TopBuild Corp. (NYSE:BLD) Q3 2022 Earnings Conference Call November 1, 2022 9:00 AM ET

Company Participants

Tabitha Zane - Vice President, Investor Relations

Robert Buck - President and Chief Executive Officer

Robert Kuhns - Chief Financial Officer

Conference Call Participants

Ken Zener - Keybanc Capital Markets

Stephen Kim - Evercore ISI

Adam Baumgarten - Zelman & Associates

Doug Wardlaw - JPMorgan

Margaret Grady - Jefferies

Jeff Stevenson - Loop Capital

Trey Grooms - Stephens

Reuben Garner - Benchmark Company

Keith Hughes - Truist Securities

Dan Oppenheim - Credit Suisse

Operator

Greetings. And welcome to TopBuild's Third Quarter 2022 Earnings Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

I will now turn the conference over to Tabitha Zane, Vice President, Investor Relations. Thank you. You may begin.

Tabitha Zane

Thank you, and good morning. On the call today are Robert Buck, President and Chief Executive Officer; and Rob Kuhns, Chief Financial Officer. We have posted senior management's formal remarks and a PowerPoint presentation that summarizes our comments on our website at topbuild.com.

Many of our remarks will include forward-looking statements, which are subject to known and unknown risks and uncertainties, including those set forth in this morning's press release, as well as in the company's filings with the SEC. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. Please note that some of the financial measures to be discussed on this call will be on a non-GAAP basis. The non-GAAP measures are not intended to be considered in isolation, or as a substitute for results prepared in accordance with GAAP. We have provided a reconciliation of these financial measures to the most comparable GAAP measures in a table included in today's press release, and in our first quarter presentation, which can also be found on our website.

I will now turn the call over to Robert Buck.

Robert Buck

Good morning, and thank you for joining us today. Our third quarter financial results reflect the strength of our operating model and our continuing focus on improving our operational efficiency.

Revenue increased 53.8%, 22.6% on a same branch basis, and adjusted EBITDA margins improved at both business segments. On the installation side, our volume continues to outpace completions as trades and supply chains ahead of us show improvements, accelerating our ability to work through the housing backlog. In addition, our commercial business, both heavy and light, is steadily improving. This resulted in third quarter installation revenue growing 27.8%, 26.1% on a same branch basis. Our Specialty Distribution segment on a same branch basis grew revenue 18.7% driven by strong execution and improved volume. We saw solid demand from the commercial and industrial end markets as new projects came online.