Foundation Building Materials (FBM) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 05, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Foundation Building Materials, Inc.
Entity Central Index Key	1,688,941
Trading Symbol	FBM
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock Shares Outstanding (in shares)		42,865,407
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 8,793	$ 28,552
Accounts receivable—net of allowance for doubtful accounts of $5,258 at March 31, 2017 and $5,685 at December 31, 2016	274,474	261,686
Other receivables	40,430	52,845
Inventories	160,498	157,991
Prepaid expenses and other current assets	11,751	12,516
Total current assets	495,946	513,590
Property and equipment, net	145,540	144,387
Intangibles assets, net	207,477	215,381
Goodwill	446,041	437,935
Other assets	8,500	9,692
Total assets	1,303,504	1,320,985
Current liabilities:
Accounts payable	128,527	119,788
Accrued payroll and employee benefits	19,203	26,956
Accrued taxes	8,915	9,151
Other current liabilities	34,270	49,613
Total current liabilities	190,915	205,508
Asset-based credit facility	42,000	208,469
Long-term portion of notes payable, net	527,632	525,487
Tax receivable agreement	203,837	0
Deferred income taxes, net	29,119	26,867
Other liabilities	12,543	26,138
Total liabilities	1,006,046	992,469
Commitments and contingencies
Stockholders' equity:
Preferred stock	0	0
Common stock issued and outstanding	13	0
Additional paid-in capital	329,704	364,815
Accumulated deficit	(32,368)	(36,296)
Accumulated other comprehensive income (loss)	109	(3)
Total stockholders' equity	297,458	328,516
Total liabilities and stockholders' equity	$ 1,303,504	$ 1,320,985

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable net of allowance for doubtful accounts	$ 5,258	$ 5,685
Preferred stock par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock shares authorized (in shares)	10,000,000	10,000,000
Preferred stock shares issued (in shares)	0	0
Preferred stock shares outstanding (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized (in shares)	190,000,000	190,000,000
Common stock shares issued (in shares)	42,865,407	29,974,239
Common stock shares outstanding (in shares)	42,865,407	29,974,239

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Net sales	$ 479,457	$ 244,605
Cost of goods sold (exclusive of amortization and depreciation)	339,546	172,360
Gross profit	139,911	72,245
Operating expenses:
Selling, general and administrative expenses	113,062	56,771
Depreciation and amortization	18,396	9,613
Total operating expenses	131,458	66,384
Income from operations	8,453	5,861
Interest expense	(15,249)	(8,036)
Other income, net	13,289	10
Income (loss) before income taxes	6,493	(2,165)
Income tax expense (benefit)	2,564	(904)
Net income (loss)	$ 3,929	$ (1,261)
Earnings (loss) per share data:
Basic (in dollars per share)	$ 0.11	$ (0.04)
Diluted (in dollars per share)	$ 0.11	$ (0.04)
Weighted average shares outstanding:
Basic (in shares)	37,273,156	29,974,239
Diluted (in shares)	37,273,156	29,974,239

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 3,929	$ (1,261)
Other comprehensive income (loss):
Foreign currency translation adjustment	573	0
Unrealized loss on derivative, net of taxes of $296	(461)	0
Total other comprehensive income	112	0
Total comprehensive income (loss)	$ 4,041	$ (1,261)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net of tax effect on unrealized loss on derivatives	$ 296	$ 296

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income (loss)	$ 3,929	$ (1,261)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	7,131	2,521
Amortization of intangible assets	11,265	7,092
Amortization of debt issuance costs and debt discount	2,399	892
Inventory fair value adjustment	71	990
Stock-based compensation	1,553	0
Provision for doubtful accounts	135	586
Unrealized gain on derivative instruments, net	(13,219)	0
Loss on disposal of property and equipment	152	100
Deferred income taxes	2,543	(450)
Change in assets and liabilities, net of effects of acquisitions:
Accounts receivable	(11,273)	(5,129)
Other receivables	12,595	10,580
Inventories	(2,137)	(3,542)
Prepaid expenses and other current assets	787	(526)
Other assets	158	117
Accounts payable	8,249	15,467
Accrued payroll and employee benefits	(7,793)	(2,461)
Accrued taxes	(238)	0
Other liabilities	(15,424)	287
Net cash provided by operating activities	883	25,263
Cash flows from investing activities:
Capital expenditures	(7,572)	(3,185)
Proceeds from the disposal of fixed assets	98	0
Acquisitions	(13,195)	0
Net cash used in investing activities	(20,669)	(3,185)
Cash flows from financing activities:
Proceeds from asset-based credit facility	114,500	0
Repayments of asset-based credit facility	(281,032)	(15,000)
Principal payments on long-term debt	0	(613)
Principal repayment of capital lease obligations	(691)	0
Issuance of common stock	164,189	0
Capital contributions	2,997	0
Net cash used in financing activities	(37)	(15,613)
Effect of exchange rate changes on cash	64	0
Net (decrease) increase in cash	(19,759)	6,465
Cash and cash equivalents at beginning of period	28,552	10,662
Cash and cash equivalents at end of period	8,793	17,127
Supplemental disclosures of cash flow information:
Cash paid during the period for income taxes	39	302
Cash paid during the period for interest	25,308	7,068
Supplemental disclosures of non-cash investing and financing activities:
Change in fair value of derivatives, net of tax	461	0
Assets acquired under capital lease	378	0
Goodwill adjustment for purchase price allocation	723	0
Tax receivable agreement	$ 203,837	$ 0

