Record Q4 for IBP
Installed Building Products (IBP) reported its fourth quarter 2019 net revenue increased 13.6% to a quarterly company record of $401.2 million from a net revenue of $353.1 million in the same period a year ago.
The company said that its large commercial construction revenue increased 10.2% during the period.
For the full year, the Columbus, Ohio-based builder and home improvement services provider reported a net revenue of $1.51 billion, increasing 13.1% from a net revenue of $1.34 billion in the previous year.
IBP posted a net income of $19.2 million in the fourth quarter, up 16.4% from a net income of $16.5 million in the fourth quarter 2018. The company’s full-year net income increased 24.7% to $68.2 million from a net income of $54.7 million in the previous year.
Last November, IBP acquired Premier Building Supply, LLC., a residential insulation and garage door installer in Utah with annual revenues of $23 million. In December, the company acquired Gulf Coast Insulation, a spray foam and fiberglass insulation installer in Florida with annual revenues of $4.7 million.
Installed Building Products operates more than 180 locations.
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The Bottom Line: Installed Building Products reports a record fourth quarter as sales rise 13.6% and its net income grows 16.4%.
What the CEO said: “IBP achieved another strong year of record revenue and earnings,” said Jeff Edwards, chairman and CEO. “As expected, 2019 benefited from a pricing environment more in line with historical trends compared to the pricing landscape in 2018, and positive overall market dynamics. In addition, our geographic, end market, and product diversification strategies continue to strengthen our results. Revenue from commercial customers was 18.2% of total revenue in 2019, compared to 16.5% in 2018, while non-insulation revenue was 35.8% of total revenue compared to 34.4% in the prior year. In addition, 2019 was another strong year for acquisition growth as we completed eight acquisitions, representing $64 million of annual revenue during the year.”
“Our record results reflect the ongoing dedication of our more than 8,000 employees across the U.S. Our commitment to our employees through our financial wellness program, longevity stock program, and various community engagement programs continue to have a positive impact on employee retention rates as evidenced by our improved employee turnover in 2019 which remains well below the industry average.”
Looking ahead, Edwards said, “the housing market remains healthy, the pricing environment continues to follow historic trends, and we expect to continue to benefit from our national platform, profit-focused business model, and the increasing diversification of our business.”
Company info: Installed Building Products’ full fourth quarter 2019 report is available here.