EX-99.1 2 bld-20190801ex991debfdb.htm EX-99.1 bld_Ex_99_1

Exhibit 99.1

Picture 4

NYSE:BLD

A leading installer and distributor of insulation and building material products to the U.S. construction industry

TopBuild Reports Second Quarter 2019 Results

·

8.9% increase in net sales

·

260 bps gross margin expansion

·

11.5% operating margin, 11.6% on an adjusted basis, up 210 bps

·

$1.51 net income per diluted share, $1.43 on an adjusted basis

·

33.2% increase in adjusted EBITDA

·

260 basis point increase in adjusted EBITDA margin to 14.2%


 

Second Quarter Financial Highlights

(unless otherwise indicated, comparisons are to the quarter ended June 30, 2018)

 

   Net sales increased 8.9% to $660.1 million, primarily driven by acquisitions and increased selling prices in both operating segments.  Same branch contributed 95.2% of total revenue.

 

“TopBuild reported another strong quarter, led by TruTeam’s growth in both commercial and residential new construction.  Operating margins at TruTeam and Service Partners expanded as we continue to drive operational efficiencies throughout our Company.

“Once again, our results demonstrate the strengths of our uniquely diversified business model, along with our focus on profitable growth.  We look forward to a solid second half of the year.”

 

JERRY VOLAS, CEO, TOPBUILD

 

   Gross margin increased 260 basis points to 26.5%. 

 

   Operating profit was $76.0 million, compared to operating profit of $43.7 million.  On an adjusted basis, operating profit was $76.4 million, compared to $57.8 million, a 32.2% improvement.

 

   Operating margin was 11.5%, up 430 basis points.  Adjusted operating margin improved 210 basis points to 11.6%.

   Net income was $52.1 million, or $1.51 per diluted share, compared to $27.2 million, or $0.76 per diluted share.  Adjusted income was $49.5 million, or $1.43 per diluted share, compared to $36.9 million, or $1.03 per diluted share. 

 

 

 

   Adjusted EBITDA was $94.0 million, compared to $70.6 million, a 33.2% increase, and adjusted EBITDA margin improved 260 basis points to 14.2%. 

   Incremental EBITDA margin was 43.3%.   On a same branch basis, adjusted EBITDA was $87.7 million, a 24.3% increase, and incremental EBITDA margin was 76.3%. 

   At June 30, 2019, the Company had cash and cash equivalents of $141.8 million and availability under its revolving credit facility of $187.1 million for total liquidity of $328.9 million.

1

Six Month Financial Highlights

(unless otherwise indicated, comparisons are to six months ended June 30, 2018)

 

   Net sales increased 16.6% to $1,279.4 million. On a same branch basis, revenue increased 5.2% to $1,154.5 million. 

   Gross margin expanded 250 basis points to 25.8%.

   Operating profit was $132.7 million, compared to operating profit of $77.6 million.  On an adjusted basis, operating profit was $135.5 million, compared to $96.0 million, a 41.2% improvement.

   Operating margin was 10.4%.  On an adjusted basis, operating margin improved 190 basis points to 10.6%. 

   Net income was $90.0 million, or $2.60 per diluted share, compared to $53.5 million, or $1.49 per diluted share.  Adjusted income was $86.1 million, or $2.49 per diluted share, compared to $63.1 million, or $1.76 per diluted share. 

   Adjusted EBITDA was $168.6 million, compared to $116.6 million, a 44.6% increase.  Adjusted EBITDA margin was 13.2%, a 260-basis point improvement.

   Incremental EBITDA margin was 28.6%.  On a same branch basis, adjusted EBITDA grew 24.3% to $144.9 million and incremental EBITDA margin was 49.5%. 

 

Operating Segment Highlights ($ in 000s)

(comparisons are to the period ended June 30, 2018)

 

Picture 2

2

Capital Allocation

 

 

 

 

 

 

 

 

Acquisitions

On July 15, the Company acquired Viking Insulation based in Burbank, California.  Viking focuses on fiberglass installation in a wide variety of light commercial and residential projects.  For the trailing twelve months ended March 31, 2019, Viking generated approximately $9.0 million in revenue. 

Share repurchases

In the second quarter of 2019, the Company repurchased 196,885 shares at an average price of $75.57 per share.  These shares were purchased as part of the Company’s $200 million share repurchase authorization announced on February 26, 2019.  As of June 30, 2019, approximately $180 million of the $200 million authorization remained.

