TopBuild Reports Second Quarter 2021 Results

Daytona Beach, Florida, UNITED STATES


  • 29.1% increase in net sales
  • 150 bps gross margin expansion, 140 bps on an adjusted basis
  • 15.4% operating margin, 15.6% on an adjusted basis, up 270 bps
  • $2.72 net income per diluted share, $2.76 on an adjusted basis
  • 18.0% adjusted EBITDA margin, 18.4% on a same branch basis

Announces New $200 Million Share Repurchase Program

DAYTONA BEACH, Fla., Aug. 03, 2021 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD), a leading installer and distributor of insulation and building material products today reported results for the second quarter ended June 30, 2021.

Robert Buck, President and Chief Executive Officer, stated, “We are very pleased with our second quarter results. Top line growth was strong and operating margins expanded at both business segments. Our solid performance demonstrates our team’s ability to successfully manage pricing in conjunction with multiple material cost increases as well as productivity in a labor and material constrained market.

“Looking ahead, we expect the residential housing market to remain solid and the commercial market to continue to strengthen. Our focus will remain on driving profitable growth and creating long-term value for our stakeholders.”

Second Quarter Financial Highlights
(unless otherwise indicated, comparisons are to the quarter ended June 30, 2020)

  • Net sales increased 29.1% to $834.3. million, 18.3% on a same branch basis, primarily driven by increases in both price and volume as well as M&A.
  • Gross margin increased 150 basis points to 29.1%. On an adjusted basis, gross margin increased 140 basis points to 29.2%.
  • Operating profit was $128.3 million, compared to operating profit of $80.5 million, a 59.5% improvement. On an adjusted basis, operating profit was $129.9 million, compared to $83.5 million, a 55.5% improvement.
  • Operating margin was 15.4%, up 290 basis points. Adjusted operating margin improved 270 basis points to 15.6%.
  • Net income was $90.4 million, or $2.72 per diluted share, compared to $55.5 million, or $1.67 per diluted share. Adjusted income was $91.6 million, or $2.76 per diluted share, compared to $55.7 million, or $1.68 per diluted share.
  • Adjusted EBITDA was $149.8 million, compared to $107.8 million, a 39.1% increase, and adjusted EBITDA margin improved 130 basis points to 18.0%.

  • At June 30, 2021, the Company had cash and cash equivalents of $261.7 million and availability under its revolving credit facility of $378.8 million for total liquidity of $640.5 million.

Six Month Financial Highlights
(unless otherwise indicated, comparisons are to six months ended June 30, 2020)

  • Net sales increased 21.4% to $1,577.1 million. On a same branch basis, revenue increased 13.9% to $1,479.4 million.
  • Gross margin expanded 110 basis points to 28.0%. On an adjusted basis, gross margin expanded 90 basis points to 28.0%.
  • Operating profit was $224.2 million, compared to operating profit of $150.4 million, a 49.0% improvement. On an adjusted basis, operating profit was $227.1 million, compared to $153.8 million, a 47.7% improvement.
  • Operating margin was 14.2%, and 14.4% on an adjusted basis, a 260-basis point improvement.
  • Net income was $150.2 million, or $4.53 per diluted share, compared to $106.3 million, or $3.18 per diluted share. Adjusted income was $158.7 million, or $4.78 per diluted share, compared to $101.6 million, or $3.04 per diluted share.

  • Adjusted EBITDA was $265.7 million, compared to $196.1 million, a 35.5% increase. Adjusted EBITDA margin was 16.8%, a 170-basis point improvement.

