Delaware | 81-4259606 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
2520 Red Hill Avenue | Santa Ana, | California | 92705 | |||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||
Large accelerated filer ☐ | Accelerated filer | |||||||||||||||||||||
☒ | ||||||||||||||||||||||
Non-accelerated filer ☐ | Smaller reporting company | |||||||||||||||||||||
☐ | ||||||||||||||||||||||
Emerging growth company | ☐ |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common Stock | FBM | New York Stock Exchange |
Page | |||||||||||
PART I. FINANCIAL INFORMATION | |||||||||||
Item 1. | Financial Statements | ||||||||||
PART II. OTHER INFORMATION | |||||||||||
Legal Proceedings | |||||||||||
Risk Factors | |||||||||||
Other Information | |||||||||||
Exhibits | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net sales | $ | 564,906 | $ | 542,273 | $ | 1,639,689 | $ | 1,528,153 | |||||||
Cost of goods sold | 393,111 | 388,236 | 1,143,397 | 1,093,412 | |||||||||||
Gross profit | 171,795 | 154,037 | 496,292 | 434,741 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative expenses | 123,907 | 113,279 | 363,872 | 328,088 | |||||||||||
Depreciation and amortization | 20,218 | 19,771 | 60,911 | 56,922 | |||||||||||
Total operating expenses | 144,125 | 133,050 | 424,783 | 385,010 | |||||||||||
Income from operations | 27,670 | 20,987 | 71,509 | 49,731 | |||||||||||
Loss on extinguishment of debt | — | (58,475 | ) | — | (58,475 | ) | |||||||||
Interest expense | (9,118 | ) | (12,576 | ) | (26,015 | ) | (43,028 | ) | |||||||
Other (expense) income, net | (89 | ) | (8 | ) | (4 | ) | 126 | ||||||||
Income (loss) before income taxes | 18,463 | (50,072 | ) | 45,490 | (51,646 | ) | |||||||||
Income tax expense (benefit) | 5,754 | (12,519 | ) | 13,232 | (13,299 | ) | |||||||||
Income (loss) from continuing operations | 12,709 | (37,553 | ) | 32,258 | (38,347 | ) | |||||||||
Income from discontinued operations, net of tax | — | 2,772 | — | 7,913 | |||||||||||
Loss on sale of discontinued operations, net of tax | (11 | ) | — | (1,401 | ) | — | |||||||||
Net income (loss) | $ | 12,698 | $ | (34,781 | ) | $ | 30,857 | $ | (30,434 | ) | |||||
Earnings (loss) per share data: | |||||||||||||||
Earnings (loss) from continuing operations per share - basic | $ | 0.30 | $ | (0.88 | ) | 0.75 | $ | (0.89 | ) | ||||||
Earnings (loss) from continuing operations per share - diluted | $ | 0.30 | $ | (0.88 | ) | 0.75 | $ | (0.89 | ) | ||||||
Earnings (loss) from discontinued operations per share - basic | $ | — | $ | 0.07 | (0.03 | ) | $ | 0.18 | |||||||
Earnings (loss) from discontinued operations per share - diluted | $ | — | $ | 0.07 | (0.03 | ) | $ | 0.18 | |||||||
Earnings (loss) per share - basic | $ | 0.30 | $ | (0.81 | ) | 0.72 | $ | (0.71 | ) | ||||||
Earnings (loss) per share - diluted | $ | 0.30 | $ | (0.81 | ) | 0.72 | $ | (0.71 | ) | ||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 42,988,829 | 42,894,474 | 42,969,797 | 42,889,430 | |||||||||||
Diluted | 43,508,678 | 42,917,230 | 43,174,351 | 42,905,273 | |||||||||||
Comprehensive income (loss): | |||||||||||||||
Net income (loss) | $ | 12,698 | $ | (34,781 | ) | $ | 30,857 | $ | (30,434 | ) | |||||
Foreign currency translation adjustment | (984 | ) | 1,481 | 2,317 | (2,724 | ) | |||||||||
Unrealized gain (loss) on derivatives, net of taxes of $0.1 million and $0.5 million, respectively and $2.2 million and $0.5 million, respectively | 344 | (1,420 | ) | (6,436 | ) | 839 | |||||||||
Total other comprehensive (loss) income | (640 | ) | 61 | (4,119 | ) | (1,885 | ) | ||||||||
Total comprehensive income (loss) | $ | 12,058 | $ | (34,720 | ) | $ | 26,738 | $ | (32,319 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net sales | $ | 486,090 | $ | 559,911 | $ | 1,010,348 | $ | 1,074,783 | |||||||||||||||||||||||||||
Cost of goods sold | 340,435 | 388,374 | 702,535 | 750,286 | |||||||||||||||||||||||||||||||
Gross profit | 145,655 | 171,537 | 307,813 | 324,497 | |||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 106,257 | 122,735 | 229,354 | 239,965 | |||||||||||||||||||||||||||||||
Depreciation and amortization | 19,288 | 20,351 | 38,507 | 40,693 | |||||||||||||||||||||||||||||||
Total operating expenses | 125,545 | 143,086 | 267,861 | 280,658 | |||||||||||||||||||||||||||||||
Income from operations | 20,110 | 28,451 | 39,952 | 43,839 | |||||||||||||||||||||||||||||||
Interest expense | (7,153) | (8,341) | (14,886) | (16,897) | |||||||||||||||||||||||||||||||
Gain on legal settlement | — | — | 8,556 | — | |||||||||||||||||||||||||||||||
Other income (expense), net | 547 | 44 | (475) | 85 | |||||||||||||||||||||||||||||||
Income before income taxes | 13,504 | 20,154 | 33,147 | 27,027 | |||||||||||||||||||||||||||||||
Income tax expense | 3,647 | 5,433 | 8,914 | 7,478 | |||||||||||||||||||||||||||||||
Income from continuing operations | 9,857 | 14,721 | 24,233 | 19,549 | |||||||||||||||||||||||||||||||
Loss on sale of discontinued operations, net of tax | — | (44) | — | (1,390) | |||||||||||||||||||||||||||||||
Net income | $ | 9,857 | $ | 14,677 | $ | 24,233 | $ | 18,159 | |||||||||||||||||||||||||||
Earnings per share data: | |||||||||||||||||||||||||||||||||||
Earnings from continuing operations per share - basic | $ | 0.23 | $ | 0.34 | $ | 0.56 | $ | 0.45 | |||||||||||||||||||||||||||
Earnings from continuing operations per share - diluted | $ | 0.23 | $ | 0.34 | $ | 0.56 | $ | 0.45 | |||||||||||||||||||||||||||
Loss from discontinued operations per share - basic | $ | — | $ | — | $ | — | $ | (0.03) | |||||||||||||||||||||||||||
Loss from discontinued operations per share - diluted | $ | — | $ | — | $ | — | $ | (0.03) | |||||||||||||||||||||||||||
Earnings per share - basic | $ | 0.23 | $ | 0.34 | $ | 0.56 | $ | 0.42 | |||||||||||||||||||||||||||
Earnings per share - diluted | $ | 0.23 | $ | 0.34 | $ | 0.56 | $ | 0.42 | |||||||||||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||||||||
Basic | 43,203,894 | 42,987,915 | 43,124,793 | 42,960,124 | |||||||||||||||||||||||||||||||
Diluted | 43,332,225 | 43,245,353 | 43,440,723 | 43,064,496 | |||||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||
Net income | $ | 9,857 | $ | 14,677 | $ | 24,233 | $ | 18,159 | |||||||||||||||||||||||||||
Foreign currency translation adjustment | 3,134 | 1,731 | (3,909) | 3,301 | |||||||||||||||||||||||||||||||
Unrealized loss on derivatives, net of taxes of $0.4 million and $1.0 million, respectively and $0.5 million and $2.3 million, respectively | (1,026) | (3,284) | (1,525) | (6,780) | |||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | 2,108 | (1,553) | (5,434) | (3,479) | |||||||||||||||||||||||||||||||
Total comprehensive income | $ | 11,965 | $ | 13,124 | $ | 18,799 | $ | 14,680 |
September 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||
Current assets: | Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 22,668 | $ | 15,299 | Cash and cash equivalents | $ | 31,122 | $ | 17,766 | |||||||||
Accounts receivable—net of allowance for doubtful accounts of $3,678 and $3,239, respectively | 314,088 | 276,043 | ||||||||||||||||
Accounts receivable—net of allowance for expected credit losses of $2,896 and $3,169, respectively | Accounts receivable—net of allowance for expected credit losses of $2,896 and $3,169, respectively | 263,340 | 262,757 | |||||||||||||||
Other receivables | 49,284 | 57,472 | Other receivables | 35,003 | 59,104 | |||||||||||||
Inventories | 163,280 | 165,989 | Inventories | 159,615 | 178,624 | |||||||||||||
Prepaid expenses and other current assets | 13,321 | 9,053 | Prepaid expenses and other current assets | 9,386 | 7,965 | |||||||||||||
Total current assets | 562,641 | 523,856 | Total current assets | 498,466 | 526,216 | |||||||||||||
Property and equipment, net | 153,294 | 151,641 | Property and equipment, net | 149,195 | 150,188 | |||||||||||||
Right-of-use assets, net | 117,137 | — | Right-of-use assets, net | 126,290 | 120,562 | |||||||||||||
Intangible assets, net | 117,894 | 145,876 | Intangible assets, net | 89,776 | 113,861 | |||||||||||||
Goodwill | 490,315 | 484,941 | Goodwill | 494,159 | 495,724 | |||||||||||||
Other assets | 5,481 | 10,393 | Other assets | 6,607 | 5,206 | |||||||||||||
Total assets | $ | 1,446,762 | $ | 1,316,707 | Total assets | $ | 1,364,493 | $ | 1,411,757 | |||||||||
Liabilities and stockholders' equity: | Liabilities and stockholders' equity: | |||||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||||
Accounts payable | $ | 143,958 | $ | 137,773 | Accounts payable | $ | 145,267 | $ | 145,226 | |||||||||
Accrued payroll and employee benefits | 29,113 | 28,830 | Accrued payroll and employee benefits | 25,458 | 31,410 | |||||||||||||
Accrued taxes | 11,092 | 11,867 | Accrued taxes | 9,594 | 8,780 | |||||||||||||
Current portion of tax receivable agreement | 27,676 | 16,667 | Current portion of tax receivable agreement | 8,537 | 27,850 | |||||||||||||
Current portion of term loan, net | 4,500 | 4,500 | ||||||||||||||||
Current portion of term loan | Current portion of term loan | 4,500 | 4,500 | |||||||||||||||
Current portion of lease liabilities | 29,310 | — | Current portion of lease liabilities | 31,508 | 30,307 | |||||||||||||