Organization and Nature of the

Organization and Nature of the Business	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Nature of the Business	Organization and Nature of the Business Foundation Building Materials, Inc. (the "Company") was formed on October 27, 2016 (inception). The initial stockholder of the Company was LSF9 Cypress Parent 2 LLC, ("Parent 2") which held all of the Company's authorized, issued and outstanding shares of common stock. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany balances and transactions have been eliminated. The Company has two reportable segments, Specialty Building Products and Mechanical Insulation. Resources are allocated and performance is assessed by the Company's CEO, who is the Chief Operating Decision Maker ("CODM"). Reorganization On February 8, 2017, FBM Alpha LLC, (formerly known as LSF9 Cypress Parent, LLC), transferred its wholly owned direct subsidiary, FBM Beta LLC, (formerly known as LSF9 Cypress Holdings, LLC), and indirectly FBM Finance, Inc. to the Company, thereby transferring the business for which historical financial information is included in these results of operations, to be indirectly held by the Company (the "Reorganization"). Initial Public Offering Following the Reorganization, on February 15, 2017 , the Company completed an initial public offering ("IPO") in which it issued 12,800,000 shares of common stock at a public offering price of $14.00 per share. The common stock began trading on the New York Stock Exchange on February 10, 2017 under the ticker symbol "FBM." After underwriting discounts, commissions and estimated expenses, the net proceeds to the Company from the IPO were approximately $161.3 million . The Company used these net proceeds to repay $161.3 million of borrowings outstanding under its asset-based lending credit facility (the "ABL Facility"). The proceeds of $161.3 million were recorded in equity, with approximately $13,000 recorded for the par value of the common stock and the remaining amount recorded in additional paid-in capital. The underwriters exercised their option to purchase an additional 1,920,000 shares of common stock from Parent 2 and those shares were purchased on February 24, 2017 . The Company did not receive any proceeds from the sale of shares by Parent 2. Earnings (Loss) Per Share Basic earnings (loss) per share represents net income (loss) for the period, divided by the weighted average number of common shares outstanding for the period. The following are the common share amounts used to compute the basic and diluted earnings (loss) per share for each period: Three Months Ended March 31, 2017 2016 Weighted average shares used in basic computations 37,273,156 29,974,239 Dilutive effect of stock options and restricted stock units — — Weighted average shares used in diluted computations 37,273,156 29,974,239 For the three months ended March 31, 2016, there were no unvested equity securities outstanding, therefore, the basic and diluted share count were the same. For the three months ended March 31, 2017, there were approximately 108,000 shares not included in the computation of diluted weighted average common shares because their effect would have been antidilutive.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation with respect to the interim financial statements, have been included. The results of operations for interim periods are not necessarily indicative of the results for full fiscal years. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended December 31, 2016, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 28, 2017 (the "2016 10-K"). Recently Adopted Accounting Standards In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2015-11, Simplifying the Measurement of Inventory , which applies to inventory valued at first-in, first-out or average cost. ASU 2015-11 requires inventory to be measured at the lower of cost and net realizable value (i.e., selling price less reasonable completion and disposal costs), rather than at the lower of cost or market. ASU 2015-11 is effective on a prospective basis for annual periods beginning after December 15, 2016 , and interim periods within those fiscal years. The Company adopted this guidance on January 1, 2017 and the adoption thereof did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting . This ASU is intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements, including the income tax effects of share-based payments and accounting for forfeitures. This guidance will require recognizing the Company’s excess tax benefits on share-based compensation arrangements in the tax provision, instead of in equity as under the current guidance. In addition, these amounts will be classified as an operating activity in the statement of cash flows rather than a financing activity. The amendments in this update are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this guidance on January 1, 2017 and the adoption thereof did not have a material impact on the Company's consolidated financial statements. However, the adoption of this guidance will result in excess tax benefits or deficiencies related to the exercise of share-based compensation awards to employees being included in the determination of the Company’s income tax provision, which could significantly impact the Company’s consolidated net income in future periods. As of March 31, 2017, the Company is unable to quantify the expected financial impact to its future periods' consolidated net income. Recently Issued Accounting Standards In May 2014 , the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 amends the guidance for revenue recognition to replace numerous, industry-specific requirements. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The ASU also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows arising from contracts with customers. Additional ASUs have been issued to amend or clarify the guidance in this ASU as follows: • ASU No. 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients was issued in May 2016. ASU No. 2016-12 amends the new revenue recognition standard to clarify the guidance on assessing collectability, presenting sales taxes, measuring noncash consideration, and certain transition matters. • ASU No. 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing was issued in April 2016. ASU No. 2016-10 addresses implementation issues identified by the FASB-International Accounting Standards Board Joint Transition Resource Group for Revenue Recognition. • ASU No. 2016-08 Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) was issued in March 2016. ASU No. 2016-08 requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. The guidance in these ASUs is effective for annual reporting periods beginning after December 15, 2017 , including interim periods within that reporting period, and early adoption is permitted for interim and annual periods beginning after December 15, 2016 . The Company is in the early stages of evaluating the amended revenue recognition guidance in Topic 606. The evaluation has yet to progress to a stage where there is sufficient information for a preliminary position of the impact on the Company’s consolidated financial statements. Therefore, the Company is unable at this time to provide (i) qualitative financial statement disclosures of the potential impact that this standard will have on its financial statements when adopted, (ii) a description of the effects of the accounting policies it expects to apply, (iii) a comparison to its current revenue recognition policies and (iv) a method for adoption. In January 2016, the FASB issued ASU No. 2016-01, Financial Instrum ents – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The updated guidance enhances the reporting model for financial instruments by modifying how entities measure and recognize equity investments and present changes in the fair value of financial liabilities, and by simplifying the disclosure guidance for financial instruments. The amendments in this update are effective for fiscal years beginning after December 15, 2017. The amendments in this update should be applied prospectively. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In February 2016 , the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU No. 2016-02 establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either "finance" or "operating," with classification affecting the pattern of expense recognition in the income statement. This update requires a modified retrospective transition as of the beginning of the earliest comparative period presented in the financial statements. This update is effective for fiscal years beginning after December 15, 2018 , and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In August 2016 , the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU No. 2016-15 amended the existing accounting standards for the statement of cash flows. The amendments provide guidance on eight classification issues related to the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017 , and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates the requirement to calculate the implied fair value of goodwill but rather require an entity to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

