Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BLDR | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | Builders FirstSource, Inc. | |
Entity Central Index Key | 0001316835 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common stock | |
Entity Common Stock, Shares Outstanding | 115,528,606 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 0-51357 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 52-2084569 | |
Entity Address, Address Line One | 2001 Bryan Street | |
Entity Address, Address Line Two | SuiteĀ 1600 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 214 | |
Local Phone Number | 880-3500 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Sales | $ 1,904,523 | $ 2,089,888 | $ 3,535,823 | $ 3,790,324 |
Cost of sales | 1,387,367 | 1,593,560 | 2,576,692 | 2,882,944 |
Gross margin | 517,156 | 496,328 | 959,131 | 907,380 |
Selling, general and administrative expenses | 401,511 | 391,769 | 771,595 | 750,677 |
Income from operations | 115,645 | 104,559 | 187,536 | 156,703 |
Interest expense, net | 29,382 | 28,957 | 54,283 | 55,699 |
Income before income taxes | 86,263 | 75,602 | 133,253 | 101,004 |
Income tax expense | 19,659 | 18,980 | 30,941 | 21,162 |
Net income | 66,604 | 56,622 | 102,312 | 79,842 |
Comprehensive income | $ 66,604 | $ 56,622 | $ 102,312 | $ 79,842 |
Net income per share: | ||||
Basic | $ 0.58 | $ 0.49 | $ 0.89 | $ 0.70 |
Diluted | $ 0.57 | $ 0.49 | $ 0.88 | $ 0.68 |
Weighted average common shares: | ||||
Basic | 115,757 | 114,636 | 115,592 | 114,365 |
Diluted | 116,919 | 116,693 | 116,726 | 116,695 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 10,552 | $ 10,127 |
Accounts receivable, less allowances of $12,772 and $13,054 at June 30, 2019 and December 31, 2018, respectively | 715,405 | 654,170 |
Other receivables | 54,257 | 68,637 |
Inventories, net | 617,527 | 596,896 |
Other current assets | 36,217 | 43,921 |
Total current assets | 1,433,958 | 1,373,751 |
Property, plant and equipment, net | 675,310 | 670,075 |
Operating lease right-of-use assets, net | 273,971 | |
Goodwill | 740,411 | 740,411 |
Intangible assets, net | 95,417 | 103,154 |
Deferred income taxes | 7,343 | 22,766 |
Other assets, net | 23,561 | 22,152 |
Total assets | 3,249,971 | 2,932,309 |
Current liabilities: | ||
Accounts payable | 516,897 | 423,168 |
Accrued liabilities | 258,096 | 292,526 |
Current portion of operating lease liabilities | 60,576 | |
Current maturities of long-term debt | 12,650 | 15,565 |
Total current liabilities | 848,219 | 731,259 |
Noncurrent portion of operating lease liabilities | 218,001 | |
Long-term debt, net of current maturities, debt discount, and debt issuance costs | 1,420,462 | 1,545,729 |
Deferred income taxes | 5,967 | |
Other long-term liabilities | 53,191 | 58,983 |
Total liabilities | 2,545,840 | 2,335,971 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 10,000 shares authorized; zero shares issued and outstanding | ||
Common stock, $0.01 par value, 200,000 shares authorized; 115,880 and 115,078 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 1,159 | 1,151 |
Additional paid-in capital | 565,694 | 560,221 |
Retained earnings | 137,278 | 34,966 |
Total stockholders' equity | 704,131 | 596,338 |
Total liabilities and stockholders' equity | $ 3,249,971 | $ 2,932,309 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowances on trade accounts receivable | $ 12,772 | $ 13,054 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 115,880,000 | 115,078,000 |
Common stock, shares outstanding | 115,880,000 | 115,078,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 102,312 | $ 79,842 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 47,390 | 47,587 |
Amortization of debt issuance costs and debt discount | 2,132 | 2,308 |
Loss on extinguishment of debt, net | 1,498 | |
Deferred income taxes | 21,390 | 18,863 |
Stock compensation expense | 6,038 | 6,428 |
Net gain on sale of assets and asset impairments | (1,023) | (326) |
Changes in assets and liabilities: | ||
Receivables | (47,113) | (177,765) |
Inventories | (20,631) | (189,925) |
Other current assets | 7,271 | (5,693) |
Other assets and liabilities | 1,057 | 2,498 |
Accounts payable | 90,050 | 67,129 |
Accrued liabilities | (31,586) | (19,915) |
Net cash provided by (used in) operating activities | 178,785 | (168,969) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (45,392) | (49,948) |
Proceeds from sale of property, plant and equipment | 4,620 | 1,075 |
Net cash used in investing activities | (40,772) | (48,873) |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 594,000 | 904,000 |
Repayments under revolving credit facility | (700,000) | (721,000) |
Proceeds from issuance of notes | 400,000 | |
Repayments of long-term debt and other loans | (423,743) | (6,852) |
Payments of loan costs | (7,278) | |
Exercise of stock options | 1,883 | 2,212 |
Repurchase of common stock | (2,450) | (4,855) |
Net cash provided by (used in) financing activities | (137,588) | 173,505 |
Net change in cash and cash equivalents | 425 | (44,337) |
Cash and cash equivalents at beginning of the period | 10,127 | 57,533 |
Cash and cash equivalents at end of the period | $ 10,552 | $ 13,196 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Cash Flows [Abstract] | ||
Purchases of property, plant and equipment included in accounts payable | $ 4 | $ 3.7 |
Equipment purchased and financed through finance/capital lease obligations | $ 7 | $ 6.8 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid in Capital | Retained Earnings (Accumulated Deficit) |
Balance at Dec. 31, 2017 | $ 376,209 | $ 1,136 | $ 546,766 | $ (171,693) |
Balance, shares at Dec. 31, 2017 | 113,572 | |||
Vesting of restricted stock units | $ 7 | (7) | ||
Vesting of restricted stock units, shares | 766 | |||
Stock compensation expense | 2,890 | 2,890 | ||
Exercise of stock options | 2,041 | $ 5 | 2,036 | |
Exercise of stock options, shares | 517 | |||
Repurchase of common stock | (4,855) | $ (2) | (4,853) | |
Repurchase of common stock, shares | (236) | |||
Cumulative effect adjustment | 1,468 | 1,468 | ||
Net income | 23,220 | 23,220 | ||
Balance at Mar. 31, 2018 | 400,973 | $ 1,146 | 546,832 | (147,005) |
Balance, shares at Mar. 31, 2018 | 114,619 | |||
Balance at Dec. 31, 2017 | 376,209 | $ 1,136 | 546,766 | (171,693) |
Balance, shares at Dec. 31, 2017 | 113,572 | |||
Net income | 79,842 | |||
Balance at Jun. 30, 2018 | 461,471 | $ 1,147 | 550,707 | (90,383) |
Balance, shares at Jun. 30, 2018 | 114,671 | |||
Balance at Mar. 31, 2018 | 400,973 | $ 1,146 | 546,832 | (147,005) |
Balance, shares at Mar. 31, 2018 | 114,619 | |||
Vesting of restricted stock units | $ 1 | (1) | ||
Vesting of restricted stock units, shares | 6 | |||
Stock compensation expense | 3,538 | 3,538 | ||
Exercise of stock options | 338 | 338 | ||
Exercise of stock options, shares | 46 | |||
Net income | 56,622 | 56,622 | ||
Balance at Jun. 30, 2018 | 461,471 | $ 1,147 | 550,707 | (90,383) |
Balance, shares at Jun. 30, 2018 | 114,671 | |||
Balance at Dec. 31, 2018 | $ 596,338 | $ 1,151 | 560,221 | 34,966 |
Balance, shares at Dec. 31, 2018 | 115,078 | 115,078 | ||
Vesting of restricted stock units | $ 7 | (7) | ||
Vesting of restricted stock units, shares | 662 | |||
Stock compensation expense | $ 2,659 | 2,659 | ||
Exercise of stock options | 216 | 216 | ||
Exercise of stock options, shares | 59 | |||
Repurchase of common stock | (2,450) | $ (2) | (2,448) | |
Repurchase of common stock, shares | (196) | |||
Net income | 35,708 | 35,708 | ||
Balance at Mar. 31, 2019 | 632,471 | $ 1,156 | 560,641 | 70,674 |
Balance, shares at Mar. 31, 2019 | 115,603 | |||
Balance at Dec. 31, 2018 | $ 596,338 | $ 1,151 | 560,221 | 34,966 |
Balance, shares at Dec. 31, 2018 | 115,078 | 115,078 | ||
Net income | $ 102,312 | |||
Balance at Jun. 30, 2019 | $ 704,131 | $ 1,159 | 565,694 | 137,278 |
Balance, shares at Jun. 30, 2019 | 115,880 | 115,880 | ||
Balance at Mar. 31, 2019 | $ 632,471 | $ 1,156 | 560,641 | 70,674 |
Balance, shares at Mar. 31, 2019 | 115,603 | |||
Vesting of restricted stock units, shares | 11 | |||
Stock compensation expense | 3,379 | 3,379 | ||
Exercise of stock options | 1,677 | $ 3 | 1,674 | |
Exercise of stock options, shares | 266 | |||
Net income | 66,604 | 66,604 | ||
Balance at Jun. 30, 2019 | $ 704,131 | $ 1,159 | $ 565,694 | $ 137,278 |
Balance, shares at Jun. 30, 2019 | 115,880 | 115,880 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Builders FirstSource, Inc., a Delaware corporation formed in 1998, is a leading supplier and manufacturer of building materials, manufactured components and construction services to professional homebuilders, sub-contractors, remodelers and consumers. The Company operates 400 locations in 39 states across the United States. In this quarterly report, references to the āCompany,ā āwe,ā āour,ā āoursā or āusā refer to Builders FirstSource, Inc. and its consolidated subsidiaries unless otherwise stated or the context otherwise requires. