Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CBPX | |
Entity Registrant Name | Continental Building Products, Inc. | |
Entity Central Index Key | 1592480 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 44,120,336 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net Sales | $92,176 | $86,973 |
Costs, expenses and other income: | ||
Cost of goods sold | 71,675 | 73,196 |
Selling and administrative | 8,428 | 7,496 |
Long Term Incentive Plan funded by Lone Star | 4,171 | |
Total costs and operating expenses | 84,274 | 80,692 |
Operating income (loss) | 7,902 | 6,281 |
Other expense, net | -448 | -5,186 |
Interest expense, net | -4,221 | -14,176 |
Income (loss) before earnings on equity method investment and income tax | 3,233 | -13,081 |
Earnings from equity method investment | 59 | |
Income (loss) before income tax | 3,292 | -13,081 |
Income tax (expense) benefit | -1,272 | 4,458 |
Net income (loss) | $2,020 | ($8,623) |
Net income (loss) per common share: | ||
Basic | $0.05 | ($0.22) |
Diluted | $0.05 | ($0.22) |
Weighted average shares outstanding: | ||
Basic | 44,076,513 | 39,493,722 |
Diluted | 44,092,900 | 39,493,722 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $2,020 | ($8,623) |
Foreign currency translation adjustment | -1,563 | -841 |
Gain on derivatives qualifying as cash flow hedges, net of tax | 93 | |
Other comprehensive income (loss), net of tax | -1,470 | -841 |
Comprehensive income (loss) | $550 | ($9,464) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash | $18,505 | $15,627 |
Receivables, net | 38,053 | 40,152 |
Inventories | 32,920 | 29,564 |
Prepaid and other current assets | 7,337 | 8,330 |
Deferred taxes, current | 3,155 | 3,157 |
Total current assets | 99,970 | 96,830 |
Property, plant and equipment, net | 345,118 | 353,652 |
Customer relationships and other intangibles, net | 106,216 | 110,809 |
Goodwill | 119,945 | 119,945 |
Equity method investment | 10,765 | 10,919 |
Debt issuance costs | 8,369 | 8,826 |
Total Assets | 690,383 | 700,981 |
Liabilities and equity | ||
Accounts payable | 22,355 | 24,561 |
Accrued and other liabilities | 7,740 | 11,428 |
Notes payable, current portion | 0 | 0 |
Total current liabilities | 30,095 | 35,989 |
Deferred taxes and other long-term liabilities | 12,812 | 12,494 |
Notes payable, non-current portion | 339,236 | 349,125 |
Total liabilities | 382,143 | 397,608 |
Equity | ||
Undesignated preferred stock, par value $0.001 per share; 10,000,000 shares authorized, no shares issued and outstanding at March 31, 2015 and December 31, 2014 | ||
Common stock, $0.001 par value per share; 190,000,000 shares authorized, 44,120,336 and 44,069,000 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 44 | 44 |
Additional paid-in capital | 292,710 | 288,393 |
Accumulated other comprehensive income (loss) | -4,530 | -3,060 |
Accumulated earnings | 20,016 | 17,996 |
Total equity | 308,240 | 303,373 |
Total liabilities and equity | $690,383 | $700,981 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Undesignated preferred Stock, par value | $0.00 | $0.00 |
Undesignated preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Undesignated preferred Stock, shares issued | 0 | 0 |
Undesignated preferred Stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 190,000,000 | 190,000,000 |
Common stock, shares issued | 44,120,336 | 44,069,000 |
Common stock, shares outstanding | 44,120,336 | 44,069,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income (loss) | $2,020 | ($8,623) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 13,129 | 13,883 |
Bad debt expense | -175 | |
Amortization of debt issuance costs and debt discount | 547 | 7,526 |
Loss on disposal of property, plant and equipment | 42 | |
Earnings from equity method investment | -59 | |
Share based compensation | 146 | 86 |
Deferred taxes | 366 | -4,329 |
Change in assets and liabilities: | ||
Receivables | 2,171 | -5,994 |
Inventories | -3,540 | -9,817 |
Prepaid expenses and other current assets | 962 | -459 |
Accounts payable | -1,963 | -1,993 |
Accrued and other current liabilities | -3,479 | -6,350 |
Other long term liabilities | -45 | 129 |
Net cash provided by (used in) operating activities | 10,122 | -15,941 |
Cash flows from investing activities: | ||
Capital expenditures | -721 | -549 |
Software purchased or developed | -296 | -735 |
Distributions from equity method investment | 214 | |
Net cash used in investing activities | -803 | -1,284 |
Cash flows from financing activities: | ||
Net proceeds from issuance of common stock | 151,354 | |
Principal payments for First Lien Credit Agreement | -10,000 | -1,038 |
Repayment of Second Lien Credit Agreement | -155,000 | |
Proceeds from revolving credit facility, net | 13,500 | |
Capital Contribution from Lone Star Funds | 4,171 | |
Net cash (used in) provided by financing activities | -5,829 | 8,816 |
Effect of foreign exchange rates on cash and cash equivalents | -612 | -357 |
Net change in cash and cash equivalents | 2,878 | -8,766 |
Cash, beginning of period | 15,627 | 11,822 |
Cash, end of period | $18,505 | $3,056 |
Background_and_Nature_of_Opera
Background and Nature of Operations | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Background and Nature of Operations | 1. Background and Nature of Operations |
Description of Business | |
Continental Building Products, Inc. (“CBP”, or the “Company”) is a Delaware corporation. Prior to the acquisition of the gypsum division of Lafarge North America Inc. (“Lafarge N.A.”) on August 30, 2013, further described below, CBP had no operating activity. The accompanying consolidated financial statements of CBP for the three months ended March 31, 2015 and March 31, 2014 contain activity of the acquired business. | |
The Company manufactures gypsum wallboard and related products for commercial and residential buildings and houses. The Company operates a network of three highly efficient wallboard facilities, all located in the eastern United States and produces joint compound at one plant in the United States and at another plant in Canada. | |
The Acquisition | |
On June 24, 2013, Lone Star Funds (“Lone Star”) entered into a definitive agreement with Lafarge N.A. to purchase the assets of its North American gypsum division for a total purchase price of approximately $703 million (the “Acquisition”) in cash. The closing of the Acquisition occurred on August 30, 2013. | |
Initial Public Offering | |
On February 10, 2014, the Company completed the initial public offering of 11,765,000 shares of its common stock at an offering price of $14.00 per share (the “Initial Public Offering”). Net proceeds from the Initial Public Offering after underwriting discounts and commissions, but before other closing costs, were approximately $154 million. The net proceeds were used to pay a $2 million one-time payment to Lone Star in consideration for the termination of the Company’s asset advisory agreement with affiliates of Lone Star (See Note 10, Related Party Transactions). The remaining $152 million of net proceeds and cash on hand of $6.1 million were used to repay the $155 million Second Lien Term Loan in full along with a prepayment premium of $3.1 million (See Note 13, Debt). In expectation of the Initial Public Offering, on February 3, 2014, the Company effected a 32,304 for one stock split of its common stock. The Company’s common stock trades on the New York Stock Exchange under the symbol “CBPX”. | |
Secondary Public Offering | |
On March 18, 2015, LSF8 Gypsum Holdings, L.P. (“LSF8”), an affiliate of Lone Star, sold 5,000,000 shares of the Company’s common stock. As a result of the sale, the aggregate beneficial ownership of Lone Star fell below 50% of the Company’s outstanding shares of common stock and the Company no longer qualified as a “Controlled Company” under the corporate governance standards of New York Stock Exchange. As of the closing of the offering and March 31, 2015, the Company was in compliance with the New York Stock Exchange transition rules regarding the loss of Controlled Company status. The decrease in ownership by Lone Star or its affiliates to below 50% triggered an aggregate of $4.2 million in payments to certain officers and the estate of our former CEO under the LSF8 Gypsum Holdings, L.P. Long Term Incentive Plan which are funded by LSF8 (See Note 10, Related Party Transaction). As these payments arose out of employment with the Company, the $4.2 million expense was recorded on the Company’s books in the first quarter of 2015 and will also be deductible for tax purposes. |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies |
Basis of Presentation | |
The accompanying consolidated financial statements for CBP have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions have been eliminated. | |
Basis of Presentation for Interim Periods | |
Certain information and footnote disclosures normally included for the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted for the interim periods presented. Management believes that the unaudited interim financial statements include all adjustments (which are normal and recurring in nature) necessary to present fairly the financial position of the Company and results of operations and cash flows for the periods presented. | |
The results of operations for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. Seasonal changes and other conditions can affect the sales volumes of the Company’s products. Therefore, the financial results for any interim period do not necessarily indicate the expected results for the year. | |