Derivatives and Hedging Activit

Derivatives and Hedging Activities	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Hedging Activities	Derivatives and Hedging Activities The Company uses derivatives to manage selected foreign exchange exposures for its investments in foreign subsidiaries. In general, the types of risks hedged are those relating to the variability of future earnings and cash flows caused by movements in foreign currency exchange rates and interest rates. The Company documents its risk management strategy and hedge effectiveness at the inception of and during the term of each hedge. Net Investment Hedge As of March 31, 2017 and December 31, 2016, the amount of notional foreign exchange contracts outstanding was approximately $88.0 million. There is no significant credit risk associated with the potential failure of any counterparty to perform under the terms of any derivative financial instrument. The net investment hedge is measured at fair value within the consolidated balance sheet either as an asset or a liability. At March 31, 2017 and December 31, 2016, the fair value of the derivative instrument was $1.7 million and $2.4 million, respectively and was recorded in non-current other assets. The Company recognized a loss of $0.5 million , net of taxes, for the three months ended March 31, 2017, recorded in comprehensive income (loss) related to the net investment hedge. The Company also recorded the ineffective portion of the loss relating to the net investment hedge for the three months ended March 31, 2017 totaling $67,000 in other income. The Company did not have any foreign exchange contracts during the three months ended March 31, 2016. Embedded Derivative The Company has the option to prepay its $575.0 million Senior Secured Notes due 2021 (the "Notes") at any time prior to August 15, 2018 at a price equal to 100% of the principal amount, plus the applicable premium and any accrued and unpaid interest and redemption on and after August 15 of the subsequent years are subject to the applicable premium, in each case as set forth in the indenture governing the Notes. Prior to August 15, 2018 , in the event of equity offerings, the Company has the option to prepay 40% of the Notes using the proceeds from such offering within 180 days from closing of the offering. However, 50% of the principal needs to remain outstanding. The redemption price is determined at 108.25% plus accrued and unpaid interest. The optional prepayment subsequent to an equity offering constitutes an embedded derivative and is bifurcated from the debt host and accounted for separately. The embedded derivative is recorded at fair value at inception and on an ongoing basis, with any changes in fair value from inception recorded in earnings. The fair value of the embedded derivative at March 31, 2017 and December 31, 2016 was $0 and $13.2 million , respectively. The fair value of the embedded derivative was included in the balance sheet as non-current other liabilities. The change in fair value in the amount of $13.2 million for the three months ended March 31, 2017 was included in the statements of operation in other income. The Company did not have an embedded derivative during the three months ended March 31, 2016 as the Notes were issued in August 2016. See Note 7, Asset-Based Credit Facility and Senior Notes Payable, to the Company's Consolidated Financial Statements included in the 2016 10-K for a more detailed discussion of the Notes.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Acquisitions	Acquisitions The Company accounts for its acquisitions under the acquisition method, and accordingly the results of operations of acquired entities are included in the Company’s condensed consolidated financial statements from the acquisition date. The purchase price is allocated to the assets acquired based on estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill. Purchase accounting adjustments associated with the intangible asset valuations have been recorded as of March 31, 2017. The fair value of acquired intangible assets, primarily related to tradenames and customer relationships, was estimated by applying an income approach. That measure is based on significant Level 3 inputs not observable in the market. Key assumptions were developed based on the Company’s historical experience, future projections and comparable market data include future cash flows, long-term growth rates, royalty rates, attrition rates and discount rates. Dominion Interior Supply On January 1, 2017, the Company acquired the operations and certain assets of Dominion Interior Supply Corporation and Dominion Interior Supply of Roanoke LLC (collectively "Dominion Interior Supply") for a total purchase price of $13.1 million , subject to normal working capital adjustments. Dominion Interior Supply was a supplier of suspended ceiling systems to commercial and residential developers in the Virginia and North Carolina areas. The acquisition was accounted for as a business combination under the acquisition method of accounting. Accordingly, the assets acquired and liabilities assumed were recorded at fair value with the remaining purchase price recorded as goodwill. The Company estimated the fair value of the assets acquired and liabilities assumed as part of the business combination, including working capital, property and equipment, and customer relationships. The purchase price allocation for the acquisition is preliminary and subject to adjustment as additional information is obtained about facts and circumstances that existed as of the acquisition date. (in thousands) Dominion Interior Supply Assets acquired: Accounts receivable $ 1,425 Other receivables 88 Inventories 1,119 Prepaids and other current assets 12 Property and equipment 476 Goodwill 7,192 Intangible assets 3,300 Other assets 5 Total assets acquired: 13,617 Liabilities assumed: Accounts payable (396 ) Accrued expenses and other current liabilities (26 ) Total liabilities assumed (422 ) Total net assets acquired $ 13,195 The excess of purchase price over the fair value amounts assigned to the assets acquired and liabilities assumed represents the goodwill amount resulting from the acquisition. Goodwill attributable to the acquisition has been recorded as a non-current asset and is not amortized, but is subject to review at least on an annual basis for impairment. Goodwill recognized was primarily attributable to expected operating efficiencies and expansion opportunities in the business acquired. Goodwill and intangible assets recognized from the acquisition are expected to be deductible for tax purposes. The acquisition was treated as an asset purchase for tax purposes. Generally, the most significant intangible asset acquired is customer relationships.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) consists of cumulative unrealized foreign currency translation adjustments and unrealized gains on certain derivative instruments. During the three months ended March 31, 2017, there were no reclassifications out of accumulated other comprehensive loss. The components of accumulated other comprehensive loss for the three months ended March 31, 2017 were as follows (in thousands): Cumulative unrealized foreign currency translation losses Unrealized gain on derivative, net of tax Total Balance at December 31, 2016 $ (1,464 ) $ 1,461 $ (3 ) Other comprehensive income (loss) 573 (461 ) 112 Balance at March 31, 2017 $ (891 ) $ 1,000 $ 109

