BMC Stock (BMCH) 10-Q 9 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 08, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	BMC Stock Holdings, Inc.
Entity Central Index Key	1,574,815
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		67,037,404

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 12,117	$ 8,917
Accounts receivable, net of allowances	365,989	313,304
Inventories, net	307,685	272,276
Costs in excess of billings on uncompleted contracts	27,415	26,373
Income taxes receivable	0	2,437
Prepaid expenses and other current assets	57,209	43,635
Total current assets	770,415	666,942
Property and equipment, net of accumulated depreciation	303,314	286,741
Deferred income taxes	0	550
Customer relationship intangible assets, net of accumulated amortization	169,637	164,191
Other intangible assets, net of accumulated amortization	1,831	3,024
Goodwill	262,042	254,832
Other long-term assets	15,323	18,734
Total assets	1,522,562	1,395,014
Current liabilities
Accounts payable	187,519	165,540
Accrued expenses and other liabilities	91,620	88,786
Billings in excess of costs on uncompleted contracts	20,021	15,691
Income taxes payable	4,329	0
Interest payable	9,707	5,619
Current portion: Long-term debt and capital lease obligations	8,137	11,155
Current portion: Insurance reserves	14,464	16,021
Total current liabilities	335,797	302,812
Insurance reserves	38,006	39,184
Long-term debt	396,246	344,827
Long-term portion of capital lease obligations	16,601	20,581
Deferred income taxes	1,205	0
Other long-term liabilities	7,261	7,009
Total liabilities	795,116	714,413
Commitments and contingencies (Note 8)
Stockholders' equity
Preferred stock, $0.01 par value, 50.0 million shares authorized, no shares issued and outstanding at September 30, 2017 and December 31, 2016	0	0
Common stock, $0.01 par value, 300.0 million shares authorized, 67.1 million and 66.8 million shares issued, and 66.9 million and 66.7 million outstanding at September 30, 2017 and December 31, 2016, respectively	671	668
Additional paid-in capital	656,688	649,280
Retained earnings	72,965	33,182
Treasury stock, at cost, 0.2 million and 0.1 million shares at September 30, 2017 and December 31, 2016, respectively	(2,878)	(2,529)
Total stockholders' equity	727,446	680,601
Total liabilities and stockholders' equity	$ 1,522,562	$ 1,395,014

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares shares in Millions	Sep. 30, 2017	Dec. 31, 2016
Stockholders' Equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50	50
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	300	300
Common stock, shares issued (in shares)	67.1	66.8
Common stock, shares outstanding (in shares)	66.9	66.7
Treasury stock, shares	0.2	0.1

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net sales
Building products	$ 671,316	$ 613,763	$ 1,919,923	$ 1,768,834
Construction services	209,696	207,441	605,164	577,335
Net sales	881,012	821,204	2,525,087	2,346,169
Cost of sales
Building products	499,182	446,028	1,427,253	1,309,925
Construction services	172,285	172,210	498,405	475,006
Cost of sales	671,467	618,238	1,925,658	1,784,931
Gross profit	209,545	202,966	599,429	561,238
Selling, general and administrative expenses	158,193	149,498	464,870	431,176
Depreciation expense	11,053	9,784	32,555	27,866
Amortization expense	4,026	5,349	11,947	15,882
Merger and integration costs	2,574	4,655	13,339	11,088
Impairment of assets	409	0	435	11,883
Total operating expenses	176,255	169,286	523,146	497,895
Income from operations	33,290	33,680	76,283	63,343
Other income (expense)
Interest expense	(6,377)	(7,668)	(18,960)	(24,020)
Loss on debt extinguishment	0	(12,529)	0	(12,529)
Other income, net	1,083	735	2,366	3,601
Income before income taxes	27,996	14,218	59,689	30,395
Income tax expense	9,553	4,982	19,906	9,933
Net income	$ 18,443	$ 9,236	$ 39,783	$ 20,462
Weighted average common shares outstanding
Basic (in shares)	66,958	66,435	66,860	65,873
Diluted (in shares)	67,442	67,085	67,341	66,455
Net income per common share
Basic (in dollars per share)	$ 0.28	$ 0.14	$ 0.60	$ 0.31
Diluted (in dollars per share)	$ 0.27	$ 0.14	$ 0.59	$ 0.31

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net income	$ 39,783	$ 20,462
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	40,049	35,215
Amortization of intangible assets	11,947	15,882
Amortization of debt issuance costs	1,263	2,690
Deferred income taxes	1,755	(4,638)
Non-cash stock compensation expense	4,751	5,544
Loss (gain) on sale of property, equipment and real estate	301	(363)
Impairment of assets	435	11,883
Loss on debt extinguishment	0	12,529
Amortization of inventory step-up charges	0	2,884
Gain on insurance proceeds	0	(1,003)
Other non-cash adjustments	463	121
Change in assets and liabilities, net of effects of acquisitions
Accounts receivable, net of allowances	(46,591)	(43,739)
Inventories, net	(30,837)	(35,718)
Accounts payable	22,633	49,462
Other assets and liabilities	2,228	(7,390)
Net cash provided by operating activities	48,180	63,821
Cash flows from investing activities
Purchases of property, equipment and real estate	(51,292)	(26,126)
Purchases of businesses, net of cash acquired	(38,737)	0
Proceeds from sale of property, equipment and real estate	3,545	1,066
Insurance proceeds	0	1,151
Net cash used in investing activities	(86,484)	(23,909)
Cash flows from financing activities
Proceeds from revolving line of credit	769,458	1,227,050
Repayments of proceeds from revolving line of credit	(717,626)	(1,352,408)
Principal payments on other notes	(2,603)	(2,900)
Payments on capital leases obligations	(7,753)	(6,300)
Payments of debt issuance costs	(38)	(5,824)
Proceeds from issuance of senior secured notes	0	350,000
Redemption of senior secured notes	0	(250,000)
Proceeds from issuance of common stock, net of offering costs	0	13,776
Payments of debt extinguishment costs	0	(8,438)
Other financing activities, net	66	793
Net cash provided by (used in) financing activities	41,504	(34,251)
Net increase in cash and cash equivalents	3,200	5,661
Cash and cash equivalents
Beginning of period	8,917	1,089
End of period	12,117	6,750
Supplemental disclosure of non-cash investing and financing transactions
Assets acquired under capital lease obligations	$ 2,481	$ 8,493