 

 

“Viking is an outstanding addition to TruTeam. Viking has operated in Southern California for 35 years with strong customer relationships throughout the region.  

 

“Acquisitions remain our top capital allocation priority.  Our dedicated M&A team is working with a healthy pipeline of prospects, some of which we expect will become valuable additions to TopBuild over the next several quarters.”

 

JERRY VOLAS, CEO, TOPBUILD

 

2019 Revenue and Adjusted EBITDA Outlook

The Company has lowered its outlook for housing starts for 2019 to a range of 1.23 million to 1.27 million from the previous range of 1.26 million to 1.3 million starts.  Accordingly, the high end of the Company’s revenue outlook has been lowered by $30 million while the low end of its revenue range remains unchanged.    The Company has also raised the low and high end of its adjusted EBITDA outlook by $15 million and $5 million, respectively.  

 

2019

Low

High

Revenue

$2,610M

$2,640M

Adjusted EBITDA*

$345M

$355M

*see table for adjusted EBITDA reconciliation

 

Assumptions ($ in millions):

 

 

 

 

 

 

 

 

 

2019

    

Low

 

 

High

Housing Starts

 

1,230K

 

 

1,270K

Estimated net income

 

$

170.5 

 

 

$

185.6 

Interest Expense and other, net

 

$

38.9 

 

 

$

35.9 

Income tax expense

 

$

61.5 

 

 

$

66.9 

Depreciation and Amortization

 

$

54.0 

 

 

$

50.0 

Share based compensation

 

$

14.6 

 

 

$

12.1 

 

This outlook reflects management’s current view of present and future market conditions and is based on assumptions such as housing starts, general and administrative expenses, weighted average diluted shares outstanding and interest rates.  This outlook does not include any effects related to potential acquisitions or divestitures that may occur after the date of this press release.  Factors that could cause actual 2019 results to differ materially from TopBuild’s current expectations are discussed below and are also detailed in the Company’s 2018 Annual Report on Form 10-K and subsequent SEC reports. 

3

Additional Information

Quarterly supplemental materials, including a presentation that will be referenced on today’s conference call, are available on the “Investors” section of the Company’s website at www.topbuild.com.

 

Conference Call

A conference call to discuss second quarter 2019 financial results is scheduled for today, Thursday, August 1, at 9:00 a.m. Eastern Time.  The call may be accessed by dialing (888) 225-2706.  The conference call will be webcast simultaneously on the “Investors” section of the Company’s website at www.topbuild.com. 

 

About TopBuild

TopBuild Corp., a Fortune 1000 Company headquartered in Daytona Beach, Florida, is a leading installer and distributor of insulation and building material products to the U.S. construction industry. We provide insulation and building material services nationwide through TruTeam®, which has close to 200 branches, and through Service Partners® which distributes insulation and building material products from over 75 branches.  We leverage our national footprint to gain economies of scale while capitalizing on our local market presence to forge strong relationships with our customers.  To learn more about TopBuild please visit our website at www.topbuild.com.

 

Use of Non-GAAP Financial Measures

EBITDA, incremental EBITDA margin, adjusted EBITDA margin, the “adjusted” financial measures presented above, and figures presented on a “same branch basis” are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”).  The Company believes that these non-GAAP financial measures, which are used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods.   We define same branch sales as sales from branches in operation for at least 12 full calendar months.  Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release.  Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under GAAP.  Additional information may be found in the Company’s filings with the Securities and Exchange Commission which are available on TopBuild’s website under “Investors” at www.topbuild.com.

 

Safe Harbor Statement

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act.  These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results.  These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods.  These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements.  Our forward-looking statements contained herein speak only as of the date of this press release.  Factors or events that we cannot predict, including those described in the risk factors contained in our filings with the Securities and Exchange Commission, may cause our actual results to differ from those expressed in forward-looking statements.  Although TopBuild believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

 

Investor Relations and Media Contact

Tabitha Zane

tabitha.zane@topbuild.com
386-763-8801

 

(tables follow)

 

4

TopBuild Corp.

