Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36307 | |
Entity Registrant Name | Installed Building Products, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3707650 | |
Entity Address, Address Line One | 495 South High Street | |
Entity Address, Address Line Two | Suite 50 | |
Entity Address, City or Town | Columbus | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43215 | |
City Area Code | 614 | |
Local Phone Number | 221-3399 | |
Title of 12(b) Security | Common Stock, | |
Trading Symbol | IBP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,404,505 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001580905 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 218,690 | $ 229,627 |
Accounts receivable (less allowance for credit losses of $10,059 and $9,549 at March 31, 2023 and December 31, 2022, respectively) | 397,573 | 397,222 |
Inventories | 170,115 | 176,629 |
Prepaid expenses and other current assets | 76,217 | 80,933 |
Total current assets | 862,595 | 884,411 |
Non-current assets | ||
Property and equipment, net | 126,384 | 118,774 |
Operating lease right-of-use assets | 74,602 | 76,174 |
Goodwill | 392,625 | 373,555 |
Intangibles, net | 289,601 | 283,473 |
Other non-current assets | 33,756 | 42,545 |
Total assets | 1,779,563 | 1,778,932 |
Current liabilities | ||
Current maturities of long-term debt | 31,165 | 30,983 |
Current maturities of operating lease obligations | 26,000 | 26,145 |
Current maturities of finance lease obligations | 2,588 | 2,508 |
Accounts payable | 134,836 | 149,186 |
Accrued compensation | 45,613 | 51,608 |
Other current liabilities | 76,136 | 67,631 |
Total current liabilities | 316,338 | 328,061 |
Long-term debt | 830,225 | 830,171 |
Operating lease obligations | 48,339 | 49,789 |
Finance lease obligations | 6,559 | 6,397 |
Deferred income taxes | 25,993 | 28,458 |
Other long-term liabilities | 46,887 | 42,557 |
Total liabilities | 1,274,341 | 1,285,433 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 0 | 0 |
Common stock; $0.01 par value: 100,000,000 authorized, 33,498,693 and 33,429,557 issued and 28,375,037 and 28,306,482 shares outstanding at March 31, 2023 and December 31, 2022, respectively | 335 | 334 |
Additional paid in capital | 232,503 | 228,827 |
Retained earnings | 527,468 | 513,095 |
Treasury stock; at cost: 5,123,656 and 5,123,075 shares at March 31, 2023 and December 31, 2022, respectively | (289,335) | (289,317) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 34,251 | 40,560 |
Total stockholders’ equity | 505,222 | 493,499 |
Total liabilities and stockholders’ equity | 1,779,563 | 1,778,932 |
Customer relationships | ||
Non-current assets | ||
Intangibles, net | 194,850 | 192,328 |
Other intangibles, net | ||
Non-current assets | ||
Intangibles, net | $ 94,751 | $ 91,145 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Allowance for credit losses | $ 10,059 | $ 9,549 |
Stockholders’ equity | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 33,498,693 | 33,429,557 |
Common stock, shares outstanding (in shares) | 28,375,037 | 28,306,482 |
Treasury stock (in shares) | 5,123,656 | 5,123,075 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net revenue | $ 659,309 | $ 587,492 |
Cost of sales | 448,887 | 415,089 |
Gross profit | 210,422 | 172,403 |
Operating expenses | ||
Selling | 32,607 | 25,192 |
Administrative | 89,504 | 79,144 |
Amortization | 11,435 | 11,097 |
Operating income | 76,876 | 56,970 |
Other expense, net | ||
Interest expense, net | 9,670 | 10,600 |
Other (income) expense | (153) | 145 |
Income before income taxes | 67,359 | 46,225 |
Income tax provision | 18,085 | 12,403 |
Net income | 49,274 | 33,822 |
Other comprehensive (loss) income, net of tax: | ||
Net change on cash flow hedges, net of tax benefit (provision) of $2,252 and $(6,430) for the three months ended March 31, 2023 and 2022, respectively. | (6,309) | 18,111 |
Comprehensive income | $ 42,965 | $ 51,933 |
Earnings Per Share: | ||
Basic (in USD per share) | $ 1.76 | $ 1.15 |
Diluted (in USD per share) | $ 1.74 | $ 1.14 |
Weighted average shares outstanding: | ||
Basic (in shares) | 28,075,678 | 29,302,396 |
Diluted (in shares) | 28,278,220 | 29,580,731 |
Cash dividends declared per share (in USD per share) | $ 1.23 | $ 1.22 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Unrealized loss on cash flow hedge, tax benefit | $ (2,252) | $ 6,430 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss) Income |
BEGINNING BALANCE (in shares) at Dec. 31, 2021 | 33,271,659 | |||||
BEGINNING BALANCE at Dec. 31, 2021 | $ 416,840 | $ 333 | $ 211,430 | $ 352,543 | $ (227) | |
BEGINING BALANCE, Treasury Stock (in shares) at Dec. 31, 2021 | (3,565,258) | |||||
BEGINING BALANCE, Treasury Stock at Dec. 31, 2021 | $ (147,239) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 33,822 | 33,822 | ||||
Issuance of common stock awards to employees (in shares) | 40,980 | |||||
Issuance of common stock awards to employees | 0 | $ 1 | (1) | |||
Surrender of common stock awards (in shares) | (50) | |||||
Surrender of common stock awards | 0 | $ 0 | ||||
Share-based compensation expense | 3,089 | 3,089 | ||||
Share-based compensation issued to directors (in shares) | ||||||
Share-based compensation issued to directors | 124 | 124 | ||||
Issuance of awards previously classified as liability awards (in shares) | 39,204 | |||||
Issuance of awards previously classified as liability awards | 4,000 | 4,000 | ||||
Dividends declared | (35,890) | (35,890) | ||||
Common stock repurchase (in shares) | (510,943) | |||||
Common stock repurchase | (49,865) | $ (49,865) | ||||
Other comprehensive (loss), net of tax | 18,111 | 18,111 | ||||
ENDING BALANCE (in shares) at Mar. 31, 2022 | 33,351,843 | |||||
ENDING BALANCE at Mar. 31, 2022 | $ 390,231 | $ 334 | 218,642 | 350,475 | 17,884 | |
ENDING BALANCE, Treasury Stock (in shares) at Mar. 31, 2022 | (4,076,251) | |||||
ENDING BALANCE, Treasury Stock at Mar. 31, 2022 | $ (197,104) | |||||
BEGINNING BALANCE (in shares) at Dec. 31, 2022 | 33,429,557 | 33,429,557 | ||||
BEGINNING BALANCE at Dec. 31, 2022 | $ 493,499 | $ 334 | 228,827 | 513,095 | 40,560 | |
BEGINING BALANCE, Treasury Stock (in shares) at Dec. 31, 2022 | (5,123,075) | (5,123,075) | ||||
BEGINING BALANCE, Treasury Stock at Dec. 31, 2022 | $ (289,317) | $ (289,317) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 49,274 | 49,274 | ||||
Issuance of common stock awards to employees (in shares) | 69,136 | |||||
Issuance of common stock awards to employees | 0 | $ 1 | (1) | |||
Surrender of common stock awards (in shares) | (581) | |||||
Surrender of common stock awards | (18) | $ (18) | ||||
Share-based compensation expense | 3,529 | 3,529 | ||||
Share-based compensation issued to directors | 148 | 148 | ||||
Dividends declared | $ (34,901) | (34,901) | ||||
Common stock repurchase (in shares) | (511,000) | |||||
Common stock repurchase | $ (49,900) | |||||
Other comprehensive (loss), net of tax | $ (6,309) | (6,309) | ||||
ENDING BALANCE (in shares) at Mar. 31, 2023 | 33,498,693 | 33,498,693 | ||||
ENDING BALANCE at Mar. 31, 2023 | $ 505,222 | $ 335 | $ 232,503 | $ 527,468 | $ 34,251 | |
ENDING BALANCE, Treasury Stock (in shares) at Mar. 31, 2023 | (5,123,656) | (5,123,656) | ||||
ENDING BALANCE, Treasury Stock at Mar. 31, 2023 | $ (289,335) | $ (289,335) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in USD per share) | $ 1.23 | $ 1.22 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net income | $ 49,274 | $ 33,822 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization of property and equipment | 12,525 | 11,329 |
Amortization of operating lease right-of-use assets | 7,316 | 6,371 |
Amortization of intangibles | 11,435 | 11,097 |
Amortization of deferred financing costs and debt discount | 475 | 484 |
Provision for credit losses | 1,678 | 653 |
Gain on sale of property and equipment | (639) | (92) |
Noncash stock compensation | 3,436 | 3,418 |
Other, net | (2,523) | 790 |
Changes in assets and liabilities, excluding effects of acquisitions | ||
Accounts receivable | 1,716 | (32,700) |
Inventories | 7,699 | (16,300) |
Other assets | 4,434 | 169 |
Accounts payable | (16,906) | 16,486 |
Income taxes receivable/payable | 16,450 | 11,433 |
Other liabilities | (22,537) | 1,265 |
Net cash provided by operating activities | 73,833 | 48,225 |
Cash flows from investing activities | ||
Purchases of investments | 0 | (49,957) |
Purchases of property and equipment | (14,949) | (10,362) |
Acquisitions of businesses, net of cash acquired of $10 and $0 in 2023 and 2022, respectively | (38,008) | (8,050) |
Proceeds from sale of property and equipment | 741 | 265 |
Other | 4,602 | (614) |
Net cash used in investing activities | (47,614) | (68,718) |
Cash flows from financing activities | ||
Payments on Term Loan | (1,250) | (1,250) |
Proceeds from vehicle and equipment notes payable | 8,119 | 4,752 |
Debt issuance costs | 0 | (627) |
Principal payments on long-term debt | (7,024) | (6,618) |
Principal payments on finance lease obligations | (727) | (521) |
Dividends paid | (34,536) | (35,426) |
Acquisition-related obligations | (1,720) | (6,003) |
Repurchase of common stock | 0 | (49,865) |
Surrender of common stock awards by employees | (18) | 0 |
Net cash used in financing activities | (37,156) | (95,558) |
Net change in cash and cash equivalents | (10,937) | (116,051) |
Cash and cash equivalents at beginning of period | 229,627 | 333,485 |
Cash and cash equivalents at end of period | 218,690 | 217,434 |
Supplemental disclosures of cash flow information | ||
Interest | 14,658 | 14,293 |
Income taxes, net of refunds | 1,524 | 1,088 |
Supplemental disclosure of noncash activities | ||
Right-of-use assets obtained in exchange for operating lease obligations | 5,650 | 5,514 |
Property and equipment obtained in exchange for finance lease obligations | 957 | 544 |
Seller obligations in connection with acquisition of businesses | 6,035 | 1,878 |
Unpaid purchases of property and equipment included in accounts payable | $ 2,316 | $ 1,884 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from investing activities | ||
Cash acquired, net | $ 10 | $ 0 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION Installed Building Products (“IBP”), a Delaware corporation formed on October 28, 2011, and its wholly-owned subsidiaries (collectively referred to as the “Company,” and “we,” “us” and “our”) primarily install insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company operates in more than 240 locations and its corporate office is located in Columbus, Ohio. The vast majority of our sales originate from our one reportable segment, Installation. Substantially all of our Installation segment sales are derived from the service-based installation of various products in the residential new construction, repair and remodel and commercial construction end markets from our national network of branch locations. Each of our Installation branches has the capacity to serve all of our end markets. See Note 3, Revenue Recognition, for information on our revenues by product and end market, and see Note 10, Information on Segments, for information on how we segment the business. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include all of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The information furnished in the Condensed Consolidated Financial Statements includes normal recurring adjustments and reflects all adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations and statements of financial position for the interim periods presented. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) have been omitted pursuant to such rules and regulations. We believe that the disclosures are adequate to prevent the information presented from being misleading when read in conjunction with our audited consolidated financial statements and the notes thereto included in Part II, Item 8, Financial Statements and Supplementary Data, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (“2022 Form 10-K”), as filed with the SEC on February 22, 2023. The December 31, 2022 Condensed Consolidated Balance Sheet data herein was derived from the audited consolidated financial statements but the related footnotes do not include all disclosures required by U.S. GAAP. Our interim operating results for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected in future operating quarters. Note 2 to the audited consolidated financial statements in our 2022 Form 10-K describes the significant accounting policies and estimates used in preparation of the audited consolidated financial statements. Other than the recently implemented accounting policy described below, there have been no changes to our significant accounting policies during the three months ended March 31, 2023. Recently Adopted Accounting Pronouncements Standard Effective Date Adoption ASU 2021-08, Business Combinations (Topic 805): Accounting for contract assets and contract liabilities from contracts with customers December 15, 2022 This pronouncement amended Topic 805 to require an acquirer to account for revenue contracts in a business combination in accordance with Topic 606 as if the acquirer had originated the contracts. This did not have a material impact on our consolidated financial statements Recently Issued Accounting Pronouncements Not Yet Adopted We are currently evaluating the impact of the following Accounting Standards Update ("ASU") on our Condensed Consolidated Financial Statements or Notes to Condensed Consolidated Financial Statements: Standard Description Effective Date Effect on the financial statements or other significant matters ASU 2023-01 Leases (Topic 842): Common Control Arrangements This pronouncement amends Topic 842 to require all entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. Annual periods beginning after December 15, 2023, including interim periods therein. Early adoption is permitted. We are currently assessing the impact of adoption on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION We disaggregate our revenue from contracts with customers for our Installation segment by end market and product, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenues for the Other category are presented net of intercompany sales in the tables below. The following tables present our net revenues disaggregated by end market and product (in thousands): Three months ended March 31, 2023 2022 Installation: Residential new construction $ 475,095 72 % $ 442,404 75 % Repair and remodel 37,675 6 % 32,641 6 % Commercial 109,972 16 % 86,586 15 % Net revenue, Installation $ 622,742 94 % $ 561,631 96 % Other 36,567 6 % 25,861 4 % Net revenue, as reported $ 659,309 100 % $ 587,492 100 % Three months ended March 31, 2023 2022 Installation: Insulation $ 394,043 60 % $ 364,943 63 % Shower doors, shelving and mirrors 45,513 7 % 36,340 6 % Garage doors 43,312 7 % 35,979 6 % Waterproofing 29,939 4 % 29,022 5 % Rain