort Myers, LLC	Delaware
Installed Building Products of Houston, LLC	Delaware
Installed Building Products of Jacksonville, LLC	Delaware
Installed Building Products of Maine, LLC	Delaware
Installed Building Products of Miami, LLC	Delaware
Installed Building Products of Tampa, LLC	Delaware
Installed Building Products of Utah, LLC	Delaware
Installed Building Products of West Palm, LLC	Delaware
Installed Building Products, LLC	Delaware
Installed Building Solutions II, LLC	Delaware
Insulation Contractors of Washington, LLC	Delaware
Insulation Northwest, LLC	Delaware
Insulation Wholesale Supply, LLC	Nevada
InsulVail, LLC	Colorado
Key Insulation of Austin, LLC	Delaware
Key Insulation of San Antonio, LLC	Delaware
Lakeside Insulation, LLC	Delaware
Layman Brothers Insulation, LLC	Delaware
LKS Transportation, LLC	Delaware
Loveday Insulation, LLC	Delaware
M&D Insulation, LLC	Delaware
MAP Installed Building Products of Sagamore, LLC	Delaware
MAP Installed Building Products of Seekonk, LLC	Delaware
Marv’s Insulation, Inc.	Idaho
Metro Home Insulation, LLC	Delaware
Mid South Construction and Building Products, Inc.	Georgia
Mid-Atlantic Insulation, LLC	Delaware
MIG Building Systems of East Syracuse, LLC	Delaware
MIG Building Systems, LLC	Delaware
Momper Insulation of Crown Point, LLC	Delaware
Momper Insulation of Elkhart, LLC	Delaware
Momper Insulation of Fort Wayne, LLC	Delaware
Norkote of Washington, LLC	Delaware
Northwest Insulation, LLC	Delaware

OJ Insulation Holdings, Inc.	Delaware
OJ Insulation, L.P.	Delaware
Pacific Partners Insulation North, a BDI Company, LLC	Washington
Pacific Partners Insulation South, a BDI Company, LLC	Washington
Parker Insulation and Building Products, LLC	Texas
PEG, LLC	Texas
Pisgah Insulation and Fireplaces of NC, LLC	North Carolina
Premier Building Supply SLC, LLC	Utah
Premier Building Supply, LLC	Utah
RaJan, LLC	Ohio
Rocket Insulation, LLC	Delaware
Rockford Insulation, LLC	Delaware
Royals Commercial of Maryland, LLC	Delaware
SCE of Chicago, LLC	Delaware
Sierra Insulation Contractors II, LLC	Delaware
Southern Insulators, LLC	Delaware
Spec 7 Insulation Co., LLC	Colorado
Suburban Insulation, Inc.	Pennsylvania
Superior Insulation Services, LLC	Delaware
Superior Insulation, LLC	Delaware
TCI Contracting of Charleston, LLC	Delaware
TCI Contracting of Hilton Head, LLC	Delaware
TCI Contracting of Kentucky, LLC	Delaware
TCI Contracting of Memphis, LLC	Delaware
TCI Contracting of Nashville, LLC	Delaware
TCI Contracting of the Gulf, LLC	Delaware
TCI Contracting, LLC	Georgia
Thermal Control Insulation, LLC	Ohio
Therm-Con of Tennessee, LLC	Delaware
Tidewater Insulators, LLC	Delaware
Town Building Systems, LLC	Delaware
Trademark Roofing Company, Inc.	North Carolina
Trademark Seamless Gutter Company, Inc.	North Carolina
Trilok Industries, Inc.	Georgia
U.S. Insulation Corp.	Connecticut
Water-Tite Company, LLC	Delaware
WeatherSeal Company, LLC	Delaware
Wilson Insulation Company, LLC	Georgia

EX-31.1

Exhibit 31.1

INSTALLED BUILDING PRODUCTS, INC.

Certification Required by Rule 13a-14(a) or 15d-14(a)

of the Securities Exchange Act of 1934

I, Jeffrey W. Edwards, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Installed Building Products, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	May 5, 2022	By:	/s/ Jeffrey W. Edwards
			Jeffrey W. Edwards
			President and Chief Executive Officer

EX-31.2

Exhibit 31.2

INSTALLED BUILDING PRODUCTS, INC.

Certification Required by Rule 13a-14(a) or 15d-14(a)

of the Securities Exchange Act of 1934

I, Michael T. Miller, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Installed Building Products, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	May 5, 2022	By:	/s/ Michael T. Miller
			Michael T. Miller
			Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

INSTALLED BUILDING PRODUCTS, INC.

Certification Required by Rule 13a-14(b) or 15d-14(b)

of the Securities Exchange Act of 1934 and

Section 1350 of Chapter 63 of Title 18 of the

United States Code

The certification set forth below is being submitted in connection with the Installed Building Products, Inc. Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 (the “Report”) for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code.

Jeffrey W. Edwards, the President and Chief Executive Officer, of Installed Building Products, Inc., certifies that, to the best of his knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of Installed Building Products, Inc.

Dated:	May 5, 2022	By:	/s/ Jeffrey W. Edwards
			Jeffrey W. Edwards
			President and Chief Executive Officer

EX-32.2

Exhibit 32.2

INSTALLED BUILDING PRODUCTS, INC.

Certification Required by Rule 13a-14(b) or 15d-14(b)

of the Securities Exchange Act of 1934 and

Section 1350 of Chapter 63 of Title 18 of the

United States Code

The certification set forth below is being submitted in connection with the Installed Building Products, Inc. Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 (the “Report”) for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code.

Michael T. Miller, the Executive Vice President and Chief Financial Officer, of Installed Building Products, Inc., certifies that, to the best of his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of Installed Building Products, Inc.

Dated:	May 5, 2022	By:	/s/ Michael T. Miller
			Michael T. Miller
			Executive Vice President and Chief Financial Officer

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2022	Apr. 28, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-36307
Entity Registrant Name	Installed Building Products, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-3707650
Entity Address, Address Line One	495 South High Street
Entity Address, Address Line Two	Suite 50
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43215
City Area Code	614
Local Phone Number	221-3399
Title of 12(b) Security	Common Stock,
Trading Symbol	IBP
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		29,295,555
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001580905
Current Fiscal Year End Date	--12-31

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 217,434	$ 333,485
Investments	49,980	0
Accounts receivable (less allowance for credit losses of $8,590 and $8,717 at March 31, 2022 and December 31, 2021, respectively)	345,586	312,767
Inventories	160,023	143,039
Prepaid expenses and other current assets	69,205	70,025
Total current assets	842,228	859,316
Non-current assets
Property and equipment, net	107,817	105,933
Operating lease right-of-use assets	69,033	69,871
Goodwill	325,347	322,517
Customer relationships, net	257,960	264,421
Other non-current assets	50,364	31,144
Total assets	1,652,749	1,653,202
Current liabilities
Current maturities of long-term debt	30,668	30,839
Current maturities of operating lease obligations	23,505	23,224
Current maturities of finance lease obligations	1,801	1,747
Accounts payable	150,643	132,705
Accrued compensation	56,639	50,964
Other current liabilities	64,272	68,090
Total current liabilities	327,528	307,569
Long-term debt	829,638	832,193
Operating lease obligations	45,091	46,075
Finance lease obligations	3,254	3,297
Deferred income taxes	11,242	4,819
Other long-term liabilities	45,765	42,409
Total liabilities	1,262,518	1,236,362
Commitments and contingencies
Stockholders’ equity
Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively	0	0
Common stock; $0.01 par value: 100,000,000 authorized, 33,351,843 and 33,271,659 issued and 29,275,592 and 29,706,401 shares outstanding at March 31, 2022 and December 31, 2021, respectively	334	333
Additional paid in capital	218,642	211,430
Retained earnings	350,475	352,543
Treasury stock; at cost: 4,076,251 and 3,565,258 shares at March 31, 2022 and December 31, 2021, respectively	(197,104)	(147,239)
Accumulated other comprehensive income (loss)	17,884	(227)
Total stockholders’ equity	390,231	416,840
Total liabilities and stockholders’ equity	1,652,749	1,653,202
Customer relationships
Non-current assets
Customer relationships, net	173,868	178,264
Intangible Assets Excluding Customer Relationships
Non-current assets
Customer relationships, net	$ 84,092	$ 86,157

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets
Allowance for credit losses	$ 8,590	$ 8,717
Stockholders’ equity
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	33,351,843	33,271,659
Common stock, shares outstanding (in shares)	29,275,592	29,706,401
Treasury Stock (in shares)	4,076,251	3,565,258

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Net revenue	$ 587,492	$ 437,066
Cost of sales	415,089	311,639
Gross profit	172,403	125,427
Operating expenses
Selling	25,192	20,858
Administrative	79,144	65,077
Amortization	11,097	8,396
Operating income	56,970	31,096
Other expense, net
Interest expense, net	10,600	7,574
Other expense	145	81
Income before income taxes	46,225	23,441
Income tax provision	12,403	6,150
Net income	33,822	17,291
Other comprehensive income, net of tax:
Net change on cash flow hedges, net of tax provision of $6,430 and $3,428 for the three months ended March 31, 2022 and 2021, respectively	18,111	10,157
Comprehensive income	$ 51,933	$ 27,448
Basic net income per share (in USD per share)	$ 1.15	$ 0.59
Diluted net income per share (in USD per share)	$ 1.14	$ 0.58
Weighted average shares outstanding:
Basic (in shares)	29,302,396	29,286,044
Diluted (in shares)	29,580,731	29,613,484
Cash dividends declared per share (in USD per share)	$ 1.22	$ 0.30

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Unrealized loss on cash flow hedge, tax benefit	$ 6,430	$ 3,428

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid In Capital	Retained Earnings	Treasury Stock	Accumulated  Other Comprehensive Income (Loss)
BEGINNING BALANCE (in shares) at Dec. 31, 2020		33,141,879
BEGINNING BALANCE at Dec. 31, 2020	$ 319,182	$ 331	$ 199,847	$ 269,420		$ (8,763)
BEGINING BALANCE, Treasury Stock (in shares) at Dec. 31, 2020					(3,518,607)
BEGINING BALANCE, Treasury Stock at Dec. 31, 2020					$ (141,653)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	17,291			17,291
Issuance of common stock awards to employees (in shares)		66,203
Issuance of common stock awards to employees	0	$ 0
Surrender of common stock awards (in shares)					(274)
Surrender of common stock awards	0				$ 0
Share-based compensation expense	2,713		2,713
Share-based compensation issued to directors	102		102
Dividends declared	$ (8,907)			(8,907)
Common stock repurchase (in shares)	0
Other comprehensive income (loss), net of tax	$ 10,157					10,157
ENDING BALANCE (in shares) at Mar. 31, 2021		33,208,082
ENDING BALANCE at Mar. 31, 2021	$ 340,538	$ 331	202,662	277,804		1,394
ENDING BALANCE, Treasury Stock (in shares) at Mar. 31, 2021					(3,518,881)
ENDING BALANCE, Treasury Stock at Mar. 31, 2021					$ (141,653)
BEGINNING BALANCE (in shares) at Dec. 31, 2021	33,271,659	33,271,659
BEGINNING BALANCE at Dec. 31, 2021	$ 416,840	$ 333	211,430	352,543		(227)
BEGINING BALANCE, Treasury Stock (in shares) at Dec. 31, 2021	(3,565,258)				(3,565,258)
BEGINING BALANCE, Treasury Stock at Dec. 31, 2021	$ (147,239)				$ (147,239)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	33,822			33,822
Issuance of common stock awards to employees (in shares)		40,980
Issuance of common stock awards to employees	0	$ 1	(1)
Surrender of common stock awards (in shares)					(50)
Surrender of common stock awards	0				$ 0
Share-based compensation expense	3,089		3,089
Share-based compensation issued to directors	124		124
Issuance of awards previously classified as liability awards (in shares)		39,204
Issuance of awards previously classified as liability awards	4,000		4,000
Dividends declared	$ (35,890)			(35,890)
Common stock repurchase (in shares)	(511,000)				(510,943)
Common stock repurchase	$ (49,865)				$ (49,865)
Other comprehensive income (loss), net of tax	$ 18,111					18,111
ENDING BALANCE (in shares) at Mar. 31, 2022	33,351,843	33,351,843
ENDING BALANCE at Mar. 31, 2022	$ 390,231	$ 334	$ 218,642	$ 350,475		$ 17,884
ENDING BALANCE, Treasury Stock (in shares) at Mar. 31, 2022	(4,076,251)				(4,076,251)
ENDING BALANCE, Treasury Stock at Mar. 31, 2022	$ (197,104)				$ (197,104)

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares				3 Months Ended
	Feb. 23, 2022	Feb. 22, 2022	Feb. 22, 2021	Mar. 31, 2022	Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared (in USD per share)	$ 0.90	$ 0.315	$ 0.30	$ 1.22	$ 0.30

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities
Net income	$ 33,822	$ 17,291
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization of property and equipment	11,329	10,663
Amortization of operating lease right-of-use assets	6,371	5,050
Amortization of intangibles	11,097	8,396
Amortization of deferred financing costs and debt discount	484	331
Provision for credit losses	653	127
Gain on sale of property and equipment	(92)	(252)
Noncash stock compensation	3,418	3,196
Amortization of terminated interest rate swap	790	798
Changes in assets and liabilities, excluding effects of acquisitions
Accounts receivable	(32,700)	1,056
Inventories	(16,300)	(7,644)
Other assets	169	(1,794)
Accounts payable	16,486	524
Income taxes receivable/payable	11,433	4,633
Other liabilities	1,265	(4,757)
Net cash provided by operating activities	48,225	37,618
Cash flows from investing activities
Payments to Acquire Investments	(49,957)	0
Purchases of property and equipment	(10,362)	(10,846)
Acquisitions of businesses, net of cash acquired of $0 and $168 in 2022 and 2021, respectively	(8,050)	(41,930)
Proceeds from sale of property and equipment	265	389
Other	(614)	(5)
Net cash used in investing activities	(68,718)	(52,392)
Cash flows from financing activities
Payments on Term Loan	(1,250)	0
Proceeds from vehicle and equipment notes payable	4,752	7,808
Debt issuance costs	(627)	0
Principal payments on long-term debt	(6,618)	(6,481)
Principal payments on finance lease obligations	(521)	(530)
Dividends paid	(35,426)	(8,786)
Acquisition-related obligations	(6,003)	(1,414)
Repurchase of common stock	(49,865)	0
Net cash used in financing activities	(95,558)	(9,403)
Net change in cash and cash equivalents	(116,051)	(24,177)
Cash and cash equivalents at beginning of period	333,485	231,520
Cash and cash equivalents at end of period	217,434	207,343
Supplemental disclosures of cash flow information
Interest	14,293	10,839
Income taxes, net of refunds	1,088	1,474
Supplemental disclosure of noncash activities
Right-of-use assets obtained in exchange for operating lease obligations	5,514	5,679
Property and equipment obtained in exchange for finance lease obligations	544	268
Seller obligations in connection with acquisition of businesses	1,878	5,959
Unpaid purchases of property and equipment included in accounts payable	$ 1,884	$ 1,043

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from investing activities
Cash acquired, net	$ 0	$ 168

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Organization

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

ORGANIZATION

Installed Building Products (“IBP”), a Delaware corporation formed on October 28, 2011, and its wholly-owned subsidiaries (collectively referred to as the “Company,” and “we,” “us” and “our”) primarily install insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company operates in more than 210 locations and its corporate office is located in Columbus, Ohio.