Organization

Organization	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization These unaudited financial statements represent the financial statements of BMC Stock Holdings, Inc., and its subsidiaries. All references to “BMC,” “we,” “us,” “our” or the “Company” mean BMC Stock Holdings, Inc. The Company distributes lumber and building materials to new construction and repair and remodeling contractors. Additionally, we provide solution-based services to our customers, including component design, product specification and installation services.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) that permit reduced disclosure for interim periods. The condensed consolidated balance sheet as of December 31, 2016 was derived from audited financial statements, but does not include all necessary disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). The unaudited condensed consolidated financial statements include all accounts of the Company and its subsidiaries and, in the opinion of management, include all recurring adjustments and normal accruals necessary for a fair statement of the Company’s financial position, results of operations and cash flows for the dates and periods presented. These unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (“ 2016 Annual Report on Form 10-K”). Results for interim periods are not necessarily indicative of the results to be expected during the remainder of the current year or for any future period. All material intercompany accounts and transactions have been eliminated in consolidation. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. Comprehensive income Comprehensive income is equal to the net income for all periods presented. Recently adopted accounting pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 requires that inventory within the scope of the guidance be measured at the lower of cost and net realizable value. Prior to the issuance of the standard, inventory was measured at the lower of cost or market, where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin. Inventory measured using last-in, first-out (LIFO) and the retail inventory method are not impacted by the new guidance. Prospective application is required and early adoption is permitted. ASU 2015-11 became effective for the Company’s annual and interim periods beginning on January 1, 2017. The adoption of the guidance did not have a material impact on our financial statements. Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), and issued subsequent amendments to the initial guidance within Accounting Standards Update 2016-08, Revenue from Contracts with Customers, Principal versus Agent Considerations (“ASU 2016-08”) issued in March 2016, Accounting Standards Update 2016-10, Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing (“ASU 2016-10”) issued in April 2016, Accounting Standards Update 2016-12, Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”) issued in May 2016 and Accounting Standards Update 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”) issued in December 2016 (ASU 2014-09, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 collectively “Topic 606”). Topic 606 provides a comprehensive revenue recognition model requiring companies to recognize revenue for the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In July 2015, the FASB voted to defer the effective date of ASU 2014-09 by one year, and therefore, the standard is effective for the Company’s annual and interim periods beginning on January 1, 2018. The guidance permits the use of either a full retrospective or modified retrospective transition method. We expect to adopt the standard on January 1, 2018 using the modified retrospective transition method, which recognizes the cumulative effect of initially applying the standard in retained earnings on the date of adoption, with the option to utilize certain practical expedients as defined in Topic 606. We do not expect the adoption of the standard to have a material impact on the timing of revenue recognition nor the amount of revenue recognized from our building products contracts. Revenue for our building products contracts will continue to be recognized at a point in time, when control of the promised goods is transferred to our customers, with the exception of certain product offerings which are customized to customer specifications and meet the criteria to be recognized over time, which is consistent with the Company’s current accounting. We are continuing to evaluate the impact of the standard on our contracts with a service element but based on our current assessment, we expect that revenue for our construction services contracts will generally continue to be recognized over time as the Company satisfies the performance obligations in the contracts. We also continue to evaluate the disclosure requirements of the standard, which are expected to be significant and incremental to the current disclosures. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (“ASU 2016-02”). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability 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. ASU 2016-02 is effective for the Company’s annual and interim periods beginning on January 1, 2019. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are in the process of evaluating the impact of the standard on our financial statements. As a lessee, certain of our various leases under existing guidance are classified as operating leases that are not recorded on the balance sheet but are recorded in the statement of operations as expense is incurred. Upon adoption of the standard, we will be required to record substantially all leases on the balance sheet as a ROU asset and a lease liability. The timing of expense recognition and classification in the statement of operations could change based on the classification of leases as either operating or financing. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 was issued to decrease the diversity in practice of how certain cash receipts and cash payments are presented and classified in the statement of cash flows by providing guidance on eight specific cash flow issues. ASU 2016-15 is effective for the Company’s annual and interim periods beginning on January 1, 2018, with early adoption permitted and retrospective application required. The adoption of the standard is not expected to have a material impact on our financial statements. In November 2016, the FASB issued Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 requires that the statement of cash flows include restricted cash in the beginning and end-of-period total amounts shown and that the statement of cash flows explain the changes in restricted cash during the period. ASU 2016-18 is effective for the Company's annual and interim periods beginning on January 1, 2018. Retrospective application is required and early adoption is permitted. The adoption of the standard is not expected to have a material impact on our financial statements. In January 2017, the FASB issued Accounting Standards Update 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”). ASU 2017-01 provides guidance in determining when a set of assets and activities meets the definition of a business. ASU 2017-01 is effective for the Company's annual and interim periods beginning on January 1, 2018. Early application is permitted for transactions meeting certain criteria and prospective application is required. The adoption of the standard is not expected to have a material impact on our financial statements. In January 2017, the FASB issued Accounting Standards Update 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires computation of the implied fair value of a reporting unit's goodwill. The amount of a goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for the Company's annual goodwill impairment test and any interim tests during the Company's annual and interim periods beginning on January 1, 2020. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. Prospective application is required. The adoption of the standard is not expected to have a material impact on our financial statements. In February 2017, the FASB issued Accounting Standards Update 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (“ASU 2017-05”). ASU 2017-05 clarifies the scope of Subtopic 610-20, which provides guidance for recognizing gains and losses from the sale or transfer of nonfinancial assets in contracts with noncustomers. ASU 2017-05 also provides guidance for partial sales of nonfinancial assets. ASU 2017-05 is effective for the Company’s annual and interim periods beginning on January 1, 2018 and we are required to adopt ASU 2017-05 at the same time that we adopt ASU 2014-09. The guidance permits the use of either a retrospective or cumulative effect transition method. The adoption of the standard is not expected to have a material impact on our financial statements. In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under ASC 718. ASU 2017-09 is effective for the Company’s annual and interim periods beginning on January 1, 2018, with early adoption permitted. ASU 2017-09 is to be applied prospectively to an award modified on or after the adoption date. The adoption of the standard is not expected to have a material impact on our financial statements.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Acquisitions	Acquisitions For all acquisitions, the Company allocates the purchase price to assets acquired and liabilities assumed as of the date of acquisition based on the estimated fair values at the date of acquisition. The excess of the fair value of the purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill. Management makes significant estimates and assumptions when determining the fair value of assets acquired and liabilities assumed. These estimates include, but are not limited to, discount rates, projected future net sales, projected future expected cash flows and useful lives. Acquisition of Code Plus Components, LLC On March 27, 2017 , the Company acquired substantially all of the assets and assumed certain liabilities of Code Plus Components, LLC (“Code Plus”), a manufacturer of structural components located in Martinsburg, West Virginia, for a purchase price of $7.1 million . This acquisition allowed the Company to add truss manufacturing capability to its value-added offerings in the Washington, DC metro area. The purchase price includes an initial holdback of $0.4 million due to the sellers one year from the closing date. The holdback amount may be reduced under certain circumstances. Additionally, the acquisition includes an earnout provision that would require the Company to pay the sellers up to an additional $0.8 million upon the acquired operations achieving certain performance targets from the acquisition date through December 31, 2018. The Company funded the transaction through borrowings on the Company’s revolving line of credit. The acquisition was accounted for using the acquisition method of accounting under ASC 805, Business Combinations, whereby the results of operations of Code Plus are included in the Company’s consolidated financial statements beginning on the acquisition date. The preliminary purchase price allocation resulted in the recognition of goodwill of $3.4 million , a customer relationship intangible asset of $2.3 million and a non-compete agreement intangible asset of $0.5 million , as well as other operating assets and liabilities. The customer relationship intangible asset and non-compete agreement intangible asset have useful lives of 12 years and 5 years , respectively. Goodwill represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and non-contractual relationships, as well as expected future synergies. All of the goodwill recognized is expected to be deductible for tax purposes. For the year ended December 31, 2016, Code Plus generated net sales of approximately $14.2 million . The Company incurred transaction costs of $0 and $0.1 million for the three and nine months ended September 30, 2017 , respectively, which are included in selling, general and administrative expenses in the unaudited condensed consolidated statements of operations. Acquisition of Texas Plywood & Lumber Company, Inc. On April 3, 2017 , the Company acquired substantially all of the assets and assumed certain liabilities of Texas Plywood & Lumber Company, Inc. (“TexPly”), a supplier of production millwork and doors in the Dallas-Fort Worth area, for a preliminary purchase price of $32.0 million , of which $2.5 million was deposited in an escrow account to fund post-closing adjustments and other indemnification obligations for a period of one year from the closing date of the acquisition. This acquisition enhances the Company’s value-added offerings and footprint in the Dallas-Fort Worth market. The acquisition was accounted for using the acquisition method of accounting under ASC 805, Business Combinations, whereby the results of operations of TexPly are included in the Company’s consolidated financial statements beginning on the acquisition date. The preliminary purchase price allocation resulted in the initial recognition of goodwill of $3.8 million , a customer relationship intangible asset of $13.4 million , accounts receivable of $5.2 million , inventory of $4.0 million and real property of $5.4 million , as well as other operating assets and liabilities. The customer relationship intangible asset has a useful life of 13 years . Goodwill represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and non-contractual relationships, as well as expected future synergies. All of the goodwill recognized is expected to be deductible for tax purposes. For the year ended December 31, 2016, TexPly generated net sales of approximately $55.2 million . The Company incurred transaction costs of $0 and $0.2 million for the three and nine months ended September 30, 2017 , respectively, which are included in selling, general and administrative expenses in the unaudited condensed consolidated statements of operations. The purchase price allocations of Code Plus and TexPly are preliminary and based upon all information available to the Company at the present time, and are subject to change. The Company is in the process of finalizing its valuation of the acquired intangible assets, property and equipment and inventory and therefore, the initial purchase accounting is not complete. As we receive additional information during the measurement period, the fair values assigned to the assets and liabilities may be adjusted. Net sales for Code Plus and TexPly, in aggregate, included in the unaudited condensed consolidated statements of operations were $18.5 million and $38.0 million for the three and nine months ended September 30, 2017 , respectively. Estimated pre-tax earnings of Code Plus and TexPly, in aggregate, included in the unaudited condensed consolidated statements of operations were $1.5 million and $2.6 million for the three and nine months ended September 30, 2017 , respectively. The impact of the acquisitions was not considered significant for the reporting of pro forma financial information.