The financial statements should be read in conjunction with CBP’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K for the fiscal year then-ended (the “2014 10-K”). The Company has continued to follow the accounting policies set forth in those financial statements. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which provides accounting guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. ASU 2014-09 will be effective for the Company in the first quarter of 2017 and requires retroactive application on either a full or modified basis. Early application is not permitted. The Company is currently evaluating ASU 2014-09 to determine its impact on its consolidated financial statements and disclosures. In April 2015, the FASB proposed to defer implementation of this ASU by one year. Under this proposal, the ASU will be effective for the Company in the first quarter of 2018. | |
In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern : Presentation of Financial Statements— Going Concern (Subtopic 205-40). This ASU defines when and how companies are required to disclose going concern uncertainties, which must be evaluated each interim and annual period. Specifically, it requires management to determine whether substantial doubt exists regarding the entity’s going concern presumption. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). If substantial doubt exists, certain disclosures are required; the extent of those disclosures depends on an evaluation of management’s plans (if any) to mitigate the going concern uncertainty. The provisions of ASU 2014-15 will be effective for annual periods ending after December 15, 2016, and to annual and interim periods thereafter. Early adoption is permitted. The ASU should be applied on a prospective basis. The Company believes the adoption of this ASU will not have a material impact on the Company’s disclosures. | |
In April 2015, the FASB issued ASU 2015-03, which changes the presentation of debt issuance costs in financial statements. Under the ASU, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. ASU 2015-03 will be effective for the Company in the first quarter of 2016. Early adoption is permitted. Upon adoption, the guidance must be applied retroactively to all periods presented in the financial statements. The adoption of this guidance will result in a reclassification of debt issuance costs on the Company’s balance sheet, but will not have a material impact on our results of operations. |
Receivables
Receivables | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Receivables [Abstract] | |||||||||
Receivables | 3. Receivables | ||||||||
Receivables consist of the following: | |||||||||
(in thousands) | As of | As of | |||||||
March 31, 2015 | December 31, 2014 | ||||||||
Trade receivables | $ | 39,979 | $ | 42,460 | |||||
Total allowances | (1,926 | ) | (2,308 | ) | |||||
Total receivables, net | $ | 38,053 | $ | 40,152 | |||||
Trade receivables are recorded net of credit memos issued during the normal course of business. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | 4. Inventories | ||||||||
Inventories consist of the following: | |||||||||
(in thousands) | As of | As of | |||||||
March 31, 2015 | December 31, 2014 | ||||||||
Finished products | $ | 7,899 | $ | 4,875 | |||||
Raw materials | 17,151 | 17,010 | |||||||
Supplies and other | 7,870 | 7,679 | |||||||
Total inventories | $ | 32,920 | $ | 29,564 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | 5. Property, Plant and Equipment | ||||||||
Property, plant and equipment consist of the following: | |||||||||
As of | As of | ||||||||
March 31, 2015 | December 31, 2014 | ||||||||
Land | $ | 12,927 | $ | 12,930 | |||||
Buildings | 111,782 | 111,506 | |||||||
Plant machinery | 269,940 | 269,633 | |||||||
Mobile equipment | 3,518 | 3,448 | |||||||
Construction in progress | 2,857 | 3,165 | |||||||
Property, plant and equipment, at cost | 401,024 | 400,682 | |||||||
Accumulated depreciation | (55,906 | ) | (47,030 | ) | |||||
Total property, plant and equipment, net | $ | 345,118 | $ | 353,652 | |||||
Depreciation expense was $8.9 million for the three months ended March 31, 2015 and $8.8 million for the three months ended March 31, 2014. |
Software_and_Other_Intangibles
Software and Other Intangibles | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Software and Other Intangibles | 6. Software and Other Intangibles | ||||||||
Customer relationships and other intangibles consist of the following: | |||||||||
(in thousands) | As of | As of | |||||||
March 31, 2015 | December 31, 2014 | ||||||||
Customer relationships | $ | 116,663 | $ | 117,243 | |||||
Purchased and internally developed Software | 4,477 | 4,332 | |||||||
Trademarks | 14,833 | 14,905 | |||||||
Customer relationships and other intangibles, at cost | 135,973 | 136,480 | |||||||
Accumulated amortization | (29,757 | ) | (25,671 | ) | |||||
Customer relationships and other intangibles, net | $ | 106,216 | $ | 110,809 | |||||
Amortization expense was $4.2 million for the three months ended March 31, 2015 and $5.1 million for the three months ended March 31, 2014. | |||||||||
Amortization of customer relationships is done over a 15-year period using an accelerated method that reflects the expected future cash flows from the acquired customer-related intangible asset. Trademarks are amortized on a straight-line basis over the estimated useful life of 15 years. | |||||||||
Amortization expense related to capitalized software was $0.4 million for three months ended March 31, 2015. No amortization for capitalized software was recorded for the three months ended March 31, 2014 as development of a new ERP system was in process and the software not yet put into service. Software development costs are amortized over a three-year life with the expense recorded in selling and administrative expense. |
Accrued_and_Other_Liabilities
Accrued and Other Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued and Other Liabilities | 7. Accrued and Other Liabilities | ||||||||
Accrued and other liabilities consist of the following: | |||||||||
(in thousands) | As of | As of | |||||||
March 31, 2015 | December 31, 2014 | ||||||||
Vacation and other employee-related costs | $ | 2,468 | 7,945 | ||||||
VAT taxes | 811 | 1,220 | |||||||
Income taxes | — | — | |||||||
Long Term Incentive Plan funded by Lone Star | 1,963 | — | |||||||
Other | 2,498 | 2,263 | |||||||
Total accrued and other liabilities | $ | 7,740 | $ | 11,428 | |||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes |
The Company’s projected estimated effective tax rate for the 2015 fiscal year is approximately 38% and the Company did not recognize any discrete tax items for the three months ended March 31, 2015. At both, March 31, 2015 and December 31, 2014, there was a valuation allowance of $0.4 million related to the Company’s Canadian operations. | |
The Company is subject to audit examinations at federal, state and local levels by tax authorities in those jurisdictions. In addition, the Canadian operations are subject to audit examinations at federal and provincial levels by tax authorities in those jurisdictions. The tax matters challenged by the tax authorities are typically complex; therefore, the ultimate outcome of these challenges is subject to uncertainty. The Company has not identified any issues that did not meet the recognition threshold or would be impacted by the measurement provisions of the uncertain tax position guidance. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Commitments and Contingencies | 9. Commitments and Contingencies | ||||||||||||||||||||||||||||||||
The Company leases certain buildings and equipment. The Company’s facility and equipment leases may provide for escalations of rent or rent abatements and payment of pro rata portions of building operating expenses. Minimum lease payments are recognized on a straight-line basis over the minimum lease term. During the three months ended March 31, 2015 and March 31, 2014, total expenses under operating leases were $1.1 million and $1.4 million, respectively. The Company also has noncapital purchase commitments that primarily relate to gas, gypsum, paper and other raw materials. | |||||||||||||||||||||||||||||||||
The table below shows the future minimum lease payments due under non-cancelable operating leases and purchase commitments at March 31, 2015: | |||||||||||||||||||||||||||||||||
(in thousands) | Total | Remaining | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | |||||||||||||||||||||||||
2015 | |||||||||||||||||||||||||||||||||
Operating leases (1) | $ | 5,934 | $ | 1,321 | $ | 1,320 | $ | 1,183 | $ | 616 | $ | 1,494 | $ | — | $ | — | |||||||||||||||||
Purchase commitments | 163,165 | 23,406 | 29,414 | 29,296 | 19,410 | 16,529 | 14,145 | 30,965 | |||||||||||||||||||||||||
Total commitments | $ | 169,099 | $ | 24,727 | $ | 30,734 | $ | 30,479 | $ | 20,026 | $ | 18,023 | $ | 14,145 | $ | 30,965 | |||||||||||||||||
-1 | Future minimum lease payments over the non-cancelable lease terms of the operating leases. | ||||||||||||||||||||||||||||||||
Under certain circumstances, the Company provides letters of credit related to its natural gas and other supply purchases. At March 31, 2015 and December 31, 2014, the Company had outstanding letters of credit of approximately $3.6 million and $4.8 million, respectively. | |||||||||||||||||||||||||||||||||