gutters 27,800 4 % 23,546 4 % Window Blinds 15,881 2 % 13,058 2 % Fireproofing/firestopping 15,175 2 % 15,922 3 % Other building products 51,079 8 % 42,821 7 % Net revenue, Installation $ 622,742 94 % $ 561,631 96 % Other 36,567 6 % 25,861 4 % Net revenue, as reported $ 659,309 100 % $ 587,492 100 % Contract Assets and Liabilities Our contract assets consist of unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized, based on costs incurred, exceeds the amount billed to the customer. Our contract assets are recorded in other current assets in our Condensed Consolidated Balance Sheets. Our contract liabilities consist of customer deposits and billings in excess of revenue recognized, based on costs incurred and are included in other current liabilities in our Condensed Consolidated Balance Sheets. Contract assets and liabilities related to our uncompleted contracts and customer deposits were as follows (in thousands): March 31, 2023 December 31, 2022 Contract assets $ 36,048 $ 29,431 Contract liabilities (17,331) (18,884) Uncompleted contracts were as follows (in thousands): March 31, 2023 December 31, 2022 Costs incurred on uncompleted contracts $ 279,994 $ 273,788 Estimated earnings 116,621 114,781 Total 396,615 388,569 Less: Billings to date 369,686 368,009 Net under billings $ 26,929 $ 20,560 Net under billings were as follows (in thousands): March 31, 2023 December 31, 2022 Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) $ 36,048 $ 29,431 Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) (9,119) (8,871) Net under billings $ 26,929 $ 20,560 The difference between contract assets and contract liabilities as of March 31, 2023 compared to December 31, 2022 is primarily the result of timing differences between our performance of obligations under contracts and customer payments and billings. During three months ended March 31, 2023, we recognized $15.8 million of revenue that was included in the contract liability balance at December 31, 2022. We did not recognize any impairment losses on our receivables and contract assets during the three months ended March 31, 2023 or 2022. Remaining performance obligations represent the transaction price of contracts for which work has not been performed and excludes unexercised contract options and potential modifications. As of March 31, 2023, the aggregate amount of the transaction price allocated to remaining uncompleted contracts was $154.3 million. We expect to satisfy remaining performance obligations and recognize revenue on substantially all of these uncompleted contracts over the next 18 months. |
Credit Losses
Credit Losses | 3 Months Ended |
Mar. 31, 2023 | |
Credit Loss [Abstract] | |
Credit Losses | CREDIT LOSSES Our expected loss allowance methodology for accounts receivable is developed using historical experience, present economic conditions and other relevant factors management considers relevant to estimate expected credit losses. We also perform ongoing evaluations of creditworthiness of our existing and potential customers. Changes in our allowance for credit losses were as follows (in thousands): Balance as of January 1, 2023 $ 9,549 Current period provision 1,678 Recoveries collected and additions 61 Amounts written off (1,229) Balance as of March 31, 2023 $ 10,059 |
Investments and Cash and Cash E
Investments and Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2023 | |
Investments [Abstract] | |
Investments and Cash and Cash Equivalents | CASH AND CASH EQUIVALENTSCash and cash equivalents include highly liquid instruments with insignificant interest rate risk and original or remaining maturities of three months or less at the time of purchase. These instruments amounted to approximately $197.9 million and $191.9 million as of March 31, 2023 and December 31, 2022, respectively. See Note 9, Fair Value Measurements, for additional information. |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | GOODWILL AND INTANGIBLES Goodwill The change in carrying amount of goodwill was as follows (in thousands): Installation Other Consolidated Goodwill (gross) - January 1, 2023 $ 355,226 $ 88,333 $ 443,559 Business combinations 13,540 — 13,540 Other 257 5,273 5,530 Goodwill (gross) - March 31, 2023 369,023 93,606 462,629 Accumulated impairment losses (70,004) — (70,004) Goodwill (net) - March 31, 2023 $ 299,019 $ 93,606 $ 392,625 Other changes presented in the above table primarily include adjustments for the allocation of certain acquisitions still under measurement made during the three months ended March 31, 2023, including a change in tax election that resulted in a $4.9 million change in purchase price for a 2022 acquisition. For additional information regarding changes to goodwill resulting from acquisitions, see Note 17, Business Combinations. We test goodwill for impairment annually during the fourth quarter of our fiscal year or earlier if there is an impairment indicator. Accumulated impairment losses included within the above table were incurred over multiple periods and were all associated with the Installation segment, with the latest impairment charge being recorded during the year ended December 31, 2010. Intangibles, net The following table provides the gross carrying amount, accumulated amortization and net book value for each major class of intangibles (in thousands): As of March 31, As of December 31, 2023 2022 Gross Accumulated Net Gross Accumulated Net Amortized intangibles: Customer relationships $ 349,019 $ 154,169 $ 194,850 $ 338,050 $ 145,722 $ 192,328 Covenants not-to-compete 31,207 21,028 10,179 30,899 20,086 10,813 Trademarks and tradenames 125,078 41,518 83,560 119,612 39,638 79,974 Backlog 21,635 20,623 1,012 20,815 20,457 358 $ 526,939 $ 237,338 $ 289,601 $ 509,376 $ 225,903 $ 283,473 The gross carrying amount of intangibles increased approximately $17.6 million during the three months ended March 31, 2023 primarily due to business combinations. For more information, see Note 17, Business Combinations. Remaining estimated aggregate annual amortization expense is as follows (amounts, in thousands, are for the fiscal year ended): Remainder of 2023 $ 32,834 2024 39,843 2025 34,301 2026 30,350 2027 26,064 Thereafter 126,209 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT Long-term debt consisted of the following (in thousands): As of March 31, As of December 31, 2023 2022 Senior Notes due 2028, net of unamortized debt issuance costs of $2,887 and $3,036, respectively $ 297,113 $ 296,964 Term loan, net of unamortized debt issuance costs of $5,524 and $5,767, respectively 488,226 489,233 Vehicle and equipment notes, maturing through March 2028; payable in various monthly installments, including interest rates ranging from 1.9% to 6.2% 74,078 72,984 Various notes payable, maturing through April 2025; payable in various monthly installments, including interest rates ranging from 2.0% to 5.0% 1,973 1,973 861,390 861,154 Less: current maturities (31,165) (30,983) Long-term debt, less current maturities $ 830,225 $ 830,171 Remaining required repayments of debt principal, gross of unamortized debt issuance costs, as of March 31, 2023 are as follows (in thousands): Remainder of 2023 $ 23,976 2024 27,027 2025 21,201 2026 16,250 2027 11,002 Thereafter 770,345 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | LEASESWe lease various assets in the ordinary course of business as follows: warehouses to store our materials and perform staging activities for certain products we install, various office spaces for selling and administrative activities to support our business, and certain vehicles and equipment to facilitate our operations, including, but not limited to, trucks, forklifts and office equipment. The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets: As of March 31, As of December 31, (in thousands) Classification 2023 2022 Assets Non-Current Operating Operating lease right-of-use assets $ 74,602 $ 76,174 Finance Property and equipment, net 9,159 8,928 Total lease assets $ 83,761 $ 85,102 Liabilities Current Operating Current maturities of operating lease obligations $ 26,000 $ 26,145 Financing Current maturities of finance lease obligations 2,588 2,508 Non-Current Operating Operating lease obligations 48,339 49,789 Financing Finance lease obligations 6,559 6,397 Total lease liabilities $ 83,486 $ 84,839 Weighted-average remaining lease term: Operating leases 3.9 years 4.0 years Finance leases 3.8 years 3.6 years Weighted-average discount rate: Operating leases 4.60 % 4.41 % Finance leases 6.08 % 5.76 % Lease Costs The table below presents certain information related to the lease costs for finance and operating leases: Three months ended March 31, (in thousands) Classification 2023 2022 Operating lease cost (1) Administrative $ 9,203 $ 7,759 Finance lease cost: Amortization of leased assets (2) Cost of sales 977 716 Interest on finance lease obligations Interest expense, net 131 61 Total lease costs $ 10,311 $ 8,536 (1) Includes variable lease costs of $1.2 million and $0.9 million for the three months ended March 31, 2023 and 2022, respectively, and short-term lease costs of $0.3 million for each of the three months ended March 31, 2023 and 2022. (2) Includes variable lease costs of $0.2 million for each of the three months ended March 31, 2023 and 2022. Other Information The table below presents supplemental cash flow information related to leases (in thousands): Three months ended March 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 7,691 $ 6,463 Operating cash flows for finance leases 131 61 Financing cash flows for finance leases 727 521 Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet as of March 31, 2023 (in thousands): Finance Leases Operating Leases Related Party Other Total Operating Remainder of 2023 $ 2,354 $ 1,068 $ 21,268 $ 22,336 2024 2,668 1,175 21,565 22,740 2025 2,299 1,017 14,742 15,759 2026 1,968 — 9,616 9,616 2027 997 — 5,252 5,252 Thereafter 17 — 5,559 5,559 Total minimum lease payments 10,303 $ 3,260 $ 78,002 81,262 Less: Amounts representing executory costs (2) — Less: Amounts representing interest (1,154) (6,923) Present value of future minimum lease payments 9,147 74,339 Less: Current obligation under leases (2,588) (26,000) Long-term lease obligations $ 6,559 $ 48,339 |
Leases | LEASESWe lease various assets in the ordinary course of business as follows: warehouses to store our materials and perform staging activities for certain products we install, various office spaces for selling and administrative activities to support our business, and certain vehicles and equipment to facilitate our operations, including, but not limited to, trucks, forklifts and office equipment. The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets: As of March 31, As of December 31, (in thousands) Classification 2023 2022 Assets Non-Current Operating Operating lease right-of-use assets $ 74,602 $ 76,174 Finance Property and equipment, net 9,159 8,928 Total lease assets $ 83,761 $ 85,102 Liabilities Current Operating Current maturities of operating lease obligations $ 26,000 $ 26,145 Financing Current maturities of finance lease obligations 2,588 2,508 Non-Current Operating Operating lease obligations 48,339 49,789 Financing Finance lease obligations 6,559 6,397 Total lease liabilities $ 83,486 $ 84,839 Weighted-average remaining lease term: Operating leases 3.9 years 4.0 years Finance leases 3.8 years 3.6 years Weighted-average discount rate: Operating leases 4.60 % 4.41 % Finance leases 6.08 % 5.76 % Lease Costs The table below presents certain information related to the lease costs for finance and operating leases: Three months ended March 31, (in thousands) Classification 2023 2022 Operating lease cost (1) Administrative $ 9,203 $ 7,759 Finance lease cost: Amortization of leased assets (2) Cost of sales 977 716 Interest on finance lease obligations Interest expense, net 131 61 Total lease costs $ 10,311 $ 8,536 (1) Includes variable lease costs of $1.2 million and $0.9 million for the three months ended March 31, 2023 and 2022, respectively, and short-term lease costs of $0.3 million for each of the three months ended March 31, 2023 and 2022. (2) Includes variable lease costs of $0.2 million for each of the three months ended March 31, 2023 and 2022. Other Information The table below presents supplemental cash flow information related to leases (in thousands): Three months ended March 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 7,691 $ 6,463 Operating cash flows for finance leases 131 61 Financing cash flows for finance leases 727 521 Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet as of March 31, 2023 (in thousands): Finance Leases Operating Leases Related Party Other Total Operating Remainder of 2023 $ 2,354 $ 1,068 $ 21,268 $ 22,336 2024 2,668 1,175 21,565 22,740 2025 2,299 1,017 14,742 15,759 2026 1,968 — 9,616 9,616 2027 997 — 5,252 5,252 Thereafter 17 — 5,559 5,559 Total minimum lease payments 10,303 $ 3,260 $ 78,002 81,262 Less: Amounts representing executory costs (2) — Less: Amounts representing interest (1,154) (6,923) Present value of future minimum lease payments 9,147 74,339 Less: Current obligation under leases (2,588) (26,000) Long-term lease obligations $ 6,559 $ 48,339 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. During the periods presented, there were no transfers between fair value hierarchical levels. Assets Measured at Fair Value on a Nonrecurring Basis Certain assets, specifically other intangible and long-lived assets, are measured at fair value on a nonrecurring basis in periods subsequent to initial recognition. Assets measured at fair value on a nonrecurring basis as of March 31, 2023 and December 31, 2022 are categorized based on the lowest level of significant input to the valuation. The assets are measured at fair value when our impairment assessment indicates a carrying value for each of the assets in excess of the asset’s estimated fair value. Undiscounted cash flows, a Level 3 input, are utilized in determining estimated fair values. During each of the three months ended March 31, 2023 and 2022, we did not record any impairments on these assets required to be measured at fair value on a nonrecurring basis. Estimated Fair Value of Financial Instruments Accounts receivable, accounts payable and accrued liabilities as of March 31, 2023 and December 31, 2022 approximate fair value due to the short-term maturities of these financial instruments. The carrying amounts of certain long-term debt, including the Term Loan and ABL Revolver as of March 31, 2023 and December 31, 2022, approximate fair value due to the variable rate nature of the agreements. The carrying amounts of our operating lease right-of-use assets and the obligations associated with our operating and finance leases as well as our vehicle and equipment notes approximate fair value as of March 31, 2023 and December 31, 2022. All debt classifications represent Level 