Other current liabilities | 23,650 | 19,979 | Other current liabilities | 19,336 | 18,557 | |||||||||||||
Total current liabilities | 269,299 | 219,616 | Total current liabilities | 244,200 | 266,630 | |||||||||||||
Asset-based revolving credit facility | 134,306 | 146,000 | Asset-based revolving credit facility | 40,000 | 89,000 | |||||||||||||
Long-term portion of term loan, net | 435,475 | 437,999 | Long-term portion of term loan, net | 432,950 | 434,633 | |||||||||||||
Tax receivable agreement | 90,272 | 117,948 | Tax receivable agreement | 80,996 | 89,533 | |||||||||||||
Deferred income taxes, net | 18,586 | 20,678 | Deferred income taxes, net | 21,670 | 18,972 | |||||||||||||
Long-term portion of lease liabilities | 95,045 | — | Long-term portion of lease liabilities | 100,867 | 97,145 | |||||||||||||
Other liabilities | 7,957 | 8,117 | Other liabilities | 14,388 | 7,679 | |||||||||||||
Total liabilities | 1,050,940 | 950,358 | Total liabilities | 935,071 | 1,003,592 | |||||||||||||
Commitments and contingencies | Commitments and contingencies | |||||||||||||||||
Stockholders' equity: | Stockholders' equity: | |||||||||||||||||
Preferred stock, $0.001 par value, authorized 10,000,000 shares; 0 shares issued | — | — | Preferred stock, $0.001 par value, authorized 10,000,000 shares; 0 shares issued | — | — | |||||||||||||
Common stock, $0.001 par value, authorized 190,000,000 shares; 42,989,840 and 42,907,326 shares issued, respectively | 13 | 13 | ||||||||||||||||
Common stock, $0.001 par value, authorized 190,000,000 shares; 43,205,678 and 42,991,016 shares issued, respectively | Common stock, $0.001 par value, authorized 190,000,000 shares; 43,205,678 and 42,991,016 shares issued, respectively | 13 | 13 | |||||||||||||||
Additional paid-in capital | 335,237 | 332,330 | Additional paid-in capital | 338,820 | 336,362 | |||||||||||||
Retained earnings | 64,872 | 34,187 | Retained earnings | 98,487 | 74,254 | |||||||||||||
Accumulated other comprehensive loss | (4,300 | ) | (181 | ) | Accumulated other comprehensive loss | (7,898) | (2,464) | |||||||||||
Total stockholders' equity | 395,822 | 366,349 | Total stockholders' equity | 429,422 | 408,165 | |||||||||||||
Total liabilities and stockholders' equity | $ | 1,446,762 | $ | 1,316,707 | Total liabilities and stockholders' equity | $ | 1,364,493 | $ | 1,411,757 |
Six Months Ended June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 24,233 | $ | 18,159 | |||||||||||||
Less: loss on sale of discontinued operations | — | (1,390) | |||||||||||||||
Net income from continuing operations | 24,233 | 19,549 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: | |||||||||||||||||
Depreciation | 14,598 | 17,558 | |||||||||||||||
Amortization of intangible assets | 23,909 | 23,135 | |||||||||||||||
Amortization of debt issuance costs and debt discount | 1,080 | 992 | |||||||||||||||
Inventory fair value purchase accounting adjustment | — | 234 | |||||||||||||||
Provision for expected credit losses | 1,366 | 1,525 | |||||||||||||||
Stock-based compensation | 2,828 | 1,939 | |||||||||||||||
Loss (gain) on disposal or sale of assets | 708 | (67) | |||||||||||||||
Right-of-use assets non-cash expense | 15,057 | 13,601 | |||||||||||||||
Deferred income taxes | 3,334 | 271 | |||||||||||||||
Change in assets and liabilities, net of effects of acquisitions: | |||||||||||||||||
Accounts receivable | 208 | (43,441) | |||||||||||||||
Other receivables | 23,435 | 13,581 | |||||||||||||||
Inventories | 20,053 | (1,291) | |||||||||||||||
Prepaid expenses and other current assets | (1,472) | (3,123) | |||||||||||||||
Other assets | (6) | (121) | |||||||||||||||
Accounts payable | 1,333 | 23,429 | |||||||||||||||
Accrued payroll and employee benefits | (5,802) | (3,057) | |||||||||||||||
Accrued taxes | 827 | (2,291) | |||||||||||||||
Operating lease liabilities | (14,752) | (13,345) | |||||||||||||||
Other liabilities | 4,365 | 4,126 | |||||||||||||||
Net cash provided by operating activities from continuing operations | 115,302 | 53,204 | |||||||||||||||
Cash flows from investing activities from continuing operations: | |||||||||||||||||
Purchases of property and equipment | (13,263) | (15,052) | |||||||||||||||
Proceeds from termination of net investment hedge | — | 3,313 | |||||||||||||||
Net (payments of) proceeds from net working capital adjustments related to acquisitions | (34) | 470 | |||||||||||||||
Proceeds from disposal or sale of assets | 980 | 2,376 | |||||||||||||||
Acquisitions, net of cash acquired | (8,638) | (21,923) | |||||||||||||||
Net cash used in investing activities from continuing operations | (20,955) | (30,816) | |||||||||||||||
Cash flows from financing activities from continuing operations: | |||||||||||||||||
Proceeds from asset-based revolving credit facility | 322,500 | 281,620 | |||||||||||||||
Repayments of asset-based revolving credit facility | (371,500) | (291,371) | |||||||||||||||
Principal payments for term loan | (2,250) | (2,250) | |||||||||||||||
Payment related to tax receivable agreement | (27,850) | (16,667) | |||||||||||||||
Tax withholding payment related to net settlement of equity awards | (370) | (138) |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 30,857 | $ | (30,434 | ) | ||
Add: loss on sale of discontinued operations | (1,401 | ) | — | ||||
Less: net income from discontinued operations | — | 7,913 | |||||
Net income (loss) from continuing operations | 32,258 | (38,347 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities from continuing operations: | |||||||
Depreciation | 26,173 | 24,383 | |||||
Amortization of intangible assets | 34,738 | 32,539 | |||||
Amortization of debt issuance costs and debt discount | 1,617 | 6,834 | |||||
Loss on extinguishment of debt | — | 58,475 | |||||
Inventory fair value purchase accounting adjustment | 234 | 413 | |||||
Provision for doubtful accounts | 2,017 | 1,654 | |||||
Stock-based compensation | 3,056 | 1,512 | |||||
Unrealized gain on derivative instruments, net | — | (56 | ) | ||||
(Gain) loss on disposal of property and equipment | (54 | ) | 614 | ||||
Right-of-use assets non-cash expense | 20,586 | — | |||||
Deferred income taxes | 63 | (13,038 | ) | ||||
Change in assets and liabilities, net of effects of acquisitions: | |||||||
Accounts receivable | (32,949 | ) | (65,361 | ) | |||
Other receivables | 10,520 | 5,361 | |||||
Inventories | 5,623 | (3,244 | ) | ||||
Prepaid expenses and other current assets | (4,198 | ) | (496 | ) | |||
Other assets | (187 | ) | (1,928 | ) | |||
Accounts payable | 2,417 | (8,940 | ) | ||||
Accrued payroll and employee benefits | 214 | 7,929 | |||||
Accrued taxes | (860 | ) | 4,783 | ||||
Operating lease liability | (20,034 | ) | — | ||||
Other liabilities | 6,019 | (13,960 | ) | ||||
Net cash provided by (used in) operating activities from continuing operations | 87,253 | (873 | ) | ||||
Cash flows from investing activities from continuing operations: | |||||||
Purchases of property and equipment | (29,369 | ) | (28,157 | ) | |||
Proceeds from termination of net investment hedge | 3,313 | — | |||||
Proceeds from net working capital adjustments related to acquisitions | 461 | 115 | |||||
Proceeds from the disposal of fixed assets | 2,719 | 1,605 | |||||
Acquisitions, net of cash acquired | (21,882 | ) | (70,334 | ) | |||
Net cash used in investing activities from continuing operations | (44,758 | ) | (96,771 | ) | |||
Cash flows from financing activities from continuing operations: | |||||||
Proceeds from asset-based revolving credit facility | 403,454 | 757,298 | |||||
Repayments of asset-based revolving credit facility | (415,178 | ) | (498,964 | ) |
Principal payments for term loan | (3,375 | ) | — | ||||
Term loan proceeds | — | 450,000 | |||||
Term loan original issuance discount and deferred finance costs | — | (7,935 | ) | ||||
Repayment of bond principal | — | (575,000 | ) | ||||
Prepayment premium on senior secured notes | — | (23,872 | ) | ||||
Payment related to tax receivable agreement | (16,667 | ) | — | ||||
Tax withholding payment related to net settlement of equity awards | (155 | ) | (61 | ) | |||
Principal repayment of finance lease obligations | (2,002 | ) | (2,094 | ) | |||
Net cash (used in) provided by financing activities from continuing operations | (33,923 | ) | 99,372 | ||||
Net cash used in operating activities from discontinued operations | — | (2,063 | ) | ||||
Net cash used in investing activities from discontinued operations | (1,401 | ) | (928 | ) | |||
Net cash used in financing activities of discontinued operations | — | (140 | ) | ||||
Net cash used in discontinued operations | (1,401 | ) | (3,131 | ) | |||
Effect of exchange rate changes on cash | 198 | (138 | ) | ||||
Net increase (decrease) in cash | 7,369 | (1,541 | ) | ||||
Cash and cash equivalents at beginning of period | 15,299 | 12,101 | |||||
Cash and cash equivalents at end of period | $ | 22,668 | $ | 10,560 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid for income taxes | $ | 10,401 | $ | 1,504 | |||
Cash paid for interest | $ | 24,150 | $ | 52,288 | |||
Supplemental disclosures of non-cash investing and financing activities: | |||||||
Change in fair value of derivatives, net of tax | $ | 5,663 | $ | 839 | |||