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all recurring adjustments and normal accruals necessary for a fair statement of the Companyās financial position, results of operations and cash flows for the dates and periods presented. Results for interim periods are not necessarily indicative of the results to be expected during the remainder of the current year or for any future period. Intercompany transactions are eliminated in consolidation. The condensed consolidated balance sheet as of December 31, 2018 is derived from the audited consolidated financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. This condensed consolidated balance sheet as of December 31, 2018 and the unaudited condensed consolidated financial statements included herein should be read in conjunction with the more detailed audited consolidated financial statements for the year ended December 31, 2018 included in our most recent annual report on Form 10-K. Accounting policies used in the preparation of these unaudited condensed consolidated financial statements are consistent with the accounting policies described in the Notes to Consolidated Financial Statements included in our Form 10-K, except as noted below relating to the adoption of updated guidance under the Leases Recent Accounting Pronouncements In June 2016, the FASB issued an update to existing guidance under the Investments In February 2016, the FASB issued an update to the existing guidance under the Leases We adopted this guidance on January 1, 2019 by applying the provisions of this guidance on a modified retrospective basis as of the effective date. As such, comparative periods have not been restated and the disclosures required under the new standard have not been provided for periods prior to January 1, 2019. We elected the package of practical expedients whereby we were not required to: i) reassess whether any expired or existing contracts are or contain leases, ii) reassess the lease classification of existing leases and iii) reassess initial direct costs for any existing leases. We did not elect the hindsight practical expedient or the practical expedient related to land easements. We have assessed and updated our business processes, systems and controls to ensure compliance with the recognition and disclosure requirements of the new standard. Adoption of the new standard resulted in the recording of right-of-use assets and lease liabilities of $269.7 million and $267.5 million, respectively, as of January 1, 2019 to recognize operating leases, primarily related to real estate and rolling stock, which were not recognized on our balance sheet under previous guidance. Further, the adoption of this guidance had no impact to our remaining other finance obligations as they continue to fail to meet the sale-leaseback requirements of the new standard. The adoption of this guidance did not have a material impact on our condensed consolidated statement of operations and comprehensive income or on our condensed consolidated statement of cash flows as our leases retained their classifications as determined under previous guidance. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 2. Revenue The following table disaggregates our sales by product category (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Lumber & lumber sheet goods $ 601,487 $ 811,159 $ 1,119,176 $ 1,455,068 Manufactured products 374,299 370,891 691,651 665,069 Windows, doors & millwork 391,049 375,515 744,439 707,667 Gypsum, roofing & insulation 138,388 141,273 259,307 254,149 Siding, metal & concrete products 191,289 189,536 341,207 331,699 Other building products & services 208,011 201,514 380,043 376,672 Net sales $ 1,904,523 $ 2,089,888 $ 3,535,823 $ 3,790,324 Information regarding disaggregation of sales by segment is discussed in Note 10 to the condensed consolidated financial statements. Sales related to contracts with service elements represents less than 10% of the Companyās net sales for each period presented. The timing of revenue recognition, billings and cash collections results in accounts receivable, unbilled receivables, contract assets and contract liabilities. Contract asset balances were not significant as of June 30, 2019 or December 31, 2018. Contract liabilities consist of deferred revenue and customer advances and deposits. Contract liability balances are included in accrued liabilities on our consolidated balance sheet and were $49.6 million and $ 42.1 |
Net Income per Common Share
Net Income per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | 3. Net Income per Common Share Net income per common share (āEPSā) is calculated in accordance with the Earnings per Share The table below presents the calculation of basic and diluted EPS (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net income $ 66,604 $ 56,622 $ 102,312 $ 79,842 Denominator: Weighted average shares outstanding, basic 115,757 114,636 115,592 114,365 Dilutive effect of options and RSUs 1,162 2,057 1,134 2,330 Weighted average shares outstanding, diluted 116,919 116,693 116,726 116,695 Net income per share: Basic $ 0.58 $ 0.49 $ 0.89 $ 0.70 Diluted $ 0.57 $ 0.49 $ 0.88 $ 0.68 Antidilutive and contingent options and RSUs excluded from diluted EPS 325 588 659 345 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt Long-term debt consisted of the following (in thousands): June 30, 2019 December 31, 2018 2023 facility (1) $ 73,000 $ 179,000 2024 notes 578,923 696,361 2024 term loan (2) 157,075 458,250 2027 notes 400,000 ā Other finance obligations (Note 5) 222,916 227,071 Finance lease obligations (Note 5) 17,347 16,445 1,449,261 1,577,127 Unamortized debt discount and debt issuance costs (16,149 ) (15,833 ) 1,433,112 1,561,294 Less: current maturities of long-term debt 12,650 15,565 Long-term debt, net of current maturities $ 1,420,462 $ 1,545,729 (1) The weighted average interest rate was 4.4% and 3.9 (2) The weighted average interest rate was 5.7% and 5.2% as of June 30, 2019 and December 31, 2018, respectively. 2019 Debt Transactions During the six months ended June 30, 2019, the Company executed several debt transactions which are described in more detail below. These transactions include: (i) open market purchases of our 5.625% senior secured notes due 2024 (ā2024 notesā), (ii) extension of the maturity of our $900.0 million revolving credit facility (ā2023 facilityā) and (iii) privately negotiated purchases of our 2024 notes and a partial repayment of our senior secured term loan facility due 2024 (ā2024 term loanā) with the proceeds from the issuance of 6.75% senior secured notes due 2027 (ā2027 notesā). These transactions collectively have extended our debt maturity profile and reduced the amount of long-term debt outstanding. 2024 Note Repurchase Transactions In the first quarter of 2019, the Company executed a series of open market purchases of its 2024 notes. These transactions resulted in $20.4 million in aggregate principal amount of the 2024 notes being repurchased at prices ranging from 94.9% to 95.9% of par value. These repurchases of the 2024 notes were considered to be debt extinguishments. As such, we recognized a gain on debt extinguishment of $0.7 million which was recorded as a component of interest expense in the first quarter of 2019. Of this gain, approximately $0.9 million was attributable to the repurchase of the notes at a discount to par value which was partially offset by a $0.2 million write-off of unamortized debt issuance costs associated with the 2024 notes repurchased. Revolving Credit Facility Amendment In April 2019, the Company extended the maturity date of its 2023 facility by 20 months to November 22, 2023. All other material terms of the 2023 facility remain unchanged from those of the previous agreement. In connection with the 2023 facility amendment we incurred $1.2 million in lender and third-party fees which, together with $5.9 million in remaining unamortized debt issuance costs, have been recorded as other assets and are being amortized over the remaining contractual life of the 2023 facility on a straight-line basis. 2019 Refinancing Transactions In May 2019, we completed a private offering of $400.0 million in aggregate principal amount of 2027 notes at an issue price equal to 100% of their par value. The proceeds from the issuance of the 2027 notes were used, together with cash on hand, to purchase $97.0 million in aggregate principal amount of 2024 notes, to repay $300.0 million of the 2024 term loan and to pay related transaction fees and expenses. In connection with the issuance of the 2027 notes, we incurred $6.1 million of various third-party fees and expenses. Of these costs, $2.1 million were recorded to interest expense in the second quarter of 2019. The remaining $4.0 million in costs incurred have been recorded as a reduction to long-term debt and are being amortized over the contractual life of the 2027 notes using the effective interest method. Further, we recorded an additional $2.2 million to interest expense in the second quarter of 2019 related to the write-off of unamortized debt discount and debt issuance costs in connection with the partial repayment of the 2024 term loan. Senior Secured Notes due 2027 As of June 30, 2019, we have $400.0 million outstanding in aggregate principal amount of the 2027 notes which mature on June 1, 2027. Interest accrues on the 2027 notes at a rate of 6.75% per annum and is payable semi-annually on June 1 and December 1 of each year, commencing on December 1, 2019. The terms of the 2027 notes are governed by the indenture, dated as of the May 30, 2019 (the āIndentureā), among the Company, the guarantors named therein and Wilmington Trust, National Association, as trustee and as notes collateral agent. The 2027 notes, subject to certain exceptions, are guaranteed, jointly and severally, on a senior secured basis, by certain of the Companyās direct and indirect wholly owned subsidiaries (the āGuarantorsā). All obligations under the 2027 notes, and the guarantees of those obligations, are secured by substantially all of the assets of the Company and the Guarantors subject to certain exceptions and permitted liens, including a first-priority security interest in such assets that constitute Notes Collateral (as defined below) and a second-priority security interest in such assets that constitute ABL Collateral (as defined below). āABL Collateralā includes substantially all presently owned and after-acquired accounts, inventory, rights of an unpaid vendor with respect to inventory, deposit accounts, investment property, cash and cash equivalents, and instruments and chattel paper and general intangibles, books