In the ordinary course of business, the Company executes contracts involving indemnifications standard in the industry. These indemnifications might include claims relating to any of the following: environmental and tax matters; intellectual property rights; governmental regulations and employment-related matters; customer, supplier, and other commercial contractual relationships; and financial matters. While the maximum amount to which the Company may be exposed under such agreements cannot be estimated, it is the opinion of management that these indemnifications are not expected to have a materially adverse effect on the Company’s financial condition, results of operations or liquidity. | |||||||||||||||||||||||||||||||||
In the ordinary course of business, the Company is involved in certain legal actions and claims, including proceedings under laws and regulations relating to environmental and other matters. Because such matters are subject to many uncertainties and the outcomes are not predictable with assurance, the total liability for these legal actions and claims cannot be determined with certainty. When the Company determines that it is probable that a liability for environmental matters, legal actions or other contingencies has been incurred and the amount of the loss is reasonably estimable, an estimate of the costs to be incurred is recorded as a liability in the financial statements. As of March 31, 2015 and March 31, 2014, such liabilities were not material to the Company’s financial statements. While management believes its accruals for such liabilities are adequate, the Company may incur costs in excess of the amounts provided. Although the ultimate amount of liability that may result from these matters or actions is not ascertainable, the Company believes that any amounts exceeding the recorded accruals will not materially affect its financial condition. | |||||||||||||||||||||||||||||||||
In March 2015, a group of homebuilders commenced a lawsuit against the Company and other US wallboard manufacturers alleging that such manufacturers had conspired to fix the price of wallboard in violation of antitrust and unfair competition laws. The complaint also alleges that the manufacturers agreed to abolish the use of “job quotes” and agreed to restrict the supply of wallboard in order to support the allegedly collusive price increases. The Company denies any wrongdoing of the type alleged in the complaint and believes that it has meritorious defenses to the allegations and will vigorously defend itself in this case. The case has been transferred to the Eastern District of Pennsylvania for coordinated and consolidated pretrial proceedings with existing antitrust litigation in that district. The Company does not believe the lawsuit will have a material adverse effect on its financial condition, results of operation or liquidity. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions |
Since the Acquisition, the Company is no longer part of Lafarge N.A. but had a Transition Services Agreement to help with certain ongoing back-office functions. These functions included, among others, accounting, treasury, tax, and information technology services. The Company paid Lafarge N.A. a fee for these services of $129,700 per month through September 2014. Thereafter, the Company reduced the services provided by Lafarge N.A. and the fees paid until the Agreement was terminated in December 2014. | |
On August 30, 2013, the Company entered into an advisory agreement with an affiliate of Lone Star to provide certain management oversight services to the Company, including assistance and advice on strategic plans, obtaining and maintaining certain legal documents, and communicating and coordinating with service providers. The Company paid 110% of actual costs for the services provided. No services were provided in the first quarter of 2014. The agreement was terminated upon the closing of the Initial Public Offering in the first quarter of 2014 and in connection therewith, the Company paid a termination fee of $2.0 million that is included in non-operating expense. | |
In connection with the March 2015 secondary public offering, certain executives of the Company earned incentive payments totaling approximately $4.2 million. These payments were earned under the LSF8 Gypsum Holdings, L.P. Long Term Incentive Plan (the “LTIP”). Under the LTIP, certain of the Company’s officers and the estate of the Company’s former CEO are eligible to receive payments from LSF8 in the event of a monetization event, as further described in the 2014 10-K. LSF8 is responsible for funding any payments under the LTIP, including those paid in connection with the March 2015 secondary public offering (See Note 1, Background and Nature of Operations). As these payments arose out of employment with the Company, the Company is required to record the expense of these payments and recognize the funding by LSF8 as additional paid in capital. The $4.2 million related to the March 2015 secondary public offering was recorded as an expense to the Company, that will also be tax deductible, and a capital contribution by LSF8 in the first quarter of fiscal 2015. |
Investment_in_Seven_Hills
Investment in Seven Hills | 3 Months Ended |
Mar. 31, 2015 | |
Investments Schedule [Abstract] | |
Investment in Seven Hills | 11. Investment in Seven Hills |
The Company is a party to a paperboard liner venture with an unaffiliated third-party named Seven Hills Paperboard, LLC (“Seven Hills”) that provides the Company with a continuous supply of high-quality recycled paperboard liner to meet its ongoing production requirements. | |
The Company has evaluated the characteristics of its investment and determined that Seven Hills would be deemed a variable interest entity, but that it did not have the power to direct the principal activities most impacting the economic performance of Seven Hills, and is thus not the primary beneficiary. As such, the Company accounts for this investment in Seven Hills under the equity method of accounting. | |
Paperboard purchased from Seven Hills was $11.1 million and $12.9 million for the three months ended March 31, 2015 and March 31, 2014, respectively. As of March 31, 2015, the Company has certain paper purchase commitments to Seven Hills totaling $39.6 million through 2018. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Fair Value Disclosures [Abstract] | ||||
Fair Value Measurements | 12. Fair Value Measurements | |||
U.S. GAAP provides a framework for measuring fair value, establishes a fair value hierarchy of the valuation techniques used to measure the fair value and requires certain disclosures relating to fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in a market with sufficient activity. | ||||
The three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value is as follows: | ||||
• | Level 1—Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities that a Company has the ability to access; | |||
• | Level 2—Inputs, other than the quoted market prices included in Level 1, which are observable for the asset or liability, either directly or indirectly; and | |||
• | Level 3—Unobservable inputs for the asset or liability which is typically based on an entity’s own assumptions when there is little, if any, related market data available. | |||
The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by the Company. The fair values of receivables, accounts payable, accrued costs and other current liabilities approximate the carrying values as a result of the short-term nature of these instruments. | ||||
The Company estimates the fair value of its debt by discounting the future cash flows of each instrument using estimated market rates of debt instruments with similar maturities and credit profiles. These inputs are classified as Level 3 within the fair value hierarchy. As of March 31, 2015 and 2014, the carrying value reported in the consolidated balance sheet for the Company’s notes payable approximated its fair value. | ||||
The only assets or liabilities the Company had at March 31, 2015 that are recorded at fair value on a recurring basis are the interest rate cap that the Company entered into on March 31, 2014 that had zero fair value as of March 31, 2015 (see Note 13, Debt) and a fair value of $0.03 million as of December 31, 2014, and natural gas hedges that had a negative fair value of $0.8 million at March 31, 2015, net of tax amount of $0.5 million, and $0.9 million at December 31, 2014, net of tax amount of $0.5 million. Both the interest rate cap and the natural gas hedges are classified within Level 2 of the fair value hierarchy as they are valued using third party pricing models which contain inputs that are derived from observable market data. Generally, the Company obtains its Level 2 pricing inputs from the counterparties. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. | ||||
Assets and liabilities that are measured at fair value on a non-recurring basis include intangible assets and goodwill. These items are recognized at fair value when they are considered to be impaired. | ||||
There were no fair value adjustments for assets and liabilities measured on a non-recurring basis. The Company discloses fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. |
Debt
Debt | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt | 13. Debt | ||||||||
Debt consists of the following: | |||||||||
(in thousands) | As of | As of | |||||||
March 31, 2015 | December 31, 2014 | ||||||||