In the first quarter of 2022, we realigned our operating segments to reflect recent changes in our business. We have three operating segments consisting of our Installation, Manufacturing and Distribution operations. The Installation operating segment is also our one reportable segment. See Note 10, Information on Segments, for further information.

Substantially all of our Installation segment sales are derived from the service-based installation of various products in the residential new construction, repair and remodel and commercial construction end markets from our national network of branch locations. Each of our Installation branches has the capacity to serve all of our end markets. See Note 3, Revenue Recognition, for information on our revenues by product and end market.

The COVID-19 pandemic ("COVID-19") has caused significant volatility, uncertainty and economic disruption. Public health organizations and international, federal, state and local governments responded by implementing measures during various points of the pandemic to contain the spread of COVID-19. We do not believe the various orders and restrictions significantly impacted our business in the first three months of 2022. However, COVID-19 has caused disruptions in the building products supply chain, impacting our ability to purchase certain materials we install through typical channels and fueling producer price and consumer inflation. The extent to which COVID-19 will impact our future growth, operations, customers, suppliers, employees and financial results is uncertain. The future impact on our financial results will depend on numerous factors including government actions and the resulting impact on construction activity, the effect on our customers’ demand for our services, the effects on our supply chain for materials, and the ability of our customers to pay for our services.

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Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Significant Accounting Policies

SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements include all of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated.

The information furnished in the Condensed Consolidated Financial Statements includes normal recurring adjustments and reflects all adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations and statements of financial position for the interim periods presented. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) have been omitted pursuant to such rules and regulations. We believe that the disclosures are adequate to prevent the information presented from being misleading when read in conjunction with our audited consolidated financial statements and the notes thereto included in Part II, Item 8, Financial Statements and Supplementary Data, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the “2021 Form 10-K”), as filed with the SEC on February 24, 2022. The December 31, 2021 Condensed Consolidated Balance Sheet data herein was derived from the audited consolidated financial statements but does not include all disclosures required by U.S. GAAP.

Our interim operating results for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected in future operating quarters.

Note 2 to the audited consolidated financial statements in our 2021 Form 10-K describes the significant accounting policies and estimates used in preparation of the audited consolidated financial statements. Other than the recently implemented accounting policies described below, there have been no changes to our significant accounting policies during the three months ended March 31, 2022.

Reclassifications

The change in reportable segments described in Note 1, Organization and Note 10, Information on Segments, requires certain prior year disclosures in Note 3, Revenue Recognition and Note 6, Goodwill and Intangibles to be recast to conform to the current year presentation.

Recently Issued Accounting Pronouncements Not Yet Adopted

We are currently evaluating the impact of the following Accounting Standards Update ("ASU") on our Condensed Consolidated Financial Statements or Notes to Condensed Consolidated Financial Statements:

Standard	Description	Effective Date	Effect on the financial statements or other significant matters
ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers	This pronouncement amends Topic 805 to require an acquirer to account for revenue contracts in a business combination in accordance with Topic 606 as if the acquirer had originated the contracts.	Annual periods beginning after December 15, 2022, including interim periods therein. Early adoption is permitted.	We are currently assessing the impact of adoption on our consolidated financial statements.

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Revenue Recognition

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

Revenues for our Installation operating segment are derived primarily through contracts with customers whereby we install insulation and other complementary building products and are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We offer assurance-type warranties on certain of our installed products and services that do not represent a separate performance obligation and, as such, do not impact the timing or extent of revenue recognition.

For contracts that are not complete at the reporting date, we recognize revenue over time utilizing a cost-to-cost input method as we believe this represents the best measure of when goods and services are transferred to the customer. When this method is used, we estimate the costs to complete individual contracts and record as revenue that portion of the total contract price that is considered complete based on the relationship of costs incurred to date to total anticipated costs. Under the cost-to-cost method, the use of estimated costs to complete each contract is a significant variable in the process of determining recognized revenue, requires judgment and can change throughout the duration of a contract due to contract modifications and other factors impacting job completion. The costs of earned revenue include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools and repairs. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined.

Our long-term contracts can be subject to modification to account for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Most of our contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis.

Payment terms typically do not exceed 30 days for short-term contracts and typically do not exceed 60 days for long-term contracts with customers. All contracts are billed either contractually or as work is performed. Billing on our long-term contracts occurs primarily on a monthly basis throughout the contract period whereby we submit invoices for customer payment based on actual or estimated costs incurred during the billing period. On certain of our long-term contracts the customer may withhold payment on an invoice equal to a percentage of the invoice amount, which will be subsequently paid after satisfactory completion of each installation project. This amount is referred to as retainage and is common practice in the construction industry, as it allows for customers to ensure the quality of the service performed prior to full payment. Retainage receivables are classified as current or long-term assets based on the expected time to project completion.

Revenues for our Distribution and Manufacturing operating segments included in the Other category are accounted for on a point-in-time basis when the sale occurs, adjusted accordingly for any return provisions. Sales taxes are not included in revenue as we act as a conduit for collecting and remitting sales taxes to the appropriate government authorities. The point-in-time recognition is when we transfer the promised products to the customer and the customer obtains control of the products depending upon the agreed upon terms in the contract.

We disaggregate our revenue from contracts with customers for our Installation segment by end market and product, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenues for the Other category are presented net of intercompany sales in the tables below. The following tables present our net revenues disaggregated by end market and product (in thousands):

	Three months ended March 31,
	2022				2021
Installation:
Residential new construction	$	442,404	75	%	$	327,244	75	%
Repair and remodel	32,641		6	%	28,289		6	%
Commercial	86,586		15	%	76,645		18	%
Net revenue, Installation	$	561,631	96	%	$	432,178	99	%
Other (1)	25,861		4	%	4,888		1	%
Net revenue, as reported	$	587,492	100	%	$	437,066	100	%

	Three months ended March 31,
	2022				2021
Installation:
Insulation	$	364,943	63	%	$	278,568	63	%
Waterproofing	29,022		5	%	29,949		7	%
Shower doors, shelving and mirrors	36,340		6	%	31,433		7	%
Garage doors	35,979		6	%	24,439		6	%
Rain gutters	23,546		4	%	19,003		4	%
Fireproofing/firestopping	15,922		3	%	12,435		3	%
Window blinds	13,058		2	%	11,534		3	%
Other building products	42,821		7	%	24,817		6	%
Net revenue, Installation	$	561,631	96	%	$	432,178	99	%
Other (1)	25,861		4	%	4,888		1	%
Net revenue, as reported	$	587,492	100	%	$	437,066	100	%

(1) Net revenue for manufacturing operations are included in the Other category for all periods presented to conform with our change in composition of operating segments.

Contract Assets and Liabilities

Our contract assets consist of unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized, based on costs incurred, exceeds the amount billed to the customer. Our contract assets are recorded in other current assets in our Condensed Consolidated Balance Sheets. Our contract liabilities consist of customer deposits and billings in excess of revenue recognized, based on costs incurred and are included in other current liabilities in our Condensed Consolidated Balance Sheets.

Contract assets and liabilities related to our uncompleted contracts and customer deposits were as follows (in thousands):

	March 31, 2022		December 31, 2021
Contract assets	$	40,160	$	32,679
Contract liabilities	(14,756)		(14,153)

Uncompleted contracts were as follows (in thousands):

	March 31, 2022		December 31, 2021
Costs incurred on uncompleted contracts	$	222,594	$	206,050
Estimated earnings	103,461		106,163
Total	326,055		312,213
Less: Billings to date	292,445		285,978
Net under billings	$	33,610	$	26,235

Net under billings were as follows (in thousands):

	March 31, 2022		December 31, 2021
Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets)	$	40,160	$	32,679
Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities)	(6,550)		(6,444)
Net under billings	$	33,610	$	26,235

The difference between contract assets and contract liabilities as of March 31, 2022 compared to December 31, 2021 is primarily the result of timing differences between our performance of obligations under contracts and customer payments. During the three months ended March 31, 2022, we recognized $10.4 million of revenue that was included in the contract liability balance at December 31, 2021. We did not recognize any impairment losses on our receivables and contract assets during the three months ended March 31, 2022 or 2021.

Remaining performance obligations represent the transaction price of contracts for which work has not been performed and excludes unexercised contract options and potential modifications. As of March 31, 2022, the aggregate amount of the transaction price allocated to remaining uncompleted contracts was $177.7 million. We expect to satisfy remaining performance obligations and recognize revenue on substantially all of these uncompleted contracts over the next 18 months.

Practical Expedients and Exemptions

We generally expense sales commissions and other incremental costs of obtaining a contract when incurred because the amortization period is usually one year or less. Sales commissions are recorded within selling expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income.

We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

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Credit Losses

3 Months Ended

Mar. 31, 2022

Credit Loss [Abstract]

Credit Losses

CREDIT LOSSES

Our expected loss allowance methodology for accounts receivable is developed using historical losses, current economic conditions and future market forecasts. We also perform ongoing evaluations of our existing and potential customer’s creditworthiness.

Changes in our allowance for credit losses were as follows (in thousands):

Balance as of January 1, 2022	$	8,717
Current period provision	653
Recoveries collected and additions	89
Amounts written off	(869)
Balance as of March 31, 2022	$	8,590

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Investments and Cash and Cash Equivalents

3 Months Ended

Mar. 31, 2022

Investments [Abstract]

INVESTMENTS AND CASH AND CASH EQUIVALENTS

INVESTMENTS AND CASH AND CASH EQUIVALENTSCash and cash equivalents include highly liquid instruments with insignificant interest rate risk and original or remaining maturities of three months or less at the time of purchase. These instruments amounted to approximately $201.1 million and

$258.1 million as of March 31, 2022 and December 31, 2021, respectively. See Note 9, Fair Value Measurements, for additional information.

All other investments are classified as held-to-maturity and consist of highly liquid instruments, including commercial paper. As of March 31, 2022, the amortized cost of these investments equaled the net carrying value, which was approximately 50.0 million. All held-to-maturity securities as of March 31, 2022 mature in one year or less. We held no such investments as of December 31, 2021. See Note 9, Fair Value Measurements, for additional information.

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Goodwill and Intangibles

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles

GOODWILL AND INTANGIBLES

We anticipate that the COVID-19 pandemic could continue to have an impact on the homebuilding industry in general, as it could result in further business interruptions (government-mandated or otherwise) and could affect, among other factors, inflation, interest rates, employment levels, consumer spending and consumer confidence, which could decrease demand for homes, adversely affecting our business. As such, we considered whether impairment indicators arose through the date of filing of this Quarterly Report on Form 10-Q for our goodwill, long-lived assets and other intangible assets and concluded that no such factors existed to cause us to test for goodwill impairment during the three months ended March 31, 2022. While we ultimately concluded that our goodwill, long-lived assets and other intangibles assets were not impaired as of March 31, 2022, we will continue to assess impairment indicators related to the impact of the COVID-19 pandemic on our business.

Goodwill

In the first quarter of 2022, we changed our reporting units to align with our change in operating and reportable segments. See Note 10, Information on Segments, for details about our change in segment structure. Effective January 1, 2022, our Installation reporting unit is comprised of our Installation operating and reportable segment, and our Other category is comprised of our Manufacturing and Distribution operating segments which are also reporting units. All three reporting units contain goodwill and were previously combined and recorded as a single operating and reportable segment as of December 31, 2021.

The change in carrying amount of goodwill was as follows (in thousands):

	Installation		Other		Consolidated
Goodwill (gross) - January 1, 2022, after change in reporting units	$	331,782	$	60,739	$	392,521
Business combinations	2,830		—		2,830
Goodwill (gross) - March 31, 2022	334,612		60,739		395,351
Accumulated impairment losses	(70,004)		—		(70,004)
Goodwill (net) - March 31, 2022	$	264,608	$	60,739	$	325,347

For additional information regarding changes to goodwill resulting from acquisitions, see Note 17, Business Combinations.

We test goodwill for impairment annually during the fourth quarter of our fiscal year or earlier if there is an impairment indicator. Accumulated impairment losses included within the above table were incurred over multiple periods and were all associated with the Installation segment, with the latest impairment charge being recorded during the year ended December 31, 2010.

