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TopBuild Reports Third Quarter 2022 Results
来源: Nasdaq GlobeNewswire / 01 11月 2022 05:45:45 America/Chicago
- 53.8% increase in net sales, 22.6% on a same branch basis
- 130 basis point operating margin expansion to 17.1%
- 190 basis point same branch adjusted EBITDA margin expansion to 20.6%
- Net Debt Leverage improves to 1.49x, from 1.68x at June 30, 2022
DAYTONA BEACH, Fla., Nov. 01, 2022 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD), a leading installer and specialty distributor of insulation and related building material products to the construction industry in the United States and Canada today reported results for the third quarter ended September 30, 2022.
Robert Buck, President and Chief Executive Officer, stated “We had another outstanding quarter with revenue growth in all three end-markets we serve: residential, commercial, and industrial. In addition, EBITDA margins at both business segments expanded, driven by operational efficiencies.
“As we look to the rest of this year and next, our focus remains on driving profitable growth and identifying and implementing initiatives that will enhance our Company’s operations. Our entire team remains focused on continuing to deliver strong results and creating shareholder value in every operating environment.”
Third Quarter Financial Highlights
(unless otherwise indicated, comparisons are to the quarter ended September 30, 2021)
3 Months Ended 9/30/22 Reported Change Sales $1,300,998 53.8% Gross Margin 30.4% 80 bps SG&A as % of revenue 13.3% (50 bps) Operating Profit $222,874 66.6% Operating Margin 17.1% 130 bps Net Income $153,746 61.1% Net Income per diluted share $4.76 65.3% 3 Months Ended 9/30/22 Adjusted Change Sales $1,300,998 53.8% Gross Margin 30.4% 80 bps SG&A as % of revenue 13.2% (10 bps) Operating Profit $224,174 63.1% Operating Margin 17.2% 90 bps Net Income $154,889 58.6% Net Income per diluted share $4.80 62.7% EBITDA $259,215 63.8% EBITDA Margin 19.9% 120 bps 3 Months Ended 9/30/22 Adj. Same
BranchChange Sales $1,037,278 22.6% Gross Margin 31.3% 170 bps Operating Margin 18.5% 220 bps EBITDA Margin 20.6% 190 bps Incremental EBITDA Margin 28.8% Nine Month Financial Highlights
(unless otherwise indicated, comparisons are to nine months ended September 30, 2021)9 Months Ended 9/30/22 Reported Change Sales $3,744,201 54.5% Gross Margin 29.7% 120 bps SG&A as % of revenue 13.8% 0 bps Operating Profit $594,049 65.9% Operating Margin 15.9% 110 bps Net Income $412,156 67.8% Net Income per diluted share $12.63 70.4% 9 Months Ended 9/30/22 Adjusted Change Sales $3,744,201 54.5% Gross Margin 29.7% 110 bps SG&A as % of revenue 13.6% 10 bps Operating Profit $600,474 64.7% Operating Margin 16.0% 100 bps Net Income $414,874 61.8% Net Income per diluted share $12.71 64.4% EBITDA $703,198 65.9% EBITDA Margin 18.8% 130 bps 9 Months Ended 9/30/22 Adj. Same
BranchChange Sales $2,926,330 20.8% Gross Margin 30.8% 220 bps Operating Margin 17.6% 260 bps EBITDA Margin 19.8% 230 bps Incremental EBITDA 30.8% Operating Segment Highlights ($ in 000s)
(comparisons are to the period ended September 30, 2021)Installation 3 Months
Ended
9/30/229 Months
Ended
9/30/22Specialty Distribution 3 Months
Ended
9/30/229 Months
Ended
9/30/22Sales $783,056 $2,208,717 Sales $583,543 $1,715,196 Change Change Volume 12.3% 8.1% Volume 5.7% 2.1% Price 13.8% 13.7% Price 13.0% 18.5% M&A 1.7% 4.3% M&A 92.4% 93.5% Total Change 27.8% 26.1% Total Change 111.1% 114.0% Operating Margin 19.7% 18.4% Operating Margin 15.1% 14.3% Change 260 bps 250 bps Change (200 bps) (130 bps) Adj. Operating Margin 19.6% 18.4% Adj. Operating Margin 15.3% 14.4% Change 240 bps 240 bps Change (180 bps) (130 bps) Adj. EBITDA Margin 21.6% 20.6% Adj. EBITDA Margin 18.0% 17.0% Change 200 bps 220 bps Change 10 bps 50 bps Capital Allocation