2 fair value measurements. Derivative financial instruments are measured at fair value based on observable market information and appropriate valuation methods. Contingent consideration liabilities arise from future earnout payments to the sellers associated with certain acquisitions and are based on predetermined calculations of certain future results. These future payments are estimated by considering various factors, including business risk and projections. The contingent consideration liabilities are measured at fair value by discounting estimated future payments, calculated based on a weighted average of various future forecast scenarios, to their net present value. Fair value in the Condensed Consolidated Balance Sheets and not described above were as follows (in thousands): As of March 31, 2023 As of December 31, 2022 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Financial assets: Cash equivalents $ 197,910 $ 197,910 $ — $ — $ 191,881 $ 191,881 $ — $ — Derivative financial instruments 30,020 — 30,020 — 38,671 — 38,671 — Total financial assets $ 227,930 $ 197,910 $ 30,020 $ — $ 230,552 $ 191,881 $ 38,671 $ — Financial liabilities: Contingent consideration $ 968 $ — $ — $ 968 $ 1,858 $ — $ — $ 1,858 Derivative financial instruments 1,014 — 1,014 — — — — — Total financial liabilities $ 1,982 $ — $ 1,014 $ 968 $ 1,858 $ — $ — $ 1,858 See Note 5, Cash and Cash Equivalents, for more information on cash equivalents included in the table above. Also see Note 11, Derivatives and Hedging Activities, for more information on derivative financial instruments. The change in fair value of the contingent consideration (a Level 3 input) was as follows (in thousands): Contingent consideration liability - January 1, 2023 $ 1,858 Accretion in value 110 Amounts paid to sellers (1,000) Contingent consideration liability - March 31, 2023 $ 968 The accretion in value of contingent consideration liabilities is included within administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income. The carrying value and associated fair value of financial assets and liabilities that are not recorded at fair value in the Condensed Consolidated Balance Sheets and not described above include our Senior Notes. To estimate the fair value of our Senior Notes, we utilized third-party quotes which are derived all or in part from model prices, external sources or market prices. The Senior Notes represent a Level 2 fair value measurement and are as follows (in thousands): As of March 31, 2023 As of December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Senior Notes (1) $ 300,000 $ 278,709 $ 300,000 $ 270,993 (1) Excludes the impact of unamortized debt issuance costs. See Note 5, Cash and Cash Equivalents, for more information on investments included in the table above. Also see Note 7, Long-Term Debt, for more information on our Senior Notes. |
Information on Segments
Information on Segments | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Information on Segments | INFORMATION ON SEGMENTS Our segment structure includes three operating segments consisting of Installation, Distribution and Manufacturing. Our Installation operating segment represents the majority of our net revenue and gross profit and forms our one reportable segment. This operating segment represents the service-based installation of insulation and complementary building products in the residential new construction, repair and remodel and commercial construction end markets from our national network of branch locations. These branch locations have similar economic and operating characteristics including the nature of products and services offered, operating procedures and risks, customer bases, employee incentives, material procurement and shared corporate resources and therefore combine to form one operating segment. The Other category reported below reflects the operations of our two remaining operating segments, Distribution and Manufacturing, which do not meet the quantitative thresholds for separate reporting. Our Distribution operating segment includes our businesses that sell insulation, gutters and accessories primarily to installers of these products who operate in multiple end markets. Our Manufacturing operating segment consists of our cellulose insulation manufacturing operation. In addition to sales of cellulose insulation, revenues from this operating segment consist of sales of asphalt and industrial fibers to distributors and installers of these products. The Installation reportable segment includes substantially all of our net revenue from services while net revenue included in the Other category includes substantially all of our net revenue from sales of products. The intercompany sales from the Other category to the Installation reportable segment include a profit margin while our Installation segment records these transactions at cost. The key metrics used to assess the performance of our operating segments are revenue and segment gross profit as these are the metrics used by our Chief Executive Officer, who is also our Chief Operating Decision Maker ("CODM"), to review results, assess performance and allocate resources. We define segment gross profit as revenue less cost of sales, excluding depreciation and amortization. We do not report total assets, depreciation and amortization expenses included in reported cost of sales, operating expenses or other expense, net by segment because our CODM does not use this information to assess segment performance or allocate resources. The following tables represent our segment information for the three months ended March 31, 2023 and 2022 (in thousands): Three months ended March 31, 2023 Installation Other Eliminations Consolidated Revenue $ 622,742 $ 38,722 $ (2,155) $ 659,309 Cost of sales (1) 410,384 28,459 (1,766) 437,077 Segment gross profit $ 212,358 $ 10,263 $ (389) $ 222,232 Segment gross profit percentage 34.1 % 26.5 % 18.1 % 33.7 % Three months ended March 31, 2022 Installation Other Eliminations Consolidated Revenue $ 561,631 $ 26,650 $ (789) $ 587,492 Cost of sales (1) 385,692 19,373 (609) 404,456 Segment gross profit $ 175,939 $ 7,277 $ (180) $ 183,036 Segment gross profit percentage 31.3 % 27.3 % 22.8 % 31.2 % (1) Cost of sales included in segment gross profit is exclusive of depreciation and amortization for the three months ended March 31, 2023 and 2022. The reconciliation between consolidated segment gross profit for each period as shown in the tables above to consolidated income before income taxes is as follows: Three months ended March 31, 2023 2022 Segment gross profit - consolidated $ 222,232 $ 183,036 Depreciation and amortization (1) 11,810 10,633 Gross profit, as reported 210,422 172,403 Operating expenses 133,546 115,433 Operating income 76,876 56,970 Other expense, net 9,517 10,745 Income before income taxes $ 67,359 $ 46,225 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Cash Flow Hedges of Interest Rate Risk Our purpose for using interest rate derivatives is to add stability to interest expense and to manage our exposure to interest rate movements. During the three months ended March 31, 2023, we used interest rate swaps to hedge the variable cash flows associated with existing variable-rate debt. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. We do not use derivatives for trading or speculative purposes and we currently do not have any derivatives that are not designated as hedges. As of March 31, 2023, we have not posted any collateral related to these agreements. As of March 31, 2023 and December 31, 2022, we had the following interest rate swap derivatives outstanding: Effective Date Notional Amount Fixed Rate Maturity Date (in millions) July 30, 2021 $ 200.0 0.51 % December 31, 2025 December 31, 2021 100.0 1.37 % December 31, 2025 December 31, 2021 100.0 1.37 % December 31, 2025 December 31, 2025 300.0 3.09 % December 14, 2028 December 31, 2025 100.0 2.98 % December 14, 2028 As of March 31, 2023, our two forward interest rate swaps, combined with our three active swaps, serve to hedge $400.0 million of the variable cash flows on our variable rate Term Loan through maturity. The assets and liabilities associated with these interest rate swaps are included in other current assets, other non-current assets and other long-term liabilities on the Consolidated Balance Sheets at their fair value amounts as described in Note 9, Fair Value Measurements. In July 2022, we amended the maturity date of each of our three active interest rate swaps to December 31, 2025 with the other terms remaining unchanged. The remaining unrealized gains will be amortized as a decrease to interest expense, net through the original maturity dates of April 15, 2030 and December 15, 2028. For the three months ended March 31, 2023, we amortized $1.7 million of the remaining unrealized gains as a decrease to interest expense, net. The amended swaps included off-market terms at inception. This other-than-insignificant financing element will be amortized as an increase to interest expense, net through the December 31, 2025 maturity date of the amended swaps. For the three months ended March 31, 2023, we amortized $1.8 million of the financing element as an increase to interest expense, net. Future net cash settlements are recognized through cash flows from investing activities in the Condensed Consolidated Statements of Cash Flows due to the other-than-insignificant financing element. In August 2020, we terminated two then-existing interest rate swaps and one then-existing forward interest rate swap. During the three months ended March 31, 2023 and 2022 we amortized $1.0 million and $0.8 million, respectively, of the remaining unrealized loss as an increase to interest expense, net. The changes in the fair value of derivatives designated, and that qualify, as cash flow hedges are recorded in other comprehensive income, net of tax on the Condensed Consolidated Statements of Operations and Comprehensive Income and in accumulated other comprehensive income on the Condensed Consolidated Balance Sheets and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. We had no such changes during the three months ended March 31, 2023 and 2022. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense, net as interest payments are made on our variable-rate debt, and as our terminated and amended swaps are amortized. Over the next twelve months, we estimate that an additional $10.4 million will be reclassified as a decrease to interest expense, net. The following table summarizes amounts recorded to interest expense Three months ended March 31, 2023 2022 (Benefit) expense associated with swap net settlements $ (3,593) $ 795 Expense associated with amortization of amended/terminated swaps 1,104 790 LIBOR was used as a reference rate for our interest rate swap agreements we use to hedge our interest rate exposure. The Intercontinental Exchange Benchmark Administration, the administrator of LIBOR, announced in March 2021 its intention to extend the publication of certain LIBOR settings, including the setting we use as a reference rate, to June 2023. In January 2020, the Financial Accounting Standards Board (the "FASB") issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848) and in January 2021, the FASB subsequently issued ASU 2021-01, Reference Rate Reform - Scope, which clarified the scope and application of the original guidance. The purpose of this guidance is to provide relief for impacted areas as it relates to impending reference rate reform. We elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. See Note 19, Subsequent Events, for information on a change regarding the reference rate for our interest rate swaps. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Accumulated other comprehensive income The change in accumulated other comprehensive income related to our interest rate derivatives, net of taxes, was as follows (in thousands): Three months ended March 31, 2023 2022 Accumulated gain (loss) at beginning of period $ 40,560 $ (227) Unrealized (losses) gains in fair value (7,126) 17,527 Reclassifications of realized net losses to earnings 817 584 Accumulated gain at end of period $ 34,251 $ 17,884 The reclassifications of realized net losses to earnings in the above table are recorded within interest expense, net. Share repurchases During the three months ended March 31, 2023 we did not repurchase any common stock. During the three months ended March 31, 2022 we repurchased approximately 511 thousand shares of our common stock with an aggregate price of approximately $49.9 million, or $97.57 average price per share. The effect of these treasury shares in reducing the number of common shares outstanding is reflected in our earnings per share calculation. On February 22, 2023, we announced that our board of directors authorized a new stock repurchase program that allows for the repurchase of up to $200.0 million of our outstanding common stock. The new program replaces the previous program and is in effect through March 1, 2024. Dividends During the three months ended March 31, 2023, we declared and paid the following cash dividends (amount declared and amount paid in thousands): Declaration Date Record Date Payment Date Dividend Per Share Amount Declared Amount Paid 2/22/2023 3/15/2023 3/31/2023 $ 0.90 $ 25,537 $ 25,270 2/22/2023 3/15/2023 3/31/2023 0.33 9,364 9,266 During the three months ended March 31, 2022, we declared and paid the following cash dividends (amount declared and amount paid in thousands): Declaration Date Record Date Payment Date Dividend Per Share Amount Declared Amount Paid 2/24/2022 3/15/2022 3/31/2022 $ 0.90 $ 26,585 $ 26,242 2/24/2022 3/15/2022 3/31/2022 0.315 9,305 9,184 |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2023 | |
Postemployment Benefits [Abstract] | |
