Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 21, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CBPX | ||
Entity Registrant Name | CONTINENTAL BUILDING PRODUCTS, INC. | ||
Entity Central Index Key | 1,592,480 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding (shares) | 37,441,176 | ||
Entity Public Float | $ 900,682,144 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 489,163 | $ 461,375 | $ 421,682 |
Costs, expenses and other income: | |||
Cost of goods sold | 361,825 | 336,317 | 312,840 |
Selling and administrative | 37,753 | 37,918 | 34,891 |
Costs and Expenses, Related Party | 0 | 0 | 29,946 |
Total costs and operating expenses | 399,578 | 374,235 | 377,677 |
Operating income | 89,585 | 87,140 | 44,005 |
Other expense, net | (1,196) | (5,963) | (751) |
Interest expense, net | (11,788) | (13,590) | (16,432) |
Income before losses from equity method investment and provision for income tax | 76,601 | 67,587 | 26,822 |
Losses from equity method investment | (187) | (736) | (750) |
Income before provision for income taxes | 76,414 | 66,851 | 26,072 |
Provision for income taxes | (16,566) | (22,827) | (9,336) |
Net income | $ 59,848 | $ 44,024 | $ 16,736 |
Net income per share: | |||
Basic (usd per share) | $ 1.55 | $ 1.08 | $ 0.39 |
Diluted (usd per share) | $ 1.54 | $ 1.08 | $ 0.39 |
Weighted average shares outstanding: | |||
Basic (shares) | 38,636,152 | 40,605,464 | 43,172,528 |
Diluted (shares) | 38,774,963 | 40,662,304 | 43,218,324 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 59,848 | $ 44,024 | $ 16,736 |
Foreign currency translation adjustment | 1,142 | 514 | (3,099) |
Net unrealized (losses)/gains on derivatives, net of taxes | (382) | 1,418 | 811 |
Other Comprehensive Income Loss Other Adjustment Net Of Tax | 0 | 0 | 7 |
Other comprehensive income | 760 | 1,932 | (2,281) |
Comprehensive income | $ 60,608 | $ 45,956 | $ 14,455 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash and cash equivalents | $ 72,521 | $ 51,536 |
Receivables, net | 38,769 | 32,473 |
Inventories, net | 24,882 | 25,239 |
Prepaid and other current assets | 11,267 | 7,485 |
Total current assets | 147,439 | 116,733 |
Property, plant and equipment, net | 294,003 | 307,838 |
Customer relationships and other intangibles, net | 70,807 | 81,555 |
Goodwill | 119,945 | 119,945 |
Equity method investment | 9,263 | 8,020 |
Debt issuance costs | 477 | 658 |
Total Assets | 641,934 | 634,749 |
Liabilities: | ||
Accounts payable | 30,809 | 27,411 |
Accrued and other liabilities | 11,940 | 12,321 |
Notes payable, current portion | 1,702 | 1,742 |
Total current liabilities | 44,451 | 41,474 |
Deferred taxes and other long-term liabilities | 15,847 | 19,643 |
Notes payable, non-current portion | 263,610 | 264,620 |
Total Liabilities | 323,908 | 325,737 |
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; 44,321,776 and 44,191,370 shares issued and 37,532,959 and 39,691,715 shares outstanding as of December 31, 2017 and 2016, respectively | 44 | 44 |
Additional paid-in capital | 325,391 | 322,384 |
Less: Treasury stock | (143,357) | (88,756) |
Accumulated other comprehensive loss | (2,649) | (3,409) |
Accumulated earnings | 138,597 | 78,749 |
Total Equity | 318,026 | 309,012 |
Total Liabilities and Equity | $ 641,934 | $ 634,749 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Undesignated preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Undesignated preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Undesignated preferred stock, shares issued | 0 | 0 |
Undesignated preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 190,000,000 | 190,000,000 |
Common stock, shares issued | 44,321,776 | 44,191,370 |
Common stock, shares outstanding | 37,532,959 | 39,691,715 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 59,848 | $ 44,024 | $ 16,736 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 46,460 | 46,646 | 51,308 |
Amortization of debt issuance costs and debt discount | 1,177 | 1,947 | 2,315 |
Losses from equity method investment | 187 | 736 | 750 |
Debt related expenses | 1,170 | 5,802 | 0 |
Stock-based compensation | 2,784 | 2,288 | 801 |
Deferred taxes | (3,414) | 6,504 | 3,407 |
Change in assets and liabilities: | |||
Receivables | (6,296) | 3,342 | 4,133 |
Inventories | 488 | 1,921 | 2,116 |
Prepaid expenses and other current assets | (3,735) | 895 | 844 |
Accounts payable | 3,987 | 2,058 | (1,323) |
Accrued and other current liabilities | (830) | 360 | 1,682 |
Other long term liabilities | (159) | (256) | (191) |
Net cash provided by operating activities | 101,667 | 116,267 | 82,578 |
Cash flows from investing activities: | |||
Capital expenditures | (21,459) | (11,733) | (8,812) |
Software purchased or developed | (583) | (414) | (1,217) |
Capital contributions to equity method investment | (2,219) | (349) | (103) |
Distributions from equity method investment | 790 | 855 | 1,010 |
Net cash used in investing activities | (23,471) | (11,641) | (9,122) |
Cash flows from financing activities: | |||
Capital contribution from Lone Star Funds | 0 | 0 | 29,750 |
Proceeds from exercise of stock options | 230 | 20 | 873 |
Tax withholdings on share-based compensation | (240) | 0 | 0 |
Proceeds from debt refinancing | 545,198 | 275,000 | 0 |
Disbursements for debt refinancing | (545,198) | (271,988) | 0 |
Payments of financing costs | (1,170) | (4,424) | 0 |
Principal payments for debt | (2,052) | (26,375) | (55,000) |
Payments to repurchase common stock | (54,601) | (40,277) | (48,479) |
Net cash used in financing activities | (57,833) | (68,044) | (72,856) |
Effect of foreign exchange rates on cash and cash equivalents | 622 | 225 | (1,498) |
Net change in cash and cash equivalents | 20,985 | 36,807 | (898) |
Cash, beginning of period | 51,536 | 14,729 | 15,627 |
Cash, end of period | $ 72,521 | $ 51,536 | $ 14,729 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Earnings [Member] |
Beginning Balance at Dec. 31, 2014 | $ 303,373 | $ 44 | $ 288,393 | $ 0 | $ (3,060) | $ 17,996 |
Beginning Balance, Shares at Dec. 31, 2014 | 44,069,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 16,736 | 16,736 | ||||
Other comprehensive income (loss), net of tax | (2,281) | (2,281) | ||||
Capital contribution from Lone Star Funds | 29,750 | 29,750 | ||||
Purchase of treasury shares | (48,479) | (48,479) | ||||
Purchase of treasury shares ( in shares) | (2,395,049) | |||||
Stock option exercise | 873 | 873 | ||||
Stock option exercise, shares | 62,331 | |||||
Share-based compensation | 801 | 801 | ||||
Share-based compensation, shares | 13,749 | |||||
Other | (7) | 0 | (7) | |||
Ending Balance at Dec. 31, 2015 | 300,766 | $ 44 | 319,817 | (48,479) | (5,341) | 34,725 |
Ending Balance, Shares at Dec. 31, 2015 | 41,750,031 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 44,024 | 44,024 | ||||
Other comprehensive income (loss), net of tax | 1,932 | 1,932 | ||||
Purchase of treasury shares | (40,277) | (40,277) | ||||
Purchase of treasury shares ( in shares) | (2,104,606) | |||||
Stock option exercise | 20 | 20 | ||||
Stock option exercise, shares | 1,463 | |||||
Share-based compensation | 2,288 | 2,288 | ||||
Share-based compensation, shares | 33,954 | |||||
Employee stock purchase program, shares | 10,873 | |||||
Employee stock purchase program | 259 | 259 | ||||
Ending Balance at Dec. 31, 2016 | 309,012 | $ 44 | 322,384 | (88,756) | (3,409) | 78,749 |
Ending Balance, Shares at Dec. 31, 2016 | 39,691,715 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 59,848 | 59,848 | ||||
Other comprehensive income (loss), net of tax | 760 | 760 | ||||
Purchase of treasury shares | (54,601) | (54,601) | ||||
Purchase of treasury shares ( in shares) | (2,289,162) | |||||
Stock option exercise | 230 | 230 | ||||
Stock option exercise, shares | 16,594 | |||||
Share-based compensation | 2,544 | 2,544 | ||||
Share-based compensation, shares | 93,470 | |||||
Employee stock purchase program, shares | 20,342 | |||||
Employee stock purchase program | 233 | 233 | ||||
Ending Balance at Dec. 31, 2017 | $ 318,026 | $ 44 | $ 325,391 | $ (143,357) | $ (2,649) | $ 138,597 |
Ending Balance, Shares at Dec. 31, 2017 | 37,532,959 |
Background and Nature of Operat
Background and Nature of Operations | 12 Months Ended |
Dec. 31, 2017 | |
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. Prior to the acquisition of the gypsum division of Lafarge North America Inc. ("Lafarge N.A.") described below, the Company had no operating activity. 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. The Acquisition On June 24, 2013 , Lone Star Fund VIII (U.S.), L.P., (along with its affiliates and associates, but excluding the companies that it owns as a result of its investment activity, "Lone Star"), entered into a definitive agreement with Lafarge N.A. to purchase the assets of its North American gypsum division for an aggregate purchase price of approximately $703 million (the "Acquisition") in cash. The closing of the Acquisition occurred on August 30, 2013 . Secondary Public Offerings On March 18, 2015, LSF8, an affiliate of Lone Star, sold 5,000,000 shares of the Company's common stock at a price per share of $19.40 . As a result of the sale, the aggregate beneficial ownership of Lone Star fell below 50% of the Company's outstanding shares of common stock and the Company no longer qualified as a "Controlled Company" under the corporate governance standards of New York Stock Exchange. On May 15, 2015 and June 3, 2015, LSF8 sold an additional 4,600,000 and 361,747 shares of the Company's common stock, respectively, at a price per share of $21.90 . On September 16, 2015, LSF8 sold an additional 4,600,000 shares of the Company's common stock at a price per share of $19.85 . The decrease in ownership by Lone Star and its affiliates to below 50% and LSF8's subsequent sales of common stock triggered an aggregate of $29.9 million in payments to certain officers and the estate of the Company's former CEO under the LSF8 Gypsum Holdings, L.P. Long Term Incentive Plan, which was funded by LSF8 (See Note 17, Related Party Transactions). On March 18, 2016, following a series of secondary offerings, LSF8 Gypsum Holdings, L.P. ("LSF8") sold its remaining 5,106,803 shares of the Company's common stock at a price per share of $16.10 . Following the March 18, 2016 transaction and the concurrent repurchase by the Company of 900,000 shares of Company's common stock from LSF8, to the best of the Company's knowledge, neither LSF8 nor any other affiliate of Lone Star held any shares of Company common stock (See Note 11, Treasury Stock). |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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) Cash Cash and cash equivalents include highly liquid investments with maturities of three months or less at the time of purchase maintained at financial institutions in the United States and Canada. At times the amounts may exceed federally insured deposit limits. The Company has not experienced any losses and does not believe it is exposed to any significant credit risk related to demand deposits. Table 2.1: Certain Cash and Non-Cash Transactions For the Year Ended December 31, 2017 2016 2015 (in thousands) Cash paid during the period for: Interest paid on term loan $ 10,000 $ 10,996 $ 13,525 Income taxes paid, net 19,836 19,105 1,870 Non-cash amounts in accounts payable for capital expenditures for the years ended December 31, 2017 and 2016 totaled $0.6 million and $2.5 million , respectively. (c) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses. Actual results may differ from these estimates. (d) Earnings Per Share Basic earnings per share is computed by dividing net income applicable to common stock by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income applicable to shares of common stock by the weighted average number of shares of common stock outstanding inclusive of any dilutive potential shares of common stock and dilutive stock options. It is assumed that all dilutive stock options were exercised at the beginning of each period and that the proceeds were used to purchase shares of common stock at the average market price during the period. (e) Cost of Goods Sold and Selling and Administrative Expenses Cost of goods sold includes costs of production, depreciation, amortization of acquired intangibles, inbound freight charges for raw materials, outbound freight to customers, purchasing and receiving costs, inspection costs, warehousing at plant facilities, and internal transfer costs. Costs associated with third-party warehouses are included in selling and administrative expenses. Selling and administrative costs also include expenses for sales, marketing, legal, accounting and finance services, human resources, customer support, treasury, other general corporate services and amortization of software development cost. (f) Foreign Currency Translation The Company uses the U.S. dollar as its functional currency for operations in the United States and the Canadian dollar for the Company's operations in Canada. The assets and liabilities of the Company's Canadian operations are translated at the exchange rate prevailing at the balance sheet date. Related revenues and expense accounts for the Canadian operations are translated using the average exchange rate during the year. (g) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are primarily receivables. The Company performs ongoing credit evaluations of its customers' financial condition and generally requires no collateral from its customers. The allowances for non-collection of receivables are based upon analysis of economic trends in the construction industry, detailed analysis of the expected collectability of accounts receivable that are past due and the expected collectability of overall receivables. Table 2.2: Significant Customer Net Sales as a Percentage of Total Net Sales For the Year Ended December 31, 2017 2016 2015 Lowe's 14 % 15 % 16 % Foundation Building Materials 11 % * * * Foundation Building Materials was not considered a significant customer in prior years. Table 2.3: Significant Customer Accounts Receivable as a Percentage of Total Accounts Receivable As of December 31, 2017 2016 Lowe's 25 % 32 % Foundation Building Materials 9 % * * Foundation Building Materials was not considered a significant customer in prior years. (h) Receivables Trade receivables are recorded at net realizable value, which includes allowances for cash discounts and doubtful accounts, and are reflected net of customer rebates. The Company reviews the collectability of trade receivables on an ongoing basis. The Company reserves for trade receivables determined to be uncollectible. This determination is based on the delinquency of the account, the financial condition of the customer and the Company's collection experience. (i) Inventories Inventories are valued at the lower of cost and net realizable value. Virtually all of the Company's inventories are valued under the average cost method. Inventories include materials, labor and applicable factory overhead costs. The value of inventory is adjusted for damaged, obsolete, excess and slow-moving inventory. Net realizable value of inventory is estimated based on the impact of market trends, an evaluation of economic conditions and the value of current orders relating to the future sales of this type of inventory. (j) Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation of property, plant and equipment is computed for financial reporting purposes using the straight-line method over the estimated useful lives of the assets. These lives range from 20 to 25 years for buildings, 5 to 25 years for plant machinery, and 5 to 8 years for mobile equipment. Repair and maintenance costs are expensed as incurred. Substantially all of the Company's depreciation expenses are recorded in "Cost of goods sold" in the Statements of Operations. The Company capitalizes interest during the construction of major projects. Capitalized interest is added to the cost of the underlying assets and is depreciated over the useful lives of those assets. (k) Impairment or Disposal of Long-Lived Assets The Company evaluates the recoverability of its long-lived assets in accordance with the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 360 Property, Plant and Equipment ("ASC 360"). ASC 360 requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. Such evaluations for impairment are significantly impacted by estimates of future prices for its products, capital needs, economic trends in the construction sector and other factors. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Assets to be disposed of by sale are reflected at the lower of their carrying amount or fair value less cost to sell. The Company assesses impairment of the Company's long-lived assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. As of December 31, 2017 , the Company grouped the wallboard plants as an asset group. The plants within each group were used together to generate cash flows. The Company's two joint compound plants were also grouped as an asset group. (l) Goodwill and Intangible Assets The goodwill and intangibles reflected in the financial statements relates solely to the Acquisition. Goodwill represents the excess of costs over the fair value of identifiable assets of businesses acquired. The Company evaluates goodwill and intangible assets in accordance with ASC 350, Goodwill and Other Intangible Assets. ASC 350 requires goodwill to be either qualitatively or quantitatively assessed for impairment annually (or more frequently if impairment indicators arise) for each reporting unit. As of December 31, 2017 and 2016 , the Company had one reporting unit, wallboard, which included goodwill. The Company performs its annual impairment testing of goodwill as of October 1st of each year. The Company completed qualitative assessments as of October 1, 2017 and 2016 and determined that it was not more likely than not that the fair value of its reporting unit was less than its carrying amount. To date, no goodwill impairment losses have been recognized. Intangible assets that are deemed to have definite lives are amortized over their useful lives. The cost of internal-use software purchased or developed internally, is accounted for in accordance with ASC 350-40, Internal-Use Software. The weighted average useful life of capitalized software is 3 years . Amortization of customer relationships is done over a 15 year period using an accelerated method that reflects the expected future cash flows from the acquired customer-related intangible asset. Trademarks identified as having definite lives are amortized on a straight-line basis over the estimated useful life of 15 years. (m) Fair Value Measurements U.S. GAAP provides a framework for measuring fair value, establishes a fair value hierarchy of the valuation techniques used to measure the fair value and requires certain disclosures relating to fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in a market with sufficient activity. The three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value is as follows: • Level 1—Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities that a Company has the ability to access; • Level 2—Inputs, other than the quoted market prices included in Level 1, which are observable for the asset or liability, either directly or indirectly; and • Level 3—Unobservable inputs for the asset or liability which is typically based on an entity's own assumptions when there is little, if any, related market data available. The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by the Company. The fair values of receivables, accounts payable, accrued costs and other current liabilities approximate the carrying values as a result of the short-term nature of these instruments. (n) Environmental Remediation Liabilities When the Company determines that it is probable that a liability for environmental matters has been incurred, an undiscounted estimate of the required remediation costs is recorded as a liability in the financial statements, without offset of potential insurance recoveries. Costs that extend the life, increase the capacity or improve the safety or efficiency of company-owned assets or are incurred to mitigate or prevent future environmental contamination are capitalized. Other environmental costs are expensed when incurred. The Company did not have any environmental liabilities recorded as of December 31, 2017 and 2016. (o) Income Taxes The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes to reflect the expected future tax consequences of events recognized in the financial statements. Deferred income tax assets and liabilities are recognized by applying enacted tax rates to temporary differences that exist as of the balance sheet date which result from differences in the timing of reported taxable income between tax and financial reporting. The Company reduces the carrying amounts of deferred tax assets by a valuation allowance if, based on the available evidence, it is more likely than not that such assets will not be realized. The need to establish valuation allowances for deferred tax assets is assessed annually. In assessing the requirement for, and amount of, a valuation allowance in accordance with the more likely than not standard, the Company gives appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability and foreign source income, the duration of statutory carryforward periods, and the Company's experience with operating loss and tax credit carryforward expirations. A history of cumulative losses is a significant piece of negative evidence used in the assessment. If a history of cumulative losses is incurred for a tax jurisdiction, forecasts of future profitability are not used as positive evidence related to the realization of the deferred tax assets in the assessment. The Company recognizes the tax benefits of an uncertain tax position if those benefits are more likely than not to be sustained based on existing tax law. Additionally, the Company establishes a reserve for tax positions that are more likely than not to be sustained based on existing tax law, but uncertain in the ultimate benefit to be sustained upon examination by the relevant taxing authorities. Unrecognized tax benefits are subsequently recognized at the time the more likely than not recognition threshold is met, the tax matter is effectively settled or the statute of limitations for the relevant taxing authority to examine and challenge the tax position has expired, whichever is earlier. (p) Share-Based Compensation The Company accounts for stock-based compensation to employees and directors based on the estimated fair value of the award generally determined on the date of grant. The associated expense, net of estimated forfeitures, is generally recognized ratably over the requisite service period, which is generally the vesting period of the award. For awards with graded vesting that only contain a service condition, the Company recognizes expense on a straight-line basis over the service period. (q) Defined Contribution Pension Plans and Other Post-Retirement Benefits Subsequent to the Acquisition, the Company's employees were able to participate in a 401K defined contribution pension plan. The Company contributes funds into this plan depending on each employee's years of service and subject to certain limits. For the years ended December 31, 2017, 2016 and 2015, the Company recorded an expense of $1.8 million , $1.9 million and $1.4 million , respectively, for these contributions. (r) Revenue Recognition Revenue from the sale of gypsum products is recorded when title and ownership are transferred upon shipment of the products. Amounts billed to a customer in a sales transaction related to shipping and handling are included in "Net sales," and costs incurred for shipping and handling are classified as "Cost of goods sold" in the Consolidated Statements of Operations. The Company records estimated reductions to revenue for customer programs and incentive offerings, including promotions and other volume-based incentives, in the period in which the sale occurs. (s) Derivative Instruments The Company uses derivative instruments to manage selected commodity price and interest rate exposures. The Company does not use derivative instruments for speculative trading purposes, and typically does not hedge beyond one year. All derivative instruments must be recorded on the balance sheet at fair value. Currently, the Company is using natural gas swap contracts to manage commodity price increase exposure and interest rate swap contracts to lock a portion of the variability of the interest payments on long-term debt. The Company elected to designate these derivative instruments as cash flow hedges in accordance with ASC 815-20, Derivatives – Hedging. For derivative contracts designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is recorded to accumulated other comprehensive income, and is reclassified to earnings when the underlying forecasted transaction affects earnings. The ineffective portion of the changes in the fair value of the derivative is recorded in cost of goods sold for gas hedges and in interest expense for interest rate swaps. Gains and losses on these contracts that are designated as cash flow hedges are reclassified into earnings when the underlying forecasted transaction affect earnings. Cash flows from derivative instruments are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company reassesses the probability of the underlying forecasted transactions occurring on a quarterly basis. (t) Recent Accounting Pronouncements Accounting Standards Adopted During the Period In July 2015, the FASB issued Accounting Standards Update ("ASU") 2015-11, "Inventory: Simplifying the Measurement of Inventory." This guidance applies to inventory valued at first-in, first-out (FIFO) or average cost and requires inventory to be measured at the lower of cost and net realizable value, rather than at the lower of cost or market. ASU 2015-11 was effective on a prospective basis for annual periods, including interim reporting periods within those periods, beginning after December 15, 2016. The Company values its inventory under the average cost method and thus was required to adopt the standard. The Company adopted the new standard in the first quarter of 2017. The adoption of this standard did not have a material impact on the Company's Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which introduces targeted amendments intended to simplify the accounting for stock compensation. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether the benefit reduces taxes payable in the current period. That is, off-balance sheet accounting for net operating losses stemming from excess tax benefits would no longer be required and instead such net operating losses would be recognized when they arise. Existing net operating losses that are currently tracked off-balance sheet would be recognized, net of a valuation allowance if required, through an adjustment to opening retained earnings in the period of adoption. Entities will no longer need to maintain and track an "APIC pool." The ASU also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. The amendments were effective for annual periods beginning after December 15, 2016. The Company adopted the new standard in the first quarter of 2017, which resulted in a favorable adjustment to income tax provision of $0.3 million . In January 2017, the FASB issued ASU 2017- 04, "Intangibles - Goodwill and Other." This ASU simplifies the goodwill impairment calculation by eliminating the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of today's goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value (i.e., Step 1 of today's goodwill impairment test). The standard will be applied prospectively and is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company adopted the new standard in the fourth quarter of 2017. The adoption of this standard did not have a material impact on the Company's Consolidated Financial Statements. Accounting Standards Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-9, "Revenue from Contracts with Customers (Topic 606)," which provides accounting guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which defers the effective date of ASU No. 2014-9 for all entities by one year to annual reporting periods beginning after December 15, 2017. The ASU requires retroactive application on either a full or modified basis. The Company will adopt the standard on January 1, 2018. Based on evaluation, the Company has concluded it has one revenue stream and the adoption of this new guidance will not have a material impact on its Consolidated Financial Statements. The Company is still in the process of evaluating the potential impact of additional disclosure requirements. In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the process of evaluating the impact of adoption, which is not expected to have a material impact on the Company's Consolidated Financial Statements. 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 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments." This ASU reduces existing diversity in the classification of certain cash receipts and cash payments on the statements of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. The Company does not expect the adoption of this standard to have a material impact on its Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." The new standard requires companies to recognize the income tax effects of intercompany sales or transfers of assets, other than inventory, in the income statement as income tax expense (or benefit) in the period the sales or transfer occurs. The standard requires companies to apply a modified retrospective approach with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. The provisions of this standard are effective for fiscal years beginning after December 15, 2017, and early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its Consolidated Financial Statements. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities" . 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 provisions of this standard are effective in 2019 for calendar-year public business entities and in 2020 for all other calendar-year companies. Early adoption of the standard is permitted. The Company is currently evaluating when it will adopt the ASU and the expected impact to its Consolidated Financial Statements. (u) Reclassifications Certain reclassifications of prior year information were made to conform to the 2017 presentation. These reclassifications had no material impact on the Company's Consolidated Financial Statements. |
Receivables, Net
Receivables, Net | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Receivables, Net | RECEIVABLES, NET Table 3: Details of Receivables, Net As of December 31, 2017 2016 (in thousands) Trade receivables, gross $ 39,577 $ 33,199 Allowance for cash discounts and doubtful accounts (808 ) (726 ) Receivables, net $ 38,769 $ 32,473 Trade receivables are recorded net of credit memos issued during the normal course of business. Table 3.2: Changes in Allowance for Cash Discounts and Doubtful Accounts For the Year Ended December 31, 2017 2016 2015 (in thousands) Balance at beginning of period $ 726 $ 1,988 2,308 Provision for/(release of) bad debt expense 15 (104 ) (166 ) Write-offs, net of recoveries 8 (1,209 ) (71 ) Cash discount additions 4,783 4,334 3,719 Cash discount deductions (4,724 ) (4,283 ) (3,802 ) Balance at end of period $ 808 $ 726 $ 1,988 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES, NET Table 4: Details of Inventories, Net As of December 31, 2017 2016 (in thousands) Finished products $ 5,893 $ 7,246 Raw materials 11,663 10,910 Supplies and other 7,326 7,083 Inventories, net $ 24,882 $ 25,239 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET Table 5: Details of Property, Plant and Equipment, Net As of December 31, 2017 2016 (in thousands) Land $ 13,187 $ 12,925 Buildings 114,051 112,583 Plant machinery 281,786 275,010 Mobile equipment 10,366 6,721 Construction in progress 20,291 15,016 Property, plant and equipment, at cost 439,681 422,255 Accumulated depreciation (145,678 ) (114,417 ) Property, plant and equipment, net $ 294,003 $ 307,838 Depreciation expense was $34.5 million , $33.1 million and $35.4 million for the years ended December 31, 2017 , 2016 and 2015 respectively. |
Customer Relationships and Othe
Customer Relationships and Other Intangibles, Net | 12 Months Ended |
Dec. 31, 2017 | |