Intangibles, net

The following table provides the gross carrying amount, accumulated amortization and net book value for each major class of intangibles (in thousands):

	As of March 31,						As of December 31,
	2022						2021
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Amortized intangibles:
Customer relationships	$	295,239	$	121,371	$	173,868	$	292,113	$	113,849	$	178,264
Covenants not-to-compete	28,091		17,357		10,734		27,717		16,471		11,246
Trademarks and tradenames	104,142		34,248		69,894		103,007		32,623		70,384
Backlog	23,725		20,261		3,464		23,724		19,197		4,527
	$	451,197	$	193,237	$	257,960	$	446,561	$	182,140	$	264,421

The gross carrying amount of intangibles increased approximately $4.6 million during the three months ended March 31, 2022 primarily due to business combinations. For more information, see Note 17, Business Combinations. Remaining estimated aggregate annual amortization expense is as follows (amounts, in thousands, are for the fiscal year ended):

Remainder of 2022	$	31,315
2023	38,042
2024	34,122
2025	27,800
2026	23,842
Thereafter	102,839

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Long-Term Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Long-Term Debt

LONG-TERM DEBT

Long-term debt consisted of the following (in thousands):

	As of March 31,		As of December 31,
	2022		2021
Senior Notes due 2028, net of unamortized debt issuance costs of $3,484 and $3,633, respectively	$	296,516	$	296,367
Term loan, net of unamortized debt issuance costs of $6,495 and $6,735, respectively	492,255		493,265
Vehicle and equipment notes, maturing through March 2027; payable in various monthly installments, including interest rates ranging from 1.9% to 4.8%	67,363		69,228
Various notes payable, maturing through March 2025; payable in various monthly installments, including interest rates ranging from 1.0% to 5.0%	4,172		4,172
	860,306		863,032
Less: current maturities	(30,668)		(30,839)
Long-term debt, less current maturities	$	829,638	$	832,193

Remaining required repayments of debt principal, gross of unamortized debt issuance costs, as of March 31, 2022 are as follows (in thousands):

Remainder of 2022	$	23,783
2023	25,722
2024	20,012
2025	16,560
2026	9,017
Thereafter	775,191

Asset-Based Lending Credit Agreement Amendment

In February 2022, we amended and extended the term of our asset-based lending credit agreement (the “ABL Credit Agreement”). The ABL Credit Agreement increased the commitment under the asset-based lending credit facility (the “ABL Revolver”) to $250.0 million from $200.0 million, and permits us to further increase the commitment amount up to $300.0 million. The amendment also extends the maturity date from September 26, 2024 to February 17, 2027. The ABL Revolver bears interest at either the base rate or the Secured Overnight Financing Rate ("Term SOFR"), at our election, plus a margin of 0.25% or 0.50% in the case of base rate loans or 1.25% or 1.50% for Term SOFR advances (in each case based on a measure of availability under the ABL Credit Agreement). The amendment also allows for modification of specified fees dependent upon achieving certain sustainability targets, in addition to making other modifications to the ABL Credit Agreement. Including outstanding letters of credit, our remaining availability under the ABL Revolver as of March 31, 2022 was $205.7 million.

All of the obligations under the ABL Revolver are guaranteed by all of the Company’s existing restricted subsidiaries and will be guaranteed by the Company’s future restricted subsidiaries. Additionally, all obligations under the ABL Revolver, and the guarantees of those obligations, are secured by substantially all of the assets of the Company and the guarantors, subject to certain exceptions and permitted liens, including a first-priority security interest in such assets that constitute ABL Priority Collateral, as defined in the ABL Credit Agreement.

The ABL Revolver provides incremental revolving credit facility commitments of up to $50.0 million. The terms and conditions of any incremental revolving credit facility commitments must be no more favorable than the terms of the ABL Revolver. The ABL Revolver also allows for the issuance of letters of credit of up to $100.0 million in aggregate and borrowing of swingline loans of up to $25.0 million in aggregate.

The ABL Credit Agreement contains a financial covenant requiring the satisfaction of a minimum fixed charge coverage ratio of 1.0x in the event that we do not meet a minimum measure of availability under the ABL Revolver. The ABL Credit Agreement and the Term Loan Agreement contain restrictive covenants that, among other things, limit the ability of the Company and certain of our subsidiaries (subject to certain exceptions) to: (i) incur additional debt and issue preferred stock; (ii) pay dividends on, redeem or repurchase stock in an aggregate amount exceeding the greater of 2.0% of market capitalization per fiscal year or certain applicable restricted payment basket amounts; (iii) prepay subordinated debt; (iv) create liens; (v) make specified types of investments; (vi) apply net proceeds from certain asset sales; (vii) engage in transactions with affiliates; (viii) merge, consolidate or sell substantially all of our assets; and (ix) pay dividends and make other distributions from subsidiaries.

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Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

LEASESWe lease various assets in the ordinary course of business as follows: warehouses to store our materials and perform staging activities for certain products we install, various office spaces for selling and administrative activities to support our business, and certain vehicles and equipment to facilitate our operations, including, but not limited to, trucks, forklifts and office equipment.

The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets:

		As of March 31,			As of December 31,
(in thousands)	Classification	2022			2021
Assets
Non-Current
Operating	Operating lease right-of-use assets	$	69,033		$	69,871
Finance	Property and equipment, net	5,218			5,266
Total lease assets		$	74,251		$	75,137
Liabilities
Current
Operating	Current maturities of operating lease obligations	$	23,505		$	23,224
Financing	Current maturities of finance lease obligations	1,801			1,747
Non-Current
Operating	Operating lease obligations	45,091			46,075
Financing	Finance lease obligations	3,254			3,297
Total lease liabilities		$	73,651		$	74,343
Weighted-average remaining lease term:
Operating leases		4.2 years			4.3 years
Finance leases		3.4 years			3.3 years
Weighted-average discount rate:
Operating leases		3.47		%	3.38		%
Finance leases		4.91		%	4.96		%

Lease Costs

The table below presents certain information related to the lease costs for finance and operating leases:

		Three months ended March 31,
(in thousands)	Classification	2022		2021
Operating lease cost(1)	Administrative	$	7,759	$	6,350
Finance lease cost
Amortization of leased assets(2)	Cost of sales	716		792
Interest on finance lease obligations	Interest expense, net	61		55
Total lease costs		$	8,536	$	7,197

(1)Includes variable lease costs of $0.9 million and $0.7 million for the three months ended March 31, 2022 and 2021, respectively, and short-term lease costs of $0.3 million for both the three months ended March 31, 2022 and 2021, respectively.

(2)Includes variable lease costs of $0.2 million for each of the three months ended March 31, 2022 and 2021 .

Other Information

The table below presents supplemental cash flow information related to leases (in thousands):

	Three months ended March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	6,463	$	5,324
Operating cash flows for finance leases	61		55
Financing cash flows for finance leases	521		530

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet as of March 31, 2022 (in thousands):

	Finance Leases		Operating Leases
			Related Party		Other		Total Operating
Remainder of 2022	$	1,548	$	1,080	$	18,498	$	19,578
2023	1,559		1,001		19,602		20,603
2024	1,152		743		12,234		12,977
2025	784		610		7,371		7,981
2026	453		—		5,454		5,454
Thereafter	15		—		7,596		7,596
Total minimum lease payments	5,511		$	3,434	$	70,755	74,189
Less: Amounts representing executory costs	(20)						—
Less: Amounts representing interest	(436)						(5,593)
Present value of future minimum lease payments	5,055						68,596
Less: Current obligation under leases	(1,801)						(23,505)
Long-term lease obligations	$	3,254					$	45,091

Leases

LEASESWe lease various assets in the ordinary course of business as follows: warehouses to store our materials and perform staging activities for certain products we install, various office spaces for selling and administrative activities to support our business, and certain vehicles and equipment to facilitate our operations, including, but not limited to, trucks, forklifts and office equipment.

The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets:

		As of March 31,			As of December 31,
(in thousands)	Classification	2022			2021
Assets
Non-Current
Operating	Operating lease right-of-use assets	$	69,033		$	69,871
Finance	Property and equipment, net	5,218			5,266
Total lease assets		$	74,251		$	75,137
Liabilities
Current
Operating	Current maturities of operating lease obligations	$	23,505		$	23,224
Financing	Current maturities of finance lease obligations	1,801			1,747
Non-Current
Operating	Operating lease obligations	45,091			46,075
Financing	Finance lease obligations	3,254			3,297
Total lease liabilities		$	73,651		$	74,343
Weighted-average remaining lease term:
Operating leases		4.2 years			4.3 years
Finance leases		3.4 years			3.3 years
Weighted-average discount rate:
Operating leases		3.47		%	3.38		%
Finance leases		4.91		%	4.96		%

Lease Costs

The table below presents certain information related to the lease costs for finance and operating leases:

		Three months ended March 31,
(in thousands)	Classification	2022		2021
Operating lease cost(1)	Administrative	$	7,759	$	6,350
Finance lease cost
Amortization of leased assets(2)	Cost of sales	716		792
Interest on finance lease obligations	Interest expense, net	61		55
Total lease costs		$	8,536	$	7,197

(1)Includes variable lease costs of $0.9 million and $0.7 million for the three months ended March 31, 2022 and 2021, respectively, and short-term lease costs of $0.3 million for both the three months ended March 31, 2022 and 2021, respectively.

(2)Includes variable lease costs of $0.2 million for each of the three months ended March 31, 2022 and 2021 .

Other Information

The table below presents supplemental cash flow information related to leases (in thousands):

	Three months ended March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	6,463	$	5,324
Operating cash flows for finance leases	61		55
Financing cash flows for finance leases	521		530

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet as of March 31, 2022 (in thousands):

	Finance Leases		Operating Leases
			Related Party		Other		Total Operating
Remainder of 2022	$	1,548	$	1,080	$	18,498	$	19,578
2023	1,559		1,001		19,602		20,603
2024	1,152		743		12,234		12,977
2025	784		610		7,371		7,981
2026	453		—		5,454		5,454
Thereafter	15		—		7,596		7,596
Total minimum lease payments	5,511		$	3,434	$	70,755	74,189
Less: Amounts representing executory costs	(20)						—
Less: Amounts representing interest	(436)						(5,593)
Present value of future minimum lease payments	5,055						68,596
Less: Current obligation under leases	(1,801)						(23,505)
Long-term lease obligations	$	3,254					$	45,091

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Fair Value Measurements

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. During the periods presented, there were no transfers between fair value hierarchical levels.

Assets Measured at Fair Value on a Nonrecurring Basis

Certain assets, specifically other intangible and long-lived assets, are measured at fair value on a nonrecurring basis in periods subsequent to initial recognition. Assets measured at fair value on a nonrecurring basis as of March 31, 2022 and December 31, 2021 are categorized based on the lowest level of significant input to the valuation. The assets are measured at fair value when our impairment assessment indicates a carrying value for each of the assets in excess of the asset’s estimated fair value. Undiscounted cash flows, a Level 3 input, are utilized in determining estimated fair values. During each of the three months ended March 31, 2022 and 2021, we did not record any impairments on these assets required to be measured at fair value on a nonrecurring basis.

Estimated Fair Value of Financial Instruments

Accounts receivable, accounts payable and accrued liabilities as of March 31, 2022 and December 31, 2021 approximate fair value due to the short-term maturities of these financial instruments. The carrying amounts of certain long-term debt, including the Term Loan and ABL Revolver as of March 31, 2022 and December 31, 2021, approximate fair value due to the variable rate nature of the agreements. The carrying amounts of our operating lease right-of-use assets and the obligations associated with our operating and finance leases as well as our vehicle and equipment notes approximate fair value as of March 31, 2022 and December 31, 2021. All debt classifications represent Level 2 fair value measurements.

Derivative financial instruments are measured at fair value based on observable market information and appropriate valuation methods. Contingent consideration liabilities arise from future earnout payments to the sellers associated with certain acquisitions and are based on predetermined calculations of certain future results. These future payments are estimated by considering various factors, including business risk and projections. The contingent consideration liabilities are measured at fair value by discounting estimated future payments, calculated based on a weighted average of various future forecast scenarios, to their net present value.

The fair values of financial assets and liabilities that are recorded at fair value in the Condensed Consolidated Balance Sheets and not described above were as follows (in thousands):

	As of March 31, 2022								As of December 31, 2021
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Financial assets:
Cash equivalents	$	201,112	$	201,112	$	—	$	—	$	258,055	$	258,055	$	—	$	—
Derivative financial instruments	36,644		—		36,644		—		14,830		—		14,830		—
Total financial assets	$	237,756	$	201,112	$	36,644	$	—	$	272,885	$	258,055	$	14,830	$	—
Financial liabilities:
Contingent consideration	$	6,160	$	—	$	—	$	6,160	$	11,170	$	—	$	—	$	11,170
Derivative financial instruments	—		—		—		—		1,937		—		1,937		—
Total financial liabilities	$	6,160	$	—	$	—	$	6,160	$	13,107	$	—	$	1,937	$	11,170

See Note 5, Investments and Cash and Cash Equivalents, for more information on cash equivalents included in the table above. Also see Note 11, Derivatives and Hedging Activities, for more information on derivative financial instruments.

The change in fair value of the contingent consideration (a Level 3 input) was as follows (in thousands):

Contingent consideration liability - January 1, 2022	$	11,170
Preliminary purchase price	910
Fair value adjustments	(46)
Accretion in value	116
Settlement adjustments	(505)
Amounts paid to sellers	(5,485)
Contingent consideration liability - March 31, 2022	$	6,160

The accretion in value of contingent consideration liabilities is included within administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income.

The carrying value and associated fair value of financial assets and liabilities that are not recorded at fair value in the Condensed Consolidated Balance Sheets and not described above include our investments and Senior Notes. To estimate the fair value of our investments and Senior Notes, we utilized third-party quotes which are derived all or in part from model prices, external sources or market prices. The investments and Senior Notes represent a Level 2 fair value measurement and are as follows (in thousands):

	As of March 31, 2022				As of December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Investments	$	49,980	$	49,927	$	—	$	—
Senior Notes(1)	300,000		293,145		300,000		311,028

(1)Excludes the impact of unamortized debt issuance costs.

See Note 5, Investments and Cash and Cash Equivalents, for more information on investments included in the table above. Also see Note 7, Long-Term Debt, for more information on our Senior Notes.

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Information on Segments

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

INFORMATION ON SEGMENTS

INFORMATION ON SEGMENTSDuring the first quarter of 2022, our Chief Executive Officer, who is also our Chief Operating Decision Maker ("CODM"), changed the manner in which he reviews financial information for purposes of assessing business performance, managing the business and allocating resources. In conjunction with this change, we realigned our segment structure resulting in our Company having three operating segments consisting of Installation, Distribution and Manufacturing.

Our Installation operating segment represents the majority of our net revenue and gross profit and forms our one reportable segment. This operating segment represents the service-based installation of insulation and complementary building products in the residential new construction, repair and remodel and commercial construction end markets from our national network of branch locations. These branch locations have similar economic and operating characteristics including the nature of products and services offered, operating procedures and risks, customer bases, employee incentives, material procurement and shared corporate resources which led us to conclude that they combine to form one operating segment.

The Other category reported below reflects the operations of our two remaining operating segments, Distribution and Manufacturing, which do not meet the quantitative thresholds for separate reporting. Our Distribution operating segment includes our recently acquired distribution business that sells insulation and accessories primarily to installers of these products who operate in multiple end markets. Our Manufacturing operating segment consists of our cellulose insulation manufacturing operation which was previously combined with our Installation operating segment. In addition to sales of cellulose insulation, revenues from this operating segment consist of sales of asphalt and industrial fibers to distributors and installers of these products.

The key metrics used to assess the performance of our operating segments are revenue and adjusted gross profit as these are the metrics used by our CODM to review results, assess performance and allocate resources. We define adjusted gross profit as revenue less cost of sales, excluding depreciation and amortization. We do not report total assets or related depreciation and amortization expenses by segment because our CODM does not use this information to assess segment performance or allocate resources.

