Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 31, 2016 | Oct. 07, 2016 | |
Entity Registrant Name | New Enterprise Stone & Lime Co., Inc. | |
Entity Central Index Key | 1,527,032 | |
Current Fiscal Year End Date | --02-28 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock, Class A | ||
Entity Common Stock, Shares Outstanding | 500 | |
Common Stock, Class B | ||
Entity Common Stock, Shares Outstanding | 273,285 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Aug. 31, 2016 | Feb. 29, 2016 | [1] |
Current assets | |||
Cash and cash equivalents | $ 11,083 | $ 40,561 | |
Restricted cash | 1,401 | 22,711 | |
Accounts receivable, less reserves of $2,475 and $3,742 respectively | 133,145 | 48,296 | |
Inventories | 114,602 | 103,363 | |
Other current assets | 6,919 | 5,134 | |
Assets held for sale | 4,912 | 5,558 | |
Total current assets | 272,062 | 225,623 | |
Property, plant and equipment, net | 316,588 | 307,421 | |
Goodwill | 81,492 | 81,492 | |
Other intangible assets, net | 16,916 | 17,365 | |
Other noncurrent assets | 16,687 | 21,182 | |
Total assets | 703,745 | 653,083 | |
Current liabilities | |||
Current maturities of long-term debt | 6,223 | 3,155 | |
Accounts payable - trade | 46,948 | 33,481 | |
Accrued liabilities | 71,055 | 69,671 | |
Total current liabilities | 124,226 | 106,307 | |
Long-term debt, less current maturities | 713,086 | 664,517 | |
Deferred income taxes | 20,869 | 20,913 | |
Other noncurrent liabilities | 33,084 | 46,744 | |
Total liabilities | 891,265 | 838,481 | |
Commitments and contingencies (Note 2 and Note 8) | 0 | 0 | |
Deficit | |||
Accumulated deficit | (314,633) | (312,510) | |
Additional paid-in capital | 126,962 | 126,962 | |
Accumulated other comprehensive loss | (2,113) | (2,196) | |
Total New Enterprise Stone & Lime Co., Inc. deficit | (189,510) | (187,470) | |
Noncontrolling interest in consolidated subsidiaries | 1,990 | 2,072 | |
Total deficit | (187,520) | (185,398) | |
Total liabilities and deficit | 703,745 | 653,083 | |
Common Stock, Class A | |||
Deficit | |||
Common stock | 1 | 1 | |
Common Stock, Class B | |||
Deficit | |||
Common stock | $ 273 | $ 273 | |
[1] | Data derived from audited consolidated balance sheet as of February 29, 2016. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2016 | Feb. 29, 2016 |
Accounts receivable, reserves | $ 2,475 | $ 3,742 |
Common Stock, Class A | ||
Redeemable Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common Stock, Class B | ||
Redeemable Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Revenue | ||||
Construction materials | $ 104,895 | $ 115,853 | $ 174,443 | $ 185,731 |
Heavy/highway construction | 86,183 | 107,799 | 127,172 | 158,480 |
Traffic safety services and equipment | 26,877 | 22,903 | 51,735 | 43,060 |
Total revenue | 217,955 | 246,555 | 353,350 | 387,271 |
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | ||||
Construction materials | 48,223 | 62,762 | 91,639 | 111,603 |
Heavy/highway construction | 81,355 | 97,982 | 123,352 | 148,223 |
Traffic safety services and equipment | 20,072 | 16,956 | 39,375 | 32,824 |
Total cost of revenue | 149,650 | 177,700 | 254,366 | 292,650 |
Depreciation, depletion and amortization | 10,402 | 10,344 | 20,893 | 20,299 |
Asset impairment | 64 | 0 | 64 | 183 |
Selling, administrative and general expenses | 9,771 | 11,697 | 19,765 | 26,401 |
Gain on disposals of property, equipment and software | (459) | (3,733) | (850) | (3,833) |
Operating income (loss) | 48,527 | 50,547 | 59,112 | 51,571 |
Interest expense, net | (40,040) | (21,146) | (61,019) | (42,216) |
Income (loss) before income taxes | 8,487 | 29,401 | (1,907) | 9,355 |
Income tax expense (benefit) | 322 | 1,331 | (102) | 423 |
Net income | 8,165 | 28,070 | (1,805) | 8,932 |
Less: Net income attributable to noncontrolling interest | (160) | (137) | (318) | (272) |
Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. | 8,005 | 27,933 | (2,123) | 8,660 |
Unrealized actuarial gains and amortization of prior service costs, net of income taxes | 42 | 39 | 83 | 78 |
Comprehensive income | 8,207 | 28,109 | (1,722) | 9,010 |
Less: Comprehensive income attributable to noncontrolling interest | (160) | (137) | (318) | (272) |
Comprehensive income attributable to New Enterprise Stone & Lime Co., Inc. | $ 8,047 | $ 27,972 | $ (2,040) | $ 8,738 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | ||
Reconciliation of net loss to net cash from operating activities | |||
Net (loss) income | $ (1,805) | $ 8,932 | |
Adjustments to reconcile net (loss) income to net cash used in operating activities | |||
Depreciation, depletion and amortization | 20,893 | 20,299 | |
Asset impairment | 64 | 183 | |
Gain on disposals of property, equipment and software | (850) | (3,833) | |
Non-cash payment-in-kind interest accretion | 863 | 10,165 | |
Amortization and write-off of debt issuance costs | 6,646 | 2,164 | |
Deferred income taxes | (44) | 479 | |
Provision for bad debt | (325) | 84 | |
Changes in assets and liabilities: | |||
Accounts receivable | (84,524) | (99,981) | |
Inventories | (11,240) | (4,163) | |
Other assets | (2,790) | (1,650) | |
Accounts payable | 24,597 | 36,924 | |
Other liabilities | 1,124 | 16,265 | |
Net cash used in operating activities | (47,391) | (14,132) | |
Cash flows from investing activities | |||
Capital expenditures | (32,565) | (11,830) | |
Proceeds from sale of property, equipment and assets held for sale | 1,597 | 5,849 | |
Change in restricted cash | 21,310 | 154 | |
Net cash used in investing activities | (9,658) | (5,827) | |
Cash flows from financing activities | |||
Proceeds from issuance of short-term borrowings | 38,938 | 30,091 | |
Proceeds from issuance of long-term debt and other obligations | 455,200 | 0 | |
Repayments of long-term debt and other obligations | (443,101) | (1,709) | |
Debt issuance costs | (23,066) | 0 | |
Distribution to noncontrolling interest | (400) | (291) | |
Net cash provided by financing activities | 27,571 | 28,091 | |
Net (decrease) increase in cash and cash equivalents | (29,478) | 8,132 | |
Cash and cash equivalents | |||
Beginning of period | 40,561 | [1] | 13,293 |
End of period | $ 11,083 | $ 21,425 | |
[1] | Data derived from audited consolidated balance sheet as of February 29, 2016. |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 6 Months Ended |
Aug. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Company Activities New Enterprise Stone & Lime Co., Inc., a Delaware corporation, is a privately held, vertically integrated construction materials supplier and heavy/highway construction contractor in Pennsylvania and western New York and a national traffic safety services and equipment provider. Founded in 1924, the Company operates in three segments based upon the nature of its products and services: construction materials, heavy/highway construction and traffic safety services and equipment. As used herein, the terms “we,” “us,” “our,” “NESL,” or the “Company” refer to New Enterprise Stone & Lime Co., Inc., and/or one or more of its subsidiaries. Construction materials is comprised of aggregate production, including crushed stone and construction sand and gravel, hot mix asphalt production, and ready mixed concrete production. Heavy/highway construction includes heavy construction, blacktop paving and other site preparation services. The Company's heavy/highway construction operations are primarily supplied with construction materials from our construction materials segment. Traffic safety services and equipment consists primarily of sales, leasing and servicing of general and specialty traffic control and work zone safety equipment and devices to industrial construction end-users. Almost all of our products are produced and consumed outdoors. Normally, our highest sales and earnings are in the second and third fiscal quarters and our lowest are in the first and fourth fiscal quarters. As a result of this seasonality, our significant net working capital items, which are accounts receivable, inventories, accounts payable - trade and accrued liabilities, are typically higher as of interim period ends compared to fiscal year end. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements and notes included in this report have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly owned subsidiary companies, and their wholly owned subsidiary companies, and entities where the Company has a controlling equity interest. All adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in the unaudited Condensed Consolidated Financial Statements. The unaudited Condensed Consolidated Financial Statements do not include all of the information or disclosures required for a complete presentation in accordance with GAAP. The year-end condensed balance sheet data at February 29, 2016 was derived from audited financial statements, but does not include all disclosures required by GAAP. Accordingly, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 29, 2016 filed with the Securities and Exchange Commission (“SEC”) on May 23, 2016. The results for interim periods are not necessarily indicative of the results for the full fiscal year ending February 28, 2017 ("fiscal year 2017"). Related Party Transactions The Company has certain related party transactions, including: (i) an arrangement to lease its precast/prestressed structural concrete operations in Roaring Spring, PA to MacInnis Group, LLC, an entity controlled by a member of the Company's Board of Directors and stockholder; (ii) a less than 50% ownership interest in, and an aircraft lease with, Means to Go, LLC, a limited liability company in which several stockholders have an ownership interest; (iii) and a lease agreement with South Woodbury, L.P., a partnership which is owned for the benefit of certain affiliates of stockholders, for an office building in Roaring Spring, PA and an office building that is being used as the Company's corporate headquarters in New Enterprise, PA. The Company purchased $0.0 million of precast/prestressed beams and related services from MacInnis Group, LLC during the six months ended August 31, 2016 and primarily sold stone and ready mixed concrete in the amount of $0.7 million to MacInnis Group LLC during the six months ended August 31, 2016. Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries and entities where the Company has a controlling equity interest. All material intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain prior period items have been reclassified to conform with the fiscal year 2017 presentation. During the fiscal year 2017, the Company adopted Accounting Standards Update (ASU) No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," resulting in retrospective adjustments to our prior financial statements. Debt issuance costs of $9.0 million previously reported as other current assets and other noncurrent assets on the Condensed Consolidated Balance Sheet as of February 29, 2016 were reclassified as a reduction from long-term debt. Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Cash balances were restricted in certain consolidated subsidiaries for insurance requirements as well as collateral on outstanding letters of credit or rentals. The Company uses a cash pooling arrangement with a single financial institution with specific provisions for the right to offset positive and negative cash balances. The Company classifies net aggregate cash overdraft positions as other obligations within the current maturities of long-term debt, as applicable. Accounts Receivable Trade accounts receivable, less allowance for doubtful accounts, are recorded at the invoiced amount plus service charges related to past due accounts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable, including service charges. The Company determines the allowance based on historical write-off experience, specific identification based on a review of individual past due balances and their composition, and the nature of the customer. Account balances are written-off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company’s accounts receivable consists of the following: August 31, February 29, (In thousands) 2016 2016 Costs and estimated earnings in excess of billings $ 24,726 $ 7,728 Trade 102,597 38,651 Retainages 8,297 5,659 135,620 52,038 Allowance for doubtful accounts (2,475 ) (3,742 ) Accounts receivable, net $ 133,145 $ 48,296 Inventories Inventories are stated at the lower of cost or market. Cost is determined using either first-in, first-out (“FIFO”) or weighted average method based on the applicable category of inventories. The Company’s inventories consist of the following: August 31, February 29, (In thousands) 2016 2016 Crushed stone, agricultural lime and sand $ 79,028 $ 70,230 Safety equipment 16,678 14,762 Parts, tires and supplies 6,713 6,855 Raw materials 10,098 9,620 Building materials 1,291 1,167 Other 794 729 Total inventories $ 114,602 $ 103,363 Property, Plant and Equipment Property, plant and equipment are carried at cost. Assets under capital leases are stated at the lesser of the present value of minimum lease payments or the fair value of the leased item. Provision for depreciation is generally computed over the shorter of the estimated service lives or the lease term by the straight-line method. The Company’s property, plant and equipment consist of the following: August 31, February 29, (In thousands) 2016 2016 Limestone and sand acreage $ 145,569 $ 145,569 Land, buildings and building improvements 84,760 84,521 Crushing, prestressing and manufacturing plants 312,806 307,807 Contracting equipment vehicles and other 342,597 320,450 Construction in progress 14,102 14,884 Property, plant and equipment 899,834 873,231 Less: Accumulated depreciation and depletion (583,246 ) (565,810 ) Property, plant and equipment, net $ 316,588 $ 307,421 For the three months ended August 31, 2016 and 2015 , depreciation expense was $8.9 million and $9.0 million , respectively. For the six months ended August 31, 2016 and 2015 , depreciation expense was $18.3 million and $18.1 million , respectively. Assets Held for Sale The Company classifies assets as held for sale when all the following criteria are met: (i) management, having the authority to approve the action, commits to a plan to sell the asset; (ii) the asset is available for immediate sale in its present condition; (iii) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; (iv) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year, with a few exceptions; and (v) the asset is being actively marketed for sale at a price that is reasonable, in relation to its current fair value. As of August 31, 2016 and February 29, 2016 , assets held for sale consists primarily of land and certain operations at the Company's Wescosville, PA location and miscellaneous property in the amount of $4.9 million and $5.6 million , respectively. The Company expects to complete the sale of the remaining Wescosville, PA assets during the fiscal year ending February 28, 2017; however, the sale of these assets requires certain regulatory approvals that could delay the sale beyond February 28, 2017. During the six months ended August 31, 2016 , the Company finalized its sale of certain properties previously recorded as Assets Held for Sale at February 29, 2016 for $0.9 million in cash. The Company recorded a gain of approximately $0.3 million and recorded additional impairment of approximately $0.1 million on these sales. Use of Estimates The preparation of the Condensed Consolidated Financial Statements requires management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the carrying amount of property, plant and equipment; valuation of receivables, inventories, goodwill and other intangible assets; recognition of revenue and loss contract reserves under the percentage-of-completion method; assets and obligations related to employee benefit plans; asset retirement obligations; income tax valuation; and self-insurance reserves. Actual results could differ from those estimates and those differences could be material . Goodwill and Other Intangible Assets Goodwill Goodwill is tested for impairment on an annual basis or more frequently whenever events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The impairment test for goodwill is a two-step process. Under the first step, the fair value of the reporting unit is compared with its carrying value. If the fair value of the reporting unit is less than its carrying value, an indication of impairment exists and the reporting unit must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. If the fair value of the reporting unit exceeds its carrying value under the first step, step two does not need to be performed. Our reporting units were determined based on our organizational structure, considering the level at which discrete financial information for businesses is available and regularly reviewed. The Company has three operating segments, which is the basis for determining its reporting units, organized around its three lines of business: (i) construction materials; (ii) heavy/highway construction; and (iii) traffic safety services and equipment. Construction materials include three reporting units within the operating segment based on geographic location. The operating segment of traffic safety services and equipment consists of one reporting unit within the segment based upon the similar economic characteristics of its operations. Our annual goodwill impairment analysis takes place as of fiscal year end. The estimated fair value of each of the reporting units was in excess of its carrying value, even after conducting various sensitivity analysis on key assumptions, such that no adjustment to the carrying values of goodwill was required as of February 29, 2016 , unless events or circumstances indicate that it is more likely than not that the fair value of a reporting unit has been reduced below its carrying value. There were no impairment indicators noted during the six months ended August 31, 2016 . Other Intangible Assets Other intangible assets consist of technology, customer relationships and trademarks acquired in previous acquisitions. The technology, customer relationships and trademarks are amortized over a straight-line basis. