Foundation Building Materials (FBM) 10-Q9 Aug 182018 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Aug. 03, 2018
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	Accelerated Filer
Entity Common Stock Shares Outstanding (in shares)		42,893,982
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 7,083	$ 12,101
Accounts receivable—net of allowance for doubtful accounts of $4,092 and $4,651, respectively	343,382	280,023
Other receivables	49,286	59,462
Inventories	211,997	184,436
Prepaid expenses and other current assets	13,807	12,636
Total current assets	625,555	548,658
Property and equipment, net	156,000	151,408
Intangible assets, net	169,738	189,770
Goodwill	465,762	458,737
Other assets	5,790	5,604
Total assets	1,422,845	1,354,177
Current liabilities:
Accounts payable	166,910	156,345
Accrued payroll and employee benefits	24,717	21,158
Accrued taxes	11,627	7,790
Tax receivable agreement	15,892	15,892
Other current liabilities	40,021	41,093
Total current liabilities	259,167	242,278
Asset-based revolving credit facility	94,075	47,486
Long-term portion of notes payable, net	539,168	534,379
Tax receivable agreement	119,912	119,912
Deferred income taxes, net	18,198	17,819
Other liabilities	10,195	13,639
Total liabilities	1,040,715	975,513
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value, authorized 10,000,000 shares; 0 shares issued	0	0
Common stock, $0.001 par value, authorized 190,000,000 shares; 42,893,982 and 42,865,407 shares issued, respectively	13	13
Additional paid-in capital	330,995	330,113
Retained earnings	50,711	46,184
Accumulated other comprehensive income	411	2,354
Total stockholders' equity	382,130	378,664
Total liabilities and stockholders' equity	$ 1,422,845	$ 1,354,177

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 4,092	$ 4,651
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)	42,893,982	42,865,407
Common stock shares outstanding (in shares)	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Net sales	$ 604,973	$ 529,230	$ 1,141,270	$ 1,008,687
Cost of goods sold	435,876	379,698	817,733	719,244
Gross profit	169,097	149,532	323,537	289,443
Operating expenses:
Selling, general and administrative	125,785	113,602	247,212	226,664
Depreciation and amortization	20,341	19,027	40,227	37,423
Total operating expenses	146,126	132,629	287,439	264,087
Income from operations	22,971	16,903	36,098	25,356
Interest expense	(15,345)	(14,876)	(30,477)	(30,125)
Other income, net	57	95	124	13,384
Income before income taxes	7,683	2,122	5,745	8,615
Income tax expense	2,283	862	1,398	3,426
Net income	$ 5,400	$ 1,260	$ 4,347	$ 5,189
Earnings per share data:
Basic (in dollars per share)	$ 0.13	$ 0.03	$ 0.10	$ 0.13
Diluted (in dollars per share)	$ 0.13	$ 0.03	$ 0.10	$ 0.13
Weighted average shares outstanding:
Basic (in shares)	42,893,498	42,865,407	42,886,867	40,084,730
Diluted (in shares)	42,910,017	42,879,319	42,903,788	40,084,940
Comprehensive income:
Foreign currency translation adjustment	$ (1,831)	$ 2,085	$ (4,202)	$ 2,658
Unrealized gain (loss) on derivative, net of taxes of $0.4 million and $0.6 million, respectively and $1.0 million and $0.9 million, respectively	1,096	(939)	2,259	(1,400)
Total other comprehensive (loss) income	(735)	1,146	(1,943)	1,258
Total comprehensive income	$ 4,665	$ 2,406	$ 2,404	$ 6,447

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Net of tax effect on unrealized (loss) gain on derivatives	$ 0.4	$ (0.6)	$ 1	$ (0.9)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income	$ 4,347	$ 5,189
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation	16,329	14,723
Amortization of intangible assets	23,898	22,700
Amortization of debt issuance costs and debt discount	5,298	4,844
Inventory fair value purchase accounting adjustment	407	664
Provision for doubtful accounts	1,050	766
Stock-based compensation	927	1,765
Unrealized gain on derivative instruments, net	(135)	(13,155)
Loss on disposal of property and equipment	309	242
Deferred income taxes	(421)	3,356
Change in assets and liabilities, net of effects of acquisitions:
Accounts receivable	(63,199)	(32,706)
Other receivables	9,918	10,638
Inventories	(25,680)	(2,807)
Prepaid expenses and other current assets	(1,155)	561
Other assets	382	393
Accounts payable	11,349	17,875
Accrued payroll and employee benefits	3,674	(4,433)
Accrued taxes	3,855	(1,474)
Other liabilities	(491)	(7,258)
Net cash (used in) provided by operating activities	(9,338)	21,883
Cash flows from investing activities:
Purchases of property and equipment	(20,463)	(17,525)
Payment of net working capital adjustments	(40)	(405)
Proceeds from net working capital adjustments	336	8,554
Proceeds from the disposal of fixed assets	577	429
Acquisitions, net of cash acquired	(21,220)	(52,951)
Net cash used in investing activities	(40,810)	(61,898)
Cash flows from financing activities:
Proceeds from asset-based revolving credit facility	266,198	280,995
Repayments of asset-based revolving credit facility	(219,350)	(415,497)
Tax withholding payment related to net settlement of equity awards	(45)	0
Principal repayment of capital lease obligations	(1,489)	(1,395)
Issuance of common stock	0	163,952
Capital contributions	0	2,997
Net cash provided by financing activities	45,314	31,052
Effect of exchange rate changes on cash	(184)	357
Net decrease in cash	(5,018)	(8,606)
Cash and cash equivalents at beginning of period	12,101	28,552
Cash and cash equivalents at end of period	7,083	19,946
Supplemental disclosures of cash flow information:
Cash paid during the period for income taxes	1,423	143
Cash paid during the period for interest	25,226	25,699
Supplemental disclosures of non-cash investing and financing activities:
Change in fair value of derivative, net of tax	2,259	1,400
Assets acquired under capital lease	0	658
Goodwill adjustment for purchase price allocation	202	1,724
Tax receivable agreement	0	203,837
Property and equipment included in accounts payable	$ 0	$ 198

Business and Basis of Presentat

Business and Basis of Presentation	6 Months Ended
Business and Basis of Presentation	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Basis of Presentation	Business and Basis of Presentation Business Foundation Building Materials, Inc. (the "Company") is a specialty distributor of wallboard, suspended ceiling systems, and mechanical insulation throughout the U.S. and Canada. Based in Tustin, California, the Company employs more than 3,700 people and operates more than 220 branches across the U.S. and Canada. Organization 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. Reorganization On February 8, 2017, FBM Alpha LLC, (formerly known as LSF9 Cypress Parent, LLC) ("Alpha"), transferred its wholly owned direct subsidiary, Foundation Building Materials Holding Company LLC (formerly known as FBM Beta LLC and LSF9 Cypress Holdings, LLC) ("Holdco"), 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 and commissions and expenses, the net proceeds to the Company from the IPO were approximately $164.0 million . The Company used these net proceeds to repay borrowings outstanding under its asset-based revolving credit facility (the "ABL Credit Facility"). The proceeds of $164.0 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. 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 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, 2017, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2018 (the "2017 10-K"). 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 ("SBP") and Mechanical Insulation ("MI"). Resources are allocated and performance is assessed by the Company's CEO, who is the Chief Operating Decision Maker ("CODM") .