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets The change in goodwill from December 31, 2016 to March 31, 2017 consisted of the following (in thousands): Carrying Value Balance at December 31, 2016 $ 437,935 Goodwill acquired 7,192 Purchase price allocation from prior periods 723 Impact of foreign exchange rates 191 Balance at March 31, 2017 $ 446,041 As of March 31, 2017, goodwill allocated to the Specialty Building Products and Mechanical Insulation segments was $440.7 million and $5.3 million , respectively. As of December 31, 2016, goodwill allocated to the Specialty Building Products and Mechanical Insulation segments was $432.6 million and $5.3 million , respectively. Identifiable intangible assets that are separable and have determinable useful lives are valued separately and amortized over their benefit period. The following is the gross carrying value and accumulated amortization of the Company’s identifiable intangible assets as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade names $ 15,980 $ (4,887 ) $ 11,093 $ 15,980 $ (4,097 ) $ 11,883 Customer relationships 239,056 (45,941 ) 193,115 235,690 (35,550 ) 200,140 Other intangible assets 3,850 (581 ) 3,269 3,852 (494 ) 3,358 $ 258,886 $ (51,409 ) $ 207,477 $ 255,522 $ (40,141 ) $ 215,381

Tax Receivable Agreement Liabil

Tax Receivable Agreement Liability	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Tax Receivable Agreement	Tax Receivable Agreement Liability In connection with the IPO, the Company entered into a tax receivable agreement ("TRA") with Parent 2 that provides for the payment by the Company to Parent 2 of 90% of the amount of cash savings, if any, in U.S. federal, state, local and non-U.S. income tax that the Company realizes (or in some circumstances are deemed to realize) as a result of the utilization of the Company and the Company’s subsidiaries’ (i) depreciation and amortization deductions, and any offset to taxable income and gain or increase to taxable loss, resulting from the tax basis the Company has in its assets at the consummation of the IPO, (ii) net operating losses, (iii) tax credits and (iv) certain other tax attributes. As of March 31, 2017, the Company recorded an undiscounted estimated liability of $203.8 million with a corresponding offset to additional paid-in capital for the TRA. At the end of each reporting period, any changes in the Company's estimate of the liability will be recorded in the consolidated statement of operations as a component of other income (expense). The timing and amount of future tax benefits associated with the TRA are subject to change, and additional payments may be required which could be materially different from the current estimated liability. The TRA will remain in effect until all tax benefits have been used or expired, unless the agreement is terminated early. Income Taxes For the three months ended March 31, 2017 and 2016, the effective tax rates were 39.5% and 41.8% , respectively. The variance from statutory tax rates is primarily due to state income taxes.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies The Company is involved in certain legal actions arising in the ordinary course of business. Management believes that such litigation and claims will be resolved without material effect on the Company’s consolidated financial position. The Company regularly assesses such matters to determine the degree of probability that the Company will incur a material loss as a result of such matters as well as the range of possible loss. An estimated loss contingency is accrued in the Company’s financial statements if it is probable the Company will incur a loss and the amount of the loss can be reasonably estimated. The Company reviews all claims, proceedings and investigations at least quarterly and establishes or adjusts any accruals for such matters to reflect the impact of negotiations, settlements, advice of legal counsel and other information and events pertaining to a particular matter. All legal costs associated with such matters are expensed as incurred. Historically, the claims, proceedings and investigations brought against the Company, individually and in the aggregate, have not had a material adverse effect on the consolidated results of operations, cash flows or financial position of the Company. As of March 31, 2017 , there were no proceedings or litigation involving the Company that management believes would have a material adverse impact on its business, financial position, results of operations, or cash flows.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company’s financial instruments consist primarily of cash and cash equivalents, trade and other receivables, derivative instruments, accounts payable, long-term debt and accrued liabilities. The carrying value of the Company’s accounts receivable, trade payables, the ABL Facility and accrued liabilities approximates fair value due to their short-term maturity. The Company may adjust the carrying amount of certain nonfinancial assets to fair value on a non-recurring basis when they are impaired. The estimated carrying amount and fair value of the Company’s financial instruments and other assets and liabilities measured and recorded at fair value on a recurring basis at March 31, 2017 is as follows (in thousands): Fair Value Measurements at March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Recurring: Non-current asset (liabilities) Derivative asset (Note 3) $ — $ 1,687 $ — $ 1,687 The estimated carrying amount and fair value of the Company’s financial instruments and other assets and liabilities measured and recorded at fair value on a recurring basis at December 31, 2016 is as follows (in thousands): Fair Value Measurements at December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Recurring: Non-current asset (liabilities) Derivative asset (Note 3) $ — $ 2,475 $ — $ 2,475 Derivative liability (Note 3) $ — $ (13,250 ) $ — $ (13,250 ) The fair values of derivative assets and liabilities are determined using quantitative models that utilize multiple market inputs including interest rates and exchange rates to generate continuous yield or pricing curves and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. The fair values of derivative assets and liabilities include adjustments for market liquidity, counterparty credit quality and other instrument-specific factors, where appropriate. In addition, the Company incorporates within its fair value measurements a valuation adjustment to reflect the credit risk associated with the net position. Positions are netted by counterparties, and fair value for net long exposures is adjusted for counterparty credit risk while the fair value for net short exposures is adjusted for the Company’s own credit risk. The estimated carrying amount and fair value of the Company’s financial instruments and liabilities for which fair value is only disclosed is as follows (in thousands): Fair Value Measurements at March 31, 2017 Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Senior secured notes $ 527,632 $ — $ 615,618 $ — $ 615,618

