bld_Ex_99

Exhibit 99.1

TopBuild (NYSE:BLD), the leading purchaser, installer and distributor of insulation products to the U.S. construction industry, reports strong first quarter 2017 results

Upsizes Term and Revolving Credit Facilities to $600 Million

Announces $100 Million Accelerated Share Repurchase

First Quarter Financial Highlights

(unless otherwise indicated, comparisons are to the quarter ended March 31, 2016)

Net Sales increased 6.6% to $441.4 million, primarily driven by sales volume growth in both operating segments. On a same branch basis, revenue increased 4.8% to $433.8 million.

Gross margin expanded 140 basis points to 23.0%.

Operating loss was $3.5 million, compared to operating profit of $19.8 million. The first quarter operating loss was the result of a $30 million legal settlement with Owens Corning announced on May 5, 2017. On an adjusted basis, operating profit was $28.6 million, compared to $20.8 million, a 37.5% improvement.

Operating margin was (0.8%), down 560 basis points. Adjusted operating margin improved 150 basis points to 6.5%.

Loss from continuing operations was $1.7 million, or $0.05 per diluted share, compared to income of $11.1 million, or $0.29 per diluted share. Adjusted income from continuing operations was $16.9 million, or $0.46 per diluted share, compared to $11.9 million, or $0.31 per diluted share.

Adjusted EBITDA was $33.9 million, compared to $25.3 million, a 34.1% increase. Incremental EBITDA margin was 31.5%.

At March 31, 2017, the Company had cash and cash equivalents of $80.4 million and availability under its revolving credit facility of $75.9 million for total liquidity of $156.3 million.

Jerry Volas, Chief Executive Officer, stated, “TopBuild reported another strong quarter. Top line growth was solid and operating margins expanded in both business segments. Our results reflect the ongoing housing recovery combined with the impact of internal initiatives to expand our residential market share, grow our commercial revenue base and enhance our operational efficiency. We remain confident 2017 will be another outstanding year for TopBuild.”

Operating Segment Highlights ($ in 000s)

(comparisons are to the quarter ended March 31, 2016)


	3 Months				3 Months
	Ended				Ended
Truteam	3/31/2017			Service Partners	3/31/2017
Sales	$	290,887		Sales	$	170,244
Change		6.6	%	Change		5.8	%

Operating Margin		(3.1)	%	Operating Margin		9.1	%
Change		(800 bps)		Change		20 bps

Adj. Operating Margin		7.4	%	Adj. Operating Margin		9.1	%
Change		210 bps		Change		10 bps

New Credit Facilities

The Company has entered into a new term loan and revolving credit facility, replacing its previous facility.


	New Facility	Previous Facility
Term Loan	$350M	$200M
Revolver	$250M	$125M
Total Credit Facility	$600M	$325M
Accordion*	$200M	$100M
LIBOR Borrowing Spread**	150bps	150bps
Marturity Date	May 2022	June 2020
Participating Lenders	6	6

*Subject to certain conditions

**Subject to leverage grid

Bank of America Merrill Lynch (BofAML) and PNC Bank served as Joint Lead Arrangers and Joint Book Runners on the new credit facilities.

Volas stated, “We are very pleased to have successfully increased our term loan and revolving credit facilities by $275 million with a maturity extension of almost two years. The additional capital from the term loan and revolving credit facility strengthens our ability to capitalize on strategic acquisitions and other opportunities designed to enhance long-term value for our shareholders.”

Capital Allocation

Acquisitions

Year-to-date, through May 9, 2017, the Company has closed five acquisitions, four concentrating on residential insulation and one on heavy commercial. Combined, they are expected to generate approximately $54 million of incremental revenue on an annual basis.

Share Repurchases

Under the $200 million share repurchase program announced on February 28, 2017, the Company has repurchased 282,262 shares at an average price of $46.39 per share through March 31.

Additionally, the Company has entered into an agreement with BofAML to repurchase $100 million of the Company’s common stock under an accelerated share repurchase (ASR) program. This ASR is part of TopBuild’s $200 million share repurchase program.

Under the terms of the ASR agreement, the Company will pay $100 million to BofAML. The actual number of shares to be repurchased will be based on the average of the daily volume-weighted prices of the Company’s common stock during the term of the transaction, less an agreed discount, and subject to potential adjustments pursuant to the terms and conditions of the ASR agreement. At final settlement, BofAML may be required to deliver additional shares of common stock to the Company or, under certain circumstances, the Company may be required to deliver shares of common stock or to make a cash payment, at its election, to BofAML. The final settlement of the transaction under the ASR is expected to occur no later than the first quarter of 2018.