Operating Segment Highlights ($ in 000s)
(comparisons are to the period ended June 30, 2020)

TruTeam3 Months Ended
6/30/21
6 Months Ended
6/30/21
 Service Partners3 Months Ended
6/30/21
6 Months Ended
6/30/21
Sales$605,625$1,138,378 Sales$273,364$524,965
Change   Change  
Volume10.4%7.7% Volume14.3%14.0%
Price5.0%3.0% Price10.3%7.0%
M&A14.4%10.1% M&A1.8%0.9%
Total Change29.8%20.8% Total Change26.4%21.9%
Operating Margin16.4%15.2% Operating Margin15.7%14.9%
Change150 bps140 bps Change450 bps360 bps
Adj. Operating Margin16.6%15.3% Adj. Operating Margin15.7%14.9%
Change140 bps130 bps Change410 bps330 bps

Capital Allocation

Acquisitions
Three companies were acquired in the second quarter, American Building Systems, Creative Conservation and RJ Insulation. Combined, they are expected to generate approximately $155 million of revenue on a pro forma full year basis. Year-to-date, the Company has acquired five companies which are expected to generate approximately $221 million of revenue on a pro forma, full year basis.

“M&A remains our number one capital allocation priority. Our prospects center around our core of insulation and related adjacent products that will further strengthen our industry leadership position. Our pipeline is robust, and we expect to stay very busy on this front through the remainder of the year,” added Buck.

“Our strong balance sheet and cash flows also provide us with the flexibility to continue our history of share repurchases, and we are pleased to announce another $200 million share repurchase program.”

Share Repurchase Program
In the second quarter, the Company repurchased 73,747 shares at an average price of $192.30 per share. Year-to-date, the Company has repurchased 123,031 shares at an average price of $195.38 per share.

The Company also announced that its Board of Directors has approved an additional share repurchase program whereby the Company may purchase up to $200 million of its common stock. Repurchases will be made from cash on hand as well as from a portion of the free cash flow expected to be generated from the business. The program may be suspended or discontinued at any time.

2021 Outlook

Sales and Adjusted EBITDA Guidance (1)

($ in millions)  
2021LowHigh
Sales$3,290$3,370
Adjusted EBITDA*$565$590

*See table for adjusted EBITDA reconciliation.

Assumptions (1)

($ in millions)  
2021LowHigh
Housing Starts 1,475 1,525
Estimated net income$339.5$363.6
Interest Expense and other, net$24.7$22.2
Income tax expense$119.3$127.8
Depreciation and Amortization$70.6$67.5
Share based compensation$10.9$8.9

(1) This guidance and long-term targets reflect management’s current view of present and future market conditions and are based on assumptions such as housing starts, 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. A reconciliation of non-GAAP targets to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, the costs and expenses that may be incurred in the future and therefore, cannot be reasonably predicted. The effect of these excluded items may be significant. Factors that could cause actual long-term results to differ materially from TopBuild’s current expectations are discussed below and are also detailed in the Company’s 2020 Annual Report on Form 10-K and subsequent SEC reports.

Conference Call
A conference call to discuss second quarter 2021 financial results is scheduled for today, Tuesday, August 3, 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.

About TopBuild
TopBuild Corp., a Fortune 1000 Company headquartered in Daytona Beach, Florida, is a leading installer and distributor of insulation and building material products to the U.S. construction industry. We provide insulation and building material services nationwide through TruTeam®, which has approximately 235 branches, and through Service Partners® which distributes insulation and building material products from approximately 75 branches. We leverage our national footprint to gain economies of scale while capitalizing on our local market presence to forge strong relationships with our customers. 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 at www.topbuild.com.