Goodwill adjustment for purchase price allocation | $ | 57 | $ | 202 |
Principal repayment of finance lease liabilities | (1,355) | (1,319) | |||||||||
Net cash used in financing activities from continuing operations | (80,825) | (30,125) | |||||||||
Net cash used in investing activities from discontinued operations | — | (1,390) | |||||||||
Net cash used in discontinued operations | — | (1,390) | |||||||||
Effect of exchange rate changes on cash | (166) | 282 | |||||||||
Net increase (decrease) in cash | 13,356 | (8,845) | |||||||||
Cash and cash equivalents at beginning of period | 17,766 | 15,299 | |||||||||
Cash and cash equivalents at end of period | $ | 31,122 | $ | 6,454 | |||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for income taxes | $ | 190 | $ | 5,091 | |||||||
Cash paid for interest | $ | 14,186 | $ | 16,477 | |||||||
Supplemental disclosures of non-cash investing and financing activities: | |||||||||||
Decrease in fair value of derivatives, net of tax | $ | 1,525 | $ | 6,012 | |||||||
Net goodwill increase for purchase price allocation | $ | 47 | $ | 57 |
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-in Capital | Retained Earnings | Other Comprehensive (Loss) Income | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 42,991,016 | $ | 13 | $ | 336,362 | $ | 74,254 | $ | (2,464) | $ | 408,165 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 1,393 | — | — | 1,393 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 237,988 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding payment related to net share settlement of equity awards | (27,948) | — | (362) | — | — | (362) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (7,542) | (7,542) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 14,376 | 14,376 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 43,201,056 | $ | 13 | $ | 337,393 | $ | 88,630 | $ | (10,006) | $ | 416,030 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | $ | — | $ | 1,435 | $ | — | $ | — | $ | 1,435 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units and exercise of stock options | 6,456 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding payment related to net share settlement of equity awards | (1,834) | $ | — | $ | (8) | $ | — | $ | — | $ | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | $ | — | $ | — | $ | 2,108 | $ | 2,108 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | $ | — | $ | — | $ | 9,857 | $ | 9,857 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 43,205,678 | $ | 13 | $ | 338,820 | $ | 98,487 | $ | (7,898) | $ | 429,422 |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||
Shares | Amount | Additional Paid-in Capital | Retained Earnings | Other Comprehensive Loss | Total Stockholders' Equity | |||||||||||||||||
Balance at December 31, 2018 | 42,907,326 | $ | 13 | $ | 332,330 | $ | 34,187 | $ | (181 | ) | $ | 366,349 | ||||||||||
Adoption of derivatives guidance | — | — | — | (172 | ) | 172 | — | |||||||||||||||
Stock-based compensation | — | — | 829 | — | — | 829 | ||||||||||||||||
Vesting of restricted stock units | 93,014 | — | — | — | — | — | ||||||||||||||||
Shares withheld related to net settlement of equity awards | (13,657 | ) | — | (130 | ) | — | — | (130 | ) | |||||||||||||
Other comprehensive loss | — | — | — | — | (2,098 | ) | (2,098 | ) | ||||||||||||||
Net income | — | — | — | 3,482 | 3,482 | |||||||||||||||||
Balance at March 31, 2019 | 42,986,683 | $ | 13 | $ | 333,029 | $ | 37,497 | $ | (2,107 | ) | $ | 368,432 | ||||||||||
Stock-based compensation | — | — | 1,110 | — | — | 1,110 | ||||||||||||||||
Vesting of restricted stock units | 2,149 | — | — | — | — | |||||||||||||||||
Shares withheld related to net settlement of equity awards | (722 | ) | — | (8 | ) | — | — | (8 | ) | |||||||||||||
Other comprehensive loss | — | — | — | — | (1,553 | ) | (1,553 | ) | ||||||||||||||
Net income | — | — | — | 14,677 | — | 14,677 | ||||||||||||||||
Balance at June 30, 2019 | 42,988,110 | $ | 13 | $ | 334,131 | $ | 52,174 | $ | (3,660 | ) | $ | 382,658 | ||||||||||
Stock-based compensation | — | — | 1,117 | — | — | 1,117 | ||||||||||||||||
Vesting of restricted stock units | 2,135 | — | — | — | — | — | ||||||||||||||||
Shares withheld related to net settlement of equity awards | (405 | ) | — | (11 | ) | — | — | (11 | ) | |||||||||||||
Other comprehensive loss | — | — | — | — | (640 | ) | (640 | ) | ||||||||||||||
Net income | — | — | — | 12,698 | — | 12,698 | ||||||||||||||||
Balance at September 30, 2019 | 42,989,840 | 13 | $ | 335,237 | $ | 64,872 | $ | (4,300 | ) | $ | 395,822 |
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-in Capital | Retained Earnings | Other Comprehensive Loss | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-in Capital | Retained Earnings | Other Comprehensive Income | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 42,865,407 | $ | 13 | $ | 330,113 | $ | 46,184 | $ | 2,354 | $ | 378,664 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of tax guidance | — | — | — | 180 | (180 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 271 | — | — | 271 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 29,050 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld related to net settlement of equity awards | (3,205 | ) | — | (45 | ) | — | — | (45 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (1,028 | ) | (1,028 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (1,053 | ) | — | (1,053 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2018 | 42,891,252 | $ | 13 | $ | 330,339 | $ | 45,311 | $ | 1,146 | $ | 376,809 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | Balance at December 31, 2018 | 42,907,326 | $ | 13 | $ | 332,330 | $ | 34,187 | $ | (181) | $ | 366,349 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of derivative guidance | Adoption of derivative guidance | — | — | — | (172) | 172 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 667 | — | — | 667 | Stock-based compensation | — | — | 829 | — | — | 829 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 3,525 | — | — | — | — | — | Vesting of restricted stock units | 93,014 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld related to net settlement of equity awards | (795 | ) | — | (11 | ) | — | — | (11 | ) | Shares withheld related to net settlement of equity awards | (13,657) | — | (130) | — | — | (130) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (735 | ) | (735 | ) | Other comprehensive loss | — | — | — | — | (2,098) | (2,098) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 5,400 | — | 5,400 | Net income | — | — | — | 3,482 | 3,482 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | 42,893,982 | $ | 13 | $ | 330,995 | $ | 50,711 | $ | 411 | $ | 382,130 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in accounting standard - income taxes | — | — | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | Balance at March 31, 2019 | 42,986,683 | $ | 13 | $ | 333,029 | $ | 37,497 | $ | (2,107) | $ | 368,432 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 677 | — | — | 677 | Stock-based compensation | — | — | 1,110 | — | — | 1,110 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 1,327 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock unit | Vesting of restricted stock unit | 2,149 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld related to net settlement of equity awards | (344 | ) | — | (5 | ) | — | — | (5 | ) | Shares withheld related to net settlement of equity awards | (722) | — | (8) | — | — | (8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | 58 | 58 | Other comprehensive loss | — | — | — | — | (1,553) | (1,553) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | (34,781 | ) | — | (34,781 | ) | Net income | — | — | — | 14,677 | — | 14,677 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2018 | 42,894,965 | $ | 13 | $ | 331,667 | $ | 15,936 | $ | 469 | $ | 348,085 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | Balance at June 30, 2019 | 42,988,110 | $ | 13 | $ | 334,131 | $ | 52,174 | $ | (3,660) | $ | 382,658 |
Allowance for Expected Credit Losses | |||||
Balance at December 31, 2019 | $ | (3,169) | |||
Provision for expected credit losses | (1,366) | ||||
Write-offs | 1,731 | ||||
Recoveries | (92) | ||||
Balance at June 30, 2020 | $ | (2,896) |
Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | ||||||
Net sales | $ | 82,533 | $ | 237,923 | |||
Cost of goods sold | 60,125 | 172,682 | |||||
Gross profit | 22,408 | 65,241 | |||||
Operating expenses: | |||||||
Selling, general and administrative expenses | 17,078 | 49,481 | |||||
Depreciation and amortization | 1,561 | 4,637 | |||||
Total operating expenses | 18,639 | 54,118 | |||||
Income from operations | 3,769 | 11,123 | |||||
Interest expense | (11 | ) | (36 | ) | |||
Other income (expense), net | 5 | (5 | ) | ||||
Income from discontinued operations before income taxes | 3,763 | 11,082 | |||||
Income tax expense | 991 | 3,169 | |||||
Net income from discontinued operations, net of tax | $ | 2,772 | $ | 7,913 |
June 30, 2020 | |||||||||||||||||||||||||||||
United States | Canada | Total | |||||||||||||||||||||||||||
Operating leases: | |||||||||||||||||||||||||||||
