Installed Building Products, Inc.

Good day, everyone, and welcome to the Installed Building Products Fiscal 2024 First Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. You may register to ask a question at any time by pressing the star and 1 on your telephone keypad. You may withdraw yourself from the queue by pressing star and 2. Please note today's call is being recorded, and I'll be standing by if you need any assistance. It is now my pleasure to turn the conference over to Darren Hicks, Managing Director of Investor Relations. Please go ahead.

Good morning, and welcome to Installed Building Products' first quarter 2024 earnings conference call. Earlier today, we issued a press release on our financial results for the first 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 meaning 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 sections 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. Our first quarter sales results reflected fundamental improvements in our single-family end market relative to the last 12 months and the continuation of healthy sales growth in our multifamily end market. We believe our customers are committed to meeting new construction home ownership demand by continuing to build new single-family homes in the current macroeconomic backdrop. We expect our multifamily backlog to keep branches in core geographic markets busy despite ongoing headwinds as it relates to model family unit starts. Longer term, we believe opportunities in our model family and commercial end markets remain attractive. I'm encouraged by the positive same branch sales growth we achieved in our single family end market. The 2% year-over-year increase during the quarter was the first same branch increase since the 2022 fourth quarter. Single family sales growth was supported by a growing proportion of sales from national production builders in the quarter. Our deep customer relationships, local market knowledge, and an ability to align our pricing with the value we offer our customers were key to our first quarter single-family sales results. Our multifamily installation sales growth continued to be resilient with the apparent operational benefits of our centralized services-oriented model. On a same-branch basis, multifamily sales in our installation segment increased 13%. In addition, across our branches, there continues to be an opportunity to sell IBP's installation services in markets that historically have not served multifamily customers. Strong profitability during the quarter continued to reflect our strategic priority to use our expertise to efficiently complete the most operationally and financially attractive jobs for our local business. We achieved record first quarter net profit margin and adjusted EBITDA margin for the three months ended March 31, 2024. I'm proud of our team's continued success, commitment to excellence, and ability to consistently meet the needs of our customers. To everyone at IBP, thank you for your commitment, your hard work, and a tough job always done well. Acquisitions continue to be our top priority as we consider all of our options for capital allocations. Despite our growth over the years, we believe a meaningful opportunity still exists for us to expand our geographic presence and diversify the mix of building products we install across our national branch network. During the 2024 first quarter and in April, we completed the following acquisitions. A Delaware-based installer of fireplaces into new single-family construction projects with annual revenue of approximately $5 million. and a North Carolina-based residential installer of insulation and complementary building products with annual revenue of over $6 million. Overall, while existing home inventories have increased from recent lows in 2022 based on average months of supply, the new single-family housing construction market remains healthy as newly constructed homes are effectively meeting the needs of a typical homebuyer. Additionally, the volume of multifamily units under construction increases, continue to be near historically high levels, which is 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 earnings growth. Based on the U.S. Census Bureau, single family starts year to date through March 2024 have increased by 27%, which we believe bodes well for future demand for our services. Additionally, There are a number of supportive dynamics for our industry that may help demand for our business grow longer term. Specifically, in April, the U.S. Department of Housing and Urban Development announced the adoption of energy efficiency standards for the construction of U.S. Housing and Urban Development and U.S. Department of Agriculture-financed housing. FHA-insured single-family and multifamily projects will be required to comply with the new, generally more stringent energy efficiency standards. This requirement will become effective in 2025. We believe these new standards will be favorable for the environment as well as demand for our business. We intend to continue to focus on that which we can control, leveraging our strong customer relationships, experienced leadership team, national scale, and diverse product categories across multiple end markets to help the company navigate through any future changes in the U.S. housing construction market. I'm proud of our success thus far and continue to be excited by the prospects ahead for IBP and and the broader installation 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 first quarter financial results.