Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CBPX | |
Entity Registrant Name | CONTINENTAL BUILDING PRODUCTS, INC. | |
Entity Central Index Key | 0001592480 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 34,720,561 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 122,032 | $ 116,802 |
Cost of goods sold | 90,786 | 86,616 |
Gross profit | 31,246 | 30,186 |
Selling and administrative | 9,653 | 9,424 |
Gain from insurance recoveries, net | 1,513 | 0 |
Operating income | 23,106 | 20,762 |
Other expense, net | (36) | (140) |
Interest expense, net | (2,492) | (2,720) |
Income before losses from equity method investment and provision for income taxes | 20,578 | 17,902 |
Losses from equity method investment | (45) | (364) |
Income before provision for income taxes | 20,533 | 17,538 |
Provision for income taxes | (4,607) | (3,892) |
Net income | $ 15,926 | $ 13,646 |
Net income per share: | ||
Basic (usd per share) | $ 0.45 | $ 0.36 |
Diluted (usd per share) | $ 0.45 | $ 0.36 |
Weighted average shares outstanding: | ||
Basic (shares) | 35,248,280 | 37,432,782 |
Diluted (shares) | 35,350,259 | 37,604,953 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 15,926 | $ 13,646 |
Foreign currency translation adjustment | 324 | (481) |
Derivative instrument adjustments, net of taxes | (378) | 1,045 |
Other comprehensive (loss)/income | (54) | 564 |
Comprehensive income | $ 15,872 | $ 14,210 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 101,081 | $ 102,633 |
Trade receivables, net | 43,985 | 38,454 |
Inventories, net | 37,513 | 32,225 |
Prepaid and other current assets | 5,264 | 19,805 |
Total current assets | 187,843 | 193,117 |
Property, plant and equipment, net | 285,701 | 288,368 |
Customer relationships and other intangibles, net | 60,971 | 62,680 |
Goodwill | 119,945 | 119,945 |
Equity method investment | 7,832 | 7,975 |
Operating lease - right of use assets | 918 | |
Debt issuance costs | 252 | 296 |
Total Assets | 663,462 | 672,381 |
Liabilities: | ||
Accounts payable | 34,706 | 48,060 |
Accrued and other liabilities | 5,595 | 12,815 |
Debt, current portion | 1,720 | 1,669 |
Operating lease liabilities, current portion | 625 | |
Total current liabilities | 42,646 | 62,544 |
Deferred taxes and other long-term liabilities | 19,651 | 20,204 |
Debt, non-current portion | 261,420 | 261,886 |
Operating lease liabilities, non-current portion | 978 | 0 |
Total Liabilities | 324,695 | 344,634 |
Shareholders' Equity: | ||
Undesignated preferred stock, par value $0.001 per share; 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value per share; 190,000,000 shares authorized; 44,537,285 and 44,472,214 shares issued and 35,275,032 and 35,401,868 shares outstanding as of March 31, 2019 and December 31, 2018, respectively | 44 | 44 |
Additional paid-in capital | 327,668 | 327,515 |
Less: Treasury stock | (214,055) | (209,050) |
Accumulated other comprehensive loss | (3,445) | (3,391) |
Accumulated earnings | 228,555 | 212,629 |
Total Shareholders' Equity | 338,767 | 327,747 |
Total Liabilities and Shareholders' Equity | $ 663,462 | $ 672,381 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Undesignated preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Undesignated preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Undesignated preferred stock, shares issued (in shares) | 0 | 0 |
Undesignated preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 190,000,000 | 190,000,000 |
Common stock, shares issued (in shares) | 44,537,285 | 44,472,214 |
Common stock, shares outstanding (in shares) | 35,275,032 | 35,401,868 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 15,926 | $ 13,646 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 10,520 | 10,581 |
Amortization of debt issuance costs and debt discount | 309 | 334 |
Gain from insurance recoveries | (1,513) | 0 |
Losses from equity method investment | 45 | 364 |
Amortization of deferred gain on terminated swaps | (288) | 0 |
Share-based compensation | 570 | 600 |
Change in assets and liabilities: | ||
Trade receivables | (5,553) | (7,562) |
Inventories | (5,244) | (2,913) |
Prepaid expenses and other current assets | 14,562 | 1,144 |
Accounts payable | (12,107) | (1,353) |
Accrued and other current liabilities | (6,537) | (1,042) |
Other long-term liabilities | (54) | (56) |
Net cash provided by operating activities | 10,636 | 13,743 |
Cash flows from investing activities: | ||
Payments for property, plant and equipment | (6,656) | (5,955) |
Payments for intangible assets | (701) | (482) |
Proceeds from insurance recoveries | 1,589 | 0 |
Capital contributions to equity method investment | (58) | (251) |
Distributions from equity method investment | 156 | 78 |
Net cash used in investing activities | (5,670) | (6,610) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 118 | 11 |
Tax withholdings on share-based compensation | (1,137) | (421) |
Principal payments for debt | (679) | (679) |
Payments to repurchase common stock | (5,005) | (14,550) |
Net cash used in financing activities | (6,703) | (15,639) |
Effect of foreign exchange rates on cash and cash equivalents | 185 | (167) |
Net change in cash and cash equivalents | (1,552) | (8,673) |
Cash, beginning of period | 102,633 | 72,521 |
Cash, end of period | $ 101,081 | $ 63,848 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Earnings |
Beginning Balance at Dec. 31, 2017 | $ 318,026 | $ 44 | $ 325,391 | $ (143,357) | $ (2,649) | $ 138,597 |
Beginning balance (in shares) at Dec. 31, 2017 | 37,532,959 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 13,646 | 13,646 | ||||
Other comprehensive income (loss), net of tax | 564 | 564 | ||||
Purchase of treasury shares | (14,550) | $ 0 | (14,550) | |||
Purchase of treasury shares ( in shares) | (530,600) | |||||
Stock option exercise | 11 | $ 0 | 11 | |||
Stock option exercise, shares | 781 | |||||
Share-based compensation | 213 | $ 0 | 213 | |||
Share-based compensation, shares | 85,838 | |||||
Ending Balance at Mar. 31, 2018 | 317,910 | $ 44 | 325,615 | (157,907) | (2,085) | 152,243 |
Ending balance (in shares) at Mar. 31, 2018 | 37,088,978 | |||||
Beginning Balance at Dec. 31, 2018 | 327,747 | $ 44 | 327,515 | (209,050) | (3,391) | 212,629 |
Beginning balance (in shares) at Dec. 31, 2018 | 35,401,868 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 15,926 | 15,926 | ||||
Other comprehensive income (loss), net of tax | (54) | (54) | ||||
Purchase of treasury shares | (5,005) | $ 0 | (5,005) | |||
Purchase of treasury shares ( in shares) | (191,907) | |||||
Stock option exercise | 118 | $ 0 | 118 | |||
Stock option exercise, shares | 6,500 | |||||
Share-based compensation | 35 | $ 0 | 35 | |||
Share-based compensation, shares | 58,571 | |||||
Ending Balance at Mar. 31, 2019 | $ 338,767 | $ 44 | $ 327,668 | $ (214,055) | $ (3,445) | $ 228,555 |
Ending balance (in shares) at Mar. 31, 2019 | 35,275,032 |
Background and Nature of Operat
Background and Nature of Operations | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Nature of Operations | BACKGROUND AND NATURE OF OPERATIONS Description of Business Continental Building Products, Inc. (the "Company") is a Delaware corporation. The Company manufactures gypsum wallboard 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. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation The accompanying consolidated financial statements for the Company 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. (b) 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 the 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, 2019. 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 Company's audited consolidated financial statements and the notes thereto for the year ended December 31, 2018 included in the Company's Annual Report on Form 10-K for the fiscal year then ended (the "2018 10-K"). The Company has continued to follow the accounting policies set forth in those financial statements. (c) Supplemental Cash Flow Disclosure Table 2.1: Certain Cash Transactions and Other Activity For the Three Months Ended, March 31, 2019 March 31, 2018 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating lease cash outflows $ 152 $ 148 Other activity: Acquisition of property, plant and equipment included in liabilities $ 1,813 $ 3,684 (d) Recent Accounting Pronouncements Accounting Standards Recently Adopted The Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2016-02, "Leases.", as of January 1, 2019 . The Company elected the transition package of practical expedients permitted within ASU 2016-02, which among other things, allowed the Company to carryforward the historical lease classification. In addition, the Company elected the comparative period practical expedient, which allowed the Company to implement the guidance as of the effective date without having to adjust the comparative financial statements. Instead, under this expedient, companies recognize the cumulative effect adjustment in equity. The Company also made an accounting policy election that leases with an initial term of 12 months or less will not be recorded on the balance sheet and will result in the recognition of those lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. The adoption of the standard resulted in recognition of approximately $1.0 million in right of use assets and $1.7 million in lease liabilities for operating leases on the Company's Consolidated Balance Sheet, with no impact to its retained earnings, Consolidated Statement of Operations and Consolidated Statement of Cash Flows. The Company adopted ASU 2017-12, "Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities," as of January 1, 2019. This ASU expands an entity's ability to hedge non-financial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The adoption of the standard did not have a material impact on the Company's Consolidated Financial Statements. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, "Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments." This ASU is intended to introduce a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact that this guidance may have on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurements (Topic 820), Changes to the Disclosure Requirements for Fair Value Measurement." This ASU eliminates certain disclosure requirements for fair value measurements for all entities, requires public entities to disclose certain new information and modifies some disclosure requirements. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact that this guidance may have on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." This ASU requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to defer and recognize as an asset. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact that this guidance may have on its Consolidated Financial Statements. (e) Reclassifications Certain reclassifications of prior year information were made to conform to the 2019 presentation. These reclassifications had no material impact on the Company's Consolidated Financial Statements. |
Trade Receivables, Net
Trade Receivables, Net | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Trade Receivables, Net | TRADE RECEIVABLES, NET Table 3: Details of Trade Receivables, Net March 31, 2019 December 31, 2018 (in thousands) Trade receivables, gross $ 44,695 $ 39,426 Allowance for cash discounts and doubtful accounts (710 ) (972 ) Trade receivables, net $ 43,985 $ 38,454 Trade receivables are recorded net of credit memos issued during the normal course of business. |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | INVENTORIES, NET Table 4: Details of Inventories, Net March 31, 2019 December 31, 2018 (in thousands) Finished products $ 7,760 $ 6,700 Raw materials 22,297 18,388 Supplies and other 7,456 7,137 Inventories, net $ 37,513 $ 32,225 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET Table 5: Details of Property, Plant and Equipment, Net March 31, 2019 December 31, 2018 (in thousands) Land $ 13,186 $ 13,185 Buildings 120,118 118,076 Plant machinery 293,313 292,219 Mobile equipment 15,468 15,163 Construction in progress 25,520 23,566 Property, plant and equipment, at cost 467,605 462,209 Accumulated depreciation (181,904 ) (173,841 ) Property, plant and equipment, net $ 285,701 $ 288,368 Depreciation expense was $8.2 million and $8.1 million for the three months ended March 31, 2019 and 2018 , respectively. |
Customer Relationships and Othe
Customer Relationships and Other Intangibles, Net | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Customer Relationships and Other Intangibles, Net | CUSTOMER RELATIONSHIPS AND OTHER INTANGIBLES, NET Table 6.1: Details of Customer Relationships and Other Intangibles, Net March 31, 2019 December 31, 2018 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Customer relationships $ 116,310 $ (67,702 ) $ 48,608 $ 116,180 $ (65,738 ) $ 50,442 Purchased software 8,736 (5,657 ) 3,079 8,225 (5,507 ) 2,718 Trademarks 14,789 (5,505 ) 9,284 14,772 (5,252 ) 9,520 Total $ 139,835 $ (78,864 ) $ 60,971 $ 139,177 $ (76,497 ) $ 62,680 Amortization expense was $2.3 million and $2.5 million for the three months ended March 31, 2019 and 2018 , respectively. Table 6.2: Details of Future Amortization Expense of Customer Relationships and Other Intangibles As of March 31, 2019 (in thousands) April 1, 2019 through December 31, 2019 $ 6,935 2020 8,662 2021 7,761 2022 6,987 2023 6,104 Thereafter 24,522 Total $ 60,971 |
Investment in Seven Hills
Investment in Seven Hills | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Seven Hills | INVESTMENT IN SEVEN HILLS The Company is a party with an unaffiliated third party to a paperboard liner venture named Seven Hills Paperboard, LLC ("Seven Hills") that, pursuant to a paper supply agreement, 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 is a variable interest entity, but that it does 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 liner purchased from Seven Hills was $13.5 million and $12.2 million for the three months ended March 31, 2019 and 2018 , respectively. As of March 31, 2019 , the Company had certain purchase commitments for paper totaling $35.5 million through 2022 . |
Accrued and Other Liabilities
Accrued and Other Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued and Other Liabilities | ACCRUED AND OTHER LIABILITIES Table 8: Details of Accrued and Other Liabilities March 31, 2019 December 31, 2018 (in thousands) Employee-related costs $ 3,497 $ 10,768 Property taxes 664 82 Other taxes 477 351 Other 957 1,614 Accrued and other liabilities $ 5,595 $ 12,815 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Table 9.1: Details of Debt March 31, 2019 December 31, 2018 (in thousands) Amended and Restated Credit Agreement (1) $ 251,978 $ 252,658 Industrial revenue bonds (2) 16,200 16,200 Less: Original issue discount (net of amortization) (1,223 ) (1,285 ) Less: Debt issuance costs (3,815 ) (4,018 ) Total debt 263,140 263,555 Less: Current portion of long-term debt (1,720 ) (1,669 ) Long-term debt $ 261,420 $ 261,886 (1) As of March 31, 2019 and December 31, 2018, the Amended and Restated Credit Agreement, as amended, had a maturity date of August 18, 2023 and an interest rate of LIBOR (with a 0.75% floor) plus 2.00% . (2) As of March 31, 2019 and December 31, 2018, Industrial revenue bonds had a maturity date of December 1, 2025 and an interest rate of LIBOR plus 1.50% less an approximate 20 percent reduction in the rate related to the tax-free interest income to the bond holders. On August 18, 2016, the Company, Continental Building Products Operating Company, LLC and Continental Building Products Canada Inc. and the lenders party thereto and Credit Suisse, as Administrative Agent, entered into an Amended and Restated Credit Agreement amending and restating the Company's existing first lien credit agreement (the "Amended and Restated Credit Agreement"). The Amended and Restated Credit Agreement provides for a $275 million senior secured first lien term loan facility (the "Term Loan") and a $75.0 million senior secured revolving credit facility (the "Revolver"), which mature on August 18, 2023 and August 18, 2021, respectively. The interest rate under the Amended and Restated Credit Agreement was a spread over LIBOR of 2.75% and floor of 0.75% . On February 21, 2017 , the Company repriced its Term Loan under the Amended and Restated Credit Agreement lowering its interest rate by 25 basis points to LIBOR plus 2.50% . Subsequently, on December 6, 2017 , the Company further repriced its term loan under the Amended and Restated Credit Agreement lowering its interest rate by an additional 25 basis points to LIBOR plus 2.25% and allowing for a further reduction in the interest rate to LIBOR plus 2.00% based on the attainment of a total leverage ratio of 1.1 or better. All other terms and conditions under the Amended and Restated Credit Agreement remained the same. During both the three months ended March 31, 2019 and 2018 , the Company made $0.7 million of scheduled mandatory principal payments. Because the Company attained a total leverage ratio of less than 1.1 to 1 during the fourth quarter of 2018, the interest rate was further reduced pursuant to the terms of the Amended and Restated Credit Agreement to LIBOR plus 2.00% as of December 31, 2018. As of March 31, 2019 , the annual effective interest rate, including original issue discount and amortization of debt issuance costs, was 5.0% . In December 2018, the Company completed a financing of industrial revenue bonds due 2025 with a total commitment of $28 million . The bonds were issued by the County of Campbell, Kentucky and Putnam County Development Authority, pursuant to a trust indenture between the issuers and Huntington National Bank, as trustee. Proceeds of the bonds are loaned by the issuers to the Company under a loan agreement, whereby the Company is obligated to make loan payments to the issuers sufficient to pay all debt service and expenses related to the bonds. The Company's obligations under the loan agreement and related note bear interest at a fluctuating rate based on LIBOR plus 1.50% less an approximate 20 percent reduction in the rate related to the tax-free interest income to the bond holders. The loan agreement contains restrictions and covenants on our operations that are consistent with those contained in the Amended and Restated Credit Agreement mentioned below. There were no amounts outstanding under the Revolver as of March 31, 2019 or 2018 . Interest under the Revolver is floating, based on LIBOR plus 2.25% . In addition, the Company pays a facility fee of 50 basis points per annum on the total capacity under the Revolver. Availability under the Revolver as of March 31, 2019 , based on draws and outstanding letters of credit and absence of violations of covenants, was $73.6 million . Table 9.2: Details of Future Minimum Principal Payments Due Amount Due (in thousands) April 1, 2019 through December 31, 2019 $ 2,036 2020 5,326 2021 6,196 2022 6,196 2023 245,074 Thereafter 3,350 Total Payments $ 268,178 Under the terms of the Amended and Restated Credit Agreement, the Company is required to comply with certain covenants, including among others, the limitation of indebtedness, limitation on liens, and limitations on certain cash distributions. One single financial covenant governs all of the Company's debt and only applies if the outstanding borrowings of the Revolver plus outstanding letters of credit are greater than $22.5 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, taxes, depreciation and amortization. As the sum of outstanding borrowings under the Revolver and outstanding letters of credit were less than $22.5 million at March 31, 2019 , the total leverage ratio of no greater than 5.0 under the financial covenant was not applicable at March 31, 2019 . The Company was in compliance with all applicable covenants under the Amended and Restated Credit Agreement as of March 31, 2019 . |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Commodity Derivative Instruments As of March 31, 2019 , the Company had 2.4 million mmBTUs (millions of British Thermal Units) in aggregate notional amount outstanding natural gas swap contracts to manage commodity price exposures. All of these contracts mature by January 31, 2020 . The Company elected to designate these derivative instruments as cash flow hedges in accordance with ASC 815-20, "Derivatives – Hedging" . No ineffectiveness was recorded on these contracts during the three months ended March 31, 2019 and 2018 . Interest Rate Derivative Instrument In September 2016, the Company entered into interest rate swap agreements for a combined notional amount of $100.0 million with a term of four years , which hedged the floating LIBOR on a portion of the term loan under the Amended and Restated Credit Agreement to an average fixed rate of 1.323% and LIBOR floor of 0.75% . The Company elected to designate these interest rate swaps as cash flow hedges for accounting purposes. On March 29, 2018, the Company terminated its interest rate swap agreements that were previously designated as a cash flow hedge and received $3.2 million in cash, the fair value of the swap on the termination date. The unrealized gain at termination remains in accumulated other comprehensive income and will be amortized into interest expense over the life of the original hedged instrument. During three months ended March 31, 2019 , $0.2 million of unrealized gain, net of tax was amortized into interest expense. Also on March 29, 2018, the Company entered into new interest rate swap agreements for a combined notional amount of $100.0 million , which expire on September 30, 2020 and hedge the floating LIBOR on a portion of the Term Loan to an average fixed rate of 2.46% and LIBOR floor of 0.75% . The Company elected to designate these interest rate swaps as cash flow hedges for accounting purposes. No ineffectiveness was recorded on these contracts during the three months ended March 31, 2019 and 2018 . Table 10.1: Details of Derivatives Fair Value March 31, 2019 December 31, 2018 (in thousands) Assets Interest rate swap $ — $ 86 Commodity hedges 101 61 Total assets $ 101 $ 147 Liabilities Interest rate swap $ 223 $ — Commodity hedges 27 105 Total liabilities $ 250 $ 105 Table 10.2: Gains/(losses) on Derivatives For the Three Months Ended March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018 Gain/(loss) recognized in AOCI on derivatives (effective portion), net of tax Gain/(loss) reclassified from AOCI into income (effective portion), net of tax (in thousands) Interest rate swap $ (161 ) $ 831 $ 303 $ 70 Commodity hedges 41 241 (45 ) (97 ) Total $ (120 ) $ 1,072 $ 258 $ (27 ) 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, 2019 , the Company's derivatives were in a $0.1 million net liability position and recorded in Other current assets and Other current liabilities. 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, 2019 , the Company had no collateral posted with its counterparties related to the derivatives. |
Leases Leases
Leases Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES 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. Certain building leases also include options to renew, with renewal terms that can extend the lease term up to 5 years. The exercise of lease renewal options is at the Company's sole discretion. Table 11.1: Components of lease expense For the Three Months Ended, March 31, 2019 March 31, 2018 (in thousands) Operating lease cost $ 101 $ 99 Short term lease cost 511 735 Total lease cost $ 612 $ 834 Table 11.2: Maturities of lease liabilities Operating leases (in thousands) April 1, 2019 through December 31, 2019 $ 468 2020 637 2021 600 2022 — 2023 — Total lease payments $ 1,705 Less imputed interest (102 ) Present value of lease liabilities $ 1,603 Table 11.3: Details of lease term and discount rate As of March 31, 2019 Weighted-average remaining lease term Operating leases 3 years Weighted-average discount rate Operating leases 4.52 % |
Treasury Stock
Treasury Stock | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Treasury Stock | TREASURY STOCK On November 4, 2015 , the Company announced that the Board of Directors approved a new stock repurchase program authorizing the Company to repurchase up to $50 million of its common stock, at such times and prices as determined by management as market conditions warrant, through December 31, 2016 . Pursuant to this authorization, the Company has repurchased shares of its common stock in the open market and in private transactions. Since the initial authorization, the Company' Board of Directors has expanded and extended the stock repurchase program. The most recent authorization on February 21, 2018 expanded the program to a total of $300 million and also extended the expiration date to December 31, 2019 . As of March 31, 2019, there was approximately $126.0 million of capacity remaining under this repurchase authorization. All repurchased shares are held in treasury, reducing the number of shares of common stock outstanding and used in the Company's earnings per share calculation. Table 12: Details of Treasury Stock Activity March 31, 2019 March 31, 2018 Shares Amount (1) Average Share Price (1) Shares Amount (1) Average Share Price (1) (in thousands, except share data) Beginning Balance 9,070,346 $ 209,050 $ 23.05 6,788,817 $ 143,357 $ 21.12 Repurchases on open market 191,907 5,005 26.08 530,600 14,550 27.42 Ending Balance 9,262,253 $ 214,055 $ 23.11 7,319,417 $ 157,907 $ 21.57 ( 1 ) Includes commissions paid for repurchases on open market. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION On February 19, 2019 , the Company granted certain employees 63,772 Restricted Stock Units ("RSUs") that vest ratably over four years from the grant date. All of these grants had a market price on the date of grant of $27.32 . Additionally, on February 20, 2019 , the Company granted an employee and members of the Board of Directors 23,936 RSUs and 17,100 RSUs, respectively, that vest ratably over a period of four years for the employee and one year for the members of the Board of Directors from the grant date and had a market price on the date of grant of $27.24 . On February 19, 2019 and February 20, 2019 , the Company also granted certain employees 30,172 Performance Based RSUs ("PRSUs") and 23,936 PRSUs, respectively. The PRSUs vest on December 31, 2021 , with the exact number of PRSUs vesting subject to the achievement of certain performance conditions through December 31, 2020. The number of PRSUs earned will vary from 0% to 240% of the number of PRSUs awarded. The market price on February 19, 2019 was $27.32 , and the market price on February 20, 2019 was $27.24 . For both the three months ended March 31, 2019 and 2018 , the Company recognized share-based compensation expenses of $ 0.6 million in expense. The expenses related to share-based compensation awards that were recorded in selling and administrative expenses. As of March 31, 2019 , there was $6.9 million of total unrecognized compensation cost related to non-vested stock options, restricted stock awards, RSUs and PRSUs. This cost is expected to be recognized over a weighted average period of 2.7 years . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS Table 14: Details of Changes in Accumulated Other Comprehensive Loss by Category Foreign currency translation adjustment Net unrealized gain on derivatives, net of tax Total (in thousands) Balance as of December 31, 2018 $ (5,027 ) $ 1,636 $ (3,391 ) Other comprehensive income/(loss) before reclassifications 324 (120 ) 204 Amounts reclassified from accumulated other comprehensive loss — (258 ) (258 ) Net current period other comprehensive income/(loss) 324 (378 ) (54 ) Balance as of March 31, 2019 $ (4,703 ) $ 1,258 $ (3,445 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s estimated annual effective tax rate is 22.5% . The Company is subject to federal income taxes and various state, provincial and local income taxes. The Company is subject to audit examinations at the U.S. 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 any challenges would be 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. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of potentially dilutive securities. Potentially dilutive common stock has no effect on income available to common stockholders. For the three months ended March 31, 2019 and 2018 respectively, approximately 82,253 and 62,949 share-based compensation awards were excluded from the weighted average shares outstanding because their impact would be anti-dilutive in the computation of dilutive earnings per share Table 16: Details of Basic and Dilutive Earnings Per Share For the Three Months Ended March 31, 2019 March 31, 2018 (dollars in thousands, except for per share amounts) Net income $ 15,926 $ 13,646 Weighted average number of shares outstanding - basic 35,248,280 37,432,782 Effect of dilutive securities: Restricted stock awards — 3,509 Restricted stock units 55,515 72,012 Performance restricted stock units 29,775 69,509 Stock options 16,689 27,141 Total effect of dilutive securities 101,979 172,171 Weighted average number of shares outstanding - diluted 35,350,259 37,604,953 Basic earnings per share $ 0.45 $ 0.36 Diluted earnings per share $ 0.45 $ 0.36 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments The Company has non-capital purchase commitments that primarily relate to gas, gypsum, paper and other raw materials. The total amounts purchased under such commitments were $20.4 million and $22.4 million for the three months ended March 31, 2019 and 2018 , respectively. Table 17: Details of Purchase Commitments As of March 31, 2019 (in thousands) April 1, 2019 through December 31, 2019 $ 26,734 2020 36,073 2021 35,363 2022 26,832 2023 11,054 Thereafter 48,144 Total $ 184,200 Contingent obligations Under certain circumstances, the Company provides letters of credit related to its natural gas and other supply purchases. As of March 31, 2019 and December 31, 2018 , the Company had outstanding letters of credit of approximately $1.4 million . Legal Matters 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 guarantees and indemnifications are not expected to have a material 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, 2019 and December 31, 2018 , such liabilities were not expected to have a material adverse effect on the Company's financial condition, results of operations or liquidity. 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, any amounts exceeding the recorded accruals are not expected to have a material adverse effect on the Company's financial condition, results of operations or liquidity. BUCHANAN PLANT OUTAGE On January 24, 2019, Company's Buchanan, New York plant experienced a significant equipment malfunction, resulting in an outage at the plant. The plant was off-line while repairs were made through March 15, 2019. While the Buchanan plant was down, the Company increased production at its plants in Silver Grove, Kentucky and Palatka, Florida to offset a portion of the lost production from the Buchanan plant. The Company has standard insurance coverage that is intended to cover circumstances such as these, including business interruption insurance. The Company's insurance coverage is designed to cover the direct costs of rebuilding the damaged equipment, costs incurred to re-direct products from the Company's other plants, and the lost contribution margin of the sales that otherwise would have been made if the plant was operating normally. Details of Insurance Claims and Cash Payments Related to Buchanan Outage Claim Details Cash Details Claim Amount Insurance Deductible Net recovery recorded in first quarter 2019 Cash received in first quarter 2019 Receivable Recorded as of March 31, 2019 (in thousands) Rebuild of property, plant and equipment damaged (a) $ 1,839 $ 250 $ 1,589 $ 1,589 $ — Directs costs associated with business interruption (b) 2,932 — 2,932 2,661 271 $ 4,771 $ 250 $ 4,521 $ 4,250 $ 271 (a) The rebuild of property, plant and equipment damaged and related net recovery resulted in a net gain of $1.5 million . (b) Direct costs associated with the business interruption include various expenses such as additional freight to ship to customers at greater distances from other plants, additional freight costs to reroute incoming raw materials and other various costs that were incurred as a result of the Buchanan outage and are expected to be covered by the Company's insurance policy. The net recovery of direct costs associated with business interruption were netted against actual costs incurred resulting in a net impact of zero to the income statement. Details of Gain from insurance recoveries, net For the Three Months Ended March 31, 2019 (in thousands) Cost to rebuild property, plant and equipment (capitalized) $ 1,839 Insurance deductible 250 Net recoveries from insurance policy 1,589 Write-off of property, plant and equipment 76 Gain from insurance recoveries, net $ 1,513 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | 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 97.5% and 96.7% of the Company's revenues for the three months ended March 31, 2019 and 2018 , respectively. This segment produces wallboard for the commercial and residential construction sectors. The Company also manufactures 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 customer generating the revenue. The Company did not provide asset information by segment as its Chief Operating Decision Maker does not use such information for purposes of allocating resources and assessing segment performance. Table 18.1: Segment Reporting For the Three Months Ended March 31, 2019 March 31, 2018 (in thousands) Net Sales: Wallboard $ 118,944 $ 112,971 Other 3,088 3,831 Total net sales $ 122,032 $ 116,802 Operating Income: Wallboard $ 23,595 $ 21,030 Other (489 ) (268 ) Total operating income $ 23,106 $ 20,762 Adjustments: Interest expense $ (2,492 ) $ (2,720 ) Losses from equity investment (45 ) (364 ) Other expense, net (36 ) (140 ) Income before provision for income taxes $ 20,533 $ 17,538 Depreciation and Amortization: Wallboard $ 10,276 $ 10,305 Other 244 276 Total depreciation and amortization $ 10,520 $ 10,581 Table 18.2: Details of Net Sales By Geographic Region For the Three Months Ended March 31, 2019 March 31, 2018 (in thousands) United States $ 116,712 $ 109,975 Canada 5,320 6,827 Net sales $ 122,032 $ 116,802 Table 18.3: Details of Assets By Geographic Region Fixed Assets Total Assets March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 (in thousands) United States $ 282,541 $ 285,202 $ 646,228 $ 655,849 Canada 3,160 3,166 17,234 16,532 Total $ 285,701 $ 288,368 $ 663,462 $ 672,381 |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | FAIR VALUE DISCLOSURES 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, 2019 and December 31, 2018 , 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, 2019 that are recorded at fair value on a recurring basis are the natural gas hedges and interest rate swaps. Generally, the Company obtains its Level 2 pricing inputs from its 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 for which it is practicable to estimate that value. Table 19.1: Fair Value Hierarchy - 2019 As of March 31, 2019 Level 1 Level 2 Level 3 Balance (in thousands) Asset Interest rate swap $ — $ — $ — $ — Commodity derivatives — 101 — 101 Total assets $ — $ 101 $ — $ 101 Liabilities Interest rate swap $ — $ 223 $ — $ 223 Commodity derivatives — 27 — 27 Total liabilities $ — $ 250 $ — $ 250 Table 19.2: Fair Value Hierarchy - 2018 As of December 31, 2018 Level 1 Level 2 Level 3 Balance (in thousands) Asset Interest rate swap $ — $ 86 $ — $ 86 Commodity derivatives — 61 — 61 Total assets $ — $ 147 $ — $ 147 Liabilities Interest rate swap $ — $ — $ — $ — Commodity derivatives — 105 — 105 Total liabilities $ — $ 105 $ — $ 105 |
Buchanan Plant Outage Buchanan
Buchanan Plant Outage Buchanan Plant Outage | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Buchanan Plant Outage | COMMITMENTS AND CONTINGENCIES Commitments The Company has non-capital purchase commitments that primarily relate to gas, gypsum, paper and other raw materials. The total amounts purchased under such commitments were $20.4 million and $22.4 million for the three months ended March 31, 2019 and 2018 , respectively. Table 17: Details of Purchase Commitments As of March 31, 2019 (in thousands) April 1, 2019 through December 31, 2019 $ 26,734 2020 36,073 2021 35,363 2022 26,832 2023 11,054 Thereafter 48,144 Total $ 184,200 Contingent obligations Under certain circumstances, the Company provides letters of credit related to its natural gas and other supply purchases. As of March 31, 2019 and December 31, 2018 , the Company had outstanding letters of credit of approximately $1.4 million . Legal Matters 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 guarantees and indemnifications are not expected to have a material 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, 2019 and December 31, 2018 , such liabilities were not expected to have a material adverse effect on the Company's financial condition, results of operations or liquidity. 