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per common share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 

 

Six Months Ended June 30, 

 

 

2019

 

2018

 

2019

 

2018

Net sales

    

$

660,112

    

$

605,969

    

$

1,279,442

    

$

1,097,412

Cost of sales

 

 

485,190

 

 

460,928

 

 

948,824

 

 

841,353

Gross profit

 

 

174,922

 

 

145,041

 

 

330,618

 

 

256,059

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative expense

 

 

98,883

 

 

101,360

 

 

197,960

 

 

178,486

Operating profit

 

 

76,039

 

 

43,681

 

 

132,658

 

 

77,573

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(9,631)

 

 

(7,322)

 

 

(19,232)

 

 

(9,645)

Other, net

 

 

526

 

 

82

 

 

858

 

 

115

Other expense, net

 

 

(9,105)

 

 

(7,240)

 

 

(18,374)

 

 

(9,530)

Income before income taxes

 

 

66,934

 

 

36,441

 

 

114,284

 

 

68,043

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(14,883)

 

 

(9,288)

 

 

(24,249)

 

 

(14,503)

Net income

 

$

52,051

 

$

27,153

 

$

90,035

 

$

53,540

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.53

 

$

0.77

 

$

2.64

 

$

1.53

Diluted

 

$

1.51

 

$

0.76

 

$

2.60

 

$

1.49

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

33,976,169

 

 

35,102,429

 

 

34,072,314

 

 

35,081,292

Diluted

 

 

34,557,664

 

 

35,837,102

 

 

34,630,048

 

 

35,828,290

5

TopBuild Corp.

Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited)

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

June 30, 

    

December 31, 

 

 

2019

 

2018

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

141,767

 

$

100,929

Receivables, net of an allowance for doubtful accounts of $5,199 and $3,676 at June 30, 2019, and December 31, 2018, respectively

 

 

444,823

 

 

407,106

Inventories, net

 

 

150,282

 

 

168,977

Prepaid expenses and other current assets

 

 

11,416

 

 

27,685

Total current assets

 

 

748,288

 

 

704,697

 

 

 

 

 

 

 

Right of use assets

 

 

90,735

 

 

 —

Property and equipment, net

 

 

172,719

 

 

167,961

Goodwill

 

 

1,363,738

 

 

1,364,016

Other intangible assets, net

 

 

189,041

 

 

199,387

Deferred tax assets, net

 

 

12,033

 

 

13,176

Other assets

 

 

4,569

 

 

5,294

Total assets

 

$

2,581,123

 

$

2,454,531

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

288,985

 

$

313,172

Current portion of long-term debt

 

 

32,261

 

 

26,852

Accrued liabilities

 

 

100,282

 

 

104,236

Short-term lease liabilities

 

 

36,527

 

 

 —

Total current liabilities

 

 

458,055

 

 

444,260

 

 

 

 

 

 

 

Long-term debt

 

 

705,626

 

 

716,622

Deferred tax liabilities, net

 

 

174,269

 

 

176,212

Long-term portion of insurance reserves

 

 

43,856

 

 

43,434

Long-term lease liabilities

 

 

57,312

 

 

 —

Other liabilities

 

 

359

 

 

1,905

Total liabilities

 

 

1,439,477

 

 

1,382,433

 

 

 

 

 

 

 

EQUITY

 

 

1,141,646

 

 

1,072,098

Total liabilities and equity

 

$

2,581,123

 

$

2,454,531

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 

 

 

    

2019

 

2018

 

Other Financial Data

 

 

 

 

 

 

 

Receivable days †

 

 

53

 

 

45

 

Inventory days †

 

 

29

 

 

31

 

Accounts payable days †

 

 

78

 

 

66

 

Receivables, net plus inventories, net less accounts payable †

 

$

306,119

 

$

271,007

 

Receivables, net plus inventories, net less accounts payable as a percent of sales (TTM)‡

 

 

11.9

%

 

11.1

%

 

 

 

 

†  Adjusted for remaining acquisition day one balance sheet items.

‡  Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches.