Accounts Receivable

Accounts Receivable	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable consist of the following at September 30, 2017 and December 31, 2016 : (in thousands) September 30, December 31, Trade receivables $ 378,104 $ 323,725 Allowance for doubtful accounts (4,436 ) (4,162 ) Other allowances (7,679 ) (6,259 ) $ 365,989 $ 313,304

Impairment of BMHC ERP System I

Impairment of BMHC ERP System Impairment of BMHC ERP System	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Impairment of BMHC ERP System	Impairment of BMHC ERP System During 2013, Building Materials Holding Corporation (“BMHC” or “Legacy BMHC”) selected a new third-party software vendor for its planned Enterprise Resource Planning (“New ERP”) system and began incurring costs related to design, development and implementation of the New ERP. BMHC also began paying an annual licensing fee. During March 2016, the Company decided to integrate all operations under the Enterprise Resource Planning system utilized by Stock Building Supply Holdings, Inc. (“SBS” and the “Legacy SBS ERP system”) and to discontinue use of the New ERP. In connection with this decision, the Company recorded asset impairment charges of approximately $11.9 million in its unaudited condensed consolidated statement of operations for the nine months ended September 30, 2016 related to capitalized software development costs for New ERP functionality that the Company had intended to implement in future periods. These costs had previously been recorded as construction-in-progress within property and equipment on the condensed consolidated balance sheets. During June 2017, the Company determined that it had ceased receiving economic benefit from certain non-cancellable license and service contracts related to the New ERP. In accordance with ASC 420, Exit or Disposal Cost Obligations, as of the cease use date, the Company recognized approximately $2.8 million of expense within merger and integration costs in its unaudited condensed consolidated statements of operations for the nine months ended September 30, 2017 , consisting of $2.1 million for contractual payments due subsequent to the cease use date, all of which have been paid as of September 30, 2017, and the acceleration of expense recognition of unamortized prepaid costs of $0.7 million .

