Installed Building Products, Inc. (the "Company" or "IBP") (NYSE:IBP), an industry-leading installer of insulation and complementary building products, today announced results for the third quarter ended September 30, 2022.

Third Quarter 2022 Highlights (Comparisons are to Prior Year Period)

Net revenue increased 41.1% to a quarterly record of $719.1 million
- Installation revenue increased 33.5% to $672.9 million, driven by strong growth across IBP's residential new construction markets
- Other revenue, which includes IBP's manufacturing and distribution operations, increased from $5.6 million to $46.2 million, driven by strong operating results and recent acquisitions
Net income increased 74.8% to $61.0 million
Adjusted EBITDA* increased 53.8% to a record $120.2 million
Net income per diluted share increased 80.5% to $2.13
Adjusted net income per diluted share* increased 68.5% to $2.51
Price/mix growth increased by a record 27.1% during the third quarter
At September 30, 2022, IBP had $228.4 million in cash, cash equivalents and investments
Published annual 2022 Environmental, Social and Governance ("ESG") report highlighting the positive impact the Company is making for all stakeholders
Declared third quarter dividend of $0.315 per share which was paid to shareholders on September 30, 2022
Returned $21.5 million to shareholders in the third quarter through dividends and share repurchases

Recent Developments

IBP's Board of Directors declared the fourth quarter regular cash dividend of $0.315 per share

"IBP achieved another quarter of record net revenue, net income, and adjusted EBITDA, which was led by continued strength across our residential end-markets, a favorable pricing environment, and the hard work of our team members," stated Jeff Edwards, Chairman and Chief Executive Officer. "During the third quarter, residential housing unit completion growth accelerated and our business was supported by a robust backlog of units under construction. In addition, we continue to benefit from positive price/mix trends, which increased 27.1% in the third quarter and drove further growth in incremental margins and earnings."

Mr. Edwards continued, "Record cash flow through the 2022 first nine months has allowed us to allocate a growing amount of capital across our proven acquisition strategy, dividend policy and share repurchase program. Year-to-date, we have acquired $73 million of annual revenue across numerous geographic regions. In addition, for the first nine months of 2022, we have returned a total of $166.0 million to shareholders through dividend payments and share repurchases, up from $26.4 million in the same period last year."

"As we outlined in our second annual ESG report, IBP is focused on promoting positive corporate responsibility and creating lasting value for all of its stakeholders. I am extremely proud of our team's ESG progress as well as the record financial results we continue to produce. Despite macroeconomic headwinds, we expect the meaningful backlog of residential units and extended construction cycle times to support demand for our installation services throughout the remainder of 2022 and into 2023," concluded Mr. Edwards.

Acquisition Update

IBP continues to prioritize profitable growth through its proven strategy of acquiring well-run installers of insulation and complementary building products. To date in 2022, IBP has acquired over $73 million of annual revenue and expects to acquire at least $100 million of revenue for the full year.

During the 2022 third quarter, IBP completed the following acquisition:

In September 2022, IBP acquired All Florida Insulation, LLC, a Longwood, Florida based installer of spray foam and fiberglass insulation to residential, multifamily, and commercial customers with annual revenue of approximately $2.4 million.

Cash Dividend and Share Repurchases

IBP's Board of Directors has approved the Company's quarterly cash dividend of $0.315 per share, payable on December 31, 2022, to stockholders of record on December 15, 2022.

During the 2022 nine month period, IBP has repurchased over 1.2 million shares of its common stock at a total cost of $112.2 million, including commissions. At September 30, 2022, the Company had $187.5 million of availability remaining under its stock repurchase program.

Third Quarter 2022 Results Overview

For the third quarter of 2022, net revenue was a quarterly record of $719.1 million, an increase of 41.1% from $509.8 million for the third quarter of 2021. On a consolidated same branch basis, net revenue improved 28.5% from the prior year quarter, which was attributable to a 7.5% increase in the volume of jobs completed and a 27.1% increase in price/mix during the third quarter relative to the same period last year. Residential sales growth within our Installation segment was 34.9% on a same branch basis in the quarter. Commercial sales growth of 16.0% was largely driven by recent acquisitions with same branch sales up 2.8% from the prior year quarter.

