GlobeNewswire Inc | Nov 2, 2021 06:45AM EDT

November 02, 2021

-- 21.3% increase in net sales

-- 120 basis point gross margin expansion to 29.6%

-- 120 basis point operating margin expansion to 15.8%, 170 basis points on an adjusted basis

-- 160 basis point adjusted EBITDA margin expansion to 18.7%

DAYTONA BEACH, Fla., Nov. 02, 2021 (GLOBE NEWSWIRE) -- TopBuild Corp.(NYSE:BLD), a leading installer and specialty distributor of insulation and building material products to the North American construction industry today reported results for the third quarter ended September 30, 2021.

Robert Buck, President and Chief Executive Officer, stated, We are pleased with our overall results, particularly in this challenging environment characterized by supply chain disruptions and labor shortages across the entire construction industry. These market imbalances have impacted homebuilders ability to meet the continuing strong consumer demand, constraining growth for the entire industry.

Our teams continue to do an excellent job managing inputs costs and pricing as evidenced by our strong EBITDA margin expansion this quarter.

Looking ahead, we are confident in the overall fundamentals of our three end-markets; residential, commercial, and industrial, and our ability to leverage our size, scale, and operational excellence to continue to drive profitable growth.

Third Quarter Financial Highlights(unless otherwise indicated, comparisons are to the quarter ended September 30, 2020)

-- Net sales increased 21.3% to $845.8 million, 10.6% on a same branch basis, primarily driven by price and acquisitions. -- Gross margin increased 120 basis points to 29.6%. -- Operating profit was $133.8 million, compared to operating profit of $101.5 million. On an adjusted basis, operating profit was $137.4 million, compared to $101.7 million, a 35.2% improvement. -- Operating margin increased 120 basis points, and on an adjusted basis expanded 170 basis points to 16.3%. -- Net income was $95.4 million, or $2.88 per diluted share, compared to $70.0 million, or $2.11 per diluted share. Adjusted income was $97.7 million, or $2.95 per diluted share, compared to $69.6 million, or $2.10 per diluted share. -- Adjusted EBITDA was $158.2 million, compared to $119.2 million, a 32.8% increase, and adjusted EBITDA margin improved 160 basis points to 18.7%. -- At September 30, 2021, the Company had cash and cash equivalents of $327.9 million and availability under its revolving credit facility of $381.9 million for total liquidity of $709.8 million.

Nine Month Financial Highlights(unless otherwise indicated, comparisons are to nine months ended September 30, 2020)

-- Net sales increased 21.3% to $2,422.8 million. -- Gross margin expanded 100 basis points to 28.5%. -- Operating profit was $358.0 million, compared to operating profit of $252.0 million. On an adjusted basis, operating profit was $364.5 million, compared to $255.5 million, a 42.7% improvement. -- Operating margin was 14.8% a 220-basis point improvement. On an adjusted basis, operating margin improved 220 basis points to 15.0%. -- Net income was $245.7 million, or $7.41 per diluted share, compared to $176.3 million, or $5.29 per diluted share. Adjusted income was $256.4 million, or $7.73 per diluted share, compared to $171.2 million, or $5.14 per diluted share. -- Adjusted EBITDA was $423.9 million, compared to $315.3 million, a 34.4% increase. Adjusted EBITDA margin was 17.5%, a 170-basis point improvement.

Operating Segment Highlights ($ in 000s)(comparisons are to the period ended September 30, 2020)

3 Months Ended 9 Months Ended Service 3 Months Ended 9 MonthsTruTeam 9/30/21 9/30/21 Partners 9/30/21 Ended 9/ 30/21Sales $612,900 $1,751,278 Sales $276,398 $801,363 Change Change Volume 1.9% 5.7% Volume -5.2% 7.1% Price 8.4% 4.9% Price 16.5% 10.4% M&A 14.3% 11.5% M&A 1.9% 1.3% Total 24.5% 22.1% Total 13.2% 18.8% Change ChangeOperating 17.1% 15.9% Operating 17.1% 15.6% Margin MarginChange 20 bps 100 bps Change 370 bps 350 bps Adj. Adj.Operating 17.2% 16.0% Operating 17.1% 15.7% Margin MarginChange 20 bps 100 bps Change 370 bps 350 bps

