10-Q 1 bld-20220630x10q.htm 10-Q
http://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization00http://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization0001633931false--12-312022Q20001633931bld:ShareRepurchaseProgram2021Member2022-06-300001633931bld:ShareRepurchaseProgram2022Member2022-07-250001633931srt:MaximumMemberbld:ShareRepurchaseProgram2021Member2021-07-260001633931srt:MaximumMemberbld:RepurchaseProgram2019Member2019-02-220001633931us-gaap:CommonStockMember2022-01-012022-03-310001633931us-gaap:CommonStockMember2021-01-012021-03-310001633931us-gaap:TreasuryStockCommonMember2022-06-300001633931us-gaap:RetainedEarningsMember2022-06-300001633931us-gaap:CommonStockMember2022-06-300001633931us-gaap:AdditionalPaidInCapitalMember2022-06-300001633931us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001633931us-gaap:TreasuryStockCommonMember2022-03-310001633931us-gaap:RetainedEarningsMember2022-03-310001633931us-gaap:CommonStockMember2022-03-310001633931us-gaap:AdditionalPaidInCapitalMember2022-03-310001633931us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100016339312022-03-310001633931us-gaap:TreasuryStockCommonMember2021-12-310001633931us-gaap:RetainedEarningsMember2021-12-310001633931us-gaap:CommonStockMember2021-12-310001633931us-gaap:AdditionalPaidInCapitalMember2021-12-310001633931us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001633931us-gaap:TreasuryStockCommonMember2021-06-300001633931us-gaap:RetainedEarningsMember2021-06-300001633931us-gaap:CommonStockMember2021-06-300001633931us-gaap:AdditionalPaidInCapitalMember2021-06-300001633931us-gaap:TreasuryStockCommonMember2021-03-310001633931us-gaap:RetainedEarningsMember2021-03-310001633931us-gaap:CommonStockMember2021-03-310001633931us-gaap:AdditionalPaidInCapitalMember2021-03-3100016339312021-03-310001633931us-gaap:TreasuryStockCommonMember2020-12-310001633931us-gaap:RetainedEarningsMember2020-12-310001633931us-gaap:CommonStockMember2020-12-310001633931us-gaap:AdditionalPaidInCapitalMember2020-12-310001633931us-gaap:EmployeeStockOptionMember2021-12-310001633931us-gaap:EmployeeStockOptionMember2022-06-300001633931bld:LongTermIncentivePlanMember2022-06-300001633931srt:MaximumMemberbld:LongTermIncentivePlanMember2022-06-300001633931us-gaap:RestrictedStockMember2022-06-300001633931us-gaap:RestrictedStockMember2021-12-310001633931bld:Acquisitions2021Member2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:ResidentialMemberbld:InstallationSegmentMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:ResidentialMemberbld:DistributionSegmentMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:RainGuttersMemberbld:InstallationSegmentMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:RainGuttersMemberbld:DistributionSegmentMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:InsulationAndAccessoriesMemberbld:InstallationSegmentMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:InsulationAndAccessoriesMemberbld:DistributionSegmentMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:IndustrialMemberbld:DistributionSegmentMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:GlassAndWindowsMemberbld:InstallationSegmentMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:CommercialMemberbld:InstallationSegmentMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:CommercialMemberbld:DistributionSegmentMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:AllOtherProductsMemberbld:InstallationSegmentMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:AllOtherProductsMemberbld:DistributionSegmentMember2022-04-012022-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:ResidentialMember2022-04-012022-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:RainGuttersMember2022-04-012022-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:InsulationAndAccessoriesMember2022-04-012022-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:CommercialMember2022-04-012022-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:AllOtherProductsMember2022-04-012022-06-300001633931bld:ResidentialMember2022-04-012022-06-300001633931bld:RainGuttersMember2022-04-012022-06-300001633931bld:InsulationAndAccessoriesMember2022-04-012022-06-300001633931bld:IndustrialMember2022-04-012022-06-300001633931bld:GlassAndWindowsMember2022-04-012022-06-300001633931bld:EliminationsAndReconcilingItemsMember2022-04-012022-06-300001633931bld:CommercialMember2022-04-012022-06-300001633931bld:AllOtherProductsMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:ResidentialMemberbld:InstallationSegmentMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:ResidentialMemberbld:DistributionSegmentMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:RainGuttersMemberbld:InstallationSegmentMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:RainGuttersMemberbld:DistributionSegmentMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:InsulationAndAccessoriesMemberbld:InstallationSegmentMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:InsulationAndAccessoriesMemberbld:DistributionSegmentMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:IndustrialMemberbld:DistributionSegmentMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:GlassAndWindowsMemberbld:InstallationSegmentMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:CommercialMemberbld:InstallationSegmentMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:CommercialMemberbld:DistributionSegmentMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:AllOtherProductsMemberbld:InstallationSegmentMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:AllOtherProductsMemberbld:DistributionSegmentMember2022-01-012022-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:ResidentialMember2022-01-012022-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:RainGuttersMember2022-01-012022-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:InsulationAndAccessoriesMember2022-01-012022-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:CommercialMember2022-01-012022-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:AllOtherProductsMember2022-01-012022-06-300001633931bld:ResidentialMember2022-01-012022-06-300001633931bld:RainGuttersMember2022-01-012022-06-300001633931bld:InsulationAndAccessoriesMember2022-01-012022-06-300001633931bld:IndustrialMember2022-01-012022-06-300001633931bld:GlassAndWindowsMember2022-01-012022-06-300001633931bld:EliminationsAndReconcilingItemsMember2022-01-012022-06-300001633931bld:CommercialMember2022-01-012022-06-300001633931bld:AllOtherProductsMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:ResidentialMemberbld:InstallationSegmentMember2021-04-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:ResidentialMemberbld:DistributionSegmentMember2021-04-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:RainGuttersMemberbld:InstallationSegmentMember2021-04-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:RainGuttersMemberbld:DistributionSegmentMember2021-04-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:InsulationAndAccessoriesMemberbld:InstallationSegmentMember2021-04-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:InsulationAndAccessoriesMemberbld:DistributionSegmentMember2021-04-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:GlassAndWindowsMemberbld:InstallationSegmentMember2021-04-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:CommercialMemberbld:InstallationSegmentMember2021-04-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:CommercialMemberbld:DistributionSegmentMember2021-04-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:AllOtherProductsMemberbld:InstallationSegmentMember2021-04-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:AllOtherProductsMemberbld:DistributionSegmentMember2021-04-012021-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:ResidentialMember2021-04-012021-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:RainGuttersMember2021-04-012021-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:InsulationAndAccessoriesMember2021-04-012021-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:CommercialMember2021-04-012021-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:AllOtherProductsMember2021-04-012021-06-300001633931bld:ResidentialMember2021-04-012021-06-300001633931bld:RainGuttersMember2021-04-012021-06-300001633931bld:InsulationAndAccessoriesMember2021-04-012021-06-300001633931bld:GlassAndWindowsMember2021-04-012021-06-300001633931bld:EliminationsAndReconcilingItemsMember2021-04-012021-06-300001633931bld:CommercialMember2021-04-012021-06-300001633931bld:AllOtherProductsMember2021-04-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:ResidentialMemberbld:InstallationSegmentMember2021-01-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:ResidentialMemberbld:DistributionSegmentMember2021-01-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:RainGuttersMemberbld:InstallationSegmentMember2021-01-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:RainGuttersMemberbld:DistributionSegmentMember2021-01-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:InsulationAndAccessoriesMemberbld:InstallationSegmentMember2021-01-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:InsulationAndAccessoriesMemberbld:DistributionSegmentMember2021-01-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:GlassAndWindowsMemberbld:InstallationSegmentMember2021-01-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:CommercialMemberbld:InstallationSegmentMember2021-01-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:CommercialMemberbld:DistributionSegmentMember2021-01-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:AllOtherProductsMemberbld:InstallationSegmentMember2021-01-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:AllOtherProductsMemberbld:DistributionSegmentMember2021-01-012021-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:ResidentialMember2021-01-012021-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:RainGuttersMember2021-01-012021-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:InsulationAndAccessoriesMember2021-01-012021-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:CommercialMember2021-01-012021-06-300001633931bld:EliminationsAndReconcilingItemsMemberbld:AllOtherProductsMember2021-01-012021-06-300001633931bld:ResidentialMember2021-01-012021-06-300001633931bld:RainGuttersMember2021-01-012021-06-300001633931bld:InsulationAndAccessoriesMember2021-01-012021-06-300001633931bld:GlassAndWindowsMember2021-01-012021-06-300001633931bld:EliminationsAndReconcilingItemsMember2021-01-012021-06-300001633931bld:CommercialMember2021-01-012021-06-300001633931bld:AllOtherProductsMember2021-01-012021-06-300001633931us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001633931us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001633931us-gaap:OperatingSegmentsMemberbld:InstallationSegmentMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:DistributionSegmentMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMember2022-04-012022-06-300001633931us-gaap:IntersegmentEliminationMember2022-04-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:InstallationSegmentMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:DistributionSegmentMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMember2022-01-012022-06-300001633931us-gaap:IntersegmentEliminationMember2022-01-012022-06-300001633931us-gaap:OperatingSegmentsMemberbld:InstallationSegmentMember2021-04-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:DistributionSegmentMember2021-04-012021-06-300001633931us-gaap:OperatingSegmentsMember2021-04-012021-06-300001633931us-gaap:IntersegmentEliminationMember2021-04-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:InstallationSegmentMember2021-01-012021-06-300001633931us-gaap:OperatingSegmentsMemberbld:DistributionSegmentMember2021-01-012021-06-300001633931us-gaap:OperatingSegmentsMember2021-01-012021-06-300001633931us-gaap:IntersegmentEliminationMember2021-01-012021-06-300001633931us-gaap:CorporateNonSegmentMember2022-04-012022-06-300001633931us-gaap:CorporateNonSegmentMember2022-01-012022-06-300001633931us-gaap:CorporateNonSegmentMember2021-04-012021-06-300001633931us-gaap:CorporateNonSegmentMember2021-01-012021-06-300001633931us-gaap:RetainedEarningsMember2022-04-012022-06-300001633931us-gaap:RetainedEarningsMember2022-01-012022-03-310001633931us-gaap:RetainedEarningsMember2021-04-012021-06-300001633931us-gaap:RetainedEarningsMember2021-01-012021-03-310001633931srt:MinimumMemberus-gaap:RevolvingCreditFacilityMember2022-01-012022-06-300001633931srt:MaximumMemberus-gaap:RevolvingCreditFacilityMember2022-01-012022-06-300001633931bld:AmendedCreditAgreementOctober2021Memberus-gaap:SecuredDebtMember2022-06-300001633931bld:AmendedCreditAgreementOctober2021Memberus-gaap:SecuredDebtMember2021-10-070001633931us-gaap:SecuredDebtMember2021-10-070001633931bld:AmendedCreditAgreementOctober2021Member2021-10-070001633931bld:AmendedCreditAgreementMemberus-gaap:SecuredDebtMember2021-03-080001633931us-gaap:RevolvingCreditFacilityMember2022-06-300001633931us-gaap:RevolvingCreditFacilityMember2021-12-310001633931bld:InstallationSegmentMember2022-01-012022-06-300001633931bld:DistributionInternationalMember2022-01-012022-06-3000016339312021-10-012021-12-310001633931bld:InstallationSegmentMember2021-12-310001633931bld:DistributionSegmentMember2021-12-310001633931bld:DistributionSegmentMember2022-01-012022-06-300001633931bld:InstallationSegmentMember2022-06-300001633931bld:DistributionSegmentMember2022-06-300001633931srt:MaximumMemberbld:DebtInstrumentRedemptionOptionTwoMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2022-01-012022-06-300001633931bld:SeniorNotesDue2026Member2021-03-152021-03-150001633931bld:DebtInstrumentRedemptionOptionOneMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2022-01-012022-06-300001633931bld:ChangeInControlScenarioMemberbld:SeniorNotesDue2032Member2022-01-012022-06-300001633931bld:ChangeInControlScenarioMemberbld:SeniorNotesDue2029Member2022-01-012022-06-300001633931bld:SeniorNotesDue2032Memberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2021-10-142021-10-140001633931bld:SeniorNotesDue2032Memberus-gaap:DebtInstrumentRedemptionPeriodThreeMember2021-10-142021-10-140001633931bld:SeniorNotesDue2032Memberus-gaap:DebtInstrumentRedemptionPeriodFourMember2021-10-142021-10-140001633931bld:SeniorNotesDue2032Memberus-gaap:DebtInstrumentRedemptionPeriodFiveMember2021-10-142021-10-140001633931bld:AmendedCreditAgreementOctober2021Member2022-01-012022-06-300001633931srt:MinimumMemberbld:EquipmentNotesMember2022-06-300001633931srt:MaximumMemberbld:EquipmentNotesMember2022-06-300001633931bld:SeniorNotesDue2032Memberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-06-300001633931bld:SeniorNotesDue2029Memberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-06-300001633931bld:SeniorNotesDue2032Member2021-10-140001633931bld:SeniorNotesDue2029Member2021-03-150001633931bld:SeniorNotesDue2026Member2021-03-150001633931us-gaap:SecuredDebtMember2022-06-300001633931bld:SeniorNotesDue2032Member2022-06-300001633931bld:SeniorNotesDue2029Member2022-06-300001633931bld:EquipmentNotesMember2022-06-300001633931us-gaap:SecuredDebtMember2021-12-310001633931bld:SeniorNotesDue2032Member2021-12-310001633931bld:SeniorNotesDue2029Member2021-12-310001633931bld:EquipmentNotesMember2021-12-310001633931bld:BaseRateBorrowingsMemberbld:AmendedCreditAgreementOctober2021Memberbld:FederalFundsRateMember2022-01-012022-06-300001633931us-gaap:AccruedLiabilitiesMember2022-06-300001633931us-gaap:AccruedLiabilitiesMember2021-12-310001633931bld:ReceivablesNetMember2022-06-300001633931bld:ReceivablesNetMember2021-12-310001633931bld:AccountsReceivableNetCurrentMember2022-06-300001633931bld:AccountsReceivableNetCurrentMember2021-12-3100016339312020-12-310001633931bld:GreenEnergySolutionsInc.Member2022-03-312022-03-310001633931bld:BillingsInsulationServiceInc.Member2022-02-032022-02-030001633931bld:SouthwestInsulationInc.Member2022-01-122022-01-120001633931bld:AbsMember2021-04-052021-04-050001633931bld:LCRContractorsMember2021-01-202021-01-200001633931us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2021-01-012021-06-300001633931bld:Acquisitions2021Member2021-01-012021-06-3000016339312021-06-300001633931bld:VestingBasedOnServiceMemberus-gaap:RestrictedStockMember2022-04-012022-06-300001633931bld:VestingBasedOnMarketConditionsMemberus-gaap:RestrictedStockMember2022-04-012022-06-300001633931us-gaap:EmployeeStockOptionMember2022-04-012022-06-300001633931bld:VestingBasedOnServiceMemberus-gaap:RestrictedStockMember2022-01-012022-06-300001633931bld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2022-01-012022-06-300001633931bld:VestingBasedOnMarketConditionsMemberus-gaap:RestrictedStockMember2022-01-012022-06-300001633931us-gaap:EmployeeStockOptionMember2022-01-012022-06-300001633931bld:VestingBasedOnServiceMemberus-gaap:RestrictedStockMember2021-04-012021-06-300001633931bld:VestingBasedOnMarketConditionsMemberus-gaap:RestrictedStockMember2021-04-012021-06-300001633931us-gaap:EmployeeStockOptionMember2021-04-012021-06-300001633931bld:VestingBasedOnServiceMemberus-gaap:RestrictedStockMember2021-01-012021-06-300001633931bld:VestingBasedOnMarketConditionsMemberus-gaap:RestrictedStockMember2021-01-012021-06-300001633931us-gaap:EmployeeStockOptionMember2021-01-012021-06-300001633931us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001633931us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001633931us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100016339312022-07-270001633931us-gaap:TreasuryStockCommonMember2022-01-012022-03-310001633931us-gaap:TreasuryStockCommonMember