Debt

Debt	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Debt	Debt Long-term debt as of September 30, 2017 and December 31, 2016 consists of the following: (in thousands) September 30, December 31, Senior secured notes, due 2024 $ 350,000 $ 350,000 Revolving credit agreement 51,832 — Other 360 2,963 402,192 352,963 Unamortized debt issuance costs related to senior secured notes (5,848 ) (6,474 ) 396,344 346,489 Less: Current portion of long-term debt 98 1,662 $ 396,246 $ 344,827 Senior Secured Notes On September 15, 2016 , the Company issued $350.0 million of senior secured notes due 2024 (the “Senior Notes”) under an unregistered private placement not subject to the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The Senior Notes were issued by BMC East, LLC, a 100% owned subsidiary of the Company, and are guaranteed by the Company and the other subsidiaries that guarantee our Credit Agreement (as defined below). Each of the subsidiary guarantors is 100% owned, directly or indirectly, by the Company, and all guarantees are full and unconditional and joint and several. The interest rate is fixed at 5.5% and is payable semiannually on April 1 and October 1 . The net cash proceeds from the Senior Notes were used to redeem in full $250.0 million of 9.0% senior secured notes that were issued by BMHC in September 2013 and that were scheduled to mature in September 2018 (the “Extinguished Senior Notes”). In connection with the redemption of the Extinguished Senior Notes, the Company incurred a loss on debt extinguishment of $12.5 million for the nine months ended September 30, 2016 , consisting of a call premium of $8.4 million , and the write-off of unamortized debt issuance costs and original issue discount of $4.1 million . As of September 30, 2017 , the estimated market value of the Senior Notes was $16.6 million higher than the carrying amount. The fair value is based on institutional trading activity and was classified as a Level 2 measurement in accordance with ASC 820. Revolving Credit Agreement On December 1, 2015 , we entered into a senior secured credit agreement with Wells Fargo Capital Finance, as administrative agent, and certain other lenders (the “Credit Agreement”), which includes a revolving line of credit (the “Revolver”). The Credit Agreement, as amended, has an aggregate commitment of $375.0 million . We had outstanding borrowings under the Revolver of $51.8 million with net availability of $256.4 million as of September 30, 2017 . The weighted average interest rate on outstanding LIBOR Rate borrowings of $40.0 million was 2.74% and the interest rate on Base Rate borrowings of $11.8 million was 4.75% as of September 30, 2017 . We had $66.8 million in letters of credit outstanding under the Credit Agreement as of September 30, 2017 . The carrying value of the Revolver at September 30, 2017 approximates fair value as the rates are comparable to those at which we could currently borrow under similar terms, are variable and incorporate a measure of our credit risk. As such, the fair value of the Revolver was classified as a Level 2 measurement in accordance with ASC 820. Other Other long-term debt as of September 30, 2017 consists of a $0.4 million term note secured by real property with a maturity of February 2021 . The interest rate is 7.0% and is paid monthly. The estimated market value of other long-term debt approximates the carrying amount.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company evaluates its deferred tax assets quarterly to determine if valuation allowances are required. In assessing the realizability of deferred tax assets, the Company considers both positive and negative evidence in determining whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company had a valuation allowance of $0.1 million against its deferred tax assets related to certain state tax jurisdictions as of September 30, 2017 and December 31, 2016 . To the extent the Company generates future tax net operating losses, the Company may be required to increase the valuation allowance on deferred tax assets, which may unfavorably impact the effective tax rate. The Company has no material uncertain tax positions as of September 30, 2017 and December 31, 2016 . For the three and nine months ended September 30, 2017 , the Company’s effective tax rate was 34.1% and 33.3% , respectively, which varied from the federal statutory rate of 35% primarily due to excess tax windfall benefits from stock compensation and a permanent domestic manufacturing deduction under Internal Revenue Code Section 199 (the “Manufacturing Deduction”). For the three and nine months ended September 30, 2016 , the effective tax rate was 35.0% and 32.7% , respectively, which varied from the federal statutory rate of 35% primarily due to the excess tax windfall benefit from stock compensation and the Manufacturing Deduction.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time, various claims, legal proceedings and litigation are asserted or commenced against the Company principally arising from alleged product liability, warranty, casualty, construction defect, contract, tort, employment and other disputes. In determining loss contingencies, management considers the likelihood of loss as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss is recorded when it is considered probable that such a liability has been incurred and when the amount of loss can be reasonably estimated. It is not certain that the Company will prevail in these matters. However, the Company does not currently believe that the ultimate outcome of any pending matters will have a material adverse effect on its consolidated financial position, results of operations or cash flows. The Company recorded $3.0 million of expense within selling, general and administrative expenses in its unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2017 in relation to pending litigation. The amount accrued is based upon currently available information, however, the ultimate obligation may be higher.

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Compensation	Stock Based Compensation The following table highlights the expense related to stock based compensation for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Restricted stock units $ 1,157 $ 1,200 $ 4,139 $ 3,338 Restricted stock 113 400 339 1,376 Stock options 96 251 273 830 Stock based compensation $ 1,366 $ 1,851 $ 4,751 $ 5,544 During the nine months ended September 30, 2017 , in addition to grants of service-based restricted stock unit awards, the Company granted performance-based restricted stock units that vest on Ma rch 15, 2020 . The weighted average grant date fair value of the performance-based restricted stock units was $21.94 . Currently, the number of performance-based restricted stock units that are issued on the vesting date could range from zero to a maximum of 246,337 , based 50% upon the Company’s average return on invested capital over the three year period from January 1, 2017 through December 31, 2019 and 50% upon the Company’s cumulative adjusted earnings per share (“Adjusted EPS”) over the same three year period. During the nine months ended September 30, 2016 , in addition to grants of service-based restricted stock unit awards, the Company granted performance-based restricted stock units that vest on March 15, 2019 . The number of performance-based restricted stock units that are issued on the vesting date could range from zero to a maximum of 206,250 , based upon the Company’s cumulative Adjusted EBITDA over the three year period from January 1, 2016 through December 31, 2018 .

