Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 27, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | BMC Stock Holdings, Inc. | ||
Entity Central Index Key | 1,574,815 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,390 | ||
Entity Common Stock, Shares Outstanding | 66,581,087 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 150,723 | $ 11,750 |
Accounts receivable, net of allowances | 298,440 | 322,892 |
Inventories, net | 309,279 | 309,060 |
Contract assets | 32,348 | 0 |
Costs in excess of billings on uncompleted contracts | 0 | 28,738 |
Income taxes receivable | 0 | 3,748 |
Prepaid expenses and other current assets | 56,249 | 57,949 |
Total current assets | 847,039 | 734,137 |
Property and equipment, net of accumulated depreciation | 294,327 | 295,820 |
Customer relationship intangible assets, net of accumulated amortization | 158,563 | 166,306 |
Other intangible assets, net of accumulated amortization | 325 | 1,306 |
Goodwill | 262,997 | 261,792 |
Other long-term assets | 12,860 | 13,989 |
Total assets | 1,576,111 | 1,473,350 |
Current liabilities | ||
Accounts payable | 123,495 | 174,583 |
Accrued expenses and other liabilities | 110,276 | 96,262 |
Contract liabilities | 34,888 | 0 |
Billings in excess of costs on uncompleted contracts | 0 | 18,428 |
Income taxes payable | 902 | 0 |
Interest payable | 4,759 | 4,769 |
Current portion of long-term debt and capital lease obligations | 6,661 | 7,739 |
Current portion of insurance reserves | 15,198 | 13,496 |
Total current liabilities | 296,179 | 315,277 |
Insurance reserves | 41,270 | 38,470 |
Long-term debt | 345,197 | 349,059 |
Long-term portion of capital lease obligations | 8,845 | 14,838 |
Deferred income taxes | 3,034 | 1,768 |
Other long-term liabilities | 6,927 | 7,039 |
Total liabilities | 701,452 | 726,451 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value, 50.0 million shares authorized, no shares issued and outstanding at December 31, 2018 and December 31, 2017 | 0 | 0 |
Common stock, $0.01 par value, 300.0 million shares authorized, 67.7 million and 67.3 million shares issued, and 67.2 million and 67.1 million outstanding at December 31, 2018 and December 31, 2017, respectively | 677 | 673 |
Additional paid-in capital | 672,095 | 659,440 |
Retained earnings | 210,345 | 90,607 |
Treasury stock, at cost, 0.5 million and 0.2 million shares at December 31, 2018 and December 31, 2017, respectively | (8,458) | (3,821) |
Total stockholders’ equity | 874,659 | 746,899 |
Total liabilities and stockholders’ equity | $ 1,576,111 | $ 1,473,350 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
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) | 67.7 | 67.3 |
Common stock, shares outstanding (in shares) | 67.2 | 67.1 |
Treasury stock, shares | 0.5 | 0.2 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sales | $ 3,682,448 | $ 3,365,968 | $ 3,093,743 |
Cost of sales | 2,773,232 | 2,570,453 | 2,351,778 |
Gross profit | 909,216 | 795,515 | 741,965 |
Selling, general and administrative expenses | 680,273 | 619,546 | 571,799 |
Depreciation expense | 39,627 | 43,022 | 38,441 |
Amortization expense | 15,015 | 16,003 | 20,721 |
Merger and integration costs | 3,998 | 15,336 | 15,340 |
Impairment of assets | 0 | 435 | 11,928 |
Total operating expenses | 738,913 | 694,342 | 658,229 |
Income from operations | 170,303 | 101,173 | 83,736 |
Other income (expense) | |||
Interest expense | (24,035) | (25,036) | (30,131) |
Loss on debt extinguishment | 0 | 0 | (12,529) |
Other income, net | 10,646 | 5,690 | 4,070 |
Income before income taxes | 156,914 | 81,827 | 45,146 |
Income tax expense | 37,176 | 24,402 | 14,266 |
Net income | $ 119,738 | $ 57,425 | $ 30,880 |
Weighted average common shares outstanding | |||
Basic (in shares) | 67,273 | 66,900 | 66,055 |
Diluted (in shares) | 67,748 | 67,404 | 66,609 |
Net income per share | |||
Basic (in dollars per share) | $ 1.78 | $ 0.86 | $ 0.47 |
Diluted (in dollars per share) | $ 1.77 | $ 0.85 | $ 0.46 |
Building products [Member] | |||
Sales | $ 2,856,683 | $ 2,561,454 | $ 2,336,041 |
Cost of sales | 2,095,093 | 1,906,583 | 1,725,843 |
Construction services [Member] | |||
Sales | 825,765 | 804,514 | 757,702 |
Cost of sales | $ 678,139 | $ 663,870 | $ 625,935 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY Statement - USD ($) shares in Thousands, $ in Thousands | Total | Common stock [Member] | Treasury stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] |
Stockholders' equity, beginning of period at Dec. 31, 2015 | $ 628,932 | $ 654 | $ (426) | $ 626,402 | $ 2,302 |
Stockholders' Equity [Abstract] | |||||
Issuance of common stock, net of offering costs | 13,776 | 8 | 13,768 | ||
Exercise of stock options | 1,301 | 2 | 1,299 | ||
Shares vested for long-term incentive plan | 0 | 4 | (4) | ||
Repurchases of common stock related to equity award activity | (2,023) | (2,023) | |||
Share withholdings made in satisfaction of exercise price | 0 | (80) | 80 | ||
Stock compensation expense | 7,252 | 7,252 | |||
Other | 483 | 483 | |||
Net income | 30,880 | 30,880 | |||
Stockholders' equity, end of period at Dec. 31, 2016 | 680,601 | $ 668 | $ (2,529) | 649,280 | 33,182 |
Common stock outstanding, beginning of period (in shares) at Dec. 31, 2015 | 65,360 | ||||
Treasury shares, beginning of period (in shares) at Dec. 31, 2015 | 25 | ||||
Stockholders Equity, Common Shares [Abstract] | |||||
Issuance of common stock (in shares) | 855 | ||||
Exercise of stock options (in shares) | 175 | ||||
Shares vested for long-term incentive plan | 424 | ||||
Repurchases of common stock related to equity award activity (in shares) | 119 | ||||
Share withholdings made in satisfaction of exercise price (shares) | 4 | ||||
Common stock outstanding, end of period (in shares) at Dec. 31, 2016 | 66,814 | ||||
Treasury shares, end of period (in shares) at Dec. 31, 2016 | 148 | ||||
Stockholders' Equity [Abstract] | |||||
Exercise of stock options | 3,396 | $ 3 | 3,393 | ||
Shares vested for long-term incentive plan | 0 | 2 | (2) | ||
Repurchases of common stock related to equity award activity | (1,292) | $ (1,292) | |||
Stock compensation expense | 6,769 | 6,769 | |||
Net income | 57,425 | 57,425 | |||
Stockholders' equity, end of period at Dec. 31, 2017 | $ 746,899 | $ 673 | $ (3,821) | 659,440 | 90,607 |
Stockholders Equity, Common Shares [Abstract] | |||||
Exercise of stock options (in shares) | 260 | ||||
Shares vested for long-term incentive plan | 212 | ||||
Repurchases of common stock related to equity award activity (in shares) | 59 | ||||
Common stock outstanding, end of period (in shares) at Dec. 31, 2017 | 67,100 | 67,286 | |||
Treasury shares, end of period (in shares) at Dec. 31, 2017 | 200 | 207 | |||
Stockholders' Equity [Abstract] | |||||
Exercise of stock options | $ 1,327 | $ 1 | 1,326 | ||
Shares vested for long-term incentive plan | 0 | 3 | (3) | ||
Repurchases of common stock under share repurchase program | (2,891) | $ (2,891) | |||
Repurchases of common stock related to equity award activity | (1,729) | (1,729) | |||
Share withholdings made in satisfaction of exercise price | 0 | (17) | 17 | ||
Stock compensation expense | 11,315 | 11,315 | |||
Net income | 119,738 | 119,738 | |||
Stockholders' equity, end of period at Dec. 31, 2018 | $ 874,659 | $ 677 | $ (8,458) | $ 672,095 | $ 210,345 |
Stockholders Equity, Common Shares [Abstract] | |||||
Exercise of stock options (in shares) | 96 | ||||
Shares vested for long-term incentive plan | 326 | ||||
Repurchases of common stock under share repurchase program (in shares) | 182 | ||||
Repurchases of common stock related to equity award activity (in shares) | 88 | ||||
Share withholdings made in satisfaction of exercise price (shares) | 1 | ||||
Common stock outstanding, end of period (in shares) at Dec. 31, 2018 | 67,200 | 67,708 | |||
Treasury shares, end of period (in shares) at Dec. 31, 2018 | 500 | 478 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net income | $ 119,738 | $ 57,425 | $ 30,880 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 50,373 | 53,214 | 47,959 |
Amortization of intangible assets | 15,015 | 16,003 | 20,721 |
Amortization of debt issuance costs | 1,684 | 1,684 | 3,114 |
Deferred income taxes | 1,266 | 2,318 | (3,571) |
Non-cash stock compensation expense | 11,315 | 6,769 | 7,252 |
Gain on sale of property, equipment and real estate | (3,321) | (1,683) | (1,396) |
Gain on insurance proceeds | 0 | (1,991) | (1,003) |
Impairment of assets | 0 | 435 | 11,928 |
Loss on debt extinguishment | 0 | 0 | 12,529 |
Amortization of inventory step-up charges | 0 | 0 | 2,884 |
Other non-cash adjustments | 613 | 552 | 98 |
Change in assets and liabilities, net of effects of acquisitions | |||
Accounts receivable, net of allowances | 16,078 | (3,252) | (10,128) |
Inventories, net | 3,257 | (32,297) | (31,200) |
Contract assets | 5,565 | 0 | 0 |
Costs in excess of billings on uncompleted contracts | 0 | (2,364) | (3,845) |
Income taxes payable/receivable | 4,650 | (1,311) | 9,627 |
Prepaid expenses and other current assets | 2,588 | (13,191) | (12,208) |
Other long-term assets | (69) | 3,458 | (126) |
Accounts payable | (51,348) | 3,477 | 28,592 |
Accrued expenses and other liabilities | 19,066 | 5,417 | (5,859) |
Contract liabilities | 8,609 | 0 | 0 |
Billings in excess of costs on uncompleted contracts | 0 | 2,737 | (197) |
Insurance reserves | 4,502 | (3,239) | (16) |
Other long-term liabilities | 444 | (227) | 853 |
Net cash provided by operating activities | 210,025 | 93,934 | 106,888 |
Cash flows from investing activities | |||
Purchases of property, equipment and real estate | (55,174) | (63,278) | (38,067) |
Purchases of businesses, net of cash acquired | (20,970) | (38,438) | 0 |
Proceeds from sale of property, equipment and real estate | 11,432 | 13,445 | 3,187 |
Proceeds from sale of business | 7,773 | 0 | 0 |
Insurance proceeds | 1,991 | 0 | 1,151 |
Net cash used in investing activities | (54,948) | (88,271) | (33,729) |
Cash flows from financing activities | |||
Proceeds from revolving line of credit | 854,946 | 995,306 | 1,544,064 |
Repayments of proceeds from revolving line of credit | (859,408) | (990,844) | (1,696,324) |
Payments on capital lease obligations | (7,759) | (9,926) | (8,800) |
Principal payments on other notes | (336) | (2,627) | (3,303) |
Secured borrowings | 431 | 2,880 | 1,427 |
Proceeds from exercise of stock options | 1,327 | 3,396 | 1,301 |
Repurchases of common stock under share repurchase program | (2,891) | 0 | 0 |
Repurchases of common stock related to equity award activity | (2,044) | (977) | (2,023) |
Holdback payments | (370) | 0 | 0 |
Payments of debt issuance costs | 0 | (38) | (7,011) |
Proceeds from issuance of Senior Notes | 0 | 0 | 350,000 |
Redemption of Extinguished Senior Notes | 0 | 0 | (250,000) |
Proceeds from issuance of common stock, net of offering costs | 0 | 0 | 13,776 |
Payments of debt extinguishment costs | 0 | 0 | (8,438) |
Net cash used in financing activities | (16,104) | (2,830) | (65,331) |
Net increase in cash and cash equivalents | 138,973 | 2,833 | 7,828 |
Cash and cash equivalents | |||
Beginning of period | 11,750 | 8,917 | 1,089 |
End of period | 150,723 | 11,750 | 8,917 |
Supplemental disclosure of cash flow information | |||
Interest paid | 22,361 | 24,210 | 28,081 |
Cash paid for income taxes, net | 31,260 | 22,858 | 8,210 |
Non-cash investing and financing transactions | |||
Acquisition-related holdback payments due at a future date | 1,403 | 375 | 0 |
Accrued purchases of property and equipment | 1,963 | 811 | 505 |
Assets acquired under capital lease obligations | $ 821 | $ 2,481 | $ 15,089 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization These financial statements represent the financial statements of BMC Stock Holdings, Inc., and its subsidiaries. All references to “BMC” or the “Company” in this Annual Report on Form 10-K mean BMC Stock Holdings, Inc. and its subsidiaries. The Company distributes lumber and building materials to new construction and repair and remodeling contractors. Additionally, the Company provides solution-based services to its customers, including component design, product specification and installation services. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation The accompanying consolidated financial statements have been prepared by management in conformity with U.S generally accepted accounting principles (“U.S. GAAP”). Principles of consolidation The consolidated financial statements include all accounts of BMC and its wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company evaluates these estimates and judgments on an ongoing basis and bases its estimates on historical experience, current conditions and various other assumptions that are believed to be reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. The significant estimates which could change by a material amount in the near term include revenue recognition for construction services, accounts receivable reserves, estimated losses on uncompleted contracts and changes in contract estimates, inventory reserves, supplier rebates, goodwill impairment, impairment of property and equipment, insurance reserves, warranties and share-based compensation. Actual results may differ materially from these estimates under different assumptions or conditions. Business and credit concentrations The Company maintains cash at financial institutions in excess of federally insured limits. Accounts receivable potentially expose the Company to concentrations of credit risk. Mitigating this credit risk is collateral underlying certain accounts receivable (perfected liens or lien rights) as well as the Company’s analysis of a customer’s credit history prior to extending credit. Concentrations of credit risk with respect to accounts receivable are limited due to the Company’s large number of customers and their dispersion across various regions of the United States. At December 31, 2018 and 2017 , no customer represented more than 10% of accounts receivable. For the years ended December 31, 2018 , 2017 and 2016 , no customer accounted for more than 10% of revenue. The Company’s future results could be adversely affected by a number of factors including competitive pressure on sales and pricing, weather conditions, consumer spending and debt levels, interest rates, existing residential home sales and new home construction, lumber prices and product mix. Cash and cash equivalents Cash equivalents are highly liquid investments that are readily convertible to known amounts of cash and have a maturity of three months or less from the time of purchase. As of December 31, 2018 and 2017 , the Company had cash equivalents of $146.1 million and $0 , respectively. Cash equivalents are valued at amortized cost, which approximates fair value due to the short-term maturity of these instruments, and was classified as a Level 1 or Level 2 measurement in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures (“ASC 820”). Book overdrafts occur when purchases on corporate purchasing cards and checks written exceed available bank balances at a specific bank, despite there being cash at the Company’s other financial institutions. For accounting purposes, the Company reclassifies these book overdrafts to accounts payable on the consolidated balance sheets. Book overdrafts included in accounts payable were $0.1 million at December 31, 2018 and 2017 . Fair value of financial instruments ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 Inputs are unobservable inputs which reflect the reporting entity ’ s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument is categorized based upon the lowest level of input that is significant to the fair value calculation. Accounts receivable Accounts receivable result from the extending of credit to trade customers for the purchase of goods and services. The terms generally provide for payment within 30 days of being invoiced. On occasion, when necessary to compete in certain circumstances, the Company will sell product under extended payment terms. Accounts receivable are stated at estimated net realizable value. The allowance for doubtful accounts is based on an assessment of individual past due accounts, historical write-off experience, accounts receivable aging, customer disputes and the business environment. Account balances are charged off when the potential for recovery is considered remote. The Company grants trade discounts on a percentage basis. The Company records an allowance against accounts receivable for the amount of discounts it estimates will be taken by customers. The discounts are recorded as a reduction to revenue when products are sold. Consideration received from suppliers The Company enters into agreements with many of its suppliers providing for inventory purchase rebates (“supplier rebates”) upon achievement of specified volume purchasing levels. Supplier rebates are accrued as part of cost of goods sold based on progress towards earning the supplier rebates, taking into consideration cumulative purchases of inventory to date and projected purchases through the end of the year. The Company estimates the rebates applicable to inventory on-hand at each period end based on the estimated percentage of supplier rebates to be earned. The Company also receives consideration from suppliers to promote their products (“marketing and advertising allowances”), which are accrued as part of cost of goods sold or selling, general and administrative expenses, depending on the nature of the allowance. Total rebates and marketing and advertising allowances receivable at December 31, 2018 and 2017 were $18.0 million and $23.3 million , respectively, included in prepaid expenses and other current assets. Revenue recognition A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in Accounting Standards Update 2014-09, Revenue from Contracts with Customers, as amended (“Topic 606”). The Company’s building products contracts typically contain a promise to supply multiple distinct products and thus, they generally contain multiple performance obligations under Topic 606. Depending on the nature of the promises within the Company’s construction services contracts and whether they are distinct under Topic 606, there may be a single performance obligation or multiple performance obligations. For contracts with multiple performance obligations, the contract’s transaction price is allocated to each distinct performance obligation based on the standalone selling price of each distinct good or service, which is generally determined based on the prices charged to customers. The Company recognizes revenue for its building products contracts when control of the promised goods (the performance obligations) is transferred to the Company’s customers. This generally occurs at a point in time when the products are delivered and the customer obtains physical possession, legal title and the risks and rewards of ownership. However, for certain product offerings, products are customized to customer specifications and the customer benefits from the Company’s performance over time as deliveries are made. As such, the Company has determined that an output method based on units delivered best depicts the transfer of control to the customer. The Company generally recognizes revenue for its construction services contracts over time using cost based input methods. Periodic estimates of progress towards completion are made based on either a comparison of labor costs incurred to date with total estimated contract labor costs or total costs incurred to date with total estimated contract costs. Incurred costs represent work performed, which correspond and best depict transfer of control to the customer. Contract revenues and contract costs to be recognized are dependent on the accuracy of estimates, including quantities of materials, labor productivity and other cost estimates. Historically, the Company has made reasonable estimates of the extent of progress towards completion and contract completion costs. Due to uncertainties inherent in the estimation process, it is possible that actual completion costs may vary from estimates. Revenue recognized for performance obligations satisfied over time for the year ended December 31, 2018 represented approximately 26% of total revenues. Estimated losses on uncompleted contracts and changes in contract estimates reflect the Company’s best estimate of probable losses of unbilled receivables, and are recognized in the period such revisions are known and can be reasonably estimated. These estimates are recognized in cost of sales. Estimated losses on uncompleted contracts and changes in contract estimates are established by assessing estimated costs to complete, change orders and claims for uncompleted contracts. Assumptions for estimated costs to complete include material prices, labor costs, labor productivity and contract claims. Such estimates are inherently uncertain and it is possible that actual completion costs may vary from these estimates. All sales recognized are net of allowances for discounts and estimated returns, based on historical experience. Taxes assessed by governmental authorities that are directly imposed on the Company’s revenue-producing transactions are excluded from sales. The Company accounts for shipping and handling costs associated with its contracts as a fulfillment cost and expenses these as incurred within selling, general and administrative expenses. Contract balances The timing of revenue recognition, invoicing and cash collection affects receivables, contract assets and contract liabilities on the Company’s consolidated balance sheets. For building products contracts that contain performance obligations satisfied at a point in time, the Company recognizes revenue upon satisfaction of the performance obligation and then bills the customer, resulting in a receivable. For building products contracts that contain performance obligations satisfied over time, the Company recognizes revenue as the performance obligation is satisfied, but prior to billing, resulting in an unbilled receivable, as the Company has an unconditional right to payment. For the Company’s construction services contracts, amounts are generally billed as work progresses in accordance with agreed-upon contractual terms. Revenue is also recognized over time as the performance obligations are satisfied, which can result in contract assets and liabilities, on a contract-by-contract basis, due to timing differences between billing and revenue recognition. Contract assets include unbilled amounts when the revenue recognized exceeds the amount billed to the customer. Conversely, contract liabilities include amounts that have been billed to the customer in excess of the revenue recognized. At times, the Company will have a right to payment from previous performance that is conditional on something other than passage of time, such as retainage, which creates a contract asset. Conversely, the Company may receive advances from customers prior to the Company’s performance, which creates a contract liability. Contract assets are reclassified to a receivable when the right to consideration becomes unconditional. The Company’s terms generally provide for payment within 30 days of being invoiced. On occasion, when necessary to compete in certain circumstances, the Company will offer extended payment terms, which do not exceed one year. Shipping and handling costs The Company includes shipping and handling costs in selling, general and administrative expenses and depreciation expense on the consolidated statements of operations. Shipping and handling costs included in selling, general and administrative expenses were $189.6 million , $172.2 million and $152.7 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Shipping and handling costs included in depreciation expense were $22.9 million , $24.8 million and $20.9 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Property and equipment Property and equipment are stated at cost. Expenditures for renewals and betterments, which extend the useful lives of assets, are capitalized while maintenance and repairs are charged to expense as incurred. Property and equipment obtained through acquisition are stated at estimated fair market value as of the acquisition date, and are depreciated over their estimated remaining useful lives, which may differ from the Company’s stated policies for certain assets. Gains and losses related to the sale of property and equipment are recorded as selling, general and administrative expenses. Property and equipment are depreciated using the straight-line method and are generally depreciated over the following estimated service lives: Buildings and improvements 3–30 years Leasehold improvements Lesser of life of the asset or remaining lease term, and not to exceed 15 years Furniture, fixtures and equipment 2–10 years Vehicles 4–10 years Property and equipment that is expected to be sold within the next twelve months, is actively marketed in its current condition for a price that is reasonable in comparison to its estimated fair value and meets other relevant held-for-sale criteria are classified as assets held for sale. Assets held for sale are measured at the lower of carrying amount or fair value less costs to sell and are no longer depreciated. An impairment for assets held for sale is recognized if the carrying amount is not recoverable. Assets held for sale were not presented separately and were classified as other long-term assets in the consolidated balance sheets and were $1.3 million and $2.3 million at December 31, 2018 and 2017 , respectively. Goodwill and other intangible assets At least annually, or more frequently as changes in circumstances indicate, the Company tests goodwill for impairment. To the extent that the carrying value of the net assets of any of the reporting units having goodwill is greater than their estimated fair value, the Company may be required to record impairment charges. The Company’s five operating segments, which have been determined to be the Company’s reporting units, are the Mid-Atlantic, Southeast, Texas, Intermountain and Western divisions. The chief operating decision maker (“CODM”) reviews aggregate information to allocate resources and assess performance. Based on the CODM’s review, as well as the similar economic characteristics, nature of products, distribution methods and customers of the divisions, the Company has aggregated its operating segments into one reportable segment. The Company is required to make certain assumptions and estimates regarding the fair value of the reporting units containing goodwill when assessing for impairment. Changes in the fact patterns underlying such assumptions and estimates could ultimately result in the recognition of additional impairment losses. The Company completes its annual impairment assessment during the third quarter of each year. The Company did not recognize any impairment for the years ended December 31, 2018 , 2017 and 2016 . The Company may consider qualitative factors as part of its annual impairment assessment to determine whether it is more likely than not that a reporting unit’s carrying value exceeds its fair value. If the Company’s qualitative assessment indicates that goodwill impairment is more likely than not, the Company performs the two-step impairment test. Alternatively, the Company may bypass the qualitative test and initiate goodwill impairment testing with the first step of the two-step goodwill impairment test. During the first step of the goodwill impairment test, the fair value of the reporting unit is compared to its carrying value, including goodwill. The Company may derive a reporting unit’s fair value through a combination of the market approach (a guideline transaction method) and the income approach. The income approach uses a reporting unit’s projection of estimated future cash flows that is discounted at a market derived weighted average cost of capital. The projection uses management’s best estimates of economic and market conditions over the projected period including growth rates in sales, costs, estimates of future expected changes in operating margins and cash expenditures. If the fair value of a reporting unit exceeds its carrying value, then the Company concludes no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, the Company performs the second step of the goodwill impairment test to measure possible goodwill impairment loss. During the second step, the implied fair value of the reporting unit’s goodwill is compared to the carrying value of its goodwill. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, the Company would recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value of the reporting unit’s goodwill. Acquired intangible assets other than goodwill are amortized over their weighted average amortization period unless they are determined to be indefinite. Acquired intangible assets are carried at cost, less accumulated amortization. For intangible assets purchased in a business combination, the estimated fair values of the assets received are used to establish the carrying value. The fair value of acquired intangible assets is determined using common valuation techniques, and the Company employs assumptions developed using the perspective of a market participant. Impairment of long-lived assets Long-lived assets, such as property, equipment and purchased intangible assets subject to amortization, are reviewed for impairment whenever facts and circumstances indicate that the carrying amount of an asset may not be recoverable. For impairment testing of long-lived assets, the Company identifies asset groups at the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. Treasury stock During the year ended December 31, 2018, the Company’s board of directors authorized a $75.0 million share repurchase program. Repurchases may be made at management’s discretion from time to time on the open market, subject to applicable laws, or through privately negotiated transactions. The repurchase program will expire on November 20, 2019 or may be suspended or discontinued at any time. During the year ended December 31, 2018, utilizing cash from operations, the Company repurchased 0.2 million shares at a weighted average price of $15.91 per share for a total cost of $2.9 million . These repurchased shares are available for future issuance and are reflected as treasury stock, at cost, on the consolidated balance sheet as of December 31, 2018 . As of December 31, 2018, the Company had approximately $72.1 million of capacity remaining under the current share repurchase authorization. Subsequent to December 31, 2018, the Company repurchased 0.7 million shares at a weighted average price of $16.82 per share for a total cost of $11.5 million . Employees have the option to surrender shares to the Company to satisfy their tax withholding obligations in connection with the vesting of restricted stock and restricted stock unit awards. These surrendered shares are reflected as treasury stock, at cost, on the consolidated balance sheet as of December 31, 2018 and 2017 . Merger and integration costs Merger and integration costs related to the ongoing integration of Building Materials Holding Corporation (“BMHC”) and Stock Building Supply Holdings, Inc. (“SBS”), as a result of the 2015 merger transaction, consist primarily of severance, rebranding, system integration costs and professional fees. Income taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires an asset and liability approach for measuring deferred taxes based on temporary differences between the financial statement and tax basis of assets and liabilities existing at each balance sheet date using enacted tax rates for years in which taxes are expected to be paid or recovered. The Company evaluates its deferred tax assets on a quarterly basis to determine whether a valuation allowance is required. In accordance with ASC 740, the Company assesses whether a valuation allowance should be established based on its determination of whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends primarily on: (i) the Company’s ability to carry back net operating losses to tax years where it has previously paid income taxes based on applicable federal law; (ii) the timing of the reversal of deferred tax liabilities and (iii) the Company’s ability to generate future taxable income during the periods in which the related deferred tax assets are deductible. The assessment of a valuation allowance includes giving appropriate consideration to all positive and negative evidence related to the realization of the deferred tax asset. This assessment considers, among other things, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with operating loss and tax credit carryforwards not expiring unused and tax planning alternatives. Significant judgment is required in determining the future tax consequences of events that have been recognized in the Company’s consolidated financial statements and/or tax returns. Actual outcomes of these future tax consequences could differ materially from the outcomes that the Company currently anticipates. ASC 740 defines the methodology for recognizing the benefits of uncertain tax return positions as well as guidance regarding the measurement of the resulting tax benefits. These provisions require an enterprise to recognize the financial statement effects of a tax position when it is more likely than not, which is defined as a likelihood of more than 50%, based on technical merits, that the position will be sustained upon examination. The evaluation of whether a tax position meets the more likely than not recognition threshold requires a substantial degree of judgment by management based on the individual facts and circumstances. Actual results could differ from estimates. The Company had no material uncertain tax positions as of December 31, 2018. The Company’s policy is to recognize interest and penalties related to income tax liabilities and unrecognized tax benefits in income tax expense. Casualty and health insurance The Company carries insurance for general liability, auto liability and workers’ compensation exposures subject to deductibles or self-insured retentions it believes to be reasonable under the circumstances, and the Company self-insures for employee and eligible dependent health care claims, with insurance purchased from independent carriers to cover individual claims in excess of the self-insured limits. The expected liability for unpaid claims, including incurred but not reported losses, is reflected on the consolidated balance sheets as a liability with current and long-term components. The amount recoverable from insurance providers is reflected on the consolidated balance sheets in prepaid expenses and other current assets. Provisions for losses are developed from actuarial valuations that rely upon the Company’s past claims experience, which considers both the frequency and settlement of claims. The casualty and health insurance liabilities are recorded at their undiscounted value. In January 2015, the Company entered into a retroactive reinsurance contract to transfer the risk of loss of certain insurance reserves for workers’ compensation claims incurred from 2006 to 2011 to a reinsurer. Pursuant to the reinsurance contract, the reinsurer is obligated to pay an aggregate maximum of $17.5 million for these claims with any excess borne by the Company. The Company maintains the insurance reserves related to these claims as a liability on its consolidated balance sheet with an offsetting reinsurance receivable, which includes current and long-term components. As of December 31, 2018 and 2017 , the carrying value of the insurance reserves related to these claims and the offsetting reinsurance receivable was $3.7 million and $4.5 million , respectively. Changes in these claims are recorded as an increase or decrease in the insurance reserves and corresponding increase or decrease in the reinsurance receivable. Additionally, the Company monitors the financial condition of the reinsurer to minimize its exposure to significant losses from reinsurer insolvency. Retirement savings program The Company sponsors a defined contribution retirement savings plan. The Company has recorded expense of $5.9 million , $5.2 million and $4.6 million related to employer contributions for the years ended December 31, 2018 , 2017 and 2016 , respectively. These expenses are recorded to either selling, general and administrative expenses or cost of sales on the consolidated statements of operations, depending on the classification of the employee. Lease obligations The Company recognizes lease obligations with fixed escalations of rental payments on a straight-line basis over the lease term, with the amount of rental expense in excess of lease payments recorded as a deferred rent liability. Lease incentives received are also recorded as a deferred rent liability and are amortized as reductions to rent expense over the lease term. As of December 31, 2018 and 2017 , the Company had a deferred rent liability of $5.0 million and $4.2 million , respectively, included in accrued expenses and other liabilities and other long-term liabilities on the consolidated balance sheets. Advertising and promotion Costs associated with advertising and promoting products and services are expensed in the period incurred. Cooperative advertising allowances that are reimbursement of specific, incremental and identifiable costs incurred to promote vendors’ products are recorded as an offset against advertising expenses in selling, general and administrative expenses. If those conditions are not met, the cooperative advertising allowances are recorded as a reduction in inventory and a subsequent reduction in cost of goods sold when the related product is sold. For the years ended December 31, 2018 , 2017 and 2016 , the Company recorded $4.9 million , $5.8 million and $3.7 million , respectively, of advertising and promotion expenses, net of cooperative advertising allowances, in selling, general and administrative expenses. Stock-based compensation In accordance with the requirements of ASC 718, Compensation—Stock Compensation (“ASC 718”), the Company measures and recognizes compensation expense for all share-based payment awards made to employees using a fair value based pricing model. The compensation expense is recognized over the requisite service period, using graded vesting. Debt issuance costs Costs incurred in connection with the Company’s revolving line of credit and senior secured notes are capitalized and amortized over the term of the applicable agreement. Total debt issuance costs, net of accumulated amortization, were $6.4 million and $8.1 million as of December 31, 2018 and 2017 , respectively. Debt issuance costs related to the Company’s revolving line of credit and senior secured notes are included in other long-term assets and long-term debt, respectively, on the consolidated balance sheets. Amortization of debt issuance costs for the years ended December 31, 2018 , 2017 and 2016 was $1.7 million , $1.7 million and $3.1 million , respectively, and is included in interest expense on the consolidated statements of operations. Derivatives The Company will occasionally enter into derivative instruments to offset existing or expected risks associated with fluctuations in commodity prices. The Company does not enter into derivative instruments for speculative or trading purposes. The Company recognizes all derivative instruments as assets or liabilities in the Company’s balance sheets at fair value. Changes in the fair value of derivative instruments that are not designated as hedges or that do not meet the hedge accounting criteria are reported in earnings. The Company elected not to designate any new derivative instruments as hedges for the years ended December 31, 2018 , 2017 or 2016 , and therefore, all changes in the fair market value of the derivative instruments have been reported in cost of goods sold on the consolidated statements of operations. Warranty expense The Company has warranty obligations with respect to most manufactured products. As of December 31, 2018 and 2017 , the Company had warranty liabilities of $2.9 million and $2.5 million , respectively, included in accrued expenses and other liabilities on the consolidated balance sheets. Comprehensive income Comprehensive income is equal to the net income for all periods presented. Statement of cash flows Proceeds from revolving line of credit and Repayments of proceeds from revolving line of credit as presented on the Consolidated Statements of Cash Flows includes all cash activities and transactions between the Company and its associated lenders in relation to the revolving line of credit, excluding interest and fees, and is specifically inclusive of operating cash receipts which are automatically applied to the revolving line of credit pursuant to a cash sweep agreement. See Note 9 for further details on the Company’s revolving line of credit. Recently adopted accounting pronouncements In May 2014, the FASB issued 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. The Company adopted Topic 606 on January 1, 2018 using the modified retrospective transition method. See Note 11 for further details. 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. Retrospective application is required. ASU 2016-15 became effective for |
Acquisitions and Disposition
Acquisitions and Disposition | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and disposition | Acquisitions and Disposition 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. The Company accounts for all acquisitions using the acquisition method of accounting under ASC 805, Business Combinations (“ASC 805”), whereby the results of operations of the acquired company are included in the Company’s consolidated financial statements beginning on the acquisition date. 2018 Disposition On November 1, 2018 , the Company completed the sale of substantially all of the assets and certain liabilities of its Coleman Floor business (“Coleman Floor”) for a preliminary sale price of $7.8 million , subject to certain customary post-closing adjustments. For the year ended December 31, 2018, the net sales of Coleman Floor represented approximately 1% of the Company’s net sales. The sale does not represent a strategic shift under ASC 205, Presentation of Financial Statements, and as such, is not reported as a discontinued operation in the Company’s consolidated financial statements. The Company recognized a loss on the sale of $0.3 million , which is included in other income, net in the consolidated statements of operations. 2018 Acquisition On March 1, 2018 , the Company acquired substantially all of the assets and assumed certain liabilities of W.E. Shone Co. (“Shone Lumber”), a supplier of building materials in the state of Delaware, for a preliminary purchase price of $22.4 million . This acquisition enhances the Company’s value-added offerings and footprint in the Mid-Atlantic region. The preliminary purchase price includes a holdback which, after certain post-closing adjustments, requires the Company to pay $1.4 million to the sellers one year from the closing date. The holdback amount may be further reduced under certain circumstances. The Company funded the transaction through available cash and borrowings on the Company’s revolving line of credit. The purchase price allocation resulted in the recognition of goodwill of $2.5 million , a customer relationship intangible asset of $7.0 million , accounts receivable of $6.4 million , inventory of $8.8 million , property and equipment of $2.9 million and total current liabilities of $5.3 million , as well as other operating assets. The customer relationship intangible asset has a useful life of 9 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, 2017, Shone Lumber generated net sales of approximately $70.7 million . The Company incurred transaction costs of $0.2 million for the year ended December 31, 2018, which are included in selling, general and administrative expenses in the consolidated statements of operations. Net sales and estimated pre-tax earnings for Shone Lumber included in the consolidated statements of operations from the March 1, 2018 acquisition date to December 31, 2018 were $60.9 million and $3.2 million , respectively. The impact of the acquisition was not considered significant for the reporting of pro forma financial information. 2017 Acquisitions 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 purchase price of $31.7 million . This acquisition enhances the Company’s value-added offerings and footprint in the Dallas-Fort Worth market. The Company funded the transaction through borrowings on the Company’s revolving line of credit. The purchase price allocation resulted in the recognition of goodwill of $3.6 million , a customer relationship intangible asset of $13.6 million , accounts receivable of $5.2 million , inventory of $3.9 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. 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 acquisition includes an earnout provision that requires the Company to pay the sellers an additional $0.8 million during the year ended December 31, 2019, due to 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 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. Net sales and estimated pre-tax earnings for Code Plus and TexPly, in aggregate, included in the consolidated statements of operations were $54.3 million and $3.2 million , respectively, for the year ended December 31, 2017. The impact of the Code Plus and TexPly acquisitions was not considered significant for the reporting of pro forma financial information. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable consist of the following at December 31, 2018 and 2017 : (in thousands) 2018 2017 Trade receivables $ 305,363 $ 333,954 Allowance for doubtful accounts (4,904 ) (4,771 ) Sales returns allowance (a) — (4,127 ) Other allowances (2,019 ) (2,164 ) $ 298,440 $ 322,892 (a) Effective January 1, 2018, as part of the Company’s adoption of Topic 606, the Company has recorded a liability for estimated returns of inventory as a refund liability within accrued expenses and other liabilities. These balances were previously presented as an allowance within accounts receivable. See Note 11 for further details. The following table shows the changes in the allowance for doubtful accounts: (in thousands) 2018 2017 2016 Balance at January 1 $ 4,771 $ 4,162 $ 2,357 Write-offs (4,676 ) (3,665 ) (2,186 ) Recoveries 1,460 960 2,587 Increase in allowance 4,906 3,314 1,404 Other (a) (1,557 ) — — Balance at December 31 $ 4,904 $ 4,771 $ 4,162 (a) During the year ended December 31, 2018, the Company entered into a promissory note with one of its customers resulting in a note receivable of $2.6 million and corresponding allowance of $1.3 million , included in other long-term assets. These amounts were previously included in trade receivables and allowance for doubtful accounts, respectively, within accounts receivable. Additionally, the allowance for doubtful accounts balance declined by $0.3 million during the year ended December 31, 2018 in connection with the sale of accounts receivable in the Coleman Floor disposition. See Note 3 for further details. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist principally of materials purchased for resale, including lumber, sheet goods, millwork, doors and windows, as well as certain manufactured products and are valued at the lower of cost or net realizable value, with cost being measured using a weighted average cost approach, which approximates the first-in, first-out approach. A provision for excess and obsolete inventory of $2.3 million and $1.5 million is recorded as of December 31, 2018 and 2017 , respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following at December 31, 2018 and 2017 : (in thousands) 2018 2017 Land $ 48,027 $ 51,009 Buildings and improvements 106,072 104,752 Leasehold improvements 22,758 19,750 Furniture, fixtures and equipment 186,017 161,014 Vehicles 134,470 120,855 Construction-in-progress 11,695 14,519 509,039 471,899 Less: Accumulated depreciation (214,712 ) (176,079 ) $ 294,327 $ 295,820 Total depreciation expense for the years ended December 31, 2018 , 2017 and 2016 was $50.4 million , $53.2 million and $48.0 million , respectively, including amortization expense related to capital leases. These amounts include depreciation expense of $10.7 million , $10.2 million and $9.5 million included in cost of goods sold in 2018 , 2017 and 2016 , respectively. Impairment of BMHC ERP System During 2013, 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 Legacy SBS (the “Legacy SBS ERP system”) and to discontinue the use of the New ERP. In connection with this decision, the Company recorded asset impairment charges of approximately $11.9 million in its consolidated statement of operations for the year ended December 31, 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 consolidated balance sheets. During the year ended December 31, 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 consolidated statements of operations for the year ended December 31, 2017, consisting of $2.1 million for contractual payments due subsequent to the cease use date, all of which have been paid as of December 31, 2017, and the acceleration of expense recognition of unamortized prepaid costs of $0.7 million . |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill The following table details the goodwill activity for the years ended December 31, 2018 and 2017 : (in thousands) December 31, 2016 $ 254,832 Acquisition of Code Plus 3,402 Acquisition of TexPly 3,558 December 31, 2017 261,792 Acquisition of Shone Lumber 2,526 Disposition of Coleman Floor (1,321 ) December 31, 2018 $ 262,997 Intangible assets Intangible assets represent the value assigned to trademarks, customer relationships and non-compete agreements in connection with acquired companies. The following table provides the gross carrying amount and related accumulated amortization of definite-lived intangible assets. Trademarks Customer Relationships Non-Compete Agreements Gross Gross Gross Carrying Accumulated Carrying Accumulated Carrying Accumulated (in thousands) Amount Amortization Amount Amortization Amount Amortization Total December 31, 2015 $ 5,350 $ (408 ) $ 179,700 $ (2,664 ) $ 6,512 $ (554 ) $ 187,936 Amortization — (2,140 ) — (12,845 ) — (5,736 ) (20,721 ) December 31, 2016 5,350 (2,548 ) 179,700 (15,509 ) 6,512 (6,290 ) 167,215 Acquisition of Code Plus — — 2,300 — 500 — 2,800 Acquisition of TexPly — — 13,600 — — — 13,600 Amortization — (2,010 ) — (13,785 ) — (208 ) (16,003 ) December 31, 2017 5,350 (4,558 ) 195,600 (29,294 ) 7,012 (6,498 ) 167,612 Acquisition of Shone Lumber — — 7,000 — — — 7,000 Disposition of Coleman Floor (1,000 ) 291 — — — — (709 ) Amortization — (83 ) — (14,743 ) — (189 ) (15,015 ) December 31, 2108 $ 4,350 $ (4,350 ) $ 202,600 $ (44,037 ) $ 7,012 $ (6,687 ) $ 158,888 Aggregate amortization expense was $15.0 million , $16.0 million and $20.7 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Based upon current assumptions, the Company expects that its definite-lived intangible assets will be amortized according to the following schedule: (in thousands) 2019 $ 14,972 2020 14,972 2021 14,972 2022 14,897 2023 14,872 Thereafter 84,203 $ 158,888 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consists of the following at December 31, 2018 and 2017 . Certain prior year amounts have been reclassified to conform to the current year presentation. (in thousands) 2018 2017 Accrued payroll and other employee related expenses $ 62,518 $ 41,798 Accrued taxes 21,028 20,741 Accrued rebates payable 5,725 4,653 Refund liability for estimated inventory returns (a) 3,850 — Pending litigation accrual 2,950 2,950 Accrued warranty reserve 2,930 2,467 Acquisition holdback and earnout liabilities 2,136 370 Accrued professional fees 1,156 715 Accrued credit card fees 1,110 1,127 Current portion deferred rent 694 818 Unfavorable leases 416 520 Advances from customers (a) — 11,664 Other 5,763 8,439 $ 110,276 $ 96,262 (a) Effective January 1, 2018, as part of the Company’s adoption of Topic 606, the Company has recorded a liability for estimated returns of inventory as a refund liability within accrued expenses and other liabilities. These balances were previously presented as an allowance within accounts receivable. Additionally, the Company has presented advances from customers, which were historically presented within accrued expenses and other liabilities, as a contract liability. See Note 11 for further details. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt at December 31, 2018 and 2017 consists of the following: (in thousands) December 31, 2018 December 31, 2017 Senior secured notes, due 2024 $ 350,000 $ 350,000 Revolving credit agreement — 4,462 Other — 336 350,000 354,798 Unamortized debt issuance costs related to senior secured notes (4,803 ) (5,639 ) 345,197 349,159 Less: Current portion of long-term debt — 100 $ 345,197 $ 349,059 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 are governed by an indenture dated September 15, 2016 (the “Indenture”). 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 the 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 Senior Notes mature on October 1, 2024 and are secured by a first priority lien on certain assets of the Company and a second priority lien on the collateral that secures the Credit Agreement on a first-priority basis, which collectively accounts for substantially all assets of the Company. The interest rate is fixed at 5.5% and is payable semiannually on April 1 and October 1 . The Indenture contains customary nonfinancial covenants, including restrictions on new indebtedness, issuance of liens and guarantees, investments, distributions to equityholders, asset sales and affiliate transactions. At any time prior to October 1, 2019, the Company may redeem the Senior Notes in whole or in part at a price equal to 100% of the principal, plus accrued and unpaid interest, plus the greater of (a) 1% of the principal amount of such Senior Note and (b) on any redemption date, the excess (to the extent positive) of the present value of the redemption price of such Senior Note at October 1, 2019 (equal to 104.125% ) plus all required interest payments due on such Senior Note to and including October 1, 2019 (excluding accrued but unpaid interest), computed upon the redemption date using a discount rate equal to the applicable treasury rate, as defined in the Indenture, at such redemption date plus 50 basis points, over the outstanding principal amount of such Senior Note. Further, during any twelve month period prior to October 1, 2019, the Company may redeem up to 10% of the Senior Notes at a redemption price equal to 103% plus accrued and unpaid interest. At any time on or after October 1, 2019, the Company may redeem the Senior Notes in whole or in part at the redemption prices set forth in the Indenture plus accrued and unpaid interest. In addition, at any time prior to October 1, 2019, the Company may redeem up to 40% of the aggregate principal amount of the Senior Notes with the net cash proceeds of one or more equity offerings, as described in the Indenture, at a price equal to 105.5% plus accrued and unpaid interest. If the Company experiences certain change of control events, holders of the Senior Notes may require the Company to repurchase all or part of their Senior Notes at a price equal to 101% plus accrued and unpaid interest. The Company was in compliance with all debt covenants under the Indenture as of December 31, 2018 . 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 which were scheduled to mature in September 2018 (the “Extinguished Senior Notes”), and to pay accrued interest on the Extinguished Senior Notes of $11.3 million . In connection with the redemption of the Extinguished Senior Notes, the Company incurred a loss on debt extinguishment of $12.5 million , 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 . The remaining proceeds were used to repay outstanding borrowings on the Revolver (as defined below) and to pay debt issuance costs of $6.7 million , which will be amortized over the term of the Senior Notes. As of December 31, 2018 , the estimated market value of the Senior Notes was $21.0 million lower 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 , in connection with the Merger, the Company entered into a senior secured credit agreement with Wells Fargo Capital Finance, as administrative agent, and certain other lenders (the “Original Credit Agreement”) which includes a revolving line of credit (the “Revolver”). On September 15, 2016 , the Company entered into the second amendment to the Credit Agreement (the “Second Amendment” and, the Original Credit Agreement as amended by the Second Amendment, the “Credit Agreement”), which reduced the aggregate commitment from $450.0 million to $375.0 million and increased the letters of credit commitment from $75.0 million to $100.0 million . The Revolver is subject to an asset-based borrowing formula on eligible accounts receivable, credit card receivables and inventory, in each case reduced by certain reserves. Borrowings under the Revolver bear interest, at the Company’s option, at either the Base Rate (which means the higher of (i) the Federal Funds Rate plus 0.5% , (ii) the LIBOR rate plus 1.0% or (iii) the prime rate) plus a Base Rate Margin (which ranges from 0.25% to 0.75% based on Revolver availability) or LIBOR plus a LIBOR Rate Margin (which ranges from 1.25% to 1.75% based on Revolver availability). The fee on any outstanding letters of credit issued under the Revolver ranges from 0.75% to 1.25% , depending on whether the letters of credit are fully cash collateralized. The fee on the unused portion of the Revolver is 0.25% . The Credit Agreement contains customary nonfinancial covenants, including restrictions on new indebtedness, issuance of liens, investments, distributions to equityholders, asset sales and affiliate transactions. The Credit Agreement includes a financial covenant that requires us to maintain a Fixed Charge Coverage Ratio, as defined therein, of at least 1.00 :1:00, at the end of any fiscal quarter during the period from the date that Excess Availability, as defined therein, under the Credit Agreement is less than or equal to the greater of (1) $33.3 million and (2) 10% of the line cap, and remains in effect until excess availability has been greater than the greater of (1) $33.3 million and (2) 10% of the line cap for a period of at least 30 consecutive days. The Revolver matures at the earlier of (i) December 1, 2020 and (ii) the date that is three months prior to the maturity of the Senior Notes, or if the Senior Notes are refinanced or repaid, the date that is three months prior to the new maturity date of the replacement notes or other indebtedness that replaced or refinanced the Senior Notes. Due to the redemption of the Extinguished Senior Notes during September 2016, the issuance of the Senior Notes which mature on October 1, 2024 and the Company entering into the Second Amendment, the effective maturity date of the Revolver was extended from June 15, 2018, the date three months prior to the maturity date of the Extinguished Senior Notes, to December 1, 2020. After considering the increase to the remaining term and the reduction of the aggregate commitment resulting from the Second Amendment, the overall borrowing capacity of the Revolver increased. Accordingly, all existing unamortized debt issuance costs and new debt issuance costs related to the Second Amendment are being amortized through December 1, 2020. The Company was in compliance with all debt covenants under the Credit Agreement as of December 31, 2018 . The Company had no outstanding borrowings under the Revolver with net availability of $309.5 million as of December 31, 2018 . The Company had $61.0 million in letters of credit outstanding under the Credit Agreement as of December 31, 2018 . Obligations under the Credit Agreement are guaranteed by the Company’s material subsidiaries. Obligations under the Credit Agreement and the guarantees of those obligations, are secured by substantially all of the Company’s assets and those of the guarantors, subject to certain exceptions and permitted liens, including a first-priority security interest in certain accounts receivable, inventory and certain other assets of the Company and a second-priority security interest in substantially all other assets of the Company that secure the Senior Notes on a first-priority basis. Scheduled maturities of long-term debt were as follows: (in thousands) 2019 $ — 2020 — 2021 — 2022 — 2023 — Thereafter 350,000 $ 350,000 |
Other Long-term Liabilities
Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-term Liabilities | Other Long-term Liabilities Other long-term liabilities consists of the following at December 31, 2018 and 2017 : (in thousands) 2018 2017 Long-term deferred rent $ 4,347 $ 3,428 Unfavorable leases 1,843 2,298 Other 737 1,313 $ 6,927 $ 7,039 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Adoption of Topic 606 On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historical accounting policy under Topic 605, Revenue Recognition. The impact of adopting Topic 606 was not material to the Company’s results of operations for the year ended December 31, 2018 and as such, comparability between periods is not materially affected. Beginning January 1, 2018, the Company has presented contract assets and contract liabilities on its consolidated balance sheets, determined on a contract-by-contract basis. Contract assets contain rights to payment that are conditional on something other than the passage of time, such as retainage, which were historically presented within accounts receivable, net of allowances, as well as the balances that were historically presented within costs in excess of billings on uncompleted contracts on the Company’s consolidated balance sheets. Contract liabilities contain advances from customers, which were historically presented within accrued expenses and other liabilities, as well as the balances that were historically presented within billings in excess of costs on uncompleted contracts on the Company’s consolidated balance sheets. Refer to further discussion of the Company’s contract assets and contract liabilities below. Additionally, beginning January 1, 2018, the Company has presented a return asset, which represents inventory the Company expects to receive from customers related to estimated sales returns, within prepaid expenses and other current assets on the Company’s consolidated balance sheets. This balance was previously presented within inventories, net, on the Company’s consolidated balance sheets. Conversely, the Company has recorded a refund liability for estimated returns of inventory within accrued expenses and other liabilities on the Company’s consolidated balance sheets. These balances were previously presented as an allowance within accounts receivable, net of allowances, on the Company’s consolidated balance sheets. The following table reflects the cumulative impact of adoption of Topic 606. As the cumulative impact of adopting Topic 606 on the Company’s historical results of operations was less than $0.1 million , the Company did not record an adjustment to opening retained earnings as of January 1, 2018. (in thousands) December 31, 2017 Adoption of Topic 606 January 1, 2018 Accounts receivable, net of allowances $ 322,892 $ (8,884 ) $ 314,008 Inventories, net 309,060 (3,128 ) 305,932 Contract assets — 38,557 38,557 Costs in excess of billings on uncompleted contracts 28,738 (28,738 ) — Prepaid expenses and other current assets 57,949 3,128 61,077 Total assets 1,473,350 935 1,474,285 Accrued expenses and other liabilities 96,262 (6,967 ) 89,295 Contract liabilities — 26,330 26,330 Billings in excess of costs on uncompleted contracts 18,428 (18,428 ) — Total liabilities 726,451 935 727,386 Total liabilities and stockholders’ equity $ 1,473,350 $ 935 $ 1,474,285 The following table reflects the impact of adoption of Topic 606 on the Company’s financial position as of December 31, 2018. (in thousands) Balances without Adoption of Topic 606 Adjustments As Reported Accounts receivable, net of allowances $ 306,600 $ (8,160 ) $ 298,440 Inventories, net 312,055 (2,776 ) 309,279 Contract assets — 32,348 32,348 Costs in excess of billings on uncompleted contracts 23,769 (23,769 ) — Prepaid expenses and other current assets 53,473 2,776 56,249 Total assets 1,575,692 419 1,576,111 Accrued expenses and other liabilities 120,118 (9,842 ) 110,276 Contract liabilities — 34,888 34,888 Billings in excess of costs on uncompleted contracts 24,627 (24,627 ) — Total liabilities 701,033 419 701,452 Total liabilities and stockholders’ equity $ 1,575,692 $ 419 $ 1,576,111 Disaggregation of revenue The following table presents the Company’s net sales disaggregated by customer type. See Note 15 to the consolidated financial statements for a disaggregation of the Company’s net sales by main product lines. As noted above, prior period amounts have not been adjusted under the modified retrospective method and continue to be reported in accordance with the Company’s historic accounting policy under Topic 605. The following table reflects the Company’s estimate of net sales by each customer type for the years ended December 31, 2018, 2017 and 2016. Certain previously reported amounts for interim periods during the year ended December 31, 2018 and for the year ended December 31, 2017 were revised in the table below. The revisions were not material to the previously issued financial statements. Year Ended December 31, (in thousands) 2018 2017 2016 Single-family homebuilders $ 2,814,100 $ 2,526,837 $ 2,262,124 Remodeling contractors 427,346 380,460 371,018 Multi-family, commercial & other contractors 441,002 458,671 460,601 Total net sales $ 3,682,448 $ 3,365,968 $ 3,093,743 Contract balances The following table reflects the Company’s contract balances as of December 31, 2018 and January 1, 2018, the date that the Company adopted Topic 606: (in thousands) December 31, 2018 January 1, 2018 Change Receivables, including unbilled receivables presented in prepaid expenses and other current assets $ 306,370 $ 321,418 $ (15,048 ) Contract assets 32,348 38,557 (6,209 ) Contract liabilities $ 34,888 $ 26,330 $ 8,558 During the year ended December 31, 2018, the Company’s contract assets decreased by $6.2 million and the Company’s contract liabilities increased by $8.6 million . The change in contract assets and liabilities was primarily due to the timing of revenue recognition, as the balances were not materially impacted by any other factors. For the year ended December 31, 2018, the Company recognized revenue of $25.1 million , that was included in contract liabilities as of January 1, 2018. Revenue recognized related to performance obligations that were satisfied or partially satisfied in previous periods was not material for the year ended December 31, 2018. Practical expedients As permitted by Topic 606, the Company has elected to expense any incremental costs of obtaining a contract as incurred as the amortization period would have been one year or less. Additionally, as permitted by Topic 606, the Company has elected not to adjust the promised amount of consideration for a significant financing component as the Company expects that the period of time between the Company’s satisfaction of the performance obligation and the customer’s payment would have been one year or less. Finally, as permitted by Topic 606, the Company has elected not to disclose the value of unsatisfied performance obligations, as the Company’s contracts generally have an original expected length of one year or less. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense for the years ended December, 31 2018 , 2017 and 2016 are as follows: (in thousands) 2018 2017 2016 Current Federal $ 32,042 $ 20,215 $ 16,713 State 3,868 1,869 1,124 35,910 22,084 17,837 Deferred Federal 160 1,797 (3,049 ) State 1,106 521 (522 ) 1,266 2,318 (3,571 ) $ 37,176 $ 24,402 $ 14,266 A reconciliation of differences between the statutory U.S. federal income tax rate and the Company’s effective tax rate from continuing operations for the years ended December 31, 2018 , 2017 and 2016 follows: 2018 2017 2016 Federal statutory rate 21.0 % 35.0 % 35.0 % State taxes, net of federal tax 2.6 2.9 2.7 Nondeductible capitalized transaction costs — 0.2 1.4 Nondeductible compensation expense 0.2 0.2 0.5 Nondeductible (permanent) items 0.2 0.9 1.0 IRC Section 199 manufacturing deduction 0.1 (2.5 ) (3.5 ) Changes in tax rates, including 2017 Tax Act (0.2 ) (4.4 ) 1.6 Changes related to IRC section 382 limitations — — (3.9 ) Excess windfall benefit of stock compensation (0.2 ) (2.3 ) (3.7 ) Other items — (0.2 ) 0.5 Effective tax rate 23.7 % 29.8 % 31.6 % On December 22, 2017, the 2017 Tax Act was enacted, which significantly changed U.S. tax law effective January 1, 2018 by, among other things, lowering corporate income tax rates from 35% to 21% , eliminating Internal Revenue Code (“IRC”) Section 199 manufacturing deduction, accelerating tax depreciation on certain acquired assets, further limiting executive compensation, and creating certain interest deduction limitations. The Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the 2017 Tax Act. The Company recognized a net tax benefit of $3.6 million during the year ended December 31, 2017 related to the impact of the 2017 Tax Act for the remeasurement of deferred tax assets and liabilities. During the year ended December 31, 2018, the Company completed its accounting for the income tax effects of the 2017 Tax Act within the measurement period as provided under SEC Staff Accounting Bulletin No. 118, which resulted in recognizing an additional tax benefit of $0.5 million . For the year ended December 31, 2018, the Company recognized $37.2 million of income tax expense, which included an income tax benefit of $0.5 million related to the 2017 Tax Act. The Company’s effective tax rate for the year ended December 31, 2018 was higher than the Company’s federal and state statutory rates primarily due to nondeductible expenses. For the year ended December 31, 2017, the Company recognized $24.4 million of income tax expense, which included an income tax benefit of $3.6 million related to the 2017 Tax Act. The Company’s effective tax rate for the year ended December 31, 2017 was lower than the federal and state statutory rates primarily due to the effects of the 2017 Tax Act, an IRC Section 199 manufacturing deduction and excess windfall tax benefits of stock compensation deductions. For the year ended December 31, 2016, the Company recognized $14.3 million of income tax expense, which included an income tax benefit of $1.7 million as a result of the Company adopting a state tax position related to IRC section 382 limitations on a state net operating loss carry-forward. For the year ended December 31, 2016, the Company’s effective tax rate, excluding the state tax position change, was lower than the Company’s federal and state statutory rates primarily due to excess windfall tax benefits of stock compensation deductions and an IRC section 199 manufacturing deduction. Significant components of the Company’s deferred tax assets and liabilities are as follows at December 31, 2018 and 2017 : (in thousands) 2018 2017 Deferred tax assets related to: Accounts receivable $ 2,278 $ 2,061 Inventory 2,631 1,931 Accrued compensation 6,783 2,981 Insurance reserves 11,545 10,778 Stock-based compensation 3,399 2,388 Restructuring reserves 325 365 Other accrued liabilities 1,514 1,149 Federal net operating loss carryforward 16,349 17,372 State net operating loss carryforward 3,882 5,559 Other 1,915 1,633 50,621 46,217 Valuation allowance (145 ) (145 ) Total deferred tax assets 50,476 46,072 Deferred tax liabilities related to: Goodwill and intangibles (21,946 ) (21,030 ) Property and equipment (29,684 ) (25,440 ) Other assets (1,880 ) (1,370 ) Total deferred tax liabilities (53,510 ) (47,840 ) Net deferred tax liability $ (3,034 ) $ (1,768 ) As of December 31, 2018 , due to IRC section 382 limitations, the Company estimates federal net operating loss carryforwards generated prior to November 2011 will be limited to approximately $4.8 million per year through 2034 . These net operating losses may generally be carried forward 20 years. As a result, federal operating losses if unused will expire as follows: • $29.4 million in 2028; • $17.3 million in 2029; and • $31.2 million in years 2030 through 2034. In addition, as of December 31, 2018, the Company had $75.1 million of state net operating loss carryforwards that expire at various dates commencing in 2022 through 2035 . The Company recognized tax benefits of $0.3 million and $1.9 million during 2018 and 2017, respectively, from stock-based compensation deductions into its income tax expense. Deferred tax assets relating to tax benefits of stock-based compensation were reduced to reflect exercises or vesting; however, some exercises or vesting resulted in tax deductions in excess of previously recorded deferred tax benefits (“windfalls”). Prior to the adoption of ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, windfall tax benefits were recognized as a component of shareholders’ equity, which included $0.4 million for December 31, 2016 . The Company recognized a current income tax payable of $0.9 million and an income tax receivable of $3.7 million as of December 31, 2018 and 2017 , respectively. The Company paid federal and state income tax payments of $34.2 million and $23.5 million during 2018 and 2017 , respectively. The Company received tax refunds of $2.9 million and $0.6 million in 2018 and 2017 , respectively. In accordance with ASC 740, the Company evaluates its deferred tax assets 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. As of December 31, 2018 and 2017 , the primary positive evidence considered to support the realization of the Company’s deferred tax assets includes: (i) the cumulative pre-tax income over the last 36 months, (ii) the reversal of deferred tax liabilities related to depreciation and amortization that would occur within the same jurisdiction and during the carry forward period necessary to absorb the federal and state net operating losses and other deferred tax assets, (iii) current and prior year utilization of federal and state net operating losses, and (iv) no history of material expiring tax attributes. The primary negative evidence considered includes: (i) the Company’s cumulative losses prior to 2013, (ii) unsettled circumstances associated with the general economy and housing market, as well as mortgage credit availability, and (iii) no federal and state net operating loss carryback opportunities. To the extent the Company generates future net operating losses, the Company may be required to increase the valuation allowance on its deferred tax assets and income tax benefit would be adversely affected. Based upon the positive and negative evidence considered, the Company believes it is more likely than not that it will realize the benefit of the deferred tax assets, net of the existing state tax valuation allowances of $0.1 million as of December 31, 2018 and 2017 . To the extent the Company generates sufficient taxable income in the future to fully utilize the tax benefits of the net deferred tax assets on which a valuation allowance was recorded, the Company’s effective tax rate would be impacted as the valuation allowance is reversed. The Company continues to evaluate its deferred tax asset on a quarterly basis and notes that, if economic conditions were to change such that the Company earns less taxable income than the amounts required to fully utilize its deferred tax asset, a portion of the asset may expire unused. The following table shows the changes in the amount of the Company’s valuation allowance: (in thousands) 2018 2017 2016 Balance at January 1, $ 145 $ 125 $ 126 Additions charged to expense — 20 — Additions charged to Goodwill/Purchase Accounting — — — Deductions - other — — (1 ) Balance at December 31, $ 145 $ 145 $ 125 The Company has no material uncertain tax positions as of December 31, 2018 and 2017. The Company’s state tax returns are open to examination for an average of three years. However, certain jurisdictions remain open to examination longer than three years due to the existence of net operating losses. The Company’s federal returns are open to examination for three years; however, due to statutory waivers, SBS’ tax years ended July 31, 2008 and May 5, 2009 remain open until July 31, 2020 with the federal tax authorities. SBS is currently under examination by the IRS for its tax years ended July 31, 2008 and May 5, 2009 . At December 31, 2018 and 2017 , the amount recognized related to expected tax, penalties and interest payments as a result of the IRS audits in income taxes payable and income taxes receivable, respectively, on the consolidated balance sheets was immaterial. The Company’s policy is to recognize interest and penalties related to income tax liabilities and unrecognized tax benefits in income tax expense. During the years ended December 31, 2018 , 2017 and 2016 , penalties and interest related to income tax liabilities and uncertain tax benefits were not material. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is obligated under capital leases covering fleet vehicles and certain equipment, as well as certain facilities. The fleet vehicles and equipment leases generally have terms ranging from three to six years and the facility leases have a remaining term of four to five years. The carrying value of property and equipment under capital leases was $17.2 million and $25.2 million at December 31, 2018 and 2017 , respectively, net of accumulated depreciation of $42.5 million and $37.1 million , respectively. Amortization of assets held under capital leases is included within depreciation expense or cost of goods sold on the consolidated statements of operations. The Company also has noncancelable operating leases, primarily for buildings, improvements and equipment. These leases generally contain renewal options for periods ranging from one to five years and may require the Company to pay executory costs such as property taxes, maintenance and insurance. Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum capital lease payments as of December 31, 2018 are as follows: (in thousands) Capital Operating 2019 $ 7,245 $ 30,431 2020 5,599 24,210 2021 2,356 21,551 2022 873 17,908 2023 660 14,607 Thereafter — 34,279 16,733 $ 142,986 (a) Less: Amounts representing interest (1,227 ) Total obligation under capital leases 15,506 Less: Current portion of capital lease obligation (6,661 ) Long-term capital lease obligation $ 8,845 (a) Minimum operating lease payments have not been reduced by minimum sublease rentals of $0.1 million due in the future under noncancelable subleases. Total rent expense under operating leases, excluding short-term rentals, for the years ended December 31, 2018 , 2017 and 2016 was $32.2 million , $30.5 million and $29.3 million , respectively, which are included in either cost of sales or selling, general and administrative expenses on the consolidated statements of operations, depending on the type of operations undertaken by the related facility or asset. Future payments for certain leases will be adjusted based on increases in the consumer price index. As of December 31, 2018 , the Company had purchase commitments totaling $31.6 million related primarily to vehicles and certain IT equipment, which are enforceable and legally binding on the Company. 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 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. As of December 31, 2018 and 2017, the Company has accrued $3.0 million in relation to pending litigation that was recorded within selling, general and administrative expenses in its statements of operations during the year ended December 31, 2017. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation Long-term incentive plan In connection with its initial public offering in August 2013, SBS adopted the Stock Building Supply Holdings, Inc. 2013 Incentive Compensation Plan (“SBS 2013 Incentive Plan”). The SBS 2013 Incentive Plan provides for grants of stock options, stock appreciation rights, restricted stock, other stock-based awards, other cash-based compensation and performance awards. In general, if awards under the SBS 2013 Incentive Plan are for any reason canceled, or expire or terminate unexercised, the shares covered by such awards may again be available for the grant of awards under the SBS 2013 Incentive Plan. Awards granted under the SBS 2013 Incentive Plan generally vest over a period of three or four years. Stock options granted under the SBS 2013 Incentive Plan have a maximum contractual term of 10 years from the date of grant. As of December 31, 2018, 2.4 million shares were available for issuance under the SBS 2013 Incentive Plan. Performance-based restricted stock units As of December 31, 2018, the Company has performance-based restricted stock units outstanding that were granted during the years ended December 31, 2018 and 2017. The total number of performance-based restricted stock units that could be issued upon future vestings ranges from zero to a maximum of 0.6 million , based 50% upon the Company’s average return on invested capital and 50% upon the Company’s cumulative adjusted earnings per share over three year performance periods. Compensation cost for the performance-based restricted stock units is recorded based on the expected number of units that will vest and is adjusted, as appropriate, throughout the performance period. Stock based compensation expense Stock based compensation is included in selling, general and administrative expenses on the consolidated statements of operations. The following table highlights stock based compensation for the years ended December 31, 2018 , 2017 and 2016 : (in thousands) 2018 2017 2016 Restricted stock units (a) $ 11,133 $ 6,006 $ 4,643 Restricted stock 100 436 1,559 Stock options 82 327 1,050 Stock based compensation $ 11,315 $ 6,769 $ 7,252 (a) Includes service-based and performance-based restricted stock units. Stock based award activity The following is a summary of restricted stock and restricted stock unit activity, excluding performance-based restricted stock units: Restricted Stock Restricted Stock Units Number of Shares Outstanding (in thousands) Weighted Average Grant Date Fair Value Number of Units Outstanding (in thousands) Weighted Average Grant Date Fair Value December 31, 2015 455 $ 13.51 282 $ 16.99 Granted — — 166 17.65 Vested (301 ) 11.95 (123 ) 16.86 Forfeited (37 ) 13.69 (27 ) 17.16 December 31, 2016 117 17.42 298 17.39 Granted — — 396 21.79 Vested (49 ) 16.25 (163 ) 17.49 Forfeited (8 ) 19.08 (21 ) 20.34 December 31, 2017 60 18.17 510 20.65 Granted — — 748 20.22 Vested (60 ) 18.17 (266 ) 20.64 Forfeited — — (88 ) 19.32 December 31, 2018 — $ — 904 $ 20.43 The following is a summary of the maximum number of performance-based restricted stock units which could be earned and related activity: Performance-Based Restricted Stock Units Number of Units Outstanding (in thousands) Weighted Average Grant Date Fair Value December 31, 2015 — $ — Granted (a) 206 16.35 Vested — — Forfeited — — December 31, 2016 206 16.35 Granted (a) 255 21.94 Vested — — Forfeited (8 ) 22.90 December 31, 2017 453 19.37 Granted (a) 474 19.64 Vested — — Forfeited (302 ) 17.76 December 31, 2018 625 $ 20.36 (a) Represents the maximum number of performance-based restricted stock units which could be earned. The following is a summary of stock option award activity: Number of Options (in thousands) Weighted Average Exercise Price Contractual Term (in years) Intrinsic Value (in thousands) Outstanding at December 31, 2015 1,228 $ 14.17 Granted 3 17.04 Exercised (175 ) 7.90 Forfeited (10 ) 17.04 Expired (22 ) 17.53 Outstanding at December 31, 2016 1,024 15.15 Granted — — Exercised (260 ) 13.05 Forfeited (14 ) 17.04 Expired (45 ) 19.89 Outstanding at December 31, 2017 705 15.59 Granted — — Exercised (96 ) 14.01 Forfeited (6 ) 17.04 Expired (7 ) 16.37 Outstanding at December 31, 2018 596 $ 15.82 5.3 $ 982 Exercisable at December 31, 2018 596 $ 15.82 5.3 $ 982 Vested and expected to vest at December 31, 2018 596 $ 15.82 5.3 $ 982 The weighted average grant date fair value of stock options granted during the year ended December 31, 2016 was $9.70 . During the years ended December 31, 2018 , 2017 and 2016 , the aggregate intrinsic value of the stock options exercised was $0.8 million , $2.3 million and $1.9 million , respectively. The following table summarizes the Company’s total unrecognized compensation cost related to equity based compensation as of December 31, 2018 : (in thousands, except period data) Unrecognized Compensation Cost Weighted Average Remaining Period of Expense Recognition (in years) Restricted stock units $ 8,693 1.5 Performance-based restricted stock units 5,140 2.4 $ 13,833 |
Segments
Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments | Segments ASC 280, Segment Reporting (“ASC 280”) defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the CODM in deciding how to allocate resources and in assessing performance. The Company’s five operating segments are the Mid-Atlantic, Southeast, Texas, Intermountain and Western divisions. The CODM reviews aggregate information to allocate resources and assess performance. Based on the CODM’s review, as well as the similar economic characteristics, nature of products, distribution methods and customers of the divisions, the Company has aggregated its operating segments into one reportable segment, “Geographic divisions.” In addition to the Company’s reportable segment, the Company’s consolidated results include “Other reconciling items.” Other reconciling items comprises the Company’s 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 periods indicated. Adjusted EBITDA is used as a performance metric by the CODM in determining how to allocate resources and assess performance. Year Ended December 31, 2018 December 31, 2018 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Total Assets Geographic divisions $ 3,682,448 $ 909,216 $ 63,381 $ 340,464 $ 1,405,940 Other reconciling items — — 2,007 (74,585 ) 170,171 $ 3,682,448 $ 909,216 $ 65,388 $ 1,576,111 Year Ended December 31, 2017 December 31, 2017 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Total Assets Geographic divisions $ 3,365,968 $ 795,515 $ 66,809 $ 250,061 $ 1,435,970 Other reconciling items — — 2,408 (50,058 ) 37,380 $ 3,365,968 $ 795,515 $ 69,217 $ 1,473,350 Year Ended December 31, 2016 December 31, 2016 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Total Assets Geographic divisions $ 3,093,743 $ 741,965 $ 66,592 $ 244,616 $ 1,345,475 Other reconciling items — — 2,088 (50,726 ) 49,539 $ 3,093,743 $ 741,965 $ 68,680 $ 1,395,014 Reconciliation to consolidated financial statements: Year Ended December 31, (in thousands) 2018 2017 2016 Income before income taxes $ 156,914 $ 81,827 $ 45,146 Interest expense 24,035 25,036 30,131 Interest income (758 ) — — Depreciation and amortization 65,388 69,217 68,680 Merger and integration costs 3,998 15,336 15,340 Non-cash stock compensation expense 11,315 6,769 7,252 Impairment of assets — 435 11,928 Inventory step-up charges — — 2,884 Loss on debt extinguishment — — 12,529 Sale of Coleman Floor (a) 656 — — Acquisition costs (b) 1,829 424 — Other items (c) 2,502 959 — Adjusted EBITDA of other reconciling items 74,585 50,058 50,726 Adjusted EBITDA of geographic divisions reportable segment $ 340,464 $ 250,061 $ 244,616 (a) For the year ended December 31, 2018, the amount represents the loss on sale of Coleman Floor as well as other expenses incurred related to the disposition. (b) For the years ended December 31, 2018 and 2017, the amounts represent expenses incurred related to the acquisitions of Barefoot and Company (“Barefoot”), Locust Lumber, Shone Lumber, TexPly and Code Plus. For the year ended December 31, 2018, the amount also includes costs incurred related to the conversion of the enterprise resource planning system utilized by Shone Lumber. (c) For the year ended December 31, 2018, the amount represents costs incurred in connection with the departure of the Company’s former chief executive officer and the search for and appointment of his permanent replacement. For the year ended December 31, 2017, the amount represents expense incurred related to pending litigation of $3.0 million and income related to the final settlement of insurance claims made by the Company for a fire at one of the Company’s facilities during 2015 of $2.0 million . The Company does not earn revenues or have long-lived assets located in foreign countries. In accordance with the enterprise-wide disclosure requirements of the accounting standard, the Company’s net sales from external customers by main product lines are as follows for the years ended December 31, 2018 , 2017 and 2016 . (in thousands) 2018 2017 2016 Structural components $ 622,105 $ 522,619 $ 461,761 Lumber & lumber sheet goods 1,286,481 1,114,219 938,563 Millwork, doors & windows 964,684 907,377 894,889 Other building products & services 809,178 821,753 798,530 Total net sales $ 3,682,448 $ 3,365,968 $ 3,093,743 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common 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 years ended December 31, 2018 , 2017 and 2016 are presented below: Year Ended December 31, (in thousands, except per share amounts) 2018 2017 2016 Income attributable to common stockholders $ 119,738 $ 57,425 $ 30,880 Weighted average common shares outstanding, basic 67,273 66,900 66,055 Effect of dilutive securities: Restricted stock units 324 235 129 Stock options 135 204 218 Restricted stock 16 65 207 Weighted average common shares outstanding, diluted 67,748 67,404 66,609 Basic income per common share $ 1.78 $ 0.86 $ 0.47 Diluted income per common share $ 1.77 $ 0.85 $ 0.46 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 December 31, 2018, the number of currently outstanding performance-based restricted stock units that are issued upon vesting could range from zero to a maximum of 0.6 million . Year Ended December 31, (in thousands) 2018 2017 2016 Restricted stock units 85 — 5 Stock options 349 — 469 Restricted stock — — — |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Unaudited Quarterly Financial Data | Unaudited Quarterly Financial Data The following tables summarize the consolidated quarterly results of operations for 2018 and 2017 : 2018 (in thousands, except per share amounts) First Second Third Fourth Net sales $ 834,202 $ 998,461 $ 990,264 $ 859,521 Gross profit 199,084 239,599 241,303 229,230 Net income 15,359 40,405 35,858 28,116 Basic income per share $ 0.23 $ 0.60 $ 0.53 $ 0.42 Diluted income per share $ 0.23 $ 0.60 $ 0.53 $ 0.41 2017 (in thousands, except per share amounts) First Second Third Fourth Net sales $ 757,700 $ 886,375 $ 881,012 $ 840,881 Gross profit 178,197 211,687 209,545 196,086 Net income 3,744 17,596 18,443 17,642 Basic income per share $ 0.06 $ 0.26 $ 0.28 $ 0.26 Diluted income per share $ 0.06 $ 0.26 $ 0.27 $ 0.26 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent Events On January 14, 2019 , the Company acquired substantially all of the assets and assumed certain liabilities of Barefoot, a supplier of windows, exterior doors, hardware, specialty products and installation services in the Charlotte, North Carolina metropolitan area. On February 8, 2019 , the Company acquired substantially all of the assets and assumed certain liabilities of Locust Lumber, a supplier of lumber products and building materials primarily to custom homebuilders and professional remodeling contractors in the Charlotte, North Carolina metropolitan area. These acquisitions enhance the Company’s value-added offerings and footprint in the Charlotte, North Carolina metropolitan area. The preliminary purchase price, in aggregate, for these acquisitions was $54.5 million , which includes an initial holdback of $2.5 million due to the sellers of Barefoot one year from the closing date. The holdback amount may be reduced under certain circumstances. The Company funded the transactions through available cash. For the year ended December 31, 2018, Barefoot and Locust Lumber generated net sales, in aggregate, of approximately $105 million . The results of operations of Barefoot and Locust Lumber will be included in the Company’s consolidated financial statements beginning on the respective acquisition dates. Due to the timing of the close of the acquisitions, the initial purchase accounting for the acquisitions is not complete and therefore, certain disclosures required by ASC 805 have not been included. The Company is in the process of performing its valuation of the acquired assets and liabilities and currently anticipates customer relationship intangible assets and goodwill, among other operating assets and liabilities, to be recognized as part of these acquisitions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared by management in conformity with U.S generally accepted accounting principles (“U.S. GAAP”). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include all accounts of BMC and its wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company evaluates these estimates and judgments on an ongoing basis and bases its estimates on historical experience, current conditions and various other assumptions that are believed to be reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. The significant estimates which could change by a material amount in the near term include revenue recognition for construction services, accounts receivable reserves, estimated losses on uncompleted contracts and changes in contract estimates, inventory reserves, supplier rebates, goodwill impairment, impairment of property and equipment, insurance reserves, warranties and share-based compensation. Actual results may differ materially from these estimates under different assumptions or conditions. |
Business and credit concentrations | Business and credit concentrations The Company maintains cash at financial institutions in excess of federally insured limits. Accounts receivable potentially expose the Company to concentrations of credit risk. Mitigating this credit risk is collateral underlying certain accounts receivable (perfected liens or lien rights) as well as the Company’s analysis of a customer’s credit history prior to extending credit. Concentrations of credit risk with respect to accounts receivable are limited due to the Company’s large number of customers and their dispersion across various regions of the United States. At December 31, 2018 and 2017 , no customer represented more than 10% of accounts receivable. For the years ended December 31, 2018 , 2017 and 2016 , no customer accounted for more than 10% of revenue. The Company’s future results could be adversely affected by a number of factors including competitive pressure on sales and pricing, weather conditions, consumer spending and debt levels, interest rates, existing residential home sales and new home construction, lumber prices and product mix. |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents are highly liquid investments that are readily convertible to known amounts of cash and have a maturity of three months or less from the time of purchase. As of December 31, 2018 and 2017 , the Company had cash equivalents of $146.1 million and $0 , respectively. Cash equivalents are valued at amortized cost, which approximates fair value due to the short-term maturity of these instruments, and was classified as a Level 1 or Level 2 measurement in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures (“ASC 820”). Book overdrafts occur when purchases on corporate purchasing cards and checks written exceed available bank balances at a specific bank, despite there being cash at the Company’s other financial institutions. For accounting purposes, the Company reclassifies these book overdrafts to accounts payable on the consolidated balance sheets. Book overdrafts included in accounts payable were $0.1 million at December 31, 2018 and 2017 . |
Fair value of financial instruments | Fair value of financial instruments ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 Inputs are unobservable inputs which reflect the reporting entity ’ s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument is categorized based upon the lowest level of input that is significant to the fair value calculation. |
Accounts receivable | Accounts receivable Accounts receivable result from the extending of credit to trade customers for the purchase of goods and services. The terms generally provide for payment within 30 days of being invoiced. On occasion, when necessary to compete in certain circumstances, the Company will sell product under extended payment terms. Accounts receivable are stated at estimated net realizable value. The allowance for doubtful accounts is based on an assessment of individual past due accounts, historical write-off experience, accounts receivable aging, customer disputes and the business environment. Account balances are charged off when the potential for recovery is considered remote. The Company grants trade discounts on a percentage basis. The Company records an allowance against accounts receivable for the amount of discounts it estimates will be taken by customers. The discounts are recorded as a reduction to revenue when products are sold. |
Consideration received from suppliers | Consideration received from suppliers The Company enters into agreements with many of its suppliers providing for inventory purchase rebates (“supplier rebates”) upon achievement of specified volume purchasing levels. Supplier rebates are accrued as part of cost of goods sold based on progress towards earning the supplier rebates, taking into consideration cumulative purchases of inventory to date and projected purchases through the end of the year. The Company estimates the rebates applicable to inventory on-hand at each period end based on the estimated percentage of supplier rebates to be earned. The Company also receives consideration from suppliers to promote their products (“marketing and advertising allowances”), which are accrued as part of cost of goods sold or selling, general and administrative expenses, depending on the nature of the allowance. Total rebates and marketing and advertising allowances receivable at December 31, 2018 and 2017 were $18.0 million and $23.3 million , respectively, included in prepaid expenses and other current assets. |
Revenue recognition | Revenue recognition A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in Accounting Standards Update 2014-09, Revenue from Contracts with Customers, as amended (“Topic 606”). The Company’s building products contracts typically contain a promise to supply multiple distinct products and thus, they generally contain multiple performance obligations under Topic 606. Depending on the nature of the promises within the Company’s construction services contracts and whether they are distinct under Topic 606, there may be a single performance obligation or multiple performance obligations. For contracts with multiple performance obligations, the contract’s transaction price is allocated to each distinct performance obligation based on the standalone selling price of each distinct good or service, which is generally determined based on the prices charged to customers. The Company recognizes revenue for its building products contracts when control of the promised goods (the performance obligations) is transferred to the Company’s customers. This generally occurs at a point in time when the products are delivered and the customer obtains physical possession, legal title and the risks and rewards of ownership. However, for certain product offerings, products are customized to customer specifications and the customer benefits from the Company’s performance over time as deliveries are made. As such, the Company has determined that an output method based on units delivered best depicts the transfer of control to the customer. The Company generally recognizes revenue for its construction services contracts over time using cost based input methods. Periodic estimates of progress towards completion are made based on either a comparison of labor costs incurred to date with total estimated contract labor costs or total costs incurred to date with total estimated contract costs. Incurred costs represent work performed, which correspond and best depict transfer of control to the customer. Contract revenues and contract costs to be recognized are dependent on the accuracy of estimates, including quantities of materials, labor productivity and other cost estimates. Historically, the Company has made reasonable estimates of the extent of progress towards completion and contract completion costs. Due to uncertainties inherent in the estimation process, it is possible that actual completion costs may vary from estimates. Revenue recognized for performance obligations satisfied over time for the year ended December 31, 2018 represented approximately 26% of total revenues. Estimated losses on uncompleted contracts and changes in contract estimates reflect the Company’s best estimate of probable losses of unbilled receivables, and are recognized in the period such revisions are known and can be reasonably estimated. These estimates are recognized in cost of sales. Estimated losses on uncompleted contracts and changes in contract estimates are established by assessing estimated costs to complete, change orders and claims for uncompleted contracts. Assumptions for estimated costs to complete include material prices, labor costs, labor productivity and contract claims. Such estimates are inherently uncertain and it is possible that actual completion costs may vary from these estimates. All sales recognized are net of allowances for discounts and estimated returns, based on historical experience. Taxes assessed by governmental authorities that are directly imposed on the Company’s revenue-producing transactions are excluded from sales. The Company accounts for shipping and handling costs associated with its contracts as a fulfillment cost and expenses these as incurred within selling, general and administrative expenses. |