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Tax Receivable Agreement Liability In connection with the IPO, the Company entered into a tax receivable agreement ("TRA") with Parent 2 that provides for the payment by the Company to Parent 2 of 90% of the amount of cash savings, if any, in U.S. federal, state, local and non-U.S. income tax that the Company realizes (or in some circumstances are deemed to realize) as a result of the utilization of the Company and the Company’s subsidiaries’ (i) depreciation and amortization deductions, and any offset to taxable income and gain or increase to taxable loss, resulting from the tax basis the Company has in its assets at the consummation of the IPO, (ii) net operating losses, (iii) tax credits and (iv) certain other tax attributes. As of March 31, 2017, the Company recorded an undiscounted estimated liability of $203.8 million with a corresponding offset to additional paid-in capital for the TRA. At the end of each reporting period, any changes in the Company's estimate of the liability will be recorded in the consolidated statement of operations as a component of other income (expense). The timing and amount of future tax benefits associated with the TRA are subject to change, and additional payments may be required which could be materially different from the current estimated liability. The TRA will remain in effect until all tax benefits have been used or expired, unless the agreement is terminated early. Income Taxes For the three months ended March 31, 2017 and 2016, the effective tax rates were 39.5% and 41.8% , respectively. The variance from statutory tax rates is primarily due to state income taxes.

Segments

Segments	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segments	Segments Segment information is presented in accordance with Accounting Standards Codification ("ASC") 280, Segment Reporting , which establishes standards for reporting information about operating segments. It also establishes standards for related disclosures about customers, products and geographic areas. Operating segments are defined as components of an enterprise that engage in business activities that earn revenues, incur expenses and prepare separate financial information that is evaluated regularly by the Company’s CODM in order to allocate resources and assess performance. Resources are allocated and performance is assessed by the CODM. Based on the provisions of ASC 280, the Company has defined its operating segments by considering management structure and product offerings. This evaluation resulted in the following reportable segments: • Specialty Building Products ("SBP")—SBP distributes wallboard and accessories, metal framing, suspended ceiling systems and other products. Other products include stucco and exterior insulation and finish systems, as well as complementary offerings, such as tools, safety accessories and fasteners. The primary end markets served are new non-residential, new residential and non-residential repair and remodel construction markets. • Mechanical Insulation ("MI")—MI distributes and fabricates commercial and industrial insulation for pipes and mechanical systems and the primary end markets served are new non-residential construction, non-residential repair and remodel construction and industrial markets. In addition to the two reportable segments, the Company’s consolidated results include corporate activities, which include depreciation and amortization. For purposes of evaluation under these segment reporting principles, the CODM assesses the Company’s ongoing performance based on the periodic review of net sales and gross profit. The Company has not disclosed asset information by segment as its CODM does not use such information for purposes of allocating resources and assessing performance. The following tables present net sales and gross profit for each reportable segment (in thousands): Three Months Ended March 31, 2017 2016 Net Sales Gross Profit Net Sales Gross Profit SBP $ 418,463 $ 122,426 $ 244,605 $ 72,245 MI 60,994 17,485 — — Consolidated $ 479,457 $ 139,911 $ 244,605 $ 72,245 Total gross profit 139,911 72,245 Total operating expenses (131,458 ) (66,384 ) Interest expense (15,249 ) (8,036 ) Other income, net 13,289 10 Income (loss) before income taxes $ 6,493 $ (2,165 ) Revenues are attributed to each country based on the location in which sales originate and in which assets are located. The following table provides information about the Company by geographic areas (in thousands): Three Months Ended March 31, 2017 2016 United States $ 426,941 $ 244,605 Canada 52,516 — $ 479,457 $ 244,605 The Company’s net sales from external customers by main product line are as follows (in thousands): Three Months Ended March 31, 2017 2016 Wallboard and accessories $ 209,459 $ 128,280 Metal framing 68,121 42,958 Suspended ceiling systems 72,534 26,216 Other products 83,126 47,151 Commercial and industrial insulation 46,217 — Net sales $ 479,457 $ 244,605

Other Current Liabilities

Other Current Liabilities	3 Months Ended
	Mar. 31, 2017
Other Liabilities Disclosure [Abstract]
Other Current Liabilities	Other Current Liabilities The balance of other current liabilities consisted of the following at March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Accrued expenses $ 15,917 $ 14,572 Accrued interest 6,257 18,915 Accrued other 12,096 16,126 Total other current liabilities $ 34,270 $ 49,613

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 3, 2017, the Company acquired the operations and certain assets of the specialty building products division of Irwin Builders Supply Corporation ("Irwin") located in Irwin, Pennsylvania. Irwin was a provider of a broad range of building products including drywall, metal studs, ceiling and wall systems, insulation and other complementary products to the Pennsylvania market. On April 30, 2017, the Company acquired the operations and certain assets of the Atlanta branch of Trident Distribution, a division of Performance Contracting, Inc. ("Trident"). Trident was a distributor of mechanical insulation and related products. Trident offered insulation fabrication services in addition to a full line of commercial and industrial insulation products and accessories supplying mechanical insulation contractors across the Georgia market. On May 1, 2017, the Company acquired all of the stock of Wallboard, Inc. ("Wallboard") with two branch locations in the Minneapolis-St. Paul metropolitan area. Wallboard was an independent distributor of wallboard, steel framing, insulation and finishing products primarily servicing the commercial segment as well as the multi-family segment of the residential business. On May 1, 2017, the Company acquired the operations and certain assets of Gypsum Wallboard Supply, Inc. ("GWSI") in Tacoma, Washington. GWSI was an independent distributor of specialty building products including wallboard, steel framing, suspended ceiling systems and other complementary products. GWSI primarily serviced the commercial segment as well as the multi-family segment of the residential business in the Seattle metropolitan market. The purchase price allocations for these acquisitions are in process and are subject to change as additional information becomes available concerning the fair values and tax bases of the acquired assets and liabilities. Any adjustments to the purchase price allocations will be made as soon as practicable but no later than one year from the acquisition dates.