Real estate ROU assets, gross | $ | 129,390 | $ | 17,373 | $ | 146,763 | |||||||||||||||||||||||
Accumulated amortization | (32,063) | (4,847) | (36,910) | ||||||||||||||||||||||||||
Real estate ROU assets, net | $ | 97,327 | $ | 12,526 | $ | 109,853 | |||||||||||||||||||||||
Real estate lease liabilities | $ | 97,251 | $ | 12,683 | $ | 109,934 | |||||||||||||||||||||||
Vehicle and equipment ROU assets, gross | $ | 18,561 | $ | 2,594 | $ | 21,155 | |||||||||||||||||||||||
Accumulated amortization | (4,254) | (464) | (4,718) | ||||||||||||||||||||||||||
Vehicle and equipment ROU assets, net | $ | 14,307 | $ | 2,130 | $ | 16,437 | |||||||||||||||||||||||
Vehicle and equipment lease liabilities | $ | 14,235 | $ | 2,117 | $ | 16,352 | |||||||||||||||||||||||
Total operating ROU assets, net | $ | 111,634 | $ | 14,656 | $ | 126,290 | |||||||||||||||||||||||
Total operating lease liabilities | $ | 111,486 | $ | 14,800 | $ | 126,286 | |||||||||||||||||||||||
Finance leases included in property and equipment, net: | |||||||||||||||||||||||||||||
Vehicle and equipment ROU assets, gross | $ | 6,471 | $ | 2,748 | $ | 9,219 | |||||||||||||||||||||||
Accumulated depreciation | (2,951) | (939) | (3,890) | ||||||||||||||||||||||||||
Total finance ROU assets, net | $ | 3,520 | $ | 1,809 | $ | 5,329 | |||||||||||||||||||||||
Total finance lease liabilities | $ | 3,882 | $ | 2,207 | $ | 6,089 |
September 30, 2019 | |||||||||||
United States | Canada | Total | |||||||||
Operating leases: | |||||||||||
Real estate ROU assets, gross | $ | 109,139 | $ | 16,032 | $ | 125,171 | |||||
Accumulated amortization | (16,143 | ) | (2,422 | ) | (18,565 | ) | |||||
Real estate ROU assets, net | $ | 92,996 | $ | 13,610 | $ | 106,606 | |||||
Real estate lease liability | $ | 92,074 | $ | 13,772 | $ | 105,846 | |||||
Vehicle and equipment ROU assets, gross | $ | 11,779 | $ | 863 | $ | 12,642 | |||||
Accumulated amortization | (1,934 | ) | (177 | ) | (2,111 | ) | |||||
Vehicle and equipment ROU assets, net | $ | 9,845 | $ | 686 | $ | 10,531 | |||||
Vehicle and equipment lease liability | $ | 9,822 | $ | 682 | $ | 10,504 | |||||
Total ROU assets, net | $ | 102,841 | $ | 14,296 | $ | 117,137 | |||||
Total operating lease liability | $ | 101,896 | $ | 14,454 | $ | 116,350 | |||||
Finance leases included in property and equipment, net: | |||||||||||
Vehicle and equipment ROU assets, gross | $ | 6,366 | $ | 2,834 | $ | 9,200 | |||||
Accumulated depreciation | (1,468 | ) | (528 | ) | (1,996 | ) | |||||
Total vehicle and equipment ROU assets, net | $ | 4,898 | $ | 2,306 | $ | 7,204 | |||||
Total vehicle and equipment lease liability | $ | 5,299 | $ | 2,706 | $ | 8,005 |
Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | Income Statement Classification | ||||||||
Operating leases: | ||||||||||
Lease cost | $ | 8,335 | $ | 24,469 | Selling, general and administrative expenses | |||||
Variable lease cost | 527 | 2,852 | Selling, general and administrative expenses | |||||||
Operating lease cost | 8,862 | 27,321 | ||||||||
Finance leases: | ||||||||||
Amortization of ROU assets | 615 | 2,044 | Depreciation and amortization | |||||||
Interest on lease liabilities | 106 | 347 | Interest expense | |||||||
Finance lease cost | 721 | 2,391 | ||||||||
Total lease cost | $ | 9,583 | $ | 29,712 |
December 31, 2019 | |||||||||||||||||||||||||||||
United States | Canada | Total | |||||||||||||||||||||||||||
Operating leases: | |||||||||||||||||||||||||||||
Real estate ROU assets, gross | $ | 114,202 | $ | 16,544 | $ | 130,746 | |||||||||||||||||||||||
Accumulated amortization | (21,337) | (3,406) | (24,743) | ||||||||||||||||||||||||||
Real estate ROU assets, net | $ | 92,865 | $ | 13,138 | $ | 106,003 | |||||||||||||||||||||||
Real estate lease liabilities | $ | 92,319 | $ | 13,240 | $ | 105,559 | |||||||||||||||||||||||
Vehicle and equipment ROU assets, gross | $ | 14,665 | $ | 2,751 | $ | 17,416 | |||||||||||||||||||||||
Accumulated amortization | (2,592) | (265) | (2,857) | ||||||||||||||||||||||||||
Vehicle and equipment ROU assets, net | $ | 12,073 | $ | 2,486 | $ | 14,559 | |||||||||||||||||||||||
Vehicle and equipment lease liabilities | $ | 12,037 | $ | 2,472 | $ | 14,509 | |||||||||||||||||||||||
Total operating ROU assets, net | $ | 104,938 | $ | 15,624 | $ | 120,562 | |||||||||||||||||||||||
Total operating lease liabilities | $ | 104,356 | $ | 15,712 | $ | 120,068 | |||||||||||||||||||||||
Finance leases included in property and equipment, net: | |||||||||||||||||||||||||||||
Vehicle and equipment ROU assets, gross | $ | 6,341 | $ | 2,863 | $ | 9,204 | |||||||||||||||||||||||
Accumulated depreciation | (1,892) | (670) | (2,562) | ||||||||||||||||||||||||||
Total finance ROU assets, net | $ | 4,449 | $ | 2,193 | $ | 6,642 | |||||||||||||||||||||||
Total finance lease liabilities | $ | 4,777 | $ | 2,607 | $ | 7,384 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | Income Statement Classification | ||||||||||||||||||||||||||||||||||||||||
Operating leases: | ||||||||||||||||||||||||||||||||||||||||||||
Lease cost | $ | 8,125 | $ | 8,082 | $ | 16,915 | $ | 16,134 | Selling, general and administrative expenses | |||||||||||||||||||||||||||||||||||
Variable lease cost | 1,585 | 1,272 | 2,845 | 2,325 | Selling, general and administrative expenses | |||||||||||||||||||||||||||||||||||||||
Operating lease cost | 9,710 | 9,354 | 19,760 | 18,459 | ||||||||||||||||||||||||||||||||||||||||
Finance leases: | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of ROU assets | 801 | 761 | 1,402 | 1,429 | Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||
Interest on lease liabilities | 82 | 117 | 173 | 241 | Interest expense | |||||||||||||||||||||||||||||||||||||||
Finance lease cost | 883 | 878 | 1,575 | 1,670 | ||||||||||||||||||||||||||||||||||||||||
Total lease cost | $ | 10,593 | $ | 10,232 | $ | 21,335 | $ | 20,129 |
Six Months Ended June 30, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
Operating cash flows from operating leases | $ | 14,752 | $ | 13,345 | ||||||||||||||||
Financing cash flows from finance leases | $ | 1,355 | $ | 1,319 | ||||||||||||||||
Right-of-use-assets obtained in exchange for lease obligations: | ||||||||||||||||||||
Finance leases | $ | 169 | $ | 203 | ||||||||||||||||
Operating leases | $ | 22,022 | $ | 126,565 |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 20,035 | ||
Financing cash flows from finance leases | $ | 2,002 | ||
Right-of-use-assets obtained in exchange for lease obligations: | ||||
Finance leases | $ | 203 | ||
Operating leases | $ | 136,204 |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Operating Leases | Finance Leases | Operating Leases | Finance Leases | |||||||||||||||||||||||||||||||||||
Weighted average remaining lease term (years) | 5.31 | 2.72 | 5.32 | 3.26 | ||||||||||||||||||||||||||||||||||
Weighted average discount rate | 4.1% | 5.2% | 4.4% | 5.2% |
Operating Leases | Finance Leases | |||
Weighted average remaining lease term (years) | 5.30 | 3.47 | ||
Weighted average discount rate | 4.6% | 5.2% |
Operating Leases | Finance Leases | Total | ||||||||||||||||||||||||||||||
Operating Leases | Finance Leases | Total | ||||||||||||||||||||||||||||||
2019 (excluding the nine months ended September 30, 2019) | $ | 7,989 | $ | 770 | $ | 8,759 | ||||||||||||||||||||||||||
2020 | 30,941 | 2,902 | 33,843 | |||||||||||||||||||||||||||||
2020 (excluding the six months ended June 30, 2020) | 2020 (excluding the six months ended June 30, 2020) | $ | 17,084 | $ | 1,474 | $ | 18,558 | |||||||||||||||||||||||||
2021 | 28,521 | 2,440 | 30,961 | 2021 | 31,955 | 2,436 | 34,391 | |||||||||||||||||||||||||
2022 | 22,564 | 1,492 | 24,056 | 2022 | 28,145 | 1,527 | 29,672 | |||||||||||||||||||||||||
2023 | 16,667 | 970 | 17,637 | 2023 | 22,889 | 950 | 23,839 | |||||||||||||||||||||||||
2024 and thereafter | 24,545 | 150 | 24,695 | |||||||||||||||||||||||||||||
2024 | 2024 | 16,118 | 92 | 16,210 | ||||||||||||||||||||||||||||
2025 and thereafter | 2025 and thereafter | 24,428 | 57 | 24,485 | ||||||||||||||||||||||||||||
Total lease payments | 131,227 | 8,724 | 139,951 | Total lease payments | 140,619 | 6,536 | 147,155 | |||||||||||||||||||||||||
Less amount representing interest | (14,877 | ) | (719 | ) | (15,596 | ) | ||||||||||||||||||||||||||
Less: amount representing interest | Less: amount representing interest | (14,333) | (447) | (14,780) | ||||||||||||||||||||||||||||
Total | $ | 116,350 | $ | 8,005 | $ | 124,355 | Total | $ | 126,286 | $ | 6,089 | $ | 132,375 | |||||||||||||||||||
Current portion of lease liabilities | $ | 26,671 | $ | 2,639 | $ | 29,310 | Current portion of lease liabilities | $ | 28,976 | $ | 2,532 | $ | 31,508 | |||||||||||||||||||
Long-term portion of lease liabilities | $ | 89,679 | $ | 5,366 | $ | 95,045 | Long-term portion of lease liabilities | $ | 97,310 | $ | 3,557 | $ | 100,867 |
Years Ending December 31, | Total | ||
2019 | $ | 29,289 | |
2020 | 26,202 | ||
2021 | 23,796 | ||
2022 | 18,120 | ||
2023 | 12,647 | ||
Thereafter | 19,856 | ||
$ | 129,910 |
Operating Leases | Finance Leases | Total | ||||||||||||||||||
2020 | $ | 32,257 | $ | 2,908 | $ | 35,165 | ||||||||||||||
2021 | 29,816 | 2,445 | 32,261 | |||||||||||||||||