Capital AllocationAcquisitions

TTM Revenue at Month YTD 2021 Acquisition Acquired Business Focus ($millions)LCR Contractors (I) $58.0 January Heavy Commercial/ FireproofingOzark Foam (I) $7.7 March Residential, primarily spray foamAmerican Building $144.0 April Residential (94%) & Systems (I&D) Distribution (6%)Creative Conservation $7.4 April Residential (I)RJ Insulation (I) $4.0 June Residential, shower doors/ mirrorsValley Gutter Supply $10.0 August Fabricator & distributor (D)California Building $18.0 October Residential and light Products (I) commercialDistribution $747.0 October Fabricator and specialty International (D) distributorTotal $996.1

I = InstallationD = Distribution

Buck added, Acquisitions continue to be our number one capital allocation priority and our acquisition of Distribution International has further enhanced our robust M&A pipeline focused on three end-markets: residential, commercial, and industrial. Over the past six years, we have put together a disciplined team to source and integrate deals, and during this timeframe have put almost $2 billion of capital to work for our shareholders.

Share repurchasesIn the third quarter of 2021, the Company repurchased 60,105 shares at an average price of $191.64 per share. Year-to-date the Company has repurchased 183,136 shares as an average price of $194.15 per share.

2021 Outlook

Sales and Adjusted EBITDA Guidance(*) ($ in millions)

2021 Low High Legacy BLD Sales $ 3,255 $ 3,295 DI Sales $ 170 $ 180 Total Sales $ 3,425 $ 3,475 2021 Low High Legacy BLD Adj. EBITDA* $ 570 $ 585 DI Adj. EBITDA $ 15 $ 20 Total Adj. EBITDA $ 585 $ 605

*See table for adjusted EBITDA reconciliation.

Additional InformationQuarterly supplemental materials, including a presentation that will be referenced on todays conference call, are available on the Companys website at www.topbuild.com.

Conference Call A conference call to discuss third quarter 2021 financial results is scheduled for today, Tuesday, November 2, at 9:00 a.m. Eastern Time. The call may be accessed by dialing (877) 407-9037. The conference call will be webcast simultaneously on the Companys website at www.topbuild.com.

About TopBuildTopBuild Corp., headquartered in Daytona Beach, Florida, is a leading installer and specialty distributor of insulation and building material products to the North American construction industry. We provide insulation solutions and building material installation services through TruTeam which has approximately 235 branches. We distribute building insulation and building product materials for the residential and commercial end-markets through Service Partners and mechanical insulation and other specialty products for the commercial and industrial end-markets through Distribution International. Our specialty distribution network encompasses 175 branches. To learn more about TopBuild please visit our website at www.topbuild.com.

Use of Non-GAAP Financial Measures Adjusted 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 Companys reported results under GAAP. Additional information may be found in the Companys filings with the Securities and Exchange Commission which are available on TopBuilds website at www.topbuild.com.

Safe Harbor StatementStatements contained herein reflect our views about future periods, including our future plans and performance, constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by 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. We caution you against unduly relying on any of these forward-looking statements. Our future performance may be affected by the duration and impact of the COVID-19 pandemic on the United States economy, specifically with respect to residential and commercial construction; our ability to continue operations in markets affected by the COVID-19 pandemic and our ability to collect receivables from our customers; our reliance on residential new construction, residential repair/remodel, and commercial construction; our reliance on third-party suppliers and manufacturers; our ability to attract, develop, and retain talented personnel and our sales and labor force; our ability to maintain consistent practices across our locations; and our ability to maintain our competitive position. We discuss the material risks we face under the caption entitled Risk Factors in our Annual Report for the year ended December31,2020, as filed with the SEC in February 2021, as well as under the caption entitled Risk Factors in subsequent reports that we file with the SEC. Our forward-looking statements in this filing speak only as of the date of this filing. Factors or events that could cause our actual results to differ may emerge from time to time and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise. The Company believes that the non-GAAP performance measures and ratios that are contained herein, which management uses to manage our business, provide users of this financial information with additional meaningful comparisons between current results and results in our prior periods. Non-GAAP performance measures and ratios should be viewed in addition, and not as an alternative, to the Company's reported results under accounting principles generally accepted in the United States. Additional information about the Company is contained in the Company's filings with the SEC and is available on TopBuild's website at www.topbuild.com.