“Our proven track record of selecting, acquiring, and integrating companies has produced strong returns for our shareholders and we believe acquisitions will continue to be the best use of our capital. With the successful integration of DI mostly behind us, we continue to build and pursue a robust pipeline of prospects in all three end markets we serve,” added Buck.Acquisitions
Through September 30, the Company has completed five acquisitions which are expected to contribute approximately $17.3 million in annual revenue.Share repurchases
In the third quarter of 2022, the Company repurchased 269,544 shares at an average price of $185.50 per share. Year-to-date the Company has repurchased 1,059,361 shares as an average price of $188.79 per share.2022 Outlook
Sales and Adjusted EBITDA Guidance (1)
($ in millions)2022 Low High Sales $ 4,950 $ 5,000 Adjusted EBITDA* $ 915 $ 935 *See table for adjusted EBITDA reconciliation.
(1) This outlook reflects management’s current view of present and future market conditions and are based on assumptions such as housing starts and completions, general and administrative expenses, weighted average diluted shares outstanding and interest rates. These targets do not include any effects related to potential acquisitions or divestitures that may occur after the date of this press release.
Conference Call
A conference call to discuss third quarter 2022 financial results is scheduled for today, Tuesday, November 1, at 9:00 a.m. Eastern Time. The call may be accessed by dialing (877) 407-9037. The conference call will be webcast simultaneously on the Company’s website at www.topbuild.com. In addition, a copy of management’s formal remarks and a presentation that summarizes management’s formal remarks will be available immediately prior to the conference call on www.topbuild.com.About TopBuild
TopBuild Corp., headquartered in Daytona Beach, Florida, is a leading installer and specialty distributor of insulation and related building material products to the construction industry in the United States and Canada. We provide insulation installation services nationwide through our contractor services business which has approximately 230 branches located across the United States. We distribute building and mechanical insulation, insulation accessories and other building product materials for the residential, commercial, and industrial end markets through our Specialty Distribution business. Our specialty distribution network encompasses approximately 180 branches. To learn more about TopBuild please visit our website at www.topbuild.com.Use of Non-GAAP Financial Measures
Adjusted EBITDA, incremental EBITDA margin, adjusted EBITDA margin, the “adjusted” financial measures presented above, and figures presented on a “same branch basis” are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes that these non-GAAP financial measures, which are used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. We define same branch sales as sales from branches in operation for at least 12 full calendar months. Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under GAAP. Additional information may be found in the Company’s filings with the Securities and Exchange Commission which are available on TopBuild’s website under “SEC Filings” at www.topbuild.com.Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, and our plan to repurchase our common stock under stock repurchase transactions. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including those described in the risk factors contained in our filings with the Securities and Exchange Commission, may cause our actual results to differ from those expressed in forward-looking statements. Although TopBuild believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved and it undertakes no obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.