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 As of December 31, 2017 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Customer relationships $ 116,711 $ (57,811 ) $ 58,900 $ 116,267 $ (48,243 ) $ 68,024 Purchased and internally developed software 6,226 (4,871 ) 1,355 5,322 (3,289 ) 2,033 Trademarks 14,839 (4,287 ) 10,552 14,783 (3,285 ) 11,498 Total $ 137,776 $ (66,969 ) $ 70,807 $ 136,372 $ (54,817 ) $ 81,555 Amortization expense was $11.9 million , $13.5 million and $15.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Table 6.2: Details of Future Amortization Expense of Customer Relationships and Other Intangibles As of December 31, 2017 (in thousands) 2018 $ 9,763 2019 8,745 2020 7,880 2021 7,154 2022 6,535 Thereafter 30,730 Total $ 70,807 |
Investment in Seven Hills
Investment in Seven Hills | 12 Months Ended |
Dec. 31, 2017 | |
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 provides the Company with a continuous supply of high-quality recycled paperboard liner to meet its ongoing production requirements. The Company has evaluated the characteristics of its investment and determined that Seven Hills would be deemed a variable interest entity, but that it 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. In 2017 , the Company made capital contributions of $2.2 million for capital projects, which increased the capacity of Seven Hills to supply the Company with its paper needs. The Company currently has the right to terminate the venture and put its interest to the other investor based on a formula-driven price effective on the anniversary of the commencement date by providing notice two years prior to any such anniversary. Proceeds from such termination would revert to the Company. As of December 31, 2017 and 2016 , the estimated redemption value would be $8.9 million and $8.3 million , respectively. Paperboard liner purchased from Seven Hills was $55.8 million , $47.0 million and $45.5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , the Company had certain purchase commitments for paper totaling $26.3 million through 2020 . |
Accrued and Other Liabilities
Accrued and Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued and Other Liabilities | ACCRUED AND OTHER LIABILITIES Table 8: Details of Accrued and Other Liabilities As of December 31, 2017 2016 (in thousands) Employee-related costs $ 9,258 $ 9,595 Other taxes 938 2,088 Other 1,744 638 Accrued and other liabilities $ 11,940 $ 12,321 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Table 9.1: Details of Debt As of December 31, 2017 2016 (in thousands) First Lien Credit Agreement (a) $ 271,573 $ 273,625 Less: Original issue discount (net of amortization) (1,681 ) (1,946 ) Less: Debt issuance costs (4,580 ) (5,317 ) Total debt 265,312 266,362 Less: Current portion of long-term debt (1,702 ) (1,742 ) Long-term debt $ 263,610 $ 264,620 (a) As of December 31, 2017, 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 2.25% , compared to as of December 31, 2016, at which time the Amended and Restated Credit Agreement had the same maturity date and an interest rate of LIBOR (with a 0.75% floor) plus 2.75% . On August 18, 2016, the Company, Continental Building Products Operating Company, LLC ("OpCo") 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 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 and a $75 million senior secured revolving credit facility (the "Revolver"), which mature on August 18, 2023 and August 18, 2021, respectively. Related to this debt refinancing, the Company incurred $4.7 million of discount and debt issuance costs, of which $2.5 million was recorded in Other expense, net on the Consolidated Statements of Operations in 2016, and $2.2 million will be amortized over the term of the Amended and Restated Credit Agreement. Upon completion of this debt refinancing, the Company recognized an additional expense of $3.3 million related to losses resulting from debt extinguishment which is also reported in Other expense, net on the Consolidated Statements of Operations in 2016. The interest rate under the Amended and Restated Credit Agreement remained floating but was reduced to 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% . The Company may further reduce its 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. In connection with the debt repricings, the Company incurred $1.2 million of debt issuance costs, which was recorded in Other expense, net on the Consolidated Statements of Operations in 2017. The Amended and Restated Credit Agreement is secured by the underlying property and equipment of the Company. Under the terms of the Amended and Restated Credit Agreement, we are required to repay the Term Loan in consecutive quarterly installments equal to 0.25% of the original principal amount of the Term Loan, beginning on September 30, 2016, and a final installment on August 18, 2023 in an amount equal to the aggregate principal amount outstanding on such date. During 2017 , we made approximately $2.1 million of mandatory principal payments compared to $1.4 million in 2016 . During the year ended December 31, 2017 the Company made no voluntary prepayment of principal, compared to $25.0 million and $55.0 million in the years ended December 31, 2016 and 2015, respectively. As of December 31, 2017 , the annual effective interest rate, including original issue discount and amortization of debt issuance costs, was 4.3% . There were no amounts outstanding under the Revolver as of December 31, 2017 or 2016 . During the year ended December 31, 2017 the Company did not have any draws under the Revolver, compared to $22.0 million which the Company borrowed and repaid in full in 2016 under the applicable revolving credit facility. 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 December 31, 2017 , based on draws and outstanding letters of credit and absence of violations of covenants, was $73.4 million . Table 9.2: Details of Future Minimum Principal Payments Due Under the Amended and Restated Credit Agreement Amount Due (in thousands) 2018 $ 2,736 2019 2,736 2020 2,736 2021 2,736 2022 2,736 Thereafter 257,893 Total Payments $ 271,573 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 December 31, 2017 , the total leverage ratio of no greater than 5.0 under the financial covenant was not applicable at December 31, 2017 . The Company was in compliance with all applicable covenants under the Amended and Restated Credit Agreement as of December 31, 2017 . |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Commodity Derivative Instruments As of December 31, 2017 , the Company had 3.5 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 December 31, 2018 . 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 years ended December 31, 2017 , 2016 and 2015 . 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. No ineffectiveness was recorded on these contracts during the years ended December 31, 2017 and 2016 . Table 10.1: Details of Derivatives Fair Value As of December 31, 2017 2016 (in thousands) Assets Interest rate swap $ 2,148 $ 1,800 Commodity hedges 11 351 Total assets $ 2,159 $ 2,151 Liabilities Interest rate swap $ — $ — Commodity hedges 613 — Total liabilities $ 613 $ — Table 10.2: Gains/(losses) on Derivatives For the Year Ended December 31, 2017 2016 2015 2017 2016 2015 Gain/(loss) recognized in AOCI on derivatives (effective portion), net of tax Loss reclassified from AOCI into income (effective portion), net of tax (in thousands) Interest rate swap $ 328 $ 1,302 — $ (87 ) $ (110 ) — Commodity hedges (455 ) 532 2,718 (168 ) (306 ) (1,900 ) Total $ (127 ) $ 1,834 $ 2,718 $ (255 ) $ (416 ) $ (1,900 ) 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 December 31, 2017 , the Company's derivatives were in a $1.5 million net asset position and recorded in Other current assets. 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 December 31, 2017 , the Company had no collateral posted with its counterparties related to the derivatives. |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Treasury Stock | TREASURY STOCK On May 15, 2015 , the Company repurchased 913,200 shares of its common stock from LSF8 in a private transaction at a price per share of $21.90 , or an aggregate of approximately $20.0 million , pursuant to a stock purchase agreement dated May 11, 2015 . On September 16, 2015 , the Company repurchased an additional 1,007,500 shares of its common stock from LSF8 in a private transaction at a price per share of $19.85 , or an aggregate of approximately $20.0 million , pursuant to a stock purchase agreement dated September 10, 2015 . On March 18, 2016 , the Company repurchased an additional 900,000 shares of its common stock from LSF8 in a private transaction at a price per share of $16.10 , or an aggregate of approximately $14.5 million , pursuant to a stock purchase agreement dated March 14, 2016 . 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 the March 2016 private transaction with LSF8 described above. On August 3, 2016 , the Company announced the Board of Directors had approved an expansion of its stock repurchase program by $50 million , increasing the aggregate authorization from up to $50 million to up to $100 million . The program was also extended from the end of 2016 to the end of 2017 . On February 21, 2017 , the Board of Directors further expanded the Company's share repurchase program by an additional $100 million up to a total of $200 million of its common stock and extended the expiration date to December 31, 2018 . 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 11: Details of Treasury Stock Activity December 31, 2017 December 31, 2016 Shares Amount (a) Average Share Price (a) Shares Amount (a) Average Share Price (a) (in thousands, except share data) Beginning Balance 4,499,655 $ 88,756 $ 19.73 2,395,049 $ 48,479 $ 20.24 Repurchases on open market 2,289,162 54,601 23.85 1,204,606 25,787 21.41 Repurchase from LSF8 in private transaction — — — 900,000 14,490 16.10 Ending Balance 6,788,817 $ 143,357 $ 21.12 4,499,655 $ 88,756 $ 19.73 (a) Includes commissions paid for repurchases on open market. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION The Company grants stock options, restricted stock awards ("RSAs"), restricted stock units ("RSUs") and performance restricted stock units ("PRSUs") to eligible participants under its 2014 Stock Incentive Plan, which was approved by the Board of Directors and stock holders. The PRSUs vesting is subject to the achievement of certain performance conditions and the number of PRSUs earned could vary from 0% to 200% of the number of PRSUs awarded, depending on the Company's performance relative to a cumulative two year EBITDA target. The fair value of each RSU and PRSU is equal to the market price of the Company's common stock at the date of the grant. The RSUs granted to employees vest ratably over four years and one year for members of the board of directors from the grant date. Table 12.1: Stock Options For the Year Ended December 31, 2017 2016 2015 Stock Options Weighted Stock Options Weighted Stock Options Weighted Outstanding, beginning of year 75,456 $ 14.00 77,369 $ 14.00 142,000 $ 14.00 Granted — — — — — — Exercised (16,594 ) 14.00 (1,463 ) 14.00 (62,331 ) 14.00 Cancelled/Forfeited (3,750 ) 14.00 (450 ) 14.00 (2,300 ) 14.00 Outstanding, end of year 55,112 $ 14.00 75,456 $ 14.00 77,369 $ 14.00 Exercisable at end of year 39,688 $ 14.00 37,108 $ 14.00 19,131 $ 14.00 The weighted average exercise price of the 55,112 options vested or expected to vest as of December 31, 2017 was $14.00 . During 2017 and 2016, the total intrinsic value of options exercised was $0.2 million compared to a nominal amount for the options exercised during 2016. Table 12.2: Restricted Stock Awards, Restricted Stock Units and Performance Based Restricted Stock Units Restricted Stock Awards Restricted Stock Units Performance Restricted Stock Units Total Weighted Average Grant Date Fair Value Non-vested as of January 1, 2015 55,000 — — 55,000 $ 14.00 Granted — 71,275 46,330 117,605 21.19 Cancelled/Forfeited (3,619 ) (1,103 ) — (4,722 ) 14.00 Vested and issued (13,749 ) — — (13,749 ) 14.00 Non-vested as of December 31, 2015 37,632 70,172 46,330 154,134 19.44 Granted — 125,701 62,795 188,496 17.22 Cancelled/Forfeited (1,068 ) (2,444 ) — (3,512 ) 17.47 Vested and issued (12,329 ) (23,849 ) — (36,178 ) 18.72 Non-vested as of December 31, 2016 24,235 169,580 109,125 302,940 18.17 Granted — 100,224 49,207 149,431 23.75 Cancelled/Forfeited (2,500 ) (27,976 ) (26,897 ) (57,373 ) 20.15 Vested and issued (12,118 ) (60,259 ) (23,623 ) (96,000 ) 18.44 Non-vested as of December 31, 2017 9,617 181,569 107,812 298,998 $ 20.49 As of December 31, 2017 , 2016 and 2015 , the intrinsic value of options, restricted stock awards, RSUs and PRSUs outstanding, exercisable, and vested or expected to vest was $9.2 million , $7.7 million and $3.0 million , respectively. For the years ended December 31, 2017 , 2016 and 2015 , the Company recognized share-based compensation expenses of $2.8 million , $2.1 million and $0.7 million in expense, respectively. The expenses related to share-based compensation awards that were recorded in Selling and administrative expenses. As of December 31, 2017 , there was $3.8 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 2.2 years . Employee Stock Purchase Plan On February 18, 2015, subject to approval by the Company's stockholders, the Company adopted an Employee Stock Purchase Plan ("ESPP") enabling employees to purchase shares of the Company's common stock at a discount. On May 20, 2015, the Company's stockholders approved the ESPP at the Company's 2015 annual meeting. The ESPP authorizes the issuance of up to 600,000 shares of the Company’s common stock, but actual shares issued will depend on plan participation. Shares issued under the ESPP will reduce, on a share-for-share basis, the number of shares of the Company's common stock previously available for issuance pursuant to the Company's 2014 Stock Incentive Plan. Employees contribute to the ESPP through payroll deductions over a twelve month offering period and are limited to the lower of 10% of the employee's salary or $10,000 per employee. The purchase price of the shares is equal to the lower of 85 percent of the closing price of the Company's common stock on either the first or last trading day of a given offering period. The first offering period commenced on May 1, 2015 and a second commenced on May 1, 2016. There have been no additional offering periods after May 1, 2016. During the years ended December 31, 2017 and 2016 , expenses recognized were nominal and $0.1 million , respectively, which was recorded in Selling and administrative expenses, related to the ESPP. Additionally, during 2017 the Company's employees purchased 20,342 shares of common stock under the ESPP. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS Table 13: 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 January 1, 2015 $ (2,193 ) $ (867 ) $ (3,060 ) Other comprehensive (loss)/income before reclassifications (3,099 ) 2,718 (381 ) Amounts reclassified from AOCI — (1,900 ) (1,900 ) Net current period other comprehensive (loss)/income (3,099 ) 818 (2,281 ) Balance as of December 31, 2015 (5,292 ) (49 ) (5,341 ) Other comprehensive income before reclassifications 514 1,834 2,348 Amounts reclassified from AOCI — (416 ) (416 ) Net current period other comprehensive income 514 1,418 1,932 Balance as of December 31, 2016 $ (4,778 ) $ 1,369 $ (3,409 ) Other comprehensive income/(loss) before reclassifications 1,142 (127 ) 1,015 Amounts reclassified from AOCI — (255 ) (255 ) Net current period other comprehensive income/(loss) 1,142 (382 ) 760 Balance as of December 31, 2017 $ (3,636 ) $ 987 $ (2,649 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Table 14.1: Components of Income Tax Expense For the Year Ended December 31, 2017 2016 2015 (in thousands) Current income tax expense $ 19,980 $ 16,323 $ 5,929 Deferred tax (benefit)/expense (3,414 ) 6,504 3,407 Income tax expense $ 16,566 $ 22,827 $ 9,336 Table 14.2: Components of Income before Provision for Income Taxes by Country For the Year Ended December 31, 2017 2016 2015 (in thousands) United States $ 75,940 $ 67,128 $ 27,090 Canada 474 (277 ) (1,018 ) Income before provision for income taxes $ 76,414 $ 66,851 $ 26,072 Table 14.3: Reconciliation of Tax Expense at Statutory Tax Rate to Actual Tax Expense For the Year Ended December 31, 2017 2016 2015 (in thousands) Tax expense at statutory rate $ 26,745 $ 23,398 $ 9,124 Increase/(decrease) due to: U.S./Canadian tax rate differential (94 ) 21 (18 ) U.S. state taxes net of federal benefit 1,339 1,045 401 Non-deductible (benefit)/expense (104 ) 144 166 Domestic production activities deduction (1,870 ) (1,719 ) (356 ) Tax credits — (12 ) (147 ) Change in valuation allowance (60 ) 27 272 Tax Cuts and Jobs Act of 2017 (9,168 ) — — Other (222 ) (77 ) (106 ) Income tax expense $ 16,566 $ 22,827 $ 9,336 Statutory tax rate 35.00 % 35.00 % 35.00 % Effective tax rate 21.68 % 34.15 % 35.81 % Table 14.4: Components of Deferred Tax Assets and Liabilities As of December 31, 2017 2016 (in thousands) Deferred tax assets: Reserves and other liabilities $ 916 $ 3,220 Tax loss carryforwards 313 661 Acquisition costs and intangibles 531 498 Equity investment 883 1,503 Deferred compensation 760 877 Inventory 536 1,432 State depreciation 201 95 Other 141 83 Valuation allowance (507 ) (693 ) Total deferred tax assets $ 3,774 $ 7,676 Deferred tax liabilities: Prepaids $ 402 $ 543 Acquisition costs and intangibles 2,214 1,074 Depreciation, amortization and other 15,909 24,012 Unrealized gains on hedges 355 788 Total deferred tax liabilities 18,880 26,417 Net deferred tax liability $ 15,106 $ 18,741 On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "Act") was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on earnings of certain foreign subsidiaries that were previously deferred and the creation of new taxes on certain foreign sourced earnings. Due to the timing of the enactment and the complexity involved in applying the provisions or the Act, the Company has calculated its best estimate of the impact of the Act in its year end income tax provision in accordance with its understanding of the Act and guidance available as of the date of this filing and as a result has recorded $9.2 million reduction in income tax expense in the fourth quarter of 2017, the period in which the legislation was enacted. The provisional amount relates to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is approximately 22.7% . The provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings was zero, based on our estimate of foreign earnings. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additionally regulatory guidance may be issued, and actions the Company may take as a result of the Act. The accounting is expected to be complete when the 2017 U.S. Federal and state corporate income tax returns are filed in late 2018. The Company is subject to audit examinations at federal, state and local levels by tax authorities in those jurisdictions. In addition, the Canadian operations are subject to audit examinations at federal and provincial levels by tax authorities in those jurisdictions. The tax matters challenged by the tax authorities are typically complex; therefore, the ultimate outcome of 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. As of December 31, 2017 and 2016 the Company did not have any unrecognized tax benefits. The Company does not expect the amount of any unrecognized tax benefits to significantly increase in the next twelve months. The Company recognizes interest related to income tax matters as interest expense and penalties related to income tax matters as other non-interest expense. As of December 31, 2017 and 2016 , the Company does not have any amounts accrued for interest or penalties. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
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 years ended December 31, 2017 , 2016 and 2015 , awards that had an anti-dilutive impact on the Company's dilutive earnings per share computation excluded from the weighted average shares outstanding were nominal. Table 15: Details of Basic and Dilutive Earnings Per Share For the Year Ended December 31, 2017 2016 2015 (dollars in thousands, except for per share amounts) Net income $ 59,848 $ 44,024 $ 16,736 Weighted average number of shares outstanding - basic 38,636,152 40,605,464 43,172,528 Effect of dilutive securities: Restricted stock awards 7,827 9,018 12,081 Restricted stock units 61,099 31,200 7,000 Performance restricted stock units 47,122 3,557 3,188 Stock options 22,763 13,065 23,527 Total effect of dilutive securities 138,811 56,840 45,796 Weighted average number of shares outstanding - diluted 38,774,963 40,662,304 43,218,324 Basic earnings per share $ 1.55 $ 1.08 $ 0.39 Diluted earnings per share $ 1.54 $ 1.08 $ 0.39 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments The Company leases certain buildings and equipment. The Company's facility and equipment leases may provide for escalations of rent or rent abatements and payment of pro rata portions of building operating expenses. Minimum lease payments are recognized on a straight-line basis over the minimum lease term. The total expenses under operating leases for the years ended December 31, 2017 , 2016 and 2015 was $3.4 million , $4.1 million and $4.4 million , respectively. The Company also has non-capital purchase commitments that primarily relate to gas, gypsum, paper and other raw materials. The total amounts purchased under such commitments were $82.4 million , $68.1 million and $66.7 million for the years ended December 31, 2017 , 2016 and 2015 respectively. Table 16: Details of Future Minimum Lease Payments Due Under Noncancellable Operating Leases and Purchase Commitments Future Minimum Lease Payments Purchase Commitments (in thousands) 2018 $ 790 $ 27,153 2019 1,658 26,407 2020 48 17,853 2021 — 5,237 2022 — 5,394 Thereafter — 58,862 Total $ 2,496 $ 140,906 Contingent obligations Under certain circumstances, the Company provides letters of credit related to its natural gas and other supply purchases. As of December 31, 2017 and December 31, 2016 , the Company had outstanding letters of credit of approximately $1.6 million and $2.1 million , respectively. 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 December 31, 2017 and December 31, 2016 , 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS LTIP Payments In connection with the March, May and September 2015 secondary public offerings and concurrent May and September 2015 stock repurchases, certain officers of the Company and the estate of the Company's former CEO earned incentive payments in the aggregate amount of approximately $29.9 million under the LSF8 Gypsum Holdings, L.P. Long-Term Incentive Plan ("LTIP"). LSF8 was responsible for funding any payments under the LTIP, including those referenced above. As these payments arose out of employment with the Company, the Company recognized the payments made to the officers and the estate as an expense. The funding of the LTIP payments by LSF8 was recorded as additional paid-in capital. The $29.9 million in LTIP payments were recorded as an expense to the Company, that were tax deductible, and capital contributions by LSF8 in the first, second and third quarters of 2015. No further payments will be made under the LTIP. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
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 96.9% , 97.0% and 96.8% of the Company's revenues for the years ended December 31, 2017 , 2016 and 2015 , 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 Year Ended December 31, 2017 2016 2015 (in thousands) Net Sales: Wallboard $ 474,189 $ 447,679 $ 407,982 Other 14,974 13,696 13,700 Total net sales $ 489,163 $ 461,375 $ 421,682 Operating income: Wallboard $ 90,220 $ 87,094 $ 44,276 Other (635 ) 46 (271 ) Total operating income $ 89,585 $ 87,140 $ 44,005 Adjustments: Interest expense $ (11,788 ) $ (13,590 ) $ (16,432 ) Losses from equity investment (187 ) (736 ) (750 ) Other expense, net (1,196 ) (5,963 ) (751 ) Income before provision for income taxes $ 76,414 $ 66,851 $ 26,072 Depreciation and Amortization: Wallboard $ 45,368 $ 45,561 $ 50,150 Other 1,092 1,085 1,158 Total depreciation and amortization $ 46,460 $ 46,646 $ 51,308 Table 18.2: Details of Net Sales By Geographic Region For the Year Ended December 31, 2017 2016 2015 (in thousands) United States $ 460,032 $ 425,611 $ 387,937 Canada 29,131 35,764 33,745 Net sales $ 489,163 $ 461,375 $ 421,682 Table 18.3: Details of Assets By Geographic Region Fixed Assets Total Assets As of December 31, As of December 31, 2017 2016 2017 2016 (in thousands) United States $ 290,324 $ 304,807 $ 622,836 $ 617,050 Canada 3,679 3,031 19,098 17,699 Total $ 294,003 $ 307,838 $ 641,934 $ 634,749 |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2017 | |
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 December 31, 2017 and December 31, 2016 , 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 December 31, 2017 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 - 2017 As of December 31, 2017 Level 1 Level 2 Level 3 Balance (in thousands) Asset Interest rate swap $ — $ 2,148 $ — $ 2,148 Commodity derivatives — 11 — 11 Total assets $ — $ 2,159 $ — $ 2,159 Liabilities Interest rate swap $ — $ — $ — $ — Commodity derivatives — 613 — 613 Total liabilities $ — $ 613 $ — $ 613 Table 19.2: Fair Value Hierarchy - 2016 As of December 31, 2016 Level 1 Level 2 Level 3 Balance (in thousands) Asset Interest rate swap $ — $ 1,800 $ — $ 1,800 Commodity derivatives — 351 — 351 Total assets $ — $ 2,151 $ — $ 2,151 Liabilities Interest rate swap $ — $ — $ — $ — Commodity derivatives — — — — Total liabilities $ — $ — $ — $ — |
Quarterly Data (unaudited)
Quarterly Data (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data (unaudited) | QUARTERLY FINANCIAL INFORMATION (Unaudited) Table 20.1: Quarterly Income Statement and Other Operating Data - 2017 2017 Quarter Ended December 31 September 30 June 30 March 31 (in thousands, except earnings per share and operating data) Net sales $ 131,392 $ 116,526 $ 120,630 $ 120,615 Costs, expenses and other income: Cost of goods sold 94,432 87,952 89,817 89,624 Selling and administrative 10,389 8,867 9,193 9,304 Total costs and operating expenses $ 104,821 $ 96,819 $ 99,010 $ 98,928 Operating income 26,571 19,707 21,620 21,687 Other (expense)/income, net (563 ) 146 (135 ) (644 ) Interest expense, net (2,822 ) (2,988 ) (3,062 ) (2,916 ) Income before (losses)/income from equity method investment and benefit from/(provision for) income taxes $ 23,186 $ 16,865 $ 18,423 $ 18,127 (Losses)/income from equity method investment (158 ) (204 ) 345 (170 ) Income before benefit from/(provision for) for income taxes 23,028 16,661 18,768 17,957 Benefit from/(provision for) income taxes 1,208 (5,674 ) (6,370 ) (5,730 ) Net income $ 24,236 $ 10,987 $ 12,398 $ 12,227 Net income per share (1): Basic $ 0.64 $ 0.29 $ 0.32 $ 0.31 Diluted $ 0.64 $ 0.29 $ 0.32 $ 0.31 Other operating data: Wallboard sales volume (mmsf) 725 644 647 650 Mill net sales price 144.78 144.90 150.32 147.92 Depreciation and amortization 10,643 12,057 12,474 11,286 (1) As a result of rounding and the required method of computing shares in interim periods, the total of the quarterly earnings per share amounts may not equal the earnings per share amount of the year. Table 20.2: Quarterly Income Statement and Other Operating Data - 2016 2016 Quarter Ended December 31 September 30 June 30 March 31 (in thousands, except earnings per share and operating data) Net sales $ 118,217 $ 114,558 $ 117,115 $ 111,485 Costs, expenses and other income: Cost of goods sold 85,862 86,756 83,744 79,955 Selling and administrative 9,554 9,241 10,163 8,960 Total costs and operating expenses $ 95,416 $ 95,997 $ 93,907 $ 88,915 Operating income 22,801 18,561 23,208 22,570 Other (expense)/income, net (223 ) (5,900 ) 6 154 Interest expense, net (3,098 ) (3,146 ) (3,648 ) (3,698 ) Income before losses from equity method investment and provision for income tax $ 19,480 $ 9,515 $ 19,566 $ 19,026 Losses from equity method investment (10 ) (291 ) (240 ) (195 ) Income before provision for income taxes $ 19,470 $ 9,224 $ 19,326 $ 18,831 Provision for income taxes (6,879 ) (3,014 ) (6,604 ) (6,330 ) Net income $ 12,591 $ 6,210 $ 12,722 $ 12,501 Net income per share (1): Basic $ 0.32 $ 0.15 $ 0.31 $ 0.30 Diluted $ 0.31 $ 0.15 $ 0.31 $ 0.30 Other operating data: Wallboard sales volume (mmsf) 666 634 643 617 Mill net sales price 141.61 144.34 144.86 144.62 Depreciation and amortization 10,990 11,868 11,842 11,946 (1) As a result of rounding and the required method of computing shares in interim periods, the total of the quarterly earnings per share amounts may not equal the earnings per share amount of the year. |
Significant Accounting Polici28
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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. |
Cash | Cash Cash and cash equivalents include highly liquid investments with maturities of three months or less at the time of purchase maintained at financial institutions in the United States and Canada. At times the amounts may exceed federally insured deposit limits. The Company has not experienced any losses and does not believe it is exposed to any significant credit risk related to demand deposits. Table 2.1: Certain Cash and Non-Cash Transactions For the Year Ended December 31, 2017 2016 2015 (in thousands) Cash paid during the period for: Interest paid on term loan $ 10,000 $ 10,996 $ 13,525 Income taxes paid, net 19,836 19,105 1,870 |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses. Actual results may differ from these estimates. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income applicable to common stock by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income applicable to shares of common stock by the weighted average number of shares of common stock outstanding inclusive of any dilutive potential shares of common stock and dilutive stock options. It is assumed that all dilutive stock options were exercised at the beginning of each period and that the proceeds were used to purchase shares of common stock at the average market price during the period. |
Cost of Goods Sold and Selling and Administrative Expenses | Cost of Goods Sold and Selling and Administrative Expenses Cost of goods sold includes costs of production, depreciation, amortization of acquired intangibles, inbound freight charges for raw materials, outbound freight to customers, purchasing and receiving costs, inspection costs, warehousing at plant facilities, and internal transfer costs. Costs associated with third-party warehouses are included in selling and administrative expenses. Selling and administrative costs also include expenses for sales, marketing, legal, accounting and finance services, human resources, customer support, treasury, other general corporate services and amortization of software development cost. |
Foreign Currency Translation | Foreign Currency Translation The Company uses the U.S. dollar as its functional currency for operations in the United States and the Canadian dollar for the Company's operations in Canada. The assets and liabilities of the Company's Canadian operations are translated at the exchange rate prevailing at the balance sheet date. Related revenues and expense accounts for the Canadian operations are translated using the average exchange rate during the year. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are primarily receivables. The Company performs ongoing credit evaluations of its customers' financial condition and generally requires no collateral from its customers. The allowances for non-collection of receivables are based upon analysis of economic trends in the construction industry, detailed analysis of the expected collectability of accounts receivable that are past due and the expected collectability of overall receivables. |
Receivables | Receivables Trade receivables are recorded at net realizable value, which includes allowances for cash discounts and doubtful accounts, and are reflected net of customer rebates. The Company reviews the collectability of trade receivables on an ongoing basis. The Company reserves for trade receivables determined to be uncollectible. This determination is based on the delinquency of the account, the financial condition of the customer and the Company's collection experience. |