Segments

Segments	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Segments	Segments ASC 280, Segment Reporting, defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. Beginning January 1, 2017, the Company’s operating segments consist of the Mid-Atlantic, Southeast, Texas, Intermountain and Western divisions after the Company realigned certain of its markets, which resulted in the consolidation of the Company’s historical Mountain West division into the Intermountain division. Following the realignment, the CODM continues to review aggregate information to allocate resources and assess performance. Based on this, as well as the similar economic characteristics, nature of products, distribution methods and customers of the divisions both before and after the realignment, the Company has aggregated its operating segments into one reportable segment, “Geographic divisions.” In addition to our reportable segment, the Company’s consolidated results include “Other reconciling items.” Other reconciling items is comprised of our corporate activities and other income and expenses not allocated to the operating segments. The following tables present Net Sales, Adjusted EBITDA and certain other measures for the reportable segment and total Company operations for the three and nine months ended September 30, 2017 and 2016 . Adjusted EBITDA is used as a performance metric by the CODM in determining how to allocate resources and assess performance. Three Months Ended September 30, 2017 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 881,012 $ 209,545 $ 16,996 $ 70,158 Other reconciling items — — 629 (10,861 ) $ 881,012 $ 209,545 $ 17,625 Three Months Ended September 30, 2016 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 821,204 $ 202,966 $ 16,011 $ 69,381 Other reconciling items — — 1,265 (11,184 ) $ 821,204 $ 202,966 $ 17,276 Nine Months Ended September 30, 2017 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 2,525,087 $ 599,429 $ 50,167 $ 188,882 Other reconciling items — — 1,829 (36,445 ) $ 2,525,087 $ 599,429 $ 51,996 Nine Months Ended September 30, 2016 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 2,346,169 $ 561,238 $ 47,562 $ 190,077 Other reconciling items — — 3,535 (40,637 ) $ 2,346,169 $ 561,238 $ 51,097 Reconciliation to consolidated financial statements: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Income before income taxes $ 27,996 $ 14,218 $ 59,689 $ 30,395 Interest expense 6,377 7,668 18,960 24,020 Depreciation and amortization 17,625 17,276 51,996 51,097 Merger and integration costs 2,574 4,655 13,339 11,088 Non-cash stock compensation expense 1,366 1,851 4,751 5,544 Impairment of assets 409 — 435 11,883 Acquisition costs — — 317 — Loss on debt extinguishment — 12,529 — 12,529 Inventory step-up charges — — — 2,884 Other items (a) 2,950 — 2,950 — Adjusted EBITDA of other reconciling items 10,861 11,184 36,445 40,637 Adjusted EBITDA of geographic divisions reportable segment $ 70,158 $ 69,381 $ 188,882 $ 190,077 (a) Represents expense incurred during the three and nine months ended September 30, 2017 related to pending litigation.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic net income per share (“EPS”) is calculated by dividing net income attributable to common stockholders by the weighted average shares outstanding during the period. Diluted EPS is calculated by adjusting weighted average shares outstanding for the dilutive effect of potential common shares, determined using the treasury-stock method. For purposes of the diluted EPS calculation, stock options, restricted stock and restricted stock unit awards are considered to be potential common shares. Performance-based restricted stock units are not included in the calculation of diluted EPS until they are contingently issuable. The basic and diluted EPS calculations for the three and nine months ended September 30, 2017 and 2016 are presented below: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share amounts) 2017 2016 2017 2016 Income attributable to common stockholders $ 18,443 $ 9,236 $ 39,783 $ 20,462 Weighted average common shares outstanding, basic 66,958 66,435 66,860 65,873 Effect of dilutive securities: Restricted stock 61 233 68 250 Restricted stock units 248 194 212 109 Stock options 175 223 201 223 Weighted average common shares outstanding, diluted 67,442 67,085 67,341 66,455 Basic income per common share $ 0.28 $ 0.14 $ 0.60 $ 0.31 Diluted income per common share $ 0.27 $ 0.14 $ 0.59 $ 0.31 The following table provides the securities that could potentially dilute EPS in the future, but were not included in the computation of diluted EPS for the periods presented because to do so would have been anti-dilutive. The amounts included in this table exclude performance-based restricted stock units. As of September 30, 2017 , the number of currently outstanding performance-based restricted stock units that are issued upon vesting could range from zero to a maximum of 452,587 . Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Restricted stock units 13 — 13 — Stock options 1 490 1 490

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation	Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) that permit reduced disclosure for interim periods. The condensed consolidated balance sheet as of December 31, 2016 was derived from audited financial statements, but does not include all necessary disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). The unaudited condensed consolidated financial statements include all accounts of the Company and its subsidiaries and, in the opinion of management, include all recurring adjustments and normal accruals necessary for a fair statement of the Company’s financial position, results of operations and cash flows for the dates and periods presented. These unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (“ 2016 Annual Report on Form 10-K”). Results for interim periods are not necessarily indicative of the results to be expected during the remainder of the current year or for any future period. All material intercompany accounts and transactions have been eliminated in consolidation.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation.
Comprehensive income	Comprehensive income Comprehensive income is equal to the net income for all periods presented.
Recently issued accounting pronouncements	Recently adopted accounting pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 requires that inventory within the scope of the guidance be measured at the lower of cost and net realizable value. Prior to the issuance of the standard, inventory was measured at the lower of cost or market, where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin. Inventory measured using last-in, first-out (LIFO) and the retail inventory method are not impacted by the new guidance. Prospective application is required and early adoption is permitted. ASU 2015-11 became effective for the Company’s annual and interim periods beginning on January 1, 2017. The adoption of the guidance did not have a material impact on our financial statements. Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), and issued subsequent amendments to the initial guidance within Accounting Standards Update 2016-08, Revenue from Contracts with Customers, Principal versus Agent Considerations (“ASU 2016-08”) issued in March 2016, Accounting Standards Update 2016-10, Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing (“ASU 2016-10”) issued in April 2016, Accounting Standards Update 2016-12, Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”) issued in May 2016 and Accounting Standards Update 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”) issued in December 2016 (ASU 2014-09, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 collectively “Topic 606”). Topic 606 provides a comprehensive revenue recognition model requiring companies to recognize revenue for the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In July 2015, the FASB voted to defer the effective date of ASU 2014-09 by one year, and therefore, the standard is effective for the Company’s annual and interim periods beginning on January 1, 2018. The guidance permits the use of either a full retrospective or modified retrospective transition method. We expect to adopt the standard on January 1, 2018 using the modified retrospective transition method, which recognizes the cumulative effect of initially applying the standard in retained earnings on the date of adoption, with the option to utilize certain practical expedients as defined in Topic 606. We do not expect the adoption of the standard to have a material impact on the timing of revenue recognition nor the amount of revenue recognized from our building products contracts. Revenue for our building products contracts will continue to be recognized at a point in time, when control of the promised goods is transferred to our customers, with the exception of certain product offerings which are customized to customer specifications and meet the criteria to be recognized over time, which is consistent with the Company’s current accounting. We are continuing to evaluate the impact of the standard on our contracts with a service element but based on our current assessment, we expect that revenue for our construction services contracts will generally continue to be recognized over time as the Company satisfies the performance obligations in the contracts. We also continue to evaluate the disclosure requirements of the standard, which are expected to be significant and incremental to the current disclosures. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (“ASU 2016-02”). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability 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. ASU 2016-02 is effective for the Company’s annual and interim periods beginning on January 1, 2019. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are in the process of evaluating the impact of the standard on our financial statements. As a lessee, certain of our various leases under existing guidance are classified as operating leases that are not recorded on the balance sheet but are recorded in the statement of operations as expense is incurred. Upon adoption of the standard, we will be required to record substantially all leases on the balance sheet as a ROU asset and a lease liability. The timing of expense recognition and classification in the statement of operations could change based on the classification of leases as either operating or financing. In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 was issued to decrease the diversity in practice of how certain cash receipts and cash payments are presented and classified in the statement of cash flows by providing guidance on eight specific cash flow issues. ASU 2016-15 is effective for the Company’s annual and interim periods beginning on January 1, 2018, with early adoption permitted and retrospective application required. The adoption of the standard is not expected to have a material impact on our financial statements. In November 2016, the FASB issued Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 requires that the statement of cash flows include restricted cash in the beginning and end-of-period total amounts shown and that the statement of cash flows explain the changes in restricted cash during the period. ASU 2016-18 is effective for the Company's annual and interim periods beginning on January 1, 2018. Retrospective application is required and early adoption is permitted. The adoption of the standard is not expected to have a material impact on our financial statements. In January 2017, the FASB issued Accounting Standards Update 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”). ASU 2017-01 provides guidance in determining when a set of assets and activities meets the definition of a business. ASU 2017-01 is effective for the Company's annual and interim periods beginning on January 1, 2018. Early application is permitted for transactions meeting certain criteria and prospective application is required. The adoption of the standard is not expected to have a material impact on our financial statements. In January 2017, the FASB issued Accounting Standards Update 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires computation of the implied fair value of a reporting unit's goodwill. The amount of a goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for the Company's annual goodwill impairment test and any interim tests during the Company's annual and interim periods beginning on January 1, 2020. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. Prospective application is required. The adoption of the standard is not expected to have a material impact on our financial statements. In February 2017, the FASB issued Accounting Standards Update 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (“ASU 2017-05”). ASU 2017-05 clarifies the scope of Subtopic 610-20, which provides guidance for recognizing gains and losses from the sale or transfer of nonfinancial assets in contracts with noncustomers. ASU 2017-05 also provides guidance for partial sales of nonfinancial assets. ASU 2017-05 is effective for the Company’s annual and interim periods beginning on January 1, 2018 and we are required to adopt ASU 2017-05 at the same time that we adopt ASU 2014-09. The guidance permits the use of either a retrospective or cumulative effect transition method. The adoption of the standard is not expected to have a material impact on our financial statements. In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under ASC 718. ASU 2017-09 is effective for the Company’s annual and interim periods beginning on January 1, 2018, with early adoption permitted. ASU 2017-09 is to be applied prospectively to an award modified on or after the adoption date. The adoption of the standard is not expected to have a material impact on our financial statements.