and records and documents related to and proceeds of each of the foregoing. āNotes Collateralā includes all collateral which is not ABL Collateral. The Indenture contains restrictive covenants that limit the ability of the Company and its restricted subsidiaries to, among other things, incur additional debt or issue preferred stock, create liens, create restrictions on the Companyās subsidiariesā ability to make payments to the Company, pay dividends and make other distributions in respect of the Companyās and its subsidiariesā capital stock, make certain investments or certain other restricted payments, guarantee indebtedness, designate unrestricted subsidiaries, sell certain kinds of assets, enter into certain types of transactions with affiliates, and effect mergers and consolidations. At any time prior to June 1, 2022, the Company may redeem the 2027 notes in whole or in part at a redemption price equal to 100% of the principal amount of the 2027 notes plus the āapplicable premiumā set forth in the Indenture. At any time on or after June 1, 2022, the Company may redeem the 2027 notes at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any, to the redemption date. At any time and from time to time during the 36-month period following the Closing Date, the Company may redeem up to 10% of the aggregate principal amount of the 2027 notes during each twelve-month period commencing on the Closing Date at a redemption price of 103% of the aggregate principal amount thereof plus accrued and unpaid interest to the redemption date. In addition, at any time prior to June 1, 2022, the Company may redeem up to 40% of the aggregate principal amount of the 2027 notes with the net cash proceeds of one or more equity offerings, as described in the Indenture, at a price equal to 106.750% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date. If the Company experiences certain change of control events, holders of the 2027 notes may require it to repurchase all or part of their 2027 notes at 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the repurchase date. Fair Value As of June 30, 2019 and December 31, 2018, the Company does not have any financial instruments which are measured at fair value on a recurring basis. We have elected to report the value of our 2027 notes, 2024 notes, 2024 term loan and 2023 facility at amortized cost. The fair values of the 2027 notes, 2024 notes and the 2024 term loan at June 30, 2019 were approximately $423.4 million, $597.2 million and $156.8 million, respectively, and were determined using Level 2 inputs based on market prices. The carrying value of the 2023 facility at June 30, 2019 approximates fair value as the rates are comparable to those at which we could currently borrow under similar terms, are variable and incorporate a measure of our credit risk. As such, the fair value of the 2023 facility was also classified as Level 2 in the hierarchy. We were not in violation of any covenants or restrictions imposed by any of our debt agreements at June 30, 2019. |
Leases and Other Finance Obliga
Leases and Other Finance Obligations | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases and Other Finance Obligations | 5. Leases and Other Finance Obligations We lease certain land, buildings, rolling stock and other types of equipment for use in our operations. These leases typically have initial terms ranging from one to 15 years. Many of our leases contain renewal options which are exercisable at our discretion. These renewal options generally have terms ranging from one to five years. We also lease certain properties from related parties, including current employees and non-affiliate stockholders. Leases with related parties are not significant as of or for the six months ended June 30, 2019 or 2018. We determine if an arrangement is a lease at the inception of the arrangement. Lease liabilities are recognized based on the present value of lease payments over the lease term at the arrangementās commencement date. Right-of-use assets are recognized based on the amount of the measurement of the lease liability adjusted for any Certain of our leases are subject to variable lease payments based on various measures, such as rent escalations determined by percentage changes in the consumer price index. As these types of variable lease payments are determined on a basis other than an index or a rate, they are generally excluded from the calculation of lease liabilities and right-of-use assets and are expensed as incurred. In addition, we have residual value guarantees on certain equipment leases. Under these leases, we have the option of (a) purchasing the equipment at the end of the lease term, (b) arranging for the sale of the equipment to a third party, or (c) returning the equipment to the lessor to sell the equipment. If the sales proceeds in any case are less than the residual value, we are required to reimburse the lessor for the deficiency up to a specified level as stated in each lease agreement. If the sales proceeds exceed the residual value, we are entitled to all of such excess amounts. The guarantees under these leases for the residual values of equipment at the end of the respective operating lease periods approximated $5.6 million as of June 30, 2019. Based upon the expectation that none of these leased assets will have a residual value at the end of the lease term that is materially less than the value specified in the related operating lease agreement or that we will purchase the equipment at the end of the lease term, we do not believe it is probable that we will be required to fund any amounts under the terms of these guarantee arrangements. Accordingly, these guarantees have not been recognized in the calculation of our right-of-use assets and lease liabilities. Our lease agreements do not impose any significant restrictions or covenants on us. As of June 30, 2019, we had no significant future lease payments related to leases which have been signed, but have not yet commenced. Right-of-use assets and lease liabilities consisted of the following (in thousands): June 30, 2019 Assets Operating lease right-of-use assets, net $ 273,971 Finance lease right-of-use assets, net (included in property, plant and equipment, net) 25,770 Total right-of-use assets $ 299,741 Liabilities Current Current portion of operating lease liabilities $ 60,576 Current portion of finance lease liabilities (included in current maturities of long-term debt) 10,148 Noncurrent Noncurrent portion of operating lease liabilities $ 218,001 Noncurrent portion of finance lease liabilities (included in long-term debt, net of current maturities) 7,199 Total lease liabilities $ 295,924 Total lease costs consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2019 Operating lease costs* $ 21,195 $ 42,102 Finance lease costs: Amortization of finance lease right-of-use assets 1,219 2,334 Interest on finance lease liabilities 267 517 Variable lease costs 4,049 8,081 Total lease costs $ 26,730 $ 53,034 * Includes short-term lease costs and sublease income which were not material for the three and six months ended June 30, 2019. Future maturities of lease liabilities as of June 30, 2019 were as follows (in thousands): Finance Leases Operating Leases 2019 (from July 1, 2019) $ 6,054 $ 39,393 2020 7,972 72,824 2021 3,811 62,087 2022 559 47,155 2023 ā 34,123 Thereafter ā 85,615 Total lease payments 18,396 341,197 Less: amount representing interest (1,049 ) (62,620 ) Present value of lease liabilities 17,347 278,577 Less: current portion (10,148 ) (60,576 ) Long-term lease liabilities, net of current portion $ 7,199 $ 218,001 Weighted average lease terms and discount rates as of June 30, 2019 were as follows: Weighted average remaining lease term (years) Operating leases 5.9 Finance leases 1.9 Weighted average discount rate Operating leases 6.9 % Finance leases 5.9 % Future maturities of lease obligations as of December 31, 2018 were as follows (in thousands): Capital Leases Operating Leases 2019 $ 10,784 $ 77,297 2020 5,392 63,633 2021 1,242 51,804 2022 ā 37,054 2023 ā 23,327 Thereafter ā 57,000 Total minimum lease payments 17,418 $ 310,115 Less: amount representing interest (973 ) Present value of lease liabilities 16,445 Less: current portion (10,039 ) Long-term lease liabilities, net of current portion $ 6,406 The following table presents cash paid for amounts included in the measurement of lease liabilities as well supplemental noncash information (in thousands): Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 41,154 Operating cash flows from finance leases 517 Financing cash flows from finance leases 6,162 Right-of-use assets obtained in exchange for new operating lease liabilities 35,949 Right-of-use assets obtained in exchange for new finance lease liabilities 7,036 Other Finance Obligations In addition to the operating and finance lease arrangements described above, the Company is party to 140 individual property lease agreements with a single lessor as of June 30, 2019. These lease agreements have initial terms ranging from nine to 15 years (expiring through 2021) and renewal options in five-year increments providing for up to approximately 30-year total lease terms. We were deemed the owner of certain of our facilities during their construction period based on an evaluation made in accordance with the Leases As of June 30, 2019, other finance obligations consist of $222.9 million, with cash payments of $10.5 million for the six months ended June 30, 2019. These other finance obligations are included on the condensed consolidated balance sheet as part of long-term debt. The related assets are recorded as components of property, plant, and equipment on the condensed consolidated balance sheet. Future maturities for other finance obligations as