Inventories | Inventories Inventories are valued at the lower of cost and net realizable value. Virtually all of the Company's inventories are valued under the average cost method. Inventories include materials, labor and applicable factory overhead costs. The value of inventory is adjusted for damaged, obsolete, excess and slow-moving inventory. Net realizable value of inventory is estimated based on the impact of market trends, an evaluation of economic conditions and the value of current orders relating to the future sales of this type of inventory. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation of property, plant and equipment is computed for financial reporting purposes using the straight-line method over the estimated useful lives of the assets. These lives range from 20 to 25 years for buildings, 5 to 25 years for plant machinery, and 5 to 8 years for mobile equipment. Repair and maintenance costs are expensed as incurred. Substantially all of the Company's depreciation expenses are recorded in "Cost of goods sold" in the Statements of Operations. The Company capitalizes interest during the construction of major projects. Capitalized interest is added to the cost of the underlying assets and is depreciated over the useful lives of those assets. |
Impairment or Disposal of Long-Lived Assets | Impairment or Disposal of Long-Lived Assets The Company evaluates the recoverability of its long-lived assets in accordance with the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 360 Property, Plant and Equipment ("ASC 360"). ASC 360 requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. Such evaluations for impairment are significantly impacted by estimates of future prices for its products, capital needs, economic trends in the construction sector and other factors. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Assets to be disposed of by sale are reflected at the lower of their carrying amount or fair value less cost to sell. The Company assesses impairment of the Company's long-lived assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. As of December 31, 2017 , the Company grouped the wallboard plants as an asset group. The plants within each group were used together to generate cash flows. The Company's two joint compound plants were also grouped as an asset group. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The goodwill and intangibles reflected in the financial statements relates solely to the Acquisition. Goodwill represents the excess of costs over the fair value of identifiable assets of businesses acquired. The Company evaluates goodwill and intangible assets in accordance with ASC 350, Goodwill and Other Intangible Assets. ASC 350 requires goodwill to be either qualitatively or quantitatively assessed for impairment annually (or more frequently if impairment indicators arise) for each reporting unit. As of December 31, 2017 and 2016 , the Company had one reporting unit, wallboard, which included goodwill. The Company performs its annual impairment testing of goodwill as of October 1st of each year. The Company completed qualitative assessments as of October 1, 2017 and 2016 and determined that it was not more likely than not that the fair value of its reporting unit was less than its carrying amount. To date, no goodwill impairment losses have been recognized. Intangible assets that are deemed to have definite lives are amortized over their useful lives. The cost of internal-use software purchased or developed internally, is accounted for in accordance with ASC 350-40, Internal-Use Software. The weighted average useful life of capitalized software is 3 years . Amortization of customer relationships is done over a 15 year period using an accelerated method that reflects the expected future cash flows from the acquired customer-related intangible asset. Trademarks identified as having definite lives are amortized on a straight-line basis over the estimated useful life of 15 years. |
Fair Value Measurements | Fair Value Measurements U.S. GAAP provides a framework for measuring fair value, establishes a fair value hierarchy of the valuation techniques used to measure the fair value and requires certain disclosures relating to fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in a market with sufficient activity. The three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value is as follows: • Level 1—Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities that a Company has the ability to access; • Level 2—Inputs, other than the quoted market prices included in Level 1, which are observable for the asset or liability, either directly or indirectly; and • Level 3—Unobservable inputs for the asset or liability which is typically based on an entity's own assumptions when there is little, if any, related market data available. The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by the Company. The fair values of receivables, accounts payable, accrued costs and other current liabilities approximate the carrying values as a result of the short-term nature of these instruments. |
Environmental Remediation Liabilities | Environmental Remediation Liabilities When the Company determines that it is probable that a liability for environmental matters has been incurred, an undiscounted estimate of the required remediation costs is recorded as a liability in the financial statements, without offset of potential insurance recoveries. Costs that extend the life, increase the capacity or improve the safety or efficiency of company-owned assets or are incurred to mitigate or prevent future environmental contamination are capitalized. Other environmental costs are expensed when incurred. The Company did not have any environmental liabilities recorded as of December 31, 2017 and 2016. |
Income Taxes | Income Taxes The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes to reflect the expected future tax consequences of events recognized in the financial statements. Deferred income tax assets and liabilities are recognized by applying enacted tax rates to temporary differences that exist as of the balance sheet date which result from differences in the timing of reported taxable income between tax and financial reporting. The Company reduces the carrying amounts of deferred tax assets by a valuation allowance if, based on the available evidence, it is more likely than not that such assets will not be realized. The need to establish valuation allowances for deferred tax assets is assessed annually. In assessing the requirement for, and amount of, a valuation allowance in accordance with the more likely than not standard, the Company gives appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability and foreign source income, the duration of statutory carryforward periods, and the Company's experience with operating loss and tax credit carryforward expirations. A history of cumulative losses is a significant piece of negative evidence used in the assessment. If a history of cumulative losses is incurred for a tax jurisdiction, forecasts of future profitability are not used as positive evidence related to the realization of the deferred tax assets in the assessment. The Company recognizes the tax benefits of an uncertain tax position if those benefits are more likely than not to be sustained based on existing tax law. Additionally, the Company establishes a reserve for tax positions that are more likely than not to be sustained based on existing tax law, but uncertain in the ultimate benefit to be sustained upon examination by the relevant taxing authorities. Unrecognized tax benefits are subsequently recognized at the time the more likely than not recognition threshold is met, the tax matter is effectively settled or the statute of limitations for the relevant taxing authority to examine and challenge the tax position has expired, whichever is earlier. |
Share-Based Compensation | Share-Based Compensation The Company accounts for stock-based compensation to employees and directors based on the estimated fair value of the award generally determined on the date of grant. The associated expense, net of estimated forfeitures, is generally recognized ratably over the requisite service period, which is generally the vesting period of the award. For awards with graded vesting that only contain a service condition, the Company recognizes expense on a straight-line basis over the service period. |
Defined Contribution Pension Plans and Other Post-Retirement Benefits | Defined Contribution Pension Plans and Other Post-Retirement Benefits Subsequent to the Acquisition, the Company's employees were able to participate in a 401K defined contribution pension plan. The Company contributes funds into this plan depending on each employee's years of service and subject to certain limits. For the years ended December 31, 2017, 2016 and 2015, the Company recorded an expense of $1.8 million , $1.9 million and $1.4 million , respectively, for these contributions. |
Revenue Recognition | Revenue Recognition Revenue from the sale of gypsum products is recorded when title and ownership are transferred upon shipment of the products. Amounts billed to a customer in a sales transaction related to shipping and handling are included in "Net sales," and costs incurred for shipping and handling are classified as "Cost of goods sold" in the Consolidated Statements of Operations. The Company records estimated reductions to revenue for customer programs and incentive offerings, including promotions and other volume-based incentives, in the period in which the sale occurs. |
Derivative Instruments | Derivative Instruments The Company uses derivative instruments to manage selected commodity price and interest rate exposures. The Company does not use derivative instruments for speculative trading purposes, and typically does not hedge beyond one year. All derivative instruments must be recorded on the balance sheet at fair value. Currently, the Company is using natural gas swap contracts to manage commodity price increase exposure and interest rate swap contracts to lock a portion of the variability of the interest payments on long-term debt. The Company elected to designate these derivative instruments as cash flow hedges in accordance with ASC 815-20, Derivatives – Hedging. For derivative contracts designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is recorded to accumulated other comprehensive income, and is reclassified to earnings when the underlying forecasted transaction affects earnings. The ineffective portion of the changes in the fair value of the derivative is recorded in cost of goods sold for gas hedges and in interest expense for interest rate swaps. Gains and losses on these contracts that are designated as cash flow hedges are reclassified into earnings when the underlying forecasted transaction affect earnings. Cash flows from derivative instruments are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company reassesses the probability of the underlying forecasted transactions occurring on a quarterly basis. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted During the Period In July 2015, the FASB issued Accounting Standards Update ("ASU") 2015-11, "Inventory: Simplifying the Measurement of Inventory." This guidance applies to inventory valued at first-in, first-out (FIFO) or average cost and requires inventory to be measured at the lower of cost and net realizable value, rather than at the lower of cost or market. ASU 2015-11 was effective on a prospective basis for annual periods, including interim reporting periods within those periods, beginning after December 15, 2016. The Company values its inventory under the average cost method and thus was required to adopt the standard. The Company adopted the new standard in the first quarter of 2017. The adoption of this standard did not have a material impact on the Company's Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which introduces targeted amendments intended to simplify the accounting for stock compensation. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether the benefit reduces taxes payable in the current period. That is, off-balance sheet accounting for net operating losses stemming from excess tax benefits would no longer be required and instead such net operating losses would be recognized when they arise. Existing net operating losses that are currently tracked off-balance sheet would be recognized, net of a valuation allowance if required, through an adjustment to opening retained earnings in the period of adoption. Entities will no longer need to maintain and track an "APIC pool." The ASU also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. The amendments were effective for annual periods beginning after December 15, 2016. The Company adopted the new standard in the first quarter of 2017, which resulted in a favorable adjustment to income tax provision of $0.3 million . In January 2017, the FASB issued ASU 2017- 04, "Intangibles - Goodwill and Other." This ASU simplifies the goodwill impairment calculation by eliminating the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of today's goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value (i.e., Step 1 of today's goodwill impairment test). The standard will be applied prospectively and is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company adopted the new standard in the fourth quarter of 2017. The adoption of this standard did not have a material impact on the Company's Consolidated Financial Statements. Accounting Standards Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-9, "Revenue from Contracts with Customers (Topic 606)," which provides accounting guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which defers the effective date of ASU No. 2014-9 for all entities by one year to annual reporting periods beginning after December 15, 2017. The ASU requires retroactive application on either a full or modified basis. The Company will adopt the standard on January 1, 2018. Based on evaluation, the Company has concluded it has one revenue stream and the adoption of this new guidance will not have a material impact on its Consolidated Financial Statements. The Company is still in the process of evaluating the potential impact of additional disclosure requirements. In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the process of evaluating the impact of adoption, which is not expected to have a material impact on the Company's Consolidated Financial Statements. 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 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments." This ASU reduces existing diversity in the classification of certain cash receipts and cash payments on the statements of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. The Company does not expect the adoption of this standard to have a material impact on its Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." The new standard requires companies to recognize the income tax effects of intercompany sales or transfers of assets, other than inventory, in the income statement as income tax expense (or benefit) in the period the sales or transfer occurs. The standard requires companies to apply a modified retrospective approach with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. The provisions of this standard are effective for fiscal years beginning after December 15, 2017, and early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its Consolidated Financial Statements. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities" . 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 provisions of this standard are effective in 2019 for calendar-year public business entities and in 2020 for all other calendar-year companies. Early adoption of the standard is permitted. The Company is currently evaluating when it will adopt the ASU and the expected impact to its Consolidated Financial Statements. (u) Reclassifications Certain reclassifications of prior year information were made to conform to the 2017 presentation. These reclassifications had no material impact on the Company's Consolidated Financial Statements. |
Significant Accounting Polici29
Significant Accounting Policies (Tables) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Schedule of Cash Flow, Supplemental Disclosures | Table 2.1: Certain Cash and Non-Cash Transactions For the Year Ended December 31, 2017 2016 2015 (in thousands) Cash paid during the period for: Interest paid on term loan $ 10,000 $ 10,996 $ 13,525 Income taxes paid, net 19,836 19,105 1,870 | |