2022 | 24,429 | 1,496 | 25,925 | |||||||||||||||||
2023 | 18,704 | 976 | 19,680 | |||||||||||||||||
2024 | 11,882 | 95 | 11,977 | |||||||||||||||||
2025 and thereafter | 17,730 | 87 | 17,817 | |||||||||||||||||
Total lease payments | 134,818 | 8,007 | 142,825 | |||||||||||||||||
Less: amount representing interest | (14,750) | (623) | (15,373) | |||||||||||||||||
Total | $ | 120,068 | $ | 7,384 | $ | 127,452 | ||||||||||||||
Current portion of lease liabilities | $ | 27,689 | $ | 2,618 | $ | 30,307 | ||||||||||||||
Long-term portion of lease liabilities | $ | 92,379 | $ | 4,766 | $ | 97,145 |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||
Derivative Type | Balance Sheet Location | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||
Interest Rate Swap | Other non-current liabilities | $ | — | $ | 11.6 | $ | — | $ | 6.2 | |||||||||||||||||||||||||||||||||||
Net Investment Hedge | Other non-current assets/liabilities | $ | 1.9 | $ | — | $ | — | $ | 1.4 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Derivative Type | Income Statement Location | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swap | Comprehensive income (loss) | $ | 0.9 | 1 | $ | (2.9) | 1 | $ | (4.0) | 1 | $ | (5.1) | 1 | ||||||||||||||||||||||||||||||||||
Net Investment Hedge | Comprehensive (loss) income | $ | (1.9) | 2 | $ | (0.4) | 2 | $ | 2.5 | 2 | $ | (1.7) | 2 |
Six Months Ended June 30, 2020 | ||||||||
Assets acquired: | ||||||||
Accounts receivable | $ | 4,210 | ||||||
Inventories | 2,228 | |||||||
Property and equipment | 1,810 | |||||||
Other assets | 18 | |||||||
Intangible assets | 372 | |||||||
Total assets acquired | $ | 8,638 |
Nine Months Ended September 30, 2019 | ||||
Assets acquired: | ||||
Cash | $ | 88 | ||
Accounts receivable | 6,095 | |||
Other receivables | 2,012 | |||
Inventories | 2,612 | |||
Prepaid and other current assets | 29 | |||
Property and equipment | 605 | |||
Goodwill | 5,019 | |||
Intangible assets | 8,953 | |||
Total assets acquired | 25,413 | |||
Liabilities assumed: | ||||
Accounts payable | (3,125 | ) | ||
Accrued expenses and other current liabilities | (318 | ) | ||
Total liabilities assumed | (3,443 | ) | ||
Total net assets acquired | $ | 21,970 |
Carrying Value | |||||
Balance at December 31, 2019 | $ | 495,724 | |||
Goodwill acquired | — | ||||
Derecognition of Goodwill(1) | (121) | ||||
Purchase price allocation adjustments from prior periods | 81 | ||||
Impact of foreign currency exchange rates | (1,525) | ||||
Balance at June 30, 2020 | $ | 494,159 |
Carrying Value | |||
Balance at December 31, 2018 | $ | 484,941 | |
Goodwill acquired | 5,019 | ||
Purchase price allocation adjustments from prior periods | (403 | ) | |
Impact of foreign currency exchange rates | 758 | ||
Balance at September 30, 2019 | $ | 490,315 |
September 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tradenames | $ | 15,980 | $ | (12,778 | ) | $ | 3,202 | $ | 15,980 | $ | (10,423 | ) | $ | 5,557 | Tradenames | $ | 15,980 | $ | (15,133) | $ | 847 | $ | 15,980 | $ | (13,563) | $ | 2,417 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer relationships | 259,756 | (145,064 | ) | 114,692 | 250,498 | (112,757 | ) | 137,741 | Customer relationships | 266,805 | (177,876) | 88,929 | 267,781 | (156,337) | 111,444 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets | — | — | — | 3,489 | (911 | ) | 2,578 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 275,736 | $ | (157,842 | ) | $ | 117,894 | $ | 269,967 | $ | (124,091 | ) | $ | 145,876 | $ | 282,785 | $ | (193,009) | $ | 89,776 | $ | 283,761 | $ | (169,900) | $ | 113,861 |
June 30, 2020 | December 31, 2019 | ||||||||||
2018 Term Loan Facility | $ | 443,250 | $ | 445,500 | |||||||
Unamortized deferred financing and issuance costs - term loan | (5,800) | (6,367) | |||||||||
2018 Revolving Credit Facility | 40,000 | 89,000 | |||||||||
Unamortized deferred financing costs - revolving credit facility | (3,164) | (3,677) | |||||||||
$ | 474,286 | $ | 524,456 |
September 30, 2019 | December 31, 2018 | ||||||
2018 Term Loan Facility | $ | 446,625 | $ | 450,000 | |||
Unamortized deferred financing and issuance costs - term loan | (6,650 | ) | (7,500 | ) | |||
2018 Revolving Credit Facility | 134,306 | 146,000 | |||||
Unamortized deferred financing costs - revolving credit facility | (3,933 | ) | (4,673 | ) | |||
$ | 570,348 | $ | 583,827 |
Foreign Currency Translation Gains (Losses) | Unrealized Loss on Derivatives, Net of Taxes | Total | |||||||||||||||
Balance at December 31, 2019 | $ | 848 | $ | (3,312) | $ | (2,464) | |||||||||||
Other comprehensive loss | (3,909) | (1,525) | (5,434) | ||||||||||||||
Balance at June 30, 2020 | $ | (3,061) | $ | (4,837) | $ | (7,898) |
Foreign Currency Translation (Losses) Gains | Unrealized Gain (Loss) on Derivatives, Net of Taxes | Total | |||||||||
Balance at December 31, 2018 | $ | (3,085 | ) | $ | 2,904 | $ | (181 | ) | |||
Other comprehensive income (loss) | 2,317 | (6,436 | ) | (4,119 | ) | ||||||
Balance at September 30, 2019 | $ | (768 | ) | $ | (3,532 | ) | $ | (4,300 | ) |
Fair Value Measurements as of September 30, 2019 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | ||||||||||||
Recurring: | |||||||||||||||
Non-current liabilities | |||||||||||||||
Derivative liability (Note 5) | $ | — | $ | (7,781 | ) | $ | — | $ | (7,781 | ) |
Fair Value Measurements as of June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | ||||||||||||||||||||||||||||||||||||||
Recurring: | |||||||||||||||||||||||||||||||||||||||||
Non-current assets and liabilities | |||||||||||||||||||||||||||||||||||||||||
Derivative assets (Note 6) | $ | — | $ | 1,909 | $ | — | $ | 1,909 | |||||||||||||||||||||||||||||||||
Derivative liabilities (Note 6) | $ | — | $ | (11,634) | $ | — | $ | (11,634) |
Fair Value Measurements as of December 31, 2018 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | ||||||||||||
Recurring: | |||||||||||||||
Non-current assets | |||||||||||||||
Derivative asset (Note 5) | $ | — | $ | 4,344 | $ | — | $ | 4,344 |
Fair Value Measurements as of December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | ||||||||||||||||||||||||||||||||||||||
Recurring: | |||||||||||||||||||||||||||||||||||||||||
Non-current liabilities | |||||||||||||||||||||||||||||||||||||||||
Derivative liabilities (Note 6) | $ | — | $ | (7,649) | $ | — | $ | (7,649) |
June 30, 2020 | December 31, 2019 | ||||||||||
Property, plant and equipment, net | |||||||||||
United States | $ | 135,895 | $ | 135,907 | |||||||
Canada | 13,300 | 14,281 | |||||||||
Total property, plant and equipment, net | $ | 149,195 | $ | 150,188 | |||||||
ROU assets, net | |||||||||||
United States | $ | 111,634 | $ | 104,938 | |||||||
Canada | 14,656 | 15,624 | |||||||||
Total ROU assets, net | $ | 126,290 | $ | 120,562 | |||||||
Goodwill | |||||||||||
United States | $ | 463,169 | $ | 463,208 | |||||||
Canada | 30,990 | 32,516 | |||||||||
Total goodwill | $ | 494,159 | $ | 495,724 | |||||||
Intangibles, net | |||||||||||
United States | $ | 80,452 | $ | 102,563 | |||||||
Canada | 9,324 | 11,298 | |||||||||
Total intangibles, net | $ | 89,776 | $ | 113,861 |
September 30, 2019 | December 31, 2018 | ||||||
Property, plant and equipment, net | |||||||
United States | $ | 138,738 | $ | 137,252 | |||
Canada | 14,556 | 14,389 | |||||
Total property, plant and equipment, net | $ | 153,294 | $ | 151,641 | |||
Right-of-use assets, net | |||||||
United States | $ | 102,841 | $ | — | |||
Canada | 14,296 | — | |||||
Total right-of-use assets, net | $ | 117,137 | $ | — | |||
Goodwill | |||||||
United States | $ | 459,978 | $ | 460,384 | |||
Canada | 30,337 | 24,557 | |||||
Total goodwill | $ | 490,315 | $ | 484,941 | |||
Intangibles, net | |||||||
United States | $ | 105,959 | $ | 141,186 | |||
Canada | 11,935 | 4,690 | |||||
Total intangibles, net | $ | 117,894 | $ | 145,876 |
Three Months Ended September 30, | Change | |||||||||||||||||
2019 | 2018 | $ | % | |||||||||||||||
Wallboard | $ | 207,326 | 36.7 | % | $ | 203,991 | 37.6 | % | $ | 3,335 | 1.6 | % | ||||||
Suspended ceiling systems | 118,873 | 21.0 | % | 104,422 | 19.3 | % | 14,451 | 13.8 | % | |||||||||
Metal framing | 98,817 | 17.5 | % | 98,576 | 18.2 | % | 241 | 0.2 | % | |||||||||
Complementary and other products | 139,890 | 24.8 | % | 135,284 | 24.9 | % | 4,606 | 3.4 | % | |||||||||
Total net sales | $ | 564,906 | 100.0 | % | $ | 542,273 | 100.0 | % | $ | 22,633 | 4.2 | % |
Three Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||||||||||||||
Wallboard | $ | 188,588 | 38.8 | % | $ | 214,059 | 38.2 | % | $ | (25,471) | (11.9) | % | |||||||||||||||||||||||||||||||||||
Suspended ceiling systems | 91,508 | 18.8 | % | 106,176 | 19.0 | % | (14,668) | (13.8) | % | ||||||||||||||||||||||||||||||||||||||
Metal framing | 82,188 | 16.9 | % | 102,425 | 18.3 | % | (20,237) | (19.8) | % | ||||||||||||||||||||||||||||||||||||||
Complementary and other products | 123,806 | 25.5 | % | 137,251 | 24.5 | % | (13,445) | (9.8) | % | ||||||||||||||||||||||||||||||||||||||
Total net sales | $ | 486,090 | 100.0 | % | $ | 559,911 | 100.0 | % | $ | (73,821) | (13.2) | % |
Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||||||||||||||