Gross profit improved 41.9% to $221.3 million from $155.9 million in the prior year quarter. Adjusted gross profit* as a percent of total revenue was 30.8%, which adjusts for the Company's share-based compensation expense, as well as expenses directly related to COVID-19, compared to 30.7% for the same period last year. The recently acquired distribution companies disclosed in the Other operating segment have lower gross margins than our Installation operating segment. During the 2022 third quarter, the Other operating segment had a gross margin of 21.1% as compared to 33.1% for the Installation operating segment. Our Other segment includes our more recent acquisitions in the distribution businesses, which had an impact on our consolidated gross profit margin of about 80 basis points. The distribution businesses did not have an impact on the prior year third quarter as they had not been acquired at that time.

Selling and administrative expense, as a percent of net revenue, was 16.1% compared to 18.1% in the prior year quarter. Adjusted selling and administrative expense*, as a percent of net revenue, was 15.7% compared to 17.5% in the prior year quarter.

Net income was $61.0 million, or $2.13 per diluted share, compared to $34.9 million, or $1.18 per diluted share in the prior year quarter. Adjusted net income* was $71.7 million, or $2.51 per diluted share, compared to $44.0 million, or $1.49 per diluted share in the prior year quarter. Adjusted net income accounts for the impact of non-core items in both periods, including an addback for non-cash amortization expense related to acquisitions.

Adjusted EBITDA* was $120.2 million, a 53.8% increase from $78.1 million in the prior year quarter, largely due to strong sales growth and lower selling and administrative expenses as a percent of net revenue compared to the prior year quarter.

Conference Call and Webcast

The Company will host a conference call and webcast on November 3, 2022 at 10:00 a.m. Eastern Time to discuss these results. To participate in the call, please dial 877-407-0792 (domestic) or 201-689-8263 (international). The live webcast will be available at www.installedbuildingproducts.com in the investor relations section. A replay of the conference call will be available through December 3, 2022, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13732584.

About Installed Building Products

Installed Building Products, Inc. is one of the nation's largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects in all 48 continental states and the District of Columbia from its national network of over 220 branch locations.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the housing market and the commercial market, our operations, our ESG initiatives, industry conditions, our financial and business model, payment of dividends, the demand for our services and product offerings, the impact of the COVID-19 crisis on our business and end markets, supply chain and material constraints, expansion of our national footprint and end markets, diversification of our products, our ability to grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions and the expected amount of acquired revenue, our ability to improve sales and profitability, the impact of the COVID-19 crisis on our financial results, and expectations for demand for our services and our earnings. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intends," "plan," and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those expressed in or suggested by such forward-looking statements as a result of various factors, including, without limitation, the duration, effect and severity of the COVID-19 crisis; the adverse impact of the COVID-19 crisis on our business and financial results, our supply chain, the economy and the markets we serve; general economic and industry conditions; increases in mortgage interest rates and rising home prices; inflation and interest rates; the material price and supply environment; the timing of increases in our selling prices; the risk that the Company may reduce, suspend or eliminate dividend payments in the future; and the factors discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2021, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. In addition, any future declaration of dividends will be subject to the final determination of our Board of Directors. Any forward-looking statement made by the Company in this press release speaks only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict these events or how they may affect it. The Company has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws.

*Use of Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release contains the non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA margin (i.e., Adjusted EBITDA divided by net revenue), Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Gross Profit and Adjusted Selling and Administrative expense. The reasons for the use of these measures, reconciliations of Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Gross Profit, and Adjusted Selling and Administrative expense to the most directly comparable GAAP measures and other information relating to these measures are included below following the unaudited condensed consolidated financial statements. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for IBP's financial results prepared in accordance with GAAP.