The Installation reportable segment includes substantially all of our net revenue from services while net revenue included in the Other category includes substantially all of our net revenue from sales of products. The intercompany sales from the Other category to the Installation reportable segment include a profit margin while our Installation segment records these transactions at cost.

The following table represents our segment information for the three months ended March 31, 2022 (in thousands):

	Installation		Other		Eliminations		Consolidated
Revenue	$	561,631	$	26,650	$	(789)	$	587,492
Cost of sales (exclusive of depreciation and amortization shown separately below)	385,692		19,373		(609)		404,456
Adjusted gross profit	175,939		7,277		(180)		183,036
Depreciation and amortization							10,633
Gross profit, as reported							172,403
Selling							25,192
Administrative							79,144
Amortization							11,097
Operating income							56,970
Interest expense, net							10,600
Other expense							145
Income before income taxes							$	46,225

The following table represents our segment information for the three months ended March 31, 2021 (in thousands):

	Installation		Other		Eliminations		Consolidated
Revenue	$	432,178	$	5,253	$	(365)	$	437,066
Cost of sales (exclusive of depreciation and amortization shown separately below)	297,832		4,067		(283)		301,616
Adjusted gross profit	134,346		1,186		(82)		135,450
Depreciation and amortization							10,023
Gross profit, as reported							125,427
Selling							20,858
Administrative							65,077
Amortization							8,396
Operating income							31,096
Interest expense, net							7,574
Other expense							81
Income before income taxes							$	23,441

The prior period disclosures in the above table have been recast to conform to the current period segment presentation.

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Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

DERIVATIVES AND HEDGING ACTIVITIES

Cash Flow Hedges of Interest Rate Risk

Our purpose for using interest rate derivatives is to add stability to interest expense and to manage our exposure to interest rate movements. During the three months ended March 31, 2022, we used interest rate swaps to hedge the variable cash flows associated with existing variable-rate debt. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. We do not use derivatives for trading or speculative purposes and we currently do not have any derivatives that are not designated as hedges. As of March 31, 2022, we have not posted any collateral related to these agreements.

As of March 31, 2022, we had three interest rate swaps. One interest rate swap began July 30, 2021 and has a fixed notional amount of $200.0 million, a fixed rate of 0.51% and a maturity date of April 15, 2030. We also had two interest rate swaps that began December 31, 2021, each with a fixed notional amount of $100.0 million, a fixed rate of 1.37%, and a maturity date of December 15, 2028. Together, these three swaps serve to hedge $400.0 million of the variable cash flows on our variable rate Term Loan through maturity. The assets and liabilities associated with these interest rate swaps are included in other non-current assets and other current liabilities on the Consolidated Balance Sheets at their fair value amounts as described in Note 9, Fair Value Measurements.

In August 2020, we terminated two then-existing interest rate swaps and one then-existing forward interest rate swap. During both the three months ended March 31, 2022 and 2021 we amortized $0.8 million of the $17.8 million unrealized loss existing at the time of termination to interest expense, net.

The changes in the fair value of derivatives designated, and that qualify, as cash flow hedges are recorded in other comprehensive income, net of tax on the Condensed Consolidated Statements of Operations and Comprehensive Income and in accumulated other comprehensive income (loss) on the Condensed Consolidated Balance Sheets and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. We had no such changes during the three months ended March 31, 2021 or 2022.

Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense, net as interest payments are made on our variable-rate debt and as terminated swaps are amortized. Over the next twelve months, we estimate that an additional $0.6 million will be reclassified as an increase to interest expense, net.

LIBOR is used as a reference rate for our interest rate swap agreements we use to hedge our interest rate exposure. The Intercontinental Exchange Benchmark Administration, the administrator of LIBOR, announced in March 2021 its intention to extend the publication of certain LIBOR settings, including the setting we use as a reference rate, to June 2023. In January

2020, the FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848) and in January 2021, the FASB subsequently issued ASU 2021-01, Reference Rate Reform - Scope, which clarified the scope and application of the original guidance. The purpose of this guidance is to provide relief for impacted areas as it relates to impending reference rate reform. We elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation.

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Stockholders' Equity

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

As of March 31, 2022 we had income of $17.9 million in accumulated other comprehensive income (loss) on our Condensed Consolidated Balance Sheets, comprised of the effective portion of the unrealized gain on our current interest rate swap of 27.2 million, net of taxes, less the unrealized loss on our terminated interest rate swaps of $(9.3) million, net of taxes. As of December 31, 2021 we had a loss of $(0.2) million in accumulated other comprehensive income (loss) on our Condensed Consolidated Balance Sheets, comprised of the unrealized loss on our terminated interest rate swaps of $(9.9) million, net of taxes, less the effective portion of the unrealized gain on our interest rate swaps of $9.7 million, net of taxes. For additional information, see Note 11, Derivatives and Hedging Activities.

During the three months ended March 31, 2022 we repurchased approximately 511 thousand shares of our common stock with an aggregate price of approximately $49.9 million, or $97.57 average price per share. We did not repurchase any shares during the three months ended March 31, 2021. On February 24, 2022, we announced that our board of directors authorized an extension of our stock repurchase program through March 1, 2023 and concurrently authorized an increase in the total amount of our outstanding common stock we can purchase up to $200.0 million. As of March 31, 2022, we have $150.1 million remaining on our current stock repurchase program. The effect of these treasury shares in reducing the number of common shares outstanding is reflected in our earnings per share calculation.

Dividends

During the three months ended March 31, 2022, we declared and paid the following cash dividends (amount declared and amount paid in thousands):

Declaration Date	Record Date	Payment Date	Dividend Per Share		Amount Declared		Amount Paid
2/24/2022	3/15/2022	3/31/2021	$	0.90	$	26,585	$	26,242
2/24/2022	3/15/2022	3/31/2021	0.315		9,305		9,184

During the three months ended March 31, 2021, we declared and paid the following cash dividends (amount declared and amount paid in thousands):

Declaration Date	Record Date	Payment Date	Dividend Per Share		Amount Declared		Amount Paid
2/23/2021	3/15/2021	3/31/2021	$	0.30	$	8,907	$	8,786

The amount of dividends declared may vary from the amount of dividends paid in a period due to the vesting of restricted stock awards and performance share awards, which accrue dividend equivalent rights that are paid when the award vests. The payment of future dividends will be at the discretion of our board of directors and will depend on our future earnings, capital requirements, financial condition, future prospects, results of operations, contractual restrictions, legal requirements, and other factors deemed relevant by our board of directors.

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Employee Benefits

3 Months Ended

Mar. 31, 2022

Postemployment Benefits [Abstract]

Employee Benefits

EMPLOYEE BENEFITS

Healthcare

We participate in multiple healthcare plans, the largest of which is partially self-funded with an insurance company paying benefits in excess of stop loss limits per individual/family. Our healthcare benefit expense (net of employee contributions) was $8.9 million and $7.2 million for the three months ended March 31, 2022 and 2021, respectively. An accrual for estimated

healthcare claims incurred but not reported (“IBNR”) is included within accrued compensation on the Condensed Consolidated Balance Sheets and was $3.6 million and $3.3 million as of March 31, 2022 and December 31, 2021, respectively.

Workers’ Compensation

Workers’ compensation expense totaled $5.7 million and $4.2 million for the three months ended March 31, 2022 and 2021, respectively. Workers’ compensation known claims and IBNR reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands):

	March 31, 2022		December 31, 2021
Included in other current liabilities	$	7,166	$	8,048
Included in other long-term liabilities	15,509		13,397
	$	22,675	$	21,445

We also had an insurance receivable for claims that exceeded the stop loss limit under our self-insured policies as well as claims under our fully insured policies included on the Condensed Consolidated Balance Sheets. This receivable offsets an equal liability included within the reserve amounts noted above and was as follows (in thousands):

	March 31, 2022		December 31, 2021
Included in other non-current assets	$	2,377	$	2,137

Retirement Plans

We participate in multiple 401(k) plans, whereby we provide a matching contribution of wages deferred by employees and can also make discretionary contributions to each plan. Certain plans allow for discretionary employer contributions only. These plans cover substantially all our eligible employees. We recognized 401(k) plan expenses of $0.8 million and $0.7 million during the three months ended March 31, 2022 and 2021, respectively. These expenses are included in administrative expenses on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.

Multiemployer Pension Plans

We participate in various multiemployer pension plans under collective bargaining agreements in Washington, Oregon, California and Illinois with other companies in the construction industry. These plans cover our union-represented employees and contributions to these plans are expensed as incurred. These plans generally provide for retirement, death and/or termination benefits for eligible employees within the applicable collective bargaining units, based on specific eligibility/participation requirements, vesting periods and benefit formulas. We do not participate in any multiemployer pension plans that are considered to be individually significant.

Share-Based Compensation

Common Stock Awards

We periodically grant shares of our common stock to non-employee members of our board of directors and our employees. During the three months ended March 31, 2022 and 2021, we did not grant any such shares under our 2014 Omnibus Incentive Plan to non-employee members of our board of directors.

Employees – Performance-Based Stock Awards

During the three months ended March 31, 2022, we issued approximately 41 thousand shares of our common stock to certain officers, which vest in two equal installments on each of April 20, 2023 and April 20, 2024. In addition, during the three months ended March 31, 2022, we established, and our board of directors approved, performance-based targets in connection with common stock awards to be issued to certain officers in 2023 contingent upon achievement of these targets.

In addition, there are long-term performance-based restricted stock awards to be issued to certain employees annually through 2024 contingent upon achievement of certain performance targets. These awards are accounted for as liability-based awards since they represent a predominantly-fixed monetary amount that will be settled with a variable number of common shares in the first quarter of 2025 and as such are included in other long-term liabilities on the Condensed Consolidated Balance Sheets.

During the three months ended March 31, 2022 and 2021, we granted approximately 39 thousand and five thousand shares of our common stock, respectively, which will vest in the second quarter of 2022.

Employees – Performance-Based Restricted Stock Units

During 2021, we established, and our board of directors approved, performance-based restricted stock units in connection with common stock awards to be issued to certain employees in 2022 based upon achievement of a performance target. These units will be accounted for as equity-based awards that will be settled with a fixed number of common shares.

Share-Based Compensation Summary

Amounts and changes for each category of equity-based award were as follows:

	Common Stock Awards			Performance-Based Stock Awards			Performance-Based Restricted Stock Units
	Awards	Weighted Average Grant Date Fair Value Per Share		Awards	Weighted Average Grant Date Fair Value Per Share		Units	Weighted Average Grant Date Fair Value Per Share
Nonvested awards/units at December 31, 2021	199,353	$	68.99	143,401	$	81.30	8,252	$	126.89
Granted	39,204	102.98		54,585	102.98		—	—
Forfeited/Cancelled	(50)	126.89		—	—		(191)	126.89
Nonvested awards/units at March 31, 2022	238,507	$	74.57	197,986	$	87.28	8,061	$	126.89

The following table summarizes the share-based compensation expense recognized under our 2014 Omnibus Incentive Plan (in thousands):

	Three months ended March 31,
	2022		2021
Common Stock Awards	$	1,531	$	1,120
Non-Employee Common Stock Awards	124		102
Performance-Based Stock Awards	1,315		1,148
Liability Performance-Based Stock Awards	206		705
Performance-Based Restricted Stock Units	242		121
	$	3,418	$	3,196

We recorded the following stock compensation expense by income statement category (in thousands):

	Three months ended March 31,
	2022		2021
Cost of sales	$	149	$	62
Selling	62		51
Administrative	3,207		3,083
	$	3,418	$	3,196

Administrative stock compensation expense includes all stock compensation earned by our administrative personnel, while cost of sales and selling stock compensation represents all stock compensation earned by our installation and sales employees, respectively.

Unrecognized share-based compensation expense related to unvested awards was as follows (in thousands):

	As of March 31, 2022
	Unrecognized Compensation Expense on Unvested Awards		Weighted Average Remaining Vesting Period
Common Stock Awards	$	5,910	1.5
Performance-Based Stock Awards	9,139		2.1
Performance-Based Restricted Stock Units	50		0.1
Total unrecognized compensation expense related to unvested awards	$	15,099

Total unrecognized compensation expense is subject to future adjustments for forfeitures. This expense is expected to be recognized over the remaining weighted-average period shown above on a straight-line basis except for the Performance-Based Stock Awards which uses the graded-vesting method. Shares forfeited are returned as treasury shares and available for future issuances.

As of March 31, 2022, approximately 1.8 million of the 3.0 million shares of common stock authorized for issuance were available for issuance under the 2014 Omnibus Incentive Plan.

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Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXESOur provision for income taxes as a percentage of pretax earnings is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items.During the three months ended March 31, 2022 and 2021, our effective tax rate was 26.8% and 26.2%, respectively. The rate for both the three months ended March 31, 2022 and 2021 was unfavorably impacted by c

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Related Party Transactions

3 Months Ended

Mar. 31, 2022

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

We sell installation services to other companies related to us through common or affiliated ownership and/or board of directors and/or management relationships. We also purchase services and materials and pay rent to companies with common or affiliated ownership.

We lease our headquarters and certain other facilities from related parties. See Note 8, Leases, for future minimum lease payments to be paid to these related parties.

The amount of sales to common or related parties as well as the purchases from and rent expense paid to common or related parties were as follows (in thousands):

	Three months ended March 31,
	2022		2021
Sales	$	560	$	278
Purchases	407		392
Rent	314		306

We had a related party balance of approximately $1.0 million and $0.9 million included in accounts receivable on our Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021, respectively. These balances primarily represent trade accounts receivable arising during the normal course of business with various related parties.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Accrued General Liability and Auto Insurance

Accrued general liability and auto insurance reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands):

	March 31, 2022		December 31, 2021
Included in other current liabilities	$	5,762	$	5,889
Included in other long-term liabilities	17,317		16,050
	$	23,079	$	21,939

We also had insurance receivables and indemnification assets included on the Condensed Consolidated Balance Sheets that, in aggregate, offset equal liabilities included within the reserve amounts noted above. The amounts were as follows (in thousands):

	March 31, 2022		December 31, 2021
Insurance receivables and indemnification assets for claims under fully insured policies	$	3,548	$	3,578
Insurance receivables for claims that exceeded the stop loss limit	600		278
Total insurance receivables and indemnification assets included in other non-current assets	$	4,148	$	3,856

Leases

See Note 8, Leases, for further information regarding our lease commitments.