of June 30, 2019 were as follows (in thousands): 2019 (from July 1, 2019) $ 9,116 2020 18,148 2021 17,784 2022 17,668 2023 17,677 Thereafter 220,570 Total $ 300,963 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 6. Property, Plant and Equipment Property, plant and equipment consisted of the following: June 30, 2019 December 31, 2018 (In thousands) Land $ 197,140 $ 198,304 Buildings and improvements 359,966 358,411 Machinery and equipment 392,887 403,765 Furniture, fixtures and computer equipment 84,509 78,910 Construction in progress 28,609 20,810 Finance lease right-of-use assets 28,046 ā Property, plant and equipment 1,091,157 1,060,200 Less: accumulated depreciation 415,847 390,125 Property, plant and equipment, net $ 675,310 $ 670,075 Depreciation expense was $19.9 million and $18.6 million, of which $4.9 million and $4.8 million and $9.2 Included in property, plant and equipment are certain assets held under other finance obligations. These assets are recorded at the present value of the lease payments and include land, buildings and equipment. Amortization charges associated with assets held under other finance obligations are included in depreciation expense. The following balances held under other finance obligations are included on the accompanying consolidated balance sheet: June 30, 2019 December 31, 2018* (In thousands) Land $ 118,683 $ 118,677 Buildings and improvements 137,050 142,345 Machinery and equipment ā 27,188 Assets held under other finance obligations 255,733 288,210 Less: accumulated amortization 16,612 21,786 Assets held under other finance obligations, net $ 239,121 $ 266,424 * Totals as of December 31, 2018 included assets which, under previous guidance, were held under capital leases. As of June 30, 2019 these assets are now presented as finance lease right-of-use assets as reflected in the table above. |
Employee Stock-Based Compensati
Employee Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock-Based Compensation | 7. Employee Stock-Based Compensation Time Based Restricted Stock Unit Grants In the first six months of 2019, our board of directors granted 745,000 RSUs to employees and eligible directors under our 2014 Incentive Plan for which vesting is based solely on continuous employment over the requisite service period. 618,000 of the RSUs vest at 33 % anniversary of the grant date and 54,000 of the RSUs cliff vest on the first anniversary of the grant date. The weighted average grant date fair value for these RSUs was $ per unit , which was based on the closin g stock price on the grant date . Performance, Market and Service Condition Based Restricted Stock Unit Grants In the first six months of 2019, our board of directors granted 397,000 RSUs to employees under our 2014 Incentive Plan, that cliff vest on the third anniversary of the grant date based on the Companyās level of achievement of performance goals relating to return on invested capital (āROICā) over a three-year period (āperformance conditionā) as well as continued employment during the performance period. The total number of shares of common stock that may be earned from the performance condition ranges from zero to 200% of the RSUs granted. The number of shares earned from the performance condition may be further increased by 10% or decreased by 10% based on the Companyās total shareholder return relative to a peer group during the performance period (āmarket conditionā). The average grant date fair value for these RSUs, with consideration of the market condition, was $14.42 per unit, which was determined using the Monte Carlo simulation model using the following assumptions: Expected volatility (company) 38.3% Expected volatility (peer group median) 33.2% Correlation between the company and peer group median 0.5 Expected dividend yield 0.0% Risk-free rate 2.6% The expected volatilities and correlation are based on the historical daily returns of our common stock and the common stocks of the constituents of the Companyās peer group over the most recent period equal to the measurement period. The expected dividend yield is based on our history of not paying regular dividends in the past and our current intention to not pay regular dividends in the foreseeable future. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant and has a term equal to the measurement period. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes A reconciliation of the statutory federal income tax rate to our effective rate for continuing operations is provided below: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax 4.4 5.1 4.4 5.1 Stock compensation windfall benefit (0.4 ) (0.1 ) (0.3 ) (4.2 ) Permanent differences and other (2.2 ) (0.9 ) (1.9 ) (0.9 ) 22.8 % 25.1 % 23.2 % 21.0 % We base our estimate of deferred tax assets and liabilities on current tax laws and rates. In certain cases, we also base our estimate on business plan forecasts and other expectations about future outcomes. Changes in existing tax laws or rates could affect our actual tax results, and future business results may affect the amount of our deferred tax liabilities or the valuation of our deferred tax assets over time. Due to uncertainties in the estimation process, particularly with respect to changes in facts and circumstances in future reporting periods, as well as the residential homebuilding industryās cyclicality and sensitivity to changes in economic conditions, it is possible that actual results could differ from the estimates used in previous analyses. Accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on our consolidated results of operations or financial position. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies As of June 30, 2019, we had outstanding letters of credit totaling $82.2 million under our 2023 facility that principally support our self-insurance programs. The Company has a number of known and threatened construction defect legal claims. While these claims are generally covered under the Companyās existing insurance programs to the extent any loss exceeds the deductible, there is a reasonable possibility of loss that is not able to be estimated at this time because (i) many of the proceedings are in the discovery stage, (ii) the outcome of future litigation is uncertain, and/or (iii) the complex nature of the claims. Although the Company cannot estimate a reasonable range of loss based on currently available information, the resolution of these matters could have a material adverse effect on the Company's financial position, results of operations or cash flows. In addition, we are involved in various other claims and lawsuits incidental to the conduct of our business in the ordinary course. We carry insurance coverage in such amounts in excess of our self-insured retention as we believe to be reasonable under the circumstances and that may or may not cover any or all of our liabilities in respect of such claims and lawsuits. Although the ultimate disposition of these other proceedings cannot be predicted with certainty, management believes the outcome of any such claims that are pending or threatened, either individually or on a combined basis, will not have a material adverse effect on our consolidated financial position, cash flows or results of operations. However, there can be no assurances that future adverse judgments and costs would not be material to our results of operations or liquidity for a particular period. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 10. Segment Information We offer an integrated solution to our customers providing manufacturing, supply, and installation of a full range of structural and related building products. We provide a wide variety of building products and services directly to homebuilder customers. We manufacture floor trusses, roof trusses, wall panels, stairs, millwork, windows, and doors. We also provide a full range of construction services. These product and service offerings are distributed across 400 locations operating in 39 states across the United States, which are organized into nine geographical regions. Centralized financial and operational oversight, including resource allocation and assessment of performance on an income before income taxes basis, is performed by our CEO, whom we have determined to be our chief operating decision maker (āCODMā). The Company has nine operating segments aligned with its nine geographical regions (Regions 1 through 9). While all of our operating segments have products, distribution methods and customers of a similar nature, certain of our operating segments have been aggregated due to also containing similar economic characteristics, resulting in the following composition of reportable segments: ā¢ Regions 1 and 2 have been aggregated to form the āNortheastā reportable segment ā¢ Regions 3 and 5 have been aggregated to form the āSoutheastā reportable segment ā¢ Regions 4 and 6 have been aggregated to form the āSouthā reportable segment ā¢ Region 7, 8 and 9 have been aggregated to form the āWestā reportable segment In addition to our reportable segments, our consolidated results include corporate overhead, other various operating activities that are not internally allocated to a geographical region nor separately reported as a single unit to the CODM, and certain reconciling items primarily related to allocations of corporate overhead and rent expense, which have collectively been presented as āAll Otherā. The accounting policies of the segments are consistent with those referenced in Note 1, except for noted reconciling items. The following tables present Net sales, income before income taxes and certain other measures for the reportable segments, reconciled to total consolidated operations, for the periods indicated (in thousands): Three months ended June 30, 2019 