Safe Harbor Statement
Statements contained herein reflect our views about future periods, including our future plans and performance, constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995.  Forward-looking statements can be identified by 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.  We caution you against unduly relying on any of these forward-looking statements.  Our future performance may be affected by the duration and impact of the COVID-19 pandemic on the United States economy, specifically with respect to residential and commercial construction; our ability to continue operations in markets affected by the COVID-19 pandemic and our ability to collect receivables from our customers; our reliance on residential new construction, residential repair/remodel, and commercial construction; our reliance on third-party suppliers and manufacturers; our ability to attract, develop, and retain talented personnel and our sales and labor force; our ability to maintain consistent practices across our locations; and our ability to maintain our competitive position.  We discuss the material risks we face under the caption entitled “Risk Factors” in our Annual Report for the year ended December 31, 2020, as filed with the SEC on February 23, 2021, as well as under the caption entitled “Risk Factors” in subsequent reports that we file with the SEC.  Our forward-looking statements in this filing speak only as of the date of this filing.  Factors or events that could cause our actual results to differ may emerge from time to time and it is not possible for us to predict all of them.  Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise.  The Company believes that the non-GAAP performance measures and ratios that are contained herein, which management uses to manage our business, provide users of this financial information with additional meaningful comparisons between current results and results in our prior periods.  Non-GAAP performance measures and ratios should be viewed in addition, and not as an alternative, to the Company's reported results under accounting principles generally accepted in the United States.  Additional information about the Company is contained in the Company's filings with the SEC and is available on TopBuild's website at www.topbuild.com.

Investor Relations and Media Contact
Tabitha Zane
tabitha.zane@topbuild.com
386-763-8801

(tables follow)


TopBuild Corp.            
Condensed Consolidated Statements of Operations (Unaudited)        
(in thousands, except share and per common share amounts)
             
  Three Months Ended June 30,  Six Months Ended June 30, 
  2021 2020 2021 2020
Net sales $834,255  $646,099     $1,577,053  $1,299,327 
Cost of sales  591,075   468,045   1,136,114   949,316 
Gross profit  243,180   178,054   440,939   350,011 
             
Selling, general, and administrative expense  114,894   97,600   216,767   199,568 
Operating profit  128,286   80,454   224,172   150,443 
             
Other income (expense), net:            
Interest expense  (6,105)  (8,277)  (12,707)  (17,018)
Loss on extinguishment of debt        (13,862)  (233)
Other, net  66   89   144   561 
Other expense, net  (6,039)  (8,188)  (26,425)  (16,690)
Income before income taxes  122,247   72,266   197,747   133,753 
             
Income tax expense  (31,867)  (16,770)  (47,525)  (27,485)
Net income $90,380  $55,496  $150,222  $106,268 
             
Net income per common share:            
Basic $2.75  $1.69  $4.57  $3.22 
Diluted $2.72  $1.67  $4.53  $3.18 
             
Weighted average shares outstanding:            
Basic  32,865,303   32,867,842   32,846,016   33,018,148 
Diluted  33,177,435   33,202,423   33,190,107   33,401,135 


TopBuild Corp.        
Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited)        
(dollars in thousands)        
  As of
  June 30, December 31,
ASSETS 2021 2020
Current assets:        
Cash and cash equivalents $261,739  $330,007 
Receivables, net of an allowance for credit losses of $8,337 at June 30, 2021, and $6,926 at December 31, 2020  491,625   427,340 
Inventories, net  178,576   161,369 
Prepaid expenses and other current assets  20,523   17,689 
Total current assets  952,463   936,405 
         
Right of use assets  100,558   83,490 
Property and equipment, net  199,982   180,053 
Goodwill  1,494,200   1,410,685 
Other intangible assets, net  237,573   190,605 
Deferred tax assets, net  2,729   2,728 
Other assets  11,213   11,317 
Total assets $2,998,718  $2,815,283 
         
LIABILITIES        
Current liabilities:        
Accounts payable $356,570  $331,710 
Current portion of long-term debt  23,476   23,326 
Accrued liabilities  126,517   107,949 
Short-term lease liabilities  36,673   33,492 
Total current liabilities  543,236   496,477 
         
Long-term debt  680,999   683,396 
Deferred tax liabilities, net  168,091   168,568 
Long-term portion of insurance reserves  49,456   50,657 
Long-term lease liabilities  68,457   53,749 
Other liabilities  13,663   13,642 
Total liabilities  1,523,902   1,466,489 
         