Other Commitments and Contingencies

From time to time, various claims and litigation are asserted or commenced against us principally arising from contractual matters and personnel and employment disputes. In determining loss contingencies, management considers the likelihood of loss as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss is recorded when it is considered probable that such a liability has been incurred and when the amount of loss can be reasonably estimated. As litigation is subject to inherent uncertainties, we cannot be certain that we will prevail in these matters. However, we do not believe that the ultimate outcome of any pending matters will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

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Business Combinations

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Business Combinations

BUSINESS COMBINATIONS

As part of our ongoing strategy to expand geographically and increase market share in certain markets, as well as diversify our products and end markets, we completed one business combination during each of the three months ended March 31, 2022 and 2021, respectively.

We acquired Pisgah Insulation and Fireplaces of NC, LLC. ("Pisgah") in March 2022 and I.W. International Insulation, Inc., dba Intermountain West Insulation (“IWI”) in March 2021. Below is a summary of each significant acquisition by year, including revenue and net income since date of acquisition shown for the year of acquisition. Net income includes amortization, taxes and interest allocations when appropriate.

For the three months ended March 31, 2022 (in thousands):

									Three months ended March 31, 2022
2022 Acquisitions	Date	Acquisition Type	Cash Paid		Seller Obligations		Total Purchase Price		Revenue		Net Income
Pisgah	03/01/2022	Share	$	8,050	$	1,878	$	9,928	$	915	$	97

For the three and three months ended March 31, 2021 (in thousands)

									Three months ended March 31, 2021
2021 Acquisitions	Date	Acquisition Type	Cash Paid		Seller Obligations		Total Purchase Price		Revenue		Net Income
IWI	03/01/2021	Share	$	42,098	$	5,959	$	48,057	$	3,608	$	450

Acquisition-related costs recorded within administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income amounted to $0.7 million for the three months ended March 31, 2022, and $1.2 million for the three months ended March 31, 2021, respectively. The goodwill recognized in conjunction with these business combinations represents the excess cost of the acquired entity over the net amount assigned to assets acquired and liabilities assumed. We expect to deduct approximately $2.8 million of goodwill for tax purposes as a result of 2022 acquisitions.

Purchase Price Allocations

The estimated fair values of the assets acquired and liabilities assumed for the acquisitions, as well as total purchase prices and cash paid, approximated the following (in thousands):

	As of March 31, 2022		As of March 31, 2021
	Pisgah		IWI
Estimated fair values:
Cash	$	—	$	168
Accounts receivable	772		5,122
Inventories	684		1,157
Other current assets	21		3,014
Property and equipment	1,049		796
Intangibles	4,634		25,200
Goodwill	2,830		23,282
Other non-current assets	7		264
Accounts payable and other current liabilities	(69)		(8,416)
Other long-term liabilities	—		(2,530)
Fair value of assets acquired and purchase price	9,928		48,057
Less seller obligations	1,878		5,959
Cash paid	$	8,050	$	42,098

Contingent consideration is included as “seller obligations” in the above table or within “fair value of assets acquired” if subsequently paid during the period presented. These contingent payments consist primarily of earnouts based on performance that are recorded at fair value at the time of acquisition, and/or non-compete agreements and amounts based on working capital calculations. When these payments are expected to be made over one year from the acquisition date, the contingent consideration is discounted to net present value of future payments based on a weighted average of various future forecast scenarios.

Further adjustments to the allocation for each acquisition still under its measurement period are expected as third-party or internal valuations are finalized, certain tax aspects of the transaction are completed, contingent consideration is settled and customary post-closing reviews are concluded during the measurement period attributable to each individual business combination. As a result, insignificant adjustments to the fair value of assets acquired, and in some cases total purchase price, have been made to certain business combinations since the date of acquisition and future adjustments may be made through the end of each measurement period. Any acquisition acquired after March 31, 2021 is deemed to be within the measurement period and its purchase price considered preliminary. Goodwill and intangibles per the above table may not agree to the total gross increases of these assets as shown in Note 6, Goodwill and Intangibles, during each of the three months ended March 31, 2022 and 2021 due to adjustments to goodwill for the allocation of certain acquisitions still under measurement as well as other immaterial intangible assets added during the ordinary course of business.

Estimates of acquired intangible assets related to the acquisitions are as follows (in thousands):

	For the three months ended March 31,
	2022			2021
Acquired intangibles assets	Estimated Fair Value		Weighted Average Estimated Useful Life (yrs.)	Estimated Fair Value		Weighted Average Estimated Useful Life (yrs.)
Customer relationships	$	3,125	12	$	18,200	12
Trademarks and tradenames	1,136		15	4,400		15
Non-competition agreements	374		5	2,600		5

Pro Forma Information

The unaudited pro forma information for the combined results of the Company has been prepared as if the 2022 acquisition had taken place on January 1, 2021 and the 2021 acquisition had taken place on January 1, 2020. The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transactions actually taken place on January 1, 2021 and 2020, respectively, and the unaudited pro forma information does not purport to be indicative of future financial operating results (in thousands, except per share data):

	Unaudited pro forma for the three months ended March 31,
	2022		2021
Net revenue	$	589,356	$	484,248
Net income	34,009		21,621
Basic net income per share	1.16		0.74
Diluted net income per share	1.15		0.73

Unaudited pro forma net income reflects additional intangible asset amortization expense of approximately $68 thousand and $3.2 million for the three months ended March 31, 2022 and 2021, respectively, as well as additional income tax expense of approximately $66 thousand and $1.5 million for the three months ended March 31, 2022 and 2021, respectively, that would have been recorded had the 2022 acquisition taken place on January 1, 2021 and the 2021 acquisition taken place on January 1, 2020.

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Income Per Common Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Income Per Common Share	INCOME PER COMMON SHAREBasic net income per common share is calculated by dividing net income by the weighted average shares outstanding during the period, without consideration for common stock equivalents.Diluted net income per common share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury stock method. Potential common stock is included in the diluted income per common share calculation when dilutive. The dilutive effect of outstanding restricted stock awards after application of the treasury stock method was approximately 278 thousand and 327 thousand shares for the three months ended March 31, 2022 and 2021, respectively. Approximately 30 thousand shares of potential common stock was not included in the calculation of diluted net income per common share for the three months ended March 31, 2021 because the effect would have been anti-dilutive. There were no shares that would have been considered anti-dilutive in the three months ended March 31, 2022.

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Subsequent Events

3 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

On April 11, 2022, we acquired the stock of Central Aluminum Supply Corporation and Central Aluminum Supply of North Jersey, LLC for a total consideration of approximately $57.3 million. The initial accounting for the business combinations was not complete at the time the financial statements were issued due to the timing of the acquisitions and the filing of this Quarterly Report on Form 10-Q. As a result, disclosures required under ASC 805-10-50, Business Combinations cannot be made at this time.

On May 5th, 2022, we announced that our board of directors declared a quarterly dividend, payable on June 30, 2022 to stockholders of record on June 15, 2022, at a rate of 31.5 cents per share.

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Consolidation

The accompanying consolidated financial statements include all of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated.

Basis of Presentation

The information furnished in the Condensed Consolidated Financial Statements includes normal recurring adjustments and reflects all adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations and statements of financial position for the interim periods presented. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) have been omitted pursuant to such rules and regulations.

Revenue from Contract with Customer

Revenues for our Installation operating segment are derived primarily through contracts with customers whereby we install insulation and other complementary building products and are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We offer assurance-type warranties on certain of our installed products and services that do not represent a separate performance obligation and, as such, do not impact the timing or extent of revenue recognition.

For contracts that are not complete at the reporting date, we recognize revenue over time utilizing a cost-to-cost input method as we believe this represents the best measure of when goods and services are transferred to the customer. When this method is used, we estimate the costs to complete individual contracts and record as revenue that portion of the total contract price that is considered complete based on the relationship of costs incurred to date to total anticipated costs. Under the cost-to-cost method, the use of estimated costs to complete each contract is a significant variable in the process of determining recognized revenue, requires judgment and can change throughout the duration of a contract due to contract modifications and other factors impacting job completion. The costs of earned revenue include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools and repairs. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined.

Our long-term contracts can be subject to modification to account for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Most of our contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis.

Payment terms typically do not exceed 30 days for short-term contracts and typically do not exceed 60 days for long-term contracts with customers. All contracts are billed either contractually or as work is performed. Billing on our long-term contracts occurs primarily on a monthly basis throughout the contract period whereby we submit invoices for customer payment based on actual or estimated costs incurred during the billing period. On certain of our long-term contracts the customer may withhold payment on an invoice equal to a percentage of the invoice amount, which will be subsequently paid after satisfactory completion of each installation project. This amount is referred to as retainage and is common practice in the construction industry, as it allows for customers to ensure the quality of the service performed prior to full payment. Retainage receivables are classified as current or long-term assets based on the expected time to project completion.

Revenues for our Distribution and Manufacturing operating segments included in the Other category are accounted for on a point-in-time basis when the sale occurs, adjusted accordingly for any return provisions. Sales taxes are not included in revenue as we act as a conduit for collecting and remitting sales taxes to the appropriate government authorities. The point-in-time recognition is when we transfer the promised products to the customer and the customer obtains control of the products depending upon the agreed upon terms in the contract. We disaggregate our revenue from contracts with customers for our Installation segment by end market and product, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.Our contract assets consist of unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized, based on costs incurred, exceeds the amount billed to the customer. Our contract assets are recorded in other current assets in our Condensed Consolidated Balance Sheets. Our contract liabilities consist of customer deposits and billings in excess of revenue recognized, based on costs incurred and are included in other current liabilities in our Condensed Consolidated Balance Sheets.

Fair Value Measurements

In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. During the periods presented, there were no transfers between fair value hierarchical levels.

Assets Measured at Fair Value on a Nonrecurring Basis

Certain assets, specifically other intangible and long-lived assets, are measured at fair value on a nonrecurring basis in periods subsequent to initial recognition. Assets measured at fair value on a nonrecurring basis as of March 31, 2022 and December 31, 2021 are categorized based on the lowest level of significant input to the valuation. The assets are measured at fair value when our impairment assessment indicates a carrying value for each of the assets in excess of the asset’s estimated fair value. Undiscounted cash flows, a Level 3 input, are utilized in determining estimated fair values. During each of the three months ended March 31, 2022 and 2021, we did not record any impairments on these assets required to be measured at fair value on a nonrecurring basis.

Estimated Fair Value of Financial Instruments

Accounts receivable, accounts payable and accrued liabilities as of March 31, 2022 and December 31, 2021 approximate fair value due to the short-term maturities of these financial instruments. The carrying amounts of certain long-term debt, including the Term Loan and ABL Revolver as of March 31, 2022 and December 31, 2021, approximate fair value due to the variable rate nature of the agreements. The carrying amounts of our operating lease right-of-use assets and the obligations associated with our operating and finance leases as well as our vehicle and equipment notes approximate fair value as of March 31, 2022 and December 31, 2021. All debt classifications represent Level 2 fair value measurements.

Derivative financial instruments are measured at fair value based on observable market information and appropriate valuation methods. Contingent consideration liabilities arise from future earnout payments to the sellers associated with certain acquisitions and are based on predetermined calculations of certain future results. These future payments are estimated by considering various factors, including business risk and projections. The contingent consideration liabilities are measured at fair value by discounting estimated future payments, calculated based on a weighted average of various future forecast scenarios, to their net present value.

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Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

We are currently evaluating the impact of the following Accounting Standards Update ("ASU") on our Condensed Consolidated Financial Statements or Notes to Condensed Consolidated Financial Statements:

Standard	Description	Effective Date	Effect on the financial statements or other significant matters
ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers	This pronouncement amends Topic 805 to require an acquirer to account for revenue contracts in a business combination in accordance with Topic 606 as if the acquirer had originated the contracts.	Annual periods beginning after December 15, 2022, including interim periods therein. Early adoption is permitted.	We are currently assessing the impact of adoption on our consolidated financial statements.

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Summary of Revenues Disaggregated by End Market and Product

The following tables present our net revenues disaggregated by end market and product (in thousands):

	Three months ended March 31,
	2022				2021
Installation:
Residential new construction	$	442,404	75	%	$	327,244	75	%
Repair and remodel	32,641		6	%	28,289		6	%
Commercial	86,586		15	%	76,645		18	%
Net revenue, Installation	$	561,631	96	%	$	432,178	99	%
Other (1)	25,861		4	%	4,888		1	%
Net revenue, as reported	$	587,492	100	%	$	437,066	100	%

	Three months ended March 31,
	2022				2021
Installation:
Insulation	$	364,943	63	%	$	278,568	63	%
Waterproofing	29,022		5	%	29,949		7	%
Shower doors, shelving and mirrors	36,340		6	%	31,433		7	%
Garage doors	35,979		6	%	24,439		6	%
Rain gutters	23,546		4	%	19,003		4	%
Fireproofing/firestopping	15,922		3	%	12,435		3	%
Window blinds	13,058		2	%	11,534		3	%
Other building products	42,821		7	%	24,817		6	%
Net revenue, Installation	$	561,631	96	%	$	432,178	99	%
Other (1)	25,861		4	%	4,888		1	%
Net revenue, as reported	$	587,492	100	%	$	437,066	100	%

(1) Net revenue for manufacturing operations are included in the Other category for all periods presented to conform with our change in composition of operating segments.