First Lien Credit Agreement maturing on August 28, 2020; interest rate of LIBOR (with a 1% floor) plus 3.00% at March 31, 2015 and 3.75% at March 31, 2014 | $ | 341,988 | $ | 351,988 | |||||
Less: Original issue discount (net of amortization) | (2,752 | ) | (2,863 | ) | |||||
Total debt | 339,236 | 349,125 | |||||||
Less: Current portion of long-term debt | — | — | |||||||
Long-term debt | $ | 339,236 | $ | 349,125 | |||||
On August 30, 2013, the Company and its subsidiary Continental Building Products Operating Company, LLC (“OpCo”) entered into a first lien credit agreement with Credit Suisse AG, as administrative agent, Credit Suisse Securities (USA) LLC and RBC Capital Markets, as joint lead arrangers and joint bookrunners, and Royal Bank of Canada, as syndication agent (as amended on December 2, 2013, the “First Lien Credit Agreement”). The First Lien Credit Agreement provided OpCo a term loan facility at an initial amount of $415.0 million and a U.S. dollar revolving loan facility of $40.0 million and a Canadian dollar and/or U.S. dollar revolving facility of $10.0 million (such aggregate $50.0 million revolving facilities together, the “Revolver”), which may be borrowed by OpCo or by its subsidiary, Continental Building Products Canada Inc. in Canadian dollars or U.S. dollars. | |||||||||
On August 30, 2013, the Company and OpCo entered into a second lien credit agreement with Credit Suisse AG, as administrative agent, Credit Suisse Securities (USA) LLC and RBC Capital Markets, as joint lead arrangers and joint bookrunners, and Royal Bank of Canada, as syndication agent (as amended on December 2, 2013, the “Second Lien Credit Agreement”). The Second Lien Credit Agreement provided OpCo a term loan facility of $155.0 million (the “Second Lien Term Loan”). | |||||||||
On February 10, 2014, the Company completed the Initial Public Offering and used $152 million of net proceeds from the Initial Public Offering and cash on hand of $6.1 million to repay the $155 million Second Lien Term Loan in full along with a prepayment premium of $3.1 million. The $3.1 million prepayment premium was recorded in other (expense) income. The prepayment of the Second Lien Term Loan also resulted in the write-off of $6.9 million in original issue discount and deferred financing fees that were recorded in interest expense. | |||||||||
Interest under the First Lien Credit Agreement is floating. The interest rate spread over LIBOR, which has a 1% floor, was reduced by 50 basis points in May 2014, from 3.75% to 3.25%, as a result of the Company achieving a total leverage ratio of less than four times net debt to the trailing twelve months adjusted earnings before interest, depreciation and amortization, as of March 31, 2014, as calculated pursuant to the First Lien Credit Agreement. This reduced interest rate for the First Lien Credit Agreement will be in effect for as long as the leverage ratio, as calculated pursuant to the First Lien Credit Agreement, remains below four. The margin applicable to the borrowing was further reduced in the third quarter 2014 by 25 basis points to 3.00% after the Company achieved a B2 rating with a stable outlook by Moody’s and will remain in effect as long as this rating and outlook are maintained or better. | |||||||||
The First Lien Credit Agreement is secured by the underlying property and equipment of the Company. During the first quarter of 2015, the Company pre-paid $10.0 million of principal payments and no further quarterly mandatory principal payments are required until the final payment of $342.0 million due on August 28, 2020. The annual effective interest rate on the First Lien Credit Agreement including original issue discount and amortization of debt issuance costs was 4.7% at March 31, 2015. | |||||||||
There were no amounts outstanding under the Revolver as of March 31, 2015. The interest rate on amounts outstanding under the Revolver is floating, based on LIBOR (with a floor of 1%), plus 225 basis points. In addition, CBP pays a facility fee of 50 basis points per annum on the total Revolver. Availability under the Revolver, based on draws and outstanding letters of credit and non-existence of violations of covenants, was $46.4 million at March 31, 2015. | |||||||||
Total cash interest paid for the three months ended March 31, 2015 and March 31, 2014 was $3.5 million and $6.6 million, respectively. | |||||||||
The table below shows the future minimum principal payments due under the First Lien Credit Agreement. | |||||||||
(in thousands) | Amount Due | ||||||||
2015 | — | ||||||||
2016 | — | ||||||||
2017 | — | ||||||||
2018 | — | ||||||||
2019 | — | ||||||||
Thereafter | $ | 341,988 | |||||||
Under the terms of the First Lien Credit Agreement, the Company is required to comply with certain covenants, including among others, a limitation of indebtedness, limitation on liens, and limitations on certain cash distributions. One single financial covenant governs all of the Company’s debt and applies only if the outstanding borrowings of the Revolver plus outstanding letters of credit are greater than $12.5 million as of the end of the quarter. The financial covenant is a total leverage ratio calculation, in which total debt less outstanding cash is divided by adjusted earnings before interest, depreciation and amortization. If the financial covenant were applicable, it would require a leverage ratio below 6.0 as of March 31, 2015. As the sum of outstanding borrowings under the Revolver and outstanding letters of credit were less than $12.5 million at March 31, 2015, the financial covenant was not applicable for the quarter. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 14. Derivative Instruments |
The Company uses derivative instruments to manage selected commodity price and interest rate exposures. The Company does not use derivative instruments for speculative trading purposes, and typically does not hedge beyond two years. Cash flows from derivative instruments are included in net cash provided by operating activities in the consolidated statements of cash flows. | |
Commodity Derivative Instruments | |
As of March 31, 2015, the Company had 1,125 thousand millions of British Thermal Units (“mmBTUs”) in aggregate notional amount outstanding natural gas swap contracts to manage natural gas price exposures. All of these contracts mature by October 31, 2015. The Company elected to designate these derivative instruments as cash flow hedges in accordance with FASB Accounting Standards Codification (“ASC”) 815-20, Derivatives—Hedging . For derivative contracts designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is recorded to accumulated other comprehensive income, and is reclassified to earnings when the underlying forecasted transaction affects earnings. The ineffective portion of changes in the fair value of the derivative is recorded in cost of goods sold. The net unrealized loss that remained in accumulated other comprehensive income (loss), as of March 31, 2015 was $0.8 million, which is net of a tax amount of $0.5 million. No ineffectiveness was recorded on these contracts during the fiscal year 2014 and the first quarter of 2015. Gains and losses on these contracts that are designated as cash flow hedges are reclassified into earnings when the underlying forecasted transactions affect earnings. The Company reassesses the probability of the underlying forecasted transactions occurring on a quarterly basis. | |
On a pre-tax basis, for the quarter ended March 31, 2015, approximately $0.1 million of gains were recognized in other comprehensive income for the commodity contracts. For the same period, the amount of gain reclassified from accumulated other comprehensive income into income was nominal. As of March 31, 2015, $0.8 million was recorded in other current liabilities. | |
Interest Rate Derivative Instrument | |
At March 31, 2015, the Company had an interest rate cap on three month U.S. Dollar LIBOR of 2% for a notional amount of $204.4 million, representing 59.8% of the principal amount outstanding under the First Lien Credit Agreement as of March 31, 2015. The notional amount of the interest rate cap declines by $0.5 million each quarter through December 31, 2015. The objective of the hedge is to protect the cash flows from adverse extreme market interest rate changes for a portion of the First Lien Credit Agreement through March 31, 2016. Changes in the fair value of the interest rate cap are expected to be perfectly effective in offsetting the changes in cash flow of interest payments attributable to fluctuations for three month U.S. Dollar LIBOR interest rates above 2%. The hedge is being accounted for as a cash flow hedge. | |
Changes in the time value of the interest rate cap are reflected directly in earnings through “other income / expense” in non-operating income. CBP recorded a $0.03 million loss for the three months ended March 31, 2015. The fair value of the time value of the interest rate cap was $0 as of March 31, 2015. | |
Counterparty Risk | |
The Company is exposed to credit losses in the event of nonperformance by the counterparties to the Company’s derivative instruments. As of March 31, 2015, the Company’s derivatives were in a $0.8 million net liability position. All of the Company’s counterparties have investment grade credit ratings; accordingly, the Company anticipates that the counterparties will be able to fully satisfy their obligations under the contracts. The Company’s agreements outline the conditions upon which it or the counterparties are required to post collateral. As of March 31, 2015, the Company had no collateral posted with its counterparties related to the derivatives. |