Volas stated, “The companies we’ve acquired demonstrate our commitment to expanding our market share and enhancing our competitive position. In addition, the synergies achieved are meaningful, increasing our return on investment. Our dedicated M&A team remains focused on our significant pipeline of prospects as well as the integration of the companies we’ve acquired. While the top priority of our capital allocation plan is funding acquisitions, our accelerated share repurchase program demonstrates our firm commitment to optimizing the efficiency of our capital structure.”

Additional Information

Quarterly supplemental materials, including a presentation that will be referenced on today’s conference call, are available on the “Investors” section of the Company’s website at www.topbuild.com.

Conference Call

A conference call to discuss first quarter 2017 financial results is scheduled for today, Tuesday, May 9, 2017, at 9:00 a.m. Eastern Time. The call may be accessed by dialing (800) 633-8284. The conference call will be webcast simultaneously on the “Investors” section of the Company’s website at www.topbuild.com. A replay will be available for one week beginning at 11:00 a.m. Eastern Time and may be accessed by dialing (800) 633-8284 and entering the passcode: 21842819.

TopBuild Corp.

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per common share amounts)


	Three Months Ended March 31,
	2017		2016

Net sales	$	441,363	$	414,024
Cost of sales		339,735		324,569
Gross profit		101,628		89,455

Selling, general, and administrative expense (exclusive of significant legal settlement, shown separately below)		75,091		69,688
Significant legal settlement		30,000		—
Operating (loss) profit		(3,463)		19,767

Other income (expense), net:
Interest expense		(1,370)		(1,673)
Other, net		107		75
Other expense, net		(1,263)		(1,598)
(Loss) income from continuing operations before income taxes		(4,726)		18,169

Income tax benefit (expense) from continuing operations		3,016		(7,053)
(Loss) income from continuing operations		(1,710)		11,116

Net (loss) income	$	(1,710)	$	11,116

Income (loss) per common share:
Basic:
(Loss) income from continuing operations	$	(0.05)	$	0.29
Net (loss) income	$	(0.05)	$	0.29

Diluted:
(Loss) income from continuing operations	$	(0.05)	$	0.29
Net (loss) income	$	(0.05)	$	0.29

TopBuild Corp.

Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited)

(dollars in thousands)


	As of
	March 31,		December 31,
	2017		2016
ASSETS
Current assets:
Cash and cash equivalents	$	80,370	$	134,375
Receivables, net of an allowance for doubtful accounts of $3,633 and $3,374 at March 31, 2017, and December 31, 2016, respectively		269,359		252,624
Inventories, net		112,633		116,190
Prepaid expenses and other current assets		27,592		23,364
Total current assets		489,954		526,553

Property and equipment, net		95,788		92,760
Goodwill		1,063,518		1,045,058
Other intangible assets, net		15,952		2,656
Deferred tax assets, net		19,469		19,469
Other assets		3,258		3,623
Total assets	$	1,687,939	$	1,690,119

LIABILITIES
Current liabilities:
Accounts payable	$	226,974	$	241,534
Current portion of long-term debt		20,000		20,000
Accrued liabilities		99,647		64,399
Total current liabilities		346,621		325,933

Long-term debt		153,885		158,800
Deferred tax liabilities, net		193,715		193,715
Long-term portion of insurance reserves		37,867		38,691
Other liabilities		1,892		433
Total liabilities		733,980		717,572

EQUITY		953,959		972,547
Total liabilities and equity	$	1,687,939	$	1,690,119


	As of March 31,
	2017			2016
Other Financial Data
Working Capital Days†
Receivable days		45			44
Inventory days		30			30
Accounts payable days		84			90
Working capital	$	155,018		$	127,708
Working capital as a percent of sales (LTM)		8.8	%		7.6	%

† Amounts adjusted for acquisitions for comparability purposes

TopBuild Corp.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(dollars in thousands)


	Three Months Ended March 31,
	2017		2016
Net Cash Provided by (Used in) Operating Activities:
Net (loss) income	$	(1,710)	$	11,116
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		3,231		2,895
Share-based compensation		2,084		1,600
Loss on sale or abandonment of property and equipment		88		950
Amortization of debt issuance costs		86		86
Provision for bad debt expense		995		1,054
Loss from inventory obsolescence		360		335
Deferred income taxes, net		—		(3)
Changes in certain assets and liabilities:
Receivables, net		(6,568)		(8,505)
Inventories, net		4,531		10,350
Prepaid expenses and other current assets		(4,195)		7,167
Accounts payable		(17,842)		(29,846)
Accrued liabilities		33,656		6,181
Other, net		118		(27)
Net cash provided by operating activities		14,834		3,353