Summary of Assets and Liabilities Related to Uncompleted Contracts and Customer Deposits

Contract assets and liabilities related to our uncompleted contracts and customer deposits were as follows (in thousands):

	March 31, 2022		December 31, 2021
Contract assets	$	40,160	$	32,679
Contract liabilities	(14,756)		(14,153)

Schedule of Cost and Estimated Earnings on Uncompleted Contracts

Uncompleted contracts were as follows (in thousands):

	March 31, 2022		December 31, 2021
Costs incurred on uncompleted contracts	$	222,594	$	206,050
Estimated earnings	103,461		106,163
Total	326,055		312,213
Less: Billings to date	292,445		285,978
Net under billings	$	33,610	$	26,235

Schedule of Net Under Billings

Net under billings were as follows (in thousands):

	March 31, 2022		December 31, 2021
Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets)	$	40,160	$	32,679
Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities)	(6,550)		(6,444)
Net under billings	$	33,610	$	26,235

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Credit Losses (Tables)

3 Months Ended

Mar. 31, 2022

Credit Loss [Abstract]

Schedule Of Changes In Allowance For Credit Losses

Changes in our allowance for credit losses were as follows (in thousands):

Balance as of January 1, 2022	$	8,717
Current period provision	653
Recoveries collected and additions	89
Amounts written off	(869)
Balance as of March 31, 2022	$	8,590

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Goodwill and Intangibles (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Change in Carrying Amount of Goodwill

The change in carrying amount of goodwill was as follows (in thousands):

	Installation		Other		Consolidated
Goodwill (gross) - January 1, 2022, after change in reporting units	$	331,782	$	60,739	$	392,521
Business combinations	2,830		—		2,830
Goodwill (gross) - March 31, 2022	334,612		60,739		395,351
Accumulated impairment losses	(70,004)		—		(70,004)
Goodwill (net) - March 31, 2022	$	264,608	$	60,739	$	325,347

Schedule of Gross Carrying Amount, Accumulated Amortization and Net Book Value

The following table provides the gross carrying amount, accumulated amortization and net book value for each major class of intangibles (in thousands):

	As of March 31,						As of December 31,
	2022						2021
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Amortized intangibles:
Customer relationships	$	295,239	$	121,371	$	173,868	$	292,113	$	113,849	$	178,264
Covenants not-to-compete	28,091		17,357		10,734		27,717		16,471		11,246
Trademarks and tradenames	104,142		34,248		69,894		103,007		32,623		70,384
Backlog	23,725		20,261		3,464		23,724		19,197		4,527
	$	451,197	$	193,237	$	257,960	$	446,561	$	182,140	$	264,421

Schedule of Estimated Aggregate Annual Amortization

Remaining estimated aggregate annual amortization expense is as follows (amounts, in thousands, are for the fiscal year ended):

Remainder of 2022	$	31,315
2023	38,042
2024	34,122
2025	27,800
2026	23,842
Thereafter	102,839

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Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Debt

Long-term debt consisted of the following (in thousands):

	As of March 31,		As of December 31,
	2022		2021
Senior Notes due 2028, net of unamortized debt issuance costs of $3,484 and $3,633, respectively	$	296,516	$	296,367
Term loan, net of unamortized debt issuance costs of $6,495 and $6,735, respectively	492,255		493,265
Vehicle and equipment notes, maturing through March 2027; payable in various monthly installments, including interest rates ranging from 1.9% to 4.8%	67,363		69,228
Various notes payable, maturing through March 2025; payable in various monthly installments, including interest rates ranging from 1.0% to 5.0%	4,172		4,172
	860,306		863,032
Less: current maturities	(30,668)		(30,839)
Long-term debt, less current maturities	$	829,638	$	832,193

Schedule of Maturities of Long-term Debt

Remaining required repayments of debt principal, gross of unamortized debt issuance costs, as of March 31, 2022 are as follows (in thousands):

Remainder of 2022	$	23,783
2023	25,722
2024	20,012
2025	16,560
2026	9,017
Thereafter	775,191

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Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Schedule of Lease-Related Assets and Liabilities

The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets:

		As of March 31,			As of December 31,
(in thousands)	Classification	2022			2021
Assets
Non-Current
Operating	Operating lease right-of-use assets	$	69,033		$	69,871
Finance	Property and equipment, net	5,218			5,266
Total lease assets		$	74,251		$	75,137
Liabilities
Current
Operating	Current maturities of operating lease obligations	$	23,505		$	23,224
Financing	Current maturities of finance lease obligations	1,801			1,747
Non-Current
Operating	Operating lease obligations	45,091			46,075
Financing	Finance lease obligations	3,254			3,297
Total lease liabilities		$	73,651		$	74,343
Weighted-average remaining lease term:
Operating leases		4.2 years			4.3 years
Finance leases		3.4 years			3.3 years
Weighted-average discount rate:
Operating leases		3.47		%	3.38		%
Finance leases		4.91		%	4.96		%

Schedule of Lease Costs for Finance and Operating Leases

The table below presents certain information related to the lease costs for finance and operating leases:

		Three months ended March 31,
(in thousands)	Classification	2022		2021
Operating lease cost(1)	Administrative	$	7,759	$	6,350
Finance lease cost
Amortization of leased assets(2)	Cost of sales	716		792
Interest on finance lease obligations	Interest expense, net	61		55
Total lease costs		$	8,536	$	7,197

(1)Includes variable lease costs of $0.9 million and $0.7 million for the three months ended March 31, 2022 and 2021, respectively, and short-term lease costs of $0.3 million for both the three months ended March 31, 2022 and 2021, respectively.

(2)Includes variable lease costs of $0.2 million for each of the three months ended March 31, 2022 and 2021 .

The table below presents supplemental cash flow information related to leases (in thousands):

	Three months ended March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	6,463	$	5,324
Operating cash flows for finance leases	61		55
Financing cash flows for finance leases	521		530

Schedule of Undiscounted Cash Flows Finance Lease Obligations

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet as of March 31, 2022 (in thousands):

	Finance Leases		Operating Leases
			Related Party		Other		Total Operating
Remainder of 2022	$	1,548	$	1,080	$	18,498	$	19,578
2023	1,559		1,001		19,602		20,603
2024	1,152		743		12,234		12,977
2025	784		610		7,371		7,981
2026	453		—		5,454		5,454
Thereafter	15		—		7,596		7,596
Total minimum lease payments	5,511		$	3,434	$	70,755	74,189
Less: Amounts representing executory costs	(20)						—
Less: Amounts representing interest	(436)						(5,593)
Present value of future minimum lease payments	5,055						68,596
Less: Current obligation under leases	(1,801)						(23,505)
Long-term lease obligations	$	3,254					$	45,091

Schedule of Undiscounted Cash Flows Operating Lease Obligations

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet as of March 31, 2022 (in thousands):

	Finance Leases		Operating Leases
			Related Party		Other		Total Operating
Remainder of 2022	$	1,548	$	1,080	$	18,498	$	19,578
2023	1,559		1,001		19,602		20,603
2024	1,152		743		12,234		12,977
2025	784		610		7,371		7,981
2026	453		—		5,454		5,454
Thereafter	15		—		7,596		7,596
Total minimum lease payments	5,511		$	3,434	$	70,755	74,189
Less: Amounts representing executory costs	(20)						—
Less: Amounts representing interest	(436)						(5,593)
Present value of future minimum lease payments	5,055						68,596
Less: Current obligation under leases	(1,801)						(23,505)
Long-term lease obligations	$	3,254					$	45,091

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Values of Financial Assets and Liabilities

The fair values of financial assets and liabilities that are recorded at fair value in the Condensed Consolidated Balance Sheets and not described above were as follows (in thousands):

	As of March 31, 2022								As of December 31, 2021
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Financial assets:
Cash equivalents	$	201,112	$	201,112	$	—	$	—	$	258,055	$	258,055	$	—	$	—
Derivative financial instruments	36,644		—		36,644		—		14,830		—		14,830		—
Total financial assets	$	237,756	$	201,112	$	36,644	$	—	$	272,885	$	258,055	$	14,830	$	—
Financial liabilities:
Contingent consideration	$	6,160	$	—	$	—	$	6,160	$	11,170	$	—	$	—	$	11,170
Derivative financial instruments	—		—		—		—		1,937		—		1,937		—
Total financial liabilities	$	6,160	$	—	$	—	$	6,160	$	13,107	$	—	$	1,937	$	11,170

Summary of Change in Fair Value of Contingent Consideration

The change in fair value of the contingent consideration (a Level 3 input) was as follows (in thousands):

Contingent consideration liability - January 1, 2022	$	11,170
Preliminary purchase price	910
Fair value adjustments	(46)
Accretion in value	116
Settlement adjustments	(505)
Amounts paid to sellers	(5,485)
Contingent consideration liability - March 31, 2022	$	6,160

Summary of Carrying Values and Associated Fair Values of Financial Assets and Liabilities

To estimate the fair value of our investments and Senior Notes, we utilized third-party quotes which are derived all or in part from model prices, external sources or market prices. The investments and Senior Notes represent a Level 2 fair value measurement and are as follows (in thousands):

	As of March 31, 2022				As of December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Investments	$	49,980	$	49,927	$	—	$	—
Senior Notes(1)	300,000		293,145		300,000		311,028

(1)Excludes the impact of unamortized debt issuance costs.

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Information on Segments (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Information

The following table represents our segment information for the three months ended March 31, 2022 (in thousands):

	Installation		Other		Eliminations		Consolidated
Revenue	$	561,631	$	26,650	$	(789)	$	587,492
Cost of sales (exclusive of depreciation and amortization shown separately below)	385,692		19,373		(609)		404,456
Adjusted gross profit	175,939		7,277		(180)		183,036
Depreciation and amortization							10,633
Gross profit, as reported							172,403
Selling							25,192
Administrative							79,144
Amortization							11,097
Operating income							56,970
Interest expense, net							10,600
Other expense							145
Income before income taxes							$	46,225

The following table represents our segment information for the three months ended March 31, 2021 (in thousands):

	Installation		Other		Eliminations		Consolidated
Revenue	$	432,178	$	5,253	$	(365)	$	437,066
Cost of sales (exclusive of depreciation and amortization shown separately below)	297,832		4,067		(283)		301,616
Adjusted gross profit	134,346		1,186		(82)		135,450
Depreciation and amortization							10,023
Gross profit, as reported							125,427
Selling							20,858
Administrative							65,077
Amortization							8,396
Operating income							31,096
Interest expense, net							7,574
Other expense							81
Income before income taxes							$	23,441

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Dividends Declared and Paid

During the three months ended March 31, 2022, we declared and paid the following cash dividends (amount declared and amount paid in thousands):

Declaration Date	Record Date	Payment Date	Dividend Per Share		Amount Declared		Amount Paid
2/24/2022	3/15/2022	3/31/2021	$	0.90	$	26,585	$	26,242
2/24/2022	3/15/2022	3/31/2021	0.315		9,305		9,184

During the three months ended March 31, 2021, we declared and paid the following cash dividends (amount declared and amount paid in thousands):

Declaration Date	Record Date	Payment Date	Dividend Per Share		Amount Declared		Amount Paid
2/23/2021	3/15/2021	3/31/2021	$	0.30	$	8,907	$	8,786

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Employee Benefits (Tables)

3 Months Ended

Mar. 31, 2022

Postemployment Benefits [Abstract]

Summary of Workers' Compensation Known Claims and IBNR Reserves

Workers’ compensation known claims and IBNR reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands):

	March 31, 2022		December 31, 2021
Included in other current liabilities	$	7,166	$	8,048
Included in other long-term liabilities	15,509		13,397
	$	22,675	$	21,445

Schedule of Insurance Receivable for Claims

This receivable offsets an equal liability included within the reserve amounts noted above and was as follows (in thousands):

	March 31, 2022		December 31, 2021
Included in other non-current assets	$	2,377	$	2,137

Summary of Equity-based Awards for Employees

Amounts and changes for each category of equity-based award were as follows:

	Common Stock Awards			Performance-Based Stock Awards			Performance-Based Restricted Stock Units
	Awards	Weighted Average Grant Date Fair Value Per Share		Awards	Weighted Average Grant Date Fair Value Per Share		Units	Weighted Average Grant Date Fair Value Per Share
Nonvested awards/units at December 31, 2021	199,353	$	68.99	143,401	$	81.30	8,252	$	126.89
Granted	39,204	102.98		54,585	102.98		—	—
Forfeited/Cancelled	(50)	126.89		—	—		(191)	126.89
Nonvested awards/units at March 31, 2022	238,507	$	74.57	197,986	$	87.28	8,061	$	126.89

Summary of Stock Compensation Expenses

The following table summarizes the share-based compensation expense recognized under our 2014 Omnibus Incentive Plan (in thousands):

	Three months ended March 31,
	2022		2021
Common Stock Awards	$	1,531	$	1,120
Non-Employee Common Stock Awards	124		102
Performance-Based Stock Awards	1,315		1,148
Liability Performance-Based Stock Awards	206		705
Performance-Based Restricted Stock Units	242		121
	$	3,418	$	3,196

We recorded the following stock compensation expense by income statement category (in thousands):

	Three months ended March 31,
	2022		2021
Cost of sales	$	149	$	62
Selling	62		51
Administrative	3,207		3,083
	$	3,418	$	3,196

Unrecognized Share-Based Compensation Expense Related to Unvested Awards

Unrecognized share-based compensation expense related to unvested awards was as follows (in thousands):

	As of March 31, 2022
	Unrecognized Compensation Expense on Unvested Awards		Weighted Average Remaining Vesting Period
Common Stock Awards	$	5,910	1.5
Performance-Based Stock Awards	9,139		2.1
Performance-Based Restricted Stock Units	50		0.1
Total unrecognized compensation expense related to unvested awards	$	15,099

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2022

Related Party Transactions [Abstract]

Schedule of Common or Related Party Transactions

The amount of sales to common or related parties as well as the purchases from and rent expense paid to common or related parties were as follows (in thousands):

	Three months ended March 31,
	2022		2021
Sales	$	560	$	278
Purchases	407		392
Rent	314		306

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Accrued General Insurance Reserves

Accrued general liability and auto insurance reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands):

	March 31, 2022		December 31, 2021
Included in other current liabilities	$	5,762	$	5,889
Included in other long-term liabilities	17,317		16,050
	$	23,079	$	21,939

Schedule of Insurance Receivable for Claims

We also had insurance receivables and indemnification assets included on the Condensed Consolidated Balance Sheets that, in aggregate, offset equal liabilities included within the reserve amounts noted above. The amounts were as follows (in thousands):

	March 31, 2022		December 31, 2021
Insurance receivables and indemnification assets for claims under fully insured policies	$	3,548	$	3,578
Insurance receivables for claims that exceeded the stop loss limit	600		278
Total insurance receivables and indemnification assets included in other non-current assets	$	4,148	$	3,856

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Business Combinations (Tables)

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Combinations

For the three months ended March 31, 2022 (in thousands):

									Three months ended March 31, 2022
2022 Acquisitions	Date	Acquisition Type	Cash Paid		Seller Obligations		Total Purchase Price		Revenue		Net Income
Pisgah	03/01/2022	Share	$	8,050	$	1,878	$	9,928	$	915	$	97

For the three and three months ended March 31, 2021 (in thousands)

									Three months ended March 31, 2021
2021 Acquisitions	Date	Acquisition Type	Cash Paid		Seller Obligations		Total Purchase Price		Revenue		Net Income
IWI	03/01/2021	Share	$	42,098	$	5,959	$	48,057	$	3,608	$	450

Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed

The estimated fair values of the assets acquired and liabilities assumed for the acquisitions, as well as total purchase prices and cash paid, approximated the following (in thousands):