Significant Customers, as Measured by Percentage of Total Revenues/Accounts Receivable | Table 2.2: Significant Customer Net Sales as a Percentage of Total Net Sales For the Year Ended December 31, 2017 2016 2015 Lowe's 14 % 15 % 16 % Foundation Building Materials 11 % * * * Foundation Building Materials was not considered a significant customer in prior years. Table 2.3: Significant Customer Accounts Receivable as a Percentage of Total Accounts Receivable As of December 31, 2017 2016 Lowe's 25 % 32 % Foundation Building Materials 9 % * * Foundation Building Materials was not considered a significant customer in prior years. |
Receivables, Net (Tables)
Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Detail of Receivables, Net | Table 3: Details of Receivables, Net As of December 31, 2017 2016 (in thousands) Trade receivables, gross $ 39,577 $ 33,199 Allowance for cash discounts and doubtful accounts (808 ) (726 ) Receivables, net $ 38,769 $ 32,473 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Composition of Inventories | Table 4: Details of Inventories, Net As of December 31, 2017 2016 (in thousands) Finished products $ 5,893 $ 7,246 Raw materials 11,663 10,910 Supplies and other 7,326 7,083 Inventories, net $ 24,882 $ 25,239 |
Property, Plant and Equipment32
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Details | Table 5: Details of Property, Plant and Equipment, Net As of December 31, 2017 2016 (in thousands) Land $ 13,187 $ 12,925 Buildings 114,051 112,583 Plant machinery 281,786 275,010 Mobile equipment 10,366 6,721 Construction in progress 20,291 15,016 Property, plant and equipment, at cost 439,681 422,255 Accumulated depreciation (145,678 ) (114,417 ) Property, plant and equipment, net $ 294,003 $ 307,838 |
Customer Relationships and Ot33
Customer Relationships and Other Intangibles, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 As of December 31, 2017 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Customer relationships $ 116,711 $ (57,811 ) $ 58,900 $ 116,267 $ (48,243 ) $ 68,024 Purchased and internally developed software 6,226 (4,871 ) 1,355 5,322 (3,289 ) 2,033 Trademarks 14,839 (4,287 ) 10,552 14,783 (3,285 ) 11,498 Total $ 137,776 $ (66,969 ) $ 70,807 $ 136,372 $ (54,817 ) $ 81,555 |
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 December 31, 2017 (in thousands) 2018 $ 9,763 2019 8,745 2020 7,880 2021 7,154 2022 6,535 Thereafter 30,730 Total $ 70,807 |
Accrued and Other Liabilities (
Accrued and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Details of Accrued and Other Liabilities | Table 8: Details of Accrued and Other Liabilities As of December 31, 2017 2016 (in thousands) Employee-related costs $ 9,258 $ 9,595 Other taxes 938 2,088 Other 1,744 638 Accrued and other liabilities $ 11,940 $ 12,321 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Details of Debt | Table 9.1: Details of Debt As of December 31, 2017 2016 (in thousands) First Lien Credit Agreement (a) $ 271,573 $ 273,625 Less: Original issue discount (net of amortization) (1,681 ) (1,946 ) Less: Debt issuance costs (4,580 ) (5,317 ) Total debt 265,312 266,362 Less: Current portion of long-term debt (1,702 ) (1,742 ) Long-term debt $ 263,610 $ 264,620 |
Future Minimum Principal Payments Due Under the Credit Agreements | Table 9.2: Details of Future Minimum Principal Payments Due Under the Amended and Restated Credit Agreement Amount Due (in thousands) 2018 $ 2,736 2019 2,736 2020 2,736 2021 2,736 2022 2,736 Thereafter 257,893 Total Payments $ 271,573 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 As of December 31, 2017 2016 (in thousands) Assets Interest rate swap $ 2,148 $ 1,800 Commodity hedges 11 351 Total assets $ 2,159 $ 2,151 Liabilities Interest rate swap $ — $ — Commodity hedges 613 — Total liabilities $ 613 $ — |
Derivative Instruments, Gain (Loss) | Table 10.2: Gains/(losses) on Derivatives For the Year Ended December 31, 2017 2016 2015 2017 2016 2015 Gain/(loss) recognized in AOCI on derivatives (effective portion), net of tax Loss reclassified from AOCI into income (effective portion), net of tax (in thousands) Interest rate swap $ 328 $ 1,302 — $ (87 ) $ (110 ) — Commodity hedges (455 ) 532 2,718 (168 ) (306 ) (1,900 ) Total $ (127 ) $ 1,834 $ 2,718 $ (255 ) $ (416 ) $ (1,900 ) |
Treasury Stock (Tables)
Treasury Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 11: Details of Treasury Stock Activity December 31, 2017 December 31, 2016 Shares Amount (a) Average Share Price (a) Shares Amount (a) Average Share Price (a) (in thousands, except share data) Beginning Balance 4,499,655 $ 88,756 $ 19.73 2,395,049 $ 48,479 $ 20.24 Repurchases on open market 2,289,162 54,601 23.85 1,204,606 25,787 21.41 Repurchase from LSF8 in private transaction — — — 900,000 14,490 16.10 Ending Balance 6,788,817 $ 143,357 $ 21.12 4,499,655 $ 88,756 $ 19.73 (a) Includes commissions paid for repurchases on open market. |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | he RSUs granted to employees vest ratably over four years and one year for members of the board of directors from the grant date. Table 12.1: Stock Options For the Year Ended December 31, 2017 2016 2015 Stock Options Weighted Stock Options Weighted Stock Options Weighted Outstanding, beginning of year 75,456 $ 14.00 77,369 $ 14.00 142,000 $ 14.00 Granted — — — — — — Exercised (16,594 ) 14.00 (1,463 ) 14.00 (62,331 ) 14.00 Cancelled/Forfeited (3,750 ) 14.00 (450 ) 14.00 (2,300 ) 14.00 Outstanding, end of year 55,112 $ 14.00 75,456 $ 14.00 77,369 $ 14.00 Exercisable at end of year 39,688 $ 14.00 37,108 $ 14.00 19,131 $ 14.00 |
Nonvested Restricted Stock Shares Activity | Table 12.2: Restricted Stock Awards, Restricted Stock Units and Performance Based Restricted Stock Units Restricted Stock Awards Restricted Stock Units Performance Restricted Stock Units Total Weighted Average Grant Date Fair Value Non-vested as of January 1, 2015 55,000 — — 55,000 $ 14.00 Granted — 71,275 46,330 117,605 21.19 Cancelled/Forfeited (3,619 ) (1,103 ) — (4,722 ) 14.00 Vested and issued (13,749 ) — — (13,749 ) 14.00 Non-vested as of December 31, 2015 37,632 70,172 46,330 154,134 19.44 Granted — 125,701 62,795 188,496 17.22 Cancelled/Forfeited (1,068 ) (2,444 ) — (3,512 ) 17.47 Vested and issued (12,329 ) (23,849 ) — (36,178 ) 18.72 Non-vested as of December 31, 2016 24,235 169,580 109,125 302,940 18.17 Granted — 100,224 49,207 149,431 23.75 Cancelled/Forfeited (2,500 ) (27,976 ) (26,897 ) (57,373 ) 20.15 Vested and issued (12,118 ) (60,259 ) (23,623 ) (96,000 ) 18.44 Non-vested as of December 31, 2017 9,617 181,569 107,812 298,998 $ 20.49 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss)/Income by Category | Table 13: 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 January 1, 2015 $ (2,193 ) $ (867 ) $ (3,060 ) Other comprehensive (loss)/income before reclassifications (3,099 ) 2,718 (381 ) Amounts reclassified from AOCI — (1,900 ) (1,900 ) Net current period other comprehensive (loss)/income (3,099 ) 818 (2,281 ) Balance as of December 31, 2015 (5,292 ) (49 ) (5,341 ) Other comprehensive income before reclassifications 514 1,834 2,348 Amounts reclassified from AOCI — (416 ) (416 ) Net current period other comprehensive income 514 1,418 1,932 Balance as of December 31, 2016 $ (4,778 ) $ 1,369 $ (3,409 ) Other comprehensive income/(loss) before reclassifications 1,142 (127 ) 1,015 Amounts reclassified from AOCI — (255 ) (255 ) Net current period other comprehensive income/(loss) 1,142 (382 ) 760 Balance as of December 31, 2017 $ (3,636 ) $ 987 $ (2,649 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax (Expense) Benefit | Table 14.1: Components of Income Tax Expense For the Year Ended December 31, 2017 2016 2015 (in thousands) Current income tax expense $ 19,980 $ 16,323 $ 5,929 Deferred tax (benefit)/expense (3,414 ) 6,504 3,407 Income tax expense $ 16,566 $ 22,827 $ 9,336 |
Components of Income (Loss) before Income Taxes by Country | Table 14.2: Components of Income before Provision for Income Taxes by Country For the Year Ended December 31, 2017 2016 2015 (in thousands) United States $ 75,940 $ 67,128 $ 27,090 Canada 474 (277 ) (1,018 ) Income before provision for income taxes $ 76,414 $ 66,851 $ 26,072 |
Taxes Computed at U.S. Statutory Federal Income Tax Rate | Table 14.3: Reconciliation of Tax Expense at Statutory Tax Rate to Actual Tax Expense For the Year Ended December 31, 2017 2016 2015 (in thousands) Tax expense at statutory rate $ 26,745 $ 23,398 $ 9,124 Increase/(decrease) due to: U.S./Canadian tax rate differential (94 ) 21 (18 ) U.S. state taxes net of federal benefit 1,339 1,045 401 Non-deductible (benefit)/expense (104 ) 144 166 Domestic production activities deduction (1,870 ) (1,719 ) (356 ) Tax credits — (12 ) (147 ) Change in valuation allowance (60 ) 27 272 Tax Cuts and Jobs Act of 2017 (9,168 ) — — Other (222 ) (77 ) (106 ) Income tax expense $ 16,566 $ 22,827 $ 9,336 Statutory tax rate 35.00 % 35.00 % 35.00 % Effective tax rate 21.68 % 34.15 % 35.81 % |
Significant Components of Deferred Tax Assets and Deferred Tax Liabilities | Table 14.4: Components of Deferred Tax Assets and Liabilities As of December 31, 2017 2016 (in thousands) Deferred tax assets: Reserves and other liabilities $ 916 $ 3,220 Tax loss carryforwards 313 661 Acquisition costs and intangibles 531 498 Equity investment 883 1,503 Deferred compensation 760 877 Inventory 536 1,432 State depreciation 201 95 Other 141 83 Valuation allowance (507 ) (693 ) Total deferred tax assets $ 3,774 $ 7,676 Deferred tax liabilities: Prepaids $ 402 $ 543 Acquisition costs and intangibles 2,214 1,074 Depreciation, amortization and other 15,909 24,012 Unrealized gains on hedges 355 788 Total deferred tax liabilities 18,880 26,417 Net deferred tax liability $ 15,106 $ 18,741 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 years ended December 31, 2017 , 2016 and 2015 , awards that had an anti-dilutive impact on the Company's dilutive earnings per share computation excluded from the weighted average shares outstanding were nominal. Table 15: Details of Basic and Dilutive Earnings Per Share For the Year Ended December 31, 2017 2016 2015 (dollars in thousands, except for per share amounts) Net income $ 59,848 $ 44,024 $ 16,736 Weighted average number of shares outstanding - basic 38,636,152 40,605,464 43,172,528 Effect of dilutive securities: Restricted stock awards 7,827 9,018 12,081 Restricted stock units 61,099 31,200 7,000 Performance restricted stock units 47,122 3,557 3,188 Stock options 22,763 13,065 23,527 Total effect of dilutive securities 138,811 56,840 45,796 Weighted average number of shares outstanding - diluted 38,774,963 40,662,304 43,218,324 Basic earnings per share $ 1.55 $ 1.08 $ 0.39 Diluted earnings per share $ 1.54 $ 1.08 $ 0.39 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases and Purchase Commitments by Year | Table 16: Details of Future Minimum Lease Payments Due Under Noncancellable Operating Leases and Purchase Commitments Future Minimum Lease Payments Purchase Commitments (in thousands) 2018 $ 790 $ 27,153 2019 1,658 26,407 2020 48 17,853 2021 — 5,237 2022 — 5,394 Thereafter — 58,862 Total $ 2,496 $ 140,906 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Table 18.1: Segment Reporting For the Year Ended December 31, 2017 2016 2015 (in thousands) Net Sales: Wallboard $ 474,189 $ 447,679 $ 407,982 Other 14,974 13,696 13,700 Total net sales $ 489,163 $ 461,375 $ 421,682 Operating income: Wallboard $ 90,220 $ 87,094 $ 44,276 Other (635 ) 46 (271 ) Total operating income $ 89,585 $ 87,140 $ 44,005 Adjustments: Interest expense $ (11,788 ) $ (13,590 ) $ (16,432 ) Losses from equity investment (187 ) (736 ) (750 ) Other expense, net (1,196 ) (5,963 ) (751 ) Income before provision for income taxes $ 76,414 $ 66,851 $ 26,072 Depreciation and Amortization: Wallboard $ 45,368 $ 45,561 $ 50,150 Other 1,092 1,085 1,158 Total depreciation and amortization $ 46,460 $ 46,646 $ 51,308 |
Net Sales By Geographic Region | Table 18.2: Details of Net Sales By Geographic Region For the Year Ended December 31, 2017 2016 2015 (in thousands) United States $ 460,032 $ 425,611 $ 387,937 Canada 29,131 35,764 33,745 Net sales $ 489,163 $ 461,375 $ 421,682 |
Assets By Geographic Region | Table 18.3: Details of Assets By Geographic Region Fixed Assets Total Assets As of December 31, As of December 31, 2017 2016 2017 2016 (in thousands) United States $ 290,324 $ 304,807 $ 622,836 $ 617,050 Canada 3,679 3,031 19,098 17,699 Total $ 294,003 $ 307,838 $ 641,934 $ 634,749 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Table 19.1: Fair Value Hierarchy - 2017 As of December 31, 2017 Level 1 Level 2 Level 3 Balance (in thousands) Asset Interest rate swap $ — $ 2,148 $ — $ 2,148 Commodity derivatives — 11 — 11 Total assets $ — $ 2,159 $ — $ 2,159 Liabilities Interest rate swap $ — $ — $ — $ — Commodity derivatives — 613 — 613 Total liabilities $ — $ 613 $ — $ 613 Table 19.2: Fair Value Hierarchy - 2016 As of December 31, 2016 Level 1 Level 2 Level 3 Balance (in thousands) Asset Interest rate swap $ — $ 1,800 $ — $ 1,800 Commodity derivatives — 351 — 351 Total assets $ — $ 2,151 $ — $ 2,151 Liabilities Interest rate swap $ — $ — $ — $ — Commodity derivatives — — — — Total liabilities $ — $ — $ — $ — |
Quarterly Data (unaudited) (Tab
Quarterly Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Data | Table 20.1: Quarterly Income Statement and Other Operating Data - 2017 2017 Quarter Ended December 31 September 30 June 30 March 31 (in thousands, except earnings per share and operating data) Net sales $ 131,392 $ 116,526 $ 120,630 $ 120,615 Costs, expenses and other income: Cost of goods sold 94,432 87,952 89,817 89,624 Selling and administrative 10,389 8,867 9,193 9,304 Total costs and operating expenses $ 104,821 $ 96,819 $ 99,010 $ 98,928 Operating income 26,571 19,707 21,620 21,687 Other (expense)/income, net (563 ) 146 (135 ) (644 ) Interest expense, net (2,822 ) (2,988 ) (3,062 ) (2,916 ) Income before (losses)/income from equity method investment and benefit from/(provision for) income taxes $ 23,186 $ 16,865 $ 18,423 $ 18,127 (Losses)/income from equity method investment (158 ) (204 ) 345 (170 ) Income before benefit from/(provision for) for income taxes 23,028 16,661 18,768 17,957 Benefit from/(provision for) income taxes 1,208 (5,674 ) (6,370 ) (5,730 ) Net income $ 24,236 $ 10,987 $ 12,398 $ 12,227 Net income per share (1): Basic $ 0.64 $ 0.29 $ 0.32 $ 0.31 Diluted $ 0.64 $ 0.29 $ 0.32 $ 0.31 Other operating data: Wallboard sales volume (mmsf) 725 644 647 650 Mill net sales price 144.78 144.90 150.32 147.92 Depreciation and amortization 10,643 12,057 12,474 11,286 (1) As a result of rounding and the required method of computing shares in interim periods, the total of the quarterly earnings per share amounts may not equal the earnings per share amount of the year. Table 20.2: Quarterly Income Statement and Other Operating Data - 2016 2016 Quarter Ended December 31 September 30 June 30 March 31 (in thousands, except earnings per share and operating data) Net sales $ 118,217 $ 114,558 $ 117,115 $ 111,485 Costs, expenses and other income: Cost of goods sold 85,862 86,756 83,744 79,955 Selling and administrative 9,554 9,241 10,163 8,960 Total costs and operating expenses $ 95,416 $ 95,997 $ 93,907 $ 88,915 Operating income 22,801 18,561 23,208 22,570 Other (expense)/income, net (223 ) (5,900 ) 6 154 Interest expense, net (3,098 ) (3,146 ) (3,648 ) (3,698 ) Income before losses from equity method investment and provision for income tax $ 19,480 $ 9,515 $ 19,566 $ 19,026 Losses from equity method investment (10 ) (291 ) (240 ) (195 ) Income before provision for income taxes $ 19,470 $ 9,224 $ 19,326 $ 18,831 Provision for income taxes (6,879 ) (3,014 ) (6,604 ) (6,330 ) Net income $ 12,591 $ 6,210 $ 12,722 $ 12,501 Net income per share (1): Basic $ 0.32 $ 0.15 $ 0.31 $ 0.30 Diluted $ 0.31 $ 0.15 $ 0.31 $ 0.30 Other operating data: Wallboard sales volume (mmsf) 666 634 643 617 Mill net sales price 141.61 144.34 144.86 144.62 Depreciation and amortization 10,990 11,868 11,842 11,946 (1) As a result of rounding and the required method of computing shares in interim periods, the total of the quarterly earnings per share amounts may not equal the earnings per share amount of the year. |
Background and Nature of Oper46
Background and Nature of Operations - Description of Business and Acquisition (Detail) $ in Millions | Aug. 30, 2013USD ($) | Dec. 31, 2017facility |