Acquisitions (Policies)

Acquisitions (Policies)	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Acquisitions	Acquisitions For all acquisitions, the Company allocates the purchase price to assets acquired and liabilities assumed as of the date of acquisition based on the estimated fair values at the date of acquisition. The excess of the fair value of the purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill. Management makes significant estimates and assumptions when determining the fair value of assets acquired and liabilities assumed. These estimates include, but are not limited to, discount rates, projected future net sales, projected future expected cash flows and useful lives.

Income Taxes (Policies)

Income Taxes (Policies)	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income taxes	Income Taxes The Company evaluates its deferred tax assets quarterly to determine if valuation allowances are required. In assessing the realizability of deferred tax assets, the Company considers both positive and negative evidence in determining whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Commitments and Contingencies (

Commitments and Contingencies (Policies)	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and Contingencies From time to time, various claims, legal proceedings and litigation are asserted or commenced against the Company principally arising from alleged product liability, warranty, casualty, construction defect, contract, tort, employment and other disputes. In determining loss contingencies, management considers the likelihood of loss as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss is recorded when it is considered probable that such a liability has been incurred and when the amount of loss can be reasonably estimated.

Earnings Per Share (Policies)

Earnings Per Share (Policies)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Earnings per Share	Earnings Per Share Basic net income per share (“EPS”) is calculated by dividing net income attributable to common stockholders by the weighted average shares outstanding during the period. Diluted EPS is calculated by adjusting weighted average shares outstanding for the dilutive effect of potential common shares, determined using the treasury-stock method. For purposes of the diluted EPS calculation, stock options, restricted stock and restricted stock unit awards are considered to be potential common shares. Performance-based restricted stock units are not included in the calculation of diluted EPS until they are contingently issuable.

Accounts Receivable (Tables)

Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Schedule of accounts receivable	Accounts receivable consist of the following at September 30, 2017 and December 31, 2016 : (in thousands) September 30, December 31, Trade receivables $ 378,104 $ 323,725 Allowance for doubtful accounts (4,436 ) (4,162 ) Other allowances (7,679 ) (6,259 ) $ 365,989 $ 313,304

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of debt	Long-term debt as of September 30, 2017 and December 31, 2016 consists of the following: (in thousands) September 30, December 31, Senior secured notes, due 2024 $ 350,000 $ 350,000 Revolving credit agreement 51,832 — Other 360 2,963 402,192 352,963 Unamortized debt issuance costs related to senior secured notes (5,848 ) (6,474 ) 396,344 346,489 Less: Current portion of long-term debt 98 1,662 $ 396,246 $ 344,827

Stock Based Compensation (Table

Stock Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of expenses related to share-based payments	The following table highlights the expense related to stock based compensation for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Restricted stock units $ 1,157 $ 1,200 $ 4,139 $ 3,338 Restricted stock 113 400 339 1,376 Stock options 96 251 273 830 Stock based compensation $ 1,366 $ 1,851 $ 4,751 $ 5,544

Segments (Tables)