EQUITY  1,474,816   1,348,794 
Total liabilities and equity $2,998,718  $2,815,283 
         
         
  As of June 30, 
     2021 2020
Other Financial Data        
Receivable days  45   49 
Inventory days  30   28 
Accounts payable days  74   83 
Receivables, net plus inventories, net less accounts payable $313,631  $277,080 
Receivables, net plus inventories, net less accounts payable as a percent of sales (TTM) †9.9%  10.5%
         
† 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)      
       
  Six Months Ended June 30, 
  2021 2020
Cash Flows Provided by (Used in) Operating Activities:              
Net income $150,222  $106,268 
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization  33,221   33,311 
Share-based compensation  5,377   9,038 
Loss on extinguishment of debt  13,862   233 
Loss on sale or abandonment of property and equipment  833   320 
Amortization of debt issuance costs  858   716 
Provision for bad debt expense  4,037   3,756 
Loss from inventory obsolescence  1,129   1,313 
Deferred income taxes, net  (206)  (38)
Change in certain assets and liabilities      
Receivables, net  (36,277)  1,894 
Inventories, net  (8,055)  538 
Prepaid expenses and other current assets  (2,273)  9,151 
Accounts payable  21,782   (16,390)
Accrued liabilities  17,693   28,188 
Payment of contingent consideration     (413)
Other, net     277 
Net cash provided by operating activities  202,203   178,162 
       
Cash Flows Provided by (Used in) Investing Activities:      
Purchases of property and equipment  (28,560)  (20,937)
Acquisition of businesses  (195,411)  (20,526)
Proceeds from sale of property and equipment  193   763 
Net cash used in investing activities  (223,778)  (40,700)
       
Cash Flows Provided by (Used in) Financing Activities:      
Proceeds from issuance of long-term debt  411,250   300,000 
Repayment of long-term debt  (421,716)  (313,407)
Payment of debt issuance costs  (6,500)  (2,280)
Taxes withheld and paid on employees' equity awards  (11,491)  (13,165)
Exercise of stock options  5,952    
Repurchase of shares of common stock  (24,038)  (34,152)
Payment of contingent consideration  (150)  (428)
Net cash used in financing activities  (46,693)  (63,432)
       
Cash and Cash Equivalents      
(Decrease) increase for the period  (68,268)  74,030 
Beginning of period  330,007   184,807 
End of period $261,739  $258,837 
       
Supplemental disclosure of noncash activities:      
Leased assets obtained in exchange for new operating lease liabilities $39,135  $19,257 
Accruals for property and equipment  460   323 


TopBuild Corp.                      
Segment Data (Unaudited)                    
(dollars in thousands)                    
                     
  Three Months Ended June 30,       Six Months Ended June 30,    
  2021 2020 Change 2021 2020 Change
TruTeam                    
Sales $605,625  $466,569   29.8% $1,138,378  $942,442  20.8%
                     
Operating profit, as reported $99,066  $69,643        172,702   129,994    
Operating margin, as reported  16.4 % 14.9 %      15.2 % 13.8 %   
                     
Rationalization charges     857           857    
Acquisition related costs  1,112           1,112   4    
COVID-19 pay  116   638        605   638    
Operating profit, as adjusted $100,294  $71,138       $174,419  $131,493    
Operating margin, as adjusted  16.6 % 15.2 %      15.3 % 14.0 %   
                     
Service Partners                    
Sales $273,364  $216,336   26.4% $524,965  $430,558  21.9%
                     
Operating profit, as reported $42,856  $24,155        78,241   48,825    
Operating margin, as reported  15.7 % 11.2 %      14.9 % 11.3 %   
                     
Rationalization charges     944           944    
COVID-19 pay  20   54        54   54    
Operating profit, as adjusted $42,876  $25,153       $78,295  $49,823    
Operating margin, as adjusted  15.7 % 11.6 %      14.9 % 11.6 %   
                     