Investor Relations and Media Contact
Tabitha Zane
tabitha.zane@topbuild.com
386-763-8801
(tables to follow)TopBuild Corp. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per common share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net sales $ 1,300,998 $ 845,757 $ 3,744,201 $ 2,422,810 Cost of sales 905,250 595,466 2,633,155 1,731,581 Gross profit 395,748 250,291 1,111,046 691,229 Selling, general, and administrative expense 172,874 116,485 516,997 333,252 Operating profit 222,874 133,806 594,049 357,977 Other income (expense), net: Interest expense (14,561 ) (5,503 ) (39,936 ) (18,210 ) Loss on extinguishment of debt — — — (13,862 ) Other, net (303 ) 66 103 210 Other expense, net (14,864 ) (5,437 ) (39,833 ) (31,862 ) Income before income taxes 208,010 128,369 554,216 326,115 Income tax expense (54,264 ) (32,934 ) (142,060 ) (80,457 ) Net income $ 153,746 $ 95,435 $ 412,156 $ 245,658 Net income per common share: Basic $ 4.79 $ 2.91 $ 12.72 $ 7.49 Diluted $ 4.76 $ 2.88 $ 12.63 $ 7.41 Weighted average shares outstanding: Basic 32,076,285 32,763,311 32,404,275 32,818,145 Diluted 32,279,820 33,088,680 32,643,161 33,155,995 TopBuild Corp. Condensed Consolidated Statements of Comprehensive Income (Unaudited) (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net income $ 153,746 $ 95,435 $ 412,156 $ 245,658 Other comprehensive loss: Foreign currency translation adjustment (15,158 ) — (14,133 ) — Comprehensive income $ 138,588 $ 95,435 $ 398,023 $ 245,658
TopBuild Corp. Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited) (dollars in thousands) As of September 30, 2022 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 159,384 $ 139,779 Receivables, net of an allowance for credit losses of $14,105 at September 30, 2022, and $8,798 at December 31, 2021 815,633 668,419 Inventories, net 447,100 352,801 Prepaid expenses and other current assets 27,416 26,692 Total current assets 1,449,533 1,187,691 Right of use assets 191,731 177,177 Property and equipment, net 248,623 244,574 Goodwill 1,966,234 1,949,763 Other intangible assets, net 631,005 684,209 Other assets 18,991 15,116 Total assets $ 4,506,117 $ 4,258,530 LIABILITIES Current liabilities: Accounts payable $ 510,163 $ 461,917 Current portion of long-term debt 37,367 38,640 Accrued liabilities 181,455 175,891 Short-term operating lease liabilities 57,268 54,591 Short-term finance lease liabilities 2,328 2,387 Total current liabilities 788,581 733,426 Long-term debt 1,428,935 1,454,483 Deferred tax liabilities, net 244,608 248,243 Long-term portion of insurance reserves 61,243 51,875 Long-term operating lease liabilities 138,923 125,339 Long-term finance lease liabilities 6,170 7,770 Other liabilities 3,218 960 Total liabilities 2,671,678 2,622,096 EQUITY 1,834,439 1,636,434 Total liabilities and equity $ 4,506,117 $ 4,258,530 As of September 30, 2022 2021 Other Financial Data Receivable days 48 45 Inventory days 48 33 Accounts payable days 63 75 Receivables, net plus inventories, net less accounts payable $ 752,570 $ 336,027 Receivables, net plus inventories, net less accounts payable as a percent of sales (TTM) † 15.5 % 10.3 % † Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches
TopBuild Corp. Condensed Consolidated Statement of Cash Flows (Unaudited) (in thousands) Nine Months Ended September 30, 2022 2021 Cash Flows Provided by (Used in) Operating Activities: Net income $ 412,156 $ 245,658 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 93,051 51,005 Share-based compensation 9,673 8,375 Loss on extinguishment of debt — 13,862 Loss on sale of property and equipment 76 1,410 Amortization of debt issuance costs 2,147 1,352 Provision for bad debt expense 8,837 5,215 Loss from inventory obsolescence 5,127 1,667 Change in certain assets and liabilities Receivables, net (152,578 ) (62,257 ) Inventories, net (101,148 ) (30,115 ) Prepaid expenses and other current assets (807 ) (2,984 ) Accounts payable 49,079 47,907 Accrued liabilities 3,469 30,397 Other, net 6,548 (1,987 ) Net cash provided by operating activities 335,630 