Lone Star Fund VIII (U.S.), L.P. | Lafarge N.A. | ||
Business Acquisition [Line Items] | ||
Total purchase price | $ | $ 703 | |
Wallboard | ||
Business Acquisition [Line Items] | ||
Number of operating facilities (facility) | 3 | |
Joint Compound | ||
Business Acquisition [Line Items] | ||
Number of operating facilities (facility) | 1 |
Background and Nature of Oper47
Background and Nature of Operations - Public Offerings (Detail) - USD ($) $ / shares in Units, $ in Millions | Mar. 18, 2016 | Sep. 16, 2015 | Jun. 03, 2015 | May 15, 2015 | Mar. 18, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Repurchase from LSF8 in private transaction | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Shares repurchased (shares) | 900,000 | 1,007,500 | 913,200 | 0 | 900,000 | |||
Secondary Public Offerings | LSF8 Gypsum Holdings, L.P. | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Shares issued at public offering (shares) | 5,106,803 | 4,600,000 | 361,747 | 4,600,000 | 5,000,000 | |||
Offering price per share (usd per share) | $ 16.10 | $ 19.85 | $ 21.90 | $ 19.40 | ||||
Secondary Public Offerings | LSF8 Gypsum Holdings, L.P. | Repurchase from LSF8 in private transaction | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Shares repurchased (shares) | 900,000 | |||||||
Certain Officers and Former CEO | LSF8 Gypsum Holdings, L.P. Long-Term Incentive Plan, Earned Incentive Payment | Secondary Public Offerings | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Payments to related parties | $ 29.9 |
Significant Accounting Polici48
Significant Accounting Policies - Certain Cash and Non-Cash Transactions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Interest paid | $ 10,000 | $ 10,996 | $ 13,525 |
Income taxes paid, net | 19,836 | 19,105 | $ 1,870 |
Accounts payable for capital expenditures | $ 621 | $ 2,516 |
Significant Accounting Polici49
Significant Accounting Policies - Concentration Risk (Details) - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Lowes [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 25.00% | 32.00% | |
Lowes [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | 15.00% | 16.00% |
Foundation Building Materials [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 9.00% | ||
Foundation Building Materials [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% |
Significant Accounting Polici50
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||||
Expense on defined contribution plan | $ 1.8 | $ 1.9 | $ 1.4 | |
Favorable adjustment to income tax provision | $ 0.3 | |||
Capitalized Software | ||||
Business Acquisition [Line Items] | ||||
Intangible assets useful life | 3 years | |||
Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets amortization period | 15 years | |||
Trademarks | ||||
Business Acquisition [Line Items] | ||||
Intangible assets amortization period | 15 years | |||
Buildings | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment useful life | 20 years | |||
Buildings | Maximum | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment useful life | 25 years | |||
Plant Machinery [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment useful life | 5 years | |||
Plant Machinery [Member] | Maximum | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment useful life | 25 years | |||
Mobile Equipment [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment useful life | 5 years | |||
Mobile Equipment [Member] | Maximum | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment useful life | 8 years |
Receivables, Net - Detail of Re
Receivables, Net - Detail of Receivables, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | ||||
Trade receivables, gross | $ 39,577 | $ 33,199 | ||
Allowance for cash discounts and doubtful accounts | (808) | (726) | $ (1,988) | $ (2,308) |
Receivables, net | 38,769 | 32,473 | ||
(Release of)/provision for bad debt expense | 15 | (104) | (166) | |
Allowance for Loan and Lease Losses Write-offs, Net | 8 | (1,209) | (71) | |
Allowance for Loan and Lease Losses, Cash Discount Additions | 4,783 | 4,334 | 3,719 | |
Allowance for Loan and Lease Losses, Cash Discount Deductions | $ (4,724) | $ (4,283) | $ (3,802) |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 5,893 | $ 7,246 |
Raw materials | 11,663 | 10,910 |
Supplies and other | 7,326 | 7,083 |
Inventories, net | $ 24,882 | $ 25,239 |
Property, Plant and Equipment53
Property, Plant and Equipment, Net - Property, Plant and Equipment Details (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 439,681 | $ 422,255 |
Accumulated depreciation | (145,678) | (114,417) |
Property, plant and equipment, net | 294,003 | 307,838 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 13,187 | 12,925 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 114,051 | 112,583 |
Plant machinery | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 281,786 | 275,010 |
Mobile equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 10,366 | 6,721 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 20,291 | $ 15,016 |
Property, Plant and Equipment54
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 34.5 | $ 33.1 | $ 35.4 |
Investment in Seven Hills - Add
Investment in Seven Hills - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Capital contributions to equity method investment | $ (2,219) | $ (349) | $ (103) |
Estimated redemption value of voint venture | 8,900 | 8,300 | |
Seven Hills | Variable Interest Entity, Not Primary Beneficiary | Equity Method Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Cost of paperboard | 55,800 | $ 47,000 | $ 45,500 |
Purchase commitments | $ 26,300 |
Customer Relationships and Ot56
Customer Relationships and Other Intangibles, Net - Details of Customer Relationships and Other Intangibles, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 137,776 | $ 136,372 |
Accumulated Amortization | (66,969) | (54,817) |
Net | 70,807 | 81,555 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 116,711 | 116,267 |
Accumulated Amortization | (57,811) | (48,243) |
Net | 58,900 | 68,024 |
Purchased and internally developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 6,226 | 5,322 |
Accumulated Amortization | (4,871) | (3,289) |
Net | 1,355 | 2,033 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 14,839 | 14,783 |
Accumulated Amortization | (4,287) | (3,285) |
Net | $ 10,552 | $ 11,498 |
Customer Relationships and Ot57
Customer Relationships and Other Intangibles, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 11.9 | $ 13.5 | $ 15.9 |
Customer Relationships and Ot58
Customer Relationships and Other Intangibles, Net - Future Amortization Expense of Customer Relationships and Other Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 9,763 | |
2,019 | 8,745 | |
2,020 | 7,880 | |
2,021 | 7,154 | |
2,022 | 6,535 | |
Thereafter | 30,730 | |
Net | $ 70,807 | $ 81,555 |
Accrued and Other Liabilities59
Accrued and Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Employee-related costs | $ 9,258 | $ 9,595 |
Other taxes | 938 | 2,088 |
Other | 1,744 | 638 |
Accrued and other liabilities | $ 11,940 | $ 12,321 |
Debt - Details of Debt (Detail)
Debt - Details of Debt (Detail) - USD ($) $ in Thousands | Aug. 18, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
First Lien Credit Agreement (a) | $ 271,573 | ||
Less: Original issue discount (net of amortization) | (1,681) | $ (1,946) | |
Less: Debt issuance costs | (4,580) | (5,317) | |
Total debt | 265,312 | 266,362 | |
Less: Current portion of long-term debt | (1,702) | (1,742) | |
Long-term debt | 263,610 | 264,620 | |
Term Loan Facility | First Lien Credit Agreement | |||
Debt Instrument [Line Items] | |||
First Lien Credit Agreement (a) | $ 271,573 | $ 273,625 | |
Term Loan Facility | First Lien Credit Agreement | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Floor rate | 0.75% | 0.75% | 0.75% |
Debt, variable interest rate (as a percent) | 2.75% | 2.25% | 2.75% |
Debt - Additional Information (
Debt - Additional Information (Detail) | Dec. 06, 2017USD ($) | Feb. 21, 2017 | Aug. 18, 2016USD ($) | May 31, 2014 | Sep. 30, 2014 | Dec. 31, 2017USD ($)covenant | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||
Extinguishment of Debt, Amount | $ (2,100,000) | $ (1,400,000) | ||||||
Debt related expenses | 1,170,000 | 5,802,000 | $ 0 | |||||
Pre payment of principal for the first lien credit agreement | $ 2,052,000 | 26,375,000 | 55,000,000 | |||||
First Lien Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt related expenses | $ 3,300,000 | |||||||
Number of covenants | covenant | 1 | |||||||
Debt covenant trigger, line of credit facility amount less letters of credit threshold | $ 22,500,000 | |||||||
First Lien Credit Agreement | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Leverage ratio (no greater than) | 5 | |||||||
Amended and Restated Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance cost | $ 1,200,000 | |||||||
Decrease in basis spread, percentage | 0.25% | |||||||
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 | First Lien Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt principal amount | 275,000,000 | |||||||
Discount and debt issuance costs | 4,700,000 | $ 2,200,000 | ||||||
Discount and debt issuance costs recorded in other expense, net | $ 2,500,000 | |||||||
Pre payment of principal for the first lien credit agreement | $ 25,000,000 | $ 55,000,000 | ||||||
Effective interest rate | 4.30% | |||||||
Term Loan Facility | First Lien Credit Agreement | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, variable interest rate (as a percent) | 2.75% | 2.25% | 2.75% | |||||
Floor rate | 0.75% | 0.75% | 0.75% | |||||
Decrease in basis spread, percentage | 0.50% | |||||||
Term Loan Facility | First Lien Credit Agreement | Moody's, B2 Rating | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Decrease in basis spread, percentage | 0.25% | |||||||
Line of Credit | First Lien Credit Agreement | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from line of credit | $ 22,000,000 | $ 10,000,000 | ||||||
Line of credit facility borrowing capacity | $ 75,000,000 | |||||||
Outstanding amount | $ 0 | 0 | ||||||
Repayment amount | $ 22,000,000 | |||||||
Facility fee, basis points | 0.50% | |||||||
Remaining outstanding | $ 73,400,000 | |||||||
Line of Credit | First Lien Credit Agreement | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, variable interest rate (as a percent) | 2.25% |
Debt - Future Minimum Principal
Debt - Future Minimum Principal Payments Due Under the Credit Agreements (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,018 | $ 2,736 |
2,019 | 2,736 |
2,018 | 2,736 |
2,020 | 2,736 |
2,021 | 2,736 |
Thereafter | 257,893 |
Total Payments | $ 271,573 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 1 Months Ended | 12 Months Ended |
Sep. 30, 2016MMBTU | Dec. 31, 2017USD ($)MMBTU | |
Derivative [Line Items] | ||
Derivatives, net liability position | $ | $ 1,500,000 | |
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 | 3,540,000 | |
Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative instrument term (not beyond) | 4 years | |
Aggregate notional amount outstanding (in mmBTUs) | MMBTU | 100,000,000 | |
Average fixed rate (as a percent) | 1.323% | |
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% | |
Maximum | ||
Derivative [Line Items] | ||
Derivative instrument term (not beyond) | 1 year |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Derivative asset | $ 2,159 | $ 2,151 |
Derivative liability | 613 | 0 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative asset | 2,148 | 1,800 |
Derivative liability | 0 | 0 |
Commodity Derivatives | ||
Derivative [Line Items] | ||
Derivative asset | 11 | 351 |
Derivative liability | $ 613 | $ 0 |
Derivative Instruments - Gains
Derivative Instruments - Gains (losses) on derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in AOCI on derivatives (effective portion), net of tax | $ (127) | $ 1,834 | $ 2,718 |
Gain (loss) reclassified from AOCI into income (effective portion), net of tax | (255) | (416) | (1,900) |
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in AOCI on derivatives (effective portion), net of tax | 328 | 1,302 | 0 |
Gain (loss) reclassified from AOCI into income (effective portion), net of tax | (87) | (110) | 0 |
Commodity Derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in AOCI on derivatives (effective portion), net of tax | (455) | 532 | 2,718 |
Gain (loss) reclassified from AOCI into income (effective portion), net of tax | $ (168) | $ (306) | $ (1,900) |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) | Mar. 18, 2016 | Sep. 16, 2015 | May 15, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 21, 2017 | Aug. 03, 2016 | Nov. 04, 2015 |
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchase program authorized amount (up to) | $ 200,000,000 | $ 100,000,000 | $ 50,000,000 | ||||||
Number of common stock shares repurchased, value per share (usd per share) | $ 21.12 | $ 19.73 | $ 20.24 | ||||||
Aggregate value of common stock shares repurchased | $ 54,601,000 | $ 40,277,000 | $ 48,479,000 | ||||||
Stock repurchase program, increase in authorized amount | $ 100,000,000 | $ 50,000,000 | |||||||
Repurchase from LSF8 in private transaction | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Number of common stock shares repurchased (shares) | 900,000 | 1,007,500 | 913,200 | 0 | 900,000 | ||||
Number of common stock shares repurchased, value per share (usd per share) | $ 16.10 | $ 19.85 | $ 21.90 | $ 0 | $ 16.10 | ||||
Aggregate value of common stock shares repurchased | $ 14,500,000 | $ 20,000,000 | $ 20,000,000 | $ 0 | $ 14,490,000 |
Treasury Stock - Treasury Stock
Treasury Stock - Treasury Stock Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 18, 2016 | Sep. 16, 2015 | May 15, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Treasury Stock [Roll Forward] | ||||||
Beginning balance (shares) | 4,499,655 | 2,395,049 | ||||
Beginning balance | $ 88,756 | $ 48,479 | ||||
Shares repurchased | $ 54,601 | $ 40,277 | $ 48,479 | |||
Ending balance (shares) | 6,788,817 | 4,499,655 | 2,395,049 | |||
Ending balance | $ 143,357 | $ 88,756 | $ 48,479 | |||
Average share price (usd per share) | $ 21.12 | $ 19.73 | $ 20.24 | |||
Repurchases on open market | ||||||
Treasury Stock [Roll Forward] | ||||||
Shares repurchased (shares) | 2,289,162 | 1,204,606 | ||||
Shares repurchased | $ 54,601 | $ 25,787 | ||||
Average share price (usd per share) | $ 23.85 | $ 21.41 | ||||
Repurchase from LSF8 in private transaction | ||||||
Treasury Stock [Roll Forward] | ||||||
Shares repurchased (shares) | 900,000 | 1,007,500 | 913,200 | 0 | 900,000 | |
Shares repurchased | $ 14,500 | $ 20,000 | $ 20,000 | $ 0 | $ 14,490 | |
Average share price (usd per share) | $ 16.10 | $ 19.85 | $ 21.90 | $ 0 | $ 16.10 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | May 20, 2015 | May 01, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 11, 2016 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options outstanding (in shares) | 55,112 | 75,456 | 77,369 | 142,000 | |||
Outstanding, Weighted average exercise price (in dollars per share) | $ 14 | $ 14 | $ 14 | $ 14 | |||
Options exercises in period, intrinsic value | $ 200,000 | ||||||
Outstanding, exercisable, vested or expected to vest, intrinsic value | 9,200,000 | $ 7,700,000 | $ 3,000,000 | ||||
Compensation expense | 2,800,000 | $ 2,100,000 | $ 700,000 | ||||
Unrecognized compensation expense related to non-vested restricted stock | 3,800,000 | ||||||
Employee stock purchase program, offering period | 12 months | ||||||
Employee contribution to ESPP through payroll deduction, maximum amount per employee (percent) | 10.00% | ||||||
Employee contribution to ESPP through payroll deduction, maximum amount per employee | $ 10,000 | ||||||
Purchase price of shares on closing price under ESPP (as a percent) | 85.00% | ||||||
ESPP expense | $ 100,000 | ||||||
Restricted stock awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unearned compensation expense, weighted average remaining period | 2 years 2 months 20 days | ||||||
Minimum [Member] | Performance restricted stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of PRSUs earned | 0.00% | ||||||
Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee stock purchase program, shares | 600,000 | ||||||