2021-04-012021-06-300001633931us-gaap:TreasuryStockCommonMember2021-01-012021-03-310001633931us-gaap:TreasuryStockCommonMember2022-04-012022-06-300001633931us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-3000016339312022-01-012022-03-3100016339312021-01-012021-03-310001633931bld:ShareBasedCompensationArrangementByShareBasedPaymentAwardPayoutRangeTwoMemberbld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2022-02-150001633931bld:ShareBasedCompensationArrangementByShareBasedPaymentAwardPayoutRangeThreeMemberbld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2022-02-150001633931bld:ShareBasedCompensationArrangementByShareBasedPaymentAwardPayoutRangeOneMemberbld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2022-02-150001633931bld:ShareBasedCompensationArrangementByShareBasedPaymentAwardPayoutRangeFourMemberbld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2022-02-150001633931bld:ShareBasedCompensationArrangementByShareBasedPaymentAwardPayoutRangeTwoMemberbld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2021-02-160001633931bld:ShareBasedCompensationArrangementByShareBasedPaymentAwardPayoutRangeThreeMemberbld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2021-02-160001633931bld:ShareBasedCompensationArrangementByShareBasedPaymentAwardPayoutRangeOneMemberbld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2021-02-160001633931bld:ShareBasedCompensationArrangementByShareBasedPaymentAwardPayoutRangeFourMemberbld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2021-02-160001633931bld:ShareBasedCompensationArrangementByShareBasedPaymentAwardPayoutRangeTwoMemberbld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2020-02-170001633931bld:ShareBasedCompensationArrangementByShareBasedPaymentAwardPayoutRangeThreeMemberbld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2020-02-170001633931bld:ShareBasedCompensationArrangementByShareBasedPaymentAwardPayoutRangeOneMemberbld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2020-02-170001633931bld:ShareBasedCompensationArrangementByShareBasedPaymentAwardPayoutRangeFourMemberbld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2020-02-170001633931bld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2022-02-152022-02-150001633931bld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2021-02-162021-02-160001633931bld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2020-02-172020-02-170001633931bld:VestingBasedOnPerformanceMemberbld:RestrictedStockAwardsGrantedFebruary2019Member2022-01-012022-03-310001633931us-gaap:EmployeeStockOptionMember2022-01-012022-06-300001633931us-gaap:RestrictedStockMember2021-01-012021-06-300001633931us-gaap:RestrictedStockMember2022-01-012022-06-300001633931bld:VestingBasedOnPerformanceMemberus-gaap:RestrictedStockMember2022-01-012022-06-300001633931bld:EquipmentNotesMember2022-01-012022-06-300001633931bld:EventOfDefaultScenarioMemberus-gaap:SeniorNotesMember2022-01-012022-06-300001633931bld:SeniorNotesDue2032Member2022-06-300001633931bld:SeniorNotesDue2029Member2022-06-300001633931bld:AmendedCreditAgreementOctober2021Memberus-gaap:RevolvingCreditFacilityMember2022-06-300001633931bld:AmendedCreditAgreementOctober2021Memberus-gaap:RevolvingCreditFacilityMember2021-10-070001633931bld:AmendedCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2021-03-080001633931bld:AmendedCreditAgreementOctober2021Member2022-06-3000016339312022-04-012022-06-3000016339312021-04-012021-06-3000016339312021-01-012021-06-300001633931bld:VestingBasedOnServiceMember2022-04-012022-06-300001633931bld:VestingBasedOnPerformanceMember2022-04-012022-06-300001633931bld:VestingBasedOnMarketConditionsMember2022-04-012022-06-300001633931bld:VestingBasedOnServiceMember2022-01-012022-06-300001633931bld:VestingBasedOnPerformanceMember2022-01-012022-06-300001633931bld:VestingBasedOnMarketConditionsMember2022-01-012022-06-300001633931bld:VestingBasedOnServiceMember2021-04-012021-06-300001633931bld:VestingBasedOnPerformanceMember2021-04-012021-06-300001633931bld:VestingBasedOnMarketConditionsMember2021-04-012021-06-300001633931bld:VestingBasedOnServiceMember2021-01-012021-06-300001633931bld:VestingBasedOnPerformanceMember2021-01-012021-06-300001633931bld:VestingBasedOnMarketConditionsMember2021-01-012021-06-300001633931bld:BaseRateBorrowingsMemberbld:AmendedCreditAgreementOctober2021Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-01-012022-06-300001633931bld:LIBORRateBorrowingsMemberbld:AmendedCreditAgreementOctober2021Member2022-01-012022-06-300001633931bld:AmendedCreditAgreementMemberus-gaap:EurodollarMember2021-03-082021-03-080001633931bld:AmendedCreditAgreementMemberus-gaap:BaseRateMember2021-03-082021-03-080001633931bld:AmendedCreditAgreementMemberus-gaap:EurodollarMember2021-03-072021-03-070001633931bld:AmendedCreditAgreementMemberus-gaap:BaseRateMember2021-03-072021-03-070001633931bld:DebtInstrumentRedemptionOptionTwoMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2022-01-012022-06-300001633931bld:SeniorNotesDue2032Memberbld:DebtInstrumentRedemptionPeriodSevenMember2021-10-142021-10-140001633931srt:MinimumMemberbld:LIBORRateBorrowingsMemberbld:AmendedCreditAgreementOctober2021Member2022-01-012022-06-300001633931srt:MinimumMemberbld:BaseRateBorrowingsMemberbld:AmendedCreditAgreementOctober2021Member2022-01-012022-06-300001633931srt:MaximumMemberbld:LIBORRateBorrowingsMemberbld:AmendedCreditAgreementOctober2021Member2022-01-012022-06-300001633931srt:MaximumMemberbld:BaseRateBorrowingsMemberbld:AmendedCreditAgreementOctober2021Member2022-01-012022-06-300001633931bld:AssuredInsulationServiceInc.Member2022-04-072022-04-070001633931bld:Acquisitions2022Member2022-01-012022-06-3000016339312022-01-012022-06-3000016339312022-06-3000016339312021-12-310001633931bld:AcceleratedShareRepurchaseAgreement2022Member2022-05-05xbrli:purexbrli:sharesiso4217:USDiso4217:USDxbrli:sharesbld:segmentbld:item