INSTALLED BUILDING PRODUCTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(unaudited, in thousands, except share and per share amounts)

	Three months ended September 30,					Nine months ended September 30,
		2022		2021			2022		2021
Net revenue	$	719,114	$	509,763		$	1,983,355	$	1,434,927
Cost of sales		497,837		353,879			1,372,966		1,001,730
Gross profit		221,277		155,884			610,389		433,197
Operating expenses
Selling		31,651		24,188			86,214		67,677
Administrative		84,345		68,056			247,519		199,607
Amortization		11,370		9,224			33,728		26,798
Operating income		93,911		54,416			242,928		139,115
Other expense, net
Interest expense, net		10,668		7,687			31,669		22,781
Other expense (income)		185		(483	)		698		(494	)
Income before income taxes		83,058		47,212			210,561		116,828
Income tax provision		22,080		12,320			55,857		27,432
Net income	$	60,978	$	34,892		$	154,704	$	89,396
Other comprehensive income (loss), net of tax:
Net change on cash flow hedges, net of tax (provision) benefit of $(5,105) and $(454) for the three months ended September 30, 2022 and 2021, respectively, and $(15,138) and $(2,638) for the nine months ended September 30, 2022 and 2021, respectively		14,379		1,292			42,640		7,762
Comprehensive income	$	75,357	$	36,184		$	197,344	$	97,158
Earnings Per Share:
Basic	$	2.14	$	1.19		$	5.36	$	3.05
Diluted	$	2.13	$	1.18		$	5.33	$	3.02
Weighted average shares outstanding:
Basic		28,478,954		29,404,257			28,851,389		29,355,538
Diluted		28,595,707		29,620,748			29,020,509		29,615,162

Cash dividends declared per share	$	0.32	$	0.30		$	1.85	$	0.90

INSTALLED BUILDING PRODUCTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share and per share amounts)

	September 30,			December 31,
		2022			2021
ASSETS
Current assets
Cash and cash equivalents	$	203,402		$	333,485
Investments		24,996			—
Accounts receivable (less allowance for credit losses of $9,083 and $8,717 at September 30, 2022 and December 31, 2021, respectively)		415,657			312,767
Inventories		182,176			143,039
Prepaid expenses and other current assets		71,790			70,025
Total current assets		898,021			859,316
Property and equipment, net		115,479			105,933
Operating lease right-of-use assets		72,226			69,871
Goodwill		356,612			322,517
Customer relationships, net		184,225			178,264
Other intangibles, net		91,613			86,157
Other non-current assets		45,675			31,144
Total assets	$	1,763,851		$	1,653,202
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities
Current maturities of long-term debt	$	30,494		$	30,839
Current maturities of operating lease obligations		25,414			23,224
Current maturities of finance lease obligations		2,275			1,747
Accounts payable		156,117			132,705
Accrued compensation		61,453			50,964
Other current liabilities		82,809			68,090
Total current liabilities		358,562			307,569
Long-term debt		827,906			832,193
Operating lease obligations		46,640			46,075
Finance lease obligations		5,469			3,297
Deferred income taxes		19,901			4,819
Other long-term liabilities		47,859			42,409
Total liabilities		1,306,337			1,236,362
Commitments and contingencies (Note 16)
Stockholders' equity		—			—
Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively		—			—
Common stock; $0.01 par value: 100,000,000 authorized, 33,429,557 and 33,271,659 issued and 28,604,098 and 29,706,401 shares outstanding at September 30, 2022 and December 31, 2021, respectively		334			333
Additional paid in capital		225,377			211,430
Retained earnings		453,286			352,543
Treasury stock; at cost: 4,825,459and 3,565,258 shares at September 30, 2022 and December 31, 2021, respectively		(263,896	)		(147,239	)
Accumulated other comprehensive income (loss)		42,413			(227	)
Total stockholders' equity		457,514			416,840
Total liabilities and stockholders' equity	$	1,763,851		$	1,653,202

INSTALLED BUILDING PRODUCTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)