Organization and Nature of th21

Organization and Nature of the Business (Policies)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic earnings (loss) per share represents net income (loss) for the period, divided by the weighted average number of common shares outstanding for the period.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation with respect to the interim financial statements, have been included. The results of operations for interim periods are not necessarily indicative of the results for full fiscal years. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended December 31, 2016, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 28, 2017 (the "2016 10-K").
Recently Adopted and Issued Accounting Standards	Recently Adopted Accounting Standards In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2015-11, Simplifying the Measurement of Inventory , which applies to inventory valued at first-in, first-out or average cost. ASU 2015-11 requires inventory to be measured at the lower of cost and net realizable value (i.e., selling price less reasonable completion and disposal costs), rather than at the lower of cost or market. ASU 2015-11 is effective on a prospective basis for annual periods beginning after December 15, 2016 , and interim periods within those fiscal years. The Company adopted this guidance on January 1, 2017 and the adoption thereof did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting . This ASU is intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements, including the income tax effects of share-based payments and accounting for forfeitures. This guidance will require recognizing the Company’s excess tax benefits on share-based compensation arrangements in the tax provision, instead of in equity as under the current guidance. In addition, these amounts will be classified as an operating activity in the statement of cash flows rather than a financing activity. The amendments in this update are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this guidance on January 1, 2017 and the adoption thereof did not have a material impact on the Company's consolidated financial statements. However, the adoption of this guidance will result in excess tax benefits or deficiencies related to the exercise of share-based compensation awards to employees being included in the determination of the Company’s income tax provision, which could significantly impact the Company’s consolidated net income in future periods. As of March 31, 2017, the Company is unable to quantify the expected financial impact to its future periods' consolidated net income. Recently Issued Accounting Standards In May 2014 , the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 amends the guidance for revenue recognition to replace numerous, industry-specific requirements. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The ASU also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows arising from contracts with customers. Additional ASUs have been issued to amend or clarify the guidance in this ASU as follows: • ASU No. 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients was issued in May 2016. ASU No. 2016-12 amends the new revenue recognition standard to clarify the guidance on assessing collectability, presenting sales taxes, measuring noncash consideration, and certain transition matters. • ASU No. 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing was issued in April 2016. ASU No. 2016-10 addresses implementation issues identified by the FASB-International Accounting Standards Board Joint Transition Resource Group for Revenue Recognition. • ASU No. 2016-08 Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) was issued in March 2016. ASU No. 2016-08 requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. The guidance in these ASUs is effective for annual reporting periods beginning after December 15, 2017 , including interim periods within that reporting period, and early adoption is permitted for interim and annual periods beginning after December 15, 2016 . The Company is in the early stages of evaluating the amended revenue recognition guidance in Topic 606. The evaluation has yet to progress to a stage where there is sufficient information for a preliminary position of the impact on the Company’s consolidated financial statements. Therefore, the Company is unable at this time to provide (i) qualitative financial statement disclosures of the potential impact that this standard will have on its financial statements when adopted, (ii) a description of the effects of the accounting policies it expects to apply, (iii) a comparison to its current revenue recognition policies and (iv) a method for adoption. In January 2016, the FASB issued ASU No. 2016-01, Financial Instrum ents – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The updated guidance enhances the reporting model for financial instruments by modifying how entities measure and recognize equity investments and present changes in the fair value of financial liabilities, and by simplifying the disclosure guidance for financial instruments. The amendments in this update are effective for fiscal years beginning after December 15, 2017. The amendments in this update should be applied prospectively. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In February 2016 , the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU No. 2016-02 establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either "finance" or "operating," with classification affecting the pattern of expense recognition in the income statement. This update requires a modified retrospective transition as of the beginning of the earliest comparative period presented in the financial statements. This update is effective for fiscal years beginning after December 15, 2018 , and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In August 2016 , the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU No. 2016-15 amended the existing accounting standards for the statement of cash flows. The amendments provide guidance on eight classification issues related to the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017 , and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates the requirement to calculate the implied fair value of goodwill but rather require an entity to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

Organization and Nature of th23

Organization and Nature of the Business (Tables)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following are the common share amounts used to compute the basic and diluted earnings (loss) per share for each period: Three Months Ended March 31, 2017 2016 Weighted average shares used in basic computations 37,273,156 29,974,239 Dilutive effect of stock options and restricted stock units — — Weighted average shares used in diluted computations 37,273,156 29,974,239

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	(in thousands) Dominion Interior Supply Assets acquired: Accounts receivable $ 1,425 Other receivables 88 Inventories 1,119 Prepaids and other current assets 12 Property and equipment 476 Goodwill 7,192 Intangible assets 3,300 Other assets 5 Total assets acquired: 13,617 Liabilities assumed: Accounts payable (396 ) Accrued expenses and other current liabilities (26 ) Total liabilities assumed (422 ) Total net assets acquired $ 13,195

Accumulated Other Comprehensi25

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income	The components of accumulated other comprehensive loss for the three months ended March 31, 2017 were as follows (in thousands): Cumulative unrealized foreign currency translation losses Unrealized gain on derivative, net of tax Total Balance at December 31, 2016 $ (1,464 ) $ 1,461 $ (3 ) Other comprehensive income (loss) 573 (461 ) 112 Balance at March 31, 2017 $ (891 ) $ 1,000 $ 109