Wallboard | $ | 390,856 | 38.7 | % | $ | 416,973 | 38.8 | % | $ | (26,117) | (6.3) | % | |||||||||||||||||||||||||||||||||||
Suspended ceiling systems | 190,014 | 18.8 | % | 195,172 | 18.2 | % | (5,158) | (2.6) | % | ||||||||||||||||||||||||||||||||||||||
Metal framing | 175,522 | 17.4 | % | 201,676 | 18.8 | % | (26,154) | (13.0) | % | ||||||||||||||||||||||||||||||||||||||
Complementary and other products | 253,956 | 25.1 | % | 260,962 | 24.2 | % | (7,006) | (2.7) | % | ||||||||||||||||||||||||||||||||||||||
Total net sales | $ | 1,010,348 | 100.0 | % | $ | 1,074,783 | 100.0 | % | $ | (64,435) | (6.0) | % |
Nine Months Ended September 30, | Change | |||||||||||||||||
2019 | 2018 | $ | % | |||||||||||||||
Wallboard | $ | 624,299 | 38.1 | % | $ | 583,242 | 38.2 | % | $ | 41,057 | 7.0 | % | ||||||
Suspended ceiling systems | 314,045 | 19.2 | % | 288,356 | 18.9 | % | $ | 25,689 | 8.9 | % | ||||||||
Metal framing | 300,493 | 18.3 | % | 264,019 | 17.3 | % | $ | 36,474 | 13.8 | % | ||||||||
Complementary and other products | 400,852 | 24.4 | % | 392,536 | 25.7 | % | 8,316 | 2.1 | % | |||||||||
Total net sales | $ | 1,639,689 | 100.0 | % | $ | 1,528,153 | 100.0 | % | $ | 111,536 | 7.3 | % |
June 30, 2020 | December 31, 2019 | ||||||||||
Accrued expenses | $ | 4,098 | $ | 5,652 | |||||||
Accrued interest | 30 | 74 | |||||||||
Accrued other | 15,208 | 12,831 | |||||||||
Total other current liabilities | $ | 19,336 | $ | 18,557 |
September 30, 2019 | December 31, 2018 | ||||||
Accrued expenses | $ | 5,496 | $ | 5,080 | |||
Accrued interest | 152 | 1,315 | |||||
Accrued other | 18,002 | 13,584 | |||||
Total other current liabilities | $ | 23,650 | $ | 19,979 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Weighted average shares used in basic computations | 43,203,894 | 42,987,915 | 43,124,793 | 42,960,124 | ||||||||||||||||||||||||||||||||||
Dilutive effect of stock options and restricted stock units | 128,331 | 257,438 | 315,930 | 104,372 | ||||||||||||||||||||||||||||||||||
Weighted average shares used in diluted computations | 43,332,225 | 43,245,353 | 43,440,723 | 43,064,496 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Weighted average shares used in basic computations | 42,988,829 | 42,894,474 | 42,969,797 | 42,889,430 | ||||||||
Dilutive effect of stock options and restricted stock units | 519,849 | 22,756 | 204,554 | 15,843 | ||||||||
Weighted average shares used in diluted computations | 43,508,678 | 42,917,230 | 43,174,351 | 42,905,273 |
Acquisitions | Effective Date of Acquisition | Branch Locations | # of Branches Acquired | |||||||||||||||||
Insulation Distributors, Inc. | February 3, 2020 | Maryland | 2 |
Three Months Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Statements of operations data | |||||||||||||||||||||||||||||
Net sales | $ | 486,090 | 100.0 | % | $ | 559,911 | 100.0 | % | |||||||||||||||||||||
Cost of goods sold | 340,435 | 70.0 | % | 388,374 | 69.4 | % | |||||||||||||||||||||||
Gross profit | 145,655 | 30.0 | % | 171,537 | 30.6 | % | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Selling, general and administrative expenses | 106,257 | 21.9 | % | 122,735 | 21.9 | % | |||||||||||||||||||||||
Depreciation and amortization | 19,288 | 4.0 | % | 20,351 | 3.6 | % | |||||||||||||||||||||||
Total operating expenses | 125,545 | 25.9 | % | 143,086 | 25.5 | % | |||||||||||||||||||||||
Income from operations | 20,110 | 4.1 | % | 28,451 | 5.1 | % | |||||||||||||||||||||||
Interest expense | (7,153) | (1.4) | % | (8,341) | (1.5) | % | |||||||||||||||||||||||
Other income, net | 547 | 0.1 | % | 44 | — | % | |||||||||||||||||||||||
Income before income taxes | 13,504 | 2.8 | % | 20,154 | 3.6 | % | |||||||||||||||||||||||
Income tax expense | 3,647 | 0.8 | % | 5,433 | 1.0 | % | |||||||||||||||||||||||
Income from continuing operations | 9,857 | 2.0 | % | 14,721 | 2.6 | % | |||||||||||||||||||||||
Loss on sale of discontinued operations, net of tax | — | — | % | (44) | — | % | |||||||||||||||||||||||
Net income | $ | 9,857 | 2.0 | % | $ | 14,677 | 2.6 | % | |||||||||||||||||||||
Three Months Ended September 30, | |||||||||||
2019 | 2018 | ||||||||||
(dollars in thousands) | |||||||||||
Statements of operations data | |||||||||||
Net sales | $ | 564,906 | 100.0 | % | $ | 542,273 | 100.0 | % | |||
Cost of goods sold | 393,111 | 69.6 | % | 388,236 | 71.6 | % | |||||
Gross profit | 171,795 | 30.4 | % | 154,037 | 28.4 | % | |||||
Operating expenses: | |||||||||||
Selling, general and administrative expenses | 123,907 | 21.9 | % | 113,279 | 20.9 | % | |||||
Depreciation and amortization | 20,218 | 3.6 | % | 19,771 | 12.8 | % | |||||
Total operating expenses | 144,125 | 25.5 | % | 133,050 | 24.5 | % | |||||
Income from operations | 27,670 | 4.9 | % | 20,987 | 3.9 | % | |||||
Loss on extinguishment debt | — | — | % | (58,475 | ) | (10.8 | )% | ||||
Interest expense | (9,118 | ) | (1.6 | )% | (12,576 | ) | (2.3 | )% | |||
Other expense, net | (89 | ) | — | % | (8 | ) | — | % | |||
Income (loss) before income taxes | 18,463 | 3.3 | % | (50,072 | ) | 1.3 | % | ||||
Income tax expense (benefit) | 5,754 | 1.0 | % | (12,519 | ) | (8.1 | )% | ||||
Income (loss) from continuing operations | 12,709 | 2.3 | % | (37,553 | ) | (6.9 | )% | ||||
Income from discontinued operations, net of tax | — | — | % | 2,772 | 0.5 | % | |||||
Loss on sale of discontinued operations, net of tax | (11 | ) | — | % | — | — | % | ||||
Net income (loss) | $ | 12,698 | 2.3 | % | $ | (34,781 | ) | (6.4 | )% |
Three Months Ended September 30, | Change | Three Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wallboard | $ | 207,326 | 36.7 | % | $ | 203,991 | 37.6 | % | $ | 3,335 | 1.6 | % | Wallboard | $ | 188,588 | 38.8 | % | $ | 214,059 | 38.2 | % | $ | (25,471) | (11.9) | % | ||||||||||||||||||||||||||||||||||||||||
Suspended ceiling systems | 118,873 | 21.0 | % | 104,422 | 19.3 | % | 14,451 | 13.8 | % | Suspended ceiling systems | 91,508 | 18.8 | % | 106,176 | 19.0 | % | (14,668) | (13.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Metal framing | 98,817 | 17.5 | % | 98,576 | 18.2 | % | 241 | 0.2 | % | Metal framing | 82,188 | 16.9 | % | 102,425 | 18.3 | % | (20,237) | (19.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Complementary and other products | 139,890 | 24.8 | % | 135,284 | 24.9 | % | 4,606 | 3.4 | % | Complementary and other products | 123,806 | 25.5 | % | 137,251 | 24.5 | % | (13,445) | (9.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Total net sales | $ | 564,906 | 100.0 | % | $ | 542,273 | 100.0 | % | $ | 22,633 | 4.2 | % | Total net sales | $ | 486,090 | 100.0 | % | $ | 559,911 | 100.0 | % | $ | (73,821) | (13.2) | % | ||||||||||||||||||||||||||||||||||||||||
Total gross profit | $ | 171,795 | $ | 154,037 | $ | 17,758 | 11.5 | % | Total gross profit | $ | 145,655 | $ | 171,537 | $ | (25,882) | (15.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Total gross margin | 30.4 | % | 28.4 | % | 2.0 | % | Total gross margin | 30.0 | % | 30.6 | % | (0.6) | % |
Three Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ | % | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Base business (1) | $ | 457,811 | $ | 535,185 | $ | (77,374) | (14.5) | % | ||||||||||||||||||||||||||||||||||||
Acquired and combined (2) | 28,279 | 24,726 | 3,553 | 14.4 | % | |||||||||||||||||||||||||||||||||||||||
Net sales | $ | 486,090 | $ | 559,911 | $ | (73,821) | (13.2) | % | ||||||||||||||||||||||||||||||||||||
(1) Represents net sales from branches that were owned by us since January 1, 2019, and branches that were opened by us during such period. | ||||||||||||||||||||||||||||||||||||||||||||
(2) Represents branches acquired and combined after January 1, 2019, primarily as a result of our strategic combination of branches. |
Three Months Ended September 30, | Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Base business (1) | $ | 500,834 | $ | 495,613 | $ | 5,221 | 1.1 | % | ||||||
Acquired and combined (2) | 64,072 | 46,660 | 17,412 | 37.3 | % | |||||||||
Net sales | $ | 564,906 | $ | 542,273 | $ | 22,633 | 4.2 | % | ||||||
(1) Represents net sales from branches that were owned by us since January 1, 2018 and branches that were opened by us during such period. | ||||||||||||||
(2) Represents branches acquired and combined after January 1, 2018, primarily as a result of our strategic combination of branches. |
Three Months Ended June 30, 2019 | Base Business Net Sales Change | Acquired and Combined Net Sales Change | Three Months Ended June 30, 2020 | Total Net Sales % Change | Base Business Net Sales % Change(1) | Acquired and Combined Net Sales % Change(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wallboard | $ | 214,059 | $ | (27,410) | $ | 1,939 | $ | 188,588 | (11.9) | % | (13.3) | % | 23.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Suspended ceiling systems | 106,176 | (15,112) | 444 | 91,508 | (13.8) | % | (15.0) | % | 8.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Metal framing | 102,425 | (20,272) | 35 | 82,188 | (19.8) | % | (20.6) | % | 0.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Complementary and other products | 137,251 | (14,580) | 1,135 | 123,806 | (9.8) | % | (11.2) | % | 16.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 559,911 | $ | (77,374) | $ | 3,553 | $ | 486,090 | (13.2) | % | (14.5) | % | 14.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average daily net sales(3) | $ | 8,749 | $ | (1,209) | $ | 55 | $ | 7,595 | (13.2) | % | (14.5) | % | 14.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Represents base business net sales change as a percentage of base business net sales for the three months ended June 30, 2019. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Represents acquired and combined as a percentage of acquired and combined net sales for the three months ended June 30, 2019. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) The number of business days for the three months ended June 30, 2020 and 2019 was 64 for both periods. |