	Nine months ended September 30,
		2022			2021
Cash flows from operating activities
Net income	$	154,704		$	89,396
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization of property and equipment		35,153			32,498
Amortization of operating lease right-of-use assets		19,832			16,464
Amortization of intangibles		33,728			26,798
Amortization of deferred financing costs and debt discount		1,436			993
Provision for credit losses		2,754			1,135
Gain on sale of property and equipment		(1,048	)		(1,405	)
Noncash stock compensation		10,290			10,228
Other, net		1,509			2,414
Changes in assets and liabilities, excluding effects of acquisitions
Accounts receivable		(98,528	)		(23,224	)
Inventories		(23,071	)		(37,122	)
Proceeds from termination of interest rate swap agreements		25,462			—
Other assets		4,773			(8,116	)
Accounts payable		20,290			14,120
Income taxes receivable/payable		12,354			(107	)
Other liabilities		(971	)		(7,594	)
Net cash provided by operating activities		198,667			116,478
Cash flows from investing activities
Purchases of investments		(344,388	)		—
Maturities of short term investments		320,000			—
Purchases of property and equipment		(35,212	)		(27,898	)
Acquisitions of businesses, net of cash acquired of $330 and $1,640 in 2022 and 2021, respectively		(75,779	)		(94,500	)
Proceeds from sale of property and equipment		1,418			2,219
Other		(5,974	)		(1,430	)
Net cash used in investing activities		(139,935	)		(121,609	)
Cash flows from financing activities
Payments on Term Loan		(3,750	)		—
Proceeds from vehicle and equipment notes payable		20,492			20,753
Debt issuance costs		(655	)		—
Principal payments on long-term debt		(23,340	)		(19,688	)
Principal payments on finance lease obligations		(1,661	)		(1,573	)
Dividends paid		(53,821	)		(26,428	)
Acquisition-related obligations		(9,423	)		(2,442	)
Repurchase of common stock		(112,193	)		—
Surrender of common stock awards by employees		(4,464	)		(5,576	)
Net cash used in financing activities		(188,815	)		(34,954	)
Net change in cash and cash equivalents		(130,083	)		(40,085	)
Cash and cash equivalents at beginning of period		333,485			231,520
Cash and cash equivalents at end of period	$	203,402		$	191,435
Supplemental disclosures of cash flow information
Net cash paid during the period for:
Interest	$	40,639		$	23,748
Income taxes, net of refunds		43,512			27,428
Supplemental disclosure of noncash activities
Right-of-use assets obtained in exchange for operating lease obligations		22,056			23,543
Release of indemnification of acquisition-related debt		980			2,036
Property and equipment obtained in exchange for finance lease obligations		4,411			1,918
Seller obligations in connection with acquisition of businesses		25,534			18,987
Unpaid purchases of property and equipment included in accounts payable		857			1,327

Information on Segments

In the first quarter of 2022, we realigned our operating segments. This change resulted in our Company having three operating segments consisting of Installation, Distribution and Manufacturing. The Other category reported below reflects the operations of our Distribution and Manufacturing operating segments.

INSTALLED BUILDING PRODUCTS, INC.
SEGMENT INFORMATION
(unaudited, in thousands)

	Three months ended September 30, 2022												Three months ended September 30, 2021
	Installation			Other			Eliminations			Consolidated			Installation			Other			Eliminations			Consolidated
Revenue	$	672,916		$	47,748		$	(1,550	)	$	719,114		$	504,161		$	6,305		$	(703	)	$	509,763
Cost of sales (exclusive of depreciation and amortization shown separately below)		450,017			37,659			(1,116	)		486,560			339,308			4,837			(539	)		343,606
Segment gross profit		222,899			10,089			(434	)		232,554			164,853			1,468			(164	)		166,157
Depreciation and amortization											11,277												10,273
Gross profit, as reported											221,277												155,884
Selling											31,651												24,188
Administrative											84,345												68,056
Amortization											11,370												9,224
Operating income											93,911												54,416
Interest expense, net											10,668												7,687
Other expense (income)											185												(483	)
Income before income taxes										$	83,058											$	47,212

	Three months ended June 30, 2022												Three months ended June 30, 2021
	Installation			Other			Eliminations			Consolidated			Installation			Other			Eliminations			Consolidated
Segment gross profit percentage		33.1	%		21.1	%		28.0	%		32.3	%		32.7	%		23.3	%		23.3	%		32.6	%

	Nine months ended September 30, 2022												Nine months ended September 30, 2021
	Installation			Other			Eliminations			Consolidated			Installation			Other			Eliminations			Consolidated
Revenue	$	1,872,544		$	114,690		$	(3,879	)	$	1,983,355		$	1,419,302		$	17,182		$	(1,557	)	$	1,434,927
Cost of sales (exclusive of depreciation and amortization shown separately below)		1,255,521			87,425			(3,015	)		1,339,931			959,384			12,980			(1,207	)		971,157
Segment gross profit		617,023			27,265			(864	)		643,424			459,918			4,202			(350	)		463,770
Depreciation and amortization											33,035												30,573
Gross profit, as reported											610,389												433,197
Selling											86,214												67,677
Administrative											247,519												199,607
Amortization											33,728												26,798
Operating income											242,928												139,115
Interest expense, net											31,669												22,781
Other expense (income)											698												(494	)
Income before income taxes										$	210,561											$	116,828