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company recorded amortization expense related to intangible assets other than goodwill of $0.2 million during the three months ended August 31, 2016 and 2015, and $0.4 million and $0.5 million during the six months ended August 31, 2016 and 2015, respectively. Other Noncurrent Assets The Company’s other noncurrent assets consist of the following: August 31, February 29, (In thousands) 2016 2016 Capitalized software (net of accumulated amortization of $5,376 and $4,625, respectively) $ 6,400 $ 7,150 Deferred stripping costs 4,810 5,017 Other 5,477 9,015 Total other noncurrent assets $ 16,687 $ 21,182 The amortization expense related to capitalized software was $0.4 million and $0.3 million for the three months ended August 31, 2016 and 2015, respectively, and $0.7 million and $0.5 million for the six months ended August 2016, and 2015, respectively. Revenue Recognition The Company recognizes revenue on construction contracts under the percentage-of-completion method of accounting, as measured by the cost incurred to date over estimated total cost. Our construction contracts are primarily fixed-price contracts. The typical contract life cycle for these projects can be up to two to four years in duration. Changes in job performance, job conditions, estimated profitability and final contract settlements may result in revisions to revenues and costs. Revenue from contract change orders is recognized when the contract owner has agreed to the change order with the customer and the related costs are incurred. We do not recognize revenue on a basis of contract claims. Provisions for estimated losses on uncompleted contracts are made for the full amount of estimated loss in the period in which evidence indicates that the estimated total cost of a contract exceeds its estimated total revenue and are recorded as an additional cost (rather than as a reduction of revenue). Contract costs include all direct material, labor, subcontract and other costs and those indirect costs related to contract performance, such as indirect salaries and wages, equipment repairs and depreciation, insurance and payroll taxes. Administrative and general expenses are charged to expense as incurred. Costs and estimated earnings in excess of billings on uncompleted contracts represent the excess of contract revenue recognized to date over billings to date. Billings in excess of costs and estimated earnings on uncompleted contracts represent the excess of billings to date over the amount of revenue recognized to date. As of August 31, 2016 and February 29, 2016 , such amounts are included in accounts receivable (Note 1, “Nature of Operations and Summary of Significant Accounting Policies”) and accrued liabilities (Note 3, “Accrued Liabilities”), respectively, in the Condensed Consolidated Balance Sheets. The Company recorded a charge included in operating income of approximately $3.5 million and $4.3 million related to the revision of costs to complete on certain contracts during the three and six months ended August 31, 2016 , respectively. The Company generally recognizes revenue on the sale of construction materials when the customer takes title and assumes risk of loss. Typically, this occurs when products are shipped. The Company recognizes equipment rental revenue on a straight-line basis over the specific daily, weekly or monthly terms of the agreements. Revenues from the sale of equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer. Other revenue consists of sales of miscellaneous materials, scrap and other products that do not fall into our other primary lines of business. The Company generally recognizes revenue when the customer takes title and assumes risk of loss, the price is fixed or determinable and collection is reasonably assured. Impairment of Definite-Lived Long-Lived Assets Long-lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. The Company considers an asset group as the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. For our construction materials and heavy/highway construction operations, the lowest level of largely independent identifiable cash flows is at the regional level, which collectively serves a local market. Each region shares and allocates its material production, resources, equipment and business activity among the locations within the region in generating cash flows. The Company is aligned into three regions, the Eastern Region, which includes Lancaster, Pennsylvania, and Northeastern Pennsylvania, the Western Region, which includes Central Pennsylvania, Chambersburg, Shippensburg, and Gettysburg Pennsylvania and the Northern Region, which includes Buffalo, New York and the Port of Buffalo. The construction materials regions’ long-lived assets predominantly include limestone and sand acreage and crushing and the heavy/highway construction region’s long lived assets predominantly include contracting equipment and vehicles. The traffic safety services and equipment business includes two asset groups, distinguished between its retail sales and distribution as one asset group and its manufacturing and assembly as the second asset group. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount exceeds the fair value of the asset group. Recently Issued and Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Measurement of Credit Losses on Financial Instruments , which amends guidance on the impairment of financial instruments. The new guidance estimates credit losses based on expected losses, modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2019, and interim reporting periods within those annual reporting periods. Early adoption is permitted for annual reporting periods beginning after December 15, 2018. While we are still evaluating the impact of ASU 2016-13, we do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, Leases , which amends existing accounting standards for lease accounting and adds additional disclosures about leasing arrangements. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement and presentation of cash flow in the statement of cash flows. This ASU is effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those annual reporting periods. Early adoption is permitted and modified retrospective application is required. While we are still evaluating the impact of ASU 2016-02, we do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements. In January 2016 the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which amends certain aspects of current guidance on the recognition, measurement and disclosure of financial instruments. Among other changes, this ASU requires most equity investments be measured at fair value. Additionally, the ASU eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value for instruments not recognized at fair value in our financial statements. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual reporting periods. While we are still evaluating the impact of ASU 2016-01, we do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements. In September 2015, the FASB Issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments -ASU 2015-16 was issued to require an acquirer to recognize measurement-period adjustments to provisional amounts in the reporting period in which the adjustments are determined. Previously, measurement-period adjustments were retrospectively applied. As an alternative to restating the prior periods for the measurement-period adjustments, the ASU requires acquirers to present separately on the face of the earnings statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustments to the provisional amounts had been recognized as of the acquisition date. This ASU is to be applied prospectively to adjustments to provisional amounts that occur after December 15, 2015. Early adoption is permitted. This standard was adopted by the Company and required no adjustment to the financial statements. In July 2015, the FASB issued ASU 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient. The amendments in all three parts of this Update are effective for all entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. An entity should apply the amendments in Parts I and II retrospectively for all financial statements presented. An entity should apply the amendments on Part III prospectively. This standard was adopted by the Company and required no adjustment to the financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Effective for public business entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2016. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016 and for interim periods within fiscal years beginning after December 15, 2017. The amendments in this Update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-04, Compensation - Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets. Effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016 and for interim periods within fiscal years beginning after December 15, 2017. Early adoption of the amendments in this update are permitted. This standard was adopted by the Company and required no adjustment to the financial statements. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2015 and for interim periods within fiscal years beginning after December 15, 2016. Early adoption of the amendments in this update are permitted for financial statements that have not been previously issued. The adoption of the ASU, which had a later amendment, resulted in a reclassification of our other current and noncurrent assets to long-term debt in our Consolidated Balance Sheet as of February 29, 2016. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. Effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016 and for interim periods within fiscal years beginning after December 15, 2017. This standard was adopted by the Company and required no adjustment to the financial statements. In January 2015, the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items: Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. Effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This standard was adopted by the Company and required no adjustment to the financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The standards requires an entity's management to evaluate whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. Public entities are required to apply standards for annual reporting periods ending after December 15, 2016, and interim periods thereafter. Early application is permitted. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09, Revenue From Contracts With Customers , which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This ASU provides a more robust framework for addressing revenue issues and expands required revenue recognition disclosures. This ASU (as later amended) is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual reporting periods. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this standard on our Consolidated Financial Statements. |
Risks and Uncertainties
Risks and Uncertainties | 6 Months Ended |
Aug. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | Risks and Uncertainties Our business is heavily impacted by several factors which are outside the control of management, including the overall health of the economy, the level of commercial and residential construction, the level of federal, state and local publicly funded construction projects and seasonal variations generally attributable to weather conditions. These factors impact the amount and timing of our revenues and our overall performance. The Company maintains credit facilities that contain certain financial maintenance and other covenants (Note 4, "Long-Term Debt"). In the past, the Company has failed to meet certain operating performance measures as well as the financial covenant requirements set forth under its previous credit facilities, which resulted in the need to obtain several amendments, and should the Company fail in the future, the Company cannot guarantee that it will be able to obtain such amendments. A failure to obtain such amendments could result in an acceleration of its indebtedness under the Credit Facilities and a cross-default under our other indebtedness, including the $250.0 million 11% senior notes due 2018 (the “Notes”) and the $450 million 9% term loan due 2021 (the "New Term Loan"). If the lenders were to accelerate the due dates of our indebtedness or if current sources of liquidity prove to be insufficient, there can be no assurance that the Company would be able to repay or refinance such indebtedness or to obtain sufficient funding. This could require the Company to restructure or alter its operations and capital structure. We believe we have sufficient financial resources, including cash and cash equivalents, cash from operations and amounts available for borrowing under our Revolving Credit Facility, to fund our business and operations, including capital expenditures and debt service obligations, for at least the next twelve months. At August 31, 2016 , the Company was in compliance with all of its financial covenants. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Aug. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following: August 31, February 29, (In thousands) 2016 2016 Insurance $ 24,483 $ 24,732 Interest 19,329 25,578 Payroll and vacation 9,762 6,385 Withholding taxes 2,035 173 Billings in excess of costs and estimated earnings on uncompleted contracts 6,889 3,504 Contract expenses * 3,537 1,684 Other 5,020 7,615 Total accrued liabilities $ 71,055 $ 69,671 * Included within contract expenses is $0.3 million and $0.6 million of provision for loss contracts as of August 31, 2016 and February 29, 2016 , respectively. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Aug. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The Company's long-term debt consists of the following: August 31, February 29, (In thousands) 2016 2016 RCA ($33.9 million and $80.6 million available as of August 31, 2016 and February 29, 2016, respectively) $ 38,938 $ — 11% Notes, due 2018 235,000 250,000 13% Secured Notes, due 2018 — 345,353 Term Loan, $450 million, interest rate of 9%, due 2021 450,000 — Term Loans, interest rate of 8% — 70,000 Other obligations 21,514 11,319 Unamortized discounts and debt issuance costs (26,143 ) (9,000 ) Total debt 719,309 667,672 Less: Current portion (6,223 ) (3,155 ) Total long-term debt $ 713,086 $ 664,517 Our total debt is presented in the table above net of unamortized discounts from par and unamortized deferred debt issuance costs. Discounts and debt issuance costs are amortized using the effective interest method over the contractual terms or estimated life of the respective notes. Amortization of discounts and debt issuance costs totaled $1.9 million and $1.1 million of interest expense for the three months ended August 31, 2016 and 2015, respectively and $3.0 million and $2.2 million for the six months ended August 31, 2016 and 2015. Refinancing In July 2016, the Company entered into a Term Loan Credit and Guaranty Agreement (the “New Term Loan Agreement”) among the Company, certain of its subsidiaries as guarantors, the lenders from time to time party thereto and Cortland Capital Market Services LLC (“Cortland”) as administrative agent and collateral agent (the “Term Loan Agent”), providing for a term loan in the amount of $450.0 million New Term Loan. The Company utilized the funds from this loan to prepay its 13% Senior Notes and its $70 million Term Loan. The Company also amended its Revolving Credit Agreement (“RCA”). As a result of the refinancing and amendments, discounts and deferred financing fees associated with retired debt of $3.6 million were written off to interest expense. The Company recorded additional financing fees of $23.8 million which is included in the unamortized discounts and debt issuance costs as a component of long term debt on the balance sheet. $450 million Term Loan The obligations under the New Term Loan agreement are secured by substantially all of the assets of the Company and its subsidiaries. Priorities on various categories of collateral are allocated between the Company’s Revolving Credit Facility, amended as described below, and the New Term Loan pursuant to an Intercreditor Agreement. The New Term Loan will mature on July 8, 2021, unless the Company fails to refinance its 11% Senior Notes (the “Notes”) due 2018 by June 1, 2018 (in which case the New Term Loan will mature on June 1, 2018). Outstanding balances under the New Term Loan Agreement will bear interest at a rate per annum equal to, at the Company’s option, either (a) a base rate plus 7.0% or (b) a LIBOR rate plus 8.0% with a LIBOR floor of 1.0% . The Company is required to make quarterly interest payments beginning October 2016. In the event of a voluntary or mandatory prepayment or acceleration of the New Term Loan, the Company will in certain circumstances set forth in the New Term Loan Agreement be required to pay a prepayment premium equal to the Prepayment Premium (as defined in the New Term Loan Agreement), Special Voluntary Prepayment Applicable Premium (as defined in the New Term Loan Agreement) or Specified Prepayment Premium (as defined in the New Term Loan Agreement), as applicable. The applicable prepayment premium due depends on the timing and circumstances of such voluntary or mandatory prepayment or acceleration. As of the end of each fiscal quarter, the Company will be required to have trailing twelve-month EBITDA in an amount not less than certain amounts specified in the New Term Loan agreement and RCA amendment (as defined below). For the trailing twelve-month period ending on May 31, 2016, and then ending on each August 31, November 30, February 28 (or February 29, if a leap year) and May 31 thereafter, for the term of the New Term Loan, maintain EBITDA of not less than $80.0 million . The Company is limited to $45.0 million in capital expenditures for each fiscal year. The total amount of capital expenditures may be reduced by up to $5.0 million based upon the sale of certain assets. The New Term Loan Agreement includes other customary affirmative and negative covenants that, subject to significant exceptions, limit the ability of the Company and its subsidiaries to undertake certain actions, including, among other things, limitations on (i) the incurrence of indebtedness and liens, (ii) asset sales, (iii) dividends and other payments with respect to capital stock, (iv) acquisitions, investments and loans, (v) affiliate transactions, (vi) altering the business, (vii) prepaying indebtedness, (viii) making capital expenditures, and (ix) providing negative pledges to third parties. The New Term Loan is guaranteed on a full and unconditional, and joint and several, basis by certain of the Company’s existing and future domestic subsidiaries (the “Guarantors” as described in Note 11, “Condensed Issuer, Guarantor and Non-Guarantor Financial Information”). In addition, the New Term Loan Agreement contains certain customary conditions to lending, representations and warranties and events of default, including, among other things, (i) payment defaults, (ii) cross-defaults to other material indebtedness, (iii) covenant defaults, (iv) loss of custody or control of property, (v) certain events of bankruptcy, (vi) the occurrence of a material adverse effect, (vii) material judgments, (viii) change in control, (ix) seizures of material property, (x) involuntary interruptions of material operations, and (xi) certain material events with respect to pension plans. Revolving Credit Agreement (“RCA”) In conjunction with the refinancing, the Company obtained certain amendments to the RCA. The interest rate margins on the RCA were reduced by 1.25% from 4.0% to 2.75% for LIBOR based on borrowings and by 1.25% from 3.0% to 1.75% for base rate borrowings. Borrowings based in LIBOR continue to have a floor of 1.0% . The unused portion of the revolving credit commitment is subject to a commitment fee at a rate of 0.5% . The weighted average interest rate on the RCA was 5.68% and 6.58% as of August 31, 2016 and 2015, respectively. The Credit Facilities contain a springing maturity date based upon certain events with a final maturity date of February 12, 2019. As part of the amendments to the RCA, the availability block and cash dominion requirements were removed. In addition, the aggregate amount of the letter of credit sub-limit was increased by $15 million for insurance and surety purposes. The Company is no longer subject to a fixed charge coverage ratio amount under the new amendments. However, the Company is subject to a spring fixed charge coverage ratio if the total availability of the RCA as defined in the Credit Facilities is at any time less than $20.0 million . As of August 31, 2016 , the Company was in compliance with all of its covenant requirements. 11% Notes Due 2018 In August 2010, the Company sold $250.0 million aggregate principal amount of the Notes. Interest on the Notes is payable semi-annually in arrears on March 1 and September 1 of each year. The proceeds from the issuance of Notes were used to pay down debt. In connection with the issuance of the Notes, the Company incurred costs of approximately $8.3 million which were deferred and are being amortized on the effective interest method through the 2018 maturity date. On or after September 1, 2016, the Company is permitted to redeem all or a part of the Notes at par. If the Company experiences a change of control, as outlined in the indenture governing the Notes, the Company may be required to offer to purchase the Notes at a purchase price equal to 101.0% of the principal amount, plus accrued interest. The Notes are guaranteed on a full and unconditional, and joint and several, basis by certain of the Company’s existing and future domestic subsidiaries (the “Guarantors” as described in Note 11, “Condensed Issuer, Guarantor and Non-Guarantor Financial Information”). The indenture governing the Notes contains affirmative and negative covenants that, among other things, limit the Company’s and its subsidiaries’ ability to incur additional debt, make restricted payments, dividends or other payments from subsidiaries to the Company, create liens, engage in the sale or transfer of assets and engage in transactions with affiliates. The Company is not required to maintain any affirmative financial ratios or covenants under the indenture governing the Notes. In August 2016, the Company purchased $15.0 million of the $250.0 million outstanding 11% Senior Notes Due 2018 reducing the outstanding debt to $235.0 million . Land, Equipment and Other Obligations The Company has various notes, mortgages, leases and other financing arrangements resulting from the purchase of principally land, machinery and equipment. All loans provide for at least annual payments and are principally secured by the land and equipment acquired. Capital lease arrangements typically provide for monthly payments, some of which include residual value guarantees if the Company were to terminate the arrangement during certain specified periods of time for each underlying asset under lease. The Company incurred $5.2 million of new obligations at 6.0% for 45 months secured by certain equipment, and $6.5 million for leases of new equipment in the six months ended August 31, 2016 . |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | ncome Taxes The income tax provisions for all periods consist of federal and state taxes that are based on the estimated effective tax rates applicable for the full years ending February 28, 2017 and February 29, 2016 , after giving effect to items specifically related to the interim periods. The effective income tax rates for the three months ended August 31, 2016 and 2015 were 3.8% and 4.5% , respectively, resulting in tax expense of $0.3 million and $1.3 million , respectively. The effective income tax rates for the six months ended August 31, 2016 and 2015 were 5.3% and 4.5% , respectively, resulting in tax benefit of $0.1 million and tax expense of $0.4 million , respectively. The principal factor affecting the comparability of the effective income tax rates for the respective periods is the Company’s assessment of the realizability of the current year projected income tax loss. The Company recorded a valuation allowance on the portion of the current year federal and state income tax losses that it believes are not more likely than not to be realized. The Company’s determination of its valuation allowance considers the impact of utilization of alternative minimum tax net operating loss and alternative minimum tax credit carry forwards. Cash paid for income taxes was immaterial for the three and six months ended August 31, 2016 and 2015 , primarily as a result of net operating losses. |
Retirement and Benefit Programs
Retirement and Benefit Programs | 6 Months Ended |
Aug. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement and Benefit Programs | Retirement and Benefit Programs Substantially all employees are covered by a defined contribution plan, a defined benefit plan, a collectively bargained multiemployer plan, or a noncontributory profit sharing plan. The expense associated with these programs is included within Cost of revenue and Selling, administrative and general expenses in the amounts of $2.0 million and $0.1 million , respectively, for the three months ended August 31, 2016 , and $1.4 million and $0.1 million , respectively, for the three months ended August 31, 2015 . The expense associated with these programs is included within Cost of revenue and Selling, administrative and general expenses in the amounts of $3.5 million and $0.3 million , respectively, for the six months ended August 31, 2016 , and $2.9 million and $0.2 million , respectively for the six months ended August 31, 2015 . The Company has two defined benefit pension plans covering certain union employees covered by labor union contracts. The benefits are based on years of service. Actuarial gains and losses are generally amortized over the average remaining service life of the Company’s active employees. Net periodic pension expense recognized was as follows: Three Months Ended Six Months Ended (In thousands) 2016 2015 2016 2015 Net periodic benefit cost Service cost $ 62 $ 78 $ 124 $ 156 Interest cost 100 93 200 186 Expected return on plan assets (135 ) (155 ) (270 ) (310 ) Amortization of prior service cost 10 13 20 26 Recognized net actuarial loss 60 54 120 108 Total pension expense $ 97 $ 83 $ 194 $ 166 The Company does not expect to make contributions to the plans during the fiscal year ending February 28, 2017. |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 6 Months Ended |
Aug. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Other Noncurrent Liabilities The Company's other noncurrent liabilities consist of: August 31, February 29, (In thousands) 2016 2016 Reclamation costs $ 19,737 $ 19,116 Executive deferred compensation liability 4,895 4,989 PIK accrued interest — 9,497 Other 8,452 13,142 $ 33,084 $ 46,744 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Aug. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company has commitments, lawsuits, claims and contingent liabilities. The ultimate disposition of these matters is not expected to have a material adverse effect on the Company’s consolidated financial position, statement of comprehensive loss or liquidity. The Company maintains a self-insurance program for workers’ compensation (Pennsylvania employees) coverage, which is administered by a third party management company. The Company’s self-insurance retention is limited to $1.0 million per claim with the excess covered by workers’ compensation excess liability insurance. The Company is required to maintain a $2.4 million surety bond with the Commonwealth of Pennsylvania. Self-insurance costs are accrued based upon the aggregate of the liability for reported claims and an estimated liability for claims incurred but not reported. Additionally, the Company is required to and does provide a letter of credit in the amount of $0.1 million to guarantee payment of the deductible portion of its liability coverage which existed prior to January 1, 2008. Prior to January 1, 2016, the Company maintained a captive insurance company, Rock Solid Insurance Company (“Rock Solid”), for workers’ compensation (non-Pennsylvania employees), general liability, auto, health, and property coverage. During the three months ended August 31, 2016, the company issued a $15.0 million letter of credit to an insurer for the deductible portion of its liability coverage. Prior to the issuance of the letter of credit, the Company maintained a cash Collateral Trust Agreement in the amount of $15.5 million recorded as restricted cash in our Condensed Consolidated Balance Sheets as of February 29, 2016 . Reserves for retained losses within Rock Solid, which are recorded in accrued liabilities in our Condensed Consolidated Balance Sheets, were approximately $15.4 million and $16.0 million as of August 31, 2016 and February 29, 2016 , respectively. Included in other noncurrent assets is approximately $4.0 million and $7.0 million as of August 31, 2016 and February 29, 2016 , respectively, for recoverable amounts from insurance companies for claims in excess of deductibility. Liabilities associated with amounts that are payable by insurance companies of approximately $4.0 million and $7.0 million were recorded in other noncurrent liabilities in our Condensed Consolidated Balance Sheets as of August 31, 2016 and February 29, 2016 , respectively. |
Business Segments
Business Segments | 6 Months Ended |
Aug. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company reports information about its operating segments using the “management approach,” which is based on the way management organizes and reports the segments within the organization for making operating decisions and assessing performance to the chief operating decision maker. The Company’s three reportable segments are: (i) construction materials; (ii) heavy/highway construction; and (iii) traffic safety services and equipment. Almost all activity of the Company is domestic. Segment information includes both inter-segment and certain intra-segment activities. A description of the services and product offerings within each of the Company’s segments is provided below. The Company reviews earnings of the segments principally at the operating profit level and accounts for inter-segment and certain intra-segment sales at prices that range from negotiated rates to those that approximate fair market value. Segment operating profit consists of revenue less operating costs and expenses. Corporate and unallocated costs include those administrative and financial costs which are not allocated to segment operations and are excluded from segment operating profit. These costs include corporate administrative functions, unallocated corporate functions and other business line administrative functions. The following is a summary of certain financial data for the Company’s operating segments: Three Months Ended Six Months Ended (In thousands) 2016 2015 2016 2015 Revenue Construction materials $ 162,508 $ 178,280 $ 255,441 $ 270,146 Heavy/highway construction 86,183 107,799 127,172 158,480 Traffic safety services and equipment 30,737 27,336 59,073 51,498 Segment totals 279,428 313,415 441,686 480,124 Eliminations (61,473 ) (66,860 ) (88,336 ) (92,853 ) Total revenue $ 217,955 $ 246,555 $ 353,350 $ 387,271 Operating income Construction materials $ 49,135 $ 48,996 $ 67,395 $ 62,656 Heavy/highway construction 3,409 8,203 1,198 6,991 Traffic safety services and equipment 3,720 3,207 6,869 4,816 Corporate and unallocated (7,737 ) (9,859 ) (16,350 ) (22,892 ) Total operating income $ 48,527 $ 50,547 $ 59,112 $ 51,571 Three Months Ended Six Months Ended (In thousands) 2016 2015 2016 2015 Depreciation, depletion and amortization Construction materials $ 7,337 $ 6,858 $ 14,683 $ 13,523 Heavy/highway construction 1,455 1,880 2,996 3,577 Traffic safety services and equipment 1,280 1,261 2,552 2,496 Corporate and unallocated 330 345 662 703 Total depreciation, depletion and amortization $ 10,402 $ 10,344 $ 20,893 $ 20,299 Expenditures for assets (1) Construction materials $ 14,547 $ 4,779 $ 23,879 $ 11,490 Heavy/highway construction 1,068 1,044 1,735 3,647 Traffic safety services and equipment 1,866 1,065 3,076 2,548 Corporate and unallocated 99 12 129 119 Total expenditures for assets $ 17,580 $ 6,900 $ 28,819 $ 17,804 ( 1) Includes $0.0 million and $0.4 million of deferred stripping and $0.0 million and $0.0 million of capitalized software for the three months ended August 31, 2016 and 2015 , respectively. Includes $0.0 million and $0.5 million of deferred stripping and $0.0 million and $0.2 million of capitalized software for the six months ended August 31, 2016 and 2015 , respectively. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information (Notes) | 6 Months Ended |