Investor Relations and Media ContactTabitha Zanetabitha.zane@topbuild.com

TopBuild Corp. Condensed ConsolidatedStatements of Operations (Unaudited)(in thousands, except share and per common share amounts) Three Months Ended September Nine Months Ended September 30, 30, 2021 2020 2021 2020 Net sales $ 845,757 $ 697,223 $ 2,422,810 $ 1,996,551 Cost of sales 595,466 498,895 1,731,581 1,448,210 Gross profit 250,291 198,328 691,229 548,341 Selling,general, and 116,485 96,805 333,252 296,372 administrativeexpenseOperating 133,806 101,523 357,977 251,969 profit Other income(expense), net:Interest (5,503 ) (7,692 ) (18,210 ) (24,711 ) expenseLoss onextinguishment ? ? (13,862 ) (233 ) of debtOther, net 66 86 210 648 Other expense, (5,437 ) (7,606 ) (31,862 ) (24,296 ) netIncome before 128,369 93,917 326,115 227,673 income taxes Income tax (32,934 ) (23,921 ) (80,457 ) (51,407 ) expenseNet income $ 95,435 $ 69,996 $ 245,658 $ 176,266 Net income per common share:Basic $ 2.91 $ 2.13 $ 7.49 $ 5.35 Diluted $ 2.88 $ 2.11 $ 7.41 $ 5.29 Weightedaverage shares outstanding:Basic 32,763,311 32,847,652 32,818,145 33,960,969 Diluted 33,088,680 33,210,545 33,155,995 33,337,259

TopBuild Corp. Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited)(dollars in thousands) As of September 30, December31, ASSETS 2021 2020 Current assets: Cash and cash equivalents $ 327,906 $ 330,007 Receivables, net of an allowance forcredit losses of $8,856 at September 516,941 427,340 30, 2021, and $6,926 at December 31,2020Inventories, net 202,018 161,369 Prepaid expenses and other current 21,240 17,689 assetsTotal current assets 1,068,105 936,405 Right of use assets 104,047 83,490 Property and equipment, net 203,530 180,053 Goodwill 1,496,737 1,410,685 Other intangible assets, net 234,872 190,605 Deferred tax assets, net 2,751 2,728 Other assets 10,646 11,317 Total assets $ 3,120,688 $ 2,815,283 LIABILITIES Current liabilities: Accounts payable $ 382,932 $ 331,710 Current portion of long-term debt 23,557 23,326 Accrued liabilities 141,261 107,949 Short-term lease liabilities 37,048 33,492 Total current liabilities 584,798 496,477 Long-term debt 675,567 683,396 Deferred tax liabilities, net 166,240 168,568 Long-term portion of insurance 47,775 50,657 reservesLong-term lease liabilities 71,290 53,749 Other liabilities 13,307 13,642 Total liabilities 1,558,977 1,466,489 EQUITY 1,561,711 1,348,794 Total liabilities and equity $ 3,120,688 $ 2,815,283 As of September 30, 2021 2020 Other Financial Data Receivable days 45 48 Inventory days 33 27 Accounts payable days 75 81 Receivables, net plus inventories, $ 336,027 $ 267,369 net less accounts payableReceivables, net plus inventories, net lessaccounts payable as a percent of sales (TTM) 10.3 % 10.1 % ? ? Trailing 12 months sales have beenadjusted for the pro forma effect of acquired branches