Cash Flows Provided by (Used in) Investing Activities:
Purchases of property and equipment		(3,800)		(2,900)
Acquisition of businesses		(41,242)		—
Proceeds from sale of property and equipment		133		76
Other, net		32		68
Net cash used in investing activities		(44,877)		(2,756)

Cash Flows Provided by (Used in) Financing Activities:
Repayment of long-term debt		(5,000)		(2,500)
Taxes withheld and paid on employees' equity awards		(1,583)		(1,256)
Repurchase of shares of common stock		(17,379)		(1,539)
Net cash used in financing activities		(23,962)		(5,295)

Cash and Cash Equivalents
Decrease for the period		(54,005)		(4,698)
Beginning of year		134,375		112,848
End of period	$	80,370	$	108,150

Supplemental disclosure of noncash investing activities:
Accruals for property and equipment	$	237	$	426

TopBuild Corp.

Segment Data (Unaudited)

(dollars in thousands)


	Three Months Ended March 31,
	2017			2016			Change
Installation
Sales	$	290,887		$	272,878		6.6	%

Operating (loss) profit, as reported	$	(8,964)		$	13,506
Operating margin, as reported		(3.1)	%		4.9	%

Significant legal settlement		30,000			828
Rationalization charges		411			—
Operating profit, as adjusted	$	21,447		$	14,334
Operating margin, as adjusted		7.4	%		5.3	%

Distribution
Sales	$	170,244		$	160,888		5.8	%

Operating profit, as reported	$	15,484		$	14,333
Operating margin, as reported		9.1	%		8.9	%

Rationalization charges		—			83
Operating profit, as adjusted	$	15,484		$	14,416
Operating margin, as adjusted		9.1	%		9.0	%

Total
Sales before eliminations	$	461,131		$	433,766
Intercompany eliminations		(19,768)			(19,742)
Net sales after eliminations	$	441,363		$	414,024		6.6	%

Operating profit, as reported - segment	$	6,520		$	27,839
General corporate expense, net		(6,682)			(4,720)
Intercompany eliminations and other adjustments		(3,301)			(3,352)
Operating (loss) profit, as reported	$	(3,463)		$	19,767
Operating margin, as reported		(0.8)	%		4.8	%

Significant legal settlement		30,000			1,008
Rationalization charges†		1,738			—
Acquisition costs		292			—
Operating profit, as adjusted	$	28,567		$	20,775
Operating margin, as adjusted		6.5	%		5.0	%

Share-based compensation		2,084			1,600
Depreciation and amortization		3,231			2,895
EBITDA, as adjusted	$	33,882		$	25,270

Sales change period over period		27,339
EBITDA, as adjusted change period over period		8,612
EBITDA, as adjusted as percentage of sales change		31.5	%

† Rationalization charges include corporate level adjustments as well as segment operating adjustments.

TopBuild Corp.

Non-GAAP Reconciliations (Unaudited)

(in thousands, except common share amounts)


	Three Months Ended March 31,
	2017			2016
Gross Profit and Operating Profit Reconciliations

Net sales	$	441,363		$	414,024

Gross profit, as reported	$	101,628		$	89,455

Gross profit, as adjusted	$	101,628		$	89,455

Gross margin, as reported		23.0	%		21.6	%
Gross margin, as adjusted		23.0	%		21.6	%

Operating (loss) profit, as reported	$	(3,463)		$	19,767

Significant legal settlement		30,000			1,008
Rationalization charges		1,738			—
Acquisition costs		292			—
Operating profit, as adjusted	$	28,567		$	20,775

Operating margin, as reported		(0.8)	%		4.8	%
Operating margin, as adjusted		6.5	%		5.0	%

Income Per Common Share Reconciliation

(Loss) income from continuing operations before income taxes, as reported	$	(4,726)		$	18,169

Significant legal settlement		30,000			1,008
Rationalization charges		1,738			—
Acquisition costs		292			—
Income from continuing operations before income taxes, as adjusted		27,304			19,177

Tax rate at 38% rate		(10,376)			(7,287)
Income from continuing operations, as adjusted	$	16,928		$	11,890

Income per common share, as adjusted	$	0.46		$	0.31

Average diluted common shares outstanding		37,123,245			37,899,110

TopBuild Corp.

Same Branch Net Sales and Adjusted EBITDA (Unaudited)

(dollars in thousands)


	Three Months Ended March 31,
	2017			2016
Net sales
Same branch	$	433,777		$	414,024
Acquired		7,586			—
Total	$	441,363		$	414,024

EBITDA, as adjusted
Same branch		33,453			25,270
Acquired		429			—
Total	$	33,882		$	25,270

Same branch EBITDA, as adjusted as percentage of sales change		41.4	%		26.6	%
Acquired adjusted EBITDA, as adjusted as percentage of sales change		5.7	%		—	%