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The change in goodwill from December 31, 2016 to March 31, 2017 consisted of the following (in thousands): Carrying Value Balance at December 31, 2016 $ 437,935 Goodwill acquired 7,192 Purchase price allocation from prior periods 723 Impact of foreign exchange rates 191 Balance at March 31, 2017 $ 446,041
Schedule of Finite-Lived Intangible Assets	The following is the gross carrying value and accumulated amortization of the Company’s identifiable intangible assets as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade names $ 15,980 $ (4,887 ) $ 11,093 $ 15,980 $ (4,097 ) $ 11,883 Customer relationships 239,056 (45,941 ) 193,115 235,690 (35,550 ) 200,140 Other intangible assets 3,850 (581 ) 3,269 3,852 (494 ) 3,358 $ 258,886 $ (51,409 ) $ 207,477 $ 255,522 $ (40,141 ) $ 215,381

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The estimated carrying amount and fair value of the Company’s financial instruments and other assets and liabilities measured and recorded at fair value on a recurring basis at March 31, 2017 is as follows (in thousands): Fair Value Measurements at March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Recurring: Non-current asset (liabilities) Derivative asset (Note 3) $ — $ 1,687 $ — $ 1,687
Schedule of Carrying Amount and Fair Value of Financial Instruments	The estimated carrying amount and fair value of the Company’s financial instruments and liabilities for which fair value is only disclosed is as follows (in thousands): Fair Value Measurements at March 31, 2017 Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Senior secured notes $ 527,632 $ — $ 615,618 $ — $ 615,618

Segments (Tables)

Segments (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated	The following tables present net sales and gross profit for each reportable segment (in thousands): Three Months Ended March 31, 2017 2016 Net Sales Gross Profit Net Sales Gross Profit SBP $ 418,463 $ 122,426 $ 244,605 $ 72,245 MI 60,994 17,485 — — Consolidated $ 479,457 $ 139,911 $ 244,605 $ 72,245 Total gross profit 139,911 72,245 Total operating expenses (131,458 ) (66,384 ) Interest expense (15,249 ) (8,036 ) Other income, net 13,289 10 Income (loss) before income taxes $ 6,493 $ (2,165 )
Schedule of Segment Reporting Information, by Segment	The following table provides information about the Company by geographic areas (in thousands): Three Months Ended March 31, 2017 2016 United States $ 426,941 $ 244,605 Canada 52,516 — $ 479,457 $ 244,605
Schedule of Revenue from External Customers by Products and Services	The Company’s net sales from external customers by main product line are as follows (in thousands): Three Months Ended March 31, 2017 2016 Wallboard and accessories $ 209,459 $ 128,280 Metal framing 68,121 42,958 Suspended ceiling systems 72,534 26,216 Other products 83,126 47,151 Commercial and industrial insulation 46,217 — Net sales $ 479,457 $ 244,605

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Other Liabilities Disclosure [Abstract]
Schedule of Other Current Liabilities	The balance of other current liabilities consisted of the following at March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Accrued expenses $ 15,917 $ 14,572 Accrued interest 6,257 18,915 Accrued other 12,096 16,126 Total other current liabilities $ 34,270 $ 49,613

Organization and Nature of th30

Organization and Nature of the Business - Narrative (Details) $ / shares in Units, $ in Thousands	Feb. 24, 2017shares	Feb. 15, 2017USD ($)$ / sharesshares	Mar. 31, 2017USD ($)segment$ / sharesshares	Mar. 31, 2016USD ($)	Dec. 31, 2016$ / shares
Class of Stock [Line Items]
Proceeds from issuance of stock | $		$ 161,300
Common stock par value (in dollars per share) | $ / shares		$ 13,000	$ 0.001		$ 0.001
Repayments of debt | $			$ 0	$ 613
Number of reportable segments | segment			2
Antidilutive securities excluded from computation of weighted average common shares (in shares) | shares			108,000
IPO
Class of Stock [Line Items]
Options exercised by underwriters to purchase additional shares (in shares) | shares		12,800,000
Public offering price of stock (in dollars per share) | $ / shares		$ 14
Revolving Credit Facility
Class of Stock [Line Items]
Repayments of debt | $		$ 161,300
Parent 2 | Over-Allotment Option
Class of Stock [Line Items]
Options exercised by underwriters to purchase additional shares (in shares) | shares	1,920,000

Organization and Nature of th31

Organization and Nature of the Business - Schedule of Common Share Amounts Used to Compute Basic and Diluted EPS (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Weighted average shares used in basic computations (in shares)	37,273,156	29,974,239
Dilutive effect of exercise of equity grants outstanding (in shares)	0	0
Weighted average shares used in diluted computations (in shares)	37,273,156	29,974,239

Derivatives and Hedging Activ32

Derivatives and Hedging Activities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Percentage of option to prepay in equity offerings	40.00%
Period of option to prepay using proceeds from equity offering	180 days
Percentage of principal amount outstanding	50.00%
Redemption price percentage	108.25%
Other Noncurrent Liabilities
Derivative [Line Items]
Fair value of embedded derivative liability	$ 0	$ 13,200
Other Operating Income (Expense)
Derivative [Line Items]
Change in fair value in amount included as other income (expense)	13,200
Designated as Hedging Instrument | Foreign Exchange Contract
Derivative [Line Items]
Notional foreign exchange contract outstanding	88,000	88,000
Loss recognized in other comprehensive income (loss)	500
Ineffective portion of gain	67
Designated as Hedging Instrument | Foreign Exchange Contract | Other Noncurrent Assets
Derivative [Line Items]
Fair value asset of derivative instrument	$ 1,700	$ 2,400
Senior Secured Notes Due 2021
Derivative [Line Items]
Percentage of option to prepay principal amount (equal to)	100.00%
Senior Notes | Senior Secured Notes Due 2021
Derivative [Line Items]
Periodic payment	$ 575,000

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) $ in Millions	Jan. 01, 2017USD ($)
Dominion Interior Supply
Business Acquisition [Line Items]
Total purchase price	$ 13.1