Aug. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information The following table shows the supplemental information related to our cash flows for the six months ended: (In thousands) August 31, 2016 August 31, 2015 Capital lease and other non-cash obligations incurred $ 8,606 $ 5,974 Cash paid for interest, net of amounts capitalized 60,588 27,898 |
Condensed Issuer, Guarantor and
Condensed Issuer, Guarantor and Non Guarantor Financial Information | 6 Months Ended |
Aug. 31, 2015 | |
Condensed Issuer, Guarantor and Non Guarantor Financial Information | |
Condensed Issuer, Guarantor and Non Guarantor Financial Information | Condensed Issuer, Guarantor and Non Guarantor Financial Information The Company’s Notes are guaranteed by certain subsidiaries. Except for Rock Solid, NESL, II LLC, and Kettle Creek Partners GP, LLC, all existing consolidated subsidiaries of the Company are 100% owned and provide a joint and several, full and unconditional guarantee of the securities. These entities include Gateway Trade Center Inc., EII Transport Inc., Protections Services Inc., Work Area Protection Corp., SCI Products Inc., ASTI Transportation Systems, Inc., and Precision Solar Controls Inc. (“Guarantor Subsidiaries”). There are no significant restrictions on the parent Company’s ability to obtain funds from any of the Guarantor Subsidiaries in the form of a dividend or loan. Additionally, there are no significant restrictions on a Guarantor Subsidiary’s ability to obtain funds from the parent Company or its direct or indirect subsidiaries. Certain other wholly owned subsidiaries and consolidated partially owned partnerships do not guarantee the Notes. These entities include Rock Solid (RSIC), South Woodbury, L.P., NESL, II LLC, Kettle Creek Partners L.P., and Kettle Creek Partners GP, LLC (“Non Guarantors”). Beginning January 1, 2016, RSIC was inactive. The following condensed consolidating balance sheets, statements of comprehensive loss and statements of cash flows are provided for the Company, all Guarantor Subsidiaries and Non Guarantors. The information has been presented as if the parent Company accounted for its ownership of the Guarantor Subsidiaries and Non Guarantors using the equity method of accounting. Condensed Consolidating Balance Sheet at August 31, 2016 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Assets Current assets Cash and cash equivalents $ 10,933 $ (998 ) $ 1,148 $ — $ 11,083 Restricted cash 1,348 53 — — 1,401 Accounts receivable, net 111,580 21,551 14 — 133,145 Inventories 97,905 16,697 — — 114,602 Net investment in lease — — 1,730 (1,730 ) — Other current assets 6,225 694 — — 6,919 Assets held for sale 4,912 — — — 4,912 Total current assets 232,903 37,997 2,892 (1,730 ) 272,062 Property, plant and equipment, net 291,294 25,294 4,110 (4,110 ) 316,588 Goodwill 75,647 5,845 — — 81,492 Other intangible assets, net 6,753 10,163 — — 16,916 Investment in subsidiaries 93,353 — — (93,353 ) — Intercompany receivables 2,169 (2,169 ) — — — Other noncurrent assets 15,918 769 — — 16,687 Total Assets $ 718,037 $ 77,899 $ 7,002 $ (99,193 ) $ 703,745 Liabilities and (Deficit) Equity Current liabilities Current maturities of long-term debt $ 7,031 $ — $ 922 $ (1,730 ) $ 6,223 Accounts payable - trade 37,289 9,372 287 — 46,948 Accrued liabilities 69,821 1,234 — — 71,055 Total current liabilities 114,141 10,606 1,209 (1,730 ) 124,226 Intercompany payables 15,477 (15,511 ) 34 — — Long-term debt, less current maturities 709,591 — 3,495 — 713,086 Obligations under capital leases, less current maturities 4,110 — — (4,110 ) — Deferred income taxes 31,508 (10,639 ) — — 20,869 Other noncurrent liabilities 32,720 364 — — 33,084 Total liabilities 907,547 (15,180 ) 4,738 (5,840 ) 891,265 (Deficit) equity New Enterprise Stone & Lime Co., Inc. (deficit) equity (189,510 ) 93,079 274 (93,353 ) (189,510 ) Noncontrolling interest — — 1,990 — 1,990 Total (deficit) equity (189,510 ) 93,079 2,264 (93,353 ) (187,520 ) Total liabilities and (deficit) equity $ 718,037 $ 77,899 $ 7,002 $ (99,193 ) $ 703,745 Condensed Consolidating Balance Sheet at February 29, 2016 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Assets Current assets Cash and cash equivalents $ 39,380 $ (125 ) $ 1,306 $ — $ 40,561 Restricted cash 22,658 53 — — 22,711 Accounts receivable, net 35,663 12,619 14 — 48,296 Inventories 88,602 14,761 — — 103,363 Net investment in lease — — 1,344 (1,344 ) — Other current assets 4,270 864 — — 5,134 Assets held for sale 5,558 — — — 5,558 Total current assets 196,131 28,172 2,664 (1,344 ) 225,623 Property, plant and equipment, net 286,854 20,567 4,864 (4,864 ) 307,421 Goodwill 75,647 5,845 — — 81,492 Other intangible assets, net 6,825 10,540 — — 17,365 Investment in subsidiaries 83,794 — — (83,794 ) — Other noncurrent assets 16,691 838 3,653 — 21,182 Total Assets $ 665,942 $ 65,962 $ 11,181 $ (90,002 ) $ 653,083 Liabilities and (Deficit) Equity Current liabilities Current maturities of long-term debt $ 3,581 $ — $ 918 $ (1,344 ) $ 3,155 Accounts payable - trade 29,239 3,955 287 — 33,481 Accrued liabilities 68,337 1,334 — — 69,671 Total current liabilities 101,157 5,289 1,205 (1,344 ) 106,307 Intercompany payables 12,710 (12,744 ) 34 — — Long-term debt, less current maturities 660,571 — 3,946 — 664,517 Obligations under capital leases, less current maturities 4,864 — — (4,864 ) — Deferred income taxes 31,552 (10,639 ) — — 20,913 Other noncurrent liabilities 42,558 533 3,653 — 46,744 Total liabilities 853,412 (17,561 ) 8,838 (6,208 ) 838,481 (Deficit) equity New Enterprise Stone & Lime Co., Inc. (deficit) equity (187,470 ) 83,523 271 (83,794 ) (187,470 ) Noncontrolling interest — — 2,072 — 2,072 Total (deficit) equity (187,470 ) 83,523 2,343 (83,794 ) (185,398 ) Total liabilities and (deficit) equity $ 665,942 $ 65,962 $ 11,181 $ (90,002 ) $ 653,083 Condensed Consolidating Statement of Comprehensive Income for the three months ended August 31, 2016 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Revenue $ 188,906 $ 29,527 $ 386 $ (864 ) $ 217,955 Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) 128,154 22,285 — (789 ) 149,650 Depreciation, depletion and amortization 8,994 1,408 — — 10,402 Asset impairment — 64 — — 64 Selling, administrative and general expenses 7,849 1,922 — — 9,771 Gain on disposals of property, equipment and software (344 ) (115 ) — — (459 ) Operating income (loss) 44,253 3,963 386 (75 ) 48,527 Interest (expense) income, net (39,907 ) 16 (224 ) 75 (40,040 ) Income (loss) before income taxes 4,346 3,979 162 — 8,487 Income tax expense 322 — — — 322 Equity in earnings of subsidiaries 3,981 — — (3,981 ) — Net income 8,005 3,979 162 (3,981 ) 8,165 Less: Net income attributable to noncontrolling interest — — (160 ) — (160 ) Net income attributable to New Enterprise Stone & Lime Co., Inc. 8,005 3,979 2 (3,981 ) 8,005 Other comprehensive income (loss) Unrealized actuarial gains and amortization of prior service costs, net of income tax 42 — — — 42 Comprehensive income 8,047 3,979 162 (3,981 ) 8,207 Less: Comprehensive income attributable to noncontrolling interest — — (160 ) — (160 ) Comprehensive income attributable to New Enterprise Stone & Lime Co., Inc. $ 8,047 $ 3,979 $ 2 $ (3,981 ) $ 8,047 Condensed Consolidating Statement of Comprehensive Income (Loss) for the three months ended August 31, 2015 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Revenue $ 222,167 $ 24,388 $ 229 $ (229 ) $ 246,555 Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) 160,022 17,600 217 (139 ) 177,700 Depreciation, depletion and amortization 9,036 1,308 — — 10,344 Asset impairment — — — — — Selling, administrative and general expenses 10,144 1,513 40 — 11,697 Gain loss on disposals of property, equipment and software (3,730 ) (3 ) — — (3,733 ) Operating income (loss) 46,695 3,970 (28 ) (90 ) 50,547 Interest (expense) income, net (21,215 ) 43 (64 ) 90 (21,146 ) Income (loss) before income taxes 25,480 4,013 (92 ) — 29,401 Income tax expense 1,331 — — — 1,331 Equity in earnings of subsidiaries 3,784 — — (3,784 ) — Net income (loss) 27,933 4,013 (92 ) (3,784 ) 28,070 Less: Net income attributable to noncontrolling interest — (137 ) — (137 ) Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. 27,933 4,013 (229 ) (3,784 ) 27,933 Other comprehensive income (loss) Unrealized actuarial gains and amortization of prior service costs, net of income tax 39 — — 39 Comprehensive income (loss) 27,972 4,013 (92 ) (3,784 ) 28,109 Less: Comprehensive income attributable to noncontrolling interest — (137 ) — (137 ) Comprehensive income (loss) attributable to New Enterprise Stone & Lime Co., Inc. $ 27,972 $ 4,013 $ (229 ) $ (3,784 ) $ 27,972 Condensed Consolidating Statement of Comprehensive (Loss) Income for the six months ended August 31, 2016 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Revenue $ 298,210 $ 56,019 $ 771 $ (1,650 ) $ 353,350 Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) 212,889 42,793 — (1,316 ) 254,366 Depreciation, depletion and amortization 18,171 2,722 — — 20,893 Asset impairment — 64 — — 64 Selling, administrative and general expenses 16,622 3,143 — — 19,765 Gain on disposals of property, equipment and software (692 ) (158 ) — — (850 ) Operating income (loss) 51,220 7,455 771 (334 ) 59,112 Interest (expense) income, net (60,931 ) 28 (450 ) 334 (61,019 ) (Loss) income before income taxes (9,711 ) 7,483 321 — (1,907 ) Income tax benefit (102 ) — — — (102 ) Equity in earnings of subsidiaries 7,486 — — (7,486 ) — Net (loss) income (2,123 ) 7,483 321 (7,486 ) (1,805 ) Less: Net income attributable to noncontrolling interest — — (318 ) — (318 ) Net (loss) income attributable to New Enterprise Stone & Lime Co., Inc. (2,123 ) 7,483 3 (7,486 ) (2,123 ) Other comprehensive income (loss) Unrealized actuarial gains and amortization of prior service costs, net of income tax 83 — — — 83 Comprehensive (loss) income (2,040 ) 7,483 321 (7,486 ) (1,722 ) Less: Comprehensive income attributable to noncontrolling interest — — (318 ) — (318 ) Comprehensive (loss) income attributable to New Enterprise Stone & Lime Co., Inc. $ (2,040 ) $ 7,483 $ 3 $ (7,486 ) $ (2,040 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the six months ended August 31, 2015 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Revenue $ 341,691 $ 45,775 $ 3,420 $ (3,615 ) $ 387,271 Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) 258,673 34,269 3,172 (3,464 ) 292,650 Depreciation, depletion and amortization 17,717 2,582 — — 20,299 Asset impairment 160 23 — — 183 Selling, administrative and general expenses 23,231 3,047 123 — 26,401 Gain loss on disposals of property, equipment and software (3,783 ) (50 ) — — (3,833 ) Operating income (loss) 45,693 5,904 125 (151 ) 51,571 Interest (expense) income, net (42,330 ) 61 (98 ) 151 (42,216 ) Income before income taxes 3,363 5,965 27 — 9,355 Income tax expense 423 — — — 423 Equity in earnings of subsidiaries 5,720 — — (5,720 ) — Net income (loss) 8,660 5,965 27 (5,720 ) 8,932 Less: Net income attributable to noncontrolling interest — — (272 ) — (272 ) Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. 8,660 5,965 (245 ) (5,720 ) 8,660 Other comprehensive income (loss) Unrealized actuarial gains and amortization of prior service costs, net of income tax 78 — — — 78 Comprehensive income (loss) 8,738 5,965 27 (5,720 ) 9,010 Less: Comprehensive loss attributable to noncontrolling interest — — (272 ) — (272 ) Comprehensive income (loss) attributable to New Enterprise Stone & Lime Co., Inc. $ 8,738 $ 5,965 $ (245 ) $ (5,720 ) $ 8,738 Condensed Consolidating Statement of Cash Flows for the six months ended August 31, 2016 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Cash flows from operating activities $ (48,740 ) $ 660 $ 689 $ — $ (47,391 ) Cash flows from investing activities Capital expenditures (31,032 ) (1,533 ) — — (32,565 ) Proceeds from sale of property, equipment and assets held for sale 1,597 — — — 1,597 Change in restricted cash 21,310 — — — 21,310 Net cash used in investing activities (8,125 ) (1,533 ) — — (9,658 ) Cash flows from financing activities Proceeds from issuance of short term borrowings 38,938 — — — 38,938 Proceeds from issuance of long-term debt and other obligations 455,200 — — — 455,200 Repayments of long-term debt and other obligations (442,654 ) — (447 ) — (443,101 ) Debt issuance costs (23,066 ) — — — (23,066 ) Distribution to noncontrolling interest — — (400 ) — (400 ) Net cash provided by (used in) financing activities 28,418 — (847 ) — 27,571 Net decrease in cash and cash equivalents (28,447 ) (873 ) (158 ) — (29,478 ) Cash and cash equivalents Beginning of period 39,380 (125 ) 1,306 — 40,561 End of period $ 10,933 $ (998 ) $ 1,148 $ — $ 11,083 Condensed Consolidating Statement of Cash Flows for the six months ended August 31, 2015 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Cash flows from operating activities $ (17,276 ) $ 1,110 $ 2,034 $ — $ (14,132 ) Cash flows from investing activities Capital expenditures (11,830 ) — — — (11,830 ) Proceeds from sale of property and equipment, and assets held for sale 5,849 — — — 5,849 Change in restricted cash 128 27 (1 ) — 154 Net cash (used in) provided by investing activities (5,853 ) 27 (1 ) — (5,827 ) Cash flows from financing activities Proceeds from issuance of short term borrowings 30,091 — — — 30,091 Repayments of long-term debt and other obligations (1,204 ) — (505 ) — (1,709 ) Distribution to noncontrolling interest — — (291 ) — (291 ) Net cash provided by financing activities 28,887 — (796 ) — 28,091 Net decrease in cash and cash equivalents 5,758 1,137 1,237 — 8,132 Cash and cash equivalents Beginning of period 8,633 60 4,600 — 13,293 End of period $ 14,391 $ 1,197 $ 5,837 $ — $ 21,425 |
Nature of Operations and Summ17
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Aug. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements and notes included in this report have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly owned subsidiary companies, and their wholly owned subsidiary companies, and entities where the Company has a controlling equity interest. All adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in the unaudited Condensed Consolidated Financial Statements. The unaudited Condensed Consolidated Financial Statements do not include all of the information or disclosures required for a complete presentation in accordance with GAAP. The year-end condensed balance sheet data at February 29, 2016 was derived from audited financial statements, but does not include all disclosures required by GAAP. Accordingly, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 29, 2016 filed with the Securities and Exchange Commission (“SEC”) on May 23, 2016. The results for interim periods are not necessarily indicative of the results for the full fiscal year ending February 28, 2017 ("fiscal year 2017"). |
Related Party Transactions | Related Party Transactions The Company has certain related party transactions, including: (i) an arrangement to lease its precast/prestressed structural concrete operations in Roaring Spring, PA to MacInnis Group, LLC, an entity controlled by a member of the Company's Board of Directors and stockholder; (ii) a less than 50% ownership interest in, and an aircraft lease with, Means to Go, LLC, a limited liability company in which several stockholders have an ownership interest; (iii) and a lease agreement with South Woodbury, L.P., a partnership which is owned for the benefit of certain affiliates of stockholders, for an office building in Roaring Spring, PA and an office building that is being used as the Company's corporate headquarters in New Enterprise, PA. The Company purchased $0.0 million of precast/prestressed beams and related services from MacInnis Group, LLC during the six months ended August 31, 2016 and primarily sold stone and ready mixed concrete in the amount of $0.7 million to MacInnis Group LLC during the six months ended August 31, 2016. |
Principles of Consolidation | Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries and entities where the Company has a controlling equity interest. All material intercompany balances and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications Certain prior period items have been reclassified to conform with the fiscal year 2017 presentation. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Cash balances were restricted in certain consolidated subsidiaries for insurance requirements as well as collateral on outstanding letters of credit or rentals. The Company uses a cash pooling arrangement with a single financial institution with specific provisions for the right to offset positive and negative cash balances. The Company classifies net aggregate cash overdraft positions as other obligations within the current maturities of long-term debt, as applicable. |