	Nine months ended September 30, 2022												Nine months ended September 30, 2021
	Installation			Other			Eliminations			Consolidated			Installation			Other			Eliminations			Consolidated
Segment gross profit percentage		33.0	%		23.8	%		22.3	%		32.4	%		32.4	%		24.5	%		22.5	%		32.3	%

The prior period disclosures in the above table have been recast to conform to the current period segment presentation.

INSTALLED BUILDING PRODUCTS, INC.
REVENUE BY END MARKET
(unaudited, in thousands)

	Three months ended September 30,								Nine months ended September 30,
	2022				2021				2022				2021
Installation
Residential new construction	$	532,299	74	%	$	385,401	76	%	$	1,480,214	75	%	$	1,082,379	75	%
Repair and remodel		39,139	6	%		31,276	6	%		109,745	5	%		89,810	7	%
Commercial		101,478	14	%		87,484	17	%		282,585	14	%		247,113	17	%
Net revenue - Installation		672,916	94	%		504,161	99	%		1,872,544	94	%		1,419,302	99	%
Other ¹		46,198	6	%		5,602	1	%		110,811	6	%		15,625	1	%
Net revenue, as reported	$	719,114	100	%	$	509,763	100	%	$	1,983,355	100	%	$	1,434,927	100	%

¹	Net revenue for manufacturing operations are included in Other category for all periods presented to conform with our change in composition of operating segments.

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Gross Profit and Adjusted Selling and Administrative Expense measure performance by adjusting EBITDA, GAAP net income, gross profit and selling and administrative expense, respectively, for certain income or expense items that are not considered part of our core operations. We believe that the presentation of these measures provides useful information to investors regarding our results of operations because it assists both investors and us in analyzing and benchmarking the performance and value of our business.

We believe the Adjusted EBITDA measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of our capital structure (primarily interest expense), asset base (primarily depreciation and amortization), items outside our control (primarily income taxes) and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. Accordingly, we believe that this measure is useful for comparing general operating performance from period to period. In addition, we use various EBITDA-based measures in determining the achievement of awards under certain of our incentive compensation programs. Other companies may define Adjusted EBITDA differently and, as a result, our measure may not be directly comparable to measures of other companies. In addition, Adjusted EBITDA may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility.

Although we use the Adjusted EBITDA measure to assess the performance of our business, the use of the measure is limited because it does not include certain material expenses, such as interest and taxes, necessary to operate our business. Adjusted EBITDA should be considered in addition to, and not as a substitute for, GAAP net income as a measure of performance. Our presentation of this measure should not be construed as an indication that our future results will be unaffected by unusual or non-recurring items. This measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, this measure is not intended as an alternative to net income as an indicator of our operating performance, as an alternative to any other measure of performance in conformity with GAAP or as an alternative to cash flow provided by operating activities as a measure of liquidity. You should therefore not place undue reliance on this measure or ratios calculated using this measure.

We also believe the Adjusted Net Income measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of certain non-core items such as discontinued operations, acquisition related expenses, amortization expense, the tax impact of these certain non-core items, and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. To make the financial presentation more consistent with other public building products companies, beginning in the fourth quarter 2016 we included an addback for non-cash amortization expense related to acquisitions. Accordingly, we believe that this measure is useful for comparing general operating performance from period to period. Other companies may define Adjusted Net Income differently and, as a result, our measure may not be directly comparable to measures of other companies. In addition, Adjusted Net Income may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility.

INSTALLED BUILDING PRODUCTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED NET INCOME CALCULATIONS
(unaudited, in thousands, except share and per share amounts)

The table below reconciles Adjusted Net Income to the most directly comparable GAAP financial measure, net income, for the periods presented therein.

Per share figures may reflect rounding adjustments and consequently totals may not appear to sum.