Employee Benefits | EMPLOYEE BENEFITS Healthcare We participate in multiple healthcare plans, the largest of which is partially self-funded with an insurance company paying benefits in excess of stop loss limits per individual/family. Our healthcare benefit expense (net of employee contributions) was $7.4 million and $8.9 million for the three months ended March 31, 2023 and 2022, respectively. An accrual for estimated healthcare claims incurred but not reported (“IBNR”) is included within accrued compensation on the Condensed Consolidated Balance Sheets and was $4.3 million and $3.8 million as of March 31, 2023 and December 31, 2022, respectively. Workers’ Compensation Workers’ compensation expense totaled $5.8 million and $5.7 million for the three months ended March 31, 2023 and 2022, respectively. Workers’ compensation known claims and IBNR reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands): March 31, 2023 December 31, 2022 Included in other current liabilities $ 8,782 $ 9,946 Included in other long-term liabilities 16,550 13,730 $ 25,332 $ 23,676 We also had an insurance receivable for claims that exceeded the stop loss limit under our self-insured policies as well as claims under our fully insured policies included on the Condensed Consolidated Balance Sheets. This receivable offsets an equal liability included within the reserve amounts noted above and was as follows (in thousands): March 31, 2023 December 31, 2022 Included in other non-current assets $ 2,743 $ 2,318 Retirement Plans We participate in multiple 401(k) plans, whereby we provide a matching contribution of wages deferred by employees and can also make discretionary contributions to each plan. Certain plans allow for discretionary employer contributions only. These plans cover substantially all our eligible employees. We recognized 401(k) plan expenses of $0.9 million and $0.8 million during the three months ended March 31, 2023 and 2022, respectively. These expenses are included in administrative expenses on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. Multiemployer Pension Plans We participate in various multiemployer pension plans under collective bargaining agreements in Washington, Oregon, California and Illinois with other companies in the construction industry. These plans cover our union-represented employees and contributions to these plans are expensed as incurred. These plans generally provide for retirement, death and/or termination benefits for eligible employees within the applicable collective bargaining units, based on specific eligibility/participation requirements, vesting periods and benefit formulas. We do not participate in any multiemployer pension plans that are considered to be individually significant. Share-Based Compensation Common Stock Awards We periodically grant shares of our common stock to non-employee members of our board of directors and our employees. During the three months ended March 31, 2023 and 2022, we did not grant any such shares under our 2014 Omnibus Incentive Plan to non-employee members of our board of directors or employees. Employees – Performance-Based Stock Awards During the three months ended March 31, 2023, we issued approximately 61 thousand shares of our common stock to certain officers, which vest in two equal installments on each of April 20, 2024 and April 20, 2025. In addition, during the three months ended March 31, 2023, we established, and our board of directors approved, performance-based targets in connection with common stock awards to be issued to certain officers in 2024 contingent upon achievement of these targets. In addition, there are long-term performance-based restricted stock awards to be issued to certain employees annually through 2024 contingent upon achievement of certain performance targets. These awards are accounted for as liability-based awards since they represent a predominantly-fixed monetary amount that will be settled with a variable number of common shares in the first quarter of 2025 and as such are included in other long-term liabilities on the Condensed Consolidated Balance Sheets. During the three months ended March 31, 2023 and 2022, we granted approximately 8 thousand and 39 thousand shares of our common stock, respectively. The shares granted in 2023 will vest in 2025, and the shares granted in 2022 vested in the second quarter of 2022. Employees – Performance-Based Restricted Stock Units During 2022, we established, and our board of directors approved, performance-based restricted stock units in connection with common stock awards to be issued to certain employees in 2023 based upon achievement of a performance target. These units will be accounted for as equity-based awards that will be settled with a fixed number of common shares. Share-Based Compensation Summary Amounts and changes for each category of equity-based award were as follows: Common Stock Awards Performance-Based Stock Awards Performance-Based Restricted Stock Units Awards Weighted Average Grant Date Fair Value Per Share Awards Weighted Average Grant Date Fair Value Per Share Units Weighted Average Grant Date Fair Value Per Share Nonvested awards/units at December 31, 2022 157,117 $ 77.31 126,053 $ 103.37 15,711 $ 80.55 Granted 7,690 109.76 69,281 109.09 — — Vested (569) 82.14 — — — — Forfeited/Cancelled (398) 86.72 — — (289) 80.55 Nonvested awards/units at March 31, 2023 163,840 $ 78.79 195,334 $ 105.40 15,422 $ 80.55 The following table summarizes the share-based compensation expense recognized under our 2014 Omnibus Incentive Plan (in thousands): Three months ended March 31, 2023 2022 Common Stock Awards $ 1,393 $ 1,531 Non-Employee Common Stock Awards 148 124 Performance-Based Stock Awards 1,563 1,315 Liability Performance-Based Stock Awards 26 206 Performance-Based Restricted Stock Units 306 242 $ 3,436 $ 3,418 We recorded the following stock compensation expense by income statement category (in thousands): Three months ended March 31, 2023 2022 Cost of sales $ 165 $ 149 Selling 136 62 Administrative 3,135 3,207 $ 3,436 $ 3,418 Administrative stock compensation expense includes all stock compensation earned by our administrative personnel, while cost of sales and selling stock compensation represents all stock compensation earned by our installation and sales employees, respectively. Unrecognized share-based compensation expense related to unvested awards was as follows (in thousands): As of March 31, 2023 Unrecognized Weighted Average Common Stock Awards $ 5,561 1.7 Performance-Based Stock Awards 11,112 2.1 Performance-Based Restricted Stock Units 41 0.1 Total unrecognized compensation expense related to unvested awards $ 16,714 Total unrecognized compensation expense is subject to future adjustments for forfeitures. This expense is expected to be recognized over the remaining weighted-average period shown above on a straight-line basis except for the Performance-Based Stock Awards which uses the graded-vesting method. Shares forfeited are returned as treasury shares and available for future issuances. During the three months ended March 31, 2023, our employees surrendered approximately 200 shares of our common stock to satisfy tax withholding obligations arising in connection with the vesting of common stock awards issued under our 2014 Omnibus Incentive Plan. As of March 31, 2023, approximately 1.6 million of the 3.0 million shares of common stock authorized for issuance were available for issuance under the 2014 Omnibus Incentive Plan. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXESOur provision for income taxes as a percentage of pretax earnings is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items.During both the three months ended March 31, 2023 and 2022, our effective tax rate was 26.8%. The rates for each of the three months ended March 31, 2023 and 2022 were unfavorably impacted by certain expenses not being deductible for income tax reporting purposes |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS We sell installation services to other companies related to us through common or affiliated ownership and/or board of directors and/or management relationships. We also purchase services and materials and pay rent to companies with common or affiliated ownership. We lease our headquarters and certain other facilities from related parties. See Note 8, Leases, for future minimum lease payments to be paid to these related parties. The amount of sales to common or related parties as well as the purchases from and rent expense paid to common or related parties were as follows (in thousands): Three months ended March 31, 2023 2022 Sales $ 4,015 $ 560 Purchases 666 407 Rent 352 314 We had a related party balance of approximately $2.3 million and $3.3 million included in accounts receivable on our Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022, respectively. These balances primarily represent trade accounts receivable arising during the normal course of business with various related parties. M/I Homes, Inc., a customer whose Chairman, Chief Executive Officer and President rejoined our board of directors in July of 2022, accounted for $1.5 million and $2.5 million of the related party accounts receivable balance as of March 31, 2023 and December 31, 2022, |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Accrued General Liability and Auto Insurance Accrued general liability and auto insurance reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands): March 31, 2023 December 31, 2022 Included in other current liabilities $ 7,162 $ 7,479 Included in other long-term liabilities 16,621 17,528 $ 23,783 $ 25,007 We also had insurance receivables and indemnification assets included on the Condensed Consolidated Balance Sheets that, in aggregate, offset equal liabilities included within the reserve amounts noted above. The amounts were as follows (in thousands): March 31, 2023 December 31, 2022 Insurance receivables and indemnification assets for claims under fully insured policies $ 2,643 $ 4,933 Insurance receivables for claims that exceeded the stop loss limit 75 380 Total insurance receivables and indemnification assets included in other non-current assets $ 2,718 $ 5,313 Leases See Note 8, Leases, for further information regarding our lease commitments. Other Commitments and Contingencies From time to time, various claims and litigation are asserted or commenced against us principally arising from contractual matters and personnel and employment 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. As litigation is subject to inherent uncertainties, we cannot be certain that we will prevail in these matters. However, we do not believe that the ultimate outcome of any pending matters will have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS As part of our ongoing strategy to expand geographically and increase market share in certain markets, as well as diversify our products and end markets, we completed two business combinations during the three months ended March 31, 2023 and one business combination during the three months ended March 31, 2022. The largest of our 2023 acquisitions was Anchor Insulation Co., Inc. (Anchor) in March 2023. Below is a summary of each significant acquisition by year, including revenue and net income since date of acquisition shown for the year of acquisition. Net income includes amortization and taxes when appropriate. For the three months ended March 31, 2023 (in thousands): Three months ended March 31, 2023 2023 Acquisitions Date Acquisition Type Cash Paid Seller Total Purchase Price Revenue Net Income Anchor 3/12/2023 Share $ 35,928 $ 1,000 $ 36,928 $ 2,193 $ 51 Other 2/13/2023 Asset 2,090 131 2,221 444 15 $ 38,018 $ 1,131 $ 39,149 $ 2,637 $ 66 For the three months ended March 31, 2022 (in thousands): Three months ended March 31, 2022 2022 Acquisitions Date Acquisition Type Cash Paid Seller Total Purchase Price Revenue Net Income Other 03/01/2022 Share $ 8,050 $ 1,878 $ 9,928 $ 915 $ 97 Acquisition-related costs recorded within administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income amounted to $0.6 million and $0.7 million for the three months ended March 31, 2023 and 2022, respectively. The goodwill recognized in conjunction with these business combinations represents the excess cost of the acquired entity over the net amount assigned to assets acquired and liabilities assumed. We expect to deduct approximately $13.0 million of goodwill for tax purposes as a result of 2023 acquisitions. Purchase Price Allocations The estimated fair values of the assets acquired and liabilities assumed for the acquisitions, as well as total purchase prices and cash paid, approximated the following (in thousands): Three months ended March 31, 2023 Three months ended March 31, 2022 Anchor Other Total Other Estimated fair values: Cash $ 10 $ — $ 10 $ 87 Accounts receivable 3,661 — 3,661 772 Inventories 1,527 64 1,591 684 Other current assets 1,732 — 1,732 21 Property and equipment 2,428 381 2,809 1,049 Operating lease right-of-use asset — 28 28 — Intangibles 16,420 1,120 17,540 4,634 Goodwill 12,870 670 13,540 2,743 Other non-current assets 184 13 197 7 Accounts payable and other current liabilities (1,904) (46) (1,950) (69) Other long-term liabilities — (9) (9) — Fair value of assets acquired and purchase price 36,928 2,221 39,149 9,928 Less seller obligations 1,000 131 1,131 1,878 Cash paid $ 35,928 $ 2,090 $ 38,018 $ 8,050 Contingent consideration, non-compete agreements and/or amounts based on working capital calculations are included as “seller obligations” in the above table or within “fair value of assets acquired” if subsequently paid during the period presented. Contingent consideration payments consist primarily of earnouts based on performance that are recorded at fair value at the time of acquisition. When these payments are expected to be made over one year from the acquisition date, the contingent consideration is discounted to net present value of future payments based on a weighted average of various future forecast scenarios. Further adjustments to the allocation for each acquisition still under its measurement period are expected as third-party or internal valuations are finalized, certain tax aspects of the transaction are completed and customary post-closing reviews are concluded during the measurement period attributable to each individual business combination. As a result, adjustments to the fair value of assets acquired, and in some cases total purchase price, have been made to certain business combinations since the date of acquisition and future adjustments may be made through the end of each measurement period. Any acquisition acquired after March 31, 2022 is deemed to be within the measurement period and its purchase price considered preliminary. Goodwill and intangibles per the above table may not agree to the total gross increases of these assets as shown in Note 6, Goodwill and Intangibles, during each of the three months ended March 31, 2023 and 2022 due to adjustments to goodwill for the allocation of certain acquisitions still under measurement as well as other immaterial intangible assets added during the ordinary course of business. All acquisitions during the three months ended March 31, 2023 and 2022 had their respective goodwill assigned to our Installation operating segment. Estimates of acquired intangible assets related to the acquisitions are as follows (in thousands): For the three months ended March 31, 2023 2022 Acquired intangibles assets Estimated Weighted Average Estimated Estimated Weighted Average Estimated Useful Life (yrs.) Customer relationships $ 10,969 12 $ 3,125 12 Trademarks and tradenames 5,466 15 1,136 15 Non-competition agreements 285 5 374 5 Backlog 820 1 — 0 Pro Forma Information The unaudited pro forma information for the combined results of the Company has been prepared as if the 2023 acquisitions had taken place on January 1, 2022 and the 2022 acquisitions had taken place on January 1, 2021. The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transactions actually taken place on January 1, 2022 and 2021, respectively, and the unaudited pro forma information does not purport to be indicative of future financial operating results (in thousands, except per share data): Unaudited pro forma for the three months ended March 31, 2023 2022 Net revenue $ 667,915 $ 623,603 Net income 49,590 34,974 Basic net income per share 1.77 1.19 Diluted net income per share 1.75 1.18 Unaudited pro forma net income reflects additional intangible asset amortization expense of approximately $0.4 million and $1.9 million for the three months ended March 31, 2023 and 2022, respectively, as well as additional income tax expense of approximately $0.1 million and $0.4 million for the three months ended March 31, 2023 and 2022, respectively, that would have been recorded had the 2023 acquisitions taken place on January 1, 2022 and the 2022 acquisitions taken place on January 1, 2021. |