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 350,671 $ 3,256 $ 5,280 $ 18,674 Southeast 419,085 3,100 5,521 24,281 South 476,577 4,914 5,859 29,117 West 596,981 6,536 9,159 35,203 Total reportable segments 1,843,314 17,806 25,819 107,275 All other 61,209 6,008 3,563 (21,012 ) Total consolidated $ 1,904,523 $ 23,814 $ 29,382 $ 86,263 Three months ended June 30, 2018 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 357,258 $ 3,523 $ 6,012 $ 12,110 Southeast 454,734 2,922 6,545 16,266 South 538,168 5,326 6,740 23,435 West 676,374 6,765 10,887 39,558 Total reportable segments 2,026,534 18,536 30,184 91,369 All other 63,354 6,232 (1,227 ) (15,767 ) Total consolidated $ 2,089,888 $ 24,768 $ 28,957 $ 75,602 Six months ended June 30, 2019 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 637,268 $ 6,469 $ 10,400 $ 25,450 Southeast 808,564 6,147 11,146 41,349 South 937,656 9,773 11,795 58,259 West 1,038,313 12,998 18,062 33,978 Total reportable segments 3,421,801 35,387 51,403 159,036 All other 114,022 12,003 2,880 (25,783 ) Total consolidated $ 3,535,823 $ 47,390 $ 54,283 $ 133,253 Six months ended June 30, 2018 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 641,650 $ 6,690 $ 11,556 $ 13,253 Southeast 844,187 5,508 12,395 27,839 South 1,006,615 10,188 12,689 43,466 West 1,184,933 13,107 19,561 45,562 Total reportable segments 3,677,385 35,493 56,201 130,120 All other 112,939 12,094 (502 ) (29,116 ) Total consolidated $ 3,790,324 $ 47,587 $ 55,699 $ 101,004 Asset information by segment is not reported internally or otherwise reviewed by the CODM nor does the Company earn revenues or have long-lived assets located in foreign countries. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions Certain members of the Companyās board of directors also serve on the board of directors of one of our suppliers, PGT, Inc. Further, the Company has entered into certain leases of land and buildings with certain employees or non-affiliate stockholders. Activity associated with these related party transactions was not significant as of or for the six months ended June 30, 2019 or 2018. Transactions between the Company and other related parties occur in the ordinary course of business. However, the Company carefully monitors and assesses related party relationships. Management does not believe that any of these transactions with related parties had a material impact on the Companyās results for the six months ended June 30, 2019 or 2018. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events Acquisition In July 2019, we acquired certain assets and the operations of Sun State Components (āSun Stateā) for $42.9 million in cash, subject to certain adjustments. Sun State is comprised of three truss companies, which are located in Las Vegas, Nevada; Surprise, Arizona; and Kingman, Arizona. Sun State manufactures roof trusses and floor trusses and distributes lumber and related products to residential homebuilders and commercial contractors. The accounting for this acquisition has not been completed at the date of this filing given the proximity to the acquisition date. The acquisition will be accounted for by the acquisition method, and accordingly the results of operations will be included in the Companyās consolidated financial statements from the acquisition date. The purchase price will be allocated to the net assets acquired based on estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill. Debt Transactions In July 2019, we completed a private offering of an additional $75.0 million in aggregate principal amount of 2027 notes at an issue price of 104.5% of their par value. The proceeds from this offering were used to redeem an additional $75.0 million in aggregate principal amount of our 2024 notes at a price of 103.0% of their face value and to pay the related transaction fees and expenses. Common Stock Repurchases In February 2019, the Company announced that our board of directors has authorized the repurchase of up to $20.0 million of our common stock. From July 1, 2019 through July 31, 2019, the Company repurchased 360,000 shares of our common stock, at an average price of $16.88 per share, for $6.1 million pursuant to this repurchase plan. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued an update to existing guidance under the Investments In February 2016, the FASB issued an update to the existing guidance under the Leases We adopted this guidance on January 1, 2019 by applying the provisions of this guidance on a modified retrospective basis as of the effective date. As such, comparative periods have not been restated and the disclosures required under the new standard have not been provided for periods prior to January 1, 2019. We elected the package of practical expedients whereby we were not required to: i) reassess whether any expired or existing contracts are or contain leases, ii) reassess the lease classification of existing leases and iii) reassess initial direct costs for any existing leases. We did not elect the hindsight practical expedient or the practical expedient related to land easements. We have assessed and updated our business processes, systems and controls to ensure compliance with the recognition and disclosure requirements of the new standard. Adoption of the new standard resulted in the recording of right-of-use assets and lease liabilities of $269.7 million and $267.5 million, respectively, as of January 1, 2019 to recognize operating leases, primarily related to real estate and rolling stock, which were not recognized on our balance sheet under previous guidance. Further, the adoption of this guidance had no impact to our remaining other finance obligations as they continue to fail to meet the sale-leaseback requirements of the new standard. The adoption of this guidance did not have a material impact on our condensed consolidated statement of operations and comprehensive income or on our condensed consolidated statement of cash flows as our leases retained their classifications as determined under previous guidance. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Sales by Product Category | The following table disaggregates our sales by product category (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Lumber & lumber sheet goods $ 601,487 $ 811,159 $ 1,119,176 $ 1,455,068 Manufactured products 374,299 370,891 691,651 665,069 Windows, doors & millwork 391,049 375,515 744,439 707,667 Gypsum, roofing & insulation 138,388 141,273 259,307 254,149 Siding, metal & concrete products 191,289 189,536 341,207 331,699 Other building products & services 208,011 201,514 380,043 376,672 Net sales $ 1,904,523 $ 2,089,888 $ 3,535,823 $ 3,790,324 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic And Diluted EPS | The table below presents the calculation of basic and diluted EPS (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net income $ 66,604 $ 56,622 $ 102,312 $ 79,842 Denominator: Weighted average shares outstanding, basic 115,757 114,636 115,592 114,365 Dilutive effect of options and RSUs 1,162 2,057 1,134 2,330 Weighted average shares outstanding, diluted 116,919 116,693 116,726 116,695 Net income per share: Basic $ 0.58 $ 0.49 $ 0.89 $ 0.70 Diluted $ 0.57 $ 0.49 $ 0.88 $ 0.68 Antidilutive and contingent options and RSUs excluded from diluted EPS 325 588 659 345 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consisted of the following (in thousands): June 30, 2019 December 31, 2018 2023 facility (1) $ 73,000 $ 179,000 2024 notes 578,923 696,361 2024 term loan (2) 157,075 458,250 2027 notes 400,000 ā Other finance obligations (Note 5) 222,916 227,071 Finance lease obligations (Note 5) 17,347 16,445 1,449,261 1,577,127 Unamortized debt discount and debt issuance costs (16,149 ) (15,833 ) 1,433,112 1,561,294 Less: current maturities of long-term debt 12,650 15,565 Long-term debt, net of current maturities $ 1,420,462 $ 1,545,729 (1) The weighted average interest rate was 4.4% and 3.9 (2) The weighted average interest rate was 5.7% and 5.2% as of June 30, 2019 and December 31, 2018, respectively. |
Leases and Other Finance Obli_2
Leases and Other Finance Obligations (Table) | 6 Months Ended |
Jun. 30, 2019 | |
Lessee Lease Description [Line Items] | |
Summary of Right-of-use Assets and Lease Liabilities | Right-of-use assets and lease liabilities consisted of the following (in thousands): June 30, 2019 Assets Operating lease right-of-use assets, net $ 273,971 Finance lease right-of-use assets, net (included in property, plant and equipment, net) 25,770 Total right-of-use assets $ 299,741 Liabilities Current Current portion of operating lease liabilities $ 60,576 Current portion of finance lease liabilities (included in current maturities of long-term debt) 10,148 Noncurrent Noncurrent portion of operating lease liabilities $ 218,001 Noncurrent portion of finance lease liabilities (included in long-term debt, net of current maturities) 7,199 Total lease liabilities $ 295,924 |
Summary of Total Lease Costs | Total lease costs consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2019 Operating lease costs* $ 21,195 $ 42,102 Finance lease costs: Amortization of finance lease right-of-use assets 1,219 2,334 Interest on finance lease liabilities 267 517 Variable lease costs 4,049 8,081 Total lease costs $ 26,730 $ 53,034 * Includes short-term lease costs and sublease income which were not material for the three and six months ended June 30, 2019. |
Summary of Future Maturities of Lease Liabilities | Future maturities of lease liabilities as of June 30, 2019 were as follows (in thousands): Finance Leases Operating Leases 2019 (from July 1, 2019) $ 6,054 $ 39,393 2020 7,972 72,824 2021 3,811 62,087 2022 559 47,155 2023 ā 34,123 Thereafter ā 85,615 Total lease payments 18,396 341,197 Less: amount representing interest (1,049 ) (62,620 ) Present value of lease liabilities 17,347 278,577 Less: current portion (10,148 ) (60,576 ) Long-term lease liabilities, net of current portion $ 7,199 $ 218,001 |