309,505 Cash Flows Provided by (Used in) Investing Activities: Purchases of property and equipment (56,044 ) (42,320 ) Acquisition of businesses, net of cash acquired (20,500 ) (205,028 ) Proceeds from sale of property and equipment 2,877 298 Net cash used in investing activities (73,667 ) (247,050 ) Cash Flows Provided by (Used in) Financing Activities: Proceeds from issuance of long-term debt — 411,250 Repayment of long-term debt (28,968 ) (427,563 ) 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 (11,719 ) (11,511 ) Exercise of stock options 2,028 5,952 Repurchase of shares of common stock (200,050 ) (35,556 ) Payment of contingent consideration (1,674 ) (628 ) Net cash used in financing activities (240,383 ) (64,556 ) Impact of exchange rate changes on cash (1,975 ) — Net increase (decrease) in cash and cash equivalents 19,605 (2,101 ) Cash and cash equivalents- Beginning of period 139,779 330,007 Cash and cash equivalents- End of period $ 159,384 $ 327,906 Supplemental disclosure of noncash activities: Leased assets obtained in exchange for new operating lease liabilities $ 80,186 $ 51,190 Accruals for property and equipment 395 580
TopBuild Corp. Segment Data (Unaudited) (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 Change 2022 2021 Change Installation Sales $ 783,056 $ 612,900 27.8 % $ 2,208,717 $ 1,751,278 26.1 % Operating profit, as reported $ 154,236 $ 105,046 $ 406,835 $ 277,748 Operating margin, as reported 19.7 % 17.1 % 18.4 % 15.9 % Rationalization charges (807 ) — (334 ) — Acquisition related costs 15 171 112 1,283 COVID-19 pay — — — 605 Operating profit, as adjusted $ 153,444 $ 105,217 $ 406,613 $ 279,636 Operating margin, as adjusted 19.6 % 17.2 % 18.4 % 16.0 % Share-based compensation 268 272 956 886 Depreciation and amortization 15,610 14,906 46,615 42,588 EBITDA, as adjusted $ 169,322 $ 120,395 40.6 % $ 454,184 $ 323,110 40.6 % EBITDA margin, as adjusted 21.6 % 19.6 % 20.6 % 18.4 % Specialty Distribution Sales $ 583,543 $ 276,398 111.1 % $ 1,715,196 $ 801,363 114.0 % Operating profit, as reported $ 88,364 $ 47,162 $ 245,534 $ 125,403 Operating margin, as reported 15.1 % 17.1 % 14.3 % 15.6 % Acquisition related costs 660 — 1,235 — COVID-19 pay — — — 54 Operating profit, as adjusted $ 89,024 $ 47,162 $ 246,769 $ 125,457 Operating margin, as adjusted 15.3 % 17.1 % 14.4 % 15.7 % Share-based compensation 296 241 938 729 Depreciation and amortization 15,662 2,138 43,697 6,338 EBITDA, as adjusted $ 104,982 $ 49,541 111.9 % $ 291,404 $ 132,524 119.9 % EBITDA margin, as adjusted 18.0 % 17.9 % 17.0 % 16.5 % TopBuild Corp. Adjusted EBITDA (Unaudited) (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 Change 2022 2021 Change Total net sales Sales before eliminations $ 1,366,599 $ 889,298 $ 3,923,913 $ 2,552,641 Intercompany eliminations (65,601 ) (43,541 ) (179,712 ) (129,831 ) Net sales after eliminations $ 1,300,998 $ 845,757 53.8 % $ 3,744,201 $ 2,422,810 54.5 % Operating profit, as reported - segments $ 242,600 $ 152,208 $ 652,369 $ 403,151 General corporate expense, net (8,920 ) (10,812 ) (28,371 ) (24,124 ) Intercompany eliminations (10,806 ) (7,590 ) (29,949 ) (21,050 ) Operating profit, as reported $ 222,874 $ 133,806 $ 594,049 $ 357,977 Operating margin, as reported 17.1 % 15.8 % 15.9 % 14.8 % Rationalization charges (807 ) — (334 ) 16 Acquisition related costs† 2,107 3,634 6,759 5,844 COVID-19 pay — — — 659 Operating profit, as adjusted $ 224,174 $ 137,440 $ 600,474 $ 364,496 Operating margin, as adjusted 17.2 % 16.3 % 16.0 % 15.0 % Share-based compensation 2,611 2,998 9,673 8,375 Depreciation and amortization 32,430 17,784 93,051 51,005 EBITDA, as adjusted $ 259,215 $ 158,222 63.8 % $ 703,198 $ 423,876 65.9 % EBITDA margin, as adjusted 19.9 % 18.7 % 18.8 % 17.5 % Sales change period over period 455,241 1,321,391 EBITDA, as adjusted, change period over period 100,993 279,322 Incremental EBITDA, as adjusted, as a percentage of change in sales 22.2 % 21.1 % † Acquisition related costs include corporate level adjustments as well as segment operating adjustments.