Income Per Common Share
Income Per Common Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Income Per Common Share | INCOME PER COMMON SHAREBasic net income per common share is calculated by dividing net income by the weighted average shares outstanding during the period, without consideration for common stock equivalents.Diluted net income per common share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury stock method. Potential common stock is included in the diluted income per common share calculation when dilutive. The dilutive effect of outstanding restricted stock awards after application of the treasury stock method was approximately 203 thousand and 278 thousand shares for the three months ended March 31, 2023 and 2022, respectively. Approximately 4 thousand shares of potential common stock were not included in the calculation of diluted net income per common share for the three months ended March 31, 2023 because the effect would have been anti-dilutive. There were no shares that would have been considered anti-dilutive for the three months ended three months ended March 31, 2022. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS We announced on May 4th, 2023 that our board of directors declared a quarterly dividend, payable on June 30, 2023 to stockholders of record on June 15, 2023, at a rate of 33.0 cents per share. In April 2023, we notified the lenders on our $500.0 million, seven-year term loan facility due December 2028 (the "Term Loan") under our credit agreement (the "Term Loan Agreement") that we have elected to trigger a benchmark replacement from LIBOR to the Secured Overnight Financing Rate ("Term SOFR"). This trigger includes a credit spread adjustment of 0.11%, 0.26% and 0.43% for interest periods of one month, three months and six months, respectively, and it is subject to the same floor as currently set forth in the Term Loan Agreement. The new Term SOFR rate was effective on April 28, 2023. Also in April 2023, we transitioned our interest rate swap derivatives to Term SOFR to avoid a mismatch of rates. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Consolidation | The accompanying consolidated financial statements include all of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Basis of Presentation | The information furnished in the Condensed Consolidated Financial Statements includes normal recurring adjustments and reflects all adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations and statements of financial position for the interim periods presented. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) have been omitted pursuant to such rules and regulations. |
Revenue from Contract with Customer | We disaggregate our revenue from contracts with customers for our Installation segment by end market and product, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.Our contract assets consist of unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized, based on costs incurred, exceeds the amount billed to the customer. Our contract assets are recorded in other current assets in our Condensed Consolidated Balance Sheets. Our contract liabilities consist of customer deposits and billings in excess of revenue recognized, based on costs incurred and are included in other current liabilities in our Condensed Consolidated Balance Sheets. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Standard Effective Date Adoption ASU 2021-08, Business Combinations (Topic 805): Accounting for contract assets and contract liabilities from contracts with customers December 15, 2022 This pronouncement amended Topic 805 to require an acquirer to account for revenue contracts in a business combination in accordance with Topic 606 as if the acquirer had originated the contracts. This did not have a material impact on our consolidated financial statements Recently Issued Accounting Pronouncements Not Yet Adopted We are currently evaluating the impact of the following Accounting Standards Update ("ASU") on our Condensed Consolidated Financial Statements or Notes to Condensed Consolidated Financial Statements: Standard Description Effective Date Effect on the financial statements or other significant matters ASU 2023-01 Leases (Topic 842): Common Control Arrangements This pronouncement amends Topic 842 to require all entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. Annual periods beginning after December 15, 2023, including interim periods therein. Early adoption is permitted. We are currently assessing the impact of adoption on our consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenues Disaggregated by End Market and Product | The following tables present our net revenues disaggregated by end market and product (in thousands): Three months ended March 31, 2023 2022 Installation: Residential new construction $ 475,095 72 % $ 442,404 75 % Repair and remodel 37,675 6 % 32,641 6 % Commercial 109,972 16 % 86,586 15 % Net revenue, Installation $ 622,742 94 % $ 561,631 96 % Other 36,567 6 % 25,861 4 % Net revenue, as reported $ 659,309 100 % $ 587,492 100 % Three months ended March 31, 2023 2022 Installation: Insulation $ 394,043 60 % $ 364,943 63 % Shower doors, shelving and mirrors 45,513 7 % 36,340 6 % Garage doors 43,312 7 % 35,979 6 % Waterproofing 29,939 4 % 29,022 5 % Rain gutters 27,800 4 % 23,546 4 % Window Blinds 15,881 2 % 13,058 2 % Fireproofing/firestopping 15,175 2 % 15,922 3 % Other building products 51,079 8 % 42,821 7 % Net revenue, Installation $ 622,742 94 % $ 561,631 96 % Other 36,567 6 % 25,861 4 % Net revenue, as reported $ 659,309 100 % $ 587,492 100 % |
Summary of Assets and Liabilities Related to Uncompleted Contracts and Customer Deposits | Contract assets and liabilities related to our uncompleted contracts and customer deposits were as follows (in thousands): March 31, 2023 December 31, 2022 Contract assets $ 36,048 $ 29,431 Contract liabilities (17,331) (18,884) |
Schedule of Cost and Estimated Earnings on Uncompleted Contracts | Uncompleted contracts were as follows (in thousands): March 31, 2023 December 31, 2022 Costs incurred on uncompleted contracts $ 279,994 $ 273,788 Estimated earnings 116,621 114,781 Total 396,615 388,569 Less: Billings to date 369,686 368,009 Net under billings $ 26,929 $ 20,560 |
Schedule of Net Under Billings | Net under billings were as follows (in thousands): March 31, 2023 December 31, 2022 Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) $ 36,048 $ 29,431 Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) (9,119) (8,871) Net under billings $ 26,929 $ 20,560 |
Credit Losses (Tables)
Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Credit Loss [Abstract] | |
Schedule of Changes In Allowance for Credit Losses | Changes in our allowance for credit losses were as follows (in thousands): Balance as of January 1, 2023 $ 9,549 Current period provision 1,678 Recoveries collected and additions 61 Amounts written off (1,229) Balance as of March 31, 2023 $ 10,059 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Change in Carrying Amount of Goodwill | The change in carrying amount of goodwill was as follows (in thousands): Installation Other Consolidated Goodwill (gross) - January 1, 2023 $ 355,226 $ 88,333 $ 443,559 Business combinations 13,540 — 13,540 Other 257 5,273 5,530 Goodwill (gross) - March 31, 2023 369,023 93,606 462,629 Accumulated impairment losses (70,004) — (70,004) Goodwill (net) - March 31, 2023 $ 299,019 $ 93,606 $ 392,625 |
Schedule of Gross Carrying Amount, Accumulated Amortization and Net Book Value | The following table provides the gross carrying amount, accumulated amortization and net book value for each major class of intangibles (in thousands): As of March 31, As of December 31, 2023 2022 Gross Accumulated Net Gross Accumulated Net Amortized intangibles: Customer relationships $ 349,019 $ 154,169 $ 194,850 $ 338,050 $ 145,722 $ 192,328 Covenants not-to-compete 31,207 21,028 10,179 30,899 20,086 10,813 Trademarks and tradenames 125,078 41,518 83,560 119,612 39,638 79,974 Backlog 21,635 20,623 1,012 20,815 20,457 358 $ 526,939 $ 237,338 $ 289,601 $ 509,376 $ 225,903 $ 283,473 |
Schedule of Estimated Aggregate Annual Amortization | Remaining estimated aggregate annual amortization expense is as follows (amounts, in thousands, are for the fiscal year ended): Remainder of 2023 $ 32,834 2024 39,843 2025 34,301 2026 30,350 2027 26,064 Thereafter 126,209 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consisted of the following (in thousands): As of March 31, As of December 31, 2023 2022 Senior Notes due 2028, net of unamortized debt issuance costs of $2,887 and $3,036, respectively $ 297,113 $ 296,964 Term loan, net of unamortized debt issuance costs of $5,524 and $5,767, respectively 488,226 489,233 Vehicle and equipment notes, maturing through March 2028; payable in various monthly installments, including interest rates ranging from 1.9% to 6.2% 74,078 72,984 Various notes payable, maturing through April 2025; payable in various monthly installments, including interest rates ranging from 2.0% to 5.0% 1,973 1,973 861,390 861,154 Less: current maturities (31,165) (30,983) Long-term debt, less current maturities $ 830,225 $ 830,171 |
Schedule of Maturities of Long-term Debt | Remaining required repayments of debt principal, gross of unamortized debt issuance costs, as of March 31, 2023 are as follows (in thousands): Remainder of 2023 $ 23,976 2024 27,027 2025 21,201 2026 16,250 2027 11,002 Thereafter 770,345 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease-Related Assets and Liabilities | The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets: As of March 31, As of December 31, (in thousands) Classification 2023 2022 Assets Non-Current Operating Operating lease right-of-use assets $ 74,602 $ 76,174 Finance Property and equipment, net 9,159 8,928 Total lease assets $ 83,761 $ 85,102 Liabilities Current Operating Current maturities of operating lease obligations $ 26,000 $ 26,145 Financing Current maturities of finance lease obligations 2,588 2,508 Non-Current Operating Operating lease obligations 48,339 49,789 Financing Finance lease obligations 6,559 6,397 Total lease liabilities $ 83,486 $ 84,839 Weighted-average remaining lease term: Operating leases 3.9 years 4.0 years Finance leases 3.8 years 3.6 years Weighted-average discount rate: Operating leases 4.60 % 4.41 % Finance leases 6.08 % 5.76 % |
Schedule of Lease Costs for Finance and Operating Leases | The table below presents certain information related to the lease costs for finance and operating leases: Three months ended March 31, (in thousands) Classification 2023 2022 Operating lease cost (1) Administrative $ 9,203 $ 7,759 Finance lease cost: Amortization of leased assets (2) Cost of sales 977 716 Interest on finance lease obligations Interest expense, net 131 61 Total lease costs $ 10,311 $ 8,536 (1) Includes variable lease costs of $1.2 million and $0.9 million for the three months ended March 31, 2023 and 2022, respectively, and short-term lease costs of $0.3 million for each of the three months ended March 31, 2023 and 2022. (2) Includes variable lease costs of $0.2 million for each of the three months ended March 31, 2023 and 2022. The table below presents supplemental cash flow information related to leases (in thousands): Three months ended March 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 7,691 $ 6,463 Operating cash flows for finance leases 131 61 Financing cash flows for finance leases 727 521 |
Schedule of Undiscounted Cash Flows Finance Lease Obligations | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet as of March 31, 2023 (in thousands): Finance Leases Operating Leases Related Party Other Total Operating Remainder of 2023 $ 2,354 $ 1,068 $ 21,268 $ 22,336 2024 2,668 1,175 21,565 22,740 2025 2,299 1,017 14,742 15,759 2026 1,968 — 9,616 9,616 2027 997 — 5,252 5,252 Thereafter 17 — 5,559 5,559 Total minimum lease payments 10,303 $ 3,260 $ 78,002 81,262 Less: Amounts representing executory costs (2) — Less: Amounts representing interest (1,154) (6,923) Present value of future minimum lease payments 9,147 74,339 Less: Current obligation under leases (2,588) (26,000) Long-term lease obligations $ 6,559 $ 48,339 |
Schedule of Undiscounted Cash Flows Operating Lease Obligations | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet as of March 31, 2023 (in thousands): Finance Leases Operating Leases Related Party Other Total Operating Remainder of 2023 $ 2,354 $ 1,068 $ 21,268 $ 22,336 2024 2,668 1,175 21,565 22,740 2025 2,299 1,017 14,742 15,759 2026 1,968 — 9,616 9,616 2027 997 — 5,252 5,252 Thereafter 17 — 5,559 5,559 Total minimum lease payments 10,303 $ 3,260 $ 78,002 81,262 Less: Amounts representing executory costs (2) — Less: Amounts representing interest (1,154) (6,923) Present value of future minimum lease payments 9,147 74,339 Less: Current obligation under leases (2,588) (26,000) Long-term lease obligations $ 6,559 $ 48,339 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Values of Financial Assets and Liabilities | Fair value in the Condensed Consolidated Balance Sheets and not described above were as follows (in thousands): As of March 31, 2023 As of December 31, 2022 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Financial assets: Cash equivalents $ 197,910 $ 197,910 $ — $ — $ 191,881 $ 191,881 $ — $ — Derivative financial instruments 30,020 — 30,020 — 38,671 — 38,671 — Total financial assets $ 227,930 $ 197,910 $ 30,020 $ — $ 230,552 $ 191,881 $ 38,671 $ — Financial liabilities: Contingent consideration $ 968 $ — $ — $ 968 $ 1,858 $ — $ — $ 1,858 Derivative financial instruments 1,014 — 1,014 — — — — — Total financial liabilities $ 1,982 $ — $ 1,014 $ 968 $ 1,858 $ — $ — $ 1,858 |
Summary of Change in Fair Value of Contingent Consideration | The change in fair value of the contingent consideration (a Level 3 input) was as follows (in thousands): Contingent consideration liability - January 1, 2023 $ 1,858 Accretion in value 110 Amounts paid to sellers (1,000) Contingent consideration liability - March 31, 2023 $ 968 |