Contract balances | Contract balances The timing of revenue recognition, invoicing and cash collection affects receivables, contract assets and contract liabilities on the Company’s consolidated balance sheets. For building products contracts that contain performance obligations satisfied at a point in time, the Company recognizes revenue upon satisfaction of the performance obligation and then bills the customer, resulting in a receivable. For building products contracts that contain performance obligations satisfied over time, the Company recognizes revenue as the performance obligation is satisfied, but prior to billing, resulting in an unbilled receivable, as the Company has an unconditional right to payment. For the Company’s construction services contracts, amounts are generally billed as work progresses in accordance with agreed-upon contractual terms. Revenue is also recognized over time as the performance obligations are satisfied, which can result in contract assets and liabilities, on a contract-by-contract basis, due to timing differences between billing and revenue recognition. Contract assets include unbilled amounts when the revenue recognized exceeds the amount billed to the customer. Conversely, contract liabilities include amounts that have been billed to the customer in excess of the revenue recognized. At times, the Company will have a right to payment from previous performance that is conditional on something other than passage of time, such as retainage, which creates a contract asset. Conversely, the Company may receive advances from customers prior to the Company’s performance, which creates a contract liability. Contract assets are reclassified to a receivable when the right to consideration becomes unconditional. The Company’s terms generally provide for payment within 30 days of being invoiced. On occasion, when necessary to compete in certain circumstances, the Company will offer extended payment terms, which do not exceed one year. |
Shipping and handling costs | Shipping and handling costs The Company includes shipping and handling costs in selling, general and administrative expenses and depreciation expense on the consolidated statements of operations. Shipping and handling costs included in selling, general and administrative expenses were $189.6 million , $172.2 million and $152.7 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Property and equipment | Property and equipment Property and equipment are stated at cost. Expenditures for renewals and betterments, which extend the useful lives of assets, are capitalized while maintenance and repairs are charged to expense as incurred. Property and equipment obtained through acquisition are stated at estimated fair market value as of the acquisition date, and are depreciated over their estimated remaining useful lives, which may differ from the Company’s stated policies for certain assets. Gains and losses related to the sale of property and equipment are recorded as selling, general and administrative expenses. Property and equipment are depreciated using the straight-line method and are generally depreciated over the following estimated service lives: Buildings and improvements 3–30 years Leasehold improvements Lesser of life of the asset or remaining lease term, and not to exceed 15 years Furniture, fixtures and equipment 2–10 years Vehicles 4–10 years Property and equipment that is expected to be sold within the next twelve months, is actively marketed in its current condition for a price that is reasonable in comparison to its estimated fair value and meets other relevant held-for-sale criteria are classified as assets held for sale. Assets held for sale are measured at the lower of carrying amount or fair value less costs to sell and are no longer depreciated. An impairment for assets held for sale is recognized if the carrying amount is not recoverable. Assets held for sale were not presented separately and were classified as other long-term assets in the consolidated balance sheets and were $1.3 million and $2.3 million at December 31, 2018 and 2017 , respectively. |
Goodwill and other intangible assets | Goodwill and other intangible assets At least annually, or more frequently as changes in circumstances indicate, the Company tests goodwill for impairment. To the extent that the carrying value of the net assets of any of the reporting units having goodwill is greater than their estimated fair value, the Company may be required to record impairment charges. The Company’s five operating segments, which have been determined to be the Company’s reporting units, are the Mid-Atlantic, Southeast, Texas, Intermountain and Western divisions. The chief operating decision maker (“CODM”) reviews aggregate information to allocate resources and assess performance. Based on the CODM’s review, as well as the similar economic characteristics, nature of products, distribution methods and customers of the divisions, the Company has aggregated its operating segments into one reportable segment. The Company is required to make certain assumptions and estimates regarding the fair value of the reporting units containing goodwill when assessing for impairment. Changes in the fact patterns underlying such assumptions and estimates could ultimately result in the recognition of additional impairment losses. The Company completes its annual impairment assessment during the third quarter of each year. The Company did not recognize any impairment for the years ended December 31, 2018 , 2017 and 2016 . The Company may consider qualitative factors as part of its annual impairment assessment to determine whether it is more likely than not that a reporting unit’s carrying value exceeds its fair value. If the Company’s qualitative assessment indicates that goodwill impairment is more likely than not, the Company performs the two-step impairment test. Alternatively, the Company may bypass the qualitative test and initiate goodwill impairment testing with the first step of the two-step goodwill impairment test. During the first step of the goodwill impairment test, the fair value of the reporting unit is compared to its carrying value, including goodwill. The Company may derive a reporting unit’s fair value through a combination of the market approach (a guideline transaction method) and the income approach. The income approach uses a reporting unit’s projection of estimated future cash flows that is discounted at a market derived weighted average cost of capital. The projection uses management’s best estimates of economic and market conditions over the projected period including growth rates in sales, costs, estimates of future expected changes in operating margins and cash expenditures. If the fair value of a reporting unit exceeds its carrying value, then the Company concludes no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, the Company performs the second step of the goodwill impairment test to measure possible goodwill impairment loss. During the second step, the implied fair value of the reporting unit’s goodwill is compared to the carrying value of its goodwill. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, the Company would recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value of the reporting unit’s goodwill. Acquired intangible assets other than goodwill are amortized over their weighted average amortization period unless they are determined to be indefinite. Acquired intangible assets are carried at cost, less accumulated amortization. For intangible assets purchased in a business combination, the estimated fair values of the assets received are used to establish the carrying value. The fair value of acquired intangible assets is determined using common valuation techniques, and the Company employs assumptions developed using the perspective of a market participant. |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, such as property, equipment and purchased intangible assets subject to amortization, are reviewed for impairment whenever facts and circumstances indicate that the carrying amount of an asset may not be recoverable. For impairment testing of long-lived assets, the Company identifies asset groups at the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. |
Treasury stock | Treasury stock During the year ended December 31, 2018, the Company’s board of directors authorized a $75.0 million share repurchase program. Repurchases may be made at management’s discretion from time to time on the open market, subject to applicable laws, or through privately negotiated transactions. The repurchase program will expire on November 20, 2019 or may be suspended or discontinued at any time. During the year ended December 31, 2018, utilizing cash from operations, the Company repurchased 0.2 million shares at a weighted average price of $15.91 per share for a total cost of $2.9 million . These repurchased shares are available for future issuance and are reflected as treasury stock, at cost, on the consolidated balance sheet as of December 31, 2018 . As of December 31, 2018, the Company had approximately $72.1 million of capacity remaining under the current share repurchase authorization. Subsequent to December 31, 2018, the Company repurchased 0.7 million shares at a weighted average price of $16.82 per share for a total cost of $11.5 million . Employees have the option to surrender shares to the Company to satisfy their tax withholding obligations in connection with the vesting of restricted stock and restricted stock unit awards. These surrendered shares are reflected as treasury stock, at cost, on the consolidated balance sheet as of December 31, 2018 and 2017 . |
Merger and integration costs | Merger and integration costs Merger and integration costs related to the ongoing integration of Building Materials Holding Corporation (“BMHC”) and Stock Building Supply Holdings, Inc. (“SBS”), as a result of the 2015 merger transaction, consist primarily of severance, rebranding, system integration costs and professional fees. |
Income taxes | Income taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires an asset and liability approach for measuring deferred taxes based on temporary differences between the financial statement and tax basis of assets and liabilities existing at each balance sheet date using enacted tax rates for years in which taxes are expected to be paid or recovered. The Company evaluates its deferred tax assets on a quarterly basis to determine whether a valuation allowance is required. In accordance with ASC 740, the Company assesses whether a valuation allowance should be established based on its determination of whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends primarily on: (i) the Company’s ability to carry back net operating losses to tax years where it has previously paid income taxes based on applicable federal law; (ii) the timing of the reversal of deferred tax liabilities and (iii) the Company’s ability to generate future taxable income during the periods in which the related deferred tax assets are deductible. The assessment of a valuation allowance includes giving appropriate consideration to all positive and negative evidence related to the realization of the deferred tax asset. This assessment considers, among other things, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with operating loss and tax credit carryforwards not expiring unused and tax planning alternatives. Significant judgment is required in determining the future tax consequences of events that have been recognized in the Company’s consolidated financial statements and/or tax returns. Actual outcomes of these future tax consequences could differ materially from the outcomes that the Company currently anticipates. ASC 740 defines the methodology for recognizing the benefits of uncertain tax return positions as well as guidance regarding the measurement of the resulting tax benefits. These provisions require an enterprise to recognize the financial statement effects of a tax position when it is more likely than not, which is defined as a likelihood of more than 50%, based on technical merits, that the position will be sustained upon examination. The evaluation of whether a tax position meets the more likely than not recognition threshold requires a substantial degree of judgment by management based on the individual facts and circumstances. Actual results could differ from estimates. The Company had no material uncertain tax positions as of December 31, 2018. The Company’s policy is to recognize interest and penalties related to income tax liabilities and unrecognized tax benefits in income tax expense. |
Casualty and health insurance | Casualty and health insurance The Company carries insurance for general liability, auto liability and workers’ compensation exposures subject to deductibles or self-insured retentions it believes to be reasonable under the circumstances, and the Company self-insures for employee and eligible dependent health care claims, with insurance purchased from independent carriers to cover individual claims in excess of the self-insured limits. The expected liability for unpaid claims, including incurred but not reported losses, is reflected on the consolidated balance sheets as a liability with current and long-term components. The amount recoverable from insurance providers is reflected on the consolidated balance sheets in prepaid expenses and other current assets. Provisions for losses are developed from actuarial valuations that rely upon the Company’s past claims experience, which considers both the frequency and settlement of claims. The casualty and health insurance liabilities are recorded at their undiscounted value. In January 2015, the Company entered into a retroactive reinsurance contract to transfer the risk of loss of certain insurance reserves for workers’ compensation claims incurred from 2006 to 2011 to a reinsurer. Pursuant to the reinsurance contract, the reinsurer is obligated to pay an aggregate maximum of $17.5 million for these claims with any excess borne by the Company. The Company maintains the insurance reserves related to these claims as a liability on its consolidated balance sheet with an offsetting reinsurance receivable, which includes current and long-term components. As of December 31, 2018 and 2017 , the carrying value of the insurance reserves related to these claims and the offsetting reinsurance receivable was $3.7 million and $4.5 million , respectively. Changes in these claims are recorded as an increase or decrease in the insurance reserves and corresponding increase or decrease in the reinsurance receivable. Additionally, the Company monitors the financial condition of the reinsurer to minimize its exposure to significant losses from reinsurer insolvency. |
Retirement savings program | Retirement savings program The Company sponsors a defined contribution retirement savings plan. The Company has recorded expense of $5.9 million , $5.2 million and $4.6 million related to employer contributions for the years ended December 31, 2018 , 2017 and 2016 , respectively. These expenses are recorded to either selling, general and administrative expenses or cost of sales on the consolidated statements of operations, depending on the classification of the employee. |
Lease obligations | Lease obligations The Company recognizes lease obligations with fixed escalations of rental payments on a straight-line basis over the lease term, with the amount of rental expense in excess of lease payments recorded as a deferred rent liability. Lease incentives received are also recorded as a deferred rent liability and are amortized as reductions to rent expense over the lease term. As of December 31, 2018 and 2017 , the Company had a deferred rent liability of $5.0 million and $4.2 million , respectively, included in accrued expenses and other liabilities and other long-term liabilities on the consolidated balance sheets. |
Advertising and promotion | Advertising and promotion Costs associated with advertising and promoting products and services are expensed in the period incurred. Cooperative advertising allowances that are reimbursement of specific, incremental and identifiable costs incurred to promote vendors’ products are recorded as an offset against advertising expenses in selling, general and administrative expenses. If those conditions are not met, the cooperative advertising allowances are recorded as a reduction in inventory and a subsequent reduction in cost of goods sold when the related product is sold. For the years ended December 31, 2018 , 2017 and 2016 , the Company recorded $4.9 million , $5.8 million and $3.7 million , respectively, of advertising and promotion expenses, net of cooperative advertising allowances, in selling, general and administrative expenses. |
Stock-based compensation | Stock-based compensation In accordance with the requirements of ASC 718, Compensation—Stock Compensation (“ASC 718”), the Company measures and recognizes compensation expense for all share-based payment awards made to employees using a fair value based pricing model. The compensation expense is recognized over the requisite service period, using graded vesting. |
Debt issuance costs | Debt issuance costs Costs incurred in connection with the Company’s revolving line of credit and senior secured notes are capitalized and amortized over the term of the applicable agreement. Total debt issuance costs, net of accumulated amortization, were $6.4 million and $8.1 million as of December 31, 2018 and 2017 , respectively. Debt issuance costs related to the Company’s revolving line of credit and senior secured notes are included in other long-term assets and long-term debt, respectively, on the consolidated balance sheets. Amortization of debt issuance costs for the years ended December 31, 2018 , 2017 and 2016 was $1.7 million , $1.7 million and $3.1 million , respectively, and is included in interest expense on the consolidated statements of operations. |
Derivatives | Derivatives The Company will occasionally enter into derivative instruments to offset existing or expected risks associated with fluctuations in commodity prices. The Company does not enter into derivative instruments for speculative or trading purposes. The Company recognizes all derivative instruments as assets or liabilities in the Company’s balance sheets at fair value. Changes in the fair value of derivative instruments that are not designated as hedges or that do not meet the hedge accounting criteria are reported in earnings. The Company elected not to designate any new derivative instruments as hedges for the years ended December 31, 2018 , 2017 or 2016 , and therefore, all changes in the fair market value of the derivative instruments have been reported in cost of goods sold on the consolidated statements of operations. |
Warranty expense | Warranty expense The Company has warranty obligations with respect to most manufactured products. As of December 31, 2018 and 2017 , the Company had warranty liabilities of $2.9 million and $2.5 million , respectively, included in accrued expenses and other liabilities on the consolidated balance sheets. |
Comprehensive income | Comprehensive income Comprehensive income is equal to the net income for all periods presented. |
Statement of cash flows | Statement of cash flows Proceeds from revolving line of credit and Repayments of proceeds from revolving line of credit as presented on the Consolidated Statements of Cash Flows includes all cash activities and transactions between the Company and its associated lenders in relation to the revolving line of credit, excluding interest and fees, and is specifically inclusive of operating cash receipts which are automatically applied to the revolving line of credit pursuant to a cash sweep agreement. See Note 9 for further details on the Company’s revolving line of credit. |
Recently issued accounting pronouncements | Recently adopted accounting pronouncements In May 2014, the FASB issued 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. The Company adopted Topic 606 on January 1, 2018 using the modified retrospective transition method. See Note 11 for further details. 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. Retrospective application is required. ASU 2016-15 became effective for the Company’s annual and interim periods beginning on January 1, 2018. The adoption of the standard did not have a material impact on the Company’s consolidated 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. Retrospective application is required. ASU 2016-18 became effective for the Company’s annual and interim periods beginning on January 1, 2018. The adoption of the standard did not have a material impact on the Company’s consolidated 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. Prospective application is required. ASU 2017-01 became effective for the Company’s annual and interim periods beginning on January 1, 2018. The adoption of the standard did not have a material impact on the Company’s consolidated 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 became effective for the Company’s annual and interim periods beginning on January 1, 2018. The adoption of the standard did not have a material impact on the Company’s consolidated 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 to be applied prospectively to an award modified on or after the adoption date. ASU 2017-09 became effective for the Company’s annual and interim periods beginning on January 1, 2018. The adoption of the standard did not have a material impact on the Company’s consolidated financial statements. In March 2018, the FASB issued Accounting Standards Update 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”). ASU 2018-05 adds paragraphs to the ASC pursuant to SEC Staff Accounting Bulletin No. 118, which addresses the application of U.S. GAAP in situations when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act (the “2017 Tax Act”). ASU 2018-05 provides entities with a one year measurement period from the December 22, 2017 enactment date in order to complete the accounting. The Company recognized a provisional net tax benefit of $3.6 million related to the impact of the 2017 Tax Act during the year ended December 31, 2017. In the fourth quarter of 2018, the Company completed its accounting for the income tax effects of the 2017 Tax Act within the measurement period as provided under ASU 2018-05, which resulted in recognizing an additional tax benefit of $0.5 million for the year ended December 31, 2018. Recently issued accounting pronouncements not yet adopted In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases, and issued subsequent amendments to the initial guidance to provide additional clarification on specific topics (“ASU 2016-02”). ASU 2016-02 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 statement of operations. The Company plans to adopt the standard on January 1, 2019, utilizing the transition option provided by Accounting Standards Update 2018-11, Leases (Topic 842): Targeted Improvements, which the FASB issued in July 2018 and allows the Company to apply the guidance in ASU 2016-02 as of the adoption date, while applying the legacy guidance in ASC 840, Leases, including its disclosure requirements, in the comparative periods. As a lessee, certain of the Company’s 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, the Company will be required to record substantially all leases on the balance sheet as a ROU asset and a lease liability. The Company expects to utilize the package of practical expedients permitted by the transition guidance in ASU 2016-02, which allows the Company to carry forward its identification of contracts that are or contain leases, its historical lease classification and its initial direct costs for existing leases. The Company currently expects to recognize lease liabilities for its operating leases totaling between $110.0 million and $125.0 million upon adoption, of which between $22.0 million and $37.0 million will be classified as a current liability. The initial ROU assets recognized will be equal to the initial operating lease liabilities, adjusted for the balance on adoption date of prepaid and accrued rent, lease incentives, unamortized initial direct costs and unamortized assets and liabilities related to favorable and unfavorable lease terms. The Company currently expects to recognize ROU assets totaling between $105.0 million and $120.0 million upon adoption. The Company does not expect adoption of the standard to have a material impact on the Company’s historical capital leases, which will be presented as finance leases under ASU 2016-02. See Note 13 for further information on the Company’s leases. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. ASU 2016-13 is effective for the Company’s annual and interim periods beginning on January 1, 2020, with early adoption permitted beginning January 1, 2019. Modified retrospective application is required, with certain exceptions. The Company expects to adopt the standard on January 1, 2020 and continues to evaluate the impact of the standard on its consolidated 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 the Company’s consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, and issued subsequent amendments to the initial guidance to provide additional clarification on specific topics (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements by removing, modifying and adding certain disclosure requirements in ASC 820. ASU 2018-13 is effective for the Company’s annual and interim periods beginning on January 1, 2020, with early adoption permitted. Certain disclosures in ASU 2018-13 are required to be applied prospectively, while others require retrospective application. The Company is evaluating the impact of the standard on its consolidated financial statements. |
