Installed Building Products, Inc.

Greetings and welcome to Installed Building Products Third Quarter 2024 Conference Call. At this time, all participants are on 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, Mr. Darren Hicks. Thank you. You may begin.

Good morning, and welcome to Installed Building Products' third quarter 2024 earnings conference call. Earlier today, we issued a press release on our financial results for the third 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 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 delivered record third quarter revenue and profitability supported by organic growth across all of our end markets. Our record quarterly results highlight the talent, commitment, and focus of IBP's employees across the country who provide our customers with reliable, high-quality building product installation services. I want to mention that late September and early October has been a very difficult time for many people, including numerous IBP employees who were affected by the two hurricanes that hit the southeast and the mid-Atlantic regions of the United States. Our thoughts go out to those who have managed through the destruction and a big thank you goes out to everyone who rallied together and shared resources to support our employees and help restore operations. As we look to the future, the long-term view on demand for our installed service is unchanged. We believe long-term trends across our residential and commercial end markets are favorable as builders work to meet demand through the increased supply of houses, apartments, and commercial structures. Looking at our third quarter sales performance, I am encouraged by consolidated sales growth of nearly 8% and same-branch growth of 5%. In our largest end market, single-family sales growth was supported by a growing proportion of sales from national production builders in the quarter. Additionally, 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 third quarter single-family sales results. our model family installation sales growth continued to be resilient with the apparent operational benefits of our centralized service-oriented model. On a same-branch basis, model family sales in our installation segment increased over 2%. We continue to see geographic and end-market expansion opportunities in model family with an ability to sell IDPs installation services in markets where we historically have not had meaningful participation. Strong quarterly same branch sales growth in our commercial end market reflects positive growth in both the light and heavy commercial markets. Profitability during the third quarter continued to reflect our strategic priority to apply our local market expertise to efficiently complete the most operationally and financially attractive jobs for our local business. This contributed to achieving all-time record quarterly diluted net income per share and adjusted EBITDA in the third quarter. Acquisitions continue to be our top priority as we consider all of our options for capital allocation. 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 third quarter and in October, we completed the following acquisitions. An Illinois-based residential and commercial installer of building products serving key markets in the Midwest, with annual revenue of approximately $20 million, and a specialty distributor focused on supplying insulation and related accessories and machinery to residential and commercial end markets with annual revenue of over $22 million. To date, we have acquired over $73 million of annual revenue. Based on our current acquisition pipeline, we expect more deals to be completed before year end. In addition, although deal timing is hard to predict, our current outlook for acquisition opportunities in 2025 is strong. Based on the U.S. Census Bureau, single-family starts year-to-date through September 2024 have increased by 10%. We believe the current pace of starts growth supports a healthy demand environment for our single-family installation services in the near future. Additionally, beyond the typical demand drivers, we continue to believe the United States government incentives and planned mandates toward more stringent energy efficiency standards in new and existing single-family homes will be favorable for our business. Our strong customer relationships, experienced leadership team, national scale, and diverse product categories across multiple end markets are advantages when navigating the ebbs and flows of demand related to the U.S. construction market. Through the prevailing market conditions, we remain focused on profitability and effective capital allocation to drive earnings growth and value for our shareholders. I'm proud of our team's continued success and commitment to doing an excellent job for our customers. To everyone at IDP, thank you. I remain excited by the prospects ahead for IVP and the broader installation and other building product installation business. So with this overview, I'd like to turn the call over to Michael to provide more detail on our third quarter financial results. Thank you, Jeff, and good morning, everyone.