 

6

TopBuild Corp.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(dollars in thousands)

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 

 

 

2019

 

2018

Cash Flows Provided by (Used in) Operating Activities:

 

 

    

    

 

    

Net income

 

$

90,035

 

$

53,540

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

25,538

 

 

15,185

Share-based compensation

 

 

7,485

 

 

5,397

Loss on sale or abandonment of property and equipment

 

 

561

 

 

487

Amortization of debt issuance costs

 

 

779

 

 

422

Change in fair value of contingent consideration

 

 

(50)

 

 

123

Provision for bad debt expense

 

 

3,688

 

 

1,672

Loss from inventory obsolescence

 

 

1,251

 

 

928

Deferred income taxes, net

 

 

(21)

 

 

375

Change in certain assets and liabilities

 

 

 

 

 

 

Receivables, net

 

 

(41,489)

 

 

(22,382)

Inventories, net

 

 

17,391

 

 

(11,517)

Prepaid expenses and other current assets

 

 

14,969

 

 

(5,363)

Accounts payable

 

 

(23,823)

 

 

220

Accrued liabilities

 

 

(1,131)

 

 

2,901

Other, net

 

 

1,081

 

 

(595)

Net cash provided by operating activities

 

 

96,264

 

 

41,393

 

 

 

 

 

 

 

Cash Flows Provided by (Used in) Investing Activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(21,982)

 

 

(27,521)

Acquisition of businesses, net of cash acquired of $15,756 in 2018

 

 

 —

 

 

(499,050)

Proceeds from sale of property and equipment

 

 

1,961

 

 

427

Other, net

 

 

22

 

 

23

Net cash used in investing activities

 

 

(19,999)

 

 

(526,121)

 

 

 

 

 

 

 

Cash Flows Provided by (Used in) Financing Activities:

 

 

 

 

 

 

Proceeds from issuance of long-term debt

 

 

4,998

 

 

515,066

Repayment of long-term debt

 

 

(11,364)

 

 

(8,033)

Payment of debt issuance costs

 

 

 —

 

 

(7,717)

Proceeds from revolving credit facility

 

 

 —

 

 

90,000

Repayment of revolving credit facility

 

 

 —

 

 

(90,000)

Taxes withheld and paid on employees' equity awards

 

 

(8,471)

 

 

(4,531)

Repurchase of shares of common stock

 

 

(19,499)

 

 

 —

Payment of contingent consideration

 

 

(1,091)

 

 

(841)

Net cash (used in) provided by financing activities

 

 

(35,427)

 

 

493,944

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

 

 

 

 

 

Increase for the period

 

 

40,838

 

 

9,216

Beginning of period

 

 

100,929

 

 

56,521

End of period

 

$

141,767

 

$

65,737

 

 

 

 

 

 

 

Supplemental disclosure of noncash activities:

 

 

 

 

 

 

Leased assets obtained in exchange for new operating lease liabilities

 

$

110,192

 

$

 —

Accruals for property and equipment

 

 

497

 

 

864

 

 

 

 

7

TopBuild Corp.

Segment Data (Unaudited)

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 

 

 

 

 

 

 

Six Months Ended June 30, 

 

 

 

 

 

 

2019

 

2018

 

Change

 

 

 

2019

 

2018

 

Change

 

TruTeam

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

483,028

 

$

429,423

 

 

12.5

%

 

 

$

932,410

 

$

758,817

 

 

22.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

 

$

68,423

 

$

49,635

 

 

 

 

 

 

$

119,722

 

$

78,965

 

 

 

 

Operating margin, as reported

 

 

14.2

%

 

11.6

%

 

 

 

 

 

 

12.8

%

 

10.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

 

81

 

 

236

 

 

 

 

 

 

 

199

 

 

453

 

 

 

 

Acquisition related costs

 

 

277

 

 

 —

 

 

 

 

 

 

 

403

 

 

 —

 

 

 

 

Operating profit, as adjusted

 

$

68,781

 

$

49,871

 

 

 

 

 

 

$

120,324

 

$

79,418

 

 

 

 

Operating margin, as adjusted

 

 

14.2

%

 

11.6

%

 

 

 

 

 

 

12.9

%

 

10.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service Partners 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

213,487

 

$

205,621

 

 

3.8

%

 

 

$

417,951

 

$

393,387

 

 

6.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

 

$

21,151

 

$

20,009

 

 

 

 

 

 

$

41,748

 

$

37,912

 

 

 

 

Operating margin, as reported

 

 

9.9

%

 

9.7

%

 

 

 

 

 

 

10.0

%

 

9.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

 

 —

 

 

 —

 

 

 

 

 

 

 

109

 

 

25

 

 

 

 

Operating profit, as adjusted

 

$

21,151

 

$

20,009

 

 

 

 

 

 

$

41,857

 

$

37,937

 