Accounts Receivable | Accounts Receivable Trade accounts receivable, less allowance for doubtful accounts, are recorded at the invoiced amount plus service charges related to past due accounts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable, including service charges. The Company determines the allowance based on historical write-off experience, specific identification based on a review of individual past due balances and their composition, and the nature of the customer. Account balances are written-off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is determined using either first-in, first-out (“FIFO”) or weighted average method based on the applicable category of inventories. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost. Assets under capital leases are stated at the lesser of the present value of minimum lease payments or the fair value of the leased item. Provision for depreciation is generally computed over the shorter of the estimated service lives or the lease term by the straight-line method. |
Assets Held for Sale | Assets Held for Sale The Company classifies assets as held for sale when all the following criteria are met: (i) management, having the authority to approve the action, commits to a plan to sell the asset; (ii) the asset is available for immediate sale in its present condition; (iii) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; (iv) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year, with a few exceptions; and (v) the asset is being actively marketed for sale at a price that is reasonable, in relation to its current fair value. As of August 31, 2016 and February 29, 2016 , assets held for sale consists primarily of land and certain operations at the Company's Wescosville, PA location and miscellaneous property in the amount of $4.9 million and $5.6 million , respectively. The Company expects to complete the sale of the remaining Wescosville, PA assets during the fiscal year ending February 28, 2017; however, the sale of these assets requires certain regulatory approvals that could delay the sale beyond February 28, 2017. During the six months ended August 31, 2016 , the Company finalized its sale of certain properties previously recorded as Assets Held for Sale at February 29, 2016 for $0.9 million in cash. The Company recorded a gain of approximately $0.3 million and recorded additional impairment of approximately $0.1 million on these sales. |
Use of Estimates | Use of Estimates The preparation of the Condensed Consolidated Financial Statements requires management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the carrying amount of property, plant and equipment; valuation of receivables, inventories, goodwill and other intangible assets; recognition of revenue and loss contract reserves under the percentage-of-completion method; assets and obligations related to employee benefit plans; asset retirement obligations; income tax valuation; and self-insurance reserves. Actual results could differ from those estimates and those differences could be material . |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill is tested for impairment on an annual basis or more frequently whenever events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The impairment test for goodwill is a two-step process. Under the first step, the fair value of the reporting unit is compared with its carrying value. If the fair value of the reporting unit is less than its carrying value, an indication of impairment exists and the reporting unit must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. If the fair value of the reporting unit exceeds its carrying value under the first step, step two does not need to be performed. Our reporting units were determined based on our organizational structure, considering the level at which discrete financial information for businesses is available and regularly reviewed. The Company has three operating segments, which is the basis for determining its reporting units, organized around its three lines of business: (i) construction materials; (ii) heavy/highway construction; and (iii) traffic safety services and equipment. Construction materials include three reporting units within the operating segment based on geographic location. The operating segment of traffic safety services and equipment consists of one reporting unit within the segment based upon the similar economic characteristics of its operations. Our annual goodwill impairment analysis takes place as of fiscal year end. The estimated fair value of each of the reporting units was in excess of its carrying value, even after conducting various sensitivity analysis on key assumptions, such that no adjustment to the carrying values of goodwill was required as of February 29, 2016 , unless events or circumstances indicate that it is more likely than not that the fair value of a reporting unit has been reduced below its carrying value. There were no impairment indicators noted during the six months ended August 31, 2016 . Other Intangible Assets Other intangible assets consist of technology, customer relationships and trademarks acquired in previous acquisitions. The technology, customer relationships and trademarks are amortized over a straight-line basis. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company recorded amortization expense related to intangible assets other than goodwill of $0.2 million during the three months ended August 31, 2016 and 2015, and $0.4 million and $0.5 million during the six months ended August 31, 2016 and 2015, respectively. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue on construction contracts under the percentage-of-completion method of accounting, as measured by the cost incurred to date over estimated total cost. Our construction contracts are primarily fixed-price contracts. The typical contract life cycle for these projects can be up to two to four years in duration. Changes in job performance, job conditions, estimated profitability and final contract settlements may result in revisions to revenues and costs. Revenue from contract change orders is recognized when the contract owner has agreed to the change order with the customer and the related costs are incurred. We do not recognize revenue on a basis of contract claims. Provisions for estimated losses on uncompleted contracts are made for the full amount of estimated loss in the period in which evidence indicates that the estimated total cost of a contract exceeds its estimated total revenue and are recorded as an additional cost (rather than as a reduction of revenue). Contract costs include all direct material, labor, subcontract and other costs and those indirect costs related to contract performance, such as indirect salaries and wages, equipment repairs and depreciation, insurance and payroll taxes. Administrative and general expenses are charged to expense as incurred. Costs and estimated earnings in excess of billings on uncompleted contracts represent the excess of contract revenue recognized to date over billings to date. Billings in excess of costs and estimated earnings on uncompleted contracts represent the excess of billings to date over the amount of revenue recognized to date. As of August 31, 2016 and February 29, 2016 , such amounts are included in accounts receivable (Note 1, “Nature of Operations and Summary of Significant Accounting Policies”) and accrued liabilities (Note 3, “Accrued Liabilities”), respectively, in the Condensed Consolidated Balance Sheets. The Company recorded a charge included in operating income of approximately $3.5 million and $4.3 million related to the revision of costs to complete on certain contracts during the three and six months ended August 31, 2016 , respectively. The Company generally recognizes revenue on the sale of construction materials when the customer takes title and assumes risk of loss. Typically, this occurs when products are shipped. The Company recognizes equipment rental revenue on a straight-line basis over the specific daily, weekly or monthly terms of the agreements. Revenues from the sale of equipment and contractor supplies are recognized at the time of delivery to, or pick-up by, the customer. Other revenue consists of sales of miscellaneous materials, scrap and other products that do not fall into our other primary lines of business. The Company generally recognizes revenue when the customer takes title and assumes risk of loss, the price is fixed or determinable and collection is reasonably assured. |
Impairment of Definite-lived Long-Lived Assets | Impairment of Definite-Lived Long-Lived Assets Long-lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. The Company considers an asset group as the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. For our construction materials and heavy/highway construction operations, the lowest level of largely independent identifiable cash flows is at the regional level, which collectively serves a local market. Each region shares and allocates its material production, resources, equipment and business activity among the locations within the region in generating cash flows. The Company is aligned into three regions, the Eastern Region, which includes Lancaster, Pennsylvania, and Northeastern Pennsylvania, the Western Region, which includes Central Pennsylvania, Chambersburg, Shippensburg, and Gettysburg Pennsylvania and the Northern Region, which includes Buffalo, New York and the Port of Buffalo. The construction materials regions’ long-lived assets predominantly include limestone and sand acreage and crushing and the heavy/highway construction region’s long lived assets predominantly include contracting equipment and vehicles. The traffic safety services and equipment business includes two asset groups, distinguished between its retail sales and distribution as one asset group and its manufacturing and assembly as the second asset group. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount exceeds the fair value of the asset group. |
Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Measurement of Credit Losses on Financial Instruments , which amends guidance on the impairment of financial instruments. The new guidance estimates credit losses based on expected losses, modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2019, and interim reporting periods within those annual reporting periods. Early adoption is permitted for annual reporting periods beginning after December 15, 2018. While we are still evaluating the impact of ASU 2016-13, we do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, Leases , which amends existing accounting standards for lease accounting and adds additional disclosures about leasing arrangements. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement and presentation of cash flow in the statement of cash flows. This ASU is effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those annual reporting periods. Early adoption is permitted and modified retrospective application is required. While we are still evaluating the impact of ASU 2016-02, we do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements. In January 2016 the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which amends certain aspects of current guidance on the recognition, measurement and disclosure of financial instruments. Among other changes, this ASU requires most equity investments be measured at fair value. Additionally, the ASU eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value for instruments not recognized at fair value in our financial statements. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual reporting periods. While we are still evaluating the impact of ASU 2016-01, we do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements. In September 2015, the FASB Issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments -ASU 2015-16 was issued to require an acquirer to recognize measurement-period adjustments to provisional amounts in the reporting period in which the adjustments are determined. Previously, measurement-period adjustments were retrospectively applied. As an alternative to restating the prior periods for the measurement-period adjustments, the ASU requires acquirers to present separately on the face of the earnings statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustments to the provisional amounts had been recognized as of the acquisition date. This ASU is to be applied prospectively to adjustments to provisional amounts that occur after December 15, 2015. Early adoption is permitted. This standard was adopted by the Company and required no adjustment to the financial statements. In July 2015, the FASB issued ASU 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient. The amendments in all three parts of this Update are effective for all entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. An entity should apply the amendments in Parts I and II retrospectively for all financial statements presented. An entity should apply the amendments on Part III prospectively. This standard was adopted by the Company and required no adjustment to the financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Effective for public business entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2016. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016 and for interim periods within fiscal years beginning after December 15, 2017. The amendments in this Update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-04, Compensation - Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets. Effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016 and for interim periods within fiscal years beginning after December 15, 2017. Early adoption of the amendments in this update are permitted. This standard was adopted by the Company and required no adjustment to the financial statements. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2015 and for interim periods within fiscal years beginning after December 15, 2016. Early adoption of the amendments in this update are permitted for financial statements that have not been previously issued. The adoption of the ASU, which had a later amendment, resulted in a reclassification of our other current and noncurrent assets to long-term debt in our Consolidated Balance Sheet as of February 29, 2016. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. Effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016 and for interim periods within fiscal years beginning after December 15, 2017. This standard was adopted by the Company and required no adjustment to the financial statements. In January 2015, the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items: Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. Effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This standard was adopted by the Company and required no adjustment to the financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The standards requires an entity's management to evaluate whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. Public entities are required to apply standards for annual reporting periods ending after December 15, 2016, and interim periods thereafter. Early application is permitted. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09, Revenue From Contracts With Customers , which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This ASU provides a more robust framework for addressing revenue issues and expands required revenue recognition disclosures. This ASU (as later amended) is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual reporting periods. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this standard on our Consolidated Financial Statements. |
Nature of Operations and Summ18
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Aug. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Accounts Receivable | The Company’s accounts receivable consists of the following: August 31, February 29, (In thousands) 2016 2016 Costs and estimated earnings in excess of billings $ 24,726 $ 7,728 Trade 102,597 38,651 Retainages 8,297 5,659 135,620 52,038 Allowance for doubtful accounts (2,475 ) (3,742 ) Accounts receivable, net $ 133,145 $ 48,296 |
Schedule of Inventories | The Company’s inventories consist of the following: August 31, February 29, (In thousands) 2016 2016 Crushed stone, agricultural lime and sand $ 79,028 $ 70,230 Safety equipment 16,678 14,762 Parts, tires and supplies 6,713 6,855 Raw materials 10,098 9,620 Building materials 1,291 1,167 Other 794 729 Total inventories $ 114,602 $ 103,363 |
Schedule of Property Plant and Equipment Components | The Company’s property, plant and equipment consist of the following: August 31, February 29, (In thousands) 2016 2016 Limestone and sand acreage $ 145,569 $ 145,569 Land, buildings and building improvements 84,760 84,521 Crushing, prestressing and manufacturing plants 312,806 307,807 Contracting equipment vehicles and other 342,597 320,450 Construction in progress 14,102 14,884 Property, plant and equipment 899,834 873,231 Less: Accumulated depreciation and depletion (583,246 ) (565,810 ) Property, plant and equipment, net $ 316,588 $ 307,421 |
