TopBuild Corp. (NYSE:BLD) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 09:00 am ET

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TopBuild Corp. (NYSE:BLD) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the TopBuild Earnings conference call. [Operator Instructions] As a reminder, this conference is being recorded, Tuesday, August 4, 2020. I would now like to turn the conference over to Tabitha Zane. Please go ahead.

Executive
Tabitha Zane

Thank you, and good morning. On the call today are Gerry Volas, Chief Executive Officer; Robert Buck, President and Chief Operating Officer; and John Peterson, Chief Financial Officer. We have posted senior management's formal remarks on the Investor Relations section of our website at topbuild.com. As shown on slide two of today's presentation, many of our remarks will include forward-looking statements concerning the company's operations and financial condition. These forward-looking statements include known and unknown risks, including those set forth in this morning's press release as well as in the company's filings with the SEC. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. Please note that other than an otherwise specifically stated, the financial measures to be discussed on this call will be on a non-GAAP basis. The non-GAAP measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. We have provided reconciliation of these financial measures to the most comparable GAAP measures in a table included in today's press release and in the presentation accompanying this call. Please turn to slide three. I will now turn the call over to Gerry Volas.

Executive
Jerry Volas

Good morning, and thank you for joining us today. Let me begin by acknowledging the ongoing impact that COVID-19 is having on our employees, their families and all of our other stakeholders. We understand it's a difficult time for everyone. Here at TopBuild, we continue to manage every aspect of our operations to provide a safe environment for our employees, our supplier partners and our customers. At our branch support center in Daytona, we continue to work remotely, with technology keeping us connected and effectively supporting our broad network of branches throughout the country. At every one of our branches, we have implemented best practices in terms of sanitizing and disinfecting, and we enforce social distancing there and on job sites. As we look back on the month since our last call in early May, we've seen the resiliency of the residential new construction industry. We started the second quarter with extreme uncertainty as the country was under a national lockdown, our installation and distribution businesses were deemed nonessential in four states and unemployment reached levels not seen since the great depression. Yet as we reported to you in May, our April financial results were still relatively strong, and they continue to improve as the quarter progressed. We're also encouraged that while second quarter housing starts are lower than last year, our builder customers are reporting a steady increase in traffic and orders. This should lead to improving housing starts as the year progresses.

Historically low interest rates, very little inventory and growing desire to escape cranked urban environments are