	As of March 31, 2022		As of March 31, 2021
	Pisgah		IWI
Estimated fair values:
Cash	$	—	$	168
Accounts receivable	772		5,122
Inventories	684		1,157
Other current assets	21		3,014
Property and equipment	1,049		796
Intangibles	4,634		25,200
Goodwill	2,830		23,282
Other non-current assets	7		264
Accounts payable and other current liabilities	(69)		(8,416)
Other long-term liabilities	—		(2,530)
Fair value of assets acquired and purchase price	9,928		48,057
Less seller obligations	1,878		5,959
Cash paid	$	8,050	$	42,098

Estimates of Acquired Intangible Assets

Estimates of acquired intangible assets related to the acquisitions are as follows (in thousands):

	For the three months ended March 31,
	2022			2021
Acquired intangibles assets	Estimated Fair Value		Weighted Average Estimated Useful Life (yrs.)	Estimated Fair Value		Weighted Average Estimated Useful Life (yrs.)
Customer relationships	$	3,125	12	$	18,200	12
Trademarks and tradenames	1,136		15	4,400		15
Non-competition agreements	374		5	2,600		5

Pro Forma Results of Operations

The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transactions actually taken place on January 1, 2021 and 2020, respectively, and the unaudited pro forma information does not purport to be indicative of future financial operating results (in thousands, except per share data):

	Unaudited pro forma for the three months ended March 31,
	2022		2021
Net revenue	$	589,356	$	484,248
Net income	34,009		21,621
Basic net income per share	1.16		0.74
Diluted net income per share	1.15		0.73

XML

Organization - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022 segment location
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of locations the company operates | location	210
Number of operating segment	3
Number of reportable segment	1

XML

Revenue Recognition - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract liability revenue recognized	$ 10,400,000
Impairment losses on contract assets	0	$ 0
Transaction price allocated to uncompleted contracts	$ 177,700,000
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payment terms (in days)	30 days
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payment terms (in days)	60 days
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Expected time of revenue recognition (in months)	18 months

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Revenue Recognition - Summary of Revenues Disaggregated by End Market and Product (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Net revenue	$ 587,492	$ 437,066
Revenue from Contract with Customer Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	100.00%	100.00%
Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	100.00%	100.00%
Net revenue, Installation
Disaggregation of Revenue [Line Items]
Net revenue	$ 561,631	$ 432,178
Net revenue, Installation | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	96.00%	99.00%
Insulation
Disaggregation of Revenue [Line Items]
Net revenue	$ 364,943	$ 278,568
Insulation | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	63.00%	63.00%
Waterproofing
Disaggregation of Revenue [Line Items]
Net revenue	$ 29,022	$ 29,949
Waterproofing | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	5.00%	7.00%
Shower doors, shelving and mirrors
Disaggregation of Revenue [Line Items]
Net revenue	$ 36,340	$ 31,433
Shower doors, shelving and mirrors | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	6.00%	7.00%
Garage doors
Disaggregation of Revenue [Line Items]
Net revenue	$ 35,979	$ 24,439
Garage doors | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	6.00%	6.00%
Rain gutters
Disaggregation of Revenue [Line Items]
Net revenue	$ 23,546	$ 19,003
Rain gutters | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	4.00%	4.00%
Fireproofing/firestopping
Disaggregation of Revenue [Line Items]
Net revenue	$ 15,922	$ 12,435
Fireproofing/firestopping | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	3.00%	3.00%
Window blinds
Disaggregation of Revenue [Line Items]
Net revenue	$ 13,058	$ 11,534
Window blinds | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	2.00%	3.00%
Other building products
Disaggregation of Revenue [Line Items]
Net revenue	$ 42,821	$ 24,817
Other building products | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	7.00%	6.00%
Other
Disaggregation of Revenue [Line Items]
Net revenue	$ 25,861	$ 4,888
Other | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	4.00%	1.00%
Net revenue, Installation
Disaggregation of Revenue [Line Items]
Net revenue	$ 561,631	$ 432,178
Net revenue, Installation | Revenue from Contract with Customer Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	96.00%	99.00%
Residential new construction
Disaggregation of Revenue [Line Items]
Net revenue	$ 442,404	$ 327,244
Residential new construction | Revenue from Contract with Customer Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	75.00%	75.00%
Repair and remodel
Disaggregation of Revenue [Line Items]
Net revenue	$ 32,641	$ 28,289
Repair and remodel | Revenue from Contract with Customer Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	6.00%	6.00%
Commercial
Disaggregation of Revenue [Line Items]
Net revenue	$ 86,586	$ 76,645
Commercial | Revenue from Contract with Customer Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	15.00%	18.00%
Other
Disaggregation of Revenue [Line Items]
Net revenue	$ 25,861	$ 4,888
Other | Revenue from Contract with Customer Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (percent)	4.00%	1.00%

XML

Revenue Recognition - Summary of Assets and Liabilities Related to Uncompleted Contracts and Customer Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract assets	$ 40,160	$ 32,679
Contract liabilities	$ (14,756)	$ (14,153)

XML

Revenue Recognition - Schedule of Cost and Estimated Earnings on Uncompleted Contracts (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Costs incurred on uncompleted contracts	$ 222,594	$ 206,050
Estimated earnings	103,461	106,163
Total	326,055	312,213
Less: Billings to date	292,445	285,978
Net under billings	$ 33,610	$ 26,235

XML

Revenue Recognition - Schedule of Net Under (Over) Billings (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets)	$ 40,160	$ 32,679
Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities)	(6,550)	(6,444)
Net under billings	$ 33,610	$ 26,235

XML

Credit Losses (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 8,717
Current period provision	653
Recoveries collected and additions	89
Amounts written off	(869)
Ending balance	$ 8,590

XML

Investments and Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Investments [Abstract]
Cash and cash equivalents	$ 201.1	$ 258.1
Amortized cost of investments	50.0	0.0
Net carrying value of investments	$ 50.0	$ 0.0

XML

Goodwill and Intangibles - Summary of Change in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Goodwill [Roll Forward]
Goodwill (Gross), beginning balance	$ 392,521
Business combinations	2,830
Goodwill (Gross), ending balance	395,351
Accumulated impairment losses	(70,004)
Goodwill (net)	325,347	$ 322,517
Installation
Goodwill [Roll Forward]
Goodwill (Gross), beginning balance	331,782
Business combinations	2,830
Goodwill (Gross), ending balance	334,612
Accumulated impairment losses	(70,004)
Goodwill (net)	264,608
Other Segment
Goodwill [Roll Forward]
Goodwill (Gross), beginning balance	60,739
Business combinations	0
Goodwill (Gross), ending balance	60,739
Accumulated impairment losses	0
Goodwill (net)	$ 60,739

XML

Goodwill and Intangibles - Schedule of Gross Carrying Amount and Accumulated Amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 451,197	$ 446,561
Accumulated Amortization	193,237	182,140
Net Book Value	257,960	264,421
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	295,239	292,113
Accumulated Amortization	121,371	113,849
Net Book Value	173,868	178,264
Covenants not-to-compete
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	28,091	27,717
Accumulated Amortization	17,357	16,471
Net Book Value	10,734	11,246
Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	104,142	103,007
Accumulated Amortization	34,248	32,623
Net Book Value	69,894	70,384
Backlog
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	23,725	23,724
Accumulated Amortization	20,261	19,197
Net Book Value	$ 3,464	$ 4,527

XML

Goodwill and Intangibles - Additional Information (Details) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022 USD ($)	Dec. 31, 2021 reporting_unit
Goodwill and Intangible Assets Disclosure [Abstract]
Number of reporting units | reporting_unit		3
Increase in gross carrying amount of intangibles | $	$ 4.6

XML

Goodwill and Intangibles - Schedule of Estimated Aggregate Annual Amortization (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Finite Lived Intangible Assets Net Amortization Expense Rolling Maturity [Abstract]
Remainder of 2022	$ 31,315
2023	38,042
2024	34,122
2025	27,800
2026	23,842
Thereafter	$ 102,839

XML

Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total long term debt	$ 860,306	$ 863,032
Less: current maturities	(30,668)	(30,839)
Long-term debt, less current maturities	829,638	832,193
Senior Notes | 5.75% Senior Notes Due 2028
Debt Instrument [Line Items]
Total long term debt	296,516	296,367
Unamortized debt issuance costs	3,484	3,633
Medium-term Notes | Term Loan Agreement
Debt Instrument [Line Items]
Total long term debt	492,255	493,265
Unamortized debt issuance costs	6,495	6,735
Notes Payable
Debt Instrument [Line Items]
Total long term debt	$ 4,172	$ 4,172
Notes Payable | Minimum
Debt Instrument [Line Items]
Notes payable interest rate (as a percent)	1.00%	1.00%
Notes Payable | Maximum
Debt Instrument [Line Items]
Notes payable interest rate (as a percent)	5.00%	5.00%
Notes Payable | Vehicle and Equipment
Debt Instrument [Line Items]
Total long term debt	$ 67,363	$ 69,228
Notes Payable | Vehicle and Equipment | Minimum
Debt Instrument [Line Items]
Notes payable interest rate (as a percent)	1.90%	1.90%
Notes Payable | Vehicle and Equipment | Maximum
Debt Instrument [Line Items]
Notes payable interest rate (as a percent)	4.80%	4.80%

XML

Long-Term Debt - Schedule Of Maturities Of Long Term Debt (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Maturities of Long-term Debt [Abstract]
Remainder of 2022	$ 23,783
2023	25,722
2024	20,012
2025	16,560
2026	9,017
Thereafter	$ 775,191

XML

Long-Term Debt - Additional Information (Details) - ABL Credit Agreement - USD ($)	1 Months Ended
	Sep. 30, 2019	Mar. 31, 2022	Feb. 28, 2022	Feb. 27, 2022
Debt Instrument [Line Items]
Fixed charge coverage ratio	1.0
Market capitalization (as percent)	2.00%
Letter of Credit
Debt Instrument [Line Items]
Remaining borrowing availability		$ 205,700,000
Base Rate | Minimum
Debt Instrument [Line Items]
Margin interest rate (as percent)	0.25%
Base Rate | Maximum
Debt Instrument [Line Items]
Margin interest rate (as percent)	0.50%
Eurodollar | Minimum
Debt Instrument [Line Items]
Margin interest rate (as percent)	1.25%
Eurodollar | Maximum
Debt Instrument [Line Items]
Margin interest rate (as percent)	1.50%
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity		$ 300,000,000	$ 250,000,000	$ 200,000,000
Letter of Credit
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	$ 100,000,000
Incremental Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	50,000,000
Swing Line Loans
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	$ 25,000,000

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Leases - Schedule of Supplemental Balance Sheet Information Related To Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Non-Current
Operating	$ 69,033	$ 69,871
Finance	5,218	5,266
Total lease assets	$ 74,251	$ 75,137
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property and equipment, net	Property and equipment, net
Current
Operating	$ 23,505	$ 23,224
Financing	1,801	1,747
Non-Current
Operating	45,091	46,075
Financing	3,254	3,297
Total lease liabilities	$ 73,651	$ 74,343
Weighted-average remaining lease term:
Operating leases (in years)	4 years 2 months 12 days	4 years 3 months 18 days
Finance leases (in years)	3 years 4 months 24 days	3 years 3 months 18 days
Weighted-average discount rate:
Operating leases (as percent)	3.47%	3.38%
Finance leases (as percent)	4.91%	4.96%

XML

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 7,759	$ 6,350
Finance lease cost
Amortization of leased assets	716	792
Interest on finance lease obligations	61	55
Total lease costs	8,536	7,197
Operating Lease
Finance lease cost
Variable lease costs	900	700
Short-term lease costs	300	300
Finance Lease
Finance lease cost
Variable lease costs	$ 200	$ 200

XML

Leases - Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$ 6,463	$ 5,324
Operating cash flows for finance leases	61	55
Financing cash flows for finance leases	$ 521	$ 530

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Leases - Undiscounted Cash Flows (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Finance Leases
Remainder of 2022	$ 1,548
2023	1,559
2024	1,152
2025	784
2026	453
Thereafter	15
Total minimum lease payments	5,511
Less: Amounts representing executory costs	(20)
Less: Amounts representing interest	(436)
Present value of future minimum lease payments	5,055
Less: Current obligation under leases	(1,801)	$ (1,747)
Finance lease obligations	3,254	3,297
Operating Leases
Remainder of 2022	19,578
2023	20,603
2024	12,977
2025	7,981
2026	5,454
Thereafter	7,596
Total minimum lease payments	74,189
Less: Amounts representing interest	(5,593)
Present value of future minimum lease payments	68,596
Less: Current obligation under leases	(23,505)	(23,224)
Operating lease obligations	45,091	$ 46,075
Related Party
Operating Leases
Remainder of 2022	1,080
2023	1,001
2024	743
2025	610
2026	0
Thereafter	0
Total minimum lease payments	3,434
Other
Operating Leases
Remainder of 2022	18,498
2023	19,602
2024	12,234
2025	7,371
2026	5,454
Thereafter	7,596
Total minimum lease payments	$ 70,755

XML

Fair Value Measurements - Schedule of Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financial assets:
Cash equivalents	$ 201,112	$ 258,055
Derivative financial instruments	36,644	14,830
Total financial assets	237,756	272,885
Financial liabilities:
Contingent consideration	6,160	11,170
Derivative financial instruments	0	1,937
Total financial liabilities	6,160	13,107
Level 1
Financial assets:
Cash equivalents	201,112	258,055
Derivative financial instruments	0	0
Total financial assets	201,112	258,055
Financial liabilities:
Contingent consideration	0	0
Derivative financial instruments	0	0
Total financial liabilities	0	0
Level 2
Financial assets:
Cash equivalents	0	0
Derivative financial instruments	36,644	14,830
Total financial assets	36,644	14,830
Financial liabilities:
Contingent consideration	0	0
Derivative financial instruments	0	1,937
Total financial liabilities	0	1,937
Level 3
Financial assets:
Cash equivalents	0	0
Derivative financial instruments	0	0
Total financial assets	0	0
Financial liabilities:
Contingent consideration	6,160	11,170
Derivative financial instruments	0	0
Total financial liabilities	$ 6,160	$ 11,170

XML

Fair Value Measurements - Summary of Change in Fair Value of Contingent Consideration (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 11,170
Preliminary purchase price	910
Fair value adjustments	(46)
Accretion in value	116
Settlement adjustments	(505)
Amounts paid to sellers	(5,485)
Ending balance	$ 6,160

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Fair Value Measurements - Summary of Carrying Values and Associated Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Level 2
Financial assets:
Investments	$ 49,927	$ 0
Level 2 | 5.75% Senior Notes Due 2028
Financial assets:
Senior Notes	293,145	311,028
Carrying Value
Financial assets:
Investments	49,980	0
Carrying Value | 5.75% Senior Notes Due 2028
Financial assets:
Senior Notes	$ 300,000	$ 300,000