Summary of Weighted Average Lease Terms and Discount Rates | Weighted average lease terms and discount rates as of June 30, 2019 were as follows: Weighted average remaining lease term (years) Operating leases 5.9 Finance leases 1.9 Weighted average discount rate Operating leases 6.9 % Finance leases 5.9 % |
Summary of Future Maturities of Lease Obligations | Future maturities of lease obligations as of December 31, 2018 were as follows (in thousands): Capital Leases Operating Leases 2019 $ 10,784 $ 77,297 2020 5,392 63,633 2021 1,242 51,804 2022 ā 37,054 2023 ā 23,327 Thereafter ā 57,000 Total minimum lease payments 17,418 $ 310,115 Less: amount representing interest (973 ) Present value of lease liabilities 16,445 Less: current portion (10,039 ) Long-term lease liabilities, net of current portion $ 6,406 |
Summary of Cash paid for Amounts Included in Measurement of Lease Liabilities as Well Supplemental Noncash Information | The following table presents cash paid for amounts included in the measurement of lease liabilities as well supplemental noncash information (in thousands): Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 41,154 Operating cash flows from finance leases 517 Financing cash flows from finance leases 6,162 Right-of-use assets obtained in exchange for new operating lease liabilities 35,949 Right-of-use assets obtained in exchange for new finance lease liabilities 7,036 |
Other Finance Obligations | |
Lessee Lease Description [Line Items] | |
Summary of Future Maturities of Other Finance Obligation | Future maturities for other finance obligations as of June 30, 2019 were as follows (in thousands): 2019 (from July 1, 2019) $ 9,116 2020 18,148 2021 17,784 2022 17,668 2023 17,677 Thereafter 220,570 Total $ 300,963 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following: June 30, 2019 December 31, 2018 (In thousands) Land $ 197,140 $ 198,304 Buildings and improvements 359,966 358,411 Machinery and equipment 392,887 403,765 Furniture, fixtures and computer equipment 84,509 78,910 Construction in progress 28,609 20,810 Finance lease right-of-use assets 28,046 ā Property, plant and equipment 1,091,157 1,060,200 Less: accumulated depreciation 415,847 390,125 Property, plant and equipment, net $ 675,310 $ 670,075 |
Schedule of Balances Held Under Other Finance Obligations | The following balances held under other finance obligations are included on the accompanying consolidated balance sheet: June 30, 2019 December 31, 2018* (In thousands) Land $ 118,683 $ 118,677 Buildings and improvements 137,050 142,345 Machinery and equipment ā 27,188 Assets held under other finance obligations 255,733 288,210 Less: accumulated amortization 16,612 21,786 Assets held under other finance obligations, net $ 239,121 $ 266,424 |
Employee Stock-Based Compensa_2
Employee Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Performance Market and Service Condition Based Restricted Stock Unit Grants | |
Schedule of Share-based Payment Award, Restricted Stock Unit, Valuation Assumptions | The average grant date fair value for these RSUs, with consideration of the market condition, was $14.42 per unit, which was determined using the Monte Carlo simulation model using the following assumptions: Expected volatility (company) 38.3% Expected volatility (peer group median) 33.2% Correlation between the company and peer group median 0.5 Expected dividend yield 0.0% Risk-free rate 2.6% |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Statutory Federal Income Tax Rate to Our Effective Rate for Continuing Operations | A reconciliation of the statutory federal income tax rate to our effective rate for continuing operations is provided below: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax 4.4 5.1 4.4 5.1 Stock compensation windfall benefit (0.4 ) (0.1 ) (0.3 ) (4.2 ) Permanent differences and other (2.2 ) (0.9 ) (1.9 ) (0.9 ) 22.8 % 25.1 % 23.2 % 21.0 % |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Reconciling Information by Reportable Segments | The following tables present Net sales, income before income taxes and certain other measures for the reportable segments, reconciled to total consolidated operations, for the periods indicated (in thousands): Three months ended June 30, 2019 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 350,671 $ 3,256 $ 5,280 $ 18,674 Southeast 419,085 3,100 5,521 24,281 South 476,577 4,914 5,859 29,117 West 596,981 6,536 9,159 35,203 Total reportable segments 1,843,314 17,806 25,819 107,275 All other 61,209 6,008 3,563 (21,012 ) Total consolidated $ 1,904,523 $ 23,814 $ 29,382 $ 86,263 Three months ended June 30, 2018 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 357,258 $ 3,523 $ 6,012 $ 12,110 Southeast 454,734 2,922 6,545 16,266 South 538,168 5,326 6,740 23,435 West 676,374 6,765 10,887 39,558 Total reportable segments 2,026,534 18,536 30,184 91,369 All other 63,354 6,232 (1,227 ) (15,767 ) Total consolidated $ 2,089,888 $ 24,768 $ 28,957 $ 75,602 Six months ended June 30, 2019 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 637,268 $ 6,469 $ 10,400 $ 25,450 Southeast 808,564 6,147 11,146 41,349 South 937,656 9,773 11,795 58,259 West 1,038,313 12,998 18,062 33,978 Total reportable segments 3,421,801 35,387 51,403 159,036 All other 114,022 12,003 2,880 (25,783 ) Total consolidated $ 3,535,823 $ 47,390 $ 54,283 $ 133,253 Six months ended June 30, 2018 Reportable segments Net Sales Depreciation & Amortization Interest Income before income taxes Northeast $ 641,650 $ 6,690 $ 11,556 $ 13,253 Southeast 844,187 5,508 12,395 27,839 South 1,006,615 10,188 12,689 43,466 West 1,184,933 13,107 19,561 45,562 Total reportable segments 3,677,385 35,493 56,201 130,120 All other 112,939 12,094 (502 ) (29,116 ) Total consolidated $ 3,790,324 $ 47,587 $ 55,699 $ 101,004 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)StoreStates | Jan. 01, 2019USD ($) | |
Basis Of Presentation [Line Items] | ||
Entity formed, year | 1998 | |
Number of Locations | Store | 400 | |
Number of states | States | 39 | |
Operating lease, right-of-use assets | $ 273,971 | |
Operating lease liabilities | $ 278,577 | |
Accounting Standards Update 2016-02 | ||
Basis Of Presentation [Line Items] | ||
Operating lease, right-of-use assets | $ 269,700 | |
Operating lease liabilities | $ 267,500 |
Revenue - Sales by Product Cate
Revenue - Sales by Product Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net sales | $ 1,904,523 | $ 2,089,888 | $ 3,535,823 | $ 3,790,324 |
Lumber and Lumber Sheet Goods | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net sales | 601,487 | 811,159 | 1,119,176 | 1,455,068 |
Manufactured Products | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net sales | 374,299 | 370,891 | 691,651 | 665,069 |
Windows, Doors and Millwork | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net sales | 391,049 | 375,515 | 744,439 | 707,667 |
Gypsum, Roofing and Insulation | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net sales | 138,388 | 141,273 | 259,307 | 254,149 |
Siding, Metal and Concrete Products | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net sales | 191,289 | 189,536 | 341,207 | 331,699 |
Other Building Products and Services | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net sales | $ 208,011 | $ 201,514 | $ 380,043 | $ 376,672 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Revenue From Contract With Customer [Abstract] | ||
Contract liability | $ 49.6 | $ 42.1 |
Net Income per Common Share - S
Net Income per Common Share - Summary of Calculation of Basic And Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||||
Net income | $ 66,604 | $ 35,708 | $ 56,622 | $ 23,220 | $ 102,312 | $ 79,842 |
Weighted average common shares: | ||||||
Basic | 115,757 | 114,636 | 115,592 | 114,365 | ||
Dilutive effect of options and RSUs | 1,162 | 2,057 | 1,134 | 2,330 | ||
Weighted average shares outstanding, diluted | 116,919 | 116,693 | 116,726 | 116,695 | ||
Net income per share: | ||||||
Basic | $ 0.58 | $ 0.49 | $ 0.89 | $ 0.70 | ||
Diluted | $ 0.57 | $ 0.49 | $ 0.88 | $ 0.68 | ||
Antidilutive and contingent options and RSUs excluded from diluted EPS | 325 | 588 | 659 | 345 |
Debt - Summary of Long-Term Deb
Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jun. 30, 2019 | May 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Debt instrument carrying amount | $ 1,449,261 | $ 1,577,127 | ||
Unamortized debt discount and debt issuance costs | (16,149) | (15,833) | ||
Long-term debt and capital lease obligation | 1,433,112 | 1,561,294 | ||
Less: current maturities of long-term debt | 12,650 | 15,565 | ||
Long-term debt, net of current maturities | 1,420,462 | 1,545,729 | ||
2023 Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument carrying amount | 73,000 | 179,000 | ||
2024 Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument carrying amount | 578,923 | 696,361 | ||
2024 Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt instrument carrying amount | 157,075 | 458,250 | ||
2027 Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument carrying amount | $ 75,000 | 400,000 | $ 400,000 | |
Other Finance Obligations | ||||
Debt Instrument [Line Items] | ||||
Debt instrument carrying amount | 222,916 | 227,071 | ||
Finance Lease Obligations | ||||
Debt Instrument [Line Items] | ||||
Debt instrument carrying amount | $ 17,347 | $ 16,445 |
Debt - Summary of Long-Term D_2
Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | Jun. 30, 2019 | Dec. 31, 2018 |
2023 Facility | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.40% | 3.90% |
2024 Term Loan | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.70% | 5.20% |