Acquisitions and Disposition Ac
Acquisitions and Disposition Acquisitions and Disposition (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions and Disposition 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. The Company accounts for all acquisitions using the acquisition method of accounting under ASC 805, Business Combinations (“ASC 805”), whereby the results of operations of the acquired company are included in the Company’s consolidated financial statements beginning on the acquisition date. |
Inventories Inventories (Polici
Inventories Inventories (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist principally of materials purchased for resale, including lumber, sheet goods, millwork, doors and windows, as well as certain manufactured products and are valued at the lower of cost or net realizable value, with cost being measured using a weighted average cost approach, which approximates the first-in, first-out approach. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Common Share (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Estimated useful lives | Property and equipment are depreciated using the straight-line method and are generally depreciated over the following estimated service lives: Buildings and improvements 3–30 years Leasehold improvements Lesser of life of the asset or remaining lease term, and not to exceed 15 years Furniture, fixtures and equipment 2–10 years Vehicles 4–10 years |
Accounts Receivable Accounts Re
Accounts Receivable Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Accounts receivable consist of the following at December 31, 2018 and 2017 : (in thousands) 2018 2017 Trade receivables $ 305,363 $ 333,954 Allowance for doubtful accounts (4,904 ) (4,771 ) Sales returns allowance (a) — (4,127 ) Other allowances (2,019 ) (2,164 ) $ 298,440 $ 322,892 (a) Effective January 1, 2018, as part of the Company’s adoption of Topic 606, the Company has recorded a liability for estimated returns of inventory as a refund liability within accrued expenses and other liabilities. These balances were previously presented as an allowance within accounts receivable. See Note 11 for further details. |
Changes in allowance for doubtful accounts | The following table shows the changes in the allowance for doubtful accounts: (in thousands) 2018 2017 2016 Balance at January 1 $ 4,771 $ 4,162 $ 2,357 Write-offs (4,676 ) (3,665 ) (2,186 ) Recoveries 1,460 960 2,587 Increase in allowance 4,906 3,314 1,404 Other (a) (1,557 ) — — Balance at December 31 $ 4,904 $ 4,771 $ 4,162 (a) During the year ended December 31, 2018, the Company entered into a promissory note with one of its customers resulting in a note receivable of $2.6 million and corresponding allowance of $1.3 million , included in other long-term assets. These amounts were previously included in trade receivables and allowance for doubtful accounts, respectively, within accounts receivable. Additionally, the allowance for doubtful accounts balance declined by $0.3 million during the year ended December 31, 2018 in connection with the sale of accounts receivable in the Coleman Floor disposition. See Note 3 for further details. |
Property and Equipment Property
Property and Equipment Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment consists of the following at December 31, 2018 and 2017 : (in thousands) 2018 2017 Land $ 48,027 $ 51,009 Buildings and improvements 106,072 104,752 Leasehold improvements 22,758 19,750 Furniture, fixtures and equipment 186,017 161,014 Vehicles 134,470 120,855 Construction-in-progress 11,695 14,519 509,039 471,899 Less: Accumulated depreciation (214,712 ) (176,079 ) $ 294,327 $ 295,820 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in goodwill | The following table details the goodwill activity for the years ended December 31, 2018 and 2017 : (in thousands) December 31, 2016 $ 254,832 Acquisition of Code Plus 3,402 Acquisition of TexPly 3,558 December 31, 2017 261,792 Acquisition of Shone Lumber 2,526 Disposition of Coleman Floor (1,321 ) December 31, 2018 $ 262,997 |
Change in intangible assets | The following table provides the gross carrying amount and related accumulated amortization of definite-lived intangible assets. Trademarks Customer Relationships Non-Compete Agreements Gross Gross Gross Carrying Accumulated Carrying Accumulated Carrying Accumulated (in thousands) Amount Amortization Amount Amortization Amount Amortization Total December 31, 2015 $ 5,350 $ (408 ) $ 179,700 $ (2,664 ) $ 6,512 $ (554 ) $ 187,936 Amortization — (2,140 ) — (12,845 ) — (5,736 ) (20,721 ) December 31, 2016 5,350 (2,548 ) 179,700 (15,509 ) 6,512 (6,290 ) 167,215 Acquisition of Code Plus — — 2,300 — 500 — 2,800 Acquisition of TexPly — — 13,600 — — — 13,600 Amortization — (2,010 ) — (13,785 ) — (208 ) (16,003 ) December 31, 2017 5,350 (4,558 ) 195,600 (29,294 ) 7,012 (6,498 ) 167,612 Acquisition of Shone Lumber — — 7,000 — — — 7,000 Disposition of Coleman Floor (1,000 ) 291 — — — — (709 ) Amortization — (83 ) — (14,743 ) — (189 ) (15,015 ) December 31, 2108 $ 4,350 $ (4,350 ) $ 202,600 $ (44,037 ) $ 7,012 $ (6,687 ) $ 158,888 |
Intangible assets amortization schedule | Based upon current assumptions, the Company expects that its definite-lived intangible assets will be amortized according to the following schedule: (in thousands) 2019 $ 14,972 2020 14,972 2021 14,972 2022 14,897 2023 14,872 Thereafter 84,203 $ 158,888 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities and other liabilities | Accrued expenses and other liabilities consists of the following at December 31, 2018 and 2017 . Certain prior year amounts have been reclassified to conform to the current year presentation. (in thousands) 2018 2017 Accrued payroll and other employee related expenses $ 62,518 $ 41,798 Accrued taxes 21,028 20,741 Accrued rebates payable 5,725 4,653 Refund liability for estimated inventory returns (a) 3,850 — Pending litigation accrual 2,950 2,950 Accrued warranty reserve 2,930 2,467 Acquisition holdback and earnout liabilities 2,136 370 Accrued professional fees 1,156 715 Accrued credit card fees 1,110 1,127 Current portion deferred rent 694 818 Unfavorable leases 416 520 Advances from customers (a) — 11,664 Other 5,763 8,439 $ 110,276 $ 96,262 (a) Effective January 1, 2018, as part of the Company’s adoption of Topic 606, the Company has recorded a liability for estimated returns of inventory as a refund liability within accrued expenses and other liabilities. These balances were previously presented as an allowance within accounts receivable. Additionally, the Company has presented advances from customers, which were historically presented within accrued expenses and other liabilities, as a contract liability. See Note 11 for further details |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Long-term debt at December 31, 2018 and 2017 consists of the following: (in thousands) December 31, 2018 December 31, 2017 Senior secured notes, due 2024 $ 350,000 $ 350,000 Revolving credit agreement — 4,462 Other — 336 350,000 354,798 Unamortized debt issuance costs related to senior secured notes (4,803 ) (5,639 ) 345,197 349,159 Less: Current portion of long-term debt — 100 $ 345,197 $ 349,059 |
Schedule of maturities of long-term debt | Scheduled maturities of long-term debt were as follows: (in thousands) 2019 $ — 2020 — 2021 — 2022 — 2023 — Thereafter 350,000 $ 350,000 |
Other Long-term Liabilities Oth
Other Long-term Liabilities Other Long-term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of other long-term liabilities | Other long-term liabilities consists of the following at December 31, 2018 and 2017 : (in thousands) 2018 2017 Long-term deferred rent $ 4,347 $ 3,428 Unfavorable leases 1,843 2,298 Other 737 1,313 $ 6,927 $ 7,039 |
Revenue Revenue (Tables)
Revenue Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Impact of adoption of topic 606 | The following table reflects the cumulative impact of adoption of Topic 606. As the cumulative impact of adopting Topic 606 on the Company’s historical results of operations was less than $0.1 million , the Company did not record an adjustment to opening retained earnings as of January 1, 2018. (in thousands) December 31, 2017 Adoption of Topic 606 January 1, 2018 Accounts receivable, net of allowances $ 322,892 $ (8,884 ) $ 314,008 Inventories, net 309,060 (3,128 ) 305,932 Contract assets — 38,557 38,557 Costs in excess of billings on uncompleted contracts 28,738 (28,738 ) — Prepaid expenses and other current assets 57,949 3,128 61,077 Total assets 1,473,350 935 1,474,285 Accrued expenses and other liabilities 96,262 (6,967 ) 89,295 Contract liabilities — 26,330 26,330 Billings in excess of costs on uncompleted contracts 18,428 (18,428 ) — Total liabilities 726,451 935 727,386 Total liabilities and stockholders’ equity $ 1,473,350 $ 935 $ 1,474,285 The following table reflects the impact of adoption of Topic 606 on the Company’s financial position as of December 31, 2018. (in thousands) Balances without Adoption of Topic 606 Adjustments As Reported Accounts receivable, net of allowances $ 306,600 $ (8,160 ) $ 298,440 Inventories, net 312,055 (2,776 ) 309,279 Contract assets — 32,348 32,348 Costs in excess of billings on uncompleted contracts 23,769 (23,769 ) — Prepaid expenses and other current assets 53,473 2,776 56,249 Total assets 1,575,692 419 1,576,111 Accrued expenses and other liabilities 120,118 (9,842 ) 110,276 Contract liabilities — 34,888 34,888 Billings in excess of costs on uncompleted contracts 24,627 (24,627 ) — Total liabilities 701,033 419 701,452 Total liabilities and stockholders’ equity $ 1,575,692 $ 419 $ 1,576,111 |
Disaggregation of revenue | The following table reflects the Company’s estimate of net sales by each customer type for the years ended December 31, 2018, 2017 and 2016. Certain previously reported amounts for interim periods during the year ended December 31, 2018 and for the year ended December 31, 2017 were revised in the table below. The revisions were not material to the previously issued financial statements. Year Ended December 31, (in thousands) 2018 2017 2016 Single-family homebuilders $ 2,814,100 $ 2,526,837 $ 2,262,124 Remodeling contractors 427,346 380,460 371,018 Multi-family, commercial & other contractors 441,002 458,671 460,601 Total net sales $ 3,682,448 $ 3,365,968 $ 3,093,743 |
Contract assets and liabilities | The following table reflects the Company’s contract balances as of December 31, 2018 and January 1, 2018, the date that the Company adopted Topic 606: (in thousands) December 31, 2018 January 1, 2018 Change Receivables, including unbilled receivables presented in prepaid expenses and other current assets $ 306,370 $ 321,418 $ (15,048 ) Contract assets 32,348 38,557 (6,209 ) Contract liabilities $ 34,888 $ 26,330 $ 8,558 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense (benefit) | The components of income tax expense for the years ended December, 31 2018 , 2017 and 2016 are as follows: (in thousands) 2018 2017 2016 Current Federal $ 32,042 $ 20,215 $ 16,713 State 3,868 1,869 1,124 35,910 22,084 17,837 Deferred Federal 160 1,797 (3,049 ) State 1,106 521 (522 ) 1,266 2,318 (3,571 ) $ 37,176 $ 24,402 $ 14,266 |
Effective income tax rate reconciliation | A reconciliation of differences between the statutory U.S. federal income tax rate and the Company’s effective tax rate from continuing operations for the years ended December 31, 2018 , 2017 and 2016 follows: 2018 2017 2016 Federal statutory rate 21.0 % 35.0 % 35.0 % State taxes, net of federal tax 2.6 2.9 2.7 Nondeductible capitalized transaction costs — 0.2 1.4 Nondeductible compensation expense 0.2 0.2 0.5 Nondeductible (permanent) items 0.2 0.9 1.0 IRC Section 199 manufacturing deduction 0.1 (2.5 ) (3.5 ) Changes in tax rates, including 2017 Tax Act (0.2 ) (4.4 ) 1.6 Changes related to IRC section 382 limitations — — (3.9 ) Excess windfall benefit of stock compensation (0.2 ) (2.3 ) (3.7 ) Other items — (0.2 ) 0.5 Effective tax rate 23.7 % 29.8 % 31.6 % |
Components of deferred tax assets and liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows at December 31, 2018 and 2017 : (in thousands) 2018 2017 Deferred tax assets related to: Accounts receivable $ 2,278 $ 2,061 Inventory 2,631 1,931 Accrued compensation 6,783 2,981 Insurance reserves 11,545 10,778 Stock-based compensation 3,399 2,388 Restructuring reserves 325 365 Other accrued liabilities 1,514 1,149 Federal net operating loss carryforward 16,349 17,372 State net operating loss carryforward 3,882 5,559 Other 1,915 1,633 50,621 46,217 Valuation allowance (145 ) (145 ) Total deferred tax assets 50,476 46,072 Deferred tax liabilities related to: Goodwill and intangibles (21,946 ) (21,030 ) Property and equipment (29,684 ) (25,440 ) Other assets (1,880 ) (1,370 ) Total deferred tax liabilities (53,510 ) (47,840 ) Net deferred tax liability $ (3,034 ) $ (1,768 ) |
Changes in valuation allowance | The following table shows the changes in the amount of the Company’s valuation allowance: (in thousands) 2018 2017 2016 Balance at January 1, $ 145 $ 125 $ 126 Additions charged to expense — 20 — Additions charged to Goodwill/Purchase Accounting — — — Deductions - other — — (1 ) Balance at December 31, $ 145 $ 145 $ 125 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum capital lease payments as of December 31, 2018 are as follows: (in thousands) Capital Operating 2019 $ 7,245 $ 30,431 2020 5,599 24,210 2021 2,356 21,551 2022 873 17,908 2023 660 14,607 Thereafter — 34,279 16,733 $ 142,986 (a) Less: Amounts representing interest (1,227 ) Total obligation under capital leases 15,506 Less: Current portion of capital lease obligation (6,661 ) Long-term capital lease obligation $ 8,845 (a) Minimum operating lease payments have not been reduced by minimum sublease rentals of $0.1 million due in the future under noncancelable subleases. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of expenses related to share-based payments | The following table highlights stock based compensation for the years ended December 31, 2018 , 2017 and 2016 : (in thousands) 2018 2017 2016 Restricted stock units (a) $ 11,133 $ 6,006 $ 4,643 Restricted stock 100 436 1,559 Stock options 82 327 1,050 Stock based compensation $ 11,315 $ 6,769 $ 7,252 (a) Includes service-based and performance-based restricted stock units. |
Schedule of nonvested stock awards and restricted stock units awards | The following is a summary of restricted stock and restricted stock unit activity, excluding performance-based restricted stock units: Restricted Stock Restricted Stock Units Number of Shares Outstanding (in thousands) Weighted Average Grant Date Fair Value Number of Units Outstanding (in thousands) Weighted Average Grant Date Fair Value December 31, 2015 455 $ 13.51 282 $ 16.99 Granted — — 166 17.65 Vested (301 ) 11.95 (123 ) 16.86 Forfeited (37 ) 13.69 (27 ) 17.16 December 31, 2016 117 17.42 298 17.39 Granted — — 396 21.79 Vested (49 ) 16.25 (163 ) 17.49 Forfeited (8 ) 19.08 (21 ) 20.34 December 31, 2017 60 18.17 510 20.65 Granted — — 748 20.22 Vested (60 ) 18.17 (266 ) 20.64 Forfeited — — (88 ) 19.32 December 31, 2018 — $ — 904 $ 20.43 |
Schedule of performance-based restricted stock units | The following is a summary of the maximum number of performance-based restricted stock units which could be earned and related activity: Performance-Based Restricted Stock Units Number of Units Outstanding (in thousands) Weighted Average Grant Date Fair Value December 31, 2015 — $ — Granted (a) 206 16.35 Vested — — Forfeited — — December 31, 2016 206 16.35 Granted (a) 255 21.94 Vested — — Forfeited (8 ) 22.90 December 31, 2017 453 19.37 Granted (a) 474 19.64 Vested — — Forfeited (302 ) 17.76 December 31, 2018 625 $ 20.36 (a) Represents the maximum number of performance-based restricted stock units which could be earned. |
Schedule of stock options | The following is a summary of stock option award activity: Number of Options (in thousands) Weighted Average Exercise Price Contractual Term (in years) Intrinsic Value (in thousands) Outstanding at December 31, 2015 1,228 $ 14.17 Granted 3 17.04 Exercised (175 ) 7.90 Forfeited (10 ) 17.04 Expired (22 ) 17.53 Outstanding at December 31, 2016 1,024 15.15 Granted — — Exercised (260 ) 13.05 Forfeited (14 ) 17.04 Expired (45 ) 19.89 Outstanding at December 31, 2017 705 15.59 Granted — — Exercised (96 ) 14.01 Forfeited (6 ) 17.04 Expired (7 ) 16.37 Outstanding at December 31, 2018 596 $ 15.82 5.3 $ 982 Exercisable at December 31, 2018 596 $ 15.82 5.3 $ 982 Vested and expected to vest at December 31, 2018 596 $ 15.82 5.3 $ 982 |
Schedule of unrecognized compensation cost | The following table summarizes the Company’s total unrecognized compensation cost related to equity based compensation as of December 31, 2018 : (in thousands, except period data) Unrecognized Compensation Cost Weighted Average Remaining Period of Expense Recognition (in years) Restricted stock units $ 8,693 1.5 Performance-based restricted stock units 5,140 2.4 $ 13,833 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 periods indicated. Adjusted EBITDA is used as a performance metric by the CODM in determining how to allocate resources and assess performance. Year Ended December 31, 2018 December 31, 2018 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Total Assets Geographic divisions $ 3,682,448 $ 909,216 $ 63,381 $ 340,464 $ 1,405,940 Other reconciling items — — 2,007 (74,585 ) 170,171 $ 3,682,448 $ 909,216 $ 65,388 $ 1,576,111 Year Ended December 31, 2017 December 31, 2017 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Total Assets Geographic divisions $ 3,365,968 $ 795,515 $ 66,809 $ 250,061 $ 1,435,970 Other reconciling items — — 2,408 (50,058 ) 37,380 $ 3,365,968 $ 795,515 $ 69,217 $ 1,473,350 Year Ended December 31, 2016 December 31, 2016 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Total Assets Geographic divisions $ 3,093,743 $ 741,965 $ 66,592 $ 244,616 $ 1,345,475 Other reconciling items — — 2,088 (50,726 ) 49,539 $ 3,093,743 $ 741,965 $ 68,680 $ 1,395,014 |
Reconciliation of geographic EBITDA to consolidated financial statements: | Reconciliation to consolidated financial statements: Year Ended December 31, (in thousands) 2018 2017 2016 Income before income taxes $ 156,914 $ 81,827 $ 45,146 Interest expense 24,035 25,036 30,131 Interest income (758 ) — — Depreciation and amortization 65,388 69,217 68,680 Merger and integration costs 3,998 15,336 15,340 Non-cash stock compensation expense 11,315 6,769 7,252 Impairment of assets — 435 11,928 Inventory step-up charges — — 2,884 Loss on debt extinguishment — — 12,529 Sale of Coleman Floor (a) 656 — — Acquisition costs (b) 1,829 424 — Other items (c) 2,502 959 — Adjusted EBITDA of other reconciling items 74,585 50,058 50,726 Adjusted EBITDA of geographic divisions reportable segment $ 340,464 $ 250,061 $ 244,616 (a) For the year ended December 31, 2018, the amount represents the loss on sale of Coleman Floor as well as other expenses incurred related to the disposition. (b) For the years ended December 31, 2018 and 2017, the amounts represent expenses incurred related to the acquisitions of Barefoot and Company (“Barefoot”), Locust Lumber, Shone Lumber, TexPly and Code Plus. For the year ended December 31, 2018, the amount also includes costs incurred related to the conversion of the enterprise resource planning system utilized by Shone Lumber. (c) For the year ended December 31, 2018, the amount represents costs incurred in connection with the departure of the Company’s former chief executive officer and the search for and appointment of his permanent replacement. For the year ended December 31, 2017, the amount represents expense incurred related to pending litigation of $3.0 million and income related to the final settlement of insurance claims made by the Company for a fire at one of the Company’s facilities during 2015 of $2.0 million . |
Net sales from external customers by main product lines | In accordance with the enterprise-wide disclosure requirements of the accounting standard, the Company’s net sales from external customers by main product lines are as follows for the years ended December 31, 2018 , 2017 and 2016 . (in thousands) 2018 2017 2016 Structural components $ 622,105 $ 522,619 $ 461,761 Lumber & lumber sheet goods 1,286,481 1,114,219 938,563 Millwork, doors & windows 964,684 907,377 894,889 Other building products & services 809,178 821,753 798,530 Total net sales $ 3,682,448 $ 3,365,968 $ 3,093,743 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted EPS calculations | The basic and diluted EPS calculations for the years ended December 31, 2018 , 2017 and 2016 are presented below: Year Ended December 31, (in thousands, except per share amounts) 2018 2017 2016 Income attributable to common stockholders $ 119,738 $ 57,425 $ 30,880 Weighted average common shares outstanding, basic 67,273 66,900 66,055 Effect of dilutive securities: Restricted stock units 324 235 129 Stock options 135 204 218 Restricted stock 16 65 207 Weighted average common shares outstanding, diluted 67,748 67,404 66,609 Basic income per common share $ 1.78 $ 0.86 $ 0.47 Diluted income per common share $ 1.77 $ 0.85 $ 0.46 |
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 December 31, 2018, the number of currently outstanding performance-based restricted stock units that are issued upon vesting could range from zero to a maximum of 0.6 million . Year Ended December 31, (in thousands) 2018 2017 2016 Restricted stock units 85 — 5 Stock options 349 — 469 Restricted stock — — — |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Data Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Schedule of quarterly results of operations | The following tables summarize the consolidated quarterly results of operations for 2018 and 2017 : 2018 (in thousands, except per share amounts) First Second Third Fourth Net sales $ 834,202 $ 998,461 $ 990,264 $ 859,521 Gross profit 199,084 239,599 241,303 229,230 Net income 15,359 40,405 35,858 28,116 Basic income per share $ 0.23 $ 0.60 $ 0.53 $ 0.42 Diluted income per share $ 0.23 $ 0.60 $ 0.53 $ 0.41 2017 (in thousands, except per share amounts) First Second Third Fourth Net sales $ 757,700 $ 886,375 $ 881,012 $ 840,881 Gross profit 178,197 211,687 209,545 196,086 Net income 3,744 17,596 18,443 17,642 Basic income per share $ 0.06 $ 0.26 $ 0.28 $ 0.26 Diluted income per share $ 0.06 $ 0.26 $ 0.27 $ 0.26 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Building and improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Building and improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 30 years |
Leasehold improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Lesser of life of the asset or remaining lease term |
Leasehold improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Furniture, fixtures and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Furniture, fixtures and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, shares in Thousands | 2 Months Ended | 12 Months Ended | ||||||||
Feb. 27, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | |
Organization Consolidation And Presentation [Line Items] | ||||||||||
