Revenue during the quarter grew 24.13 percent to $225.39 million from $181.58 million in the previous year period. Gross margin for the quarter expanded 42 basis points over the previous year period to 29.84 percent. Total expenses were 91.20 percent of quarterly revenues, down from 91.48 percent for the same period last year. This has led to an improvement of 28 basis points in operating margin to 8.80 percent.

Operating income for the quarter was $19.84 million, compared with $15.48 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $29.53 million compared with $22.44 million in the prior year period. At the same time, adjusted EBITDA margin improved 75 basis points in the quarter to 13.10 percent from 12.36 percent in the last year period.

“We continued to generate strong revenue and earnings growth in the third quarter of 2016, and I am extremely pleased with the direction we are headed,” stated Jeff Edwards, Chairman and Chief Executive Officer. “Our differentiated platform and compelling market position allow us to capitalize on a recovering housing market, which continues to show signs of improvement. For the 2016 nine-month period, IBP’s single family same branch sales increased 15.8% compared to growth in total U.S. single family completions of 13.1%. In addition, the year-to-date contribution of $74.7 million in sales from our acquired branches helped total revenues grow 33.5% to $629.0 million, while adjusted net income has increased 57.5% to $29.3 million.”

The company has spent $55.07 million cash to meet investing activities during the nine month period as against cash outgo of $90.97 million in the last year period. It has incurred net capital expenditure of $18.65 million on net basis during the nine month period, down 4.43 percent or $0.86 million from year ago period.

Cash flow from financing activities was $12.73 million for the nine month period, down 77.42 percent or $43.64 million, when compared with the last year period.

Cash and cash equivalents stood at $19.05 million as on Sep. 30, 2016, up 261.82 percent or $13.78 million from $5.26 million on Sep. 30, 2015.

Working capital increases sharply
Installed Building Products, Inc. has recorded an increase in the working capital over the last year. It stood at $64.44 million as at Sep. 30, 2016, up 68.18 percent or $26.12 million from $38.31 million on Sep. 30, 2015. Current ratio was at 1.54 as on Sep. 30, 2016, up from 1.38 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 21 days for the quarter from 28 days for the last year period. Days sales outstanding went down to 44 days for the quarter compared with 47 days for the same period last year.

Days inventory outstanding has decreased to 10 days for the quarter compared with 20 days for the previous year period. At the same time, days payable outstanding went down to 33 days for the quarter from 39 for the same period last year.