Segment_Reporting
Segment Reporting | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Reporting | 15. Segment Reporting | ||||||||
Segment information is presented in accordance with ASC 280, Segment Reporting , which establishes standards for reporting information about operating segments. It also establishes standards for related disclosures about products and geographic areas. The Company’s primary reportable segment is wallboard which represented approximately 96% and 95% of the Company’s revenues for the first quarter of 2015 and 2014, respectively. This segment produces wallboard for the commercial and residential construction sectors. The Company also operates other business activities, primarily finishing products, which complement the Company’s full range of wallboard products. | |||||||||
Revenues from the major products sold to external customers include gypsum wallboard and finishing products. | |||||||||
The Company’s two geographic areas consist of the United States and Canada for which it reports net sales, fixed assets and total assets. | |||||||||
The Company evaluates operating performance based on profit or loss from operations before certain adjustments as shown below. Revenues are attributed to geographic areas based on the location of the assets producing the revenues. The Company did not provide asset information by segment as the Company’s Chief Operating Decision Maker does not use such information for purposes of allocating resources and assessing segment performance. | |||||||||
Reportable segment information consists of the following: | |||||||||
(in thousands) | Three Months | Three Months | |||||||
Ended | Ended | ||||||||
March 31, 2015 | March 31, 2014 | ||||||||
Net Sales: | |||||||||
Wallboard | 88,743 | 82,918 | |||||||
Other | 3,433 | 4,055 | |||||||
Total net sales | 92,176 | 86,973 | |||||||
Operating income (loss): | |||||||||
Wallboard | 7,778 | 6,356 | |||||||
Other | 124 | (75 | ) | ||||||
Total operating income (loss) | 7,902 | 6,281 | |||||||
Adjustments: | |||||||||
Interest Expense | (4,221 | ) | (14,176 | ) | |||||
Gain (loss) from Equity Investment | 59 | — | |||||||
Other non-operating expenses | (448 | ) | (5,186 | ) | |||||
Income (loss) before income tax benefit | 3,292 | (13,081 | ) | ||||||
Depreciation and Amortization | |||||||||
Wallboard | 12,835 | 13,583 | |||||||
Other | 294 | 300 | |||||||
Total depreciation and amortization | 13,129 | 13,883 | |||||||
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Share-Based Compensation | 16. Share-Based Compensation | ||||||||||||||||
In conjunction with the Initial Public Offering, the Company granted certain employees and independent members of the Board of Directors an aggregate of 142,000 stock options and 75,000 shares of restricted stock that vest over four years. The fair value of stock options was determined using the Black Scholes option pricing model with the following assumptions: (a) a risk free interest rate assumption of 2.15%, based on the U.S. Treasury yield curve in effect at the time of the grant; (b) a dividend yield of 0% as the Company currently has no plans to pay a dividend; (c) a volatility assumption of 50.34%, based on historical volatilities of comparable publicly traded companies, and (d) an expected life of 6.25 years based on the assumption that the options will be exercised evenly from time of vesting to the expiration date. | |||||||||||||||||
On March 2, 2015, the Company granted certain employees and independent members of the Board of Directors 62,070 Restricted Stock Units (“RSUs”) and 40,050 RSUs that are subject to certain performance conditions (“PRSUs”). Of the 62,070 RSUs, 7,580 fully vest after one year, and 54,490 vest ratably over four years. The PRSUs vest on December 31, 2017, with the exact number of PRSUs vested subject to the achievement of certain performance conditions through December 31, 2016. The number of PRSUs earned will vary from 0% to 200% of the number of PRSUs awarded, depending on our performance relative to a cumulative two year EBITDA target for fiscal years 2015 and 2016. The fair value of each RSU and PRSU is equal to the market price of our common stock at the date of the grant. | |||||||||||||||||
The following table summarizes RSA, RSU and PRSU activity for the three months ending March 31, 2015: | |||||||||||||||||
Number of RSAs | Number of RSUs | Number of PRSUs | Weighted Average | ||||||||||||||
Grant Date Value | |||||||||||||||||
Non-Vested, December 31, 2014 | 55,000 | — | — | $ | 14 | ||||||||||||
Granted | — | 62,070 | 40,050 | $ | 21.07 | ||||||||||||
Forfeited | (1,500 | ) | — | — | $ | 14 | |||||||||||
Vested | (13,750 | ) | — | — | $ | 14 | |||||||||||
Non-Vested, March 31, 2015 | 39,750 | 62,070 | 40,050 | $ | 19.09 | ||||||||||||
The following table summarizes stock option activity for the three months ending March 31, 2015: | |||||||||||||||||
Number of | Weighted | Aggregate | Weighted | ||||||||||||||
Shares | Average | Intrinsic Value | Average | ||||||||||||||
Exercise | Remaining | ||||||||||||||||
Price | Contractual | ||||||||||||||||
Term (in Years) | |||||||||||||||||
Oustanding, January 1, 2015 | 142,000 | $ | 14 | ||||||||||||||
Granted | — | — | |||||||||||||||
Forefeited | (1,444 | ) | $ | 14 | |||||||||||||
Exercised | — | — | |||||||||||||||
Outstanding, March 31, 2015 | 140,556 | $ | 14 | $ | 1,207,376 | 8.86 | |||||||||||
Exercisable, March 31, 2015 | 80,500 | $ | 14 | $ | 691,495 | 8.86 | |||||||||||
Vested and Expected to Vest, March 31, 2015 | 140,556 | $ | 14 | $ | 1,207,376 | 8.86 | |||||||||||
Unearned compensation related to stock options as of March 31, 2015 of $0.4 million will be recognized over a weighted average remaining period of approximately three years. Compensation expense of $0.1 million was recorded for share-based awards for the three months ended March 31, 2015 and 2014. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
Effective February 18, 2015, subject to approval by the Company’s stockholders at the Company’s upcoming 2015 Annual Stockholder Meeting to be held on May 20, 2015, the Company adopted an Employee Stock Purchase Plan (“ESPP”), that will enable employees to purchase the Company’s shares at a discount. The ESPP authorizes the issuance of up to 600,000 shares of the Company’s common stock, but actual shared issued will depend on plan participation. Shares issued under the ESPP will reduce, on a share-for-share basis, the number of shares of the Company’s common stock already available for issuance pursuant to the Company’s 2014 Stock Incentive Plan. Employees contribute to the ESPP through payroll deductions over a twelve month offering period and are limited to the lower of 10% of the employee’s salary or $10,000 per employee. The first offering period will commence on May 1, 2015. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings (Loss) Per Share | 17. Earnings (Loss) Per Share | ||||||||
Basic earnings (loss) per share is based on the weighted average number of shares of common stock outstanding assuming the 32,304 for one stock split occurred as of January 1, 2014 and taking into account the issuance of 11,765,000 new shares on February 10, 2014 in connection with the Initial Public Offering. Diluted earnings and loss per share is based on the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding restricted stock, restricted stock units and stock options. | |||||||||
Earnings (Loss) Per Share | |||||||||
(in thousands, except per share data) | Three Months | Three Months | |||||||
Ended | Ended | ||||||||
March 31, 2015 | March 31, 2014 | ||||||||
Net income (loss)(in thousands) | $ | 2,020 | $ | (8,623 | ) | ||||
Weighted average shares outstanding - basic | 44,077 | 39,494 | |||||||
Dilutive effect of stock options | 16 | — | |||||||
Weighted average shares outstanding - diluted | 44,093 | 39,494 | |||||||
Net income per common share: | |||||||||
Basic | $ | 0.05 | $ | (0.22 | ) | ||||
Diluted | $ | 0.05 | $ | (0.22 | ) |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Basis of Presentation | Basis of Presentation |
The accompanying consolidated financial statements for CBP have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions have been eliminated. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which provides accounting guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. ASU 2014-09 will be effective for the Company in the first quarter of 2017 and requires retroactive application on either a full or modified basis. Early application is not permitted. The Company is currently evaluating ASU 2014-09 to determine its impact on its consolidated financial statements and disclosures. In April 2015, the FASB proposed to defer implementation of this ASU by one year. Under this proposal, the ASU will be effective for the Company in the first quarter of 2018. | |
In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern : Presentation of Financial Statements— Going Concern (Subtopic 205-40). This ASU defines when and how companies are required to disclose going concern uncertainties, which must be evaluated each interim and annual period. Specifically, it requires management to determine whether substantial doubt exists regarding the entity’s going concern presumption. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). If substantial doubt exists, certain disclosures are required; the extent of those disclosures depends on an evaluation of management’s plans (if any) to mitigate the going concern uncertainty. The provisions of ASU 2014-15 will be effective for annual periods ending after December 15, 2016, and to annual and interim periods thereafter. Early adoption is permitted. The ASU should be applied on a prospective basis. The Company believes the adoption of this ASU will not have a material impact on the Company’s disclosures. | |
