TopBuild Corp. (NYSE:BLD) Q2 2022 Earnings Conference Call August 2, 2022 9:00 AM ET

CompanyParticipants

Robert Buck - President & CEO

Rob Kuhns - CFO

Tabitha Zane - VP, IR

Conference Call Participants

Adam Baumgarten - Zelman & Associates

Ken Zener - Keybanc Capital Markets

Philip Ng - Jefferies

Douglas Wardlaw - JPMorgan Chase & Co.

Keith Hughes - Truist Securities

Stephen Kim - Evercore ISI

Ryan Gilbert - BTIG

Operator

Greetings. welcome to TopBuild' 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] As a reminder, this conference is being recorded.

I will now turn the conference over to your host, 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. First, I want to thank our entire TopBuild team for their hard work and dedication, producing another great quarter for our Company and shareholders. Our financial performance continues to prove the strength of our operating model and the ability of our team to successfully navigate market opportunities and challenges. In the second quarter, revenue increased 52.7%, 20.7% on a same-branch basis, and adjusted EBITDA margins at both business segments expanded. Our installation business grew 21.6% on a same-branch basis, with volume handily outpacing completions. Specialty Distribution, on a same-branch basis, grew just over 20%, driven by strong execution and price realization in this prolonged supply-constrained environment. We are particularly pleased with DI’s performance, bolstered by the continued improvement of the commercial and industrial mechanical insulation end-markets. Revenue is growing ahead of plan, due to strong project performance, and the steps we’re taking internally to enhance operational efficiency and execution, are driving strong margin expansion.