TopBuild Corp. Condensed ConsolidatedStatement of Cash Flows (Unaudited)(in thousands) Nine Months Ended September 30, 2021 2020 Cash Flows Provided by (Used in) Operating Activities:Net income $ 245,658 $ 176,266 Adjustments to reconcile netincome to net cash provided by operating activities:Depreciation and amortization 51,005 47,527 Share-based compensation 8,375 12,159 Loss on extinguishment of debt 13,862 233 Loss on sale or abandonment of 1,410 290 property and equipmentAmortization of debt issuance 1,352 1,103 costsProvision for bad debt expense 5,215 5,625 Loss from inventory 1,667 1,908 obsolescenceDeferred income taxes, net (1,661 ) (709 ) Change in certain assets and liabilitiesReceivables, net (62,257 ) (13,645 ) Inventories, net (30,115 ) 4,759 Prepaid expenses and other (2,984 ) (14,989 ) current assetsAccounts payable 47,907 2,152 Accrued liabilities 30,397 33,436 Payment of contingent (22 ) (413 ) considerationOther, net (304 ) 21 Net cash provided by operating 309,505 255,723 activities Cash Flows Provided by (Used in) Investing Activities:Purchases of property and (42,320 ) (27,206 ) equipmentAcquisition of businesses (205,028 ) (21,450 ) Proceeds from sale of property 298 2,332 and equipmentNet cash used in investing (247,050 ) (46,324 ) activities Cash Flows Provided by (Used in) Financing Activities:Proceeds from issuance of 411,250 300,000 long-term debtRepayment of long-term debt (427,563 ) (319,168 ) Payment of debt issuance costs (6,500 ) (2,280 ) Taxes withheld and paid on (11,511 ) (14,781 ) employees' equity awardsExercise of stock options 5,952 1,438 Repurchase of shares of common (35,556 ) (43,149 ) stockPayment of contingent (628 ) (928 ) considerationNet cash used in financing (64,556 ) (78,868 ) activities Cash and Cash Equivalents (Decrease) increase for the (2,101 ) 130,531 periodBeginning of period 330,007 184,807 End of period $ 327,906 $ 315,338 Supplemental disclosure of noncash activities:Leased assets obtained inexchange for new operating $ 51,190 $ 27,098 lease liabilitiesAccruals for property and 580 278 equipment

TopBuild Corp. Segment Data (Unaudited)(dollars in thousands) Three Months Ended Nine Months Ended September September 30, 30, 2021 2020 Change 2021 2020 Change TruTeam Sales $ 612,900 $ 492,206 24.5 % $ 1,751,278 $ 1,434,648 22.1 % Operatingprofit, as $ 105,046 $ 83,142 277,748 $ 213,136 reportedOperatingmargin, as 17.1 % 16.9 % 15.9 % 14.9 % reported Rationalization ? 9 ? 866 chargesAcquisition 171 ? 1,283 4 related costsCOVID-19 pay ? 278 605 916 Operatingprofit, as $ 105,217 $ 83,429 $ 279,636 $ 214,922 adjustedOperatingmargin, as 17.2 % 17.0 % 16.0 % 15.0 % adjusted Service PartnersSales $ 276,398 $ 244,113 13.2 % $ 801,363 $ 674,672 18.8 % Operatingprofit, as $ 47,162 $ 32,787 125,403 $ 81,612 reportedOperatingmargin, as 17.1 % 13.4 % 15.6 % 12.1 % reported Rationalization ? (161 ) ? 783 chargesCOVID-19 pay ? 15 54 70 Operatingprofit, as $ 47,162 $ 32,641 $ 125,457 $ 82,464 adjustedOperatingmargin, as 17.1 % 13.4 % 15.7 % 12.2 % adjusted Total Sales before $ 889,298 $ 736,319 $ 2,552,641 $ 2,109,320 eliminationsIntercompany (43,541 ) (39,096 ) (129,831 ) (112,769 ) eliminationsNet sales after $ 845,757 $ 697,223 21.3 % $ 2,422,810 $ 1,996,551 21.3 % eliminations Operatingprofit, as $ 152,208 $ 115,929 $ 403,151 $ 294,748 reported -segmentsGeneralcorporate (10,812 ) (8,032 ) (24,124 ) (24,610 ) expense, netIntercompany (7,590 ) (6,374 ) (21,050 ) (18,169 ) eliminationsOperatingprofit, as $ 133,806 $ 101,523 $ 357,977 $ 251,969 reportedOperatingmargin, as 15.8 % 14.6 % 14.8 % 12.6 % reported Rationalization ? (274 ) 16 2,102 chargesAcquisition 3,634 142 5,844 338 related costs ?Refinancing ? ? ? 57 costsCOVID-19 pay ? 293 659 984 Operatingprofit, as $ 137,440 $ 101,684 $ 364,496 $ 255,450 adjustedOperatingmargin, as 16.3 % 14.6 % 15.0 % 12.8 % adjusted Share-based 2,998 3,280 8,375 12,317 compensationDepreciationand 17,784 14,216 51,005 47,527 amortizationEBITDA, as $ 158,222 $ 119,180 $ 423,876 $ 315,294 adjustedEBITDA margin, 18.7 % 17.1 % 17.5 % 15.8 % as adjusted Sales changeperiod over 148,534 426,259 periodEBITDA, asadjusted, 39,042 108,582 change periodover periodIncremental EBITDA,as adjusted, as a 26.3 % 25.5 % percentage ofchange in sales ? Acquisition related costs include corporatelevel adjustments as well as segment operating adjustments.