Total                    
Sales before eliminations $878,989  $682,905       $1,663,343  $1,373,000    
Intercompany eliminations  (44,734)  (36,806)       (86,290)  (73,673)   
Net sales after eliminations $834,255  $646,099   29.1% $1,577,053  $1,299,327  21.4%
                     
Operating profit, as reported - segments $141,922  $93,798       $250,943  $178,819    
General corporate expense, net  (6,704)  (7,383)       (13,311)  (16,581)   
Intercompany eliminations  (6,932)  (5,961)       (13,460)  (11,795)   
Operating profit, as reported $128,286  $80,454       $224,172  $150,443    
Operating margin, as reported  15.4 % 12.5 %      14.2 % 11.6 %   
                     
Rationalization charges     2,376        16   2,376    
Acquisition related costs †  1,457   (40)       2,210   196    
Refinancing costs     20           57    
COVID-19 pay  136   692        659   692    
Operating profit, as adjusted $129,879  $83,502       $227,057  $153,764    
Operating margin, as adjusted  15.6 % 12.9 %      14.4 % 11.8 %   
                     
Share-based compensation  2,266   5,130        5,377   9,038    
Depreciation and amortization  17,703   19,121        33,221   33,311    
EBITDA, as adjusted $149,848  $107,753       $265,655  $196,113    
EBITDA margin, as adjusted  18.0 % 16.7 %      16.8 % 15.1 %   
                     
Sales change period over period  188,156           277,726       
EBITDA, as adjusted, change period over period  42,095           69,542       
Incremental EBITDA, as adjusted, as a percentage of change in sales  22.4 %         25.0 %     
                     
† 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 June 30,  Six Months Ended June 30, 
  2021 2020 2021 2020
Gross Profit and Operating Profit Reconciliations            
             
Net sales $834,255  $646,099  $1,577,053  $1,299,327 
             
Gross profit, as reported $243,180  $178,054  $440,939  $350,011 
             
Rationalization charges     1,079      1,079 
COVID-19 pay  122   482   592   482 
Gross profit, as adjusted $243,302  $179,615  $441,531  $351,572 
             
Gross margin, as reported  29.1% 27.6% 28.0% 26.9%
Gross margin, as adjusted  29.2% 27.8% 28.0% 27.1%
             
Operating profit, as reported $128,286  $80,454  $224,172  $150,443 
             
Rationalization charges     2,376   16   2,376 
Acquisition related costs  1,457   (40)  2,210   196 
Refinancing costs     20      57 
COVID-19 pay  136   692   659   692 
Operating profit, as adjusted $129,879  $83,502  $227,057  $153,764 
             
Operating margin, as reported  15.4% 12.5% 14.2% 11.6%
Operating margin, as adjusted  15.6% 12.9% 14.4% 11.8%
             
Income Per Common Share Reconciliation            
             
Income before income taxes, as reported $122,247  $72,266  $197,747  $133,753 
             
Rationalization charges     2,376   16   2,376 
Acquisition related costs  1,457   (40)  2,210   196 
Refinancing costs and loss on extinguishment of debt     20   13,862   290 
COVID-19 pay  136   692   659   692 
Income before income taxes, as adjusted  123,840   75,314   214,494   137,307 
             
Tax rate at 26.0%  (32,198)  (19,582)  (55,769)  (35,700)
Income, as adjusted $91,642  $55,732  $158,725  $101,607 
             
Income per common share, as adjusted $2.76  $1.68  $4.78  $3.04 
             
Weighted average diluted common shares outstanding  33,177,435   33,202,423   33,190,107   33,401,135 


TopBuild Corp.
Same Branch and Acquisition Net Sales and Adjusted EBITDA (Unaudited)
(dollars in thousands)            
             