 

 

 

Operating margin, as adjusted

 

 

9.9

%

 

9.7

%

 

 

 

 

 

 

10.0

%

 

9.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales before eliminations

 

$

696,515

 

$

635,044

 

 

 

 

 

 

$

1,350,361

 

$

1,152,204

 

 

 

 

Intercompany eliminations

 

 

(36,403)

 

 

(29,075)

 

 

 

 

 

 

 

(70,919)

 

 

(54,792)

 

 

 

 

Net sales after eliminations

 

$

660,112

 

$

605,969

 

 

8.9

%

 

 

$

1,279,442

 

$

1,097,412

 

 

16.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported - segments

 

$

89,574

 

$

69,644

 

 

 

 

 

 

$

161,470

 

$

116,877

 

 

 

 

General corporate expense, net

 

 

(7,130)

 

 

(20,686)

 

 

 

 

 

 

 

(16,734)

 

 

(29,579)

 

 

 

 

Intercompany eliminations and other adjustments

 

 

(6,405)

 

 

(5,277)

 

 

 

 

 

 

 

(12,078)

 

 

(9,725)

 

 

 

 

Operating profit, as reported

 

$

76,039

 

$

43,681

 

 

 

 

 

 

$

132,658

 

$

77,573

 

 

 

 

Operating margin, as reported

 

 

11.5

%

 

7.2

%

 

 

 

 

 

 

10.4

%

 

7.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges †

 

 

142

 

 

4,341

 

 

 

 

 

 

 

1,969

 

 

5,138

 

 

 

 

Acquisition related costs

 

 

251

 

 

9,799

 

 

 

 

 

 

 

903

 

 

13,281

 

 

 

 

Operating profit, as adjusted

 

$

76,432

 

$

57,821

 

 

 

 

 

 

$

135,530

 

$

95,992

 

 

 

 

Operating margin, as adjusted

 

 

11.6

%

 

9.5

%

 

 

 

 

 

 

10.6

%

 

8.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

4,513

 

 

2,995

 

 

 

 

 

 

 

7,485

 

 

5,397

 

 

 

 

Depreciation and amortization

 

 

13,062

 

 

9,743

 

 

 

 

 

 

 

25,538

 

 

15,185

 

 

 

 

EBITDA, as adjusted

 

$

94,007

 

$

70,559

 

 

 

 

 

 

$

168,553

 

$

116,574

 

 

 

 

EBITDA margin, as adjusted

 

 

14.2

%

 

11.6

%

 

 

 

 

 

 

13.2

%

 

10.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales change period over period

 

 

54,143

 

 

 

 

 

 

 

 

 

 

182,030

 

 

 

 

 

 

 

EBITDA, as adjusted, change period over period

 

 

23,448

 

 

 

 

 

 

 

 

 

 

51,979

 

 

 

 

 

 

 

EBITDA, as adjusted, as percentage of sales change

 

 

43.3

%

 

 

 

 

 

 

 

 

 

28.6

%

 

 

 

 

 

 

 

† Rationalization charges include corporate level adjustments as well as segment operating adjustments.

8

TopBuild Corp.

Non-GAAP Reconciliations (Unaudited)

(in thousands, except share and per common share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 

 

Six Months Ended June 30, 

 

 

 

2019

 

2018

 

2019

 

2018

 

Gross Profit and Operating Profit Reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

660,112

 

$

605,969

 

$

1,279,442

 

$

1,097,412

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit, as reported

 

$

174,922

 

$

145,041

 

$

330,618

 

$

256,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

 

 —

 

 

155

 

 

 —

 

 

155

 

Gross profit, as adjusted

 

$

174,922

 

$

145,196

 

$

330,618

 

$

256,214

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin, as reported

 

 

26.5

%

 

23.9

%

 

25.8

%

 

23.3

%

Gross margin, as adjusted

 

 

26.5

%

 

24.0

%

 

25.8

%

 

23.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit, as reported

 

$

76,039

 

$

43,681

 

$

132,658

 

$

77,573

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rationalization charges

 

 

142

 

 

4,341

 

 

1,969

 

 

5,138

 

Acquisition related costs

 

 

251

 

 

9,799

 

 

903

 

 

13,281

 

Operating profit, as adjusted

 

$

76,432

 

$

57,821

 

$

135,530

 

$

95,992