Recently Issued Accounting Stan

Recently Issued Accounting Standards	6 Months Ended
Recently Issued Accounting Standards	Jun. 30, 2018
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards Recently Adopted Accounting Standards On January 1, 2018, the Company adopted new revenue recognition guidance, Accounting Standard Codification ("ASC") 606, Revenue from Contracts with Customers and all related amendments, using the modified retrospective method. The Company has concluded that the adoption did not have a material impact on its consolidated financial statements. Revenue Recognition - Revenue is recognized upon transfer of control of promised products to customers in an amount that reflects the consideration expected to be received in exchange for those products. The applicable shipping and handling costs invoiced to the customer are included in "Selling, general and administrative" expenses in the accompanying consolidated statements of operations. All revenue recognized is net of sales taxes collected, which are subsequently remitted to the appropriate government authorities. Performance Obligations - The performance obligation for product sales is met at a point in time, when the product is delivered and control is transferred to the customer. At inception of a contract with a customer, the price and quantity of goods are fixed. However, the Company offers discounts on terms and rebate incentives to select customers. The Company also gives customers the right to return eligible products. Disaggregation of Revenue - Refer to Note 12, Segments, for further information, including revenue by segment, by geography and by major product line. Contract Balances - The Company currently discloses its accounts receivable balances on the balance sheet. The Company does not have any contract assets due to the election of the practical expedient in Financial Accounting Standards Board ("FASB") ASC 340-40-25-4, which states an entity may recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. The Company does not have any material contract liabilities. The Company is also required to disclose revenue recognized in the reporting period from performance obligations satisfied in previous reporting periods. This guidance is consistent with existing guidance related to changes in accounting estimates. The Company will continue to monitor changes in estimates related to sales returns, customer discounts and customer rebates and will disclose them if material. Significant Judgments - The Company calculates the allowance for sales returns, early pay discounts and customer rebates using the expected value method and believes its current methodology properly constrains revenue. The Company does not believe that a significant reversal in the amount of cumulative revenue recognized will occur when the uncertainty associated with the variable consideration is resolved. Practical Expedients - In addition to the aforementioned practical expedient, the Company has elected the practical expedient as allowed by ASC 606-10-32-18, which states that an entity need not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects, at contract inception, that the period between when the entity transfers promised goods or services to a customer and when the customer pays for those goods or services will be one year or less. In January 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-01, Financial Instruments – 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 adopted this guidance on January 1, 2018, and it did not have a material impact on the Company’s 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. The Company adopted this guidance on January 1, 2018, and it did not have a material impact on the Company’s 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. The Company adopted this guidance on January 1, 2018, and it did not have a material impact on the Company’s consolidated financial statements. On January 1, 2018, the Company adopted ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. As a result of income tax effects of the Tax Cut and Jobs Act (the “Tax Act”), which reduced the corporate federal tax rate from 35.0% to 21.0%, the Company reclassified $0.2 million from accumulated other comprehensive income to retained earnings related to its net investment hedge. Recently Issued Accounting Standards 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; however, it does expect the adoption of this guidance to have a material impact 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 instead requires 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 does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

Derivatives and Hedging Activit

Derivatives and Hedging Activities	6 Months Ended
Derivatives and Hedging Activities	Jun. 30, 2018
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 June 30, 2018 , and December 31, 2017, 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. As of June 30, 2018 , the fair value of the derivative instrument was $1.0 million and was recorded in other long-term assets. As of December 31, 2017, the fair value of the derivative instrument was $2.4 million and was recorded in other long-term liabilities. The Company recognized a gain of $1.1 million and $2.3 million , net of taxes of $0.4 million and $1.0 million , respectively, for the three and six months ended June 30, 2018, respectively, recorded in other comprehensive (loss) income related to the net investment hedge. The Company recognized a loss of $0.9 million and $1.4 million , net of taxes of $0.6 million and $0.9 million , respectively, for the three and six months ended June 30, 2017, respectively, recorded in other comprehensive (loss) income related to the net investment hedge. The Company recorded a gain of $60,000 and $135,000 for the three and six months ended June 30, 2018, respectively, in other income, net, related to the ineffective portion of the net investment hedge. The Company recorded a loss of $64,000 and $95,000 for the three and six months ended June 30, 2017, respectively, in other income, net, related to the ineffective portion of the net investment hedge. 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. In addition, prior to August 15, 2018 and in the event of equity offerings, the Company has the option to prepay up to 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% of the principal amount plus accrued and unpaid interest. On or after August 15, 2018, the Company may redeem the Notes subject to a redemption price equal to a percentage of the principal amount of the Notes, with such percentage set forth in the indenture governing the Notes, 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 as of June 30, 2018, and December 31, 2017 was $0 , due to a minimal probability of an equity offering occurring where the proceeds are used to pay down the Notes prior to the expiration of the optional prepayment time period on August 15, 2018. The change in fair value was $0 for the three and six months ended June 30, 2018. The change in fair value in the amounts $0 and $13.2 million for the three and six months ended June 30, 2017, respectively, was included in other income, net.