Acquisitions - Schedule of Reco

Acquisitions - Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Jan. 01, 2017	Dec. 31, 2016
Assets acquired:
Goodwill	$ 446,041		$ 437,935
Dominion Interior Supply
Assets acquired:
Accounts receivable		$ 1,425
Other receivables		88
Inventories		1,119
Prepaids and other current assets		12
Property and equipment		476
Goodwill		7,192
Intangible assets		3,300
Other assets		5
Total assets acquired		13,617
Liabilities assumed:
Accounts payable		(396)
Accrued expenses and other current liabilities		(26)
Total liabilities assumed		(422)
Total net assets acquired		$ 13,195

Tax Receivable Agreement Liab35

Tax Receivable Agreement Liability - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
Income Tax Disclosure [Abstract]
Reduction in federal, state, local and non-US income taxes (in percentage)	90.00%
Liability for tax receivable agreement	$ 203.8

Accumulated Other Comprehensi36

Accumulated Other Comprehensive Income (Loss) - Schedule of Components of Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 328,516
Other comprehensive income (loss)	112	$ 0
Ending balance	297,458
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(3)
Ending balance	109
Cumulative unrealized foreign currency translation losses
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,464)
Other comprehensive income (loss)	573
Ending balance	(891)
Unrealized gain on derivative, net of tax
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	1,461
Other comprehensive income (loss)	(461)
Ending balance	$ 1,000

Goodwill and Intangible Asset37

Goodwill and Intangible Assets - Schedule of Change in Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Goodwill [Roll Forward]
Beginning balance	$ 437,935
Goodwill acquired	7,192
Purchase price allocation from prior periods	723	$ 0
Impact of foreign exchange rates	191
Ending balance	$ 446,041

Goodwill and Intangible Asset38

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Goodwill	$ 446,041	$ 437,935
Specialty Building Products
Segment Reporting Information [Line Items]
Goodwill	440,700	432,600
Mechanical Insulation
Segment Reporting Information [Line Items]
Goodwill	$ 5,300	$ 5,300

Goodwill and Intangible Asset39

Goodwill and Intangible Assets - Schedule of Gross Carrying Value and Accumulated Amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 258,886	$ 255,522
Accumulated Amortization	(51,409)	(40,141)
Net Carrying Amount	207,477	215,381
Trade Names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	15,980	15,980
Accumulated Amortization	(4,887)	(4,097)
Net Carrying Amount	11,093	11,883
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	239,056	235,690
Accumulated Amortization	(45,941)	(35,550)
Net Carrying Amount	193,115	200,140
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,850	3,852
Accumulated Amortization	(581)	(494)
Net Carrying Amount	$ 3,269	$ 3,358

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Carrying Amount of Assets and Liabilities on a Recurring Basis(Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Non-current asset (liabilities)
Derivative asset	$ 1,687	$ 2,475
Derivative Liability		(13,250)
Quoted Prices in Active Markets for Identical Assets (Level 1)
Non-current asset (liabilities)
Derivative asset	0	0
Derivative Liability		0
Significant Other Observable Inputs (Level 2)
Non-current asset (liabilities)
Derivative asset	1,687	2,475
Derivative Liability		(13,250)
Significant Unobservable Inputs (Level 3)
Non-current asset (liabilities)
Derivative asset	$ 0	0
Derivative Liability		$ 0

Fair Value Measurements - Sch41

Fair Value Measurements - Schedule of Liabilities Measured on a Recurring Basis (Details) $ in Thousands	Mar. 31, 2017USD ($)
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior secured notes	$ 527,632
Total Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior secured notes	615,618
Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior secured notes	0
Total Fair Value | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior secured notes	615,618
Total Fair Value | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior secured notes	$ 0

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Effective income tax rates (in percentage)	39.50%	41.80%

Segments - Narrative (Details)

Segments - Narrative (Details)	3 Months Ended
	Mar. 31, 2017segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segments - Schedule of Revenues

Segments - Schedule of Revenues by Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Net sales	$ 479,457	$ 244,605
Gross Profit	139,911	72,245
Total operating expenses	(131,458)	(66,384)
Interest expense	(15,249)	(8,036)
Other income, net	13,289	10
Income (loss) before income taxes	6,493	(2,165)
SBP
Segment Reporting Information [Line Items]
Net sales	418,463	244,605
Gross Profit	122,426	72,245
MI
Segment Reporting Information [Line Items]
Net sales	60,994	0
Gross Profit	$ 17,485	$ 0

Segments - Schedule of Informat

Segments - Schedule of Information by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Revenues by geographic areas	$ 479,457	$ 244,605
United States
Segment Reporting Information [Line Items]
Revenues by geographic areas	426,941	244,605
Canada
Segment Reporting Information [Line Items]
Revenues by geographic areas	$ 52,516	$ 0

Segments - Schedule of Net Sale

Segments - Schedule of Net Sales From External Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue from External Customer [Line Items]
Net sales	$ 479,457	$ 244,605
Wallboard and accessories
Revenue from External Customer [Line Items]
Net sales	209,459	128,280
Metal framing
Revenue from External Customer [Line Items]
Net sales	68,121	42,958
Suspended ceiling systems
Revenue from External Customer [Line Items]
Net sales	72,534	26,216
Other products
Revenue from External Customer [Line Items]
Net sales	83,126	47,151
Commercial and industrial insulation
Revenue from External Customer [Line Items]
Net sales	$ 46,217	$ 0

Other Current Liabilities - Sch

Other Current Liabilities - Schedule of Other Current Liabilites (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Accrued expenses	$ 15,917	$ 14,572
Accrued interest	6,257	18,915
Accrued other	12,096	16,126
Total other current liabilities	$ 34,270	$ 49,613

Subsequent Events - Narrative (

Subsequent Events - Narrative (Details) - Subsequent Event	May 01, 2017location
Wallboard, Inc. | Minneapolis-St. Paul Metropolitan Area
Subsequent Event [Line Items]
Number of branch locations	2
Gypsum Wallboard Supply, Inc. | Tacoma, Washington
Subsequent Event [Line Items]
Number of branch locations	1