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Information on Segments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) segment	Mar. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of operating segment | segment	3
Number of reportable segment | segment	1
Net revenue	$ 587,492	$ 437,066
Cost of sales (exclusive of depreciation and amortization shown separately below)	404,456	301,616
Adjusted gross profit	183,036
Depreciation and amortization	10,633	10,023
Gross profit	172,403	125,427
Selling	25,192	20,858
Administrative	79,144	65,077
Amortization	11,097	8,396
Operating income	56,970	31,096
Interest expense, net	10,600	7,574
Other expense	145	81
Income before income taxes	46,225	23,441
Adjustment
Segment Reporting Information [Line Items]
Adjusted gross profit		135,450
Eliminations
Segment Reporting Information [Line Items]
Net revenue	(789)	(365)
Cost of sales (exclusive of depreciation and amortization shown separately below)	(609)	(283)
Adjusted gross profit	$ (180)
Eliminations | Adjustment
Segment Reporting Information [Line Items]
Adjusted gross profit		(82)
Installation
Segment Reporting Information [Line Items]
Number of operating segment | segment	1
Net revenue	$ 561,631	432,178
Cost of sales (exclusive of depreciation and amortization shown separately below)	385,692	297,832
Adjusted gross profit	$ 175,939
Installation | Adjustment
Segment Reporting Information [Line Items]
Adjusted gross profit		134,346
Other
Segment Reporting Information [Line Items]
Number of operating segment | segment	2
Net revenue	$ 26,650	5,253
Cost of sales (exclusive of depreciation and amortization shown separately below)	19,373	4,067
Adjusted gross profit	$ 7,277
Other | Adjustment
Segment Reporting Information [Line Items]
Adjusted gross profit		$ 1,186

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Derivative and Hedging Activities - Additional Information (Details) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2022 USD ($) swap	Jun. 30, 2021 USD ($)	Aug. 31, 2020 swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Cash flow hedge gain (loss) to be reclassified	$ 27.2	$ 9.7
Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Cash flow hedge gain (loss) to be reclassified	0.8
Interest Rate Swap | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Reclassification from accumulated other comprehensive income to interest expense	0.6
Interest Rate Swap | Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized loss included in accumulated other comprehensive loss associated with the terminated swaps	17.8
Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount of derivative instruments	$ 400.0
Interest Rate Swap One | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of swaps | swap	3
Interest Rate Swap One | Cash Flow Hedging | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount of derivative instruments	$ 200.0
Interest rate of derivative instruments (as a percent)	0.51%
Interest Rate Swap Two | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of swaps | swap	2
Interest Rate Swap Two | Cash Flow Hedging | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount of derivative instruments	$ 100.0
Interest rate of derivative instruments (as a percent)	1.37%
Interest Rate Swap Three | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of swaps | swap	2
Interest Rate Swap Three | Cash Flow Hedging | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount of derivative instruments	$ 100.0
Interest rate of derivative instruments (as a percent)	1.37%
Term Loan
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of swaps | swap			2

XML

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Jun. 30, 2021	Feb. 24, 2022	Dec. 31, 2021
Statement Of Shareholders Equity [Line Items]
Accumulated other comprehensive income (loss)	$ 17,884				$ (227)
Unrealized gain (loss) interest rate swaps	(9,300)		$ (9,900)
Cash flow hedge gain (loss) to be reclassified	$ 27,200		$ 9,700
Common stock repurchase (in shares)	(511,000)	0
Share repurchase, amount	$ 49,865
Share repurchase, price per share (in usd per share)	$ 97,570
Stock repurchase program, authorized				$ 200,000
Stock repurchase program, remaining authorized repurchase amount	$ 150,100
Repurchase of common stock	$ 49,865	$ 0

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Stockholders' Equity - Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands								1 Months Ended	3 Months Ended
	Mar. 31, 2022	Feb. 24, 2022	Feb. 23, 2022	Feb. 22, 2022	Mar. 31, 2021	Feb. 23, 2021	Feb. 22, 2021	Mar. 31, 2022	Mar. 31, 2022	Mar. 31, 2021
Equity [Abstract]
Dividends declared (in USD per share)			$ 0.90	$ 0.315			$ 0.30		$ 1.22	$ 0.30
Amount Declared		$ 26,585	$ 9,305			$ 8,907			$ 35,890	$ 8,907
Amount Paid	$ 9,184				$ 8,786			$ 26,242	$ 35,426	$ 8,786

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Employee Benefits - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) installment shares	Mar. 31, 2021 USD ($) shares	Dec. 31, 2021 USD ($)
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Healthcare benefit expense, net of employee contributions | $	$ 8,900	$ 7,200
Accrued compensation | $	56,639		$ 50,964
Administration expense related to employee contribution plan | $	$ 800	$ 700
2014 Omnibus Incentive Plan
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Common stock shares available for issuance (in shares) | shares	1,800,000
Common stock shares authorized (in shares) | shares	3,000,000
Performance-Based Stock Awards
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Share-based awards granted (in shares) | shares	54,585
Liability Performance-Based Stock Awards
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Share-based awards granted (in shares) | shares	39,000	5,000
Officer | Performance-Based Stock Awards
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Share-based awards granted (in shares) | shares	41,000
Officer | Performance-Based Stock Awards | Common Stock
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Number of equal installments for common stock | installment	2
Cost of sales
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Workers' compensation expense | $	$ 5,700	$ 4,200
Medical IBNR Included in Accrued Compensation
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Accrued compensation | $	$ 3,600		$ 3,300

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Employee Benefits - Summary of Workers' Compensation Known Claims and IBNR Reserves (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Postemployment Benefits [Abstract]
Included in other current liabilities	$ 7,166	$ 8,048
Included in other long-term liabilities	15,509	13,397
Workers' compensation liability	$ 22,675	$ 21,445

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Employee Benefits - Schedule of Insurance Receivable for Claims (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Postemployment Benefits [Abstract]
Included in other non-current assets	$ 2,377	$ 2,137

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Employee Benefits - Summary of Equity-Based Awards for Employees (Details)	3 Months Ended
	Mar. 31, 2022 $ / shares shares
Common Stock Awards
Awards
Nonvested common stock awards, Beginning balance (in shares) | shares	199,353
Granted (in shares) | shares	39,204
Forfeited/Cancelled (in shares) | shares	(50)
Nonvested common stock awards, Ending balance (in shares) | shares	238,507
Weighted Average Grant Date Fair Value Per Share
Nonvested performance-based stock awards, Beginning balance (in USD per share) | $ / shares	$ 68.99
Granted (in USD per share) | $ / shares	102.98
Forfeited/Cancelled (in USD per share) | $ / shares	126.89
Nonvested performance-based stock awards, Ending balance (in USD per share) | $ / shares	$ 74.57
Performance-Based Stock Awards
Awards
Nonvested performance-based stock awards/units, Beginning balance (in shares) | shares	143,401
Granted (in shares) | shares	54,585
Forfeited/Cancelled (in shares) | shares	0
Nonvested performance-based stock awards/units, Ending balance (in shares) | shares	197,986
Weighted Average Grant Date Fair Value Per Share
Nonvested performance-based stock awards/units, Beginning balance (in USD per share) | $ / shares	$ 81.30
Granted (in USD per share) | $ / shares	102.98
Forfeited/Cancelled (in USD per share) | $ / shares	0
Nonvested performance-based stock awards/units, Ending balance (in USD per share) | $ / shares	$ 87.28
Performance-Based Restricted Stock Units
Awards
Nonvested performance-based stock awards/units, Beginning balance (in shares) | shares	8,252
Granted (in shares) | shares	0
Forfeited/Cancelled (in shares) | shares	(191)
Nonvested performance-based stock awards/units, Ending balance (in shares) | shares	8,061
Weighted Average Grant Date Fair Value Per Share
Nonvested performance-based stock awards/units, Beginning balance (in USD per share) | $ / shares	$ 126.89
Granted (in USD per share) | $ / shares	0
Forfeited/Cancelled (in USD per share) | $ / shares	126.89
Nonvested performance-based stock awards/units, Ending balance (in USD per share) | $ / shares	$ 126.89

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Employee Benefits - Summary of Share-Based Compensation Expense Under the 2014 Omnibus Incentive Plan (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 3,418	$ 3,196
2014 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	3,418	3,196
2014 Omnibus Incentive Plan | Common Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1,531	1,120
2014 Omnibus Incentive Plan | Common Stock Awards | Non-Employee Common Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	124	102
2014 Omnibus Incentive Plan | Performance-Based Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1,315	1,148
2014 Omnibus Incentive Plan | Liability Performance-Based Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	206	705
2014 Omnibus Incentive Plan | Performance-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 242	$ 121

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Employee Benefits - Summary of Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 3,418	$ 3,196
Cost of sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	149	62
Selling
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	62	51
Administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 3,207	$ 3,083

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Employee Benefits - Unrecognized Share-Based Compensation Expense Related to Unvested Awards (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Compensation Expense on Unvested Awards	$ 15,099
Common Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Compensation Expense on Unvested Awards	$ 5,910
Weighted Average Remaining Vesting Period (in years)	1 year 6 months
Performance-Based Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Compensation Expense on Unvested Awards	$ 9,139
Weighted Average Remaining Vesting Period (in years)	2 years 1 month 6 days
Performance-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Compensation Expense on Unvested Awards	$ 50
Weighted Average Remaining Vesting Period (in years)	1 month 6 days

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Income Taxes (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Effective tax rate (as percent)	26.80%	26.20%

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Related Party Transactions - Schedule of Related Party Transactions (Details) - Affiliated Entity - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Related Party Transaction [Line Items]
Sales	$ 560	$ 278
Purchases	407	392
Rent	$ 314	$ 306

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Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Affiliated Entity
Related Party Transaction [Line Items]
Accounts receivable, related parties	$ 1.0	$ 0.9

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Commitments and Contingencies - Schedule of Accrued General Insurance Reserves (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Included in other current liabilities	$ 5,762	$ 5,889
Included in other long-term liabilities	17,317	16,050
Total	$ 23,079	$ 21,939

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Commitments and Contingencies - Schedule of Insurance Receivable for Claims (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Commitments And Contingencies Disclosure [Line Items]
Total insurance receivables and indemnification assets included in other non-current assets	$ 2,377	$ 2,137
General Liability
Commitments And Contingencies Disclosure [Line Items]
Insurance receivables and indemnification assets for claims under fully insured policies	3,548	3,578
Insurance receivables for claims that exceeded the stop loss limit	600	278
Total insurance receivables and indemnification assets included in other non-current assets	$ 4,148	$ 3,856

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Commitments and Contingencies - Additional Information (Details) $ in Millions	Mar. 31, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Purchase obligation, 2021	$ 15.0

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Business Combinations - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) segment	Mar. 31, 2021 USD ($)
Business Acquisition [Line Items]
Number of businesses acquired | segment	1
Acquisition-related costs	$ 700	$ 1,200
Goodwill deduction for tax purposes	2,800
Amortization	11,097	8,396
Income tax expense	12,403	6,150
Combined Business Acquisitions
Business Acquisition [Line Items]
Amortization	68	3,200
Income tax expense	$ 66	$ 1,500

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Business Combinations - Summary of Business Acquisitions (Details) - USD ($) $ in Thousands			3 Months Ended
	Mar. 01, 2022	Mar. 01, 2021	Mar. 31, 2022	Mar. 31, 2021
Pisgah
Business Acquisition [Line Items]
Cash Paid	$ 8,050		$ 8,050	$ 42,098
Seller Obligations	1,878	$ 5,959	1,878
Total Purchase Price	$ 9,928
Revenue			915
Net Income			$ 97
IWI
Business Acquisition [Line Items]
Cash Paid		42,098
Seller Obligations				5,959
Total Purchase Price		$ 48,057
Revenue				3,608
Net Income				$ 450

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Business Combinations - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands			3 Months Ended
	Mar. 01, 2022	Mar. 01, 2021	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill			$ 325,347		$ 322,517
Pisgah
Business Acquisition [Line Items]
Cash			0	$ 168
Accounts receivable			772
Inventories			684
Other current assets			21
Property and equipment			1,049
Intangibles			4,634
Goodwill			2,830
Other non-current assets			7
Accounts payable and other current liabilities			(69)
Other long-term liabilities			0
Fair value of assets acquired and purchase price			9,928	48,057
Less seller obligations	$ 1,878	$ 5,959	1,878
Cash Paid	$ 8,050		$ 8,050	42,098
IWI
Business Acquisition [Line Items]
Accounts receivable				5,122
Inventories				1,157
Other current assets				3,014
Property and equipment				796
Intangibles				25,200
Goodwill				23,282
Other non-current assets				264
Accounts payable and other current liabilities				(8,416)
Other long-term liabilities				(2,530)
Less seller obligations				$ 5,959
Cash Paid		$ 42,098

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Business Combinations - Estimates of Acquired Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Fair Value	$ 3,125	$ 18,200
Weighted Average Estimated Useful Life (in years)	12 years	12 years
Trademarks and tradenames
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Fair Value	$ 1,136	$ 4,400
Weighted Average Estimated Useful Life (in years)	15 years	15 years
Covenants not-to-compete
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Fair Value	$ 374	$ 2,600
Weighted Average Estimated Useful Life (in years)	5 years	5 years

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Business Combinations - Pro Forma Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Business Acquisition, Pro Forma Information [Abstract]
Net revenue	$ 589,356	$ 484,248
Net income	$ 34,009	$ 21,621
Basic net income per share (in USD per share)	$ 1.16	$ 0.74
Diluted net income per share (in USD per share)	$ 1.15	$ 0.73

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Income Per Common Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Dilutive effect of outstanding restricted stock awards after application of the Treasury Stock Method (in shares)	278	327
Common stock shares excluded from calculation of diluted net income per common share (in shares)		30

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Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions						3 Months Ended
	May 05, 2022	Apr. 11, 2022	Feb. 23, 2022	Feb. 22, 2022	Feb. 22, 2021	Mar. 31, 2022	Mar. 31, 2021
Subsequent Event [Line Items]
Cash dividends declared per share (in USD per share)			$ 0.90	$ 0.315	$ 0.30	$ 1.22	$ 0.30
Subsequent Event
Subsequent Event [Line Items]
Cash dividends declared per share (in USD per share)	$ 0.315
Subsequent Event | Central Aluminum Supply Corporation and Central Aluminum Supply of North Jersey, LLC
Subsequent Event [Line Items]
Total Purchase Price		$ 57.3