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, any amounts exceeding the recorded accruals are not expected to have a material adverse effect on the Company's financial condition, results of operations or liquidity. BUCHANAN PLANT OUTAGE On January 24, 2019, Company's Buchanan, New York plant experienced a significant equipment malfunction, resulting in an outage at the plant. The plant was off-line while repairs were made through March 15, 2019. While the Buchanan plant was down, the Company increased production at its plants in Silver Grove, Kentucky and Palatka, Florida to offset a portion of the lost production from the Buchanan plant. The Company has standard insurance coverage that is intended to cover circumstances such as these, including business interruption insurance. The Company's insurance coverage is designed to cover the direct costs of rebuilding the damaged equipment, costs incurred to re-direct products from the Company's other plants, and the lost contribution margin of the sales that otherwise would have been made if the plant was operating normally. Details of Insurance Claims and Cash Payments Related to Buchanan Outage Claim Details Cash Details Claim Amount Insurance Deductible Net recovery recorded in first quarter 2019 Cash received in first quarter 2019 Receivable Recorded as of March 31, 2019 (in thousands) Rebuild of property, plant and equipment damaged (a) $ 1,839 $ 250 $ 1,589 $ 1,589 $ — Directs costs associated with business interruption (b) 2,932 — 2,932 2,661 271 $ 4,771 $ 250 $ 4,521 $ 4,250 $ 271 (a) The rebuild of property, plant and equipment damaged and related net recovery resulted in a net gain of $1.5 million . (b) Direct costs associated with the business interruption include various expenses such as additional freight to ship to customers at greater distances from other plants, additional freight costs to reroute incoming raw materials and other various costs that were incurred as a result of the Buchanan outage and are expected to be covered by the Company's insurance policy. The net recovery of direct costs associated with business interruption were netted against actual costs incurred resulting in a net impact of zero to the income statement. Details of Gain from insurance recoveries, net For the Three Months Ended March 31, 2019 (in thousands) Cost to rebuild property, plant and equipment (capitalized) $ 1,839 Insurance deductible 250 Net recoveries from insurance policy 1,589 Write-off of property, plant and equipment 76 Gain from insurance recoveries, net $ 1,513 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements for the Company 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 Accounting Standards Recently Adopted The Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2016-02, "Leases.", as of January 1, 2019 . The Company elected the transition package of practical expedients permitted within ASU 2016-02, which among other things, allowed the Company to carryforward the historical lease classification. In addition, the Company elected the comparative period practical expedient, which allowed the Company to implement the guidance as of the effective date without having to adjust the comparative financial statements. Instead, under this expedient, companies recognize the cumulative effect adjustment in equity. The Company also made an accounting policy election that leases with an initial term of 12 months or less will not be recorded on the balance sheet and will result in the recognition of those lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. The adoption of the standard resulted in recognition of approximately $1.0 million in right of use assets and $1.7 million in lease liabilities for operating leases on the Company's Consolidated Balance Sheet, with no impact to its retained earnings, Consolidated Statement of Operations and Consolidated Statement of Cash Flows. The Company adopted ASU 2017-12, "Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities," as of January 1, 2019. This ASU expands an entity's ability to hedge non-financial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The adoption of the standard did not have a material impact on the Company's Consolidated Financial Statements. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, "Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments." This ASU is intended to introduce a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact that this guidance may have on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurements (Topic 820), Changes to the Disclosure Requirements for Fair Value Measurement." This ASU eliminates certain disclosure requirements for fair value measurements for all entities, requires public entities to disclose certain new information and modifies some disclosure requirements. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact that this guidance may have on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." This ASU requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to defer and recognize as an asset. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact that this guidance may have on its Consolidated Financial Statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Disclosure Table 2.1: Certain Cash Transactions and Other Activity For the Three Months Ended, March 31, 2019 March 31, 2018 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating lease cash outflows $ 152 $ 148 Other activity: Acquisition of property, plant and equipment included in liabilities $ 1,813 $ 3,684 |
Trade Receivables, Net (Tables)
Trade Receivables, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Detail of Receivables, Net | Table 3: Details of Trade Receivables, Net March 31, 2019 December 31, 2018 (in thousands) Trade receivables, gross $ 44,695 $ 39,426 Allowance for cash discounts and doubtful accounts (710 ) (972 ) Trade receivables, net $ 43,985 $ 38,454 Trade receivables are recorded net of credit memos issued during the normal course of business. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Composition of Inventories | Table 4: Details of Inventories, Net March 31, 2019 December 31, 2018 (in thousands) Finished products $ 7,760 $ 6,700 Raw materials 22,297 18,388 Supplies and other 7,456 7,137 Inventories, net $ 37,513 $ 32,225 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Details | Table 5: Details of Property, Plant and Equipment, Net March 31, 2019 December 31, 2018 (in thousands) Land $ 13,186 $ 13,185 Buildings 120,118 118,076 Plant machinery 293,313 292,219 Mobile equipment 15,468 15,163 Construction in progress 25,520 23,566 Property, plant and equipment, at cost 467,605 462,209 Accumulated depreciation (181,904 ) (173,841 ) Property, plant and equipment, net $ 285,701 $ 288,368 |
Customer Relationships and Ot_2
Customer Relationships and Other Intangibles, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Details of Customer Relationships and Other Intangibles, Net | Table 6.1: Details of Customer Relationships and Other Intangibles, Net March 31, 2019 December 31, 2018 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Customer relationships $ 116,310 $ (67,702 ) $ 48,608 $ 116,180 $ (65,738 ) $ 50,442 Purchased software 8,736 (5,657 ) 3,079 8,225 (5,507 ) 2,718 Trademarks 14,789 (5,505 ) 9,284 14,772 (5,252 ) 9,520 Total $ 139,835 $ (78,864 ) $ 60,971 $ 139,177 $ (76,497 ) $ 62,680 |
Future Amortization Expense of Customer Relationships and Other Intangibles | Table 6.2: Details of Future Amortization Expense of Customer Relationships and Other Intangibles As of March 31, 2019 (in thousands) April 1, 2019 through December 31, 2019 $ 6,935 2020 8,662 2021 7,761 2022 6,987 2023 6,104 Thereafter 24,522 Total $ 60,971 |
Accrued and Other Liabilities (
Accrued and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Details of Accrued and Other Liabilities | Table 8: Details of Accrued and Other Liabilities March 31, 2019 December 31, 2018 (in thousands) Employee-related costs $ 3,497 $ 10,768 Property taxes 664 82 Other taxes 477 351 Other 957 1,614 Accrued and other liabilities $ 5,595 $ 12,815 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Details of Debt | Table 9.1: Details of Debt March 31, 2019 December 31, 2018 (in thousands) Amended and Restated Credit Agreement (1) $ 251,978 $ 252,658 Industrial revenue bonds (2) 16,200 16,200 Less: Original issue discount (net of amortization) (1,223 ) (1,285 ) Less: Debt issuance costs (3,815 ) (4,018 ) Total debt 263,140 263,555 Less: Current portion of long-term debt (1,720 ) (1,669 ) Long-term debt $ 261,420 $ 261,886 (1) As of March 31, 2019 and December 31, 2018, the Amended and Restated Credit Agreement, as amended, had a maturity date of August 18, 2023 and an interest rate of LIBOR (with a 0.75% floor) plus 2.00% . (2) As of March 31, 2019 and December 31, 2018, Industrial revenue bonds had a maturity date of December 1, 2025 and an interest rate of LIBOR plus 1.50% less an approximate 20 percent reduction in the rate related to the tax-free interest income to the bond holders. |
Future Minimum Principal Payments Due Under the Credit Agreements | Table 9.2: Details of Future Minimum Principal Payments Due Amount Due (in thousands) April 1, 2019 through December 31, 2019 $ 2,036 2020 5,326 2021 6,196 2022 6,196 2023 245,074 Thereafter 3,350 Total Payments $ 268,178 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Table 10.1: Details of Derivatives Fair Value March 31, 2019 December 31, 2018 (in thousands) Assets Interest rate swap $ — $ 86 Commodity hedges 101 61 Total assets $ 101 $ 147 Liabilities Interest rate swap $ 223 $ — Commodity hedges 27 105 Total liabilities $ 250 $ 105 |