UNITED STATES

SECURITIES AND EXCHANGE

COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                to               

Commission file number: 001-36870

TopBuild Corp.

(Exact name of Registrant as Specified in its Charter)

Delaware

(State or Other Jurisdiction of Incorporation or
Organization)

47-3096382

(I.R.S. Employer
Identification No.)

475 North Williamson Boulevard

Daytona Beach, Florida

(Address of Principal Executive Offices)

32114

(Zip Code)

(386) 304-2200

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01 per share

BLD

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes             No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes             No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  

Large accelerated filer      Accelerated filer      Non-accelerated filer   Smaller reporting company     Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes             No

The registrant had outstanding 32,378,790 shares of Common Stock, par value $0.01 per share as of July 27, 2022.

TOPBUILD CORP.

TABLE OF CONTENTS

Page No.

Part I.

Financial Information

Item 1.

Financial Statements (Unaudited)

Condensed Consolidated Balance Sheets

4

Condensed Consolidated Statements of Operations

5

Condensed Consolidated Statements of Comprehensive Income

6

Condensed Consolidated Statements of Cash Flows

7

Condensed Consolidated Statements of Changes in Equity

8

Notes to Condensed Consolidated Financial Statements

9

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

24

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

31

Item 4.

Controls and Procedures

32

Part II.

Other Information

Item 1.

Legal Proceedings

32

Item 1A.

Risk Factors

32

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

32

Item 3.

Defaults upon Senior Securities

33

Item 4.

Mine Safety Disclosures

33

Item 5.

Other Information

33

Item 6.

Exhibits

33

Index to Exhibits

34

Signature

35

2

GLOSSARY

We use acronyms, abbreviations, and other defined terms throughout this quarterly report on Form 10-Q, which are defined in the glossary below:

Term

    

Definition

3.625% Senior Notes

TopBuild's 3.625% senior unsecured notes issued March 15, 2021 and due March 15, 2029

4.125% Senior Notes

TopBuild's 4.125% senior unsecured notes issued October 14, 2021 and due February 15, 2032

5.625% Senior Notes

TopBuild's 5.625% senior unsecured notes which were due on May 1, 2026 and redeemed in full on March 15, 2021

2015 LTIP

2015 Long-Term Incentive Program authorizes the Board to grant stock options, stock appreciation rights, restricted shares, restricted share units, performance awards, and dividend equivalents

2022 ASR Agreement

$100 million accelerated share repurchase agreement with Bank of America, N.A.

2019 Repurchase Program

$200 million share repurchase program authorized by the Board on February 22, 2019

2021 Repurchase Program

$200 million share repurchase program authorized by the Board on July 26, 2021

2022 Repurchase Program

$200 million share repurchase program authorized by the Board on July 25, 2022

ABS

American Building Systems, Inc.