Debt - 2019 Debt Transactions -
Debt - 2019 Debt Transactions - Additional Information (Detail) | Jun. 30, 2019USD ($) |
2023 facility | |
Debt Instrument [Line Items] | |
Line of credit facility maximum borrowing capacity | $ 900,000,000 |
2024 notes | |
Debt Instrument [Line Items] | |
Private offered aggregate principal amount rate | 5.625% |
2027 Notes | |
Debt Instrument [Line Items] | |
Private offered aggregate principal amount rate | 6.75% |
Debt - 2024 Note Repurchase Tra
Debt - 2024 Note Repurchase Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2019 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | ||
Gain (loss) on extinguishment of debt | $ (1,498) | |
2024 notes | ||
Debt Instrument [Line Items] | ||
Notes repurchase amount | $ 20,400 | |
Gain (loss) on extinguishment of debt | 700 | |
Gain (Loss) on repurchase of debt instrument | 900 | |
Write off of unamortized deferred loan cost | $ 200 | |
Minimum | 2024 notes | ||
Debt Instrument [Line Items] | ||
Purchase price, Percentage of principal amount | 94.90% | |
Maximum | 2024 notes | ||
Debt Instrument [Line Items] | ||
Purchase price, Percentage of principal amount | 95.90% |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility Amendment - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended |
Apr. 30, 2019 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | ||
Debt issuance costs | $ 7,278 | |
2023 facility | ||
Debt Instrument [Line Items] | ||
Revolving credit facility extended maturity period | 20 months | |
Revolving credit facility due date | Nov. 22, 2023 | |
Debt issuance costs | $ 1,200 | |
Unamortized debt discount and debt issuance costs | $ 5,900 |
Debt - 2019 Refinancing Transac
Debt - 2019 Refinancing Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | May 31, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||
Debt instrument carrying amount | $ 1,449,261 | $ 1,449,261 | $ 1,577,127 | ||
Debt issuance costs | 7,278 | ||||
2027 Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument carrying amount | $ 75,000 | $ 400,000 | 400,000 | 400,000 | |
Net percentage of proceeds from debt issuance | 104.50% | 100.00% | |||
Debt issuance costs | $ 6,100 | ||||
Debt issuance costs recorded to interest expense | 2,100 | ||||
Debt issuance costs | 4,000 | ||||
2024 Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument carrying amount | 578,923 | 578,923 | 696,361 | ||
Purchase of notes, aggregate principal amount | $ 75,000 | 97,000 | |||
2024 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt instrument carrying amount | 157,075 | $ 157,075 | $ 458,250 | ||
Repayment of term loan | $ 300,000 | ||||
Write-off of unamortized debt discount and debt issuance costs | $ 2,200 |
Debt - Senior Secured Notes due
Debt - Senior Secured Notes due 2027 - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 31, 2019 | May 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Debt instrument carrying amount | $ 1,449,261 | $ 1,577,127 | ||
2027 Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument carrying amount | $ 400,000 | $ 75,000 | $ 400,000 | |
Senior secured term loan maturity date | Jun. 1, 2027 | |||
Private offered aggregate principal amount rate | 6.75% | |||
Debt instrument interest rate terms | payable semi-annually on June 1 and December 1 of each year, commencing on December 1, 2019. | |||
Purchase price, Percentage of principal amount | 101.00% | |||
Redemption period | 36 months | |||
2027 Notes | Redemption Period Prior to June 1, 2022 | ||||
Debt Instrument [Line Items] | ||||
Purchase price, Percentage of principal amount | 100.00% | |||
2027 Notes | Redemption Period Following Closing Date for Each Twelve-month | ||||
Debt Instrument [Line Items] | ||||
Purchase price, Percentage of principal amount | 103.00% | |||
2027 Notes | Redemption Price Using Proceeds From Equity Offering | ||||
Debt Instrument [Line Items] | ||||
Purchase price, Percentage of principal amount | 106.75% | |||
2027 Notes | Maximum | Redemption Period Following Closing Date for Each Twelve-month | ||||
Debt Instrument [Line Items] | ||||
Redemption percentage of aggregate principal amount redeemable in each twelve-month period commencing on closing date | 10.00% | |||
2027 Notes | Maximum | Redemption Price Using Proceeds From Equity Offering | ||||
Debt Instrument [Line Items] | ||||
Redemption percentage of aggregate principal amount | 40.00% |
Debt - Fair Value - Additional
Debt - Fair Value - Additional Information (Detail) - Level 2 $ in Millions | Jun. 30, 2019USD ($) |
2027 Notes | |
Debt Instrument [Line Items] | |
Fair value of long term debt | $ 423.4 |
2024 Notes | |
Debt Instrument [Line Items] | |
Fair value of long term debt | 597.2 |
2024 Term Loan | |
Debt Instrument [Line Items] | |
Fair value of long term debt | $ 156.8 |
Leases and Other Finance Obli_3
Leases and Other Finance Obligations - Additional Information (Detail) $ in Millions | Jun. 30, 2019USD ($) |
Operating Leased Assets [Line Items] | |
Guarantees under lease of residual value | $ 5.6 |
Property, Plant and Equipment | Minimum | |
Operating Leased Assets [Line Items] | |
Total lease term | 1 year |
Renewal term | 1 year |
Property, Plant and Equipment | Maximum | |
Operating Leased Assets [Line Items] | |
Total lease term | 15 years |
Renewal term | 5 years |
Leases and Other Finance Obli_4
Leases and Other Finance Obligations - Summary of Right-of-use Assets and Lease Liabilities (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Assets | |
Operating lease right-of-use assets, net | $ 273,971 |
Finance lease right-of-use assets, net (included in property, plant and equipment, net) | 25,770 |
Total right-of-use assets | 299,741 |
Current | |
Current portion of operating lease liabilities | 60,576 |
Current portion of finance lease liabilities (included in current maturities of long-term debt) | 10,148 |
Noncurrent | |
Noncurrent portion of operating lease liabilities | 218,001 |
Noncurrent portion of finance lease liabilities (included in long-term debt, net of current maturities) | 7,199 |
Total lease liabilities | $ 295,924 |
Leases and Other Finance Obli_5
Leases and Other Finance Obligations - Summary of Total Lease Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Lease Cost [Abstract] | ||
Operating lease costs | $ 21,195 | $ 42,102 |
Amortization of finance lease right-of-use assets | 1,219 | 2,334 |
Interest on finance lease liabilities | 267 | 517 |
Variable lease costs | 4,049 | 8,081 |
Total lease costs | $ 26,730 | $ 53,034 |
Leases and Other Finance Obli_6
Leases and Other Finance Obligations - Summary of Future Maturities of Lease Liabilities (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Finance Leases | |
2019 (from July 1, 2019) | $ 6,054 |
2020 | 7,972 |
2021 | 3,811 |
2022 | 559 |
Total lease payments | 18,396 |
Less: amount representing interest | (1,049) |
Present value of lease liabilities | 17,347 |
Less: current portion | (10,148) |
Long-term lease liabilities, net of current portion | 7,199 |
Operating Leases | |
2019 (from July 1, 2019) | 39,393 |
2020 | 72,824 |
2021 | 62,087 |
2022 | 47,155 |
2023 | 34,123 |
Thereafter | 85,615 |
Total lease payments | 341,197 |
Less: amount representing interest | (62,620) |
Present value of lease liabilities | 278,577 |
Less: current portion | (60,576) |
Long-term lease liabilities, net of current portion | $ 218,001 |
Leases and Other Finance Obli_7
Leases and Other Finance Obligations - Summary of Weighted Average Lease Terms and Discount Rates (Detail) | Jun. 30, 2019 |
Weighted average remaining lease term (years) | |
Operating leases | 5 years 10 months 24 days |
Finance leases | 1 year 10 months 24 days |
Weighted average discount rate | |
Operating leases | 6.90% |
Finance leases | 5.90% |
Leases and Other Finance Obli_8
Leases and Other Finance Obligations - Summary of Future Maturities of Lease Obligations (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Capital Leases | |
2019 | $ 10,784 |
2020 | 5,392 |
2021 | 1,242 |
Total minimum lease payments | 17,418 |
Less: amount representing interest | (973) |
Present value of lease liabilities | 16,445 |
Less: current portion | (10,039) |
Long-term lease liabilities, net of current portion | 6,406 |
Operating Leases | |
2019 | 77,297 |
2020 | 63,633 |
2021 | 51,804 |
2022 | 37,054 |
2023 | 23,327 |
Thereafter | 57,000 |
Total minimum lease payments | $ 310,115 |
Leases and Other Finance Obli_9
Leases and Other Finance Obligations - Summary of Cash paid for Amounts Included in Measurement of Lease Liabilities as Well Supplemental Noncash Information (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 41,154 |
Operating cash flows from finance leases | 517 |
Financing cash flows from finance leases | 6,162 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 35,949 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 7,036 |
Leases and Other Finance Obl_10
Leases and Other Finance Obligations - Other Finance Obligations - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($)Property | |
Other Finance Obligations [Line Items] | |
Number of leased properties with single lessor | Property | 140 |
Other finance obligation, expiration year | 2021 |
Other finance obligation, renewal term | 5 years |
Total lease term | 30 years |
Master lease agreement description | Company is party to 140 individual property lease agreements with a single lessor as of June 30, 2019. These lease agreements have initial terms ranging from nine to 15 years (expiring through 2021) and renewal options in five-year increments providing for up to approximately 30-year total lease terms. |
Other finance obligations | $ 222.9 |
Payment of other finance obligation | $ 10.5 |
Minimum | |
Other Finance Obligations [Line Items] | |
Other finance obligation, term | 9 years |