Derivative Instruments, Gain (Loss) | Table 10.2: Gains/(losses) on Derivatives For the Three Months Ended March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018 Gain/(loss) recognized in AOCI on derivatives (effective portion), net of tax Gain/(loss) reclassified from AOCI into income (effective portion), net of tax (in thousands) Interest rate swap $ (161 ) $ 831 $ 303 $ 70 Commodity hedges 41 241 (45 ) (97 ) Total $ (120 ) $ 1,072 $ 258 $ (27 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | Table 11.1: Components of lease expense For the Three Months Ended, March 31, 2019 March 31, 2018 (in thousands) Operating lease cost $ 101 $ 99 Short term lease cost 511 735 Total lease cost $ 612 $ 834 |
Maturities of Lease Liabilities | Table 11.2: Maturities of lease liabilities Operating leases (in thousands) April 1, 2019 through December 31, 2019 $ 468 2020 637 2021 600 2022 — 2023 — Total lease payments $ 1,705 Less imputed interest (102 ) Present value of lease liabilities $ 1,603 |
Details of Lease Term and Discount Rate | Table 11.3: Details of lease term and discount rate As of March 31, 2019 Weighted-average remaining lease term Operating leases 3 years Weighted-average discount rate Operating leases 4.52 % |
Treasury Stock (Tables)
Treasury Stock (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Treasury Stock Activity | All repurchased shares are held in treasury, reducing the number of shares of common stock outstanding and used in the Company's earnings per share calculation. Table 12: Details of Treasury Stock Activity March 31, 2019 March 31, 2018 Shares Amount (1) Average Share Price (1) Shares Amount (1) Average Share Price (1) (in thousands, except share data) Beginning Balance 9,070,346 $ 209,050 $ 23.05 6,788,817 $ 143,357 $ 21.12 Repurchases on open market 191,907 5,005 26.08 530,600 14,550 27.42 Ending Balance 9,262,253 $ 214,055 $ 23.11 7,319,417 $ 157,907 $ 21.57 ( 1 ) Includes commissions paid for repurchases on open market. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss)/Income by Category | Table 14: Details of Changes in Accumulated Other Comprehensive Loss by Category Foreign currency translation adjustment Net unrealized gain on derivatives, net of tax Total (in thousands) Balance as of December 31, 2018 $ (5,027 ) $ 1,636 $ (3,391 ) Other comprehensive income/(loss) before reclassifications 324 (120 ) 204 Amounts reclassified from accumulated other comprehensive loss — (258 ) (258 ) Net current period other comprehensive income/(loss) 324 (378 ) (54 ) Balance as of March 31, 2019 $ (4,703 ) $ 1,258 $ (3,445 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Dilutive Earnings Per Share | The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of potentially dilutive securities. Potentially dilutive common stock has no effect on income available to common stockholders. For the three months ended March 31, 2019 and 2018 respectively, approximately 82,253 and 62,949 share-based compensation awards were excluded from the weighted average shares outstanding because their impact would be anti-dilutive in the computation of dilutive earnings per share Table 16: Details of Basic and Dilutive Earnings Per Share For the Three Months Ended March 31, 2019 March 31, 2018 (dollars in thousands, except for per share amounts) Net income $ 15,926 $ 13,646 Weighted average number of shares outstanding - basic 35,248,280 37,432,782 Effect of dilutive securities: Restricted stock awards — 3,509 Restricted stock units 55,515 72,012 Performance restricted stock units 29,775 69,509 Stock options 16,689 27,141 Total effect of dilutive securities 101,979 172,171 Weighted average number of shares outstanding - diluted 35,350,259 37,604,953 Basic earnings per share $ 0.45 $ 0.36 Diluted earnings per share $ 0.45 $ 0.36 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Purchase Commitments by Year | Table 17: Details of Purchase Commitments As of March 31, 2019 (in thousands) April 1, 2019 through December 31, 2019 $ 26,734 2020 36,073 2021 35,363 2022 26,832 2023 11,054 Thereafter 48,144 Total $ 184,200 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Table 18.1: Segment Reporting For the Three Months Ended March 31, 2019 March 31, 2018 (in thousands) Net Sales: Wallboard $ 118,944 $ 112,971 Other 3,088 3,831 Total net sales $ 122,032 $ 116,802 Operating Income: Wallboard $ 23,595 $ 21,030 Other (489 ) (268 ) Total operating income $ 23,106 $ 20,762 Adjustments: Interest expense $ (2,492 ) $ (2,720 ) Losses from equity investment (45 ) (364 ) Other expense, net (36 ) (140 ) Income before provision for income taxes $ 20,533 $ 17,538 Depreciation and Amortization: Wallboard $ 10,276 $ 10,305 Other 244 276 Total depreciation and amortization $ 10,520 $ 10,581 |
Net Sales By Geographic Region | Table 18.2: Details of Net Sales By Geographic Region For the Three Months Ended March 31, 2019 March 31, 2018 (in thousands) United States $ 116,712 $ 109,975 Canada 5,320 6,827 Net sales $ 122,032 $ 116,802 |
Assets By Geographic Region | Table 18.3: Details of Assets By Geographic Region Fixed Assets Total Assets March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 (in thousands) United States $ 282,541 $ 285,202 $ 646,228 $ 655,849 Canada 3,160 3,166 17,234 16,532 Total $ 285,701 $ 288,368 $ 663,462 $ 672,381 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Table 19.1: Fair Value Hierarchy - 2019 As of March 31, 2019 Level 1 Level 2 Level 3 Balance (in thousands) Asset Interest rate swap $ — $ — $ — $ — Commodity derivatives — 101 — 101 Total assets $ — $ 101 $ — $ 101 Liabilities Interest rate swap $ — $ 223 $ — $ 223 Commodity derivatives — 27 — 27 Total liabilities $ — $ 250 $ — $ 250 Table 19.2: Fair Value Hierarchy - 2018 As of December 31, 2018 Level 1 Level 2 Level 3 Balance (in thousands) Asset Interest rate swap $ — $ 86 $ — $ 86 Commodity derivatives — 61 — 61 Total assets $ — $ 147 $ — $ 147 Liabilities Interest rate swap $ — $ — $ — $ — Commodity derivatives — 105 — 105 Total liabilities $ — $ 105 $ — $ 105 |
Buchanan Plant Outage (Tables)
Buchanan Plant Outage (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Buchanan Plant Outage | Details of Insurance Claims and Cash Payments Related to Buchanan Outage Claim Details Cash Details Claim Amount Insurance Deductible Net recovery recorded in first quarter 2019 Cash received in first quarter 2019 Receivable Recorded as of March 31, 2019 (in thousands) Rebuild of property, plant and equipment damaged (a) $ 1,839 $ 250 $ 1,589 $ 1,589 $ — Directs costs associated with business interruption (b) 2,932 — 2,932 2,661 271 $ 4,771 $ 250 $ 4,521 $ 4,250 $ 271 (a) The rebuild of property, plant and equipment damaged and related net recovery resulted in a net gain of $1.5 million . (b) Direct costs associated with the business interruption include various expenses such as additional freight to ship to customers at greater distances from other plants, additional freight costs to reroute incoming raw materials and other various costs that were incurred as a result of the Buchanan outage and are expected to be covered by the Company's insurance policy. The net recovery of direct costs associated with business interruption were netted against actual costs incurred resulting in a net impact of zero to the income statement. Details of Gain from insurance recoveries, net For the Three Months Ended March 31, 2019 (in thousands) Cost to rebuild property, plant and equipment (capitalized) $ 1,839 Insurance deductible 250 Net recoveries from insurance policy 1,589 Write-off of property, plant and equipment 76 Gain from insurance recoveries, net $ 1,513 |
Background and Nature of Oper_2
Background and Nature of Operations - Description of Business and Acquisition (Detail) | Mar. 31, 2019facility |
Wallboard | |
Business Acquisition [Line Items] | |
Number of operating facilities (facility) | 3 |
Joint Compound | |
Business Acquisition [Line Items] | |
Number of operating facilities (facility) | 1 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Property, Plant and Equipment [Line Items] | ||
Operating lease - right of use assets | $ 918 | |
Present value of lease liabilities | $ 1,603 | |
Accounting Standards Update 2016-02 | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease - right of use assets | $ 1,000 | |
Present value of lease liabilities | $ 1,700 |
Significant Accounting Polici_5
Significant Accounting Policies - Certain Cash and Non-Cash Transactions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accounting Policies [Abstract] | ||
Operating lease cash outflows | $ 152 | $ 148 |
Acquisition of property, plant and equipment included in liabilities | $ 1,813 | $ 3,684 |
Trade Receivables, Net - Detail
Trade Receivables, Net - Detail of Receivables, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Trade receivables, gross | $ 44,695 | $ 39,426 |
Allowance for cash discounts and doubtful accounts | (710) | (972) |
Trade receivables, net | $ 43,985 | $ 38,454 |
Inventories, Net (Detail)
Inventories, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 7,760 | $ 6,700 |
Raw materials | 22,297 | 18,388 |
Supplies and other | 7,456 | 7,137 |
Inventories, net | $ 37,513 | $ 32,225 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment Details (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 467,605 | $ 462,209 |
Accumulated depreciation | (181,904) | (173,841) |