Amendment No. 1 to Credit Agreement

Amendment No. 1 to the Credit Agreement dated March 8, 2021

Amendment No. 2 to Credit Agreement

Amendment No. 2 to the Credit Agreement dated October 7, 2021

Annual Report

Annual report filed with the SEC on Form 10-K pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

ASC

Accounting Standards Codification

ASU

Accounting Standards Update

Assured

Assured Insulating Inc.

Board

Board of Directors of TopBuild

BofA

Bank of America, N.A.

Billings

Billings Insulation Service, Inc.

Current Report

Current report filed with the SEC on Form 8-K pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

DI

DI Super Holdings, Inc.

EBITDA

Earnings before interest, taxes, depreciation, and amortization

Exchange Act

The Securities Exchange Act of 1934, as amended

FASB

Financial Accounting Standards Board

GAAP

Generally accepted accounting principles in the United States of America

Green Energy

Green Energy Solutions, Inc.

Lenders

Bank of America, N.A., together with the other lenders party to "Credit Agreement"

LCR

L.C.R. Contractors, LLC

LIBOR

London interbank offered rate

Net Leverage Ratio

As defined in the “Credit Agreement,” the ratio of outstanding indebtedness, less up to $100 million of unrestricted cash, to EBITDA

NYSE

New York Stock Exchange

Credit Agreement

Senior secured credit agreement and related security and pledge agreement dated May 5, 2017, as amended and restated on March 20, 2020, and further amended by Amendment No. 1 to Credit Agreement and Amendment No. 2 to Credit Agreement

Quarterly Report

Quarterly report filed with the SEC on Form 10-Q pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

ROU

Right of use (asset), as defined in ASC 842

RSA

Restricted stock award

SEC

United States Securities and Exchange Commission

Secured Leverage Ratio

As defined in the “Credit Agreement,” the ratio of outstanding indebtedness, including letters of credit, to EBITDA

Southwest

Southwest Insulation, Inc.

TopBuild

TopBuild Corp. and its wholly-owned consolidated domestic subsidiaries. Also, the "Company," "we," "us," and "our"

3

PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

TOPBUILD CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands except share data)

As of

    

June 30, 

December 31, 

2022

2021

ASSETS

Current assets:

Cash and cash equivalents

$

123,869

$

139,779

Receivables, net of an allowance for credit losses of $12,558 at June 30, 2022, and $8,798 at December 31, 2021

773,744

 

668,419

Inventories, net

431,098

 

352,801

Prepaid expenses and other current assets

25,835

 

26,692

Total current assets

1,354,546

 

1,187,691

Right of use assets

174,361

177,177

Property and equipment, net

250,051

 

244,574

Goodwill

1,968,603

 

1,949,763

Other intangible assets, net

653,458

 

684,209

Deferred tax assets, net

-

1,905

Other assets

19,965

 

13,211

Total assets

$

4,420,984

$

4,258,530

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

508,227

$

461,917

Current portion of long-term debt

38,162

38,640

Accrued liabilities

197,308

175,891

Short-term operating lease liabilities

55,284

54,591

Short-term finance lease liabilities

2,712

2,387

Total current liabilities

801,693

733,426

Long-term debt

1,437,102

1,454,483

Deferred tax liabilities, net

245,687

248,243

Long-term portion of insurance reserves

60,805

51,875

Long-term operating lease liabilities

124,191

125,339

Long-term finance lease liabilities

7,055

7,770

Other liabilities

1,788

960

Total liabilities

2,678,321

2,622,096

Commitments and contingencies

Equity:

Preferred stock, $0.01 par value: 10,000,000 shares authorized; 0 shares issued and outstanding

-

-

Common stock, $0.01 par value: 250,000,000 shares authorized; 39,318,617 shares issued and 32,379,053 outstanding at June 30, 2022, and 39,165,024 shares issued and 32,927,185 outstanding at December 31, 2021

393

391

Treasury stock, 6,939,564 shares at June 30, 2022, and 6,237,839 shares at December 31, 2021, at cost

(572,747)

(431,030)

Additional paid-in capital

861,542

873,031

Retained earnings

1,459,084

1,200,676

Accumulated other comprehensive loss

(5,609)

(6,634)

Total equity

1,742,663

1,636,434

Total liabilities and equity

$

4,420,984

$

4,258,530

See notes to our unaudited condensed consolidated financial statements.