In April 2015, the FASB issued ASU 2015-03, which changes the presentation of debt issuance costs in financial statements. Under the ASU, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. ASU 2015-03 will be effective for the Company in the first quarter of 2016. Early adoption is permitted. Upon adoption, the guidance must be applied retroactively to all periods presented in the financial statements. The adoption of this guidance will result in a reclassification of debt issuance costs on the Company’s balance sheet, but will not have a material impact on our results of operations. | |
Interim Period [Member] | |
Basis of Presentation | Basis of Presentation for Interim Periods |
Certain information and footnote disclosures normally included for the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted for the interim periods presented. Management believes that the unaudited interim financial statements include all adjustments (which are normal and recurring in nature) necessary to present fairly the financial position of the Company and results of operations and cash flows for the periods presented. | |
The results of operations for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. Seasonal changes and other conditions can affect the sales volumes of the Company’s products. Therefore, the financial results for any interim period do not necessarily indicate the expected results for the year. | |
The financial statements should be read in conjunction with CBP’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K for the fiscal year then-ended (the “2014 10-K”). The Company has continued to follow the accounting policies set forth in those financial statements. |
Receivables_Tables
Receivables (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Receivables [Abstract] | |||||||||
Components of Receivables | Receivables consist of the following: | ||||||||
(in thousands) | As of | As of | |||||||
March 31, 2015 | December 31, 2014 | ||||||||
Trade receivables | $ | 39,979 | $ | 42,460 | |||||
Total allowances | (1,926 | ) | (2,308 | ) | |||||
Total receivables, net | $ | 38,053 | $ | 40,152 | |||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Components of Inventories | Inventories consist of the following: | ||||||||
(in thousands) | As of | As of | |||||||
March 31, 2015 | December 31, 2014 | ||||||||
Finished products | $ | 7,899 | $ | 4,875 | |||||
Raw materials | 17,151 | 17,010 | |||||||
Supplies and other | 7,870 | 7,679 | |||||||
Total inventories | $ | 32,920 | $ | 29,564 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Components of Property, Plant and Equipment | Property, plant and equipment consist of the following: | ||||||||
As of | As of | ||||||||
March 31, 2015 | December 31, 2014 | ||||||||
Land | $ | 12,927 | $ | 12,930 | |||||
Buildings | 111,782 | 111,506 | |||||||
Plant machinery | 269,940 | 269,633 | |||||||
Mobile equipment | 3,518 | 3,448 | |||||||
Construction in progress | 2,857 | 3,165 | |||||||
Property, plant and equipment, at cost | 401,024 | 400,682 | |||||||
Accumulated depreciation | (55,906 | ) | (47,030 | ) | |||||
Total property, plant and equipment, net | $ | 345,118 | $ | 353,652 | |||||
Software_and_Other_Intangibles1
Software and Other Intangibles (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Customer Relationships and Other Intangibles | Customer relationships and other intangibles consist of the following: | ||||||||
(in thousands) | As of | As of | |||||||
March 31, 2015 | December 31, 2014 | ||||||||
Customer relationships | $ | 116,663 | $ | 117,243 | |||||
Purchased and internally developed Software | 4,477 | 4,332 | |||||||
Trademarks | 14,833 | 14,905 | |||||||
Customer relationships and other intangibles, at cost | 135,973 | 136,480 | |||||||
Accumulated amortization | (29,757 | ) | (25,671 | ) | |||||
Customer relationships and other intangibles, net | $ | 106,216 | $ | 110,809 | |||||
Accrued_and_Other_Liabilities_
Accrued and Other Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued and Other Liabilities | Accrued and other liabilities consist of the following: | ||||||||
(in thousands) | As of | As of | |||||||
March 31, 2015 | December 31, 2014 | ||||||||
Vacation and other employee-related costs | $ | 2,468 | 7,945 | ||||||
VAT taxes | 811 | 1,220 | |||||||
Income taxes | — | — | |||||||
Long Term Incentive Plan funded by Lone Star | 1,963 | — | |||||||
Other | 2,498 | 2,263 | |||||||
Total accrued and other liabilities | $ | 7,740 | $ | 11,428 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Future Minimum Lease Payments Due under Non-Cancelable Operating Leases | The table below shows the future minimum lease payments due under non-cancelable operating leases and purchase commitments at March 31, 2015: | ||||||||||||||||||||||||||||||||
(in thousands) | Total | Remaining | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | |||||||||||||||||||||||||
2015 | |||||||||||||||||||||||||||||||||
Operating leases (1) | $ | 5,934 | $ | 1,321 | $ | 1,320 | $ | 1,183 | $ | 616 | $ | 1,494 | $ | — | $ | — | |||||||||||||||||
Purchase commitments | 163,165 | 23,406 | 29,414 | 29,296 | 19,410 | 16,529 | 14,145 | 30,965 | |||||||||||||||||||||||||
Total commitments | $ | 169,099 | $ | 24,727 | $ | 30,734 | $ | 30,479 | $ | 20,026 | $ | 18,023 | $ | 14,145 | $ | 30,965 | |||||||||||||||||
-1 | Future minimum lease payments over the non-cancelable lease terms of the operating leases. |
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Summary of Debt | Debt consists of the following: | ||||||||
(in thousands) | As of | As of | |||||||
March 31, 2015 | December 31, 2014 | ||||||||
First Lien Credit Agreement maturing on August 28, 2020; interest rate of LIBOR (with a 1% floor) plus 3.00% at March 31, 2015 and 3.75% at March 31, 2014 | $ | 341,988 | $ | 351,988 | |||||
Less: Original issue discount (net of amortization) | (2,752 | ) | (2,863 | ) | |||||
Total debt | 339,236 | 349,125 | |||||||
Less: Current portion of long-term debt | — | — | |||||||
Long-term debt | $ | 339,236 | $ | 349,125 | |||||
Summary of Future Minimum Principal Payments Due under First Lien Credit Agreement | The table below shows the future minimum principal payments due under the First Lien Credit Agreement. | ||||||||
(in thousands) | Amount Due | ||||||||
2015 | — | ||||||||
2016 | — | ||||||||
2017 | — | ||||||||
2018 | — | ||||||||
2019 | — | ||||||||
Thereafter | $ | 341,988 |
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Summary of Reportable Segment Information | Reportable segment information consists of the following: | ||||||||
(in thousands) | Three Months | Three Months | |||||||
Ended | Ended | ||||||||
March 31, 2015 | March 31, 2014 | ||||||||
Net Sales: | |||||||||
Wallboard | 88,743 | 82,918 | |||||||
Other | 3,433 | 4,055 | |||||||
Total net sales | 92,176 | 86,973 | |||||||
Operating income (loss): | |||||||||
Wallboard | 7,778 | 6,356 | |||||||
Other | 124 | (75 | ) | ||||||
Total operating income (loss) | 7,902 | 6,281 | |||||||
Adjustments: | |||||||||
Interest Expense | (4,221 | ) | (14,176 | ) | |||||
Gain (loss) from Equity Investment | 59 | — | |||||||
Other non-operating expenses | (448 | ) | (5,186 | ) | |||||
Income (loss) before income tax benefit | 3,292 | (13,081 | ) | ||||||
Depreciation and Amortization | |||||||||
Wallboard | 12,835 | 13,583 | |||||||
Other | 294 | 300 | |||||||
Total depreciation and amortization | 13,129 | 13,883 | |||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Summary of Restricted Shares activity | The following table summarizes RSA, RSU and PRSU activity for the three months ending March 31, 2015: | ||||||||||||||||
Number of RSAs | Number of RSUs | Number of PRSUs | Weighted Average | ||||||||||||||
Grant Date Value | |||||||||||||||||
Non-Vested, December 31, 2014 | 55,000 | — | — | $ | 14 | ||||||||||||
Granted | — | 62,070 | 40,050 | $ | 21.07 | ||||||||||||
Forfeited | (1,500 | ) | — | — | $ | 14 | |||||||||||
Vested | (13,750 | ) | — | — | $ | 14 | |||||||||||
Non-Vested, March 31, 2015 | 39,750 | 62,070 | 40,050 | $ | 19.09 | ||||||||||||
Summary of Stock Option Activity | The following table summarizes stock option activity for the three months ending March 31, 2015: | ||||||||||||||||
Number of | Weighted | Aggregate | Weighted | ||||||||||||||
Shares | Average | Intrinsic Value | Average | ||||||||||||||
Exercise | Remaining | ||||||||||||||||
Price | Contractual | ||||||||||||||||
Term (in Years) | |||||||||||||||||
Oustanding, January 1, 2015 | 142,000 | $ | 14 | ||||||||||||||
Granted | — | — | |||||||||||||||
Forefeited | (1,444 | ) | $ | 14 | |||||||||||||
Exercised | — | — | |||||||||||||||
Outstanding, March 31, 2015 | 140,556 | $ | 14 | $ | 1,207,376 | 8.86 | |||||||||||
Exercisable, March 31, 2015 | 80,500 | $ | 14 | $ | 691,495 | 8.86 | |||||||||||
Vested and Expected to Vest, March 31, 2015 | 140,556 | $ | 14 | $ | 1,207,376 | 8.86 |
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings (Loss) Per Share | Earnings (Loss) Per Share | ||||||||
(in thousands, except per share data) | Three Months | Three Months | |||||||