Acquisitions

Acquisitions	6 Months Ended
Acquisitions	Jun. 30, 2018
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 consolidated financial statements from the acquisition date. Acquisition related costs are expensed as incurred. 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 June 30, 2018. The fair value of acquired intangible assets, primarily related to customer relationships, was estimated by applying a discounted cash flow model. 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 including future cash flows, long-term growth rates, implied royalty rates, attrition rates and discount rates. The purchase price allocations for the acquisitions set forth below are preliminary and subject to adjustment as additional information is obtained about facts and circumstances that existed as of the applicable acquisition date. During the six months ended June 30, 2018, the Company completed the following two acquisitions: ArmCom Distributing Company On February 1, 2018, the Company acquired the operations and substantially all of the assets of ArmCom Distributing Company ("ArmCom"), a division of St. Paul Linoleum and Carpet Company. ArmCom was an independent distributor of ceilings products and operated five branches in Minnesota, North Dakota, South Dakota and Nebraska. RM Supply On February 1, 2018, the Company acquired all of the stock of RM Supply, Inc. and certain assets of JMB Transportation, L.L.C. (collectively, “RM Supply”). RM Supply was an independent distributor of wallboard, steel framing, insulation, and wallboard accessories. RM Supply operated two branches in Missouri. During the six months ended June 30, 2018, the Company completed the above acquisitions for an aggregate purchase price of $21.9 million . These acquisitions are not considered material, individually or in aggregate. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date for the acquisitions summarized above ("2018 acquisitions") (in thousands): Six Months Ended June 30, 2018 Assets acquired: Cash $ 671 Accounts receivable 3,320 Other receivables 448 Inventories 3,366 Prepaid and other current assets 146 Property and equipment 2,164 Goodwill 8,404 Intangible assets 4,200 Other assets 50 Total assets acquired 22,769 Liabilities assumed: Accounts payable (530 ) Accrued expenses and other current liabilities (348 ) Total liabilities assumed (878 ) Total net assets acquired $ 21,891 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 acquisitions. Goodwill attributable to the acquisitions 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 businesses acquired. Goodwill and intangible assets recognized from asset acquisitions are expected to be tax deductible. The ArmCom acquisition was treated as an asset purchase, and the RM Supply acquisition was treated as a stock purchase for tax purposes. Generally, the most significant intangible asset acquired is customer relationships. The Company's acquisitions are generally subject to working capital adjustments; however, the Company does not expect any such adjustments to have a material impact on its consolidated financial statements. Any adjustments to the purchase price allocation of these acquisitions will be made as soon as practicable but no later than one year from the acquisition date. The pro forma impact of the 2018 acquisitions is not presented as the 2018 acquisitions are not considered material to the Company's consolidated financial statements.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
Goodwill and Intangible Assets	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets The change in goodwill from December 31, 2017, to June 30, 2018, consisted of the following (in thousands): Carrying Value Balance at December 31, 2017 $ 458,737 Goodwill acquired 8,404 Purchase price allocation adjustments (93 ) Impact of foreign exchange rates (1,286 ) Balance at June 30, 2018 $ 465,762 As of June 30, 2018, goodwill allocated to the SBP and MI segments was $459.9 million and $5.9 million , respectively. As of December 31, 2017, goodwill allocated to the SBP and MI segments was $452.8 million and $5.9 million , respectively. Changes to initial purchase price allocations related to acquisitions may arise from changes in estimates from conditions that existed at the applicable acquisition date and as a result of net working capital adjustments. 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 June 30, 2018, and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade names $ 15,980 $ (8,853 ) $ 7,127 $ 15,980 $ (7,283 ) $ 8,697 Customer relationships 260,349 (100,463 ) 159,886 256,650 (78,406 ) 178,244 Other intangible assets 3,656 (931 ) 2,725 3,640 (811 ) 2,829 $ 279,985 $ (110,247 ) $ 169,738 $ 276,270 $ (86,500 ) $ 189,770 The weighted average amortization period of these intangible assets in the aggregate is 3.9 years .

Long-Term Debt

Long-Term Debt	6 Months Ended
Long-Term Debt	Jun. 30, 2018
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt (in thousands) June 30, 2018 December 31, 2017 Senior secured notes $ 575,000 $ 575,000 Unamortized debt issuance costs - senior secured notes (35,832 ) (40,621 ) Revolving asset-based credit facility 94,075 47,486 Unamortized debt issuance costs - asset-based revolving credit facility (2,655 ) (3,164 ) $ 630,588 $ 578,701 Senior Secured Notes Due 2021 On August 9, 2016, the Company, together with FBM Finance, Inc., its wholly owned subsidiary which was created for the purpose of issuing the Notes (together, the "Issuers"), issued $575.0 million in aggregate principal amount of 8.25% senior secured notes due 2021 at an issue price of 100% of the principal amount of the Notes in a private placement. The Notes are fully and unconditionally guaranteed on a senior secured basis, jointly and severally, by Alpha and each of Alpha's domestic wholly owned restricted subsidiaries (other than certain excluded subsidiaries) (the "Guarantors"). The Notes are senior secured obligations that have priority over certain collateral of the Issuers and the Guarantors of the Notes and are effectively subordinated to the obligations under the ABL Credit Facility in respect of certain other collateral of the Issuers and the Guarantors of the Notes. The Notes will mature on August 15, 2021, and bear interest at an annual rate of 8.25% . Interest on the Notes is payable semi-annually in arrears in February and August of each year. The Notes are governed by an indenture, dated August 9, 2016, among the Issuers, the Guarantors and Wilmington Trust, National Association, as trustee (the "Indenture"). Before August 15, 2018, the Issuers may redeem all or a portion of the Notes, at a redemption price equal to 100% of the principal amount thereof, plus an applicable premium and accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. In addition, prior to August 15, 2018 and in the event of equity offerings, the Issuers are entitled to redeem up to 40% of the aggregate principal amount of the Notes (provided 50% of the principal remains outstanding) at a redemption price equal to 108.25% of the principal amount of the Notes, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. The Issuers may, at their option, redeem all or a portion of the Notes at any time on or after August 15, 2018, at the applicable redemption prices specified in the Indenture, plus any accrued and unpaid interest to, but excluding, the applicable redemption date. Upon certain kinds of changes of control, holders of the Notes have the right to require the Issuers to repurchase all or any portion of such holder’s Notes at 101% of the principal amount of the Notes being repurchased, plus any accrued and unpaid interest to, but excluding, the date of repurchase. ABL Credit Facility On August 9, 2016, Holdco as the initial borrower, along with Alpha and additional U.S. and Canadian borrowers entered into the ABL Credit Facility with Goldman Sachs Bank USA as administrative agent, which matures on February 9, 2021. The ABL Credit Facility bears interest, at the applicable borrower's option, at either a Eurodollar rate or an alternate base rate plus an applicable margin. Based on the historical excess availability under the ABL Credit Facility, the margin can range from 1.25% to 1.75% per annum in the case of Eurodollar rate loans and 0.25% to 0.75% per annum in the case of alternate base rate loans. The available borrowing capacity, or borrowing base, is derived from a percentage of the borrowers' eligible receivables and inventory in both the United States and Canada, as defined in the ABL Credit Facility, subject to certain reserves, with a $75.0 million sub-limit on the Canadian borrowing base. As of the closing of the ABL Credit Facility, the available borrowing capacity was $250.0 million . A variable commitment fee, ranging from 0.25% to 0.375% and currently 0.25% per annum, is charged on the unused amount of the ABL Credit Facility based on quarterly average loan utilization. Letters of credit under the ABL Credit Facility are assessed at a rate equal to the applicable Eurodollar margin, currently 1.50% , as well as a fronting fee at a rate of 0.125% per annum. These fees are payable quarterly in arrears at the end of March, June, September, and December. In addition, an administrative agent fee of $75,000 for the ABL Credit Facility is due and payable each year in quarterly installments on the last day of each quarter. The ABL Credit Facility is a senior secured obligation of Alpha, Holdco, and the borrowers, with priority over certain collateral of the Company and its subsidiaries. There are no prepayment premiums associated with the ABL Credit Facility. On September 23, 2016, Alpha, Holdco and the additional U.S. and Canadian borrowers entered into an Incremental Facility Amendment to the ABL Credit Facility which extended borrowing commitments under the ABL Credit Facility by an additional $50.0 million , resulting in total borrowing capacity of $300.0 million . As of June 30, 2018, the Company had $94.1 million of outstanding borrowings and $205.9 million of available aggregate undrawn borrowing capacity under the ABL Credit Facility. The weighted average interest rate for borrowings under the ABL Credit Facility for the six months ended June 30, 2018 was 3.3% .