4

TOPBUILD CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In thousands except share and per common share data)

Three Months Ended June 30, 

Six Months Ended June 30, 

2022

2021

2022

2021

Net sales

$

1,274,285

    

$

834,255

    

$

2,443,203

    

$

1,577,053

Cost of sales

890,188

591,075

1,727,905

1,136,114

Gross profit

384,097

243,180

715,298

440,939

Selling, general, and administrative expense

176,876

114,894

344,123

216,767

Operating profit

207,221

128,286

371,175

224,172

Other income (expense), net:

Interest expense

(13,410)

(6,105)

(25,375)

(12,707)

Loss on extinguishment of debt

(13,862)

Other, net

(279)

66

406

144

Other expense, net

(13,689)

(6,039)

(24,969)

(26,425)

Income before income taxes

193,532

122,247

346,206

197,747

Income tax expense

(49,835)

(31,867)

(87,796)

(47,525)

Net income

$

143,697

$

90,380

$

258,410

$

150,222

Net income per common share:

Basic

$

4.43

$

2.75

$

7.93

$

4.57

Diluted

$

4.41

$

2.72

$

7.87

$

4.53

 

Weighted average shares outstanding:

Basic

32,405,292

32,865,303

32,570,988

32,846,016

Diluted

32,614,449

33,177,435

32,827,549

33,190,107

See notes to our unaudited condensed consolidated financial statements.

5

TOPBUILD CORP.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(In thousands)

Three Months Ended June 30, 

Six Months Ended June 30, 

2022

2021

2022

2021

Net income

$

143,697

$

90,380

$

258,410

$

150,222

Other comprehensive (loss) income:

Foreign currency translation adjustment

(2,193)

-

1,026

-

Comprehensive income

$

141,504

$

90,380

$

259,436

$

150,222

See notes to our unaudited condensed consolidated financial statement

6

TOPBUILD CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Six Months Ended June 30, 

2022

2021

Cash Flows Provided by (Used in) Operating Activities:

    

    

    

Net income

$

258,410

$

150,222

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

60,621

33,221

Share-based compensation

7,061

5,377

Loss on extinguishment of debt

-

13,862

Loss on sale of property and equipment

525

833

Amortization of debt issuance costs

1,427

858

Provision for bad debt expense

6,404

4,037

Loss from inventory obsolescence

3,610

1,129

Change in certain assets and liabilities

Receivables, net

(107,739)

(36,277)

Inventories, net

(82,621)

(8,055)

Prepaid expenses and other current assets

648

(2,273)

Accounts payable

47,540

21,782

Accrued liabilities

16,884

17,693

Other, net

4,927

(206)

Net cash provided by operating activities

217,697

202,203

Cash Flows Provided by (Used in) Investing Activities:

Purchases of property and equipment

(36,034)

(28,560)

Acquisition of businesses, net of cash acquired

(18,746)

(195,411)

Proceeds from sale of property and equipment

618

193

Net cash used in investing activities

(54,162)

(223,778)

Cash Flows Provided by (Used in) Financing Activities:

Proceeds from issuance of long-term debt

-

411,250

Repayment of long-term debt

(19,287)

(421,716)

Payment of debt issuance costs

-

(6,500)

Proceeds from revolving credit facility

70,000

-

Repayment of revolving credit facility

(70,000)

-

Taxes withheld and paid on employees' equity awards

(11,667)

(11,491)

Exercise of stock options

1,452

5,952

Repurchase of shares of common stock

(150,050)

(24,038)

Payment of contingent consideration

(35)

(150)

Net cash used in financing activities

(179,587)

(46,693)

Impact of exchange rate changes on cash

142

-

Net decrease in cash and cash equivalents

(15,910)

(68,268)

Cash and cash equivalents- Beginning of period

 

139,779

 

330,007

Cash and cash equivalents- End of period

$

123,869

$

261,739

Supplemental disclosure of noncash activities:

Leased assets obtained in exchange for new operating lease liabilities

$

36,129

$

39,135

Accruals for property and equipment

563

460

See notes to our unaudited condensed consolidated financial statements.

7

TOPBUILD CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited)

(In thousands except share data)

Accumulated

Common

Treasury

Additional

Other

Stock

Stock

Paid-in

Retained

Comprehensive

($0.01 par value)

at cost

Capital

Earnings

(Loss) Income

Equity

Balance at December 31, 2020

$

389

$

(386,669)

$

858,414

$

876,660

$

-

$

1,348,794

Net income

-

-

-

59,842

-

59,842

Share-based compensation

-

-

3,111

-

-

3,111

Issuance of 30,284 restricted share awards under long-term equity incentive plan

1

-

(1)

-

-

-

Repurchase of 49,284 shares

-

(9,856)

-

-

-

(9,856)

43,290 shares withheld to pay taxes on employees' equity awards

-

-

(11,480)

-

-

(11,480)

51,915 shares issued upon exercise of stock options

-

-

5,952

-

-

5,952

Balance at March 31, 2021

$

390

$

(396,525)

$

855,996

$

936,502

$

-

$

1,396,363

Net income

-

-

-

90,380

-

90,380

Share-based compensation

-

-

2,266

-

-

2,266

Repurchase of 73,747 shares

-

(14,182)

-

-

-

(14,182)

50 shares withheld to pay taxes on employees' equity awards

-

-

(11)

-

-

(11)

Balance at June 30, 2021

$

390

$

(410,707)

$

858,251

$

1,026,882

$

-

$

1,474,816

Accumulated

Common

Treasury

Additional

Other

Stock

Stock

Paid-in

Retained

Comprehensive

($0.01 par value)

at cost

Capital

Earnings

(Loss) Income

Equity

Balance at December 31, 2021

$

391

$

(431,030)