Ended | Ended | ||||||||
March 31, 2015 | March 31, 2014 | ||||||||
Net income (loss)(in thousands) | $ | 2,020 | $ | (8,623 | ) | ||||
Weighted average shares outstanding - basic | 44,077 | 39,494 | |||||||
Dilutive effect of stock options | 16 | — | |||||||
Weighted average shares outstanding - diluted | 44,093 | 39,494 | |||||||
Net income per common share: | |||||||||
Basic | $ | 0.05 | $ | (0.22 | ) | ||||
Diluted | $ | 0.05 | $ | (0.22 | ) |
Background_and_Nature_of_Opera1
Background and Nature of Operations - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Feb. 10, 2014 | Feb. 03, 2014 | Jun. 24, 2013 | Mar. 31, 2015 | Mar. 18, 2015 |
Description Of Business And Significant Accounting Policies [Line Items] | |||||
Net proceeds after underwriting discounts and commissions | $154 | ||||
One-time payment to Lone Star for termination of asset advisory agreement | 2 | ||||
Stock split ratio | 32,304 | ||||
Lafarge N.A. [Member] | |||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||
Agreement date of acquisition | 24-Jun-13 | ||||
Total purchase price | 703 | ||||
Closing date of acquisition | 30-Aug-13 | ||||
Wallboard Plant [Member] | |||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||
Number of operating facilities | 3 | ||||
Compound Plant [Member] | |||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||
Number of operating facilities | 1 | ||||
Initial Public Offering [Member] | |||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||
Shares issued at public offering | 11,765,000 | ||||
Per share value | $14 | ||||
Secondary Public Offering [Member] | LSF8 Gypsum Holdings, L.P. [Member] | |||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||
Shares issued at public offering | 5,000,000 | ||||
Secondary Public Offering [Member] | LSF8 Gypsum Holdings, L.P. [Member] | Long Term Incentive Plan [Member] | |||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||
Compensation payments | 4.2 | ||||
Second Lien Credit Agreement [Member] | |||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||
Net proceeds from Initial Public Offering | 152 | ||||
Cash on hand | 6.1 | ||||
Repayment amount | 155 | ||||
Prepayment premium | $3.10 |
Receivables_Components_of_Rece
Receivables - Components of Receivables (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Trade receivables | $39,979 | $42,460 |
Total allowances | -1,926 | -2,308 |
Total receivables, net | $38,053 | $40,152 |
Inventories_Components_of_Inve
Inventories - Components of Inventories (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished products | $7,899 | $4,875 |
Raw materials | 17,151 | 17,010 |
Supplies and other | 7,870 | 7,679 |
Total inventories | $32,920 | $29,564 |
Property_Plant_and_Equipment_C
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $401,024 | $400,682 |
Accumulated depreciation | -55,906 | -47,030 |
Total property, plant and equipment, net | 345,118 | 353,652 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 12,927 | 12,930 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 111,782 | 111,506 |
Plant Machinery [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 269,940 | 269,633 |
Mobile Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 3,518 | 3,448 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $2,857 | $3,165 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $8.90 | $8.80 |
Software_and_Other_Intangibles2
Software and Other Intangibles - Customer Relationships and Other Intangibles (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Customer relationships and other intangibles, at cost | $135,973 | $136,480 |
Accumulated amortization | -29,757 | -25,671 |
Customer relationships and other intangibles, net | 106,216 | 110,809 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Customer relationships and other intangibles, at cost | 116,663 | 117,243 |
New ERP Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Customer relationships and other intangibles, at cost | 4,477 | 4,332 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Customer relationships and other intangibles, at cost | $14,833 | $14,905 |
Software_and_Other_Intangibles3
Software and Other Intangibles - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $4,200,000 | $5,100,000 |
New ERP Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $400,000 | $0 |
Amortization on estimated useful life | 3 years | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortization period | 15 years | |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortization period | 15 years |
Accrued_and_Other_Liabilities_1
Accrued and Other Liabilities - Accrued and Other Liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Vacation and other employee-related costs | $2,468 | $7,945 |
VAT taxes | 811 | 1,220 |
Income taxes | 0 | 0 |
Long Term Incentive Plan funded by Lone Star | 1,963 | |
Other | 2,498 | 2,263 |
Total accrued and other liabilities | $7,740 | $11,428 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Valuation allowance | $400,000 | $400,000 |
Estimated effective tax rate | 38.00% | |
Discrete tax items recognize | $0 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | |||
Total expenses under operating leases | $1.10 | $1.40 | |
Outstanding amount of letters of credit | $3.60 | $4.80 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments Due under Non-Cancelable Operating Leases (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating leases, Total | $5,934 |
Operating leases, Remaining 2015 | 1,321 |
Operating leases, 2016 | 1,320 |
Operating leases, 2017 | 1,183 |
Operating leases, 2018 | 616 |
Operating leases, 2019 | 1,494 |
Operating leases, 2020 | 0 |
Operating leases, After 2020 | 0 |
Purchase commitments, Total | 163,165 |
Purchase commitments, Remaining 2015 | 23,406 |
Purchase commitments, 2016 | 29,414 |
Purchase commitments, 2017 | 29,296 |
Purchase commitments, 2018 | 19,410 |
Purchase commitments, 2019 | 16,529 |
Purchase commitments, 2020 | 14,145 |
Purchase commitments, After 2020 | 30,965 |
Total commitments | 169,099 |
Total commitments, Remaining 2015 | 24,727 |
Total commitments, 2016 | 30,734 |
Total commitments, 2017 | 30,479 |
Total commitments, 2018 | 20,026 |
Total commitments, 2019 | 18,023 |
Total commitments, 2020 | 14,145 |
Total commitments, After 2020 | $30,965 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Nov. 30, 2014 | Mar. 31, 2014 | Aug. 30, 2013 | |
LSF8 Gypsum Holdings, L.P. [Member] | Long Term Incentive Plan [Member] | Secondary Public Offering [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incentive payments | $4,200,000 | |||
Lafarge N.A. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payment for services per month | 129,700 | |||
Termination of agreement period | 31-Dec-14 | |||
Lone Star [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of actual cost paid for the services | 110.00% | |||
Termination fee included non-operating expense | $2,000,000 |
Investment_in_Seven_Hills_Addi
Investment in Seven Hills - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ||
Cost of paperboard | $11.10 | $12.90 |
Purchase commitments | $39.60 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value adjustments for assets and liabilities | $0 | |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Cap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of interest rate cap | 0 | 30,000 |
Fair Value, Inputs, Level 2 [Member] | Natural Gas Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of derivatives hedges, net of tax | -800,000 | -900,000 |
Fair value of derivatives hedges, tax | ($500,000) | ($500,000) |
Debt_Summary_of_Debt_Detail
Debt - Summary of Debt (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Less: Original issue discount (net of amortization) | ($2,752) | ($2,863) |
Total debt | 339,236 | 349,125 |
Less: Current portion of long-term debt | 0 | 0 |
Long-term debt | 339,236 | 349,125 |
Total debt | 339,236 | 349,125 |
First Lien Credit Agreement [Member] | Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt before unamortized discount | $341,988 | $351,988 |
Debt_Summary_of_Debt_Parenthet
Debt - Summary of Debt (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Floor rate | 1.00% | |
First Lien Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Debt, maturity date | 28-Aug-20 | |
Floor rate | 1.00% | |
Term Loan Facility [Member] | First Lien Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Debt, maturity date | 28-Aug-20 | 28-Aug-20 |
Floor rate | 1.00% | 1.00% |
Term Loan Facility [Member] | First Lien Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Debt, variable interest rate | 3.00% | 3.75% |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||
31-May-14 | Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Feb. 10, 2014 | Aug. 30, 2013 | |
Debt Instrument [Line Items] | |||||||
Original issue discount write-off | $547,000 | $7,526,000 | |||||
Floor rate | 1.00% | ||||||
Reduction in margin, percentage | 0.50% | ||||||
Further reduction in margin, percentage | 0.25% | ||||||
Remaining outstanding | 46,400,000 | ||||||
Cash interest paid | 3,500,000 | 6,600,000 | |||||
Outstanding amount of letters of credit | 3,600,000 | 4,800,000 | |||||
Leverage ratio | 6 | ||||||
Moody's, B2 Rating [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt, variable interest rate | 3.00% | ||||||
Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding amount of letters of credit | 12,500,000 | ||||||
First Lien Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Revolver amount | 50,000,000 | ||||||