Tax Receivable Agreement Liabil

Tax Receivable Agreement Liability	6 Months Ended
Tax Receivable Agreement Liability	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Tax Receivable Agreement Liability	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. During the three months ended March 31, 2017, the Company recorded a 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 are 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 future 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. During the three months ended December 31, 2017, the Company recorded a gain in other income of $68.0 million due to the federal income tax rate being reduced from 35.0% to 21.0% as part of the Tax Act. As of June 30, 2018, and December 31, 2017, the TRA liability balance was $135.8 million . There have been no payments related to the TRA from inception to June 30, 2018. The first payment related to the TRA is anticipated to be made during the fourth quarter of 2018 and is estimated to be $15.9 million and is reflected as a current liability as of June 30, 2018 and December 31, 2017. Income Taxes For the three and six months ended June 30, 2018, the Company's effective tax rates were 29.7% and 24.3% , respectively. The variance from the statutory federal tax rate of 21.0% for the three months ended June 30, 2018 was primarily due to state income taxes, non-deductible items and a foreign rate differential. The variance from the statutory federal rate of 21.0% for the six months ended June 30, 2018 was primarily due to state income taxes, non-deductible items and a foreign rate differential, offset by a refinement of the provisional estimate of the one-time repatriation tax under the Tax Act, treated as a discrete item during the first quarter. For the three and six months ended June 30, 2017, the Company's effective tax rates were 40.6% and 39.8% . The variance from the statutory federal tax rate of 35.0% for both periods was primarily due to state income taxes and non-deductible items. On January 1, 2018, the Company adopted ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. As a result of income tax effects of the Tax Act, which reduced the corporate federal tax rate from 35.0% to 21.0%, the Company reclassified $0.2 million from accumulated other comprehensive income to retained earnings related to its net investment hedge. On December 22, 2017, the United States government enacted the Tax Act resulting in significant modifications to existing law. The Company follows the guidance in Securities and Exchange Commission Staff Accounting Bulletin ("SAB") 118, which provides additional clarification regarding the application of ASC Topic 740 in situations where the Company does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act for the reporting period in which the Tax Act was enacted. SAB 118 provides for a measurement period beginning in the reporting period that includes the Tax Act’s enactment date and ending when the Company has obtained, prepared, and analyzed the information needed in order to complete the accounting requirements but in no circumstance should the measurement period extend beyond one year from the enactment date. As of June 30, 2018, the Company has completed the accounting for the effects of the Tax Act except for the repricing of ending deferred taxes due to the reduction in the corporate tax rate and the impact of the one-time deemed repatriation transition tax on unrepatriated foreign earnings. As a result, the Company's financial statements reflect these effects of the Tax Act as provisional based on a reasonable estimate of the income tax effects. As of December 31, 2017, the Company had included a provisional reduction in deferred tax liability and corresponding provisional reduction in tax provision expense of $9.1 million in relation to the repricing of its ending deferred tax balance. The provisional amount was and is based on information currently available at that time, including estimated book to tax adjustments. As of June 30, 2018, the Company continues to gather and analyze information, including any future legislative tax developments at the federal or state jurisdictions, in order to complete the accounting for the repricing of the ending deferred balances. The Company has also included a provisional income tax payable in the amount of $0.2 million related to the one-time deemed repatriation transition tax on unrepatriated foreign earnings. The provisional amount is based on information currently available, including estimated tax earnings and profits and tax pools from foreign investments. In addition, the income tax payable has been calculated by electing out of the use of net operating losses in order to maximize the use of foreign tax credits. The Company has also estimated the state tax impact of the Tax Act. The Company continues to gather and analyze information, including historical adjustments to earnings and profits of foreign subsidiaries and the available elections, in order to complete the accounting for the effects of the estimated transition tax. Any future legislative tax developments at the federal or state jurisdictions will need to be examined for potential application. It is the intention of the Company to complete the necessary analysis within the measurement period. The Company considers the earnings of non-U.S. subsidiaries to be indefinitely invested outside the United States based on estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and the Company's specific plans for reinvestment of those subsidiary earnings. As required by the Tax Act, as of June 30, 2018 and December 31, 2017, the Company has recorded a provisional tax liability related to the U.S. federal income taxes of approximately $8.2 million and $10.2 million , respectively, of undistributed earnings of foreign subsidiaries indefinitely invested outside the United States. However, the Company has not recorded a deferred tax liability for state and foreign withholding taxes associated with the repatriation of those foreign earnings. If the Company decides to repatriate the foreign earnings, it would need to adjust its income tax provision in the period it determined that the earnings will no longer be indefinitely invested outside the United States. The Company has no present intention to repatriate any of its foreign earnings.

Accumulated Other Comprehensive

Accumulated Other Comprehensive (Loss) Income	6 Months Ended
Accumulated Other Comprehensive (Loss) Income	Jun. 30, 2018
Equity [Abstract]
Accumulated Other Comprehensive (Loss) Income	Accumulated Other Comprehensive (Loss) Income Accumulated other comprehensive (loss) income consists of cumulative unrealized foreign currency translation adjustments and unrealized changes in fair value of a derivative instrument. During the six months ended June 30, 2018, $0.2 million was reclassified to retained earnings as a result of income tax effects of the Tax Act, which reduced the corporate federal tax rate from 35.0% to 21.0%. During the six months ended June 30, 2017, there were no reclassifications out of accumulated other comprehensive income. The components of accumulated other comprehensive income for the six months ended June 30, 2018 were as follows (in thousands): Cumulative unrealized foreign currency translation gain (loss) Unrealized (loss) gain on derivative, net of tax Total Balance at December 31, 2017 $ 3,863 $ (1,509 ) $ 2,354 Other comprehensive (loss) income (4,202 ) 2,259 (1,943 ) Balance at June 30, 2018 $ (339 ) $ 750 $ 411

Contingencies

Contingencies	6 Months Ended
Contingencies	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies The Company is involved in certain legal actions arising in the ordinary course of business. 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. Because of uncertainties related to pending actions, the Company is currently unable to predict the ultimate outcome of such legal actions, and, with respect to any legal action where no liability has been accrued, to make a meaningful estimate of the reasonably possible loss or range of loss that could result from an adverse outcome. 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 June 30, 2018 , there were no claims, 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	6 Months Ended
Fair Value Measurements	Jun. 30, 2018
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 and accrued liabilities approximates fair value due to their short-term maturity. The Company may adjust the carrying amount of certain non-financial 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 measured and recorded at fair value on a recurring basis at June 30, 2018 is as follows (in thousands): Fair Value Measurements as of June 30, 2018 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 assets Derivative asset (Note 3) $ — $ 1,047 $ — $ 1,047 The estimated carrying amount and fair value of the Company’s financial instruments measured and recorded at fair value on a recurring basis at December 31, 2017 is as follows (in thousands): Fair Value Measurements as of December 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 liabilities Derivative liability (Note 3) $ — $ (2,364 ) $ — $ (2,364 ) 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 for which fair value is only disclosed is as follows (in thousands): Fair Value Measurements as of June 30, 2018 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 $ 539,168 $ — $ 599,202 $ — $ 599,202