TopBuild Corp. Non-GAAPReconciliations (Unaudited)(in thousands,except share and per common shareamounts) Three Months Ended September Nine Months Ended September 30, 30, 2021 2020 2021 2020 Gross Profitand Operating ProfitReconciliations Net sales $ 845,757 $ 697,223 $ 2,422,810 $ 1,996,551 Gross profit, $ 250,291 $ 198,328 $ 691,229 $ 548,341 as reported Rationalization ? (63 ) ? 1,016 chargesCOVID-19 pay ? 273 592 755 Gross profit, $ 250,291 $ 198,538 $ 691,821 $ 550,111 as adjusted Gross margin, 29.6 % 28.4 % 28.5 % 27.5 % as reportedGross margin, 29.6 % 28.5 % 28.6 % 27.6 % as adjusted Operatingprofit, as $ 133,806 $ 101,523 $ 357,977 $ 251,969 reported Rationalization ? (274 ) 16 2,102 chargesAcquisition 3,634 142 5,844 338 related costsRefinancing ? ? ? 57 costsCOVID-19 pay ? 293 659 984 Operatingprofit, as $ 137,440 $ 101,684 $ 364,496 $ 255,450 adjusted Operatingmargin, as 15.8 % 14.6 % 14.8 % 12.6 % reportedOperatingmargin, as 16.3 % 14.6 % 15.0 % 12.8 % adjusted Income PerCommon Share Reconciliation Income beforeincome taxes, $ 128,369 $ 93,917 $ 326,115 $ 227,673 as reported Rationalization ? (274 ) 16 2,102 chargesAcquisition 3,634 142 5,844 338 related costsRefinancingcosts and losson ? ? 13,862 290 extinguishmentof debtCOVID-19 pay ? 293 659 984 Income beforeincome taxes, 132,003 94,078 346,496 231,387 as adjusted Tax rate at (34,321 ) (24,460 ) (90,089 ) (60,161 ) 26.0%Income, as $ 97,682 $ 69,618 $ 256,407 $ 171,226 adjusted Income percommon share, $ 2.95 $ 2.10 $ 7.73 $ 5.14 as adjusted Weightedaverage diluted 33,088,680 33,210,545 33,155,995 33,337,259 common sharesoutstanding

TopBuild Corp. Same Branch andAcquisition Net Sales and Adjusted EBITDA(Unaudited)(dollars in thousands) Three Months Ended Nine Months Ended September September 30, 30, 2021 2020 2021 2020 Net sales Same branch: TruTeam $ 542,679 $ 492,206 $ 1,586,336 $ 1,434,648 Service Partners 271,760 244,113 792,834 674,672 Eliminations (43,206 ) (39,096 ) (128,511 ) (112,769 ) Total same branch 771,233 697,223 2,250,659 1,996,551 Acquisitions (a): TruTeam $ 70,221 $ ? $ 164,942 $ ? Service Partners 4,638 ? 8,529 ? Eliminations (335 ) ? (1,320 ) ? Total 74,524 ? 172,151 ? acquisitionsTotal $ 845,757 $ 697,223 $ 2,422,810 $ 1,996,551 EBITDA, as adjustedSame branch $ 146,774 $ 119,180 $ 400,328 $ 315,294 Acquisitions (a) 11,448 ? 23,548 ? Total $ 158,222 $ 119,180 $ 423,876 $ 315,294 EBITDA, asadjusted, as a percentage ofsalesSame branch (b) 19.0 % 17.8 % Acquisitions (c) 15.4 % 13.7 % Total (d) 18.7 % 17.1 % 17.5 % 15.8 % As AdjustedIncrementalEBITDA, as a percentage ofchange in salesSame branch (e) 37.3 % 33.5 % Acquisitions (c) 15.4 % 13.7 % Total (f) 26.3 % 25.5 % (a) Representscurrent yearimpact of acquisitions intheir firsttwelve months(b) Same branchEBITDA, asadjusted, as a percentage ofsame branch sales(c) AcquiredEBITDA, asadjusted, as a percentage ofacquired sales(d) Total EBITDA,as adjusted, as a percentage oftotal sales(e) Change in same branchEBITDA, as adjusted, as a percentage of change in samebranch sales(f) Change intotal EBITDA, asadjusted, as a percentage ofchange in totalsales