Maximum | |
Other Finance Obligations [Line Items] | |
Other finance obligation, term | 15 years |
Leases and Other Finance Obl_11
Leases and Other Finance Obligations - Summary of Future Maturities of Other Finance Obligation (Detail) - Other Finance Obligations $ in Thousands | Jun. 30, 2019USD ($) |
Other Finance Obligations [Line Items] | |
2019 (from July 1, 2019) | $ 9,116 |
2020 | 18,148 |
2021 | 17,784 |
2022 | 17,668 |
2023 | 17,677 |
Thereafter | 220,570 |
Total | $ 300,963 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Summary of Property, Plant and Equipment | ||
Property, plant and equipment | $ 1,091,157 | $ 1,060,200 |
Less: accumulated depreciation | 415,847 | 390,125 |
Property, plant and equipment, net | 675,310 | 670,075 |
Land | ||
Summary of Property, Plant and Equipment | ||
Property, plant and equipment | 197,140 | 198,304 |
Buildings and Improvements | ||
Summary of Property, Plant and Equipment | ||
Property, plant and equipment | 359,966 | 358,411 |
Machinery and Equipment | ||
Summary of Property, Plant and Equipment | ||
Property, plant and equipment | 392,887 | 403,765 |
Furniture, Fixtures and Computer Equipment | ||
Summary of Property, Plant and Equipment | ||
Property, plant and equipment | 84,509 | 78,910 |
Construction in Progress | ||
Summary of Property, Plant and Equipment | ||
Property, plant and equipment | 28,609 | $ 20,810 |
Finance Lease Right-of-use Assets | ||
Summary of Property, Plant and Equipment | ||
Property, plant and equipment | $ 28,046 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | $ 19.9 | $ 18.6 | $ 39.7 | $ 36 |
Depreciation expense included in cost of goods | $ 4.9 | $ 4.8 | $ 9.8 | $ 9.2 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Schedule of Balances Held Under Other Finance Obligations (Detail) - Other Finance Obligations - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Assets held under other finance obligations | $ 255,733 | $ 288,210 |
Less: accumulated amortization | 16,612 | 21,786 |
Assets held under other finance obligations, net | 239,121 | 266,424 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Assets held under other finance obligations | 118,683 | 118,677 |
Buildings and Improvements | ||
Property Plant And Equipment [Line Items] | ||
Assets held under other finance obligations | $ 137,050 | 142,345 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Assets held under other finance obligations | $ 27,188 |
Employee Stock-Based Compensa_3
Employee Stock-Based Compensation - Additional Information (Detail) - 2014 Incentive Plan | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Time Based Restricted Stock Unit Grants | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
RSUs Granted | 745,000 |
Stock award granted vesting period | 3 years |
Weighted average grant date fair value, granted | $ / shares | $ 14.17 |
Time Based Restricted Stock Unit Grants | Share Based Compensation Award Vesting Over Three Years | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
RSUs Granted | 618,000 |
Time Based Restricted Stock Unit Grants | Share Based Compensation Award Tranche One | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock award vesting percentage | 33.00% |
Time Based Restricted Stock Unit Grants | Share Based Compensation Award Tranche Two | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock award vesting percentage | 33.00% |
Time Based Restricted Stock Unit Grants | Share Based Compensation Award Tranche Three | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock award vesting percentage | 33.00% |
Time Based Restricted Stock Unit Grants | Share Based Compensation Award Vesting On Fourth Anniversary | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
RSUs Granted | 73,000 |
Stock award granted vesting period | 4 years |
Time Based Restricted Stock Unit Grants | Share Based Compensation Award Vesting On First Anniversary | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
RSUs Granted | 54,000 |
Stock award granted vesting period | 1 year |
Performance Market and Service Condition Based Restricted Stock Unit Grants | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
RSUs Granted | 397,000 |
Stock award granted vesting period | 3 years |
Weighted average grant date fair value, granted | $ / shares | $ 14.42 |
Increased percentage of number of shares of additional common stock earned | 10.00% |
Decreased percentage of number of shares of additional common stock earned | 10.00% |
Performance Market and Service Condition Based Restricted Stock Unit Grants | Minimum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Percentage of number of shares of common stock earned | 0.00% |
Performance Market and Service Condition Based Restricted Stock Unit Grants | Maximum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Percentage of number of shares of common stock earned | 200.00% |
Employee Stock-Based Compensa_4
Employee Stock-Based Compensation - Restricted Stock Unit Valuation (Detail) - Performance Market and Service Condition Based Restricted Stock Unit Grants | 6 Months Ended |
Jun. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected volatility (company) | 38.30% |
Expected volatility (peer group median) | 33.20% |
Correlation between the company and peer group median | 0.5 |
Expected dividend yield | 0.00% |
Risk-free rate | 2.60% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate to Our Effective Rate for Continuing Operations (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal income tax | 4.40% | 5.10% | 4.40% | 5.10% |
Stock compensation windfall benefit | (0.40%) | (0.10%) | (0.30%) | (4.20%) |
Permanent differences and other | (2.20%) | (0.90%) | (1.90%) | (0.90%) |
Total effective rate for continuing operations | 22.80% | 25.10% | 23.20% | 21.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Jun. 30, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Outstanding letters of credit | $ 82.2 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019StoreStatesRegionSegment | |
Segment Reporting [Abstract] | |
Number of Locations | Store | 400 |
Number of states | States | 39 |
Number of geographic regions | Region | 9 |
Number of operating segments | Segment | 9 |
Segment Information - Schedule
Segment Information - Schedule of Reconciling Information by Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 1,904,523 | $ 2,089,888 | $ 3,535,823 | $ 3,790,324 |
Depreciation & Amortization | 23,814 | 24,768 | 47,390 | 47,587 |
Interest | 29,382 | 28,957 | 54,283 | 55,699 |
Income before income taxes | 86,263 | 75,602 | 133,253 | 101,004 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,843,314 | 2,026,534 | 3,421,801 | 3,677,385 |
Depreciation & Amortization | 17,806 | 18,536 | 35,387 | 35,493 |
Interest | 25,819 | 30,184 | 51,403 | 56,201 |
Income before income taxes | 107,275 | 91,369 | 159,036 | 130,120 |
Operating Segments | Northeast | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 350,671 | 357,258 | 637,268 | 641,650 |
Depreciation & Amortization | 3,256 | 3,523 | 6,469 | 6,690 |
Interest | 5,280 | 6,012 | 10,400 | 11,556 |
Income before income taxes | 18,674 | 12,110 | 25,450 | 13,253 |
Operating Segments | Southeast | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 419,085 | 454,734 | 808,564 | 844,187 |
Depreciation & Amortization | 3,100 | 2,922 | 6,147 | 5,508 |
Interest | 5,521 | 6,545 | 11,146 | 12,395 |
Income before income taxes | 24,281 | 16,266 | 41,349 | 27,839 |
Operating Segments | South | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 476,577 | 538,168 | 937,656 | 1,006,615 |
Depreciation & Amortization | 4,914 | 5,326 | 9,773 | 10,188 |
Interest | 5,859 | 6,740 | 11,795 | 12,689 |
Income before income taxes | 29,117 | 23,435 | 58,259 | 43,466 |
Operating Segments | West | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 596,981 | 676,374 | 1,038,313 | 1,184,933 |
Depreciation & Amortization | 6,536 | 6,765 | 12,998 | 13,107 |
Interest | 9,159 | 10,887 | 18,062 | 19,561 |
Income before income taxes | 35,203 | 39,558 | 33,978 | 45,562 |
All other | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 61,209 | 63,354 | 114,022 | 112,939 |
Depreciation & Amortization | 6,008 | 6,232 | 12,003 | 12,094 |
Interest | 3,563 | (1,227) | 2,880 | (502) |
Income before income taxes | $ (21,012) | $ (15,767) | $ (25,783) | $ (29,116) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2019USD ($)Company$ / sharesshares | May 31, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Feb. 28, 2019USD ($) | Dec. 31, 2018USD ($) | |
Subsequent Event [Line Items] | |||||||
Debt instrument carrying amount | $ 1,449,261,000 | $ 1,577,127,000 | |||||
Repurchase of common stock | $ 2,450,000 | $ 4,855,000 | |||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Repurchase of common stock, shares | shares | 360,000 | ||||||
Repurchase of common stock, average price per share | $ / shares | $ 16.88 | ||||||
Repurchase of common stock | $ 6,100,000 | ||||||
Maximum | |||||||
Subsequent Event [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 20,000,000 | ||||||
2027 Notes | |||||||
Subsequent Event [Line Items] | |||||||
Debt instrument carrying amount | $ 75,000,000 | $ 400,000,000 | $ 400,000,000 | ||||
Net percentage of proceeds from debt issuance | 104.50% | 100.00% | |||||
Purchase price, Percentage of principal amount | 101.00% | ||||||
2024 Notes | |||||||
Subsequent Event [Line Items] | |||||||
Debt instrument carrying amount | $ 578,923,000 | $ 696,361,000 | |||||
Purchase of notes, aggregate principal amount | $ 75,000,000 | $ 97,000,000 | |||||
Purchase price, Percentage of principal amount | 103.00% | ||||||
Sun State | |||||||
Subsequent Event [Line Items] | |||||||
Cash consideration for certain assets acquired | $ 42,900,000 | ||||||
Number of truss companies | Company | 3 |