Property, plant and equipment, net | 285,701 | 288,368 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 13,186 | 13,185 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 120,118 | 118,076 |
Plant machinery | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 293,313 | 292,219 |
Mobile equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 15,468 | 15,163 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 25,520 | $ 23,566 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 8.2 | $ 8.1 |
Investment in Seven Hills - Add
Investment in Seven Hills - Additional Information (Detail) - Seven Hills - Variable Interest Entity, Not Primary Beneficiary - Equity Method Investee - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Cost of paperboard | $ 13.5 | $ 12.2 |
Purchase commitments | $ 35.5 |
Customer Relationships and Ot_3
Customer Relationships and Other Intangibles, Net - Details of Customer Relationships and Other Intangibles, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 139,835 | $ 139,177 |
Accumulated Amortization | (78,864) | (76,497) |
Net | 60,971 | 62,680 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 116,310 | 116,180 |
Accumulated Amortization | (67,702) | (65,738) |
Net | 48,608 | 50,442 |
Purchased software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 8,736 | 8,225 |
Accumulated Amortization | (5,657) | (5,507) |
Net | 3,079 | 2,718 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 14,789 | 14,772 |
Accumulated Amortization | (5,505) | (5,252) |
Net | $ 9,284 | $ 9,520 |
Customer Relationships and Ot_4
Customer Relationships and Other Intangibles, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 2.3 | $ 2.5 |
Customer Relationships and Ot_5
Customer Relationships and Other Intangibles, Net - Future Amortization Expense of Customer Relationships and Other Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
April 1, 2019 through December 31, 2019 | $ 6,935 | |
2020 | 8,662 | |
2021 | 7,761 | |
2022 | 6,987 | |
2023 | 6,104 | |
Thereafter | 24,522 | |
Net | $ 60,971 | $ 62,680 |
Accrued and Other Liabilities_2
Accrued and Other Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Employee-related costs | $ 3,497 | $ 10,768 |
Property taxes | 664 | 82 |
Other taxes | 477 | 351 |
Other | 957 | 1,614 |
Accrued and other liabilities | $ 5,595 | $ 12,815 |
Debt - Details of Debt (Detail)
Debt - Details of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 06, 2017 | Feb. 21, 2017 | Aug. 18, 2016 | Mar. 31, 2019 |
Debt Instrument [Line Items] | |||||
Total debt, gross | $ 268,178 | ||||
Less: Original issue discount (net of amortization) | $ (1,285) | (1,223) | |||
Less: Debt issuance costs | (4,018) | (3,815) | |||
Total debt | 263,555 | 263,140 | |||
Less: Current portion of long-term debt | (1,669) | (1,720) | |||
Long-term debt | 261,886 | 261,420 | |||
Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Debt, variable interest rate (as a percent) | 2.25% | 2.50% | |||
Term Loan Facility | Amended and Restated Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Total debt, gross | $ 252,658 | $ 251,978 | |||
Term Loan Facility | Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Floor rate | 0.75% | 0.75% | |||
Debt, variable interest rate (as a percent) | 2.00% | 2.75% | 2.00% | ||
Industrial Revenue Bonds | Line of Credit | Industrial revenue bonds | |||||
Debt Instrument [Line Items] | |||||
Total debt, gross | $ 16,200 | $ 16,200 | |||
Industrial Revenue Bonds | Line of Credit | Industrial revenue bonds | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Debt, variable interest rate (as a percent) | 1.50% | ||||
Reduction in reate related to the tax-free interest income | 20.00% |
Debt - Additional Information (
Debt - Additional Information (Detail) | Dec. 31, 2018USD ($) | Dec. 06, 2017 | Feb. 21, 2017 | Aug. 18, 2016USD ($) | Mar. 31, 2019USD ($)covenant | Dec. 31, 2018USD ($) |
Amended and Restated Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Decrease in basis spread, percentage | 25.00% | 0.25% | ||||
Leverage ratio (no greater than) | 1.1 | 1.1 | ||||
Number of covenants | covenant | 1 | |||||
Debt covenant trigger, line of credit facility amount less letters of credit threshold | $ 22,500,000 | |||||
Amended and Restated Credit Agreement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Leverage ratio (no greater than) | 5 | |||||
Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt, variable interest rate (as a percent) | 2.25% | 2.50% | ||||
Debt, variable interest rate if leverage ratio met | 2.00% | |||||
Term Loan Facility | Amended and Restated Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt principal amount | $ 275,000,000 | |||||
Schedule principal payments | $ 700,000 | |||||
Effective interest rate | 5.00% | |||||
Term Loan Facility | Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt, variable interest rate (as a percent) | 2.00% | 2.75% | 2.00% | |||
Floor rate | 0.75% | 0.75% | ||||
Line of Credit | Amended and Restated Credit Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility borrowing capacity | $ 75,000,000 | |||||
Debt, variable interest rate (as a percent) | 2.25% | |||||
Outstanding amount | $ 0 | $ 0 | $ 0 | |||
Facility fee, basis points | 0.50% | |||||
Remaining outstanding | $ 73,600,000 | |||||
Line of Credit | Industrial revenue bonds | Industrial Revenue Bonds | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility borrowing capacity | $ 28,000,000 | $ 28,000,000 | ||||
Line of Credit | Industrial revenue bonds | Industrial Revenue Bonds | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt, variable interest rate (as a percent) | 1.50% | |||||
Reduction in reate related to the tax-free interest income | 20.00% |
Debt - Future Minimum Principal
Debt - Future Minimum Principal Payments Due Under the Credit Agreements (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
April 1, 2019 through December 31, 2019 | $ 2,036 |
2020 | 5,326 |
2021 | 6,196 |
2022 | 6,196 |
2023 | 245,074 |
Thereafter | 3,350 |
Total Payments | $ 268,178 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) MMBTU in Millions | Mar. 29, 2018USD ($) | Sep. 30, 2016USD ($) | Mar. 31, 2019USD ($)MMBTU |
Derivative [Line Items] | |||
Derivatives, net liability position | $ (149,000) | ||
Collateral posted with counterparties related to derivatives | $ 0 | ||
Natural Gas Swap | Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Aggregate notional amount outstanding (in mmBTUs) | MMBTU | 2.4 | ||
Interest rate swap | Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Aggregate notional amount outstanding | $ 100,000,000 | $ 100,000,000 | |
Derivative instrument term (not beyond) | 4 years | ||
Average fixed rate (as a percent) | 2.46% | 1.323% | |
Proceeds from derivative hedges | $ 3,200,000 | ||
Unrealized gain amortized into interest expense | $ 200,000 | ||
Interest rate swap | Cash Flow Hedging | Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | |||
Derivative [Line Items] | |||
Floor rate (as a percent) | 0.75% | 0.75% |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative asset | $ 101 | $ 147 |
Derivative liability | 250 | 105 |
Interest rate swap | ||
Derivative [Line Items] | ||
Derivative asset | 0 | 86 |
Derivative liability | 223 | 0 |
Commodity derivatives | ||
Derivative [Line Items] | ||
Derivative asset | 101 | 61 |
Derivative liability | $ 27 | $ 105 |
Derivative Instruments - Gains
Derivative Instruments - Gains (losses) on derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(loss) recognized in AOCI on derivatives (effective portion), net of tax | $ (120) | $ 1,072 |
Gain/(loss) reclassified from AOCI into income (effective portion), net of tax | 258 | (27) |
Interest rate swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(loss) recognized in AOCI on derivatives (effective portion), net of tax | (161) | 831 |
Gain/(loss) reclassified from AOCI into income (effective portion), net of tax | 303 | 70 |
Commodity derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(loss) recognized in AOCI on derivatives (effective portion), net of tax | 41 | 241 |
Gain/(loss) reclassified from AOCI into income (effective portion), net of tax | $ (45) | $ (97) |
Leases - Components of Lease
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Leases [Abstract] | ||
Operating lease cost | $ 101 | $ 99 |
Short term lease cost | 511 | 735 |
Total lease cost | $ 612 | $ 834 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
April 1, 2019 through December 31, 2019 | $ 468 |
2020 | 637 |
2021 | 600 |
Total lease payments | 1,705 |
Less imputed interest | (102) |
Present value of lease liabilities | $ 1,603 |
Leases - Details of Lease Term
Leases - Details of Lease Term and Discount Rate (Details) | Mar. 31, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term, operating leases | 3 years |
Weighted-average discount rate, operating leases | 4.52% |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) | Mar. 31, 2019 | Feb. 21, 2018 | Nov. 04, 2015 |
Equity [Abstract] | |||
Stock repurchase program authorized amount (up to) | $ 300,000,000 | $ 50,000,000 | |
Stock repurchase program, remaining authorized amount | $ 126,000,000 |
Treasury Stock - Treasury Stock
Treasury Stock - Treasury Stock Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Treasury Stock [Roll Forward] | ||||
Beginning balance (shares) | 9,070,346 | 6,788,817 | 6,788,817 | |
Ending balance (shares) | 9,262,253 | 7,319,417 | 9,070,346 | 6,788,817 |
Beginning balance | $ 209,050 | $ 143,357 | $ 143,357 | |