Schedule of Other Noncurrent Assets | The Company’s other noncurrent assets consist of the following: August 31, February 29, (In thousands) 2016 2016 Capitalized software (net of accumulated amortization of $5,376 and $4,625, respectively) $ 6,400 $ 7,150 Deferred stripping costs 4,810 5,017 Other 5,477 9,015 Total other noncurrent assets $ 16,687 $ 21,182 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Aug. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consist of the following: August 31, February 29, (In thousands) 2016 2016 Insurance $ 24,483 $ 24,732 Interest 19,329 25,578 Payroll and vacation 9,762 6,385 Withholding taxes 2,035 173 Billings in excess of costs and estimated earnings on uncompleted contracts 6,889 3,504 Contract expenses * 3,537 1,684 Other 5,020 7,615 Total accrued liabilities $ 71,055 $ 69,671 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Aug. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The Company's long-term debt consists of the following: August 31, February 29, (In thousands) 2016 2016 RCA ($33.9 million and $80.6 million available as of August 31, 2016 and February 29, 2016, respectively) $ 38,938 $ — 11% Notes, due 2018 235,000 250,000 13% Secured Notes, due 2018 — 345,353 Term Loan, $450 million, interest rate of 9%, due 2021 450,000 — Term Loans, interest rate of 8% — 70,000 Other obligations 21,514 11,319 Unamortized discounts and debt issuance costs (26,143 ) (9,000 ) Total debt 719,309 667,672 Less: Current portion (6,223 ) (3,155 ) Total long-term debt $ 713,086 $ 664,517 |
Retirement and Benefit Progra21
Retirement and Benefit Programs (Tables) | 6 Months Ended |
Aug. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of net periodic pension expense recognized | Net periodic pension expense recognized was as follows: Three Months Ended Six Months Ended (In thousands) 2016 2015 2016 2015 Net periodic benefit cost Service cost $ 62 $ 78 $ 124 $ 156 Interest cost 100 93 200 186 Expected return on plan assets (135 ) (155 ) (270 ) (310 ) Amortization of prior service cost 10 13 20 26 Recognized net actuarial loss 60 54 120 108 Total pension expense $ 97 $ 83 $ 194 $ 166 |
Other Noncurrent Liabilities (
Other Noncurrent Liabilities (Tables) | 6 Months Ended |
Aug. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other noncurrent liabilities | The Company's other noncurrent liabilities consist of: August 31, February 29, (In thousands) 2016 2016 Reclamation costs $ 19,737 $ 19,116 Executive deferred compensation liability 4,895 4,989 PIK accrued interest — 9,497 Other 8,452 13,142 $ 33,084 $ 46,744 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Aug. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of certain financial data for the company's operating segments | The following is a summary of certain financial data for the Company’s operating segments: Three Months Ended Six Months Ended (In thousands) 2016 2015 2016 2015 Revenue Construction materials $ 162,508 $ 178,280 $ 255,441 $ 270,146 Heavy/highway construction 86,183 107,799 127,172 158,480 Traffic safety services and equipment 30,737 27,336 59,073 51,498 Segment totals 279,428 313,415 441,686 480,124 Eliminations (61,473 ) (66,860 ) (88,336 ) (92,853 ) Total revenue $ 217,955 $ 246,555 $ 353,350 $ 387,271 Operating income Construction materials $ 49,135 $ 48,996 $ 67,395 $ 62,656 Heavy/highway construction 3,409 8,203 1,198 6,991 Traffic safety services and equipment 3,720 3,207 6,869 4,816 Corporate and unallocated (7,737 ) (9,859 ) (16,350 ) (22,892 ) Total operating income $ 48,527 $ 50,547 $ 59,112 $ 51,571 Three Months Ended Six Months Ended (In thousands) 2016 2015 2016 2015 Depreciation, depletion and amortization Construction materials $ 7,337 $ 6,858 $ 14,683 $ 13,523 Heavy/highway construction 1,455 1,880 2,996 3,577 Traffic safety services and equipment 1,280 1,261 2,552 2,496 Corporate and unallocated 330 345 662 703 Total depreciation, depletion and amortization $ 10,402 $ 10,344 $ 20,893 $ 20,299 Expenditures for assets (1) Construction materials $ 14,547 $ 4,779 $ 23,879 $ 11,490 Heavy/highway construction 1,068 1,044 1,735 3,647 Traffic safety services and equipment 1,866 1,065 3,076 2,548 Corporate and unallocated 99 12 129 119 Total expenditures for assets $ 17,580 $ 6,900 $ 28,819 $ 17,804 |
Supplemental Disclosures of C24
Supplemental Disclosures of Cash Flow Information (Tables) | 6 Months Ended |
Aug. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Information Related to Cash Flows | The following table shows the supplemental information related to our cash flows for the six months ended: (In thousands) August 31, 2016 August 31, 2015 Capital lease and other non-cash obligations incurred $ 8,606 $ 5,974 Cash paid for interest, net of amounts capitalized 60,588 27,898 |
Condensed Issuer, Guarantor a25
Condensed Issuer, Guarantor and Non Guarantor Financial Information (Tables) | 6 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Condensed Issuer, Guarantor and Non Guarantor Financial Information | ||
Schedule of condensed consolidating balance sheet | Condensed Consolidating Balance Sheet at August 31, 2016 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Assets Current assets Cash and cash equivalents $ 10,933 $ (998 ) $ 1,148 $ — $ 11,083 Restricted cash 1,348 53 — — 1,401 Accounts receivable, net 111,580 21,551 14 — 133,145 Inventories 97,905 16,697 — — 114,602 Net investment in lease — — 1,730 (1,730 ) — Other current assets 6,225 694 — — 6,919 Assets held for sale 4,912 — — — 4,912 Total current assets 232,903 37,997 2,892 (1,730 ) 272,062 Property, plant and equipment, net 291,294 25,294 4,110 (4,110 ) 316,588 Goodwill 75,647 5,845 — — 81,492 Other intangible assets, net 6,753 10,163 — — 16,916 Investment in subsidiaries 93,353 — — (93,353 ) — Intercompany receivables 2,169 (2,169 ) — — — Other noncurrent assets 15,918 769 — — 16,687 Total Assets $ 718,037 $ 77,899 $ 7,002 $ (99,193 ) $ 703,745 Liabilities and (Deficit) Equity Current liabilities Current maturities of long-term debt $ 7,031 $ — $ 922 $ (1,730 ) $ 6,223 Accounts payable - trade 37,289 9,372 287 — 46,948 Accrued liabilities 69,821 1,234 — — 71,055 Total current liabilities 114,141 10,606 1,209 (1,730 ) 124,226 Intercompany payables 15,477 (15,511 ) 34 — — Long-term debt, less current maturities 709,591 — 3,495 — 713,086 Obligations under capital leases, less current maturities 4,110 — — (4,110 ) — Deferred income taxes 31,508 (10,639 ) — — 20,869 Other noncurrent liabilities 32,720 364 — — 33,084 Total liabilities 907,547 (15,180 ) 4,738 (5,840 ) 891,265 (Deficit) equity New Enterprise Stone & Lime Co., Inc. (deficit) equity (189,510 ) 93,079 274 (93,353 ) (189,510 ) Noncontrolling interest — — 1,990 — 1,990 Total (deficit) equity (189,510 ) 93,079 2,264 (93,353 ) (187,520 ) Total liabilities and (deficit) equity $ 718,037 $ 77,899 $ 7,002 $ (99,193 ) $ 703,745 Condensed Consolidating Balance Sheet at February 29, 2016 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Assets Current assets Cash and cash equivalents $ 39,380 $ (125 ) $ 1,306 $ — $ 40,561 Restricted cash 22,658 53 — — 22,711 Accounts receivable, net 35,663 12,619 14 — 48,296 Inventories 88,602 14,761 — — 103,363 Net investment in lease — — 1,344 (1,344 ) — Other current assets 4,270 864 — — 5,134 Assets held for sale 5,558 — — — 5,558 Total current assets 196,131 28,172 2,664 (1,344 ) 225,623 Property, plant and equipment, net 286,854 20,567 4,864 (4,864 ) 307,421 Goodwill 75,647 5,845 — — 81,492 Other intangible assets, net 6,825 10,540 — — 17,365 Investment in subsidiaries 83,794 — — (83,794 ) — Other noncurrent assets 16,691 838 3,653 — 21,182 Total Assets $ 665,942 $ 65,962 $ 11,181 $ (90,002 ) $ 653,083 Liabilities and (Deficit) Equity Current liabilities Current maturities of long-term debt $ 3,581 $ — $ 918 $ (1,344 ) $ 3,155 Accounts payable - trade 29,239 3,955 287 — 33,481 Accrued liabilities 68,337 1,334 — — 69,671 Total current liabilities 101,157 5,289 1,205 (1,344 ) 106,307 Intercompany payables 12,710 (12,744 ) 34 — — Long-term debt, less current maturities 660,571 — 3,946 — 664,517 Obligations under capital leases, less current maturities 4,864 — — (4,864 ) — Deferred income taxes 31,552 (10,639 ) — — 20,913 Other noncurrent liabilities 42,558 533 3,653 — 46,744 Total liabilities 853,412 (17,561 ) 8,838 (6,208 ) 838,481 (Deficit) equity New Enterprise Stone & Lime Co., Inc. (deficit) equity (187,470 ) 83,523 271 (83,794 ) (187,470 ) Noncontrolling interest — — 2,072 — 2,072 Total (deficit) equity (187,470 ) 83,523 2,343 (83,794 ) (185,398 ) Total liabilities and (deficit) equity $ 665,942 $ 65,962 $ 11,181 $ (90,002 ) $ 653,083 | |
Schedule of condensed consolidating statement of comprehensive income (loss) | Condensed Consolidating Statement of Comprehensive Income for the three months ended August 31, 2016 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Revenue $ 188,906 $ 29,527 $ 386 $ (864 ) $ 217,955 Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) 128,154 22,285 — (789 ) 149,650 Depreciation, depletion and amortization 8,994 1,408 — — 10,402 Asset impairment — 64 — — 64 Selling, administrative and general expenses 7,849 1,922 — — 9,771 Gain on disposals of property, equipment and software (344 ) (115 ) — — (459 ) Operating income (loss) 44,253 3,963 386 (75 ) 48,527 Interest (expense) income, net (39,907 ) 16 (224 ) 75 (40,040 ) Income (loss) before income taxes 4,346 3,979 162 — 8,487 Income tax expense 322 — — — 322 Equity in earnings of subsidiaries 3,981 — — (3,981 ) — Net income 8,005 3,979 162 (3,981 ) 8,165 Less: Net income attributable to noncontrolling interest — — (160 ) — (160 ) Net income attributable to New Enterprise Stone & Lime Co., Inc. 8,005 3,979 2 (3,981 ) 8,005 Other comprehensive income (loss) Unrealized actuarial gains and amortization of prior service costs, net of income tax 42 — — — 42 Comprehensive income 8,047 3,979 162 (3,981 ) 8,207 Less: Comprehensive income attributable to noncontrolling interest — — (160 ) — (160 ) Comprehensive income attributable to New Enterprise Stone & Lime Co., Inc. $ 8,047 $ 3,979 $ 2 $ (3,981 ) $ 8,047 Condensed Consolidating Statement of Comprehensive Income (Loss) for the three months ended August 31, 2015 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Revenue $ 222,167 $ 24,388 $ 229 $ (229 ) $ 246,555 Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) 160,022 17,600 217 (139 ) 177,700 Depreciation, depletion and amortization 9,036 1,308 — — 10,344 Asset impairment — — — — — Selling, administrative and general expenses 10,144 1,513 40 — 11,697 Gain loss on disposals of property, equipment and software (3,730 ) (3 ) — — (3,733 ) Operating income (loss) 46,695 3,970 (28 ) (90 ) 50,547 Interest (expense) income, net (21,215 ) 43 (64 ) 90 (21,146 ) Income (loss) before income taxes 25,480 4,013 (92 ) — 29,401 Income tax expense 1,331 — — — 1,331 Equity in earnings of subsidiaries 3,784 — — (3,784 ) — Net income (loss) 27,933 4,013 (92 ) (3,784 ) 28,070 Less: Net income attributable to noncontrolling interest — (137 ) — (137 ) Net income (loss) attributable to New Enterprise Stone & Lime Co., Inc. 27,933 4,013 (229 ) (3,784 ) 27,933 Other comprehensive income (loss) Unrealized actuarial gains and amortization of prior service costs, net of income tax 39 — — 39 Comprehensive income (loss) 27,972 4,013 (92 ) (3,784 ) 28,109 Less: Comprehensive income attributable to noncontrolling interest — (137 ) — (137 ) Comprehensive income (loss) attributable to New Enterprise Stone & Lime Co., Inc. $ 27,972 $ 4,013 $ (229 ) $ (3,784 ) $ 27,972 Condensed Consolidating Statement of Comprehensive Income for the three months ended August 31, 2016 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Revenue $ 188,906 $ 29,527 $ 386 $ (864 ) $ 217,955 Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) 128,154 22,285 — (789 ) 149,650 Depreciation, depletion and amortization 8,994 1,408 — — 10,402 Asset impairment — 64 — — 64 Selling, administrative and general expenses 7,849 1,922 — — 9,771 Gain on disposals of property, equipment and software (344 ) (115 ) — — (459 ) Operating income (loss) 44,253 3,963 386 (75 ) 48,527 Interest (expense) income, net (39,907 ) 16 (224 ) 75 (40,040 ) Income (loss) before income taxes 4,346 3,979 162 — 8,487 Income tax expense 322 — — — 322 Equity in earnings of subsidiaries 3,981 — — (3,981 ) — Net income 8,005 3,979 162 (3,981 ) 8,165 Less: Net income attributable to noncontrolling interest — — (160 ) — (160 ) Net income attributable to New Enterprise Stone & Lime Co., Inc. 8,005 3,979 2 (3,981 ) 8,005 Other comprehensive income (loss) Unrealized actuarial gains and amortization of prior service costs, net of income tax 42 — — — 42 Comprehensive income 8,047 3,979 162 (3,981 ) 8,207 Less: Comprehensive income attributable to noncontrolling interest — — (160 ) — (160 ) Comprehensive income attributable to New Enterprise Stone & Lime Co., Inc. $ 8,047 $ 3,979 $ 2 $ (3,981 ) $ 8,047 | |
Schedule of condensed consolidating statements of cash flows | Condensed Consolidating Statement of Cash Flows for the six months ended August 31, 2016 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Cash flows from operating activities $ (48,740 ) $ 660 $ 689 $ — $ (47,391 ) Cash flows from investing activities Capital expenditures (31,032 ) (1,533 ) — — (32,565 ) Proceeds from sale of property, equipment and assets held for sale 1,597 — — — 1,597 Change in restricted cash 21,310 — — — 21,310 Net cash used in investing activities (8,125 ) (1,533 ) — — (9,658 ) Cash flows from financing activities Proceeds from issuance of short term borrowings 38,938 — — — 38,938 Proceeds from issuance of long-term debt and other obligations 455,200 — — — 455,200 Repayments of long-term debt and other obligations (442,654 ) — (447 ) — (443,101 ) Debt issuance costs (23,066 ) — — — (23,066 ) Distribution to noncontrolling interest — — (400 ) — (400 ) Net cash provided by (used in) financing activities 28,418 — (847 ) — 27,571 Net decrease in cash and cash equivalents (28,447 ) (873 ) (158 ) — (29,478 ) Cash and cash equivalents Beginning of period 39,380 (125 ) 1,306 — 40,561 End of period $ 10,933 $ (998 ) $ 1,148 $ — $ 11,083 Condensed Consolidating Statement of Cash Flows for the six months ended August 31, 2015 (In thousands) New Enterprise Stone & Lime Co., Inc. Guarantor Subsidiaries Non Guarantors Eliminations Total Cash flows from operating activities $ (17,276 ) $ 1,110 $ 2,034 $ — $ (14,132 ) Cash flows from investing activities Capital expenditures (11,830 ) — — — (11,830 ) Proceeds from sale of property and equipment, and assets held for sale 5,849 — — — 5,849 Change in restricted cash 128 27 (1 ) — 154 Net cash (used in) provided by investing activities (5,853 ) 27 (1 ) — (5,827 ) Cash flows from financing activities Proceeds from issuance of short term borrowings 30,091 — — — 30,091 Repayments of long-term debt and other obligations (1,204 ) — (505 ) — (1,709 ) Distribution to noncontrolling interest — — (291 ) — (291 ) Net cash provided by financing activities 28,887 — (796 ) — 28,091 Net decrease in cash and cash equivalents 5,758 1,137 1,237 — 8,132 Cash and cash equivalents Beginning of period 8,633 60 4,600 — 13,293 End of period $ 14,391 $ 1,197 $ 5,837 $ — $ 21,425 |
Nature of Operations and Summ26
Nature of Operations and Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2016USD ($) | Aug. 31, 2015USD ($) | Aug. 31, 2016USD ($)segment | Aug. 31, 2015USD ($) | Feb. 29, 2016USD ($) | |
Accounting Policies [Abstract] | |||||
Number of reportable segments | segment | 3 | ||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Revenue Recognition, Sales Returns, Changes in Estimated Returns | 3.5 | 4.3 | |||
Debt issuance costs | $ 26,143 | $ 26,143 | $ 9,000 | ||
Proceeds from sale of assets | 1,597 | $ 5,849 | |||
Gain on sale of assets held for sale | 459 | $ 3,733 | 850 | 3,833 | |
Amortization expense on intangible assets other than goodwill | 200 | $ 400 | $ 500 | ||
Minimum | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Construction contract life | 2 years | ||||
Maximum | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Construction contract life | 4 years | ||||
Certain Properties Held For Sale | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Proceeds from sale of assets | $ 900 | ||||
Gain on sale of assets held for sale | 300 | ||||
Impairment of assets held for sale | 100 | ||||
Wescosville Location | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Assets held for sale | $ 4,900 | 4,900 | $ 5,600 | ||
Affiliated Entity | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Purchase from related party | 0 | ||||
Affiliated Entity | Sale Of Stone And Ready Mix Concrete | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Sale to related party | $ 700 |
Nature of Operations and Summ27
Nature of Operations and Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | Aug. 31, 2016 | Feb. 29, 2016 | |
Accounting Policies [Abstract] | |||
Costs and estimated earnings in excess of billings | $ 24,726 | $ 7,728 | |
Trade | 102,597 | 38,651 | |
Retainages | 8,297 | 5,659 | |
Accounts receivable, gross | 135,620 | 52,038 | |
Allowance for doubtful accounts | (2,475) | (3,742) | |
Accounts receivable, net | $ 133,145 | $ 48,296 | [1] |
[1] | Data derived from audited consolidated balance sheet as of February 29, 2016. |
Nature of Operations and Summ28
Nature of Operations and Summary of Significant Accounting Policies (Details 3) - USD ($) $ in Thousands | Aug. 31, 2016 | Feb. 29, 2016 | |
Inventory [Line Items] | |||