	Three months ended September 30,						Nine months ended September 30,
		2022			2021			2022			2021
Net income, as reported	$	60,978		$	34,892		$	154,704		$	89,396
Adjustments for adjusted net income
Share based compensation expense		3,212			3,535			10,290			10,228
Acquisition related expenses		(94	)		(252	)		1,307			1,649
COVID-19 expenses ¹		2			311			303			365
Gain on sale of assets		—			(499	)		—			(499	)
Amortization expense ²		11,370			9,224			33,728			26,798
Legal Reserve		—			—			845			—
Tax impact of adjusted items at a normalized tax rate ³		(3,767	)		(3,203	)		(12,083	)		(10,021	)
Adjusted net income	$	71,701		$	44,008		$	189,094		$	117,916
Weighted average shares outstanding (diluted)		28,595,707			29,620,748			29,020,509			29,615,162
Diluted net income per share, as reported	$	2.13		$	1.18		$	5.33		$	3.02
Adjustments for adjusted net income, net of tax impact, per diluted share ⁴		0.38			0.31			1.19			0.96
Diluted adjusted net income per share	$	2.51		$	1.49		$	6.52		$	3.98

¹	Addback of employee pay, employee medical expenses, and legal fees directly attributable to COVID-19.
²	Addback of all non-cash amortization resulting from business combinations.
³	Normalized effective tax rate of 26.0% applied to periods presented.
⁴	Includes adjustments related to the items noted above, net of tax.

INSTALLED BUILDING PRODUCTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED GROSS PROFIT CALCULATIONS
(unaudited, in thousands)

	Three months ended September 30,						Nine months ended September 30,
		2022			2021			2022			2021
Gross profit, as reported	$	221,277		$	155,884		$	610,389		$	433,197
Share based compensation expense		164			161			484			287
COVID-19 expense ¹		2			310			4			360
Adjusted gross profit	$	221,443		$	156,355		$	610,877		$	433,844
Adjusted gross profit - % Total Revenue		30.8	%		30.7	%		30.8	%		30.2	%

¹	Addback of employee pay, employee medical expenses, and legal fees directly attributable to COVID-19.

INSTALLED BUILDING PRODUCTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED SELLING AND ADMINISTRATIVE EXPENSE CALCULATIONS
(unaudited, in thousands)

	Three months ended September 30,						Nine months ended September 30,
		2022			2021			2022			2021
Selling expense	$	31,651		$	24,188		$	86,214		$	67,677
Administrative expense		84,345			68,056			247,519			199,607
Selling and Administrative, as reported		115,996			92,244			333,733			267,284
Share based compensation expense		3,048			3,374			9,806			9,941
Acquisition related expense		(94	)		(252	)		1,307			1,649
COVID-19 expenses ¹		—			1			299			5
Legal reserve		—			—			845			—
Adjusted Selling and Administrative	$	113,042		$	89,121		$	321,476		$	255,689
Adjusted Selling and Administrative - % Total Revenue		15.7	%		17.5	%		16.2	%		17.8	%

¹	Addback of employee pay, employee medical expenses, and legal fees directly attributable to COVID-19.

INSTALLED BUILDING PRODUCTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED EBITDA CALCULATIONS
(unaudited, in thousands)

The table below reconciles Adjusted EBITDA to the most directly comparable GAAP financial measure, net income, for the periods presented therein.

Per share figures may reflect rounding adjustments and consequently totals may not appear to sum.

	Three months ended September 30,						Nine months ended September 30,
		2022			2021			2022			2021
Adjusted EBITDA
Net income, as reported	$	60,978		$	34,892		$	154,704		$	89,396
Interest expense		10,668			7,687			31,669			22,781
Provision for income tax		22,080			12,320			55,857			27,432
Depreciation and amortization		23,361			20,152			68,881			59,296
EBITDA		117,087			75,051			311,111			198,905
Acquisition related expenses		(94	)		(252	)		1,307			1,649
Share based compensation expense		3,212			3,535			10,290			10,228
COVID-19 expenses ¹		2			311			303			365
Gain on sale of assets		—			(499	)		—			(499	)
Legal reserve		—			—			845			—
Adjusted EBITDA	$	120,207		$	78,146		$	323,856		$	210,648
Adjusted EBITDA Margin		16.7	%		15.3	%		16.3	%		14.7	%

¹	Addback of employee pay, employee medical expenses, and legal fees directly attributable to COVID-19.