Shares repurchased | 5,005 | 14,550 | ||
Ending balance | $ 214,055 | $ 157,907 | $ 209,050 | $ 143,357 |
Average share price (usd per share) | $ 23.11 | $ 21.57 | $ 23.05 | $ 21.12 |
Repurchases on open market | ||||
Treasury Stock [Roll Forward] | ||||
Shares repurchased (shares) | 191,907 | 530,600 | ||
Shares repurchased | $ 5,005 | $ 14,550 | ||
Average share price (usd per share) | $ 26.08 | $ 27.42 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Feb. 20, 2019 | Feb. 19, 2019 | Mar. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 0.6 | ||
Unrecognized compensation expense | $ 6.9 | ||
Unrecognized compensation expense, weighted average remaining period | 2 years 7 months 30 days | ||
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (in shares) | 63,772 | ||
Grant date fair value of awards granted (in shares) | $ 27.24 | $ 27.32 | |
Vesting period | 4 years | ||
Performance restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (in shares) | 23,936 | 30,172 | |
Grant date fair value of awards granted (in shares) | $ 27.24 | $ 27.32 | |
Performance restricted stock units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage vesting | 0.00% | ||
Performance restricted stock units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage vesting | 240.00% | ||
Employees | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (in shares) | 23,936 | ||
Vesting period | 4 years | ||
Board of Directors | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (in shares) | 17,100 | ||
Vesting period | 1 year |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 327,747 |
Other comprehensive income/(loss) before reclassifications | 204 |
Amounts reclassified from accumulated other comprehensive loss | (258) |
Net current period other comprehensive income/(loss) | (54) |
Ending Balance | 338,767 |
Foreign currency translation adjustment | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (5,027) |
Other comprehensive income/(loss) before reclassifications | 324 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net current period other comprehensive income/(loss) | 324 |
Ending Balance | (4,703) |
Net unrealized gain on derivatives, net of tax | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 1,636 |
Other comprehensive income/(loss) before reclassifications | (120) |
Amounts reclassified from accumulated other comprehensive loss | (258) |
Net current period other comprehensive income/(loss) | (378) |
Ending Balance | 1,258 |
Accumulated Other Comprehensive Loss | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (3,391) |
Ending Balance | $ (3,445) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Scenario, Forecast | |
Income Tax Contingency [Line Items] | |
Effective tax rate | 22.47% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Anti-dilutive securities (in shares) | 82,253 | 62,949 |
Net income | $ 15,926 | $ 13,646 |
Weighted average number of shares outstanding- basic (shares) | 35,248,280 | 37,432,782 |
Effect of dilutive securities: | ||
Total effect of dilutive securities (shares) | 101,979 | 172,171 |
Weighted average number of shares outstanding - diluted (shares) | 35,350,259 | 37,604,953 |
Basic earnings per share (usd per share) | $ 0.45 | $ 0.36 |
Diluted earnings per share (usd per share) | $ 0.45 | $ 0.36 |
Restricted stock awards | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (shares) | 0 | 3,509 |
Restricted stock units | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (shares) | 55,515 | 72,012 |
Performance restricted stock units | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (shares) | 29,775 | 69,509 |
Stock options | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (shares) | 16,689 | 27,141 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Letter of Credit | |||
Long-term Purchase Commitment [Line Items] | |||
Outstanding amount of letters of credit | $ 1.4 | $ 1.4 | |
Gas, Gypsum, Paper, and Other Raw Materials | |||
Long-term Purchase Commitment [Line Items] | |||
Non capital purchased under commitments | $ 20.4 | $ 22.4 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases and Purchase Commitments by Year (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
As of March 31, 2019 | |
April 1, 2019 through December 31, 2019 | $ 26,734 |
2020 | 36,073 |
2021 | 35,363 |
2022 | 26,832 |
2023 | 11,054 |
Thereafter | 48,144 |
Total | $ 184,200 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - geographic_area | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Number of geographical areas (geographic area) | 2 | |
Wallboard | Sales Revenue, Net | Product Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenues | 97.50% | 96.70% |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Sales: | ||
Net Sales | $ 122,032 | $ 116,802 |
Operating Income: | ||
Operating income | 23,106 | 20,762 |
Adjustments: | ||
Interest expense | (2,492) | (2,720) |
Losses from equity investment | (45) | (364) |
Other expense, net | (36) | (140) |
Income before provision for income taxes | 20,533 | 17,538 |
Depreciation and Amortization | ||
Total depreciation and amortization | 10,520 | 10,581 |
Operating Segments | Wallboard | ||
Net Sales: | ||
Net Sales | 118,944 | 112,971 |
Operating Income: | ||
Operating income | 23,595 | 21,030 |
Depreciation and Amortization | ||
Total depreciation and amortization | 10,276 | 10,305 |
Operating Segments | Other | ||
Net Sales: | ||
Net Sales | 3,088 | 3,831 |
Operating Income: | ||
Operating income | (489) | (268) |
Depreciation and Amortization | ||
Total depreciation and amortization | 244 | 276 |
Adjustments | ||
Adjustments: | ||
Interest expense | (2,492) | (2,720) |
Losses from equity investment | (45) | (364) |
Other expense, net | $ (36) | $ (140) |
Segment Reporting - Net Sales b
Segment Reporting - Net Sales by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 122,032 | $ 116,802 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 116,712 | 109,975 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 5,320 | $ 6,827 |
Segment Reporting - Assets by G
Segment Reporting - Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Fixed Assets | $ 285,701 | $ 288,368 |
Total Assets | 663,462 | 672,381 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Fixed Assets | 282,541 | 285,202 |
Total Assets | 646,228 | 655,849 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Fixed Assets | 3,160 | 3,166 |
Total Assets | $ 17,234 | $ 16,532 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ 101 | $ 147 |
Derivative liability | 250 | 105 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 101 | 147 |
Derivative liability | 250 | 105 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 101 | 147 |
Derivative liability | 250 | 105 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 86 |
Derivative liability | 223 | 0 |
Interest rate swap | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 86 |
Derivative liability | 223 | 0 |
Interest rate swap | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Interest rate swap | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 86 |
Derivative liability | 223 | 0 |
Interest rate swap | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Commodity derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 101 | 61 |
Derivative liability | 27 | 105 |
Commodity derivatives | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 101 | 61 |
Derivative liability | 27 | 105 |
Commodity derivatives | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Commodity derivatives | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 101 | 61 |
Derivative liability | 27 | 105 |
Commodity derivatives | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | $ 0 | $ 0 |
Buchanan Plant Outage - Details
Buchanan Plant Outage - Details of Insurance Claims and Cash Payments Related to Buchanan Outage (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Gain from insurance recoveries, net | $ 1,513 | $ 0 |
Rebuild of property, plant and equipment damaged | ||
Loss Contingencies [Line Items] | ||
Claim Amount | 1,839 | |
Insurance Deductible | 250 | |
Net recovery recorded in first quarter 2019 | 1,589 | |
Cash received in first quarter 2019 | 1,589 | |
Receivable Recorded as of March 31, 2019 | 0 | |
Gain from insurance recoveries, net | 1,513 | |
Directs costs associated with business interruption | ||
Loss Contingencies [Line Items] | ||
Claim Amount | 2,932 | |
Insurance Deductible | 0 | |
Net recovery recorded in first quarter 2019 | 2,932 | |
Cash received in first quarter 2019 | 2,661 | |
Receivable Recorded as of March 31, 2019 | 271 | |
Total | ||
Loss Contingencies [Line Items] | ||
Claim Amount | 4,771 | |
Insurance Deductible | 250 | |
Net recovery recorded in first quarter 2019 | 4,521 | |
Cash received in first quarter 2019 | 4,250 | |
Receivable Recorded as of March 31, 2019 | $ 271 |
Buchanan Plant Outage - Detai_2
Buchanan Plant Outage - Details of Gain from Insurance Recoveries, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Gain from insurance recoveries, net | $ 1,513 | $ 0 |
Rebuild of property, plant and equipment damaged | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Loss in Period | 1,839 | |
Loss Contingency, Insurance Deductible | 250 | |
Net recoveries from insurance policy | 1,589 | |
Write-off of property, plant and equipment | 76 | |
Gain from insurance recoveries, net | $ 1,513 |