  Three Months Ended June 30,  Six Months Ended June 30, 
  2021 2020 2021 2020
Net sales            
Same branch:            
TruTeam $538,360  $466,569  $1,043,657  $942,442 
Service Partners  269,473   216,336   521,074   430,558 
Eliminations  (43,750)  (36,806)  (85,305)  (73,673)
Total same branch  764,083   646,099   1,479,426   1,299,327 
             
Acquisitions (a):            
TruTeam $67,265  $  $94,721  $ 
Service Partners  3,891      3,891    
Eliminations  (984)     (985)   
Total acquisitions  70,172      97,627    
Total $834,255  $646,099  $1,577,053  $1,299,327 
             
EBITDA, as adjusted            
Same branch $140,425  $107,753  $253,554  $196,113 
Acquisitions (a)  9,423      12,101    
Total $149,848  $107,753  $265,655  $196,113 
             
EBITDA, as adjusted, as a percentage of sales            
Same branch (b)  18.4%     17.1%   
Acquisitions (c)  13.4%     12.4%   
Total (d)  18.0%  16.7%  16.8%  15.1%
             
As Adjusted Incremental EBITDA, as a percentage of change in sales            
Same branch (e)  27.7%     31.9%   
Acquisitions (c)  13.4%     12.4%   
Total (f)  22.4%     25.0%   
             
(a) Represents current year impact of acquisitions in their first twelve months
(b) Same branch EBITDA, as adjusted, as a percentage of same branch sales
(c) Acquired EBITDA, 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.
Same Branch and Acquisition Net Sales by Market (Unaudited)
(in thousands)
            
 Three Months Ended June 30,  Six Months Ended June 30, 
 2021 2020 2021 2020
Same branch:           
Residential$594,259 $505,534 $1,151,253 $1,012,266
Commercial 169,824  140,565  328,173  287,061
Same branch net sales 764,083  646,099  1,479,426  1,299,327
            
Acquisitions (a):           
Residential$58,351 $ $78,141 $
Commercial 11,821    19,486  
Acquisitions net sales 70,172    97,627  
Total net sales$834,255 $646,099 $1,577,083 $1,299,327
            
(a) Represents current year impact of acquisitions in their first twelve months


TopBuild Corp.
Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
(in thousands)
             
  Three Months Ended June 30,  Six Months Ended June 30, 
  2021 2020 2021 2020
Net income, as reported $90,380 $55,496  $150,222 $106,268
Adjustments to arrive at EBITDA, as adjusted:            
Interest expense and other, net  6,039  8,188   12,563  16,457
Income tax expense  31,867  16,770   47,525  27,485
Depreciation and amortization  17,703  19,121   33,221  33,311
Share-based compensation  2,266  5,130   5,377  9,038
Rationalization charges    2,376   16  2,376
Acquisition related costs  1,457  (40)  2,210  196
Refinancing costs and loss on extinguishment of debt    20   13,862  290
COVID-19 pay  136  692   659  692
EBITDA, as adjusted $149,848 $107,753  $265,655 $196,113


TopBuild Corp.
Acquisition Adjusted Net Sales (Unaudited)
(in thousands)              
 2020 2021 Trailing Twelve
Months Ended
 Q3 Q4 Q1 Q2 June 30, 2021
Net Sales$697,223 $721,487 $742,798 $834,255 $2,995,763
Acquisitions proforma adjustment † 73,677  55,303  44,199  2,204  175,383
Net sales, acquisition adjusted$770,900 $776,790 $786,997 $836,459 $3,171,146
               
               
† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches


TopBuild Corp.
2021 Estimated Adjusted EBITDA Range (Unaudited)
(in millions)
      
 Twelve Months Ending December 31, 2021
 Low High
Estimated net income$339.5 $363.6
Adjustments to arrive at estimated EBITDA, as adjusted:     
Interest expense and other, net 24.7  22.2
Income tax expense 119.3  127.8
Depreciation and amortization 70.6  67.5
Share-based compensation 10.9  8.9
Estimated EBITDA, as adjusted$565.0 $590.0