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2018
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. During the three months ended March 31, 2017, the Company recorded a 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 are 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 future 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. During the three months ended December 31, 2017, the Company recorded a gain in other income of $68.0 million due to the federal income tax rate being reduced from 35.0% to 21.0% as part of the Tax Act. As of June 30, 2018, and December 31, 2017, the TRA liability balance was $135.8 million . There have been no payments related to the TRA from inception to June 30, 2018. The first payment related to the TRA is anticipated to be made during the fourth quarter of 2018 and is estimated to be $15.9 million and is reflected as a current liability as of June 30, 2018 and December 31, 2017. Income Taxes For the three and six months ended June 30, 2018, the Company's effective tax rates were 29.7% and 24.3% , respectively. The variance from the statutory federal tax rate of 21.0% for the three months ended June 30, 2018 was primarily due to state income taxes, non-deductible items and a foreign rate differential. The variance from the statutory federal rate of 21.0% for the six months ended June 30, 2018 was primarily due to state income taxes, non-deductible items and a foreign rate differential, offset by a refinement of the provisional estimate of the one-time repatriation tax under the Tax Act, treated as a discrete item during the first quarter. For the three and six months ended June 30, 2017, the Company's effective tax rates were 40.6% and 39.8% . The variance from the statutory federal tax rate of 35.0% for both periods was primarily due to state income taxes and non-deductible items. On January 1, 2018, the Company adopted ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. As a result of income tax effects of the Tax Act, which reduced the corporate federal tax rate from 35.0% to 21.0%, the Company reclassified $0.2 million from accumulated other comprehensive income to retained earnings related to its net investment hedge. On December 22, 2017, the United States government enacted the Tax Act resulting in significant modifications to existing law. The Company follows the guidance in Securities and Exchange Commission Staff Accounting Bulletin ("SAB") 118, which provides additional clarification regarding the application of ASC Topic 740 in situations where the Company does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act for the reporting period in which the Tax Act was enacted. SAB 118 provides for a measurement period beginning in the reporting period that includes the Tax Act’s enactment date and ending when the Company has obtained, prepared, and analyzed the information needed in order to complete the accounting requirements but in no circumstance should the measurement period extend beyond one year from the enactment date. As of June 30, 2018, the Company has completed the accounting for the effects of the Tax Act except for the repricing of ending deferred taxes due to the reduction in the corporate tax rate and the impact of the one-time deemed repatriation transition tax on unrepatriated foreign earnings. As a result, the Company's financial statements reflect these effects of the Tax Act as provisional based on a reasonable estimate of the income tax effects. As of December 31, 2017, the Company had included a provisional reduction in deferred tax liability and corresponding provisional reduction in tax provision expense of $9.1 million in relation to the repricing of its ending deferred tax balance. The provisional amount was and is based on information currently available at that time, including estimated book to tax adjustments. As of June 30, 2018, the Company continues to gather and analyze information, including any future legislative tax developments at the federal or state jurisdictions, in order to complete the accounting for the repricing of the ending deferred balances. The Company has also included a provisional income tax payable in the amount of $0.2 million related to the one-time deemed repatriation transition tax on unrepatriated foreign earnings. The provisional amount is based on information currently available, including estimated tax earnings and profits and tax pools from foreign investments. In addition, the income tax payable has been calculated by electing out of the use of net operating losses in order to maximize the use of foreign tax credits. The Company has also estimated the state tax impact of the Tax Act. The Company continues to gather and analyze information, including historical adjustments to earnings and profits of foreign subsidiaries and the available elections, in order to complete the accounting for the effects of the estimated transition tax. Any future legislative tax developments at the federal or state jurisdictions will need to be examined for potential application. It is the intention of the Company to complete the necessary analysis within the measurement period. The Company considers the earnings of non-U.S. subsidiaries to be indefinitely invested outside the United States based on estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and the Company's specific plans for reinvestment of those subsidiary earnings. As required by the Tax Act, as of June 30, 2018 and December 31, 2017, the Company has recorded a provisional tax liability related to the U.S. federal income taxes of approximately $8.2 million and $10.2 million , respectively, of undistributed earnings of foreign subsidiaries indefinitely invested outside the United States. However, the Company has not recorded a deferred tax liability for state and foreign withholding taxes associated with the repatriation of those foreign earnings. If the Company decides to repatriate the foreign earnings, it would need to adjust its income tax provision in the period it determined that the earnings will no longer be indefinitely invested outside the United States. The Company has no present intention to repatriate any of its foreign earnings.

Segments

Segments	6 Months Ended
Segments	Jun. 30, 2018
Segment Reporting [Abstract]
Segments	Segments 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 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 distributes wallboard, metal framing, suspended ceiling systems and complementary and other products. Complementary and other products includes stucco and exterior insulation and finish systems, as well 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 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 and 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 June 30, 2018 2017 Net Sales Gross Profit Net Sales Gross Profit SBP $ 522,219 $ 146,267 $ 460,086 $ 130,729 MI 82,754 22,830 69,144 18,803 Consolidated $ 604,973 $ 169,097 $ 529,230 $ 149,532 Total gross profit $ 169,097 $ 149,532 Total operating expenses (146,126 ) (132,629 ) Interest expense (15,345 ) (14,876 ) Other income, net 57 95 Income before income taxes $ 7,683 $ 2,122 Six Months Ended June 30, 2018 2017 Net Sales Gross Profit Net Sales Gross Profit SBP $ 985,879 $ 280,704 $ 878,549 $ 253,155 MI 155,391 42,833 130,138 36,288 Consolidated $ 1,141,270 $ 323,537 $ 1,008,687 $ 289,443 Total gross profit $ 323,537 $ 289,443 Total operating expenses (287,439 ) (264,087 ) Interest expense (30,477 ) (30,125 ) Other income, net 124 13,384 Income before income taxes $ 5,745 $ 8,615 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 United States $ 537,819 $ 470,079 $ 1,010,760 $ 897,020 Canada 67,154 59,151 130,510 111,667 Total $ 604,973 $ 529,230 $ 1,141,270 $ 1,008,687 The following table sets forth property, plant and equipment, goodwill and intangibles by geographic area (in thousands): June 30, 2018 December 31, 2017 Property, plant and equipment, net United States $ 140,803 $ 135,330 Canada 15,197 16,078 Total property, plant and equipment, net $ 156,000 $ 151,408 Goodwill United States $ 439,906 $ 431,476 Canada 25,856 27,261 Total goodwill $ 465,762 $ 458,737 Intangibles, net United States $ 163,389 $ 182,070 Canada 6,349 7,700 Total intangibles, net $ 169,738 $ 189,770 The Company’s net sales by segment and major product line, and segment gross profit and gross margin, are as follows: Three Months Ended June 30, Change 2018 2017 $ % (dollars in thousands) SBP Segment Wallboard (1) $ 198,598 38.0 % $ 180,955 39.3 % $ 17,643 9.7 % Suspended ceiling systems 97,755 18.7 % 83,271 18.1 % 14,484 17.4 % Metal framing 91,476 17.5 % 72,404 15.7 % 19,072 26.3 % Complementary and other products 134,390 25.8 % 123,456 26.9 % 10,934 8.9 % Total SBP net sales $ 522,219 100.0 % $ 460,086 100.0 % $ 62,133 13.5 % MI Segment Total MI net sales (2) $ 82,754 100.0 % $ 69,144 100.0 % $ 13,610 19.7 % Total net sales $ 604,973 $ 529,230 $ 75,743 14.3 % Gross profit - SBP $ 146,267 $ 130,729 $ 15,538 11.9 % Gross profit - MI 22,830 18,803 4,027 21.4 % Total gross profit $ 169,097 $ 149,532 $ 19,565 13.1 % Gross margin - SBP 28.0 % 28.4 % (0.4 )% Gross margin - MI 27.6 % 27.2 % 0.4 % Total gross margin 28.0 % 28.3 % (0.3 )% (1) For the three months ended June 30, 2017, wallboard accessories have been reclassified from “Wallboard” to “Complementary and other products” to conform to the current year presentation. (2) MI contains sales from Commercial and industrial insulation and Non-insulation products. Six Months Ended June 30, Change 2018 2017 $ % (dollars in thousands) SBP Segment Wallboard (1) $ 379,251 38.5 % $ 349,195 39.7 % $ 30,056 8.6 % Suspended ceiling systems 183,933 18.7 % 155,988 17.8 % 27,945 17.9 % Metal framing 165,443 16.8 % 141,065 16.1 % 24,378 17.3 % Complementary and other products 257,252 26.0 % 232,301 26.4 % 24,951 10.7 % Total SBP net sales $ 985,879 100.0 % $ 878,549 100.0 % $ 107,330 12.2 % MI Segment Total MI net sales (2) $ 155,391 100.0 % $ 130,138 100.0 % $ 25,253 19.4 % Total net sales $ 1,141,270 $ 1,008,687 $ 132,583 13.1 % Gross profit - SBP $ 280,704 $ 253,155 $ 27,549 10.9 % Gross profit - MI 42,833 36,288 6,545 18.0 % Total gross profit $ 323,537 $ 289,443 $ 34,094 11.8 % Gross margin - SBP 28.5 % 28.8 % (0.3 )% Gross margin - MI 27.6 % 27.9 % (0.3 )% Total gross margin 28.3 % 28.7 % (0.4 )% (1) For the six months ended June 30, 2017, wallboard accessories have been reclassified from “Wallboard” to “Complementary and other products” to conform to the current year presentation. (2) MI contains sales from Commercial and industrial insulation and Non-insulation products.