Summary of Carrying Values and Associated Fair Values of Financial Assets and Liabilities | The Senior Notes represent a Level 2 fair value measurement and are as follows (in thousands): As of March 31, 2023 As of December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Senior Notes (1) $ 300,000 $ 278,709 $ 300,000 $ 270,993 (1) Excludes the impact of unamortized debt issuance costs. |
Information on Segments (Tables
Information on Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following tables represent our segment information for the three months ended March 31, 2023 and 2022 (in thousands): Three months ended March 31, 2023 Installation Other Eliminations Consolidated Revenue $ 622,742 $ 38,722 $ (2,155) $ 659,309 Cost of sales (1) 410,384 28,459 (1,766) 437,077 Segment gross profit $ 212,358 $ 10,263 $ (389) $ 222,232 Segment gross profit percentage 34.1 % 26.5 % 18.1 % 33.7 % Three months ended March 31, 2022 Installation Other Eliminations Consolidated Revenue $ 561,631 $ 26,650 $ (789) $ 587,492 Cost of sales (1) 385,692 19,373 (609) 404,456 Segment gross profit $ 175,939 $ 7,277 $ (180) $ 183,036 Segment gross profit percentage 31.3 % 27.3 % 22.8 % 31.2 % (1) Cost of sales included in segment gross profit is exclusive of depreciation and amortization for the three months ended March 31, 2023 and 2022. The reconciliation between consolidated segment gross profit for each period as shown in the tables above to consolidated income before income taxes is as follows: Three months ended March 31, 2023 2022 Segment gross profit - consolidated $ 222,232 $ 183,036 Depreciation and amortization (1) 11,810 10,633 Gross profit, as reported 210,422 172,403 Operating expenses 133,546 115,433 Operating income 76,876 56,970 Other expense, net 9,517 10,745 Income before income taxes $ 67,359 $ 46,225 |
Derivative and Hedging Activiti
Derivative and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of March 31, 2023 and December 31, 2022, we had the following interest rate swap derivatives outstanding: Effective Date Notional Amount Fixed Rate Maturity Date (in millions) July 30, 2021 $ 200.0 0.51 % December 31, 2025 December 31, 2021 100.0 1.37 % December 31, 2025 December 31, 2021 100.0 1.37 % December 31, 2025 December 31, 2025 300.0 3.09 % December 14, 2028 December 31, 2025 100.0 2.98 % December 14, 2028 |
Derivative Instruments, Gain (Loss) | The following table summarizes amounts recorded to interest expense Three months ended March 31, 2023 2022 (Benefit) expense associated with swap net settlements $ (3,593) $ 795 Expense associated with amortization of amended/terminated swaps 1,104 790 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Dividends Declared and Paid | During the three months ended March 31, 2023, we declared and paid the following cash dividends (amount declared and amount paid in thousands): Declaration Date Record Date Payment Date Dividend Per Share Amount Declared Amount Paid 2/22/2023 3/15/2023 3/31/2023 $ 0.90 $ 25,537 $ 25,270 2/22/2023 3/15/2023 3/31/2023 0.33 9,364 9,266 During the three months ended March 31, 2022, we declared and paid the following cash dividends (amount declared and amount paid in thousands): Declaration Date Record Date Payment Date Dividend Per Share Amount Declared Amount Paid 2/24/2022 3/15/2022 3/31/2022 $ 0.90 $ 26,585 $ 26,242 2/24/2022 3/15/2022 3/31/2022 0.315 9,305 9,184 |
Derivative Instruments, Gain (Loss) | The following table summarizes amounts recorded to interest expense Three months ended March 31, 2023 2022 (Benefit) expense associated with swap net settlements $ (3,593) $ 795 Expense associated with amortization of amended/terminated swaps 1,104 790 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The change in accumulated other comprehensive income related to our interest rate derivatives, net of taxes, was as follows (in thousands): Three months ended March 31, 2023 2022 Accumulated gain (loss) at beginning of period $ 40,560 $ (227) Unrealized (losses) gains in fair value (7,126) 17,527 Reclassifications of realized net losses to earnings 817 584 Accumulated gain at end of period $ 34,251 $ 17,884 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Postemployment Benefits [Abstract] | |
Summary of Workers' Compensation Known Claims and IBNR Reserves | Workers’ compensation known claims and IBNR reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands): March 31, 2023 December 31, 2022 Included in other current liabilities $ 8,782 $ 9,946 Included in other long-term liabilities 16,550 13,730 $ 25,332 $ 23,676 |
Schedule of Insurance Receivable for Claims | This receivable offsets an equal liability included within the reserve amounts noted above and was as follows (in thousands): March 31, 2023 December 31, 2022 Included in other non-current assets $ 2,743 $ 2,318 |
Summary of Equity-based Awards for Employees | Amounts and changes for each category of equity-based award were as follows: Common Stock Awards Performance-Based Stock Awards Performance-Based Restricted Stock Units Awards Weighted Average Grant Date Fair Value Per Share Awards Weighted Average Grant Date Fair Value Per Share Units Weighted Average Grant Date Fair Value Per Share Nonvested awards/units at December 31, 2022 157,117 $ 77.31 126,053 $ 103.37 15,711 $ 80.55 Granted 7,690 109.76 69,281 109.09 — — Vested (569) 82.14 — — — — Forfeited/Cancelled (398) 86.72 — — (289) 80.55 Nonvested awards/units at March 31, 2023 163,840 $ 78.79 195,334 $ 105.40 15,422 $ 80.55 |
Summary of Stock Compensation Expenses | The following table summarizes the share-based compensation expense recognized under our 2014 Omnibus Incentive Plan (in thousands): Three months ended March 31, 2023 2022 Common Stock Awards $ 1,393 $ 1,531 Non-Employee Common Stock Awards 148 124 Performance-Based Stock Awards 1,563 1,315 Liability Performance-Based Stock Awards 26 206 Performance-Based Restricted Stock Units 306 242 $ 3,436 $ 3,418 We recorded the following stock compensation expense by income statement category (in thousands): Three months ended March 31, 2023 2022 Cost of sales $ 165 $ 149 Selling 136 62 Administrative 3,135 3,207 $ 3,436 $ 3,418 |
Unrecognized Share-Based Compensation Expense Related to Unvested Awards | Unrecognized share-based compensation expense related to unvested awards was as follows (in thousands): As of March 31, 2023 Unrecognized Weighted Average Common Stock Awards $ 5,561 1.7 Performance-Based Stock Awards 11,112 2.1 Performance-Based Restricted Stock Units 41 0.1 Total unrecognized compensation expense related to unvested awards $ 16,714 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Common or Related Party Transactions | The amount of sales to common or related parties as well as the purchases from and rent expense paid to common or related parties were as follows (in thousands): Three months ended March 31, 2023 2022 Sales $ 4,015 $ 560 Purchases 666 407 Rent 352 314 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Accrued General Insurance Reserves | Accrued general liability and auto insurance reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands): March 31, 2023 December 31, 2022 Included in other current liabilities $ 7,162 $ 7,479 Included in other long-term liabilities 16,621 17,528 $ 23,783 $ 25,007 |
Schedule of Insurance Receivable for Claims | We also had insurance receivables and indemnification assets included on the Condensed Consolidated Balance Sheets that, in aggregate, offset equal liabilities included within the reserve amounts noted above. The amounts were as follows (in thousands): March 31, 2023 December 31, 2022 Insurance receivables and indemnification assets for claims under fully insured policies $ 2,643 $ 4,933 Insurance receivables for claims that exceeded the stop loss limit 75 380 Total insurance receivables and indemnification assets included in other non-current assets $ 2,718 $ 5,313 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Combinations | For the three months ended March 31, 2023 (in thousands): Three months ended March 31, 2023 2023 Acquisitions Date Acquisition Type Cash Paid Seller Total Purchase Price Revenue Net Income Anchor 3/12/2023 Share $ 35,928 $ 1,000 $ 36,928 $ 2,193 $ 51 Other 2/13/2023 Asset 2,090 131 2,221 444 15 $ 38,018 $ 1,131 $ 39,149 $ 2,637 $ 66 For the three months ended March 31, 2022 (in thousands): Three months ended March 31, 2022 2022 Acquisitions Date Acquisition Type Cash Paid Seller Total Purchase Price Revenue Net Income Other 03/01/2022 Share $ 8,050 $ 1,878 $ 9,928 $ 915 $ 97 |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The estimated fair values of the assets acquired and liabilities assumed for the acquisitions, as well as total purchase prices and cash paid, approximated the following (in thousands): Three months ended March 31, 2023 Three months ended March 31, 2022 Anchor Other Total Other Estimated fair values: Cash $ 10 $ — $ 10 $ 87 Accounts receivable 3,661 — 3,661 772 Inventories 1,527 64 1,591 684 Other current assets 1,732 — 1,732 21 Property and equipment 2,428 381 2,809 1,049 Operating lease right-of-use asset — 28 28 — Intangibles 16,420 1,120 17,540 4,634 Goodwill 12,870 670 13,540 2,743 Other non-current assets 184 13 197 7 Accounts payable and other current liabilities (1,904) (46) (1,950) (69) Other long-term liabilities — (9) (9) — Fair value of assets acquired and purchase price 36,928 2,221 39,149 9,928 Less seller obligations 1,000 131 1,131 1,878 Cash paid $ 35,928 $ 2,090 $ 38,018 $ 8,050 |
Estimates of Acquired Intangible Assets | Estimates of acquired intangible assets related to the acquisitions are as follows (in thousands): For the three months ended March 31, 2023 2022 Acquired intangibles assets Estimated Weighted Average Estimated Estimated Weighted Average Estimated Useful Life (yrs.) Customer relationships $ 10,969 12 $ 3,125 12 Trademarks and tradenames 5,466 15 1,136 15 Non-competition agreements 285 5 374 5 Backlog 820 1 — 0 |
Pro Forma Results of Operations | The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transactions actually taken place on January 1, 2022 and 2021, respectively, and the unaudited pro forma information does not purport to be indicative of future financial operating results (in thousands, except per share data): Unaudited pro forma for the three months ended March 31, 2023 2022 Net revenue $ 667,915 $ 623,603 Net income 49,590 34,974 Basic net income per share 1.77 1.19 Diluted net income per share 1.75 1.18 |
Organization - Additional Infor
Organization - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2023 location segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of locations the company operates | location | 240 |
Number of operating segment | 3 |
Number of reportable segment | 1 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Contract liability revenue recognized | $ 15,800,000 | |
Impairment losses on contract assets | 0 | $ 0 |
Transaction price allocated to uncompleted contracts | $ 154,300,000 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Expected time of revenue recognition (in months) | 18 months |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenues Disaggregated by End Market and Product (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 659,309 | $ 587,492 |
Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 100% | 100% |
Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 100% | 100% |
Net revenue, Installation | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 622,742 | $ 561,631 |
Net revenue, Installation | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 94% | 96% |
Insulation | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 394,043 | $ 364,943 |
Insulation | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 60% | 63% |
Shower doors, shelving and mirrors | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 45,513 | $ 36,340 |
Shower doors, shelving and mirrors | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 7% | 6% |
Garage doors | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 43,312 | $ 35,979 |
Garage doors | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 7% | 6% |
Waterproofing | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 29,939 | $ 29,022 |
Waterproofing | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 4% | 5% |
Rain gutters | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 27,800 | $ 23,546 |
Rain gutters | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 4% | 4% |
Window Blinds | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 15,881 | $ 13,058 |
Window Blinds | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 2% | 2% |
Fireproofing/firestopping | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 15,175 | $ 15,922 |
Fireproofing/firestopping | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 2% | 3% |
Other building products | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 51,079 | $ 42,821 |
Other building products | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 8% | 7% |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 36,567 | $ 25,861 |
Other | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 6% | 4% |
Net revenue, Installation | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 622,742 | $ 561,631 |
Net revenue, Installation | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 94% | 96% |
Residential new construction | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 475,095 | $ 442,404 |
Residential new construction | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 72% | 75% |
Repair and remodel | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 37,675 | $ 32,641 |
Repair and remodel | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 6% | 6% |
Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 109,972 | $ 86,586 |
Commercial | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 16% | 15% |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 36,567 | $ 25,861 |
Other | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 6% | 4% |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Assets and Liabilities Related to Uncompleted Contracts and Customer Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 36,048 | $ 29,431 |
Contract liabilities | $ (17,331) | $ (18,884) |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Cost and Estimated Earnings on Uncompleted Contracts (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Costs incurred on uncompleted contracts | $ 279,994 | $ 273,788 |
Estimated earnings | 116,621 | 114,781 |
Total | 396,615 | 388,569 |
Less: Billings to date | 369,686 | 368,009 |
Net under billings | $ 26,929 | $ 20,560 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Net Under (Over) Billings (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) | $ 36,048 | $ 29,431 |
Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) | (9,119) | (8,871) |
Net under billings | $ 26,929 | $ 20,560 |
Credit Losses (Details)
Credit Losses (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 9,549 |
Current period provision | 1,678 |
Recoveries collected and additions | 61 |
Amounts written off | (1,229) |
Ending balance | $ 10,059 |
Investments and Cash and Cash_2
Investments and Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Investments [Abstract] | ||
Cash and cash equivalents | $ 197.9 | $ 191.9 |
Goodwill and Intangibles - Summ
Goodwill and Intangibles - Summary of Change in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill (gross), beginning balance | $ 443,559 | |
Business combinations | 13,540 | |
Other | 5,530 | |
Goodwill (gross), ending balance | 462,629 | |
Accumulated impairment losses | (70,004) | |
Goodwill (net) | 392,625 | $ 373,555 |
Installation | ||
Goodwill [Roll Forward] | ||
Goodwill (gross), beginning balance | 355,226 | |
Business combinations | 13,540 | |
Other | 257 | |
Goodwill (gross), ending balance | 369,023 | |
Accumulated impairment losses | (70,004) | |
Goodwill (net) | 299,019 | |
Other | ||
Goodwill [Roll Forward] | ||
Goodwill (gross), beginning balance | 88,333 | |
Business combinations | 0 | |
Other | 5,273 | |
Goodwill (gross), ending balance | 93,606 | |
Accumulated impairment losses | 0 | |
Goodwill (net) | $ 93,606 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Gross Carrying Amount and Accumulated Amortization (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 526,939 | $ 509,376 |
Accumulated Amortization | 237,338 | 225,903 |
Net Book Value | 289,601 | 283,473 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 349,019 | 338,050 |
Accumulated Amortization | 154,169 | 145,722 |
Net Book Value | 194,850 | 192,328 |
Covenants not-to-compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 31,207 | 30,899 |
Accumulated Amortization | 21,028 | 20,086 |
Net Book Value | 10,179 | 10,813 |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 125,078 | 119,612 |
Accumulated Amortization | 41,518 | 39,638 |
Net Book Value | 83,560 | 79,974 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 21,635 | 20,815 |
Accumulated Amortization | 20,623 | 20,457 |
Net Book Value | $ 1,012 | $ 358 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Increase in gross carrying amount of intangibles | $ 17,600 | |
Other | ||
Goodwill [Line Items] | ||
Change in goodwill due to tax election | $ 4,900 |
Goodwill and Intangibles - Sc_2
Goodwill and Intangibles - Schedule of Estimated Aggregate Annual Amortization (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Finite Lived Intangible Assets Net Amortization Expense Rolling Maturity [Abstract] | |
Remainder of 2022 | $ 32,834 |
2024 | 39,843 |
2025 | 34,301 |
2026 | 30,350 |
2027 | 26,064 |
Thereafter | $ 126,209 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total long term debt | $ 861,390 | $ 861,154 |
Less: current maturities | (31,165) | (30,983) |
Long-term debt, less current maturities | 830,225 | 830,171 |
Senior Notes | 5.75% Senior Notes Due 2028 | ||
Debt Instrument [Line Items] | ||
Total long term debt | 297,113 | 296,964 |
Unamortized debt issuance costs | 2,887 | 3,036 |
Medium-term Notes | Term Loan Agreement | ||
Debt Instrument [Line Items] | ||
Total long term debt | 488,226 | 489,233 |
Unamortized debt issuance costs | 5,524 | 5,767 |
Notes Payable | ||
Debt Instrument [Line Items] | ||
Total long term debt | $ 1,973 | $ 1,973 |
Notes Payable | Minimum | ||
Debt Instrument [Line Items] | ||
Notes payable interest rate (as a percent) | 2% | 2% |
Notes Payable | Maximum | ||
Debt Instrument [Line Items] | ||
Notes payable interest rate (as a percent) | 5% | 5% |
Notes Payable | Vehicle and Equipment | ||
Debt Instrument [Line Items] | ||
Total long term debt | $ 74,078 | $ 72,984 |
Notes Payable | Vehicle and Equipment | Minimum | ||
Debt Instrument [Line Items] | ||
Notes payable interest rate (as a percent) | 1.90% | 1.90% |
Notes Payable | Vehicle and Equipment | Maximum | ||
Debt Instrument [Line Items] | ||
Notes payable interest rate (as a percent) | 6.20% | 6.20% |
Long-Term Debt - Schedule Of Ma
Long-Term Debt - Schedule Of Maturities Of Long Term Debt (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Maturities of Long-term Debt [Abstract] | |
Remainder of 2022 | $ 23,976 |
2024 | 27,027 |
2025 | 21,201 |
2026 | 16,250 |
2027 | 11,002 |
Thereafter | $ 770,345 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related To Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Non-Current | ||
Operating | $ 74,602 | $ 76,174 |
Finance | 9,159 | 8,928 |
Total lease assets | $ 83,761 | $ 85,102 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net | Property and equipment, net |
Current | ||
Operating | $ 26,000 | $ 26,145 |
Financing | 2,588 | 2,508 |
Non-Current | ||
Operating | 48,339 | 49,789 |
Financing | 6,559 | 6,397 |
Total lease liabilities | $ 83,486 | $ 84,839 |
Weighted-average remaining lease term: | ||
Operating leases (in years) | 3 years 10 months 24 days | 4 years |
Finance leases (in years) | 3 years 9 months 18 days | 3 years 7 months 6 days |
Weighted-average discount rate: | ||
Operating leases (as percent) | 4.60% | 4.41% |
Finance leases (as percent) | 6.08% | 5.76% |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 9,203 | $ 7,759 |
Finance lease cost: | ||
Amortization of leased assets | 977 | 716 |
Interest on finance lease obligations | 131 | 61 |
Total lease costs | 10,311 | 8,536 |
Operating Lease | ||
Finance lease cost: | ||
Variable lease costs | 1,200 | 900 |
Short-term lease costs | 300 | 300 |
Finance Lease | ||
Finance lease cost: | ||
Variable lease costs | $ 200 | $ 200 |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 7,691 | $ 6,463 |
Operating cash flows for finance leases | 131 | 61 |
Financing cash flows for finance leases | $ 727 | $ 521 |
Leases - Undiscounted Cash Flow
Leases - Undiscounted Cash Flows (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finance Leases | ||
Remainder of 2022 | $ 2,354 | |
2024 | 2,668 | |
2025 | 2,299 | |
2026 | 1,968 | |
2027 | 997 | |
Thereafter | 17 | |
Total minimum lease payments | 10,303 | |
Less: Amounts representing executory costs | (2) | |
Less: Amounts representing interest | (1,154) | |
Present value of future minimum lease payments | 9,147 | |
Less: Current obligation under leases | (2,588) | $ (2,508) |
Finance lease obligations | 6,559 | 6,397 |
Operating Leases | ||
Remainder of 2022 | 22,336 | |
2024 | 22,740 | |
2025 | 15,759 | |
2026 | 9,616 | |
2027 | 5,252 | |
Thereafter | 5,559 | |
Total minimum lease payments | 81,262 | |
Operating Lease Executory Cost | 0 | |
Less: Amounts representing interest | (6,923) | |
Present value of future minimum lease payments | 74,339 | |
Less: Current obligation under leases | (26,000) | (26,145) |
Operating lease obligations | 48,339 | $ 49,789 |
Related Party | ||
Operating Leases | ||
Remainder of 2022 | 1,068 | |
2024 | 1,175 | |
2025 | 1,017 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | 3,260 | |
Other | ||
Operating Leases | ||
Remainder of 2022 | 21,268 | |
2024 | 21,565 | |
2025 | 14,742 | |
2026 | 9,616 | |
2027 | 5,252 | |
Thereafter | 5,559 | |
Total minimum lease payments | $ 78,002 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Cash equivalents | $ 197,910 | $ 191,881 |
Derivative financial instruments | 30,020 | 38,671 |
Total financial assets | 227,930 | 230,552 |
Financial liabilities: | ||
Contingent consideration | 968 | 1,858 |
Derivative financial instruments | 1,014 | 0 |
Total financial liabilities | 1,982 | 1,858 |
Level 1 | ||
Financial assets: | ||
Cash equivalents | 197,910 | 191,881 |
Derivative financial instruments | 0 | 0 |
Total financial assets | 197,910 | 191,881 |
Financial liabilities: | ||
Contingent consideration | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total financial liabilities | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash equivalents | 0 | 0 |
Derivative financial instruments | 30,020 | 38,671 |
Total financial assets | 30,020 | 38,671 |
Financial liabilities: | ||
Contingent consideration | 0 | 0 |
Derivative financial instruments | 1,014 | 0 |
Total financial liabilities | 1,014 | 0 |
Level 3 | ||
Financial assets: | ||
Cash equivalents | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total financial assets | 0 | 0 |
Financial liabilities: | ||
Contingent consideration | 968 | 1,858 |
Derivative financial instruments | 0 | 0 |
Total financial liabilities | $ 968 | $ 1,858 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Change in Fair Value of Contingent Consideration (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 1,858 |
Accretion in value | 110 |
Amounts paid to sellers | (1,000) |
Ending balance | $ 968 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Carrying Values and Associated Fair Values of Financial Assets and Liabilities (Details) - 5.75% Senior Notes Due 2028 - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Level 2 | ||
Financial assets: | ||
Senior Notes | $ 278,709 | $ 270,993 |
Carrying Value | ||
Financial assets: | ||
Senior Notes | $ 300,000 | $ 300,000 |
Information on Segments (Detail
Information on Segments (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segment | segment | 3 | |
Number of reportable segment | segment | 1 | |
Net revenue | $ 659,309 | $ 587,492 |
Cost of sales (1) | 437,077 | 404,456 |
Gross profit | 210,422 | 172,403 |
Income before income taxes | 67,359 | 46,225 |
Operating income | $ 76,876 | $ 56,970 |
Segment gross profit percentage | 33.70% | 31.20% |
Adjustment | ||
Segment Reporting Information [Line Items] | ||
Segment gross profit | $ 222,232 | $ 183,036 |
Depreciation and amortization (1) | 11,810 | 10,633 |
Gross profit | 210,422 | 172,403 |
Selling | 133,546 | 115,433 |
Other expense, net | 9,517 | 10,745 |
Income before income taxes | 67,359 | 46,225 |
Operating income | 76,876 | 56,970 |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net revenue | (2,155) | (789) |
Cost of sales (1) | (1,766) | $ (609) |
Segment gross profit | $ (389) | |
Segment gross profit percentage | 18.10% | 22.80% |
Eliminations | Adjustment | ||
Segment Reporting Information [Line Items] | ||
Segment gross profit | $ (180) | |
Installation | ||
Segment Reporting Information [Line Items] | ||
Number of operating segment | segment | 1 | |
Installation | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 622,742 | 561,631 |
Cost of sales (1) | 410,384 | 385,692 |
Segment gross profit | $ 212,358 | $ 175,939 |
Segment gross profit percentage | 34.10% | 31.30% |
Other | ||
Segment Reporting Information [Line Items] | ||
Number of operating segment | segment | 2 | |
Other | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 38,722 | $ 26,650 |
Cost of sales (1) | 28,459 | 19,373 |
Segment gross profit | $ 10,263 | $ 7,277 |
Segment gross profit percentage | 26.50% | 27.30% |
Derivative and Hedging Activi_2
Derivative and Hedging Activities - Open Interest Swap Contract Summary (Details) - Cash Flow Hedging - Designated as Hedging Instrument $ in Millions | Mar. 31, 2023 USD ($) |
Interest Rate Swap One, Effective July 20, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount of derivative instruments | $ 200 |
Interest rate of derivative instruments (as a percent) | 0.51% |
Interest Rate Swap Two, Effective December 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount of derivative instruments | $ 100 |
Interest rate of derivative instruments (as a percent) | 1.37% |
Interest Rate Swap Three, Effective December 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount of derivative instruments | $ 100 |
Interest rate of derivative instruments (as a percent) | 1.37% |
Interest Rate Swap Four, Effective December 31, 2025 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount of derivative instruments | $ 300 |
Interest rate of derivative instruments (as a percent) | 3.09% |
Interest Rate Swap Five, Effective December 31, 2025 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount of derivative instruments | $ 100 |
Interest rate of derivative instruments (as a percent) | 2.98% |
Derivative and Hedging Activi_3
Derivative and Hedging Activities - Narrative (Details) | 3 Months Ended | |||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Jul. 08, 2022 instrument | Aug. 31, 2020 swap | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Number of swaps | swap | 2 | |||
Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amortization of unrealized gain (loss) | $ 1,700,000 | |||
Amortized interest expense of financing element | 1,800,000 | |||
Amortization of unrealized loss | 1,000,000 | $ 800,000 | ||
Interest Rate Swap | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amortization of unrealized loss | 1,104,000 | $ 790,000 | ||
Interest Rate Swap | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount of derivative instruments | 400,000,000 | |||
Interest Rate Swap | Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Number of derivatives | instrument | 3 | |||
Reclassification from accumulated other comprehensive income to interest expense | $ 10,400,000 |
Derivative and Hedging Activi_4
Derivative and Hedging Activities - Interest Rate Swap Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
OCI, Cash Flow Hedge, Reclassification for Discontinuance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | Interest expense |
Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
(Benefit) expense associated with swap net settlements | $ (3,593) | $ 795 |
Expense associated with amortization of amended/terminated swaps | $ 1,104 | $ 790 |
Stockholders' Equity - Change i
Stockholders' Equity - Change in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
BEGINNING BALANCE | $ 493,499 | $ 416,840 |
ENDING BALANCE | 505,222 | 390,231 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
BEGINNING BALANCE | 40,560 | (227) |
Unrealized (losses) gains in fair value | (7,126) | 17,527 |
Reclassifications of realized net losses to earnings | 817 | 584 |
ENDING BALANCE | $ 34,251 | $ 17,884 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Feb. 24, 2022 | |
Statement Of Shareholders Equity [Line Items] | |||
Common stock repurchase (in shares) | (511) | ||
Share repurchase, amount | $ 49,900 | $ 49,865 | |
Share repurchase, price per share (in usd per share) | $ 97,570 | ||
Stock repurchase program, authorized | $ 200,000 | ||
Amount Paid | $ 34,536 | $ 35,426 |
Stockholders' Equity - Cash Div
Stockholders' Equity - Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||
Feb. 22, 2023 | Mar. 31, 2022 | Feb. 24, 2022 | Feb. 23, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Dividends Payable [Line Items] | ||||||||
Cash dividends declared per share (in USD per share) | $ 1.23 | $ 1.22 | ||||||
Amount Declared | $ 34,901 | $ 35,890 | ||||||
Amount Paid | $ 34,536 | $ 35,426 | ||||||