TopBuild Corp. Same Branch and Acquisition Net Sales by Market (Unaudited)(in thousands) Three Months Ended Nine Months Ended September September 30, 30, 2021 2020 2021 2020 Same branch: Residential $ 610,377 $ 545,688 $ 1,761,630 $ 1,557,954 Commercial 160,856 151,535 489,029 438,597 Same branch net sales 771,233 697,223 2,250,659 1,996,551 Acquisitions (a): Residential $ 62,050 $ ? $ 140,190 $ ? Commercial 12,474 ? 31,961 ? Acquisitions net 74,524 ? 172,151 ? salesTotal net sales $ 845,757 $ 697,223 $ 2,422,810 $ 1,996,551 (a) Represents current year impactof acquisitions in their first twelve months

TopBuild Corp. Reconciliation ofAdjusted EBITDA to Net Income(Unaudited)(in thousands) Trailing Three Months Ended Nine Months Ended Twelve September 30, September 30, Months Ended 2021 2020 2021 2020 September 30, 2021Net income, as $ 95,435 $ 69,996 $ 245,658 $ 176,266 $ 316,415 reportedAdjustments toarrive at EBITDA, asadjusted:Interestexpense and 5,437 7,606 18,000 24,063 25,660 other, netIncome tax 32,934 23,921 80,457 51,407 105,117 expenseDepreciationand 17,784 14,216 51,005 47,527 65,888 amortizationShare-based 2,998 3,280 8,375 12,317 10,968 compensationRationalization ? (274 ) 16 2,102 12 chargesAcquisition 3,634 142 5,844 338 6,362 related costsRefinancingcosts and losson ? ? 13,862 290 13,862 extinguishmentof debtCOVID-19 pay ? 293 659 984 1,043 EBITDA, as $ 158,222 $ 119,180 $ 423,876 $ 315,294 $ 545,327 adjusted Proformaacquisition 105,148 EBITDA ^(a)Proformacombined $ 650,475 EBITDA, asadjusted Net Debt Calculation Long-term debt, $ 711,694 grossAcquisition 807,500 debt ^(b)Total long-term $ 1,519,194 debt, gross Cash and cash $ 327,906 equivalentsAcquisition (243,746 ) cash, net ^(c)Total cash andcash $ 84,160 equivalents Net debt, total $ 1,435,034 (a) Represents the trailing twelve months proforma impact of acquisitions completed through the date of this release.(b) Represents the trailing twelve months proforma impactof debt incurred to fund the acquisition of Distribution International.(c) Represents the trailing twelve months proforma impactof cash used to fund the acquisition of Distribution International.

TopBuild Corp.Acquisition Adjusted Net Sales (Unaudited)(in thousands) Trailing 2020 2021 Twelve Months Ended Q4 Q1 Q2 Q3 September 30, 2021Net Sales $ 721,487 $ 742,798 $ 834,255 $ 845,757 $ 3,144,297 Acquisitionsproforma 57,830 46,727 4,731 1,336 110,624 adjustment ?Net sales,acquisition $ 779,317 $ 789,525 $ 838,986 $ 847,093 $ 3,254,921 adjusted ? Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches

TopBuild Corp. 2021 Estimated Adjusted EBITDA Range (Unaudited)(in millions) Twelve Months Ending December 31, 2021 Low High Estimated net income $ 273.0 $ 308.7 Adjustments to arrive at estimated EBITDA, as adjusted:Interest expense and other, net 29.8 27.8 Income tax expense 95.8 108.4 Depreciation and amortization 80.6 78.5 Share-based compensation 11.8 10.8 Rationalization charges 0.9 0.7 Acquisition related costs 18.2 16.2 Refinancing costs and loss on extinguishment 14.9 13.9 of debtAcquisition purchase accounting, including 60.0 40.0 inventory step-upEstimated EBITDA, as adjusted $ 585.0 $ 605.0