Segments (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Schedule of net sales, adjusted EBITDA and certain other measures by reportable segment	The following tables present Net Sales, Adjusted EBITDA and certain other measures for the reportable segment and total Company operations for the three and nine months ended September 30, 2017 and 2016 . Adjusted EBITDA is used as a performance metric by the CODM in determining how to allocate resources and assess performance. Three Months Ended September 30, 2017 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 881,012 $ 209,545 $ 16,996 $ 70,158 Other reconciling items — — 629 (10,861 ) $ 881,012 $ 209,545 $ 17,625 Three Months Ended September 30, 2016 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 821,204 $ 202,966 $ 16,011 $ 69,381 Other reconciling items — — 1,265 (11,184 ) $ 821,204 $ 202,966 $ 17,276 Nine Months Ended September 30, 2017 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 2,525,087 $ 599,429 $ 50,167 $ 188,882 Other reconciling items — — 1,829 (36,445 ) $ 2,525,087 $ 599,429 $ 51,996 Nine Months Ended September 30, 2016 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 2,346,169 $ 561,238 $ 47,562 $ 190,077 Other reconciling items — — 3,535 (40,637 ) $ 2,346,169 $ 561,238 $ 51,097
Reconciliation to consolidated financial statements	Reconciliation to consolidated financial statements: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Income before income taxes $ 27,996 $ 14,218 $ 59,689 $ 30,395 Interest expense 6,377 7,668 18,960 24,020 Depreciation and amortization 17,625 17,276 51,996 51,097 Merger and integration costs 2,574 4,655 13,339 11,088 Non-cash stock compensation expense 1,366 1,851 4,751 5,544 Impairment of assets 409 — 435 11,883 Acquisition costs — — 317 — Loss on debt extinguishment — 12,529 — 12,529 Inventory step-up charges — — — 2,884 Other items (a) 2,950 — 2,950 — Adjusted EBITDA of other reconciling items 10,861 11,184 36,445 40,637 Adjusted EBITDA of geographic divisions reportable segment $ 70,158 $ 69,381 $ 188,882 $ 190,077 (a) Represents expense incurred during the three and nine months ended September 30, 2017 related to pending litigation.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of basic and diluted EPS calculations	The basic and diluted EPS calculations for the three and nine months ended September 30, 2017 and 2016 are presented below: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share amounts) 2017 2016 2017 2016 Income attributable to common stockholders $ 18,443 $ 9,236 $ 39,783 $ 20,462 Weighted average common shares outstanding, basic 66,958 66,435 66,860 65,873 Effect of dilutive securities: Restricted stock 61 233 68 250 Restricted stock units 248 194 212 109 Stock options 175 223 201 223 Weighted average common shares outstanding, diluted 67,442 67,085 67,341 66,455 Basic income per common share $ 0.28 $ 0.14 $ 0.60 $ 0.31 Diluted income per common share $ 0.27 $ 0.14 $ 0.59 $ 0.31
Schedule of anti-dilutive securities excluded from computation of earnings per share	The following table provides the securities that could potentially dilute EPS in the future, but were not included in the computation of diluted EPS for the periods presented because to do so would have been anti-dilutive. The amounts included in this table exclude performance-based restricted stock units. As of September 30, 2017 , the number of currently outstanding performance-based restricted stock units that are issued upon vesting could range from zero to a maximum of 452,587 . Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Restricted stock units 13 — 13 — Stock options 1 490 1 490

Acquisitions (Narrative) (Detai

Acquisitions (Narrative) (Details) - USD ($) $ in Thousands	Apr. 03, 2017	Mar. 27, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill			$ 262,042		$ 262,042		$ 254,832
Acquisition costs			0	$ 0	317	$ 0
Code Plus [Member]
Business Acquisition [Line Items]
Date of acquisition		Mar. 27, 2017
Purchase price		$ 7,100
Initial holdback		400
Earnout provision		800
Goodwill		3,400
Goodwill recognized expected to be deductible for tax		3,400
Pre-acquisition sales							14,200
TexPly [Member]
Business Acquisition [Line Items]
Date of acquisition	Apr. 3, 2017
Purchase price	$ 32,000
Escrow Deposit Related to Property Acquisition	2,500
Goodwill	3,800
Accounts receivable	5,200
Inventories	4,000
Property and equipment	5,400
Goodwill recognized expected to be deductible for tax	3,800
Pre-acquisition sales							$ 55,200
Code Plus and TexPly [Member]
Business Acquisition [Line Items]
Net sales of acquiree since acquisition date			18,500		38,000
Estimated pre-tax earnings of acquiree since acquisition date			1,500		2,600
Customer relationships [Member] | Code Plus [Member]
Business Acquisition [Line Items]
Intangible assets		$ 2,300
Useful life		12 years
Customer relationships [Member] | TexPly [Member]
Business Acquisition [Line Items]
Intangible assets	$ 13,400
Useful life	13 years
Non-compete agreements [Member] | Code Plus [Member]
Business Acquisition [Line Items]
Intangible assets		$ 500
Useful life		5 years
Selling, general and administrative expenses [Member] | Code Plus [Member]
Business Acquisition [Line Items]
Acquisition costs			0		100
Selling, general and administrative expenses [Member] | TexPly [Member]
Business Acquisition [Line Items]
Acquisition costs			$ 0		$ 200

Accounts Receivable (Accounts R

Accounts Receivable (Accounts Receivable) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Receivables [Abstract]
Trade receivables	$ 378,104	$ 323,725
Allowance for doubtful accounts	(4,436)	(4,162)
Other allowances	(7,679)	(6,259)
Accounts receivable, net	$ 365,989	$ 313,304

Impairment of BMHC ERP System29

Impairment of BMHC ERP System Impairment of BMCH ERP System (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Property, Plant and Equipment [Line Items]
Impairment of assets	$ 409	$ 0	$ 435	$ 11,883
ERP System [Member]
Property, Plant and Equipment [Line Items]
Impairment of assets				$ 11,883
Contractual payments due subsequent to the cease use date			2,100
Acceleration of expense recognition of unamortized prepaid costs			700
Merger And Integration Costs [Member] | ERP System [Member]
Property, Plant and Equipment [Line Items]
Integration related costs			$ 2,800

Debt (Debt Table) (Details)

Debt (Debt Table) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 15, 2016
Debt Instrument [Line Items]
Outstanding borrowings	$ 402,192	$ 352,963
Unamortized debt issuance costs related to senior secured notes	(5,848)	(6,474)
Total debt	396,344	346,489
Less: Current portion of long-term debt	98	1,662
Long-term debt	396,246	344,827
Senior secured notes, due 2024 [Member]
Debt Instrument [Line Items]
Outstanding borrowings	350,000	350,000	$ 350,000
Revolving credit agreement [Member]
Debt Instrument [Line Items]
Outstanding borrowings	51,832	0
Other debt [Member]
Debt Instrument [Line Items]
Outstanding borrowings	$ 360	$ 2,963

Debt Debt (Narrative) (Details)

Debt Debt (Narrative) (Details) - USD ($) $ in Thousands	Sep. 15, 2016	Dec. 01, 2015	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Outstanding borrowings			$ 402,192		$ 402,192		$ 352,963
Loss on debt extinguishment			0	$ 12,529	0	$ 12,529
Payments of debt extinguishment costs					0	8,438
Payments of debt issuance costs					38	$ 5,824
Senior secured notes, due 2024 [Member]
Debt Instrument [Line Items]
Debt issuance date	Sep. 15, 2016
Outstanding borrowings	$ 350,000		350,000		350,000		350,000
Maturity date, year	2,024
Interest rate	5.50%
Interest payment dates	payable semiannually on April 1 and October 1
Fair value in excess of carrying value			16,600		16,600
Senior secured notes, due 2018 [Member]
Debt Instrument [Line Items]
Debt issuance date						Sep. 30, 2013
Maturity date						Sep. 30, 2018
Interest rate				9.00%		9.00%
Extinguished senior notes						$ 250,000
Loss on debt extinguishment						12,529
Payments of debt extinguishment costs						8,438
Write off of unamortized debt issuance costs and original issue discount						$ 4,100
Revolving credit agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 375,000
Outstanding borrowings			51,832		51,832		0
Net availability			256,400		256,400
Letters of credit outstanding			66,800		$ 66,800
Date entered into agreement		Dec. 1, 2015
Other debt [Member]
Debt Instrument [Line Items]
Maturity date					Feb. 28, 2021
Outstanding borrowings			$ 360		$ 360		$ 2,963
Interest rate			7.00%		7.00%
LIBOR Rate Option [Member] | Revolving credit agreement [Member]
Debt Instrument [Line Items]
Outstanding borrowings			$ 40,000		$ 40,000
Interest rate			2.74%		2.74%
Base Rate Option [Member] | Revolving credit agreement [Member]
Debt Instrument [Line Items]
Outstanding borrowings			$ 11,800		$ 11,800
Interest rate			4.75%		4.75%
Guarantor Subsidiaries [Member] | Senior secured notes, due 2024 [Member]
Debt Instrument [Line Items]
Ownership percent	100.00%
BMC East, LLC [Member] | Senior secured notes, due 2024 [Member]
Debt Instrument [Line Items]
Ownership percent	100.00%