Other Current Liabilities

Other Current Liabilities	6 Months Ended
Other Current Liabilities	Jun. 30, 2018
Other Liabilities Disclosure [Abstract]
Other Current Liabilities	Other Current Liabilities The balance of other current liabilities consisted of the following as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 Accrued expenses $ 5,617 $ 6,919 Accrued interest 17,709 18,093 Accrued other 16,695 16,081 Total other current liabilities $ 40,021 $ 41,093

Earnings Per Share

Earnings Per Share	6 Months Ended
Earnings Per Share	Jun. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share represents net income for the period, divided by the weighted average number of shares of common stock outstanding for the period. The following are the number of shares of common stock used to compute the basic and diluted earnings per share for each period: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Weighted average shares used in basic computations 42,893,498 42,865,407 42,886,867 40,084,730 Dilutive effect of stock options and restricted stock units 16,519 13,912 16,921 210 Weighted average shares used in diluted computations 42,910,017 42,879,319 42,903,788 40,084,940 For the three and six months ended June 30, 2018, there were approximately 66,000 and 177,000 shares, respectively, not included in the computation of diluted weighted average shares because their effect would have been antidilutive. For the three and six months ended June 30, 2017, there were approximately 83,000 and 96,000 shares, respectively, not included in the computation of diluted weighted average shares because their effect would have been antidilutive.

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On August 1, 2018, the Company acquired the operations and substantially all of the assets of Ciesco, Inc. and Commercial Specialty Supply LLC (collectively, "Ciesco"). Ciesco was a distributor of building materials with product offerings including wallboard, metal framing, insulation, lumber, exterior insulation and finishing systems, fasteners, tools and other related accessory products, which operated six branches in Pennsylvania and Virginia. On July 30, 2018, the Company submitted a conditional notice of redemption to the trustee and the holders of its Notes seeking to redeem all of the outstanding Notes on August 15, 2018, conditioned on the prior completion of a new $450.0 million term loan credit facility and ABL Credit Facility (together, the “New Credit Facility”). If the New Credit Facility has not been completed by August 15, 2018, the Company may delay the redemption until the condition is satisfied. If the redemption of the Notes is completed as expected, the Company expects to expense approximately $35.8 million of non-cash amortization related to deferred financing costs and a $23.7 million prepayment premium during the three months ending September 30, 2018.

Business and Basis of Present22

Business and Basis of Presentation (Policies)	6 Months Ended
Business and Basis of Presentation (Policies)	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [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 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, 2017, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2018 (the "2017 10-K").
Principles of Consolidation	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 ("SBP") and Mechanical Insulation ("MI"). Resources are allocated and performance is assessed by the Company's CEO, who is the Chief Operating Decision Maker ("CODM") .
Recently Adopted and Issued Accounting Standards	Recently Adopted Accounting Standards On January 1, 2018, the Company adopted new revenue recognition guidance, Accounting Standard Codification ("ASC") 606, Revenue from Contracts with Customers and all related amendments, using the modified retrospective method. The Company has concluded that the adoption did not have a material impact on its consolidated financial statements. Revenue Recognition - Revenue is recognized upon transfer of control of promised products to customers in an amount that reflects the consideration expected to be received in exchange for those products. The applicable shipping and handling costs invoiced to the customer are included in "Selling, general and administrative" expenses in the accompanying consolidated statements of operations. All revenue recognized is net of sales taxes collected, which are subsequently remitted to the appropriate government authorities. Performance Obligations - The performance obligation for product sales is met at a point in time, when the product is delivered and control is transferred to the customer. At inception of a contract with a customer, the price and quantity of goods are fixed. However, the Company offers discounts on terms and rebate incentives to select customers. The Company also gives customers the right to return eligible products. Disaggregation of Revenue - Refer to Note 12, Segments, for further information, including revenue by segment, by geography and by major product line. Contract Balances - The Company currently discloses its accounts receivable balances on the balance sheet. The Company does not have any contract assets due to the election of the practical expedient in Financial Accounting Standards Board ("FASB") ASC 340-40-25-4, which states an entity may recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. The Company does not have any material contract liabilities. The Company is also required to disclose revenue recognized in the reporting period from performance obligations satisfied in previous reporting periods. This guidance is consistent with existing guidance related to changes in accounting estimates. The Company will continue to monitor changes in estimates related to sales returns, customer discounts and customer rebates and will disclose them if material. Significant Judgments - The Company calculates the allowance for sales returns, early pay discounts and customer rebates using the expected value method and believes its current methodology properly constrains revenue. The Company does not believe that a significant reversal in the amount of cumulative revenue recognized will occur when the uncertainty associated with the variable consideration is resolved. Practical Expedients - In addition to the aforementioned practical expedient, the Company has elected the practical expedient as allowed by ASC 606-10-32-18, which states that an entity need not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects, at contract inception, that the period between when the entity transfers promised goods or services to a customer and when the customer pays for those goods or services will be one year or less. In January 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-01, Financial Instruments – 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 adopted this guidance on January 1, 2018, and it did not have a material impact on the Company’s 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. The Company adopted this guidance on January 1, 2018, and it did not have a material impact on the Company’s 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. The Company adopted this guidance on January 1, 2018, and it did not have a material impact on the Company’s consolidated financial statements. On January 1, 2018, the Company adopted ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. As a result of income tax effects of the Tax Cut and Jobs Act (the “Tax Act”), which reduced the corporate federal tax rate from 35.0% to 21.0%, the Company reclassified $0.2 million from accumulated other comprehensive income to retained earnings related to its net investment hedge. Recently Issued Accounting Standards 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; however, it does expect the adoption of this guidance to have a material impact 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 instead requires 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 does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
Acquisitions (Tables)	Jun. 30, 2018
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date for the acquisitions summarized above ("2018 acquisitions") (in thousands): Six Months Ended June 30, 2018 Assets acquired: Cash $ 671 Accounts receivable 3,320 Other receivables 448 Inventories 3,366 Prepaid and other current assets 146 Property and equipment 2,164 Goodwill 8,404 Intangible assets 4,200 Other assets 50 Total assets acquired 22,769 Liabilities assumed: Accounts payable (530 ) Accrued expenses and other current liabilities (348 ) Total liabilities assumed (878 ) Total net assets acquired $ 21,891