TopBuild Corp. Non-GAAP Reconciliations (Unaudited) (in thousands, except share and per common share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Gross Profit Reconciliation Net sales $ 1,300,998 $ 845,757 $ 3,744,201 $ 2,422,810 Gross profit, as reported $ 395,748 $ 250,291 $ 1,111,046 $ 691,229 Acquisition related costs — — 121 — COVID-19 pay — — — 592 Gross profit, as adjusted $ 395,748 $ 250,291 $ 1,111,167 $ 691,821 Gross margin, as reported 30.4 % 29.6 % 29.7 % 28.5 % Gross margin, as adjusted 30.4 % 29.6 % 29.7 % 28.6 % Selling, General and Administrative Expense Reconciliation Selling, general, and administrative expense, as reported $ 172,874 $ 116,485 $ 516,997 $ 333,252 Rationalization charges (807 ) — (334 ) 16 Acquisition related costs 2,107 3,634 6,638 5,844 COVID-19 pay — — — 67 Selling, general, and administrative expense, as adjusted $ 171,574 $ 112,851 $ 510,693 $ 327,325 Operating Profit Reconciliation Operating profit, as reported $ 222,874 $ 133,806 $ 594,049 $ 357,977 Rationalization charges (807 ) — (334 ) 16 Acquisition related costs 2,107 3,634 6,759 5,844 COVID-19 pay — — — 659 Operating profit, as adjusted $ 224,174 $ 137,440 $ 600,474 $ 364,496 Operating margin, as reported 17.1 % 15.8 % 15.9 % 14.8 % Operating margin, as adjusted 17.2 % 16.3 % 16.0 % 15.0 % Income Per Common Share Reconciliation Income before income taxes, as reported $ 208,010 $ 128,369 $ 554,216 $ 326,115 Rationalization charges (807 ) — (334 ) 16 Acquisition related costs 2,107 3,634 6,759 5,844 Refinancing costs and loss on extinguishment of debt — — — 13,862 COVID-19 pay — — — 659 Income before income taxes, as adjusted 209,310 132,003 560,641 346,496 Tax rate at 26.0% (54,421 ) (34,321 ) (145,767 ) (90,089 ) Income, as adjusted $ 154,889 $ 97,682 $ 414,874 $ 256,407 Income per common share, as adjusted $ 4.80 $ 2.95 $ 12.71 $ 7.73 Weighted average diluted common shares outstanding 32,279,820 33,088,680 32,643,161 33,155,995 TopBuild Corp. Same Branch and Acquisition Metrics (Unaudited) (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net sales Same branch: Installation $ 772,589 $ 612,900 $ 2,132,833 $ 1,751,278 Specialty Distribution 328,127 276,398 966,145 801,363 Eliminations (63,438 ) (43,541 ) (172,648 ) (129,831 ) Total same branch 1,037,278 845,757 2,926,330 2,422,810 Acquisitions (a): Installation $ 10,467 $ — $ 75,884 $ — Specialty Distribution 255,416 — 749,051 — Eliminations (2,163 ) — (7,064 ) — Total acquisitions 263,720 — 817,871 — Total $ 1,300,998 $ 845,757 $ 3,744,201 $ 2,422,810 Gross profit, as adjusted Same branch $ 324,832 $ 250,291 $ 899,959 $ 691,821 Acquisitions (a) 70,916 — 211,208 — Total $ 395,748 $ 250,291 $ 1,111,167 $ 691,821 Gross margin, as adjusted Same branch (b) 31.3 % 29.6 % 30.8 % 28.6 % Acquisitions (c) 26.9 % 25.8 % Operating profit, as adjusted Same branch $ 192,249 $ 137,440 $ 516,374 $ 364,496 Acquisitions (a) 31,925 — 84,100 — Total $ 224,174 $ 137,440 $ 600,474 $ 364,496 Operating margin, as adjusted Same branch (b) 18.5 % 16.3 % 17.6 % 15.0 % Acquisitions (c) 12.1 % 10.3 % EBITDA, as adjusted Same branch $ 213,412 $ 158,222 $ 578,847 $ 423,876 Acquisitions (a) 45,803 — 124,351 — Total $ 259,215 $ 158,222 $ 703,198 $ 423,876 EBITDA, as adjusted, as a percentage of sales Same branch (b) 20.6 % 19.8 % Acquisitions (c) 17.4 % 15.2 % Total (d) 19.9 % 18.7 % 18.8 % 17.5 % As Adjusted Incremental EBITDA, as a percentage of change in sales Same branch (e) 28.8 % 30.8 % Acquisitions (c) 17.4 % 15.2 % Total (f) 22.2 % 21.1 % (a) Represents current year impact of acquisitions in their first twelve months (b) Same branch metric, as adjusted, as a percentage of same branch sales (c) Acquired metric, as adjusted, as a percentage of acquired sales (d) Total EBITDA, as adjusted, as a percentage of total sales (e) Change in same branch EBITDA, as adjusted, as a percentage of change in same branch sales (f) Change in total EBITDA, as adjusted, as a percentage of change in total sales TopBuild Corp. Reconciliation of Adjusted EBITDA to Net Income (Unaudited) (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net income, as reported $ 153,746 $ 95,435 $ 412,156 $ 245,658 Adjustments to arrive at EBITDA, as adjusted: Interest expense and other, net 14,864 5,437 39,833 18,000 Income tax expense 54,264 32,934 142,060 80,457 Depreciation and amortization 32,430 17,784 93,051 51,005 Share-based compensation 2,611 2,998 9,673 8,375 Rationalization charges (807 ) — (334 ) 16 Acquisition related costs 2,107 3,634 6,759 5,844 Refinancing costs and loss on extinguishment of debt — — — 13,862 COVID-19 pay — — — 659 EBITDA, as adjusted $ 259,215 $ 158,222 $ 703,198 $ 423,876
TopBuild Corp. Acquisition Adjusted Net Sales (Unaudited) (in thousands) 2021 2022 Trailing Twelve Months Ended Q4 Q1 Q2 Q3 September 30, 2022 Net Sales $ 1,063,398 $ 1,168,918 $ 1,274,285 $ 1,300,998 $ 4,807,599 Acquisitions proforma adjustment † 49,639 2,934 438 - 53,011 Net sales, acquisition adjusted $ 1,113,037 $ 1,171,852 $ 1,274,723 $ 1,300,998 $ 4,860,610 † Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches TopBuild Corp. 2022 Estimated Adjusted EBITDA Range (Unaudited) (in millions) Twelve Months Ending December 31, 2022 Low High Estimated net income $ 525.0 545.7 Adjustments to arrive at estimated EBITDA, as adjusted: Interest expense and other, net 56.5 54.5 Income tax expense 184.5 191.8 Depreciation and amortization 125.0 123.0 Share-based compensation 13.0 12.0 Rationalization charges 1.0 - Acquisition related costs 10.0 8.0 Estimated EBITDA, as adjusted $ 915.0 $ 935.0 
