Installed Building Products, Inc.

Greetings and welcome to the Installed Building Products Fiscal 2023 Fourth Quarter Financial Results Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Darren Hicks. Managing Director of Investor Relations for Installed Building Products. Thank you. You may begin.

Good morning, and welcome to Installed Building Products' fourth quarter 2023 earnings conference call. Earlier today, we issued a press release on our financial results for the fourth quarter, which can be found in the Investor Relations section of our website. On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements within the meeting of the Federal Securities Laws. These forward-looking statements are based on management's current expectations and beliefs. These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those described today. Please refer to the cautionary statements and risk factors in our SEC filings, including our annual report on Form 10-K. We undertake no duty or obligation to update any forward-looking statement as a result of new information or future events, except as required by federal securities laws. In addition, management refers to certain non-GAAP and adjusted financial measures on this call. You can find a reconciliation of such measures to the nearest GAAP equivalent in the company's earnings release and additional reconciliation for EBITDA and adjusted EBITDA for earlier fiscal years in our investor presentation, which are available on our investor relations section of our website. This morning's conference call is hosted by Jeff Edwards, our Chairman and Chief Executive Officer and Michael Miller, our Chief Financial Officer, and joined by Jason Neiswanger, our Chief Administrative and Sustainability Officer. I will now turn the call over to Jeff.

Thanks, Darren, and good morning to everyone joining us on today's call. As usual, I will start the call with some highlights and then turn the call over to Michael, who will discuss our financial results and capital position in more detail before we take your questions. IBP improved both sales and profitability in the fourth quarter, helping IBP achieve another year of record financial results, including record revenue, net income, and adjusted EBITDA. I'm proud of IBP's performance in 2023, as installation sales growth in our model family and commercial end markets more than offset softer single-family sales growth throughout the year. Our installation teams worked efficiently to optimize the value we provide to our customers, with each completed job driving record annual net profit and adjusted EBITDA margins in 2023. The talent and commitment of our employees, combined with the strength of our business model, enabled the company to once again reach new heights in 2023. Throughout 2023, our acquisitions contributed positively to our financial results. we invested approximately $60 million in acquisitions while returning nearly $70 million to shareholders through dividends and share repurchases. I'm pleased to report that for the 2024 first quarter, our board of directors has approved an increase to our regular quarterly cash dividend by 6% and declared an annual variable dividend of $1.60 per share, representing a 70 cents per share increase over last year's variable dividend. On February 12th, 2024, we celebrated the 10th anniversary of our public offering by ringing the closing bell at the New York Stock Exchange. Since our IPO in 2014, net revenue, net income, and adjusted EBITDA have grown at compound annual growth rates of 21%, 37%, and 31% respectively. During this period, we completed almost 90 acquisitions, expanding our footprint across the United States and diversifying our revenue to additional end markets and product categories. As a result, IBP has transformed from a regional installer of insulation to one of the largest installers of building products in the country. The success of our growth strategies combined with our disciplined approach to capital allocation has created significant value for our shareholders. The credit for our accomplishments goes to the hardworking men and women across our roughly 250 branches throughout the United States and those who support them from our office in Columbus, Ohio. To everyone at IBP, thank you. As we continue to focus on profitable growth, we remain committed to doing the right thing for our employees, customers, communities, and shareholders. During 2023, we acquired eight companies with combined annual revenue of approximately $75 million, further expanding our product offering and geographic presence. We expect to acquire at least $100 million of annual revenue each year, however. Acquisition timing is unpredictable, and certain acquisitions may change from their intended closing dates within a given calendar year. During the 2023 fourth quarter, we completed two acquisitions, including a North Dakota-based installer of fiberglass and spray foam insulation in model family, residential, and commercial customers with annual revenue of approximately $2 million and and a Florida-based installer of diverse mix of building products to new residential construction projects in the Orlando market with annual revenue of approximately $16.5 million. Overall, the residential housing market continues to be resilient as relatively low existing home inventory levels have led to a higher percentage of new construction home sales relative to historical averages. An elevated volume of multifamily units under construction continue to be supportive of our installation business. We believe we are well positioned for another year of strong operational and financial performance in 2024 as we continue to focus on profitability and effective capital allocation to drive growth. Longer term, we believe that housing demand will continue to grow and the installation industry has favorable opportunities ahead including demand driven by the Inflation Reduction Act of 2022 and the bipartisan infrastructure law, which are intended to improve energy efficiency in residential homes. IBP's strong customer relationships, experienced leadership team, national scale, and diverse product categories across multiple end markets will help the company navigate future changes in the U.S. housing market. I'm proud of our continued success and excited by the prospects ahead for IBP, and the broader insulation and other product installation business. So with this overview, I'd like to turn the call over to Michael to provide more detail on our fourth quarter financial results.