Floor rate | 1.00% | ||||||
Pre-paid principal payments | 10,000,000 | ||||||
Final payment | 342,000,000 | ||||||
Credit agreement due date | 28-Aug-20 | ||||||
Effective interest rate | 4.70% | ||||||
Outstanding revolver amount | 0 | ||||||
Basis points | 2.25% | ||||||
Facility fee, basis points | 0.50% | ||||||
First Lien Credit Agreement [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt, variable interest rate | 3.75% | ||||||
First Lien Credit Agreement [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt, variable interest rate | 3.25% | ||||||
First Lien Credit Agreement [Member] | Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility borrowing capacity | 415,000,000 | ||||||
Floor rate | 1.00% | 1.00% | |||||
Credit agreement due date | 28-Aug-20 | 28-Aug-20 | |||||
First Lien Credit Agreement [Member] | U.S. Dollar Revolving Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility borrowing capacity | 40,000,000 | ||||||
First Lien Credit Agreement [Member] | Canadian Dollar and/or U.S. Dollar Revolving Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility borrowing capacity | 10,000,000 | ||||||
Second Lien Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Net proceeds from the Initial Public Offering | 152,000,000 | ||||||
Cash on hand | 6,100,000 | ||||||
Prepayment premium | 3,100,000 | ||||||
Repayment amount | 155,000,000 | ||||||
Original issue discount write-off | 6,900,000 | ||||||
Second Lien Credit Agreement [Member] | Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility borrowing capacity | $155,000,000 |
Debt_Summary_of_Future_Minimum
Debt - Summary of Future Minimum Principal Payments Due under First Lien Credit Agreement (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Maturities of Long-term Debt [Abstract] | |
2015 | $0 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
Thereafter | $341,988 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Derivative [Line Items] | |
Net unrealized loss recognized in accumulated other comprehensive income (loss) | $93,000 |
Derivatives, net liability position | 800,000 |
Collateral posted with counterparties related to derivatives | 0 |
Commodity Contract [Member] | |
Derivative [Line Items] | |
Aggregate notional amount of outstanding natural gas swap contracts | 1,125,000 |
Derivative instrument contracts maturity date | 31-Oct-15 |
Net unrealized loss recognized in accumulated other comprehensive income (loss) | 800,000 |
Net unrealized loss recognized in accumulated other comprehensive income (loss), tax amount | 500,000 |
Gains recognized in other comprehensive income, before tax | 100,000 |
Other current liabilities | 800,000 |
Interest Rate Cap [Member] | |
Derivative [Line Items] | |
Notional amount | 204,400,000 |
Reduction in notional amount of interest rate cap | 500,000 |
Percentage of notional amount outstanding | 59.80% |
Loss due to changes in time value of option reflected in earnings | 30,000 |
Fair value of option of interest rate cap | $0 |
Interest Rate Cap [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Derivative [Line Items] | |
Interest rate cap | 2.00% |
Maximum [Member] | |
Derivative [Line Items] | |
Derivative instruments maximum hedging period | 2 years |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting Information [Line Items] | ||
Number of geographical areas | 2 | |
Wallboard [Member] | Sales Revenue, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenues | 96.00% | 95.00% |
Segment_Reporting_Summary_of_R
Segment Reporting - Summary of Reportable Segment Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Sales: | ||
Total net sales | $92,176 | $86,973 |
Operating income (loss): | ||
Operating income (loss) | 7,902 | 6,281 |
Adjustments: | ||
Interest Expense | -4,221 | -14,176 |
Gain (loss) from Equity Investment | 59 | |
Other non-operating expenses | -448 | -5,186 |
Income (loss) before income tax | 3,292 | -13,081 |
Depreciation and Amortization | ||
Total depreciation and amortization | 13,129 | 13,883 |
Wallboard [Member] | ||
Net Sales: | ||
Total net sales | 88,743 | 82,918 |
Operating income (loss): | ||
Operating income (loss) | 7,778 | 6,356 |
Depreciation and Amortization | ||
Total depreciation and amortization | 12,835 | 13,583 |
Other [Member] | ||
Net Sales: | ||
Total net sales | 3,433 | 4,055 |
Operating income (loss): | ||
Operating income (loss) | 124 | -75 |
Depreciation and Amortization | ||
Total depreciation and amortization | $294 | $300 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | |
Feb. 18, 2015 | Feb. 10, 2014 | Mar. 31, 2015 | Mar. 02, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted | 142,000 | 0 | ||
Vesting period | 4 years | |||
Risk free interest rate | 2.15% | |||
Dividend yield | 0.00% | |||
Volatility assumption | 50.34% | |||
Expected life | 6 years 3 months | |||
Unearned compensation expense related to stock options yet to be recognized | $400,000 | |||
Unearned compensation expense, weighted average remaining period | 3 years | |||
Compensation expense | 100,000 | |||
ESPP offering period | 12 months | |||
ESPP offering period, start date | 1-May-15 | |||
Employee contribution to ESPP through payroll deductions, maximum percentage | 10.00% | |||
Employee contribution to ESPP through payroll deductions, maximum amount per employee | 10,000 | |||
Vest After One Year [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares | 7,580 | |||
Vest Over Four Year Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares | 54,490 | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Sale of shares under ESPP | $600,000 | |||
Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares | 75,000 | |||
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares | 62,070 | 62,070 | ||
Performance Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares | 40,050 | 40,050 | ||
Performance Restricted Stock Units [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of PRSU earned | 0.00% | |||
Performance Restricted Stock Units [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of PRSU earned | 200.00% |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Restricted Shares Activity (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended |
Feb. 10, 2014 | Mar. 31, 2015 | Mar. 02, 2015 | |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Non-vested, Beginning balance | 55,000 | ||
Number of Shares, Non-vested, Granted | 75,000 | ||
Number of Shares, Non-vested, Forfeited | -1,500 | ||
Number of Shares, Non-vested, Vested | -13,750 | ||
Number of Shares, Non-vested, Ending balance | 39,750 | ||
Weighted Average Grant Date Value, Beginning balance | $14 | ||
Weighted Average Grant Date Value, Granted | $21.07 | ||
Weighted Average Grant Date Value, Forfeited | $14 | ||
Weighted Average Grant Date Value, Vested | $14 | ||
Weighted Average Grant Date Value, Ending balance | $19.09 | ||
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Non-vested, Granted | 62,070 | 62,070 | |
Number of Shares, Non-vested, Ending balance | 62,070 | ||
Performance Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Non-vested, Granted | 40,050 | 40,050 | |
Number of Shares, Non-vested, Ending balance | 40,050 |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 0 Months Ended | 3 Months Ended |
Feb. 10, 2014 | Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Number of Shares, Outstanding, Beginning balance | 142,000 | |
Number of Shares, Granted | 142,000 | 0 |
Number of Shares, Forfeited | -1,444 | |
Number of Shares, Exercised | 0 | |
Number of Shares, Outstanding, Ending balance | 140,556 | |
Number of Shares, Exercisable | 80,500 | |
Number of Shares, Vested and Expected to Vest | 140,556 | |
Weighted Average Exercise Price, Outstanding, Beginning Balance | $14 | |
Weighted Average Exercise Price, Granted | $0 | |
Weighted Average Exercise Price, Forfeited | $14 | |
Weighted Average Exercise Price, Exercised | $0 | |
Weighted Average Exercise Price, Outstanding, Ending Balance | $14 | |
Weighted Average Exercise Price, Exercisable | $14 | |
Weighted Average Exercise Price, Vested and Expected to Vest | $14 | |
Aggregate Intrinsic Value, Outstanding | $1,207,376 | |
Aggregate Intrinsic Value, Exercisable | 691,495 | |
Aggregate Intrinsic Value, Vested and Expected to Vest | $1,207,376 | |
Weighted Average Remaining Contractual Term (in Years), Outstanding | 8 years 10 months 10 days | |
Weighted Average Remaining Contractual Term (in Years), Exercisable | 8 years 10 months 10 days | |
Weighted Average Remaining Contractual Term (in Years), Vested and Expected to Vest | 8 years 10 months 10 days |
Earnings_Loss_Per_Share_Additi
Earnings (Loss) Per Share - Additional Information (Detail) | 0 Months Ended | ||
Feb. 03, 2014 | Jan. 01, 2014 | Feb. 10, 2014 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Stock split ratio | 32,304 | ||
Stock Split [Member] | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Stock split ratio | 32,304 | ||
Initial Public Offering [Member] | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Issuance of new shares | 11,765,000 |
Earnings_Loss_Per_Share_Schedu
Earnings (Loss) Per Share - Schedule of Earnings (Loss) Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income (loss) | $2,020 | ($8,623) |
Weighted average shares outstanding - basic | 44,076,513 | 39,493,722 |
Dilutive effect of stock options | 16,000 | |
Weighted average shares outstanding - diluted | 44,092,900 | 39,493,722 |
Net income per common share: | ||
Basic | $0.05 | ($0.22) |
Diluted | $0.05 | ($0.22) |