Inventories | $ 114,602 | $ 103,363 | [1] |
Crushed stone, agricultural lime and sand | |||
Inventory [Line Items] | |||
Inventories | 79,028 | 70,230 | |
Safety equipment | |||
Inventory [Line Items] | |||
Inventories | 16,678 | 14,762 | |
Parts, tires and supplies | |||
Inventory [Line Items] | |||
Inventories | 6,713 | 6,855 | |
Raw materials | |||
Inventory [Line Items] | |||
Inventories | 10,098 | 9,620 | |
Building materials | |||
Inventory [Line Items] | |||
Inventories | 1,291 | 1,167 | |
Other | |||
Inventory [Line Items] | |||
Inventories | $ 794 | $ 729 | |
[1] | Data derived from audited consolidated balance sheet as of February 29, 2016. |
Nature of Operations and Summ29
Nature of Operations and Summary of Significant Accounting Policies (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | Feb. 29, 2016 | ||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment | $ 899,834 | $ 899,834 | $ 873,231 | |||
Less: Accumulated depreciation and depletion | (583,246) | (583,246) | (565,810) | |||
Property, Plant and Equipment, Net | 316,588 | 316,588 | 307,421 | [1] | ||
Depreciation | 8,900 | $ 9,000 | 18,300 | $ 18,100 | ||
Limestone and sand acreage | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment | 145,569 | 145,569 | 145,569 | |||
Land, buildings and building improvements | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment | 84,760 | 84,760 | 84,521 | |||
Crushing, prestressing and manufacturing plants | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment | 312,806 | 312,806 | 307,807 | |||
Contracting equipment vehicles and other | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment | 342,597 | 342,597 | 320,450 | |||
Construction in progress | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment | $ 14,102 | $ 14,102 | $ 14,884 | |||
[1] | Data derived from audited consolidated balance sheet as of February 29, 2016. |
Nature of Operations and Summ30
Nature of Operations and Summary of Significant Accounting Policies (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | May 31, 2016 | Feb. 29, 2016 | ||
Accounting Policies [Abstract] | |||||||
Capitalized software (net of accumulated amortization of $3,368 and $3,364, respectively) | $ 6,400 | $ 6,400 | $ 7,150 | ||||
Deferred stripping costs | 4,810 | 4,810 | 5,017 | ||||
Other | 5,477 | 5,477 | 9,015 | ||||
Other noncurrent assets | 16,687 | 16,687 | 21,182 | [1] | |||
Capitalized Computer Software, Amortization | $ 400 | $ 300 | $ 700 | $ 500 | |||
Capitalized Computer Software, Accumulated Amortization | $ 5,000 | $ 4,625 | |||||
[1] | Data derived from audited consolidated balance sheet as of February 29, 2016. |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) - USD ($) | Aug. 31, 2016 | Jul. 31, 2016 | Aug. 31, 2010 |
11% Notes due 2018 | |||
Debt Instrument [Line Items] | |||
Debt | $ 250,000,000 | $ 250,000,000 | |
Stated interest rate (as a percent) | 11.00% | ||
$450 Million Term Loan | |||
Debt Instrument [Line Items] | |||
Debt | $ 450,000,000 | $ 450,000,000 | |
Stated interest rate (as a percent) | 9.00% |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Aug. 31, 2016 | Feb. 29, 2016 | ||
Accrued Liabilities | |||
Insurance | $ 24,483 | $ 24,732 | |
Interest | 19,329 | 25,578 | |
Payroll and vacation | 9,762 | 6,385 | |
Withholding taxes | 2,035 | 173 | |
Billings in excess of costs and estimated earnings on uncompleted contracts | 6,889 | 3,504 | |
Contract expenses | 3,537 | 1,684 | |
Other | 5,020 | 7,615 | |
Total accrued liabilities | 71,055 | 69,671 | [1] |
Loss on Contracts | $ 300 | $ 600 | |
[1] | Data derived from audited consolidated balance sheet as of February 29, 2016. |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | Jul. 31, 2016 | Feb. 29, 2016 | Aug. 31, 2010 | ||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 719,309,000 | $ 719,309,000 | $ 667,672,000 | |||||
Debt Issuance Costs, Gross | (26,143,000) | (26,143,000) | (9,000,000) | |||||
Less: Current portion | (6,223,000) | (6,223,000) | (3,155,000) | [1] | ||||
Total long-term debt | 713,086,000 | 713,086,000 | 664,517,000 | [1] | ||||
Amortization of debt issuance costs | 1,900,000 | $ 1,100,000 | 3,000,000 | $ 2,200,000 | ||||
RCA | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | 38,938,000 | 38,938,000 | 0 | |||||
ABL facility, borrowing available | $ 33,900,000 | $ 33,900,000 | 80,600,000 | |||||
Stated interest rate (as a percent) | 6.25% | 6.25% | ||||||
11% Notes due 2018 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 235,000,000 | $ 235,000,000 | 250,000,000 | |||||
Face amount of debt | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 | |||||
Stated interest rate (as a percent) | 11.00% | 11.00% | ||||||
Secured Notes due 2018 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 0 | $ 0 | 345,353,000 | |||||
Stated interest rate (as a percent) | 13.00% | 13.00% | ||||||
$450 Million Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 450,000,000 | $ 450,000,000 | 0 | |||||
Face amount of debt | $ 450,000,000 | $ 450,000,000 | $ 450,000,000 | |||||
Stated interest rate (as a percent) | 9.00% | 9.00% | ||||||
Term loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 0 | $ 0 | 70,000,000 | |||||
Face amount of debt | $ 70,000,000 | |||||||
Stated interest rate (as a percent) | 8.00% | 8.00% | ||||||
Land, equipment and other obligations | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 21,514,000 | $ 21,514,000 | $ 11,319,000 | |||||
[1] | Data derived from audited consolidated balance sheet as of February 29, 2016. |
Long-Term Debt (Details 2)
Long-Term Debt (Details 2) | Jul. 07, 2016USD ($) | Feb. 28, 2014USD ($) | Feb. 12, 2014 | Aug. 31, 2010USD ($) | Aug. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Aug. 31, 2016USD ($) | Aug. 31, 2015USD ($) | Jul. 31, 2016USD ($) | Aug. 31, 2016USD ($) | Aug. 31, 2015USD ($) | Aug. 30, 2016USD ($) | May 31, 2016 | Feb. 29, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||||||||
Amortization of debt issuance costs | $ 1,900,000 | $ 1,100,000 | $ 3,000,000 | $ 2,200,000 | ||||||||||
Debt and capital lease obligations | $ 719,309,000 | 719,309,000 | $ 719,309,000 | $ 667,672,000 | ||||||||||
Write off of debt issuance costs | $ 3,600,000 | |||||||||||||
Debt issuance costs incurred | $ 23,800,000 | |||||||||||||
Earnings before interest, taxes, depreciation and amortization | 80,000,000 | |||||||||||||
Capital expenditures limit per debt agreement | $ 45,000,000 | |||||||||||||
Reduction amount of capital expenditures limit per debt agreement (up to $5.0 million) | 5,000,000 | |||||||||||||
Non-cash payment-in-kind interest accretion | $ 863,000 | 10,165,000 | ||||||||||||
Letter of Credit for Self Insurance Reserve | 15,000,000 | 15,000,000 | ||||||||||||
Capital lease and other non-cash obligations incurred | 8,606,000 | $ 5,974,000 | ||||||||||||
Debt, percentage bearing fixed interest | 6.00% | |||||||||||||
Element Financial | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Capital lease and other non-cash obligations incurred | $ 5,200,000 | |||||||||||||
Lease term | 45 months | |||||||||||||
Equipment | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Capital lease and other non-cash obligations incurred | 6,500,000 | |||||||||||||
$450 Million Term Loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt and capital lease obligations | $ 450,000,000 | $ 450,000,000 | $ 450,000,000 | 0 | ||||||||||
Stated interest rate (as a percent) | 9.00% | 9.00% | 9.00% | |||||||||||
Face amount of debt | $ 450,000,000 | $ 450,000,000 | $ 450,000,000 | $ 450,000,000 | $ 450,000,000 | |||||||||
$450 Million Term Loan | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Margin added to variable interest rate basis (as a percent) | 8.00% | |||||||||||||
$450 Million Term Loan | Base Rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Margin added to variable interest rate basis (as a percent) | 7.00% | |||||||||||||
$450 Million Term Loan | Floor | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Margin added to variable interest rate basis (as a percent) | 1.00% | |||||||||||||
Secured Notes due 2018 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt and capital lease obligations | $ 0 | $ 0 | $ 0 | 345,353,000 | ||||||||||
Stated interest rate (as a percent) | 13.00% | 13.00% | 13.00% | |||||||||||
Term loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt and capital lease obligations | $ 0 | $ 0 | $ 0 | 70,000,000 | ||||||||||
Stated interest rate (as a percent) | 8.00% | 8.00% | 8.00% | |||||||||||
Face amount of debt | $ 70,000,000 | $ 70,000,000 | ||||||||||||
11% Notes due 2018 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt and capital lease obligations | $ 235,000,000 | $ 235,000,000 | $ 235,000,000 | 250,000,000 | ||||||||||
Stated interest rate (as a percent) | 11.00% | 11.00% | 11.00% | |||||||||||
Face amount of debt | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 | ||||||||||
Redemption price as a percentage of principal amount, as a result of change of control | 101.00% | |||||||||||||
Unamortized debt issuance costs | $ 8,300,000 | |||||||||||||
Debt repurchase amount | $ 15,000,000 | |||||||||||||
RCA | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt and capital lease obligations | $ 38,938,000 | $ 38,938,000 | $ 38,938,000 | $ 0 | ||||||||||
Stated interest rate (as a percent) | 6.25% | 6.25% | 6.25% | |||||||||||
Commitment fee | 0.50% | |||||||||||||
Weighted average interest rate | 5.68% | 5.68% | 6.58% | 5.68% | 6.58% | |||||||||
Covenant Compliance, total availability threshold | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | |||||||||||
RCA | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Margin added to variable interest rate basis (as a percent) | 2.75% | 4.00% | ||||||||||||
Non-cash payment-in-kind interest accretion | $ 0.010 | |||||||||||||
Reduction to variable interest rate (as a percent) | 1.25% | |||||||||||||
RCA | Base Rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Margin added to variable interest rate basis (as a percent) | 1.75% | 3.00% | ||||||||||||
Reduction to variable interest rate (as a percent) | 1.25% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 3.80% | 4.50% | 5.30% | 4.50% |
Income tax expense (benefit) | $ 322 | $ 1,331 | $ (102) | $ 423 |
Retirement and Benefit Progra36
Retirement and Benefit Programs (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Aug. 31, 2016USD ($) | May 31, 2016plan | Aug. 31, 2015USD ($) | May 31, 2015USD ($) | Aug. 31, 2016USD ($) | Aug. 31, 2015USD ($) | |
Compensation and Retirement Disclosure [Abstract] | ||||||
Defined Benefit Plan, Other costs | $ 2,000 | $ 1,400 | $ 3,500 | $ 2,900 | ||
Defined Benefit Plan, Administrative expenses | 100 | $ 100 | 300 | 200 | ||
Number of defined benefit plans | plan | 2 | |||||
Net periodic benefit cost | ||||||
Service cost | 62 | 78 | 124 | 156 | ||
Interest cost | 100 | 93 | 200 | 186 | ||
Expected return on plan assets | (135) | (155) | (270) | (310) | ||
Amortization of prior service cost | 10 | 13 | 20 | 26 | ||
Recognized net actuarial loss | 60 | 54 | 120 | 108 | ||
Total pension expense | $ 97 | $ 83 | $ 194 | $ 166 |
Other Noncurrent Liabilities (D
Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | Feb. 29, 2016 | |
Other Noncurrent Liabilities | |||
Reclamation costs | $ 19,737 | $ 19,116 | |
Executive deferred compensation liability | 4,895 | 4,989 | |
PIK accrued interest | 0 | 9,497 | |
Other | 8,452 | 13,142 | |
Total other noncurrent liabilities | $ 33,084 | $ 46,744 | [1] |
[1] | Data derived from audited consolidated balance sheet as of February 29, 2016. |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2016 | Feb. 29, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Self insurance retention per occurrence | $ 1,000,000 | $ 1,000,000 | |
Amount of surety bond to be maintained with the Commonwealth of Pennsylvania | 2,400,000 | 2,400,000 | |
Letter of credit provided to guarantee payment of deductible portion of liability coverage which existed prior to January 1, 2008 | 100,000 | 100,000 | |
Letter of Credit for Self Insurance Reserve | 15,000,000 | 15,000,000 | |
Other Commitments [Line Items] | |||
Self Insurance Reserve | 15,400,000 | 15,400,000 | $ 16,000,000 |
Insurance Claims | Other Noncurrent Liabilities | |||
Other Commitments [Line Items] | |||
Liability related to insurance settlement receivable | 7,000,000 | ||
Insurance Claims | Other Noncurrent Assets | |||
Other Commitments [Line Items] | |||
Liability related to insurance settlement receivable | $ 4,000,000 | $ 4,000,000 | 7,000,000 |
Rock Solid Insurance Company | |||
Other Commitments [Line Items] | |||
Collateral Amount Recorded as Part of Restricted Cash | $ 15,500,000 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2016USD ($) | Aug. 31, 2015USD ($) | Aug. 31, 2016USD ($)segment | Aug. 31, 2015USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 3 | |||
Segment Reporting | ||||
Revenue | $ 217,955 | $ 246,555 | $ 353,350 | $ 387,271 |
Operating income (loss) | 48,527 | 50,547 | 59,112 | 51,571 |
Depreciation, depletion and amortization | 10,402 | 10,344 | 20,893 | 20,299 |
Expenditures for assets | 17,580 | 6,900 | 28,819 | 17,804 |
Costs Incurred, Deferred Stripping Costs | 0 | 400 | 0 | 500 |
Capitalized Computer Software, Additions | 0 | 0 | 0 | 200 |
Segment totals | ||||
Segment Reporting | ||||
Revenue | 279,428 | 313,415 | 441,686 | 480,124 |
Segment totals | Construction materials | ||||
Segment Reporting | ||||
Revenue | 162,508 | 178,280 | 255,441 | 270,146 |
Operating income (loss) | 49,135 | 48,996 | 67,395 | 62,656 |
Depreciation, depletion and amortization | 7,337 | 6,858 | 14,683 | 13,523 |
Expenditures for assets | 14,547 | 4,779 | 23,879 | 11,490 |
Segment totals | Heavy/highway construction | ||||
Segment Reporting | ||||
Revenue | 86,183 | 107,799 | 127,172 | 158,480 |
Operating income (loss) | 3,409 | 8,203 | 1,198 | 6,991 |
Depreciation, depletion and amortization | 1,455 | 1,880 | 2,996 | 3,577 |
Expenditures for assets | 1,068 | 1,044 | 1,735 | 3,647 |
Segment totals | Traffic safety services and equipment | ||||
Segment Reporting | ||||
Revenue | 30,737 | 27,336 | 59,073 | 51,498 |
Operating income (loss) | 3,720 | 3,207 | 6,869 | 4,816 |
Depreciation, depletion and amortization | 1,280 | 1,261 | 2,552 | 2,496 |
Expenditures for assets | 1,866 | 1,065 | 3,076 | 2,548 |
Corporate and unallocated | ||||
Segment Reporting | ||||
Operating income (loss) | (7,737) | (9,859) | (16,350) | (22,892) |
Depreciation, depletion and amortization | 330 | 345 | 662 | 703 |
Expenditures for assets | 99 | 12 | 129 | 119 |
Eliminations | ||||
Segment Reporting | ||||
Revenue | $ (61,473) | $ (66,860) | $ (88,336) | $ (92,853) |
Supplemental Disclosures of C40
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | ||
Capital lease and other non-cash obligations incurred | $ 8,606 | $ 5,974 |
Cash paid for interest, net of amounts capitalized | $ 60,588 | $ 27,898 |
Condensed Issuer, Guarantor a41
Condensed Issuer, Guarantor and Non Guarantor Financial Information (Details) | Aug. 31, 2016 |
Condensed Issuer, Guarantor and Non Guarantor Financial Information | |
Ownership interest in subsidiaries (as a percent) | 100.00% |
Condensed Issuer, Guarantor a42
Condensed Issuer, Guarantor and Non Guarantor Financial Information (Details 2) - USD ($) $ in Thousands | Aug. 31, 2016 | Feb. 29, 2016 | Aug. 31, 2015 | Feb. 28, 2015 | |
Current assets | |||||
Cash and cash equivalents | $ 11,083 | $ 40,561 | [1] | $ 21,425 | $ 13,293 |
Restricted cash | 1,401 | 22,711 | [1] | ||
Accounts receivable, net | 133,145 | 48,296 | [1] | ||
Inventories | 114,602 | 103,363 | [1] | ||
Net investment in lease | 0 | 0 | |||
Other current assets | 6,919 | 5,134 | [1] | ||
Assets held for sale | 4,912 | 5,558 | [1] | ||
Total current assets | 272,062 | 225,623 | [1] | ||
Property, plant and equipment, net | 316,588 | 307,421 | [1] | ||
Goodwill | 81,492 | 81,492 | [1] | ||
Other intangible assets, net | 16,916 | 17,365 | [1] | ||
Investment in subsidiaries | 0 | 0 | |||
Intercompany receivables | 0 | ||||
Other noncurrent assets | 16,687 | 21,182 | [1] | ||
Total assets | 703,745 | 653,083 | [1] | ||
Current liabilities | |||||
Current maturities of long-term debt | 6,223 | 3,155 | [1] | ||
Accounts payable - trade | 46,948 | 33,481 | [1] | ||
Accrued liabilities | 71,055 | 69,671 | [1] | ||
Total current liabilities | 124,226 | 106,307 | [1] | ||
Intercompany payables | 0 | 0 | |||
Long-term debt, less current maturities | 713,086 | 664,517 | [1] | ||
Obligations under capital leases, less current maturities | 0 | 0 | |||
Deferred income taxes | 20,869 | 20,913 | [1] | ||
Other noncurrent liabilities | 33,084 | 46,744 | [1] | ||
Total liabilities | 891,265 | 838,481 | [1] | ||
(Deficit) equity | |||||
New Enterprise Stone & Lime Co., Inc. (deficit) equity | (189,510) | (187,470) | [1] | ||
Noncontrolling interest | 1,990 | 2,072 | [1] | ||
Total deficit | (187,520) | (185,398) | [1] | ||
Total liabilities and deficit | 703,745 | 653,083 | [1] | ||
New Enterprise Stone & Lime Co., Inc. | |||||
Current assets | |||||
Cash and cash equivalents | 10,933 | 39,380 | 14,391 | 8,633 | |
