How do you interpret distribution — goodwill purchase accounting adjustments?

Frequent or large adjustments may indicate poor initial valuation processes or unexpected findings during post-acquisition integration.

How does distribution — goodwill purchase accounting adjustments compare across companies?

Standard accounting practice for M&A; peers report these during the first year following an acquisition.

TopBuild Corporation BLD Distribution — Goodwill Purchase Accounting Adjustments

Discontinued — last reported Q1 '19

Similar metrics at other companies

BROSpecialty Distribution — Goodwill Purchase Accounting Adjustments

$3M+1,100%

AITService Center Based Distribution Segment — Goodwill, Purchase Accounting Adjustments

$2.06M—

BRORetail — Goodwill Purchase Accounting Adjustments

$13M+1,400%

HDistribution — Goodwill, Measurement Period Adjustment

$250K—

GNRCDomestic — Goodwill Purchase Accounting Adjustments

-$1.55M—

CLHOperating Segments — Goodwill Purchase Accounting Adjustments

$2.92M—

Other financials

Income statement

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Revenue$1.4B+17.2%

Gross profit$400.3M+13.9%

Operating income$175.0M-1.4%

Net income$104.8M-15.1%

EPS (diluted)$3.73-11.8%

Balance sheet

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Cash & equivalents$268.8M-12.9%

Total debt$3.1B+99.6%

Total equity$2.4B+13.6%

Total assets$6.7B+46.0%

Cash flow

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Operating cash flow$160.7M+5.3%

CapEx$14.0M+4.5%

Free cash flow$146.7M+5.4%

Valuation

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Market cap$12B+10.9%

Enterprise value$14.86B+25.3%

P/E23.9×+5.6×

P/S2.1×+0.1×

Profitability

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Gross margin28.8%-1.3pp

Operating margin14%-2.0pp

Net margin9%-2.3pp

FCF margin12.5%-0.5pp

Returns & leverage

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Return on equity22.3%-2.3pp

Debt / equity1.3×+0.6×

Current ratio2×0.0×

Where this comes from

Reported directly by TopBuild Corporation in its filing.

Tagged under the XBRL concept us-gaap:GoodwillPurchaseAccountingAdjustments.

The official record: TopBuild Corporation’s 10-Q, filed May 7, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does distribution — goodwill purchase accounting adjustments mean?: Corrections or refinements to the recorded value of assets and liabilities from a recent acquisition.
How do you interpret distribution — goodwill purchase accounting adjustments?: Frequent or large adjustments may indicate poor initial valuation processes or unexpected findings during post-acquisition integration.
How does distribution — goodwill purchase accounting adjustments compare across companies?: Standard accounting practice for M&A; peers report these during the first year following an acquisition.