Dividend One | ||||||||
Dividends Payable [Line Items] | ||||||||
Cash dividends declared per share (in USD per share) | $ 0.90 | $ 0.90 | ||||||
Amount Declared | $ 25,537 | $ 26,585 | ||||||
Amount Paid | $ 25,270 | $ 26,242 | ||||||
Dividend Two | ||||||||
Dividends Payable [Line Items] | ||||||||
Cash dividends declared per share (in USD per share) | $ 0.33 | $ 0.315 | ||||||
Amount Declared | $ 9,364 | $ 9,305 | ||||||
Amount Paid | $ 9,184 | $ 9,266 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) installment shares | Mar. 31, 2022 USD ($) shares | Dec. 31, 2022 USD ($) | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Healthcare benefit expense, net of employee contributions | $ | $ 7,400 | $ 8,900 | |
Accrued compensation | $ | 45,613 | $ 51,608 | |
Administration expense related to employee contribution plan | $ | $ 900 | $ 800 | |
Number of shares surrendered to satisfy tax withholding obligations (in shares) | 200 | ||
2014 Omnibus Incentive Plan | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Common stock shares available for issuance (in shares) | 1,600,000 | ||
Common stock shares authorized (in shares) | 3,000,000 | ||
Performance-Based Stock Awards | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Share-based awards granted (in shares) | 69,281 | ||
Liability Performance-Based Stock Awards | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Share-based awards granted (in shares) | 8,000 | 5,000 | |
Common Stock Awards | Non-Employee Common Stock Awards | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Share-based awards granted (in shares) | 0 | ||
Officer | Performance-Based Stock Awards | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Share-based awards granted (in shares) | 61,000 | ||
Officer | Performance-Based Stock Awards | Common Stock | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Number of equal installments for common stock | installment | 2 | ||
Cost of sales | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Workers' compensation expense | $ | $ 5,800 | $ 5,700 | |
Medical IBNR Included in Accrued Compensation | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Accrued compensation | $ | $ 4,300 | $ 3,800 |
Employee Benefits - Summary of
Employee Benefits - Summary of Workers' Compensation Known Claims and IBNR Reserves (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Postemployment Benefits [Abstract] | ||
Included in other current liabilities | $ 8,782 | $ 9,946 |
Included in other long-term liabilities | 16,550 | 13,730 |
Workers' compensation liability | $ 25,332 | $ 23,676 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Insurance Receivable for Claims (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Postemployment Benefits [Abstract] | ||
Included in other non-current assets | $ 2,743 | $ 2,318 |
Employee Benefits - Summary o_2
Employee Benefits - Summary of Equity-Based Awards for Employees (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Common Stock Awards | |
Awards | |
Nonvested common stock awards, Beginning balance (in shares) | shares | 157,117 |
Granted (in shares) | shares | 7,690 |
Vested (in shares) | shares | (569) |
Forfeited/Cancelled (in shares) | shares | (398) |
Nonvested common stock awards, Ending balance (in shares) | shares | 163,840 |
Weighted Average Grant Date Fair Value Per Share | |
Nonvested performance-based stock awards, Beginning balance (in USD per share) | $ / shares | $ 77.31 |
Granted (in USD per share) | $ / shares | 109.76 |
Vested (in USD per share) | $ / shares | 82.14 |
Forfeited/Cancelled (in USD per share) | $ / shares | 86.72 |
Nonvested performance-based stock awards, Ending balance (in USD per share) | $ / shares | $ 78.79 |
Performance-Based Stock Awards | |
Awards | |
Nonvested performance-based stock awards/units, Beginning balance (in shares) | shares | 126,053 |
Granted (in shares) | shares | 69,281 |
Forfeited/Cancelled (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Nonvested performance-based stock awards/units, Ending balance (in shares) | shares | 195,334 |
Weighted Average Grant Date Fair Value Per Share | |
Nonvested performance-based stock awards/units, Beginning balance (in USD per share) | $ / shares | $ 103.37 |
Granted (in USD per share) | $ / shares | 109.09 |
Vested (in USD per share) | $ / shares | 0 |
Forfeited/Cancelled (in USD per share) | $ / shares | 0 |
Nonvested performance-based stock awards/units, Ending balance (in USD per share) | $ / shares | $ 105.40 |
Performance-Based Restricted Stock Units | |
Awards | |
Nonvested performance-based stock awards/units, Beginning balance (in shares) | shares | 15,711 |
Granted (in shares) | shares | 0 |
Forfeited/Cancelled (in shares) | shares | (289) |
Vested (in shares) | shares | 0 |
Nonvested performance-based stock awards/units, Ending balance (in shares) | shares | 15,422 |
Weighted Average Grant Date Fair Value Per Share | |
Nonvested performance-based stock awards/units, Beginning balance (in USD per share) | $ / shares | $ 80.55 |
Granted (in USD per share) | $ / shares | 0 |
Vested (in USD per share) | $ / shares | 0 |
Forfeited/Cancelled (in USD per share) | $ / shares | 80.55 |
Nonvested performance-based stock awards/units, Ending balance (in USD per share) | $ / shares | $ 80.55 |
Employee Benefits - Summary o_3
Employee Benefits - Summary of Share-Based Compensation Expense Under the 2014 Omnibus Incentive Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 3,436 | $ 3,418 |
2014 Omnibus Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 3,436 | 3,418 |
2014 Omnibus Incentive Plan | Common Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 1,393 | 1,531 |
2014 Omnibus Incentive Plan | Common Stock Awards | Non-Employee Common Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 148 | 124 |
2014 Omnibus Incentive Plan | Performance-Based Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 1,563 | 1,315 |
2014 Omnibus Incentive Plan | Liability Performance-Based Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 26 | 206 |
2014 Omnibus Incentive Plan | Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 306 | $ 242 |
Employee Benefits - Summary o_4
Employee Benefits - Summary of Stock Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | $ 3,436 | $ 3,418 |
Cost of sales | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | 165 | 149 |
Selling | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | 136 | 62 |
Administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | $ 3,135 | $ 3,207 |
Employee Benefits - Unrecognize
Employee Benefits - Unrecognized Share-Based Compensation Expense Related to Unvested Awards (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense on Unvested Awards | $ 16,714 |
Common Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense on Unvested Awards | $ 5,561 |
Weighted Average Remaining Vesting Period (in years) | 1 year 8 months 12 days |
Performance-Based Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense on Unvested Awards | $ 11,112 |
Weighted Average Remaining Vesting Period (in years) | 2 years 1 month 6 days |
Performance-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense on Unvested Awards | $ 41 |
Weighted Average Remaining Vesting Period (in years) | 1 month 6 days |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Effective tax rate (as percent) | 26.80% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transactions [Abstract] | ||
Sales | $ 4,015 | $ 560 |
Purchases | 666 | 407 |
Rent | $ 352 | $ 314 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Accounts receivable, related parties | $ 2,300 | $ 3,300 | |
Related party sales | 4,015 | $ 560 | |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Accounts receivable, related parties | $ 1,500 | $ 2,500 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Accrued General Insurance Reserves (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Included in other current liabilities | $ 7,162 | $ 7,479 |
Included in other long-term liabilities | 16,621 | 17,528 |
Total | $ 23,783 | $ 25,007 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Insurance Receivable for Claims (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Commitments And Contingencies Disclosure [Line Items] | ||
Total insurance receivables and indemnification assets included in other non-current assets | $ 2,743 | $ 2,318 |
General Liability | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Insurance receivables and indemnification assets for claims under fully insured policies | 2,643 | 4,933 |
Insurance receivables for claims that exceeded the stop loss limit | 75 | 380 |
Total insurance receivables and indemnification assets included in other non-current assets | $ 2,718 | $ 5,313 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Details) aluminumPound in Millions | Mar. 31, 2023 aluminumPound |
Commitments and Contingencies Disclosure [Abstract] | |
2023 (in pounds) | 12 |
2024 (in pounds) | 14.4 |
2025 (in pounds) | 17.3 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) acquistion | Mar. 31, 2022 USD ($) acquistion | |
Business Acquisition [Line Items] | ||
Number of businesses acquired | acquistion | 2 | 1 |
Acquisition-related costs | $ 600 | $ 700 |
Goodwill deduction for tax purposes | 13,000 | |
Amortization | 11,435 | 11,097 |
Income tax expense | 18,085 | 12,403 |
Interest expense | 9,670 | 10,600 |
Combined Business Acquisitions | ||
Business Acquisition [Line Items] | ||
Amortization | 400 | 1,900 |
Income tax expense | $ 100 | $ 400 |
Business Combinations - Summary
Business Combinations - Summary of Business Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 12, 2023 | Feb. 13, 2023 | Mar. 01, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Cash Paid | $ 38,018 | ||||
Seller Obligations | 1,131 | ||||
Total Purchase Price | 39,149 | ||||
Revenue | 2,637 | ||||
Net Income | 66 | ||||
Anchor | |||||
Business Acquisition [Line Items] | |||||
Cash Paid | $ 35,928 | 35,928 | |||
Seller Obligations | 1,000 | 1,000 | |||
Total Purchase Price | $ 36,928 | ||||
Revenue | 2,193 | ||||
Net Income | 51 | ||||
Other | |||||
Business Acquisition [Line Items] | |||||
Cash Paid | $ 2,090 | $ 8,050 | 2,090 | $ 8,050 | |
Seller Obligations | 131 | 1,878 | 131 | 1,878 | |
Total Purchase Price | $ 2,221 | $ 9,928 | |||
Revenue | 444 | 915 | |||
Net Income | $ 15 | $ 97 |
Business Combinations - Summa_2
Business Combinations - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 12, 2023 | Feb. 13, 2023 | Mar. 01, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 392,625 | $ 373,555 | ||||
Less seller obligations | 1,131 | |||||
Cash Paid | 38,018 | |||||
2023 Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Cash | 10 | |||||
Accounts receivable | 3,661 | |||||
Inventories | 1,591 | |||||
Other current assets | 1,732 | |||||
Property and equipment | 2,809 | |||||
Operating lease right-of-use asset | 28 | |||||
Intangibles | 17,540 | |||||
Goodwill | 13,540 | |||||
Other non-current assets | 197 | |||||
Accounts payable and other current liabilities | (1,950) | |||||
Other long-term liabilities | (9) | |||||
Fair value of assets acquired and purchase price | 39,149 | |||||
Less seller obligations | 1,131 | |||||
Cash Paid | 38,018 | |||||
Anchor | ||||||
Business Acquisition [Line Items] | ||||||
Cash | 10 | |||||
Accounts receivable | 3,661 | |||||
Inventories | 1,527 | |||||
Other current assets | 1,732 | |||||
Property and equipment | 2,428 | |||||
Operating lease right-of-use asset | 0 | |||||
Intangibles | 16,420 | |||||
Goodwill | 12,870 | |||||
Other non-current assets | 184 | |||||
Accounts payable and other current liabilities | (1,904) | |||||
Other long-term liabilities | 0 | |||||
Fair value of assets acquired and purchase price | 36,928 | |||||
Less seller obligations | $ 1,000 | 1,000 | ||||
Cash Paid | $ 35,928 | 35,928 | ||||
Other | ||||||
Business Acquisition [Line Items] | ||||||
Cash | 0 | $ 87 | ||||
Accounts receivable | 0 | 772 | ||||
Inventories | 64 | 684 | ||||
Other current assets | 0 | 21 | ||||
Property and equipment | 381 | 1,049 | ||||
Operating lease right-of-use asset | 28 | 0 | ||||
Intangibles | 1,120 | 4,634 | ||||
Goodwill | 670 | 2,743 | ||||
Other non-current assets | 13 | 7 | ||||
Accounts payable and other current liabilities | (46) | (69) | ||||
Other long-term liabilities | (9) | 0 | ||||
Fair value of assets acquired and purchase price | 2,221 | 9,928 | ||||
Less seller obligations | $ 131 | $ 1,878 | 131 | 1,878 | ||
Cash Paid | $ 2,090 | $ 8,050 | $ 2,090 | $ 8,050 |
Business Combinations - Estimat
Business Combinations - Estimates of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 10,969 | $ 3,125 |
Weighted Average Estimated Useful Life (in years) | 12 years | 12 years |
Trademarks and tradenames | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 5,466 | $ 1,136 |
Weighted Average Estimated Useful Life (in years) | 15 years | 15 years |
Covenants not-to-compete | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 285 | $ 374 |
Weighted Average Estimated Useful Life (in years) | 5 years | 5 years |
Backlog | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 820 | $ 0 |
Weighted Average Estimated Useful Life (in years) | 1 year | 0 years |
Business Combinations - Pro For
Business Combinations - Pro Forma Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Net revenue | $ 667,915 | $ 623,603 |
Net income | $ 49,590 | $ 34,974 |
Basic net income per share (in USD per share) | $ 1.77 | $ 1.19 |
Diluted net income per share (in USD per share) | $ 1.75 | $ 1.18 |
Income Per Common Share - Addit
Income Per Common Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Dilutive effect of outstanding restricted stock awards after application of the Treasury Stock Method (in shares) | 203 | 278 |
Common stock shares excluded from calculation of diluted net income per common share (in shares) | 4 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
May 04, 2023 | Apr. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Subsequent Event [Line Items] | ||||
Cash dividends declared per share (in USD per share) | $ 1.23 | $ 1.22 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared per share (in USD per share) | $ 0.33 | |||
Subsequent Event | Term Loan | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Term loan facility maturity period (in years) | 7 years | |||
Subsequent Event | ABL Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | One Month | ||||
Subsequent Event [Line Items] | ||||
Margin interest rate (as percent) | 0.11% | |||
Subsequent Event | ABL Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Weighted Average | Three Months | ||||
Subsequent Event [Line Items] | ||||
Margin interest rate (as percent) | 0.26% | |||
Subsequent Event | ABL Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | Six Months | ||||
Subsequent Event [Line Items] | ||||
Margin interest rate (as percent) | 0.43% |