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
Goodwill and Intangible Assets (Tables)	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The change in goodwill from December 31, 2017, to June 30, 2018, consisted of the following (in thousands): Carrying Value Balance at December 31, 2017 $ 458,737 Goodwill acquired 8,404 Purchase price allocation adjustments (93 ) Impact of foreign exchange rates (1,286 ) Balance at June 30, 2018 $ 465,762
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 June 30, 2018, and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade names $ 15,980 $ (8,853 ) $ 7,127 $ 15,980 $ (7,283 ) $ 8,697 Customer relationships 260,349 (100,463 ) 159,886 256,650 (78,406 ) 178,244 Other intangible assets 3,656 (931 ) 2,725 3,640 (811 ) 2,829 $ 279,985 $ (110,247 ) $ 169,738 $ 276,270 $ (86,500 ) $ 189,770

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
Long-Term Debt (Tables)	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of Long-Term Debt	(in thousands) June 30, 2018 December 31, 2017 Senior secured notes $ 575,000 $ 575,000 Unamortized debt issuance costs - senior secured notes (35,832 ) (40,621 ) Revolving asset-based credit facility 94,075 47,486 Unamortized debt issuance costs - asset-based revolving credit facility (2,655 ) (3,164 ) $ 630,588 $ 578,701

Accumulated Other Comprehensi26

Accumulated Other Comprehensive (Loss) Income (Tables)	6 Months Ended
Accumulated Other Comprehensive (Loss) Income (Tables)	Jun. 30, 2018
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income	The components of accumulated other comprehensive income for the six months ended June 30, 2018 were as follows (in thousands): Cumulative unrealized foreign currency translation gain (loss) Unrealized (loss) gain on derivative, net of tax Total Balance at December 31, 2017 $ 3,863 $ (1,509 ) $ 2,354 Other comprehensive (loss) income (4,202 ) 2,259 (1,943 ) Balance at June 30, 2018 $ (339 ) $ 750 $ 411

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jun. 30, 2018
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 measured and recorded at fair value on a recurring basis at June 30, 2018 is as follows (in thousands): Fair Value Measurements as of June 30, 2018 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 assets Derivative asset (Note 3) $ — $ 1,047 $ — $ 1,047 The estimated carrying amount and fair value of the Company’s financial instruments measured and recorded at fair value on a recurring basis at December 31, 2017 is as follows (in thousands): Fair Value Measurements as of December 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 liabilities Derivative liability (Note 3) $ — $ (2,364 ) $ — $ (2,364 )
Schedule of Carrying Amount and Fair Value of Financial Instruments	The estimated carrying amount and fair value of the Company’s financial instruments for which fair value is only disclosed is as follows (in thousands): Fair Value Measurements as of June 30, 2018 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 $ 539,168 $ — $ 599,202 $ — $ 599,202

Segments (Tables)

Segments (Tables)	6 Months Ended
Segments (Tables)	Jun. 30, 2018
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 June 30, 2018 2017 Net Sales Gross Profit Net Sales Gross Profit SBP $ 522,219 $ 146,267 $ 460,086 $ 130,729 MI 82,754 22,830 69,144 18,803 Consolidated $ 604,973 $ 169,097 $ 529,230 $ 149,532 Total gross profit $ 169,097 $ 149,532 Total operating expenses (146,126 ) (132,629 ) Interest expense (15,345 ) (14,876 ) Other income, net 57 95 Income before income taxes $ 7,683 $ 2,122 Six Months Ended June 30, 2018 2017 Net Sales Gross Profit Net Sales Gross Profit SBP $ 985,879 $ 280,704 $ 878,549 $ 253,155 MI 155,391 42,833 130,138 36,288 Consolidated $ 1,141,270 $ 323,537 $ 1,008,687 $ 289,443 Total gross profit $ 323,537 $ 289,443 Total operating expenses (287,439 ) (264,087 ) Interest expense (30,477 ) (30,125 ) Other income, net 124 13,384 Income before income taxes $ 5,745 $ 8,615 The following table sets forth property, plant and equipment, goodwill and intangibles by geographic area (in thousands): June 30, 2018 December 31, 2017 Property, plant and equipment, net United States $ 140,803 $ 135,330 Canada 15,197 16,078 Total property, plant and equipment, net $ 156,000 $ 151,408 Goodwill United States $ 439,906 $ 431,476 Canada 25,856 27,261 Total goodwill $ 465,762 $ 458,737 Intangibles, net United States $ 163,389 $ 182,070 Canada 6,349 7,700 Total intangibles, net $ 169,738 $ 189,770
Schedule of Segment Reporting Information, by Segment	The following table provides information about the Company by geographic areas (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 United States $ 537,819 $ 470,079 $ 1,010,760 $ 897,020 Canada 67,154 59,151 130,510 111,667 Total $ 604,973 $ 529,230 $ 1,141,270 $ 1,008,687
Schedule of Revenue from External Customers by Products and Services	The Company’s net sales by segment and major product line, and segment gross profit and gross margin, are as follows: Three Months Ended June 30, Change 2018 2017 $ % (dollars in thousands) SBP Segment Wallboard (1) $ 198,598 38.0 % $ 180,955 39.3 % $ 17,643 9.7 % Suspended ceiling systems 97,755 18.7 % 83,271 18.1 % 14,484 17.4 % Metal framing 91,476 17.5 % 72,404 15.7 % 19,072 26.3 % Complementary and other products 134,390 25.8 % 123,456 26.9 % 10,934 8.9 % Total SBP net sales $ 522,219 100.0 % $ 460,086 100.0 % $ 62,133 13.5 % MI Segment Total MI net sales (2) $ 82,754 100.0 % $ 69,144 100.0 % $ 13,610 19.7 % Total net sales $ 604,973 $ 529,230 $ 75,743 14.3 % Gross profit - SBP $ 146,267 $ 130,729 $ 15,538 11.9 % Gross profit - MI 22,830 18,803 4,027 21.4 % Total gross profit $ 169,097 $ 149,532 $ 19,565 13.1 % Gross margin - SBP 28.0 % 28.4 % (0.4 )% Gross margin - MI 27.6 % 27.2 % 0.4 % Total gross margin 28.0 % 28.3 % (0.3 )% (1) For the three months ended June 30, 2017, wallboard accessories have been reclassified from “Wallboard” to “Complementary and other products” to conform to the current year presentation. (2) MI contains sales from Commercial and industrial insulation and Non-insulation products. Six Months Ended June 30, Change 2018 2017 $ % (dollars in thousands) SBP Segment Wallboard (1) $ 379,251 38.5 % $ 349,195 39.7 % $ 30,056 8.6 % Suspended ceiling systems 183,933 18.7 % 155,988 17.8 % 27,945 17.9 % Metal framing 165,443 16.8 % 141,065 16.1 % 24,378 17.3 % Complementary and other products 257,252 26.0 % 232,301 26.4 % 24,951 10.7 % Total SBP net sales $ 985,879 100.0 % $ 878,549 100.0 % $ 107,330 12.2 % MI Segment Total MI net sales (2) $ 155,391 100.0 % $ 130,138 100.0 % $ 25,253 19.4 % Total net sales $ 1,141,270 $ 1,008,687 $ 132,583 13.1 % Gross profit - SBP $ 280,704 $ 253,155 $ 27,549 10.9 % Gross profit - MI 42,833 36,288 6,545 18.0 % Total gross profit $ 323,537 $ 289,443 $ 34,094 11.8 % Gross margin - SBP 28.5 % 28.8 % (0.3 )% Gross margin - MI 27.6 % 27.9 % (0.3 )% Total gross margin 28.3 % 28.7 % (0.4 )% (1) For the six months ended June 30, 2017, wallboard accessories have been reclassified from “Wallboard” to “Complementary and other products” to conform to the current year presentation. (2) MI contains sales from Commercial and industrial insulation and Non-insulation products.