INSTALLED BUILDING PRODUCTS, INC.
SUPPLEMENTARY TABLE
(unaudited)

	Three months ended September 30,		Nine months ended September 30,
	2022	2021	2022	2021
Period-over-period Growth
Consolidated Sales Growth	41.1%	21.2%	38.2%	18.4%
Consolidated Same Branch Sales Growth	28.5%	11.2%	26.2%	8.9%

Installation ¹
Sales Growth	33.5%	21.3%	31.9%	18.2%
Same Branch Sales Growth	28.4%	11.2%	26.2%	8.6%

Single-Family Sales Growth	39.2%	24.1%	38.2%	20.1%
Single-Family Same Branch Sales Growth	35.3%	16.0%	32.8%	12.8%

Multi-Family Sales Growth	33.9%	18.2%	29.7%	17.0%
Multi-Family Same Branch Sales Growth	32.9%	10.9%	28.9%	7.0%

Residential Sales Growth	38.4%	23.2%	36.8%	19.6%
Residential Same Branch Sales Growth	34.9%	15.1%	32.1%	11.8%

Commercial Sales Growth ²	16.0%	17.5%	14.4%	12.1%
Commercial Same Branch Sales Growth	2.8%	(0.2)%	4.4%	(5.0)%

Other^1,3
Sales Growth	657.3%	23.0%	567.5%	44.0%
Same Branch Sales Growth	44.3%	23.0%	43.8%	44.0%

Same Branch Sales Growth - Installation
Volume Growth ⁴	7.5%	4.7%	7.9%	10.4%
Price/Mix Growth⁴	27.1%	7.4%	22.2%	(0.3)%

U.S. Housing Market ⁵
Total Completions Growth	6.5%	(2.1)%	2.3%	5.9%
Single-Family Completions Growth	8.1%	1.5%	5.4%	6.9%
Multi-Family Completions Growth	5.6%	(9.6)%	(5.3)%	4.3%

¹	During the three months ended March 31, 2022, we realigned our operating segments to reflect recent changes in our business. Prior period disclosures in the above table have been recast to conform to the current period segment presentation. The segment change has no impact on the Company's previously reported consolidated U.S. GAAP financial results.
²	Our commercial end market consists of heavy and light commercial projects.
³	Other business segment category includes our manufacturing and distribution businesses operating segments. As of 1Q22, Installation segment end market growth metrics exclude the manufacturing and distribution businesses. Our distribution businesses were acquired in December, 2021 and April, 2022.
⁴	The heavy commercial end market is excluded from these metrics given its much larger per-job revenue compared to our average job.
⁵	U.S. Census Bureau data, as revised.

INSTALLED BUILDING PRODUCTS, INC.
INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS
(unaudited, in thousands)

Revenue Increase
	Three months ended September 30,								Nine months ended September 30,
		2022	% Total			2021	% Total			2022	% Total			2021	% Total
Same Branch	$	145,083	69.3	%	$	47,216	52.9	%	$	376,491	68.6	%	$	107,467	48.2	%
Acquired		64,269	30.7	%		42,060	47.1	%		171,937	31.4	%		115,704	51.8	%
Total	$	209,352	100.0	%	$	89,276	100.0	%	$	548,428	100.0	%	$	223,171	100.0	%
Adjusted EBITDA Margin Contributions
	Three months ended September 30,								Nine months ended September 30,
		2022	% Margin			2021	% Margin			2022	% Margin			2021	% Margin
Same Branch	$	35,873	24.7	%	$	6,220	13.2	%	$	92,808	24.7	%	$	14,011	13.0	%
Acquired		6,187	9.6	%		5,726	13.6	%		20,400	11.9	%		18,172	15.7	%
Total	$	42,060	20.1	%	$	11,946	13.4	%	$	113,208	20.6	%	$	32,183	14.4	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20221102005993/en/

Installed Building Products Reports Record Quarterly Results for the Third Quarter 2022 and Declares Regular Quarterly Cash Dividend