Maximum | Performance restricted stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of PRSUs earned | 200.00% | ||||||
Common Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee stock purchase program, shares | 20,342 | 10,873 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Outstanding, beginning of year (in shares) | 75,456 | 77,369 | 142,000 | |
Granted (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | (16,594) | (1,463) | (62,331) | |
Cancelled/Forfeited (in shares) | (3,750) | (450) | (2,300) | |
Outstanding, end of year (in shares) | 55,112 | 75,456 | 77,369 | |
Outstanding, Weighted average exercise price (in dollars per share) | $ 14 | $ 14 | $ 14 | $ 14 |
Granted, Weighted average exercise price (in dollars per share) | 0 | 0 | 0 | |
Exercised, Weighted average exercise price (in dollars per share) | 14 | 14 | 14 | |
Canceled/Forfeited, Weighted average exercise price (in dollars per share) | $ 14 | $ 14 | $ 14 | |
Exercisable at end of year (in shares) | 39,688 | 37,108 | 19,131 | |
Exercisable at end of year, Weighted average exercise price (in dollars per share) | $ 14 | $ 14 | $ 14 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-vested at beginning of year (in shares) | 302,940 | 154,134 | 55,000 | |
Granted (in shares) | 149,431 | 188,496 | 117,605 | |
Exercised (in shares) | (57,373) | (3,512) | (4,722) | |
Cancelled/Forfeited (in shares) | (96,000) | (36,178) | (13,749) | |
Non-vested at end of year (in shares) | 298,998 | 302,940 | 154,134 | |
Non-vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 20.49 | $ 18.17 | $ 19.44 | $ 14 |
Granted, Weighted average exercise price (in dollars per share) | 23.75 | 17.22 | 21.19 | |
Exercised, Weighted average exercise price (in dollars per share) | 20.15 | 17.47 | 14 | |
Canceled/Forfeited, Weighted average exercise price (in dollars per share) | $ 18.44 | $ 18.72 | $ 14 | |
Restricted stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-vested at beginning of year (in shares) | 24,235 | 37,632 | 55,000 | |
Granted (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | (2,500) | (1,068) | (3,619) | |
Cancelled/Forfeited (in shares) | (12,118) | (12,329) | (13,749) | |
Non-vested at end of year (in shares) | 9,617 | 24,235 | 37,632 | |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-vested at beginning of year (in shares) | 169,580 | 70,172 | 0 | |
Granted (in shares) | 100,224 | 125,701 | 71,275 | |
Exercised (in shares) | (27,976) | (2,444) | (1,103) | |
Cancelled/Forfeited (in shares) | (60,259) | (23,849) | 0 | |
Non-vested at end of year (in shares) | 181,569 | 169,580 | 70,172 | |
Performance restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-vested at beginning of year (in shares) | 109,125 | 46,330 | 0 | |
Granted (in shares) | 49,207 | 62,795 | 46,330 | |
Exercised (in shares) | (26,897) | 0 | 0 | |
Cancelled/Forfeited (in shares) | (23,623) | 0 | 0 | |
Non-vested at end of year (in shares) | 107,812 | 109,125 | 46,330 |
Accumulated Other Comprehensi71
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 309,012 | $ 300,766 | $ 303,373 |
Ending Balance | 318,026 | 309,012 | 300,766 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (4,778) | (5,292) | (2,193) |
Other comprehensive income/(loss) before reclassifications | 1,142 | 514 | (3,099) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Net current period other comprehensive income/(loss) | 1,142 | 514 | (3,099) |
Ending Balance | (3,636) | (4,778) | (5,292) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 1,369 | (49) | (867) |
Other comprehensive income/(loss) before reclassifications | (127) | 1,834 | 2,718 |
Amounts reclassified from AOCI | (255) | (416) | (1,900) |
Net current period other comprehensive income/(loss) | (382) | 1,418 | 818 |
Ending Balance | 987 | 1,369 | (49) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (3,409) | (5,341) | (3,060) |
Other comprehensive income/(loss) before reclassifications | 1,015 | 2,348 | (381) |
Amounts reclassified from AOCI | (255) | (416) | (1,900) |
Net current period other comprehensive income/(loss) | 760 | 1,932 | (2,281) |
Ending Balance | $ (2,649) | $ (3,409) | $ (5,341) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Reduction in income tax expense due to Tax Cuts and Jobs Act of 2017 | $ 9,168 | $ 0 | $ 0 |
Effective rate (as a percent) | 22.70% | ||
Unrecognized tax benefits recorded | $ 0 | 0 | |
Amounts accrued for interest or penalties | $ 0 | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax (Expense) Benefit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current | $ 19,980 | $ 16,323 | $ 5,929 | ||||||||
Deferred | (3,414) | 6,504 | 3,407 | ||||||||
Total income tax (expense) benefit | $ (1,208) | $ 5,674 | $ 6,370 | $ 5,730 | $ 6,879 | $ 3,014 | $ 6,604 | $ 6,330 | $ 16,566 | $ 22,827 | $ 9,336 |
Income Taxes - Components of 74
Income Taxes - Components of Income (Loss) before Income Taxes by Country (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
USA | $ 75,940 | $ 67,128 | $ 27,090 | ||||||||
Canada | 474 | (277) | (1,018) | ||||||||
Income before provision for income taxes | $ 23,028 | $ 16,661 | $ 18,768 | $ 17,957 | $ 19,470 | $ 9,224 | $ 19,326 | $ 18,831 | $ 76,414 | $ 66,851 | $ 26,072 |
Income Taxes - Taxes Computed a
Income Taxes - Taxes Computed at U.S. Statutory Federal Income Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Taxes at the U.S. federal income tax rate | $ 26,745 | $ 23,398 | $ 9,124 | ||||||||
U.S./Canadian tax rate differential | (94) | 21 | (18) | ||||||||
U.S. state taxes net of federal benefit | 1,339 | 1,045 | 401 | ||||||||
Non-deductible expenses | (104) | 144 | 166 | ||||||||
Domestic production activities deduction | (1,870) | (1,719) | (356) | ||||||||
Tax credits | 0 | (12) | (147) | ||||||||
Valuation allowance | (60) | 27 | 272 | ||||||||
Tax Cuts and Jobs Act of 2017 | (9,168) | 0 | 0 | ||||||||
Other | (222) | (77) | (106) | ||||||||
Total income tax (expense) benefit | $ (1,208) | $ 5,674 | $ 6,370 | $ 5,730 | $ 6,879 | $ 3,014 | $ 6,604 | $ 6,330 | $ 16,566 | $ 22,827 | $ 9,336 |
Statutory tax rate | 35.00% | 35.00% | 35.00% | ||||||||
Effective rate (as a percent) | 21.68% | 34.15% | 35.81% |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Reserves and other liabilities | $ 916 | $ 3,220 |
Tax loss carryforwards | 313 | 661 |
Acquisition costs and intangibles | 531 | 498 |
Equity investment | 883 | 1,503 |
Deferred Compensation | 760 | 877 |
Inventory | 536 | 1,432 |
State depreciation | 201 | 95 |
Other | 141 | 83 |
Less valuation allowance | (507) | (693) |
Deferred tax assets, net of valuation allowance | 3,774 | 7,676 |
Deferred tax liabilities: | ||
Prepaids | 402 | 543 |
Acquisition costs and intangibles | 2,214 | 1,074 |
Depreciation, amortization and other | 15,909 | 24,012 |
Unrealized gains on hedges | 355 | 788 |
Total deferred tax liabilities | 18,880 | 26,417 |
Net deferred tax liability | $ 15,106 | $ 18,741 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 24,236 | $ 10,987 | $ 12,398 | $ 12,227 | $ 12,591 | $ 6,210 | $ 12,722 | $ 12,501 | $ 59,848 | $ 44,024 | $ 16,736 |
Weighted average number of shares outstanding- basic (shares) | 38,636,152 | 40,605,464 | 43,172,528 | ||||||||
Effect of dilutive securities: | |||||||||||
Total effect of dilutive securities (shares) | 138,811 | 56,840 | 45,796 | ||||||||
Weighted average number of shares outstanding - diluted (shares) | 38,774,963 | 40,662,304 | 43,218,324 | ||||||||
Basic earnings per share (usd per share) | $ 0.64 | $ 0.29 | $ 0.32 | $ 0.31 | $ 0.32 | $ 0.15 | $ 0.31 | $ 0.30 | $ 1.55 | $ 1.08 | $ 0.39 |
Diluted earnings per share (usd per share) | $ 0.64 | $ 0.29 | $ 0.32 | $ 0.31 | $ 0.31 | $ 0.15 | $ 0.31 | $ 0.30 | $ 1.54 | $ 1.08 | $ 0.39 |
Restricted stock awards | |||||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive securities (shares) | 7,827 | 9,018 | 12,081 | ||||||||
Restricted stock units | |||||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive securities (shares) | 61,099 | 31,200 | 7,000 | ||||||||
Performance restricted stock units | |||||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive securities (shares) | 47,122 | 3,557 | 3,188 | ||||||||
Stock options | |||||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive securities (shares) | 22,763 | 13,065 | 23,527 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 3.4 | $ 4.1 | $ 4.4 |
Letter of Credit | |||
Long-term Purchase Commitment [Line Items] | |||
Outstanding amount of letters of credit | 1.6 | 2.1 | |
Gas, Gypsum, Paper, and Other Raw Materials | |||
Long-term Purchase Commitment [Line Items] | |||
Non capital purchased under commitments | $ 82.4 | $ 68.1 | $ 66.7 |
Commitments and Contingencies79
Commitments and Contingencies - Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases and Purchase Commitments by Year (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Future Minimum Lease Payments | |
2,018 | $ 790 |
2,018 | 1,658 |
2,019 | 48 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 0 |
Total | 2,496 |
Purchase Commitments | |
2,018 | 27,153 |
2,018 | 26,407 |
2,019 | 17,853 |
2,020 | 5,237 |
2,021 | 5,394 |
Thereafter | 58,862 |
Total | $ 140,906 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
LSF8 Gypsum Holdings, L.P. Long-Term Incentive Plan, Earned Incentive Payment | Secondary Public Offerings | Certain Officers and Former CEO | |
Related Party Transaction [Line Items] | |
Incentive payments | $ 29.9 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - geographic_area | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Number of geographical areas (geographic area) | 2 | ||
Wallboard | Sales Revenue, Net [Member] | Product Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenues | 96.90% | 97.00% | 96.80% |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Sales: | |||||||||||
Net Sales | $ 131,392 | $ 116,526 | $ 120,630 | $ 120,615 | $ 118,217 | $ 114,558 | $ 117,115 | $ 111,485 | $ 489,163 | $ 461,375 | $ 421,682 |
Operating income: | |||||||||||
Operating income | 26,571 | 19,707 | 21,620 | 21,687 | 22,801 | 18,561 | 23,208 | 22,570 | 89,585 | 87,140 | 44,005 |
Adjustments: | |||||||||||
Interest expense | (2,822) | (2,988) | (3,062) | (2,916) | (3,098) | (3,146) | (3,648) | (3,698) | (11,788) | (13,590) | (16,432) |
Losses from equity investment | (158) | (204) | 345 | (170) | (10) | (291) | (240) | (195) | (187) | (736) | (750) |
Other expense, net | (563) | 146 | (135) | (644) | (223) | (5,900) | 6 | 154 | (1,196) | (5,963) | (751) |
Income before provision for income taxes | $ 23,028 | $ 16,661 | $ 18,768 | $ 17,957 | $ 19,470 | $ 9,224 | $ 19,326 | $ 18,831 | 76,414 | 66,851 | 26,072 |
Depreciation and Amortization | |||||||||||
Total depreciation and amortization | 46,460 | 46,646 | 51,308 | ||||||||
Operating Segments | Wallboard | |||||||||||
Net Sales: | |||||||||||
Net Sales | 474,189 | 447,679 | 407,982 | ||||||||
Operating income: | |||||||||||
Operating income | 90,220 | 87,094 | 44,276 | ||||||||
Depreciation and Amortization | |||||||||||
Total depreciation and amortization | 45,368 | 45,561 | 50,150 | ||||||||
Operating Segments | Other | |||||||||||
Net Sales: | |||||||||||
Net Sales | 14,974 | 13,696 | 13,700 | ||||||||
Operating income: | |||||||||||
Operating income | (635) | 46 | (271) | ||||||||
Depreciation and Amortization | |||||||||||
Total depreciation and amortization | 1,092 | 1,085 | 1,158 | ||||||||
Adjustments | |||||||||||
Adjustments: | |||||||||||
Interest expense | (11,788) | (13,590) | (16,432) | ||||||||
Losses from equity investment | (187) | (736) | (750) | ||||||||
Other expense, net | $ (1,196) | $ (5,963) | $ (751) |
Segment Reporting - Net Sales b
Segment Reporting - Net Sales by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 131,392 | $ 116,526 | $ 120,630 | $ 120,615 | $ 118,217 | $ 114,558 | $ 117,115 | $ 111,485 | $ 489,163 | $ 461,375 | $ 421,682 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 460,032 | 425,611 | 387,937 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 29,131 | $ 35,764 | $ 33,745 |
Segment Reporting - Assets by G
Segment Reporting - Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Fixed Assets | $ 294,003 | $ 307,838 |
Total Assets | 641,934 | 634,749 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Fixed Assets | 290,324 | 304,807 |
Total Assets | 622,836 | 617,050 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Fixed Assets | 3,679 | 3,031 |
Total Assets | $ 19,098 | $ 17,699 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ 2,159 | $ 2,151 |
Derivative liability | 613 | 0 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 2,159 | 2,151 |
Derivative liability | 613 | 0 |
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 | 2,159 | 2,151 |
Derivative liability | 613 | 0 |
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 | 2,148 | 1,800 |
Derivative liability | 0 | 0 |
Interest Rate Swap | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 2,148 | 1,800 |
Derivative liability | 0 | 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 | 2,148 | 1,800 |
Derivative liability | 0 | 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 | 11 | 351 |
Derivative liability | 613 | 0 |
Commodity Derivatives | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 11 | 351 |
Derivative liability | 613 | 0 |
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 | 11 | 351 |
Derivative liability | 613 | 0 |
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 |
Quarterly Data - Selected Quart
Quarterly Data - Selected Quarterly Data (Detail) $ / shares in Units, $ in Thousands, ft² in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($)ft²$ / shares$ / Item | Sep. 30, 2017USD ($)ft²$ / shares$ / Item | Jun. 30, 2017USD ($)ft²$ / shares$ / Item | Mar. 31, 2017USD ($)ft²$ / shares$ / Item | Dec. 31, 2016USD ($)ft²$ / shares$ / Item | Sep. 30, 2016USD ($)ft²$ / shares$ / Item | Jun. 30, 2016USD ($)ft²$ / shares$ / Item | Mar. 31, 2016USD ($)ft²$ / shares$ / Item | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | |
Selected Quarterly Financial Data [Line Items] | |||||||||||
Net sales | $ 131,392 | $ 116,526 | $ 120,630 | $ 120,615 | $ 118,217 | $ 114,558 | $ 117,115 | $ 111,485 | $ 489,163 | $ 461,375 | $ 421,682 |
Cost of goods sold | 94,432 | 87,952 | 89,817 | 89,624 | 85,862 | 86,756 | 83,744 | 79,955 | 361,825 | 336,317 | 312,840 |
Selling and administrative | 10,389 | 8,867 | 9,193 | 9,304 | 9,554 | 9,241 | 10,163 | 8,960 | 37,753 | 37,918 | 34,891 |
Total costs and operating expenses | 104,821 | 96,819 | 99,010 | 98,928 | 95,416 | 95,997 | 93,907 | 88,915 | 399,578 | 374,235 | 377,677 |
Operating income | 26,571 | 19,707 | 21,620 | 21,687 | 22,801 | 18,561 | 23,208 | 22,570 | 89,585 | 87,140 | 44,005 |
Other expense, net | (563) | 146 | (135) | (644) | (223) | (5,900) | 6 | 154 | (1,196) | (5,963) | (751) |
Interest expense | (2,822) | (2,988) | (3,062) | (2,916) | (3,098) | (3,146) | (3,648) | (3,698) | (11,788) | (13,590) | (16,432) |
Income before losses from equity method investment and provision for income tax | 23,186 | 16,865 | 18,423 | 18,127 | 19,480 | 9,515 | 19,566 | 19,026 | 76,601 | 67,587 | 26,822 |
Losses from equity method investment | (158) | (204) | 345 | (170) | (10) | (291) | (240) | (195) | (187) | (736) | (750) |
Income before provision for income taxes | 23,028 | 16,661 | 18,768 | 17,957 | 19,470 | 9,224 | 19,326 | 18,831 | 76,414 | 66,851 | 26,072 |
Provision for income taxes | 1,208 | (5,674) | (6,370) | (5,730) | (6,879) | (3,014) | (6,604) | (6,330) | (16,566) | (22,827) | (9,336) |
Net income | $ 24,236 | $ 10,987 | $ 12,398 | $ 12,227 | $ 12,591 | $ 6,210 | $ 12,722 | $ 12,501 | $ 59,848 | $ 44,024 | $ 16,736 |
Net income per share: | |||||||||||
Basic (usd per share) | $ / shares | $ 0.64 | $ 0.29 | $ 0.32 | $ 0.31 | $ 0.32 | $ 0.15 | $ 0.31 | $ 0.30 | $ 1.55 | $ 1.08 | $ 0.39 |
Diluted (usd per share) | $ / shares | $ 0.64 | $ 0.29 | $ 0.32 | $ 0.31 | $ 0.31 | $ 0.15 | $ 0.31 | $ 0.30 | $ 1.54 | $ 1.08 | $ 0.39 |
Net Sales Price | $ / Item | 144.78 | 144.90 | 150.32 | 147.92 | 141.61 | 144.34 | 144.86 | 144.62 | |||
Depreciation, Depletion and Amortization | $ 10,643 | $ 12,057 | $ 12,474 | $ 11,286 | $ 10,990 | $ 11,868 | $ 11,842 | $ 11,946 | |||
Wallboard | |||||||||||
Net income per share: | |||||||||||
Wallboard sales volume (msf) | ft² | 725 | 644 | 647 | 650 | 666 | 634 | 643 | 617 |