Restricted cash | 1,348 | 22,658 | |||
Accounts receivable, net | 111,580 | 35,663 | |||
Inventories | 97,905 | 88,602 | |||
Net investment in lease | 0 | 0 | |||
Other current assets | 6,225 | 4,270 | |||
Assets held for sale | 4,912 | 5,558 | |||
Total current assets | 232,903 | 196,131 | |||
Property, plant and equipment, net | 291,294 | 286,854 | |||
Goodwill | 75,647 | 75,647 | |||
Other intangible assets, net | 6,753 | 6,825 | |||
Investment in subsidiaries | 93,353 | 83,794 | |||
Intercompany receivables | 2,169 | ||||
Other noncurrent assets | 15,918 | 16,691 | |||
Total assets | 718,037 | 665,942 | |||
Current liabilities | |||||
Current maturities of long-term debt | 7,031 | 3,581 | |||
Accounts payable - trade | 37,289 | 29,239 | |||
Accrued liabilities | 69,821 | 68,337 | |||
Total current liabilities | 114,141 | 101,157 | |||
Intercompany payables | 15,477 | 12,710 | |||
Long-term debt, less current maturities | 709,591 | 660,571 | |||
Obligations under capital leases, less current maturities | 4,110 | 4,864 | |||
Deferred income taxes | 31,508 | 31,552 | |||
Other noncurrent liabilities | 32,720 | 42,558 | |||
Total liabilities | 907,547 | 853,412 | |||
(Deficit) equity | |||||
New Enterprise Stone & Lime Co., Inc. (deficit) equity | (189,510) | (187,470) | |||
Noncontrolling interest | 0 | 0 | |||
Total deficit | (189,510) | (187,470) | |||
Total liabilities and deficit | 718,037 | 665,942 | |||
Guarantor Subsidiaries | |||||
Current assets | |||||
Cash and cash equivalents | (998) | (125) | 1,197 | 60 | |
Restricted cash | 53 | 53 | |||
Accounts receivable, net | 21,551 | 12,619 | |||
Inventories | 16,697 | 14,761 | |||
Net investment in lease | 0 | 0 | |||
Other current assets | 694 | 864 | |||
Assets held for sale | 0 | 0 | |||
Total current assets | 37,997 | 28,172 | |||
Property, plant and equipment, net | 25,294 | 20,567 | |||
Goodwill | 5,845 | 5,845 | |||
Other intangible assets, net | 10,163 | 10,540 | |||
Investment in subsidiaries | 0 | 0 | |||
Intercompany receivables | (2,169) | ||||
Other noncurrent assets | 769 | 838 | |||
Total assets | 77,899 | 65,962 | |||
Current liabilities | |||||
Current maturities of long-term debt | 0 | 0 | |||
Accounts payable - trade | 9,372 | 3,955 | |||
Accrued liabilities | 1,234 | 1,334 | |||
Total current liabilities | 10,606 | 5,289 | |||
Intercompany payables | (15,511) | (12,744) | |||
Long-term debt, less current maturities | 0 | 0 | |||
Obligations under capital leases, less current maturities | 0 | 0 | |||
Deferred income taxes | (10,639) | (10,639) | |||
Other noncurrent liabilities | 364 | 533 | |||
Total liabilities | (15,180) | (17,561) | |||
(Deficit) equity | |||||
New Enterprise Stone & Lime Co., Inc. (deficit) equity | 93,079 | 83,523 | |||
Noncontrolling interest | 0 | 0 | |||
Total deficit | 93,079 | 83,523 | |||
Total liabilities and deficit | 77,899 | 65,962 | |||
Non Guarantors | |||||
Current assets | |||||
Cash and cash equivalents | 1,148 | 1,306 | 5,837 | 4,600 | |
Restricted cash | 0 | 0 | |||
Accounts receivable, net | 14 | 14 | |||
Inventories | 0 | 0 | |||
Net investment in lease | 1,730 | 1,344 | |||
Other current assets | 0 | 0 | |||
Assets held for sale | 0 | 0 | |||
Total current assets | 2,892 | 2,664 | |||
Property, plant and equipment, net | 4,110 | 4,864 | |||
Goodwill | 0 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Investment in subsidiaries | 0 | 0 | |||
Intercompany receivables | 0 | ||||
Other noncurrent assets | 0 | 3,653 | |||
Total assets | 7,002 | 11,181 | |||
Current liabilities | |||||
Current maturities of long-term debt | 922 | 918 | |||
Accounts payable - trade | 287 | 287 | |||
Accrued liabilities | 0 | 0 | |||
Total current liabilities | 1,209 | 1,205 | |||
Intercompany payables | 34 | 34 | |||
Long-term debt, less current maturities | 3,495 | 3,946 | |||
Obligations under capital leases, less current maturities | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Other noncurrent liabilities | 0 | 3,653 | |||
Total liabilities | 4,738 | 8,838 | |||
(Deficit) equity | |||||
New Enterprise Stone & Lime Co., Inc. (deficit) equity | 274 | 271 | |||
Noncontrolling interest | 1,990 | 2,072 | |||
Total deficit | 2,264 | 2,343 | |||
Total liabilities and deficit | 7,002 | 11,181 | |||
Eliminations | |||||
Current assets | |||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |
Restricted cash | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | |||
Inventories | 0 | 0 | |||
Net investment in lease | (1,730) | (1,344) | |||
Other current assets | 0 | 0 | |||
Assets held for sale | 0 | 0 | |||
Total current assets | (1,730) | (1,344) | |||
Property, plant and equipment, net | (4,110) | (4,864) | |||
Goodwill | 0 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Investment in subsidiaries | (93,353) | (83,794) | |||
Intercompany receivables | 0 | ||||
Other noncurrent assets | 0 | 0 | |||
Total assets | (99,193) | (90,002) | |||
Current liabilities | |||||
Current maturities of long-term debt | (1,730) | (1,344) | |||
Accounts payable - trade | 0 | 0 | |||
Accrued liabilities | 0 | 0 | |||
Total current liabilities | (1,730) | (1,344) | |||
Intercompany payables | 0 | 0 | |||
Long-term debt, less current maturities | 0 | 0 | |||
Obligations under capital leases, less current maturities | (4,110) | (4,864) | |||
Deferred income taxes | 0 | 0 | |||
Other noncurrent liabilities | 0 | 0 | |||
Total liabilities | (5,840) | (6,208) | |||
(Deficit) equity | |||||
New Enterprise Stone & Lime Co., Inc. (deficit) equity | (93,353) | (83,794) | |||
Noncontrolling interest | 0 | 0 | |||
Total deficit | (93,353) | (83,794) | |||
Total liabilities and deficit | $ (99,193) | $ (90,002) | |||
[1] | Data derived from audited consolidated balance sheet as of February 29, 2016. |
Condensed Issuer, Guarantor a43
Condensed Issuer, Guarantor and Non Guarantor Financial Information (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Condensed Issuer, Guarantor and Non Guarantor Financial Information | ||||
Revenue | $ 217,955 | $ 246,555 | $ 353,350 | $ 387,271 |
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | 149,650 | 177,700 | 254,366 | 292,650 |
Depreciation, depletion and amortization | 10,402 | 10,344 | 20,893 | 20,299 |
Asset impairment | 64 | 0 | 64 | 183 |
Selling, administrative and general expenses | 9,771 | 11,697 | 19,765 | 26,401 |
Gain on disposals of property, equipment and software | (459) | (3,733) | (850) | (3,833) |
Operating income (loss) | 48,527 | 50,547 | 59,112 | 51,571 |
Interest expense, net | (40,040) | (21,146) | (61,019) | (42,216) |
Income (loss) before income taxes | 8,487 | 29,401 | (1,907) | 9,355 |
Income tax expense (benefit) | 322 | 1,331 | (102) | 423 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 8,165 | 28,070 | (1,805) | 8,932 |
Less: Comprehensive income attributable to noncontrolling interest | (160) | (137) | (318) | (272) |
Net income attributable to New Enterprise Stone & Lime Co., Inc. | 8,005 | 27,933 | (2,123) | 8,660 |
Unrealized actuarial gains and amortization of prior service costs, net of income tax | 42 | 39 | 83 | 78 |
Comprehensive income | 8,207 | 28,109 | (1,722) | 9,010 |
Comprehensive income attributable to New Enterprise Stone & Lime Co., Inc. | 8,047 | 27,972 | (2,040) | 8,738 |
New Enterprise Stone & Lime Co., Inc. | ||||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | ||||
Revenue | 188,906 | 222,167 | 298,210 | 341,691 |
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | 128,154 | 160,022 | 212,889 | 258,673 |
Depreciation, depletion and amortization | 8,994 | 9,036 | 18,171 | 17,717 |
Asset impairment | 0 | 0 | 0 | 160 |
Selling, administrative and general expenses | 7,849 | 10,144 | 16,622 | 23,231 |
Gain on disposals of property, equipment and software | (344) | (3,730) | (692) | (3,783) |
Operating income (loss) | 44,253 | 46,695 | 51,220 | 45,693 |
Interest expense, net | (39,907) | (21,215) | (60,931) | (42,330) |
Income (loss) before income taxes | 4,346 | 25,480 | (9,711) | 3,363 |
Income tax expense (benefit) | 322 | 1,331 | (102) | 423 |
Equity in earnings of subsidiaries | 3,981 | 3,784 | 7,486 | 5,720 |
Net income | 8,005 | 27,933 | (2,123) | 8,660 |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | |
Net income attributable to New Enterprise Stone & Lime Co., Inc. | 8,005 | 27,933 | (2,123) | 8,660 |
Unrealized actuarial gains and amortization of prior service costs, net of income tax | 42 | 39 | 83 | 78 |
Comprehensive income | 8,047 | 27,972 | (2,040) | 8,738 |
Comprehensive income attributable to New Enterprise Stone & Lime Co., Inc. | 8,047 | 27,972 | (2,040) | 8,738 |
Guarantor Subsidiaries | ||||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | ||||
Revenue | 29,527 | 24,388 | 56,019 | 45,775 |
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | 22,285 | 17,600 | 42,793 | 34,269 |
Depreciation, depletion and amortization | 1,408 | 1,308 | 2,722 | 2,582 |
Asset impairment | 64 | 0 | 64 | 23 |
Selling, administrative and general expenses | 1,922 | 1,513 | 3,143 | 3,047 |
Gain on disposals of property, equipment and software | (115) | (3) | (158) | (50) |
Operating income (loss) | 3,963 | 3,970 | 7,455 | 5,904 |
Interest expense, net | 16 | 43 | 28 | 61 |
Income (loss) before income taxes | 3,979 | 4,013 | 7,483 | 5,965 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 3,979 | 4,013 | 7,483 | 5,965 |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to New Enterprise Stone & Lime Co., Inc. | 3,979 | 4,013 | 7,483 | 5,965 |
Unrealized actuarial gains and amortization of prior service costs, net of income tax | 0 | 0 | 0 | 0 |
Comprehensive income | 3,979 | 4,013 | 7,483 | 5,965 |
Comprehensive income attributable to New Enterprise Stone & Lime Co., Inc. | 3,979 | 4,013 | 7,483 | 5,965 |
Non Guarantors | ||||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | ||||
Revenue | 386 | 229 | 771 | 3,420 |
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | 0 | 217 | 0 | 3,172 |
Depreciation, depletion and amortization | 0 | 0 | 0 | 0 |
Asset impairment | 0 | 0 | 0 | 0 |
Selling, administrative and general expenses | 0 | 40 | 0 | 123 |
Gain on disposals of property, equipment and software | 0 | 0 | 0 | 0 |
Operating income (loss) | 386 | (28) | 771 | 125 |
Interest expense, net | (224) | (64) | (450) | (98) |
Income (loss) before income taxes | 162 | (92) | 321 | 27 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 162 | (92) | 321 | 27 |
Less: Comprehensive income attributable to noncontrolling interest | (160) | (137) | (318) | (272) |
Net income attributable to New Enterprise Stone & Lime Co., Inc. | 2 | (229) | 3 | (245) |
Unrealized actuarial gains and amortization of prior service costs, net of income tax | 0 | 0 | 0 | |
Comprehensive income | 162 | (92) | 321 | 27 |
Comprehensive income attributable to New Enterprise Stone & Lime Co., Inc. | 2 | (229) | 3 | (245) |
Eliminations | ||||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | ||||
Revenue | (864) | (229) | (1,650) | (3,615) |
Cost of revenue (exclusive of Depreciation, depletion and amortization shown separately below) | (789) | (139) | (1,316) | (3,464) |
Depreciation, depletion and amortization | 0 | 0 | 0 | 0 |
Asset impairment | 0 | 0 | 0 | 0 |
Selling, administrative and general expenses | 0 | 0 | 0 | 0 |
Gain on disposals of property, equipment and software | 0 | 0 | 0 | 0 |
Operating income (loss) | (75) | (90) | (334) | (151) |
Interest expense, net | 75 | 90 | 334 | 151 |
Income (loss) before income taxes | 0 | 0 | 0 | 0 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | (3,981) | (3,784) | (7,486) | (5,720) |
Net income | (3,981) | (3,784) | (7,486) | (5,720) |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to New Enterprise Stone & Lime Co., Inc. | (3,981) | (3,784) | (7,486) | (5,720) |
Unrealized actuarial gains and amortization of prior service costs, net of income tax | 0 | 0 | 0 | 0 |
Comprehensive income | (3,981) | (3,784) | (7,486) | (5,720) |
Comprehensive income attributable to New Enterprise Stone & Lime Co., Inc. | $ (3,981) | $ (3,784) | $ (7,486) | $ (5,720) |
Condensed Issuer, Guarantor a44
Condensed Issuer, Guarantor and Non Guarantor Financial Information (Details 4) - USD ($) $ in Thousands | 6 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | ||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | |||
Cash flows from operating activities | $ (47,391) | $ (14,132) | |
Cash flows from investing activities | |||
Capital expenditures | (32,565) | (11,830) | |
Proceeds from sale of property, equipment and assets held for sale | 1,597 | 5,849 | |
Change in restricted cash | 21,310 | 154 | |
Net cash used in investing activities | (9,658) | (5,827) | |
Cash flows from financing activities | |||
Proceeds from issuance of short-term borrowings | 38,938 | 30,091 | |
Proceeds from issuance of long-term debt and other obligations | 455,200 | 0 | |
Repayments of long-term debt and other obligations | (443,101) | (1,709) | |
Debt issuance costs | (23,066) | 0 | |
Distribution to noncontrolling interest | (400) | (291) | |
Net cash provided by financing activities | 27,571 | 28,091 | |
Net (decrease) increase in cash and cash equivalents | (29,478) | 8,132 | |
Cash and cash equivalents | |||
Beginning of period | 40,561 | [1] | 13,293 |
End of period | 11,083 | 21,425 | |
New Enterprise Stone & Lime Co., Inc. | |||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | |||
Cash flows from operating activities | (48,740) | (17,276) | |
Cash flows from investing activities | |||
Capital expenditures | (31,032) | (11,830) | |
Proceeds from sale of property, equipment and assets held for sale | 1,597 | 5,849 | |
Change in restricted cash | 21,310 | 128 | |
Net cash used in investing activities | (8,125) | (5,853) | |
Cash flows from financing activities | |||
Proceeds from issuance of short-term borrowings | 38,938 | 30,091 | |
Proceeds from issuance of long-term debt and other obligations | 455,200 | ||
Repayments of long-term debt and other obligations | (442,654) | (1,204) | |
Debt issuance costs | (23,066) | ||
Distribution to noncontrolling interest | 0 | 0 | |
Net cash provided by financing activities | 28,418 | 28,887 | |
Net (decrease) increase in cash and cash equivalents | (28,447) | 5,758 | |
Cash and cash equivalents | |||
Beginning of period | 39,380 | 8,633 | |
End of period | 10,933 | 14,391 | |
Guarantor Subsidiaries | |||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | |||
Cash flows from operating activities | 660 | 1,110 | |
Cash flows from investing activities | |||
Capital expenditures | (1,533) | 0 | |
Proceeds from sale of property, equipment and assets held for sale | 0 | 0 | |
Change in restricted cash | 0 | 27 | |
Net cash used in investing activities | (1,533) | 27 | |
Cash flows from financing activities | |||
Proceeds from issuance of short-term borrowings | 0 | 0 | |
Proceeds from issuance of long-term debt and other obligations | 0 | ||
Repayments of long-term debt and other obligations | 0 | 0 | |
Debt issuance costs | 0 | ||
Distribution to noncontrolling interest | 0 | 0 | |
Net cash provided by financing activities | 0 | 0 | |
Net (decrease) increase in cash and cash equivalents | (873) | 1,137 | |
Cash and cash equivalents | |||
Beginning of period | (125) | 60 | |
End of period | (998) | 1,197 | |
Non Guarantors | |||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | |||
Cash flows from operating activities | 689 | 2,034 | |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | |
Proceeds from sale of property, equipment and assets held for sale | 0 | 0 | |
Change in restricted cash | 0 | (1) | |
Net cash used in investing activities | 0 | (1) | |
Cash flows from financing activities | |||
Proceeds from issuance of short-term borrowings | 0 | 0 | |
Proceeds from issuance of long-term debt and other obligations | 0 | ||
Repayments of long-term debt and other obligations | (447) | (505) | |
Debt issuance costs | 0 | ||
Distribution to noncontrolling interest | (400) | (291) | |
Net cash provided by financing activities | (847) | (796) | |
Net (decrease) increase in cash and cash equivalents | (158) | 1,237 | |
Cash and cash equivalents | |||
Beginning of period | 1,306 | 4,600 | |
End of period | 1,148 | 5,837 | |
Eliminations | |||
Condensed Issuer, Guarantor and Non Guarantor Financial Information | |||
Cash flows from operating activities | 0 | 0 | |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | |
Proceeds from sale of property, equipment and assets held for sale | 0 | 0 | |
Change in restricted cash | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | |
Cash flows from financing activities | |||
Proceeds from issuance of short-term borrowings | 0 | 0 | |
Proceeds from issuance of long-term debt and other obligations | 0 | ||
Repayments of long-term debt and other obligations | 0 | 0 | |
Debt issuance costs | 0 | ||
Distribution to noncontrolling interest | 0 | 0 | |
Net cash provided by financing activities | 0 | 0 | |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents | |||
Beginning of period | 0 | 0 | |
End of period | $ 0 | $ 0 | |
[1] | Data derived from audited consolidated balance sheet as of February 29, 2016. |