Cash equivalents | $ 146,100,000 | $ 146,100,000 | $ 146,100,000 | $ 146,100,000 | $ 146,100,000 | $ 146,100,000 | $ 0 | |||
Revenue recognized for performance obligations satisfied over time | 26.00% | |||||||||
Selling, general and administrative expenses | 680,273,000 | 619,546,000 | $ 571,799,000 | |||||||
Depreciation expense | 39,627,000 | 43,022,000 | 38,441,000 | |||||||
Number of reportable segments | 1 | 1 | ||||||||
Number of operating segments | 5 | |||||||||
Amount authorized for share repurchase program | $ 75,000,000 | 75,000,000 | 75,000,000 | $ 75,000,000 | 75,000,000 | $ 75,000,000 | ||||
Share repurchase program expiration date | Nov. 20, 2019 | |||||||||
Payments for Repurchase of Common Stock | 2,891,000 | 0 | 0 | |||||||
Shares repurchased | 2,891,000 | |||||||||
Amount remaining under repurchase program | $ 72,100,000 | 72,100,000 | 72,100,000 | 72,100,000 | 72,100,000 | 72,100,000 | ||||
Aggregate maximum obligation of reinsurer | 17,500,000 | |||||||||
Insurance reserves related to reinsurance claims | 3,700,000 | 3,700,000 | 3,700,000 | 3,700,000 | 3,700,000 | 3,700,000 | 4,500,000 | |||
Debt issuance cost | 6,400,000 | 6,400,000 | 6,400,000 | 6,400,000 | 6,400,000 | 6,400,000 | 8,100,000 | |||
Amortization of debt issuance costs | 1,684,000 | 1,684,000 | 3,114,000 | |||||||
Deferred Tax Benefit, 2017 Tax Act | 500,000 | 3,600,000 | ||||||||
Shipping and Handling [Member] | ||||||||||
Organization Consolidation And Presentation [Line Items] | ||||||||||
Selling, general and administrative expenses | 189,600,000 | 172,200,000 | 152,700,000 | |||||||
Depreciation expense | 22,900,000 | 24,800,000 | 20,900,000 | |||||||
Selling, general and administrative expenses [Member] | ||||||||||
Organization Consolidation And Presentation [Line Items] | ||||||||||
Retirement savings expense recorded | 5,900,000 | 5,200,000 | 4,600,000 | |||||||
Advertising expense | 4,900,000 | 5,800,000 | 3,700,000 | |||||||
Interest expense [Member] | ||||||||||
Organization Consolidation And Presentation [Line Items] | ||||||||||
Amortization of debt issuance costs | 1,684,000 | 1,684,000 | $ 3,114,000 | |||||||
Prepaid expenses and other current assets [Member] | ||||||||||
Organization Consolidation And Presentation [Line Items] | ||||||||||
Rebates receivable | 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 | 23,300,000 | |||
Other long-term assets [Member] | ||||||||||
Organization Consolidation And Presentation [Line Items] | ||||||||||
Assets held for sale | 1,300,000 | 1,300,000 | 1,300,000 | 1,300,000 | 1,300,000 | 1,300,000 | 2,300,000 | |||
Accounts payable [Member] | ||||||||||
Organization Consolidation And Presentation [Line Items] | ||||||||||
Book overdrafts | (100,000) | (100,000) | (100,000) | (100,000) | (100,000) | (100,000) | (100,000) | |||
Accrued expenses and other liabilities [Member] | ||||||||||
Organization Consolidation And Presentation [Line Items] | ||||||||||
Warranty liabilities | 2,900,000 | 2,900,000 | 2,900,000 | 2,900,000 | 2,900,000 | 2,900,000 | 2,500,000 | |||
Accrued expenses and other liabilities and other long-term liabilities [Member] | ||||||||||
Organization Consolidation And Presentation [Line Items] | ||||||||||
Deferred rent liability | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 4,200,000 | |||
Subsequent Event [Member] | ||||||||||
Organization Consolidation And Presentation [Line Items] | ||||||||||
Shares repurchased (shares) | shares | 700 | |||||||||
Weighted average price | $ / shares | $ 16.82 | |||||||||
Shares repurchased | $ 11,500,000 | |||||||||
FY18 Repurchase Program 75M [Member] | ||||||||||
Organization Consolidation And Presentation [Line Items] | ||||||||||
Shares repurchased (shares) | shares | 182 | |||||||||
Weighted average price | $ / shares | $ 15.91 | |||||||||
Minimum [Member] | Subsequent Event [Member] | ||||||||||
Organization Consolidation And Presentation [Line Items] | ||||||||||
Operating lease liability | $ 110,000,000 | |||||||||
Current operating lease liability | 22,000,000 | |||||||||
ROU Asset | 105,000,000 | |||||||||
Maximum [Member] | Subsequent Event [Member] | ||||||||||
Organization Consolidation And Presentation [Line Items] | ||||||||||
Operating lease liability | 125,000,000 | |||||||||
Current operating lease liability | 37,000,000 | |||||||||
ROU Asset | $ 120,000,000 |
Acquisitions and Disposition _2
Acquisitions and Disposition Acquisitions and Disposition (Consideration Transferred) (Details) - shares shares in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Number of SBS shares outstanding on the closing date of the Merger (in shares) | 67.2 | 67.1 |
Acquisitions and Disposition _3
Acquisitions and Disposition Acquisitions and Disposition (Net Assets Acquired) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 262,997 | $ 261,792 | $ 254,832 |
Acquisitions and Disposition (N
Acquisitions and Disposition (Narrative) (Details) - USD ($) $ in Thousands | Nov. 01, 2018 | Mar. 01, 2018 | Apr. 03, 2017 | Mar. 27, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Business Acquisition [Line Items] | ||||||||||
Proceeds from sale of business | $ 7,773 | $ 0 | $ 0 | |||||||
Goodwill | $ 262,997 | 262,997 | 261,792 | 254,832 | ||||||
Acquisition costs | 1,829 | [1] | 424 | [1] | 0 | |||||
Initial holdback | 1,403 | 375 | 0 | |||||||
Cost of sales | 2,773,232 | 2,570,453 | 2,351,778 | |||||||
Income from continuing operations before income taxes | 156,914 | 81,827 | 45,146 | |||||||
WE Shone Co [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Date of acquisition | Mar. 1, 2018 | |||||||||
Purchase price | $ 22,400 | |||||||||
Goodwill | 2,500 | |||||||||
Accounts receivable | 6,400 | |||||||||
Inventories | 8,800 | |||||||||
Property and equipment | 2,900 | |||||||||
Current liabilities | 5,300 | |||||||||
Net sales before acquisition | 70,700 | |||||||||
Revenue since acquisition date | 60,900 | |||||||||
Pre-tax earnings since acquisition date | $ 3,200 | |||||||||
Initial holdback | 1,400 | |||||||||
WE Shone Co [Member] | Selling, general and administrative expenses [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition costs | 200 | |||||||||
WE Shone Co [Member] | Customer relationships [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | $ 7,000 | |||||||||
Useful life | 9 years | |||||||||
TexPly [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Date of acquisition | Apr. 3, 2017 | |||||||||
Purchase price | $ 31,700 | |||||||||
Goodwill | 3,600 | |||||||||
Accounts receivable | 5,200 | |||||||||
Inventories | 3,900 | |||||||||
Property and equipment | 5,400 | |||||||||
TexPly [Member] | Customer relationships [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | $ 13,600 | |||||||||
Useful life | 13 years | |||||||||
Code Plus [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Date of acquisition | Mar. 27, 2017 | |||||||||
Purchase price | $ 7,100 | |||||||||
Goodwill | 3,400 | |||||||||
Earnout | 800 | |||||||||
Code Plus [Member] | Customer relationships [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | $ 2,300 | |||||||||
Useful life | 12 years | |||||||||
Code Plus [Member] | Non-compete Agreements [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | $ 500 | |||||||||
Useful life | 5 years | |||||||||
Code Plus And TexPly [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Revenue since acquisition date | 54,300 | |||||||||
Pre-tax earnings since acquisition date | 3,200 | |||||||||
Building products [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cost of sales | 2,095,093 | $ 1,906,583 | $ 1,725,843 | |||||||
Coleman Floor [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Date of sale | Nov. 1, 2018 | |||||||||
Proceeds from sale of business | $ 7,773 | |||||||||
Percent of total net sales | 1.00% | |||||||||
Coleman Floor [Member] | Other Income [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Loss on sale of business | $ 300 | |||||||||
[1] | For the years ended December 31, 2018 and 2017, the amounts represent expenses incurred related to the acquisitions of Barefoot and Company (“Barefoot”), Locust Lumber, Shone Lumber, TexPly and Code Plus. For the year ended December 31, 2018, the amount also includes costs incurred related to the conversion of the enterprise resource planning system utilized by Shone Lumber. |
Accounts Receivable Accounts _2
Accounts Receivable Accounts Receivable (Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Trade receivables | $ 305,363 | $ 333,954 | |
Allowance for doubtful accounts | (4,904) | (4,771) | |
Sales Returns Allowance | [1] | 0 | (4,127) |
Other allowances | (2,019) | (2,164) | |
Accounts receivable, net | $ 298,440 | $ 322,892 | |
[1] | Effective January 1, 2018, as part of the Company’s adoption of Topic 606, the Company has recorded a liability for estimated returns of inventory as a refund liability within accrued expenses and other liabilities. These balances were previously presented as an allowance within accounts receivable. See Note 11 for further details. |
Accounts Receivable Accounts _3
Accounts Receivable Accounts Receivable (Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance at January 1 | $ 4,771 | $ 4,162 | $ 2,357 | |
Write-offs | (4,676) | (3,665) | (2,186) | |
Recoveries | 1,460 | 960 | 2,587 | |
Increase in allowance | 4,906 | 3,314 | 1,404 | |
Other | (1,557) | [1] | 0 | 0 |
Balance at December 31 | 4,904 | 4,771 | 4,162 | |
Decrease in allowance | 4,906 | $ 3,314 | $ 1,404 | |
Other long-term assets [Member] | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Notes receivable | 2,600 | |||
Allowance for notes receivable | 1,300 | |||
Coleman Floor [Member] | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Increase in allowance | 300 | |||
Decrease in allowance | $ 300 | |||
[1] | During the year ended December 31, 2018, the Company entered into a promissory note with one of its customers resulting in a note receivable of $2.6 million and corresponding allowance of $1.3 million, included in other long-term assets. These amounts were previously included in trade receivables and allowance for doubtful accounts, respectively, within accounts receivable. Additionally, the allowance for doubtful accounts balance declined by $0.3 million during the year ended December 31, 2018 in connection with the sale of accounts receivable in the Coleman Floor disposition. See Note 3 for further details. |
Inventories Inventories (Narrat
Inventories Inventories (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Provision for excess and obsolete inventory | $ 2.3 | $ 1.5 |
Property and Equipment Proper_2
Property and Equipment Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 509,039 | $ 471,899 |
Less: Accumulated depreciation | (214,712) | (176,079) |
Property and equipment, net of accumulated depreciation | 294,327 | 295,820 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 48,027 | 51,009 |
Building and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 106,072 | 104,752 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 22,758 | 19,750 |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 186,017 | 161,014 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 134,470 | 120,855 |
Construction-in-progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 11,695 | $ 14,519 |
Property and Equipment Proper_3
Property and Equipment Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 50,373 | $ 53,214 | $ 47,959 |
Depreciation expense, cost of goods sold | 10,700 | 10,200 | 9,500 |
Impairment of assets | $ 0 | 435 | 11,928 |
Technology Equipment, Enterprise Resource Planning System [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of assets | $ 11,900 | ||
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] | Technology Equipment, Enterprise Resource Planning System [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Integration related costs | $ 2,800 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Goodwill Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
Beginning balance | $ 261,792 | $ 254,832 |
Ending balance | 262,997 | 261,792 |
Code Plus [Member] | ||
Goodwill [Line Items] | ||
Goodwill acquired during period | 3,402 | |
TexPly [Member] | ||
Goodwill [Line Items] | ||
Goodwill acquired during period | $ 3,558 | |
WE Shone Co [Member] | ||
Goodwill [Line Items] | ||
Goodwill acquired during period | 2,526 | |
Coleman Floor [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Written off Related to Sale of Business Unit | $ (1,321) |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets (Intangible Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Net Finite-lived Intangible Assets, beginning of period | $ 167,612 | $ 167,215 | $ 187,936 |
Amortization | (15,015) | (16,003) | (20,721) |
Net Finite-lived Intangible Assets, end of period | 158,888 | 167,612 | 167,215 |
Trademarks [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross Carrying Amount, beginning of period | 5,350 | 5,350 | 5,350 |
Accumulated Amortization, beginning of period | (4,558) | (2,548) | (408) |
Amortization | (83) | (2,010) | (2,140) |
Gross Carrying Amount, end of period | 4,350 | 5,350 | 5,350 |
Accumulated Amortization, end of period | (4,350) | (4,558) | (2,548) |
Customer relationships [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross Carrying Amount, beginning of period | 195,600 | 179,700 | 179,700 |
Accumulated Amortization, beginning of period | (29,294) | (15,509) | (2,664) |
Amortization | (14,743) | (13,785) | (12,845) |
Gross Carrying Amount, end of period | 202,600 | 195,600 | 179,700 |
Accumulated Amortization, end of period | (44,037) | (29,294) | (15,509) |
Non-compete Agreements [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross Carrying Amount, beginning of period | 7,012 | 6,512 | 6,512 |
Accumulated Amortization, beginning of period | (6,498) | (6,290) | (554) |
Amortization | (189) | (208) | (5,736) |
Gross Carrying Amount, end of period | 7,012 | 7,012 | 6,512 |
Accumulated Amortization, end of period | (6,687) | (6,498) | $ (6,290) |
Code Plus [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Acquisitions | 2,800 | ||
Code Plus [Member] | Customer relationships [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Acquisitions | 2,300 | ||
Code Plus [Member] | Non-compete Agreements [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Acquisitions | 500 | ||
TexPly [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Acquisitions | 13,600 | ||
TexPly [Member] | Customer relationships [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Acquisitions | $ 13,600 | ||
WE Shone Co [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Acquisitions | 7,000 | ||
WE Shone Co [Member] | Customer relationships [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Acquisitions | 7,000 | ||
Coleman Floor [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Disposals, net | (709) | ||
Coleman Floor [Member] | Trademarks [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Disposals, gross | (1,000) | ||
Disposals, accumulated amortization | $ 291 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets (Intangible Amortization Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
2,018 | $ 14,972 | |||
2,019 | 14,972 | |||
2,020 | 14,972 | |||
2,021 | 14,897 | |||
2,022 | 14,872 | |||
Thereafter | 84,203 | |||
Finite-lived intangible assets, net | $ 158,888 | $ 167,612 | $ 167,215 | $ 187,936 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 15,015 | $ 16,003 | $ 20,721 |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 83 | 2,010 | 2,140 |
Customer relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 14,743 | 13,785 | 12,845 |
Non-compete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 189 | $ 208 | $ 5,736 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |||
Accrued payroll and other employee related expenses | $ 62,518 | $ 41,798 | |
Accrued taxes | 21,028 | 20,741 | |
Accrued rebates payable | 5,725 | 4,653 | |
Refund liability for estimated inventory returns | [1] | 3,850 | 0 |
Pending litigation accrual | 2,950 | 2,950 | |
Accrued warranty reserve | 2,930 | 2,467 | |
Acquisition Related Liabilities, Current | 2,136 | 370 | |
Accrued professional fees | 1,156 | 715 | |
Accrued credit card fees | 1,110 | 1,127 | |
Current portion of deferred rent | 694 | 818 | |
Unfavorable leases | 416 | 520 | |
Advances from customers | [1] | 0 | 11,664 |
Other | 5,763 | 8,439 | |
Accrued expenses and other liabilities | $ 110,276 | $ 96,262 | |
[1] | Effective January 1, 2018, as part of the Company’s adoption of Topic 606, the Company has recorded a liability for estimated returns of inventory as a refund liability within accrued expenses and other liabilities. These balances were previously presented as an allowance within accounts receivable. Additionally, the Company has presented advances from customers, which were historically presented within accrued expenses and other liabilities, as a contract liability. See Note 11 for further details. |
Debt Debt (Long-term Debt Table
Debt Debt (Long-term Debt Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 350,000 | $ 354,798 |
Unamortized debt issuance costs related to senior secured notes | (6,400) | (8,100) |
Long-term debt, net of discount | 345,197 | 349,159 |
Less: Current portion of long-term debt | 0 | 100 |
Long-term debt | 345,197 | 349,059 |
Senior Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 350,000 | 350,000 |
Revolving Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 4,462 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 336 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs related to senior secured notes | $ (4,803) | $ (5,639) |
Debt Debt (Maturities Table) (D
Debt Debt (Maturities Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,018 | $ 0 | $ 100 |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | 350,000 | |
Long-term debt | $ 350,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) $ in Thousands | Sep. 15, 2016USD ($) | Dec. 01, 2015USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 14, 2016USD ($) |
Debt Instrument [Line Items] | ||||||
Issued amount | $ 350,000 | |||||
Loss on debt extinguishment | 0 | $ 0 | $ (12,529) | |||
Payments of debt extinguishment costs | 0 | 0 | 8,438 | |||
Payments of debt issuance costs | 0 | 38 | $ 7,011 | |||
Long-term debt, gross | 350,000 | 354,798 | ||||
Letters of credit, amount outstanding | 61,000 | |||||
Long-term debt | 345,197 | 349,159 | ||||
Senior Notes Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Issuance date | Sep. 15, 2016 | |||||
Issued amount | $ 350,000 | |||||
Debt Instrument Maturity Year | 2,024 | |||||
Maturity date | Oct. 1, 2024 | |||||
Interest rate | 5.50% | |||||
Frequency of periodic payment | payable semiannually on April 1 and October 1 | |||||
Change in control repurchase percentage | 101.00% | |||||
Payments of debt issuance costs | 6,700 | |||||
Long-term debt, gross | 350,000 | 350,000 | ||||
Market value in excess of carrying value | 21,000 | |||||
Revolving Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 375,000 | $ 450,000 | ||||
Maximum letters of credit issuance | $ 100,000 | $ 75,000 | ||||
Unused capacity, commitment fee percentage | 0.25% | |||||
Minimum fixed charge coverage ratio | 1 | |||||
Minimum excess availability for 30 consecutive days | $ 33,300 | |||||
Threshold for line cap percentage | 0.10 | |||||
Minimum line cap percentage for 30 consecutive days | 0.10 | |||||
Long-term debt, gross | 0 | 4,462 | ||||
Initial agreement date | Dec. 1, 2015 | |||||
Amendment date | Sep. 15, 2016 | |||||
Threshold for excess availability | $ 33,300 | |||||
Remaining borrowing capacity | $ 309,500 | |||||
Revolving Credit Agreement [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding letters of credit fee | 0.0075 | |||||
Revolving Credit Agreement [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding letters of credit fee | 0.0125 | |||||
Revolving Credit Agreement [Member] | Base Rate Option [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Revolving Credit Agreement [Member] | Base Rate Option [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.25% | |||||
Revolving Credit Agreement [Member] | Base Rate Option [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.75% | |||||
Revolving Credit Agreement [Member] | LIBOR Rate Option [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.25% | |||||
Revolving Credit Agreement [Member] | LIBOR Rate Option [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
Revolving Credit Agreement [Member] | Federal Funds Rate [Member] | Base Rate Option [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Senior Notes Due 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Extinguishment of debt | $ 250,000 | |||||
Effective interest percentage | 9.00% | |||||
Interest paid on extinguished debt | $ 11,300 | |||||
Loss on debt extinguishment | 12,529 | |||||
Payments of debt extinguishment costs | 8,400 | |||||
Write off of deferred debt issuance cost | $ 4,100 | |||||
Debt Instrument, Redemption, Period One [Member] | Senior Notes Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Additional redemption percentage | 1.00% | |||||
Redemption price percentage | 104.125% | |||||
Debt Instrument, Redemption, Period One [Member] | Senior Notes Due 2024 [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument redemption price percentage allowed | 100.00% | |||||
Debt Instrument, Redemption, Period One [Member] | Senior Notes Due 2024 [Member] | Repayment From Equity Offering [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price percentage | 105.50% | |||||
Debt Instrument, Redemption, Period One [Member] | Senior Notes Due 2024 [Member] | Repayment From Equity Offering [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument redemption price percentage allowed | 40.00% | |||||
Debt Instrument, Redemption, Period Two [Member] | Senior Notes Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price percentage | 103.00% | |||||
Debt Instrument, Redemption, Period Two [Member] | Senior Notes Due 2024 [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument redemption price percentage allowed | 10.00% | |||||
BMCEastLLC [Member] | Senior Notes Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 100.00% | |||||
Guarantor Subsidiaries [Member] | Senior Notes Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 100.00% |
Other Long-term Liabilities O_2
Other Long-term Liabilities Other Long-term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities, Noncurrent [Abstract] | ||
Long-term deferred rent | $ 4,347 | $ 3,428 |
Unfavorable leases | 1,843 | 2,298 |
Other | 737 | 1,313 |
Total other long-term liabilities | $ 6,927 | $ 7,039 |
Revenue Revenue (Impact of Adop
Revenue Revenue (Impact of Adoption of Topic 606) (Details) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounts receivable, net of allowances | $ 298,440 | $ 322,892 | ||
Inventories, net | 309,279 | 309,060 | ||
Contract assets | 32,348 | $ 38,557 | 0 | |
Costs in excess of billings on uncompleted contracts | 0 | 28,738 | ||
Prepaid expenses and other current assets | 56,249 | 57,949 | ||
Total assets | 1,576,111 | 1,473,350 | $ 1,395,014 | |
Accrued expenses and other liabilities | 110,276 | 96,262 | ||
Contract liabilities | 34,888 | 26,330 | 0 | |
Billings in excess of costs on uncompleted contracts | 0 | 18,428 | ||
Liabilities | 701,452 | 726,451 | ||
Liabilities and Equity | 1,576,111 | $ 1,473,350 | ||
Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounts receivable, net of allowances | 314,008 | |||
Inventories, net | 305,932 | |||
Contract assets | 38,557 | |||
Costs in excess of billings on uncompleted contracts | 0 | |||
Prepaid expenses and other current assets | 61,077 | |||
Total assets | 1,474,285 | |||
Accrued expenses and other liabilities | 89,295 | |||
Contract liabilities | 26,330 | |||
Billings in excess of costs on uncompleted contracts | 0 | |||
Liabilities | 727,386 | |||
Liabilities and Equity | 1,474,285 | |||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounts receivable, net of allowances | 306,600 | |||
Inventories, net | 312,055 | |||
Contract assets | 0 | |||
Costs in excess of billings on uncompleted contracts | 23,769 | |||
Prepaid expenses and other current assets | 53,473 | |||
Total assets | 1,575,692 | |||
Accrued expenses and other liabilities | 120,118 | |||
Contract liabilities | 0 | |||
Billings in excess of costs on uncompleted contracts | 24,627 | |||
Liabilities | 701,033 | |||
Liabilities and Equity | 1,575,692 | |||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounts receivable, net of allowances | (8,160) | (8,884) | ||
Inventories, net | (2,776) | (3,128) | ||
Contract assets | 32,348 | 38,557 | ||
Costs in excess of billings on uncompleted contracts | (23,769) | (28,738) | ||
Prepaid expenses and other current assets | 2,776 | 3,128 | ||
Total assets | 419 | 935 | ||
Accrued expenses and other liabilities | (9,842) | (6,967) | ||
Contract liabilities | 34,888 | 26,330 | ||
Billings in excess of costs on uncompleted contracts | (24,627) | (18,428) | ||
Liabilities | 419 | 935 | ||
Liabilities and Equity | $ 419 | $ 935 |
Revenue Revenue (Disaggregation
Revenue Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 3,682,448 | $ 3,365,968 | $ 3,093,743 |