Three Months Ended September 30, 2018 | Base Business Net Sales Change | Acquired and Combined Net Sales Change | Three Months Ended September 30, 2019 | Total Net Sales % Change | Base Business Net Sales % Change(1) | Acquired and Combined Net Sales % Change(2) | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Wallboard | $ | 203,991 | $ | (3,872 | ) | $ | 7,207 | $ | 207,326 | 1.6 | % | (2.0 | )% | 57.1 | % | ||||||||
Suspended ceiling systems | 104,422 | 9,654 | 4,797 | 118,873 | 13.8 | % | 11.0 | % | 28.6 | % | |||||||||||||
Metal framing | 98,576 | (3,032 | ) | 3,273 | 98,817 | 0.2 | % | (3.3 | )% | 51.2 | % | ||||||||||||
Complementary and other products | 135,284 | 2,471 | 2,135 | 139,890 | 3.4 | % | 2.0 | % | 19.6 | % | |||||||||||||
Net sales | $ | 542,273 | $ | 5,221 | $ | 17,412 | $ | 564,906 | 4.2 | % | 1.1 | % | 37.3 | % | |||||||||
Average daily net sales(3) | $ | 8,608 | $ | 83 | $ | 276 | $ | 8,967 | 4.2 | % | 1.1 | % | 37.3 | % | |||||||||
(1) Represents base business net sales change as a percentage of base business net sales for the three months ended September 30, 2018. | |||||||||||||||||||||||
(2) Represents acquired and combined net sales as a percentage of acquired and combined net sales for the three months ended September 30, 2018. | |||||||||||||||||||||||
(3) The number of business days for the three months ended September 30, 2019 and 2018, were 63 and 63, respectively. |
Six Months Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Statements of operations data | |||||||||||||||||||||||||||||
Net sales | $ | 1,010,348 | 100.0 | % | $ | 1,074,783 | 100.0 | % | |||||||||||||||||||||
Cost of goods sold | 702,535 | 69.5 | % | 750,286 | 69.8 | % | |||||||||||||||||||||||
Gross profit | 307,813 | 30.5 | % | 324,497 | 30.2 | % | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Selling, general and administrative expenses | 229,354 | 22.7 | % | 239,965 | 22.3 | % | |||||||||||||||||||||||
Depreciation and amortization | 38,507 | 3.8 | % | 40,693 | 3.8 | % | |||||||||||||||||||||||
Total operating expenses | 267,861 | 26.5 | % | 280,658 | 26.1 | % | |||||||||||||||||||||||
Income from operations | 39,952 | 4.0 | % | 43,839 | 4.1 | % | |||||||||||||||||||||||
Interest expense | (14,886) | (1.5) | % | (16,897) | (1.6) | % | |||||||||||||||||||||||
Gain on legal settlement | 8,556 | 0.8 | % | — | — | ||||||||||||||||||||||||
Other (expense) income, net | (475) | — | % | 85 | — | % | |||||||||||||||||||||||
Income before income taxes | 33,147 | 3.3 | % | 27,027 | 2.5 | % | |||||||||||||||||||||||
Income tax expense | 8,914 | 0.9 | % | 7,478 | 0.7 | % | |||||||||||||||||||||||
Income from continuing operations | 24,233 | 2.4 | % | 19,549 | 1.8 | % | |||||||||||||||||||||||
Loss on sale of discontinued operations, net of tax | — | — | % | (1,390) | (0.1) | % | |||||||||||||||||||||||
Net income | $ | 24,233 | 2.4 | % | $ | 18,159 | 1.7 | % |
Nine Months Ended September 30, | |||||||||||
2019 | 2018 | ||||||||||
(dollars in thousands) | |||||||||||
Statements of operations data | |||||||||||
Net sales | $ | 1,639,689 | 100.0 | % | $ | 1,528,153 | 100.0 | % | |||
Cost of goods sold | 1,143,397 | 69.7 | % | 1,093,412 | 71.6 | % | |||||
Gross profit | 496,292 | 30.3 | % | 434,741 | 28.4 | % | |||||
Operating expenses: | |||||||||||
Selling, general and administrative expenses | 363,872 | 22.2 | % | 328,088 | 21.5 | % | |||||
Depreciation and amortization | 60,911 | 3.7 | % | 56,922 | 13.1 | % | |||||
Total operating expenses | 424,783 | 25.9 | % | 385,010 | 25.2 | % | |||||
Income from operations | 71,509 | 4.4 | % | 49,731 | 3.3 | % | |||||
Loss on extinguishment of debt | — | — | % | (58,475 | ) | (3.8 | )% | ||||
Interest expense | (26,015 | ) | (1.6 | )% | (43,028 | ) | (2.8 | )% | |||
Other (expense) income, net | (4 | ) | — | % | 126 | — | % | ||||
Income (loss) before income taxes | 45,490 | 2.8 | % | (51,646 | ) | 1.3 | % | ||||
Income tax expense (benefit) | 13,232 | 0.8 | % | (13,299 | ) | (3.1 | )% | ||||
Income (loss) from continuing operations | 32,258 | 2.0 | % | (38,347 | ) | (2.5 | )% | ||||
Income from discontinued operations, net of tax | — | — | % | 7,913 | 0.5 | % | |||||
Loss on sale of discontinued operations, net of tax | (1,401 | ) | (0.1 | )% | — | — | % | ||||
Net income (loss) | $ | 30,857 | 1.9 | % | $ | (30,434 | ) | (2.0 | )% |
Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Wallboard | $ | 390,856 | 38.7 | % | $ | 416,973 | 38.8 | % | $ | (26,117) | (6.3) | % | |||||||||||||||||||||||||||||||||||
Suspended ceiling systems | 190,014 | 18.8 | % | 195,172 | 18.2 | % | (5,158) | (2.6) | % | ||||||||||||||||||||||||||||||||||||||
Metal framing | 175,522 | 17.4 | % | 201,676 | 18.8 | % | (26,154) | (13.0) | % | ||||||||||||||||||||||||||||||||||||||
Complementary and other products | 253,956 | 25.1 | % | 260,962 | 24.2 | % | (7,006) | (2.7) | % | ||||||||||||||||||||||||||||||||||||||
Total net sales | $ | 1,010,348 | 100.0 | % | $ | 1,074,783 | 100.0 | % | $ | (64,435) | (6.0) | % | |||||||||||||||||||||||||||||||||||
Total gross profit | $ | 307,813 | $ | 324,497 | $ | (16,684) | (5.1) | % | |||||||||||||||||||||||||||||||||||||||
Total gross margin | 30.5 | % | 30.2 | % | 0.3 | % |
Nine Months Ended September 30, | Change | |||||||||||||||||
2019 | 2018 | $ | % | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Wallboard | $ | 624,299 | 38.1 | % | $ | 583,242 | 38.2 | % | $ | 41,057 | 7.0 | % | ||||||
Suspended ceiling systems | 314,045 | 19.2 | % | 288,356 | 18.9 | % | 25,689 | 8.9 | % | |||||||||
Metal framing | 300,493 | 18.3 | % | 264,019 | 17.3 | % | 36,474 | 13.8 | % | |||||||||
Complementary and other products | 400,852 | 24.4 | % | 392,536 | 25.7 | % | 8,316 | 2.1 | % | |||||||||
Total net sales | $ | 1,639,689 | 100.0 | % | $ | 1,528,153 | 100.0 | % | $ | 111,536 | 7.3 | % | ||||||
Total gross profit | $ | 496,292 | $ | 434,741 | $ | 61,551 | 14.2 | % | ||||||||||
Total gross margin | 30.3 | % | 28.4 | % | 1.9 | % |
Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ | % | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Base business (1) | $ | 951,189 | $ | 1,030,103 | $ | (78,914) | (7.7) | % | ||||||||||||||||||||||||||||||||||||
Acquired and combined (2) | 59,159 | 44,680 | 14,479 | 32.4 | % | |||||||||||||||||||||||||||||||||||||||
Net sales | $ | 1,010,348 | $ | 1,074,783 | $ | (64,435) | (6.0) | % | ||||||||||||||||||||||||||||||||||||
(1) Represents net sales from branches that were owned by us since January 1, 2019, and branches that were opened by us during such period. | ||||||||||||||||||||||||||||||||||||||||||||
(2) Represents branches acquired and combined after January 1, 2019, primarily as a result of our strategic combination of branches. |
Nine Months Ended September 30, | Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Base business (1) | $ | 1,460,741 | $ | 1,409,632 | $ | 51,109 | 3.6 | % | ||||||
Acquired and combined (2) | 178,948 | 118,521 | 60,427 | 51.0 | % | |||||||||
Net sales | $ | 1,639,689 | $ | 1,528,153 | $ | 111,536 | 7.3 | % | ||||||
(1) Represents net sales from branches that were owned by us since January 1, 2018 and branches that were opened by us during such period. | ||||||||||||||
(2) Represents branches acquired and combined after January 1, 2018, primarily as a result of our strategic combination of branches. |