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Income Tax Contingency [Line Items]
Valuation allowance	$ 100,000		$ 100,000		$ 100,000
Uncertain tax positions	$ 0		$ 0		$ 0
Income tax expense at statutory rate	35.00%	35.00%	35.00%	35.00%
Effective income tax rate	34.10%	35.00%	33.30%	32.70%

Commitments and Contingencies33

Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Pending Litigation [Member] | Selling, general and administrative expenses [Member]
Loss Contingencies [Line Items]
Pending litigation expense	$ 3	$ 3

Stock Based Compensation (Stock

Stock Based Compensation (Stock based compensation expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation	$ 1,366	$ 1,851	$ 4,751	$ 5,544
Restricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation	113	400	339	1,376
Restricted stock units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation	1,157	1,200	4,139	3,338
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation	$ 96	$ 251	$ 273	$ 830

Stock Based Compensation (Narra

Stock Based Compensation (Narrative) (Details) - Performance-based restricted stock units [Member] - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based shares available for vesting	0
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based shares available for vesting	452,587
2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting date	Mar. 15, 2020
Grant date fair value (in dollars per share)	$ 21.94
Award vesting period (in years)	3 years
Percent of performance measurement based on ROIC	50.00%
Percent of performance measurement based on Adjusted EPS	50.00%
Performance period (start date)	Jan. 1, 2017
Performance period (end date)	Dec. 31, 2019
2017 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted	0
2017 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted	246,337
2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting date		Mar. 15, 2019
Award vesting period (in years)		3 years
Performance period (start date)		Jan. 1, 2016
Performance period (end date)		Dec. 31, 2018
2016 [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted		0
2016 [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted		206,250

Segments (Schedule of net sales

Segments (Schedule of net sales, adjusted EBITDA and certain other measures by reportable segment) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Net sales	$ 881,012	$ 821,204	$ 2,525,087	$ 2,346,169
Gross profit	209,545	202,966	599,429	561,238
Depreciation & amortization	17,625	17,276	51,996	51,097
Operating segments [Member] | Geographic divisions [Member]
Segment Reporting Information [Line Items]
Net sales	881,012	821,204	2,525,087	2,346,169
Gross profit	209,545	202,966	599,429	561,238
Depreciation & amortization	16,996	16,011	50,167	47,562
Adjusted EBITDA	70,158	69,381	188,882	190,077
Other reconciling items [Member] | Other reconciling items [Member]
Segment Reporting Information [Line Items]
Net sales	0	0	0	0
Gross profit	0	0	0	0
Depreciation & amortization	629	1,265	1,829	3,535
Adjusted EBITDA	$ (10,861)	$ (11,184)	$ (36,445)	$ (40,637)

Segments (Reconciliation of adj

Segments (Reconciliation of adjusted EBITDA to consolidated financial statements) (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016	Sep. 30, 2017		Sep. 30, 2016
Segment Reporting, Revenue Reconciling Item [Line Items]
Income before income taxes	$ 27,996		$ 14,218	$ 59,689		$ 30,395
Interest expense	6,377		7,668	18,960		24,020
Depreciation and amortization	17,625		17,276	51,996		51,097
Merger and integration costs	2,574		4,655	13,339		11,088
Non-cash stock compensation expense	1,366		1,851	4,751		5,544
Impairment of assets	409		0	435		11,883
Acquisition costs	0		0	317		0
Loss on debt extinguishment	0		12,529	0		12,529
Inventory step-up charges	0		0	0		2,884
Other items	2,950	[1]	0	2,950	[1]	0
Other reconciling items [Member] | Other reconciling items [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Depreciation and amortization	629		1,265	1,829		3,535
Adjusted EBITDA	10,861		11,184	36,445		40,637
Operating segments [Member] | Geographic divisions [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Depreciation and amortization	16,996		16,011	50,167		47,562
Adjusted EBITDA	$ (70,158)		$ (69,381)	$ (188,882)		$ (190,077)
[1]	Represents expense incurred during the three and nine months ended September 30, 2017 related to pending litigation.

Segments (Narrative) (Details)

Segments (Narrative) (Details)	9 Months Ended
	Sep. 30, 2017segment
Segment Reporting [Abstract]
Number of reportable segments	1

Earnings Per Share (Basic and D

Earnings Per Share (Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Income attributable to common stockholders	$ 18,443	$ 9,236	$ 39,783	$ 20,462
Weighted average common shares outstanding, basic (in shares)	66,958	66,435	66,860	65,873
Weighted average common shares outstanding, diluted (in shares)	67,442	67,085	67,341	66,455
Basic income per common share (in dollars per share)	$ 0.28	$ 0.14	$ 0.60	$ 0.31
Diluted income per common share (in dollars per share)	$ 0.27	$ 0.14	$ 0.59	$ 0.31
Restricted stock [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Stock based payment arrangements (in shares)	61	233	68	250
Restricted stock units [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Stock based payment arrangements (in shares)	248	194	212	109
Stock options [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Stock based payment arrangements (in shares)	175	223	201	223

Earnings Per Share (Schedule of

Earnings Per Share (Schedule of anti-dilutive securities) (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restricted stock units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	13	0	13	0
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	1	490	1	490

Earnings Per Share Earnings Per

Earnings Per Share Earnings Per Share (Narrative) (Details) - Performance-based restricted stock units [Member]	9 Months Ended
	Sep. 30, 2017shares
Minimum [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance-based shares available for vesting	0
Maximum [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Performance-based shares available for vesting	452,587