Single Family Homebuilders [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,814,100 | 2,526,837 | 2,262,124 |
Professional Remodeling Contractors [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 427,346 | 380,460 | 371,018 |
Other Customers [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 441,002 | $ 458,671 | $ 460,601 |
Revenue Revenue (Contract Asset
Revenue Revenue (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Accounts Receivable Including Unbilled Receivables | $ 306,370 | $ 321,418 | ||
Increase (Decrease) in Accounts and Other Receivables | (15,048) | |||
Contract assets | 32,348 | $ 0 | 38,557 | |
Contract With Customer Asset, Period Change | 6,209 | |||
Increase (Decrease) in Contract with Customer, Asset | (5,565) | 0 | $ 0 | |
Contract liabilities | 34,888 | 0 | $ 26,330 | |
Contract liabilities | 8,609 | $ 0 | $ 0 | |
Contract With Customer Liability, Period Change | $ 8,558 |
Revenue Revenue (Narrative) (De
Revenue Revenue (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Contract With Customer Asset, Period Change | $ 6,209 | |||
Contract With Customer Liability, Period Change | 8,558 | |||
Increase (Decrease) in Contract with Customer, Asset | (5,565) | $ 0 | $ 0 | |
Contract liabilities | 8,609 | $ 0 | $ 0 | |
Contract with Customer, Liability, Revenue Recognized | $ 25,100 | |||
Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative Effect Of New Accounting Principle In Period Of Adoption, Not Booked | $ 100 |
Income Taxes Income Taxes (Comp
Income Taxes Income Taxes (Components of Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||
Federal | $ 32,042 | $ 20,215 | $ 16,713 |
State | 3,868 | 1,869 | 1,124 |
Current income tax expense (benefit) | 35,910 | 22,084 | 17,837 |
Deferred | |||
Federal | 160 | 1,797 | (3,049) |
State | 1,106 | 521 | (522) |
Deferred income tax expense (benefit) | 1,266 | 2,318 | (3,571) |
Income tax expense | $ 37,176 | $ 24,402 | $ 14,266 |
Income Taxes Income Taxes (Effe
Income Taxes Income Taxes (Effective Tax Rate) (Details) | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||||
Federal statutory rate | 21.00% | 21.00% | 35.00% | 35.00% |
State taxes, net of federal tax | 2.60% | 2.90% | 2.70% | |
Nondeductible capitalized transaction costs | 0.00% | 0.20% | 1.40% | |
Nondeductible compensation expense | 0.20% | 0.20% | 0.50% | |
Nondeductible (permanent) items | 0.20% | 0.90% | 1.00% | |
IRC Section 199 manufacturing deduction | 0.10% | 2.50% | 3.50% | |
Changes in tax rates, including 2017 Tax Act | (0.20%) | (4.40%) | 1.60% | |
Changes related to IRC section 382 limitations | 0.00% | 0.00% | (3.90%) | |
Excess windfall benefit of stock compensation | (0.20%) | (2.30%) | (3.70%) | |
Other items | 0.00% | (0.20%) | 0.50% | |
Effective tax rate | 23.70% | 29.80% | 31.60% |
Income Taxes Income Taxes (Defe
Income Taxes Income Taxes (Deferred Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets related to: | ||||
Accounts receivable | $ 2,278 | $ 2,061 | ||
Inventory | 2,631 | 1,931 | ||
Accrued compensation | 6,783 | 2,981 | ||
Insurance reserves | 11,545 | 10,778 | ||
Stock-based compensation | 3,399 | 2,388 | ||
Restructuring reserves | 325 | 365 | ||
Other accrued liabilities | 1,514 | 1,149 | ||
Federal net operating loss carryforward | 16,349 | 17,372 | ||
State net operating loss carryforward | 3,882 | 5,559 | ||
Other | 1,915 | 1,633 | ||
Deferred tax assets, gross | 50,621 | 46,217 | ||
Valuation allowance | (145) | (145) | $ (125) | $ (126) |
Total deferred tax assets | 50,476 | 46,072 | ||
Deferred tax liabilities related to: | ||||
Goodwill and intangibles | (21,946) | (21,030) | ||
Property and equipment | (29,684) | (25,440) | ||
Other assets | (1,880) | (1,370) | ||
Total deferred tax liabilities | 53,510 | 47,840 | ||
Net deferred tax (liability) asset | $ (3,034) | $ (1,768) |
Income Taxes Income Taxes (Valu
Income Taxes Income Taxes (Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at January 1, | $ 145 | $ 125 | $ 126 |
Balance at December 31, | 145 | 145 | 125 |
Additions charged to expense [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Increase (decrease) in valuation allowance from continuing operations | 0 | 20 | 0 |
Additions Charged to GW/Purchase Accting [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Increase (decrease) in valuation allowance from continuing operations | 0 | 0 | 0 |
Deductions - other [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Increase (decrease) in valuation allowance from continuing operations | $ 0 | $ 0 | $ (1) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Contingency [Line Items] | |||||
Federal NOL carryforward limiit due to IRC 382 | $ 4,800 | ||||
Current income tax expense (benefit) | 35,910 | $ 22,084 | $ 17,837 | ||
Income tax expense | 37,176 | 24,402 | 14,266 | ||
State net operating loss carryforwards | 75,100 | ||||
Share based compensation related tax expense | 300 | 1,900 | |||
Windfall Tax Benefits | 400 | ||||
Stock-based compensation | 3,399 | 2,388 | |||
Income taxes payable | 902 | 0 | |||
Current taxes payable | 21,028 | 20,741 | |||
Income taxes receivable | 0 | 3,748 | |||
Income taxes paid | 34,200 | 23,500 | |||
Income tax refunds received | 2,900 | 600 | |||
Valuation allowance | 145 | 145 | 125 | $ 126 | |
Reduction of tax indemnification asset | $ 10,646 | $ 5,690 | $ 4,070 | ||
Income tax expense at statutory rate | 21.00% | 21.00% | 35.00% | 35.00% | |
Deferred Tax Benefit, 2017 Tax Act | $ 500 | $ 3,600 | |||
Net deferred tax (liability) asset | $ 3,034 | $ 1,768 | |||
Effective tax rate | 23.70% | 29.80% | 31.60% | ||
Income from continuing operations before income taxes | $ 156,914 | $ 81,827 | $ 45,146 | ||
State and Local Jurisdiction [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Income tax examination period | 3 years | ||||
Federal [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Income tax examination period | 3 years | ||||
Tax Year 2028 [Member] | |||||
Income Tax Contingency [Line Items] | |||||
NOL expiration | $ 29,400 | ||||
Tax Year 2029 [Member] | |||||
Income Tax Contingency [Line Items] | |||||
NOL expiration | 17,300 | ||||
Tax Years 2030 through 2034 [Member] | |||||
Income Tax Contingency [Line Items] | |||||
NOL expiration | $ 31,200 | ||||
Tax Year 2008 [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Period under examination | Jul. 31, 2008 | ||||
Tax Year 2008 [Member] | Federal [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Open tax year end | Jul. 31, 2008 | ||||
Tax Year 2009 [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Period under examination | May 5, 2009 | ||||
Tax Year 2009 [Member] | Federal [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Open tax year end | May 5, 2009 | ||||
IRC 382 [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Tax Expense Benefit, Net Operating Loss Carry Forward | $ (1,700) |
Commitments and Contingencies_2
Commitments and Contingencies Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,018 | $ 7,245 | ||
2,019 | 5,599 | ||
2,020 | 2,356 | ||
2,021 | 873 | ||
2,022 | 660 | ||
Thereafter | 0 | ||
Total minimum lease payments | 16,733 | ||
Less: Amounts representing interest | (1,227) | ||
Total obligation under capital leases | 15,506 | ||
Less: Current portion of capital lease obligation | (6,661) | ||
Long-term portion of capital lease obligations | 8,845 | $ 14,838 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,018 | 30,431 | ||
2,019 | 24,210 | ||
2,020 | 21,551 | ||
2,021 | 17,908 | ||
2,022 | 14,607 | ||
Thereafter | 34,279 | ||
Total minimum lease payments | [1] | $ 142,986 | |
[1] | Minimum operating lease payments have not been reduced by minimum sublease rentals of $0.1 million due in the future under noncancelable subleases. |
Commitments and Contingencies_3
Commitments and Contingencies Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||
Estimated Litigation Liability | $ 0.3 | $ 0.3 | |
Future minimum rentals under noncancelable subleases | 0.1 | ||
Operating leases, rent expense | 32.2 | 30.5 | $ 29.3 |
Commitment to purchase | $ 31.6 | ||
Pending litigation expense | 3 | ||
Vehicles And Equipment [Member] | Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Capital lease term | 3 years | ||
Vehicles And Equipment [Member] | Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Capital lease term | 6 years | ||
Building and improvements [Member] | Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Remaining term on capital lease | 4 years | ||
Operating lease term | 1 year | ||
Building and improvements [Member] | Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Remaining term on capital lease | 5 years | ||
Operating lease term | 5 years | ||
Property And Equipment [Member] | |||
Loss Contingencies [Line Items] | |||
Capital lease carrying value | $ 17.2 | 25.2 | |
Capital leases, accumulated depreciation | $ 42.5 | 37.1 | |
Selling, general and administrative expenses [Member] | |||
Loss Contingencies [Line Items] | |||
Pending litigation expense | $ 3 |
Stock Based Compensation (Stock
Stock Based Compensation (Stock based compensation expense) (Details) - Selling, general and administrative expenses [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation | $ 11,315 | $ 6,769 | $ 7,252 | |
Restricted stock units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation | [1] | 11,133 | 6,006 | 4,643 |
Restricted stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation | 100 | 436 | 1,559 | |
Stock options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation | $ 82 | $ 327 | $ 1,050 | |
[1] | Includes service-based and performance-based restricted stock units. |
Stock Based Compensation (Summa
Stock Based Compensation (Summary of restricted stock awards and restricted stock) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted stock [Member] | |||
Restricted Stock and Restricted Stock Units, Number of shares outstanding (in shares): | |||
Beginning balance (in shares) | 60 | 117 | 455 |
Granted (in shares) | 0 | 0 | 0 |
Vested (in shares) | (60) | (49) | (301) |
Forfeited (in shares) | 0 | (8) | (37) |
Ending balance (in shares) | 0 | 60 | 117 |
Restricted Stock and Restricted Stock Units, Weighted average grant date fair value (in dollars per share): | |||
Beginning balance (in dollars per share) | $ 18.17 | $ 17.42 | $ 13.51 |
Granted (in dollars per share) | 0 | 0 | 0 |
Vested (in dollars per share) | 18.17 | 16.25 | 11.95 |
Forfeited (in dollars per share) | 0 | 19.08 | 13.69 |
Ending balance (in dollars per share) | $ 0 | $ 18.17 | $ 17.42 |
Restricted stock units [Member] | |||
Restricted Stock and Restricted Stock Units, Number of shares outstanding (in shares): | |||
Beginning balance (in shares) | 510 | 298 | 282 |
Granted (in shares) | 748 | 396 | 166 |
Vested (in shares) | (266) | (163) | (123) |
Forfeited (in shares) | (88) | (21) | (27) |
Ending balance (in shares) | 904 | 510 | 298 |
Restricted Stock and Restricted Stock Units, Weighted average grant date fair value (in dollars per share): | |||
Beginning balance (in dollars per share) | $ 20.65 | $ 17.39 | $ 16.99 |
Granted (in dollars per share) | 20.22 | 21.79 | 17.65 |
Vested (in dollars per share) | 20.64 | 17.49 | 16.86 |
Forfeited (in dollars per share) | 19.32 | 20.34 | 17.16 |
Ending balance (in dollars per share) | $ 20.43 | $ 20.65 | $ 17.39 |
Stock Based Compensation Stock
Stock Based Compensation Stock Based Compensation (Summary of performance-based restricted stock units) (Details) - Performance-based restricted stock units [Member] - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Performance-Based Restricted Stock Units, Number of shares outstanding (in shares): | ||||
Beginning balance (in shares) | 453 | 206 | 0 | |
Granted (in shares) | [1] | 474 | 255 | 206 |
Vested (in shares) | 0 | 0 | 0 | |
Forfeited (in shares) | (302) | (8) | 0 | |
Ending balance (in shares) | 625 | 453 | 206 | |
Performance-Based Restricted Stock Units, Weighted average grant date fair value (in dollars per share): | ||||
Beginning balance (in dollars per share) | $ 19.37 | $ 16.35 | $ 0 | |
Granted (in dollars per share) | [1] | 19.64 | 21.94 | 16.35 |
Vested (in dollars per share) | 0 | 0 | 0 | |
Forfeited (in dollars per share) | 17.76 | 22.90 | 0 | |
Ending balance (in dollars per share) | $ 20.36 | $ 19.37 | $ 16.35 | |
[1] | Represents the maximum number of performance-based restricted stock units which could be earned. |
Stock Based Compensation Stoc_2
Stock Based Compensation Stock Based Compensation (Summary of stock option awards) (Details) - Stock options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options, Number of options outstanding (in shares): | |||
Outstanding, beginning balance (in shares) | 705 | 1,024 | 1,228 |
Granted (in shares) | 0 | 0 | 3 |
Exercised (in shares) | (96) | (260) | (175) |
Forfeited (in shares) | (6) | (14) | (10) |
Expired (in shares) | (7) | (45) | (22) |
Outstanding, ending balance (in shares) | 596 | 705 | 1,024 |
Exercisable at December 31, 2017 (in shares) | 596 | ||
Vested and expected to vest at December 31, 2017 | 596 | ||
Stock Options, Weighted average exercise price (in dollars per share): | |||
Outstanding, beginning balance (in dollars per share) | $ 15.59 | $ 15.15 | $ 14.17 |
Granted (in dollars per share) | 0 | 0 | 17.04 |
Exercised (in dollars per share) | 14.01 | 13.05 | 7.90 |
Forfeited (in dollars per share) | 17.04 | 17.04 | 17.04 |
Expired (in dollars per share) | 16.37 | 19.89 | 17.53 |
Outstanding, ending balance (in dollars per share) | 15.82 | $ 15.59 | $ 15.15 |
Exercisable at December 31, 2017 (in dollars per share) | 15.82 | ||
Vested and expected to vest at December 31, 2017 | $ 15.82 | ||
Stock Options, Contractual Term (in years) | |||
Outstanding at December 31, 2017 | 5 years 3 months 12 days | ||
Exercisable at December 31, 2017 | 5 years 3 months 12 days | ||
Vested and expected to vest at December 31, 2017 | 5 years 3 months 12 days | ||
Stock Options, Intrinsic Value | |||
Outstanding at December 31, 2017 | $ 982 | ||
Exercisable at December 31, 2107 | 982 | ||
Vested and expected to vest at December 31, 2017 | $ 982 |
Stock Based Compensation Stoc_3
Stock Based Compensation Stock Based Compensation (Unrecognized compensation costs) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Unrecognized compensation cost | $ 13,833 |
Restricted stock units [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Unrecognized compensation cost | $ 8,693 |
Weighted average remaining period of expense recognition (in years) | 1 year 6 months |
Performance-based restricted stock units [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Unrecognized compensation cost | $ 5,140 |
Weighted average remaining period of expense recognition (in years) | 2 years 4 months 12 days |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | Dec. 31, 2015 | ||
Restricted stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 0 | 0 | 0 | |||
Weighted average grant date fair value | $ 0 | $ 18.17 | $ 17.42 | $ 13.51 | ||
Stock options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate intrinsic value of options exercised | $ 800 | $ 2,300 | $ 1,900 | |||
Options, grants in period (in dollars per share) | $ 0 | $ 0 | $ 17.04 | |||
Options outstanding (in shares) | 596,000 | 705,000 | 1,024,000 | 1,228,000 | ||
Weighted average remaining contractual life, exercisable (in years) | 5 years 3 months 12 days | |||||
Weighted average remaining contractual life, outstanding (in years) | 5 years 3 months 12 days | |||||
Aggregate intrinsic value, exercisable | $ 982 | |||||
Aggregate intrinsic value, outstanding | $ 982 | |||||
Options exercised (in shares) | 96,000 | 260,000 | 175,000 | |||
Fair value at issue date (in dollars per share) | $ 9.70 | |||||
Restricted stock units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 748,000 | 396,000 | 166,000 | |||
Weighted average grant date fair value | $ 20.43 | $ 20.65 | $ 17.39 | $ 16.99 | ||
SBS 2013 Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future issuance (in shares) | 2,400,000 | |||||
Performance-based restricted stock units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 3 years | |||||
Granted (in shares) | [1] | 474,000 | 255,000 | 206,000 | ||
Percentage Of Performance Measurement Based On Return On Invested Capital | 50.00% | |||||
Percent Of Performance Measurement Based On Adjusted Earnings Per Share | 50.00% | |||||
Weighted average grant date fair value | $ 20.36 | $ 19.37 | $ 16.35 | $ 0 | ||
Minimum [Member] | SBS 2013 Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 3 years | |||||
Minimum [Member] | Performance-based restricted stock units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 0 | |||||
Performance based shares available for vesting | 0 | |||||
Maximum [Member] | SBS 2013 Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 4 years | |||||
Expiration period | 10 years | |||||
Maximum [Member] | Performance-based restricted stock units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 600,000 | |||||
Performance based shares available for vesting | 600,000 | |||||
[1] | Represents the maximum number of performance-based restricted stock units which could be earned. |
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 | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 859,521 | $ 990,264 | $ 998,461 | $ 834,202 | $ 840,881 | $ 881,012 | $ 886,375 | $ 757,700 | $ 3,682,448 | $ 3,365,968 | $ 3,093,743 |
Gross profit | 229,230 | $ 241,303 | $ 239,599 | $ 199,084 | 196,086 | $ 209,545 | $ 211,687 | $ 178,197 | 909,216 | 795,515 | 741,965 |
Depreciation & amortization | 65,388 | 69,217 | 68,680 | ||||||||
Total assets | 1,576,111 | 1,473,350 | 1,576,111 | 1,473,350 | 1,395,014 | ||||||
Operating segments [Member] | Geographic divisions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,682,448 | 3,365,968 | 3,093,743 | ||||||||
Gross profit | 909,216 | 795,515 | 741,965 | ||||||||
Depreciation & amortization | 63,381 | 66,809 | 66,592 | ||||||||
Adjusted EBITDA | 340,464 | 250,061 | 244,616 | ||||||||
Total assets | 1,405,940 | 1,435,970 | 1,405,940 | 1,435,970 | 1,345,475 | ||||||
Other reconciling items [Member] | Other reconciling items [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Depreciation & amortization | 2,007 | 2,408 | 2,088 | ||||||||
Adjusted EBITDA | (74,585) | (50,058) | (50,726) | ||||||||
Total assets | $ 170,171 | $ 37,380 | $ 170,171 | $ 37,380 | $ 49,539 |
Segments (Reconciliation of adj
Segments (Reconciliation of adjusted EBITDA to consolidated financial statements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Income before income taxes | $ 156,914 | $ 81,827 | $ 45,146 | ||
Interest expense | 24,035 | 25,036 | 30,131 | ||
Interest income | (758) | 0 | 0 | ||
Depreciation and amortization | 65,388 | 69,217 | 68,680 | ||
Merger and integration costs | 3,998 | 15,336 | 15,340 | ||
Non-cash stock compensation expense | 11,315 | 6,769 | 7,252 | ||
Impairment of assets | 0 | 435 | 11,928 | ||
Inventory step-up charges | 0 | 0 | 2,884 | ||
Loss on debt extinguishment | 0 | 0 | 12,529 | ||
Sale of Coleman Floor | 656 | [1] | 0 | 0 | |
Acquisition costs | 1,829 | [2] | 424 | [2] | 0 |
Other items | 2,502 | [3] | 959 | [3] | 0 |
Other reconciling items [Member] | Other reconciling items [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Depreciation and amortization | 2,007 | 2,408 | 2,088 | ||
Adjusted EBITDA | 74,585 | 50,058 | 50,726 | ||
Operating segments [Member] | Geographic divisions [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Depreciation and amortization | 63,381 | 66,809 | 66,592 | ||
Adjusted EBITDA | $ (340,464) | $ (250,061) | $ (244,616) | ||
[1] | For the year ended December 31, 2018, the amount represents the loss on sale of Coleman Floor as well as other expenses incurred related to the disposition. | ||||
[2] | For the years ended December 31, 2018 and 2017, the amounts represent expenses incurred related to the acquisitions of Barefoot and Company (“Barefoot”), Locust Lumber, Shone Lumber, TexPly and Code Plus. For the year ended December 31, 2018, the amount also includes costs incurred related to the conversion of the enterprise resource planning system utilized by Shone Lumber. | ||||
[3] | For the year ended December 31, 2018, the amount represents costs incurred in connection with the departure of the Company’s former chief executive officer and the search for and appointment of his permanent replacement. For the year ended December 31, 2017, the amount represents expense incurred related to pending litigation of $3.0 million and income related to the final settlement of insurance claims made by the Company for a fire at one of the Company’s facilities during 2015 of $2.0 million. |
Segments Segments (External Cus
Segments Segments (External Customer Sales By Product) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 859,521 | $ 990,264 | $ 998,461 | $ 834,202 | $ 840,881 | $ 881,012 | $ 886,375 | $ 757,700 | $ 3,682,448 | $ 3,365,968 | $ 3,093,743 |
Structural components [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 622,105 | 522,619 | 461,761 | ||||||||
Lumber & lumber sheet goods [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 1,286,481 | 1,114,219 | 938,563 | ||||||||
Millwork, Doors And Windows [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 964,684 | 907,377 | 894,889 | ||||||||
Other building products & services [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 809,178 | $ 821,753 | $ 798,530 |
Segments (Narrative) (Details)
Segments (Narrative) (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2018 | Dec. 31, 2018segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating segments | 5 | ||||
Number of reportable segments | 1 | 1 | |||
Pending litigation expense | $ 3,000 | ||||
Final settlement of insurance claims | $ 0 | $ 1,991 | $ 1,003 |
Earnings Per Common Share (Basi
Earnings Per Common Share (Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Income (loss) attributable to common stockholders | $ 119,738 | $ 57,425 | $ 30,880 | ||||||||
Weighted average common shares outstanding, basic (in shares) | 67,273 | 66,900 | 66,055 | ||||||||
Weighted average common shares outstanding, diluted (in shares) | 67,748 | 67,404 | 66,609 | ||||||||
Basic EPS | |||||||||||
Net income (loss) per share (in dollars per share) | $ 0.42 | $ 0.53 | $ 0.60 | $ 0.23 | $ 0.26 | $ 0.28 | $ 0.26 | $ 0.06 | $ 1.78 | $ 0.86 | $ 0.47 |
Diluted EPS | |||||||||||
Net income (loss) per share (in dollars per share) | $ 0.41 | $ 0.53 | $ 0.60 | $ 0.23 | $ 0.26 | $ 0.27 | $ 0.26 | $ 0.06 | $ 1.77 | $ 0.85 | $ 0.46 |
Restricted stock [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Effect of dilutive securities | 16 | 65 | 207 | ||||||||
Restricted stock units [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Effect of dilutive securities | 324 | 235 | 129 | ||||||||
Stock options [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Effect of dilutive securities | 135 | 204 | 218 |
Earnings Per Common Share (Sche
Earnings Per Common Share (Schedule of anti-dilutive securities) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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) | 349 | 0 | 469 |
Restricted stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 |
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) | 85 | 0 | 5 |
Earnings Per Share Earnings P_2
Earnings Per Share Earnings Per Common Share (Narrative) (Details) - Performance-based restricted stock units [Member] | 12 Months Ended |
Dec. 31, 2018shares | |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance based shares available for vesting | 600,000 |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance based shares available for vesting | 0 |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Data Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 859,521 | $ 990,264 | $ 998,461 | $ 834,202 | $ 840,881 | $ 881,012 | $ 886,375 | $ 757,700 | $ 3,682,448 | $ 3,365,968 | $ 3,093,743 |
Gross profit | 229,230 | 241,303 | 239,599 | 199,084 | 196,086 | 209,545 | 211,687 | 178,197 | 909,216 | 795,515 | 741,965 |
Net income | $ 28,116 | $ 35,858 | $ 40,405 | $ 15,359 | $ 17,642 | $ 18,443 | $ 17,596 | $ 3,744 | $ 119,738 | $ 57,425 | $ 30,880 |
Basic income (loss) per share | |||||||||||
Net income (loss) per share (in dollars per share) | $ 0.42 | $ 0.53 | $ 0.60 | $ 0.23 | $ 0.26 | $ 0.28 | $ 0.26 | $ 0.06 | $ 1.78 | $ 0.86 | $ 0.47 |
Diluted income (loss) per share | |||||||||||
Net income (loss) per share (in dollars per share) | $ 0.41 | $ 0.53 | $ 0.60 | $ 0.23 | $ 0.26 | $ 0.27 | $ 0.26 | $ 0.06 | $ 1.77 | $ 0.85 | $ 0.46 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Feb. 08, 2019 | Jan. 14, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||||||
Initial holdback | $ 1,403 | $ 375 | $ 0 | |||
Barefoot And Locust [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Net sales before acquisition | $ 105,000 | |||||
Subsequent Event [Member] | Barefoot [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Subsequent event date | Jan. 14, 2019 | |||||
Subsequent Event [Member] | Locust [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Subsequent event date | Feb. 8, 2019 | |||||
Subsequent Event [Member] | Barefoot And Locust [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Purchase price | $ 54,500 | |||||
Initial holdback | $ 2,500 |