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	6 Months Ended
Other Current Liabilities (Tables)	Jun. 30, 2018
Other Liabilities Disclosure [Abstract]
Schedule of Other Current Liabilities	The balance of other current liabilities consisted of the following as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 Accrued expenses $ 5,617 $ 6,919 Accrued interest 17,709 18,093 Accrued other 16,695 16,081 Total other current liabilities $ 40,021 $ 41,093

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
Earnings Per Share (Tables)	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following are the number of shares of common stock used to compute the basic and diluted earnings per share for each period: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Weighted average shares used in basic computations 42,893,498 42,865,407 42,886,867 40,084,730 Dilutive effect of stock options and restricted stock units 16,519 13,912 16,921 210 Weighted average shares used in diluted computations 42,910,017 42,879,319 42,903,788 40,084,940

Business and Basis of Present31

Business and Basis of Presentation (Details) $ / shares in Units, $ in Millions	Feb. 24, 2017shares	Feb. 15, 2017USD ($)$ / sharesshares	Jun. 30, 2018employeesegmentlocation$ / shares	Dec. 31, 2017$ / shares
Class of Stock [Line Items]
Proceeds from issuance of stock \| $		$ 164
Common stock par value (in dollars per share) \| $ / shares		$ 13,000	$ 0.001	$ 0.001
Number of reportable segments \| segment			2
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
Parent 2 \| Over-Allotment Option
Class of Stock [Line Items]
Options exercised by underwriters to purchase additional shares (in shares) \| shares	1,920,000
U.S. and Canada
Class of Stock [Line Items]
Number of employees (more than) \| employee			3,700
Number of branch locations (more than) \| location			220

Recently Issued Accounting St32

Recently Issued Accounting Standards (Details) - USD ($) $ in Millions	Jan. 01, 2018	Jun. 30, 2018
Accounting Policies [Abstract]
Reclassification from accumulated other comprehensive income to retained earnings	$ 0.2	$ 0.2

Derivatives and Hedging Activ33

Derivatives and Hedging Activities (Details) - USD ($)	3 Months Ended		6 Months Ended
Derivatives and Hedging Activities (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Aug. 09, 2016
Derivative [Line Items]
Net of tax effect on unrealized loss on derivatives	$ 400,000	$ (600,000)	$ 1,000,000	$ (900,000)
Percentage of option to prepay in equity offerings (up to)			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%
Fair value of embedded derivative liability	0		$ 0		$ 0
Other Operating Income (Expense)
Derivative [Line Items]
Change in fair value in amount included as other income (expense)	0	0	0	13,200,000
Designated as Hedging Instrument \| Foreign Exchange Contract
Derivative [Line Items]
Notional foreign exchange contract outstanding	88,000,000		88,000,000		88,000,000
Gain (loss) related to related to the ineffective portion of the net investment hedge	1,100,000	(900,000)	2,300,000	(1,400,000)
Net of tax effect on unrealized loss on derivatives	400,000	(600,000)	1,000,000	(900,000)
Designated as Hedging Instrument \| Foreign Exchange Contract \| Other Noncurrent Assets
Derivative [Line Items]
Fair value asset of derivative instrument	1,000,000		1,000,000
Designated as Hedging Instrument \| Foreign Exchange Contract \| Other Noncurrent Liabilities
Derivative [Line Items]
Fair value liability of derivative instrument					$ 2,400,000
Designated as Hedging Instrument \| Foreign Exchange Contract \| Other Operating Income (Expense)
Derivative [Line Items]
Gain (loss) related to related to the ineffective portion of the net investment hedge	60,000,000,000		135,000,000,000
Ineffective portion of loss		$ 64,000		$ 95,000
Senior Notes \| Senior Secured Notes Due 2021
Derivative [Line Items]
Principal amount of debt	$ 575,000,000		$ 575,000,000			$ 575,000,000
Percentage of option to prepay principal amount (equal to)			100.00%

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) $ in Millions	6 Months Ended
Acquisitions - Narrative (Details) $ in Millions	Jun. 30, 2018USD ($)acquisition	Feb. 01, 2018branch
Business Acquisition [Line Items]
Number of acquisitions \| acquisition	2
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Purchase price of acquisitions \| $	$ 21.9
Minnesota, North Dakota, South Dakota and Nebraska \| ArmCom Distributing Company
Business Acquisition [Line Items]
Number of branch locations		5
Wentzville and Herculaneum, Missouri \| R M Supply, Inc.
Business Acquisition [Line Items]
Number of branch locations		2

Acquisitions - Schedule of Reco

Acquisitions - Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets acquired:
Goodwill	$ 465,762	$ 458,737
Series of Individually Immaterial Business Acquisitions
Assets acquired:
Cash	671
Accounts receivable	3,320
Other receivables	448
Inventories	3,366
Prepaid and other current assets	146
Property and equipment	2,164
Goodwill	8,404
Intangible assets	4,200
Other assets	50
Total assets acquired	22,769
Liabilities assumed:
Accounts payable	(530)
Accrued expenses and other current liabilities	(348)
Total liabilities assumed	(878)
Total net assets acquired	$ 21,891

Goodwill and Intangible Asset36

Goodwill and Intangible Assets - Schedule of Change in Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 458,737
Goodwill acquired	8,404
Purchase price allocation adjustments	(93)
Impact of