Nine Months Ended September 30, 2018 | Base Business Net Sales Change | Acquired and Combined Net Sales Change | Nine Months Ended September 30, 2019 | Total Net Sales % Change | Base Business Net Sales % Change(1) | Acquired and Combined Net Sales % Change(2) | Six Months Ended June 30, 2019 | Base Business Net Sales Change | Acquired and Combined Net Sales Change | Six Months Ended June 30, 2020 | Total Net Sales % Change | Base Business Net Sales % Change(1) | Acquired and Combined Net Sales % Change(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wallboard | $ | 583,242 | $ | 9,257 | $ | 31,800 | $ | 624,299 | 7.0 | % | 1.7 | % | 112.0 | % | Wallboard | $ | 416,973 | $ | (30,383) | $ | 4,266 | $ | 390,856 | (6.3) | % | (7.6) | % | 26.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Suspended ceiling systems | 288,356 | 12,113 | 13,576 | 314,045 | 8.9 | % | 4.9 | % | 34.9 | % | Suspended ceiling systems | 195,172 | (10,995) | 5,837 | 190,014 | (2.6) | % | (5.9) | % | 73.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Metal framing | 264,019 | 19,590 | 16,884 | 300,493 | 13.8 | % | 7.7 | % | 151.3 | % | Metal framing | 201,676 | (26,888) | 734 | 175,522 | (13.0) | % | (13.9) | % | 9.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Complementary and other products | 392,536 | 10,149 | (1,833 | ) | 400,852 | 2.1 | % | 2.9 | % | (4.6 | )% | Complementary and other products | 260,962 | (10,648) | 3,642 | 253,956 | (2.7) | % | (4.3) | % | 28.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 1,528,153 | $ | 51,109 | $ | 60,427 | $ | 1,639,689 | 7.3 | % | 3.6 | % | 51.0 | % | Net sales | $ | 1,074,783 | $ | (78,914) | $ | 14,479 | $ | 1,010,348 | (6.0) | % | (7.7) | % | 32.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average daily net sales(3) | $ | 8,001 | $ | 308 | $ | 321 | $ | 8,630 | 7.9 | % | 4.2 | % | 51.8 | % | Average daily net sales(3) | $ | 8,463 | $ | (680) | $ | 110 | $ | 7,893 | (6.7) | % | (8.4) | % | 31.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Represents base business net sales change as a percentage of base business net sales for the nine months ended September 30, 2018. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Represents acquired and combined net sales as a percentage of acquired and combined net sales for the nine months ended September 30, 2018. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) The number of business days for the nine months ended September 30, 2019 and 2018, were 190 and 191, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Represents base business net sales change as a percentage of base business net sales for the six months ended June 30, 2019. | (1) Represents base business net sales change as a percentage of base business net sales for the six months ended June 30, 2019. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Represents acquired and combined as a percentage of acquired and combined net sales for the six months ended June 30, 2019. | (2) Represents acquired and combined as a percentage of acquired and combined net sales for the six months ended June 30, 2019. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) The numbers of business days for the six months ended June 30, 2020 and 2019, were 128 and 127, respectively. | (3) The numbers of business days for the six months ended June 30, 2020 and 2019, were 128 and 127, respectively. |
(dollars in thousands) | Four Quarters Ended June 30, 2020 | |||||||||||||
Pro Forma Adjusted EBITDA (1) | $ | 173,458 | ||||||||||||
Consolidated Total Debt (2) | $ | 489,339 | ||||||||||||
Total Net Leverage Ratio | 2.82x | |||||||||||||
Cash | 31,122 | |||||||||||||
Consolidated Total Debt (2) less Cash, or Net Debt | $ | 458,217 | ||||||||||||
Net Debt Leverage Ratio | 2.64x | |||||||||||||
(1) "Pro Forma Adjusted EBITDA" is used herein instead of "Consolidated EBITDA" to avoid confusion but is calculated in the same manner as Consolidated EBITDA under our 2018 Revolving Credit Facility. The following table presents a reconciliation of Adjusted EBITDA to Pro Forma Adjusted EBITDA for the four quarters ended June 30, 2020: |
(dollars in thousands) | Four Quarters Ended September 30, 2019 | |||
Pro Forma Adjusted EBITDA (1) | $ | 181,942 | ||
Consolidated Total Debt (2) | $ | 588,936 | ||
Total Net Leverage Ratio | 3.24x | |||
Cash | $ | 22,668 | ||
Consolidated Total Debt (2) less Cash ("Net Debt") | $ | 566,268 | ||
Net Debt Leverage Ratio | 3.11x | |||
(1) "Pro Forma Adjusted EBITDA" is used herein instead of "Consolidated EBITDA" to avoid confusion but is calculated in the same manner as Consolidated EBITDA under the 2018 Revolving Credit Facility. The following table presents a reconciliation of Adjusted EBITDA to Pro Forma Adjusted EBITDA for the four quarters ended September 30, 2019: |
Four Quarters Ended September 30, 2019 | ||||
(in thousands) | ||||
Adjusted EBITDA (a) | $ | 179,048 | ||
Pro forma adjustment (b) | 2,894 | |||
Pro Forma Adjusted EBITDA | $ | 181,942 | ||
(a) See the section titled "Non-GAAP Financial Information" for a reconciliation of net income (loss) from continuing operations to Adjusted EBITDA. (b) The pro forma adjustment gives effect to all acquisitions consummated in the four quarters ended September 30, 2019, as though they had been consummated on the first day of the first quarter for the four quarters ended September 30, 2019. Other adjustments are also made to conform to the terms of the 2018 Revolving Credit Facility. (2) The reconciliation of total debt on the balance sheet to Consolidated Total Debt is as follows: |
Four Quarters Ended June 30, 2020 | ||||||||||||||
(in thousands) | ||||||||||||||
Adjusted EBITDA (a) | $ | 171,568 | ||||||||||||
Pro forma adjustment (b) | 1,890 | |||||||||||||
Pro Forma Adjusted EBITDA | $ | 173,458 | ||||||||||||
(a) See the section titled "Non-GAAP Financial Information" for a reconciliation of net income from continuing operations to Adjusted EBITDA. (b) The pro forma adjustment gives effect to all acquisitions consummated in the four quarters ended June 30, 2020, as though they had been consummated on the first day of the first quarter for the four quarters ended June 30, 2020. Other adjustments are also made to conform to the terms of our 2018 Revolving Credit Facility. (2) The reconciliation of total debt on the balance sheet to Consolidated Total Debt is as follows: |
As of June 30, 2020 | ||||||||
(in thousands) | ||||||||
Total gross debt | $ | 483,250 | ||||||
Finance lease liabilities | 6,089 | |||||||
Consolidated Total Debt | $ | 489,339 |
As of September 30, 2019 | ||||
(in thousands) | ||||
Total gross debt | $ | 580,931 | ||
Finance leases | 8,005 | |||
Consolidated Total Debt | $ | 588,936 |
Six Months Ended June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net cash provided by operating activities | $ | 115,302 | $ | 53,204 | |||||||||||||
Net cash used in investing activities | $ | (20,955) | $ | (30,816) | |||||||||||||
Net cash used in financing activities | $ | (80,825) | $ | (30,125) |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Net cash provided by (used in) operating activities | $ | 87,253 | $ | (873 | ) | ||
Net cash used in investing activities | $ | (44,758 | ) | $ | (96,771 | ) | |
Net cash (used in) provided by financing activities | $ | (33,923 | ) | $ | 99,372 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(dollars in thousands) | |||||||||||||||
Net income (loss) from continuing operations | $ | 12,709 | $ | (37,553 | ) | $ | 32,258 | $ | (38,347 | ) | |||||
Loss on extinguishment of debt | — | 58,475 | — | 58,475 | |||||||||||
Interest expense, net | 9,012 | 12,544 | 25,999 | 42,957 | |||||||||||
Income tax expense (benefit) | 5,754 | (12,519 | ) | 13,232 | (13,299 | ) | |||||||||
Depreciation and amortization | 20,218 | 19,771 | 60,911 | 56,922 | |||||||||||
Unrealized loss (gain) on derivative financial instruments | — | 78 | — | (56 | ) | ||||||||||
Offering and public company readiness expenses(a) | 378 | — | 378 | 89 | |||||||||||
Stock-based compensation | 1,117 | 633 | 3,056 | 1,512 | |||||||||||
Non-cash purchase accounting effects(b) | — | 6 | — | 413 | |||||||||||
Loss (gain) on disposal of property and equipment | 13 | 339 | (54 | ) | 614 | ||||||||||
Transaction costs(c) | 819 | 1,967 | 2,046 | 4,670 | |||||||||||
Adjusted EBITDA | $ | 50,020 | $ | 43,741 | $ | 137,826 | $ | 113,950 | |||||||
Adjusted EBITDA margin(d) | 8.9 | % | 8.1 | % | 8.4 | % | 7.5 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Net income from continuing operations | $ | 9,857 | $ | 14,721 | 24,233 | 19,549 | |||||||||||||||||||||||||||||
Interest expense, net | 7,127 | 8,402 | 14,818 | 16,987 | |||||||||||||||||||||||||||||||
Income tax expense | 3,647 | 5,433 | 8,914 | 7,478 | |||||||||||||||||||||||||||||||
Depreciation and amortization | 19,288 | 20,351 | 38,507 | 40,693 | |||||||||||||||||||||||||||||||
Stock-based compensation | 1,435 | 1,110 | 2,828 | 1,939 | |||||||||||||||||||||||||||||||
Loss (gain) on disposal or sale of assets | 657 | (258) | 708 | (67) | |||||||||||||||||||||||||||||||
Gain on legal settlement | — | — | (8,556) | — | |||||||||||||||||||||||||||||||
Transaction costs(a) | 245 | 582 | 1,084 | 1,227 | |||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 42,256 | $ | 50,341 | $ | 82,536 | $ | 87,806 | |||||||||||||||||||||||||||
Adjusted EBITDA margin(b) | 8.7 | % | 9.0 | % | 8.2 | % | 8.2 | % |
Exhibit Number | Description | |||||||||||||||||||||||||
31.1* | ||||||||||||||||||||||||||
31.2* | ||||||||||||||||||||||||||
101 INS | XBRL Instance Document. | |||||||||||||||||||||||||
101 SCH | XBRL Taxonomy Extension Schema Document. | |||||||||||||||||||||||||
101 CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||||||||||||||||||||
101 DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||||||||||||||||||||
101 LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||||||||||||||||||||
101 PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
* | Filed herewith. | ||||
# | Management contract or compensatory plan, contract or arrangement. |
FOUNDATION BUILDING MATERIALS, INC. |
Date: August 4, 2020 | BY: | /s/ John Gorey | ||||||
John Gorey | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) | ||||||||
/s/ | ||||||||
Chief Accounting Officer | ||||||||
(Principal Accounting Officer) | ||||||||