$

873,031

$

1,200,676

$

(6,634)

$

1,636,434

Net income

-

-

-

114,711

-

114,711

Share-based compensation

-

-

3,727

-

-

3,727

Issuance of 52,940 restricted share awards under long-term equity incentive plan

2

-

(2)

-

-

-

Repurchase of 238,154 shares

-

(50,000)

-

-

-

(50,000)

53,073 shares withheld to pay taxes on employees' equity awards

-

(11,658)

-

-

-

(11,658)

12,269 shares issued upon exercise of stock options

-

-

808

-

-

808

Other comprehensive income, net of tax

-

-

-

-

3,218

3,218

Balance at March 31, 2022

$

393

$

(492,688)

$

877,564

$

1,315,387

$

(3,416)

$

1,697,240

Net income

-

-

143,697

-

143,697

Share-based compensation

-

-

3,334

-

-

3,334

Repurchase of 409,312 shares pursuant to 2022 ASR Agreement

-

(80,050)

(20,000)

-

-

(100,050)

51 shares withheld to pay taxes on employees' equity awards

-

(9)

-

-

-

(9)

5,835 shares issued upon exercise of stock options

-

-

644

-

-

644

Other comprehensive loss, net of tax

-

-

-

-

(2,193)

(2,193)

Balance at June 30, 2022

$

393

$

(572,747)

$

861,542

$

1,459,084

$

(5,609)

$

1,742,663

See notes to our unaudited condensed consolidated financial statements.

8

Table of Contents

TOPBUILD CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.  BASIS OF PRESENTATION

TopBuild was formed on June 30, 2015, and is listed on the NYSE under the ticker symbol “BLD.”  We report our business in two segments: Installation and Specialty Distribution.  Our Installation segment primarily installs insulation and other building products.  Our Specialty Distribution segment primarily sells and distributes insulation and other building products.  Our segments are based on our operating units, for which financial information is regularly evaluated by our chief operating decision maker.

We believe the accompanying unaudited condensed consolidated financial statements contain all adjustments, of a normal recurring nature, necessary to state fairly our financial position as of June 30, 2022, our results of operations and  comprehensive income for the three and six months ended June 30, 2022 and 2021, and our cash flows for the six months ended June 30, 2022 and 2021.  The condensed consolidated balance sheet at December 31, 2021, was derived from our audited financial statements, but does not include all disclosures required by GAAP.

These condensed consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements included in the Company’s Annual Report for the year ended December 31, 2021, as filed with the SEC on February 22, 2022.

2.  ACCOUNTING POLICIES

Financial Statement Presentation.  Our condensed consolidated financial statements have been developed in conformity with GAAP, which requires management to make estimates and assumptions.  These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods.  Actual results could differ materially from these estimates.  All significant intercompany transactions between TopBuild entities have been eliminated.

Recently Adopted Accounting Pronouncements

The following table summarizes additional ASUs which were adopted, but did not have a material impact on our accounting policies or our consolidated financial statements and related disclosures:

ASU

Description

Period Adopted

Method

ASU 2019-12

Income Taxes - Simplifying the Accounting for Income Taxes

01/01/21

Modified Retrospective

ASU 2021-01

Reference Rate Reform

01/01/21

Prospective

Recently Issued Accounting Pronouncements Not Yet Adopted

In October 2021, the FASB issued ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”.  This standard improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract liability, as well as payment terms and their effect on subsequent revenue recognized by the acquirer. This standard is effective for us beginning January 1, 2023, with early adoption permitted. We are evaluating the impact that adoption of this standard may have on our financial position and results of operations.

9

Table of Contents

TOPBUILD CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.  REVENUE RECOGNITION

Revenue is disaggregated between our Installation and Specialty Distribution segments and further based on market and product, as we believe this best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.  The following tables present our revenues disaggregated by market (in thousands):

Three Months Ended June 30, 

2022

2021

Installation

Specialty Distribution

Elims

Total

Installation

Specialty Distribution

Elims

Total

Residential

$

634,078

$

247,827

$

(50,007)

$

831,898

$

486,266

$

203,063

$

(36,719)

$

652,610

Commercial

114,890

233,828

(12,467)

336,251

119,359

70,301

(8,015)

181,645

Industrial

-

106,136

-

106,136

-

-

-

-

Net sales

$

748,968

$

587,791

$

(62,474)

$

1,274,285

$

605,625

$

273,364

$

(44,734)

$

834,255

Six Months Ended June 30, 

2022

2021

Installation

Specialty Distribution

Elims

Total

Installation

Specialty Distribution

Elims

Total

Residential

$

1,197,382

$

484,238

$

(93,429)

$

1,588,191

$

904,343

$

395,108

$

(70,057)

$

1,229,394

Commercial

228,279

449,342

(20,682)

656,939

234,035

129,857

(16,233)

347,659

Industrial

-

198,073

-

198,073

-

-

-

-

Net sales

$

1,425,661

$

1,131,653

$

(114,111)

$

2,443,203

$

1,138,378

$

524,965

$

(86,290)

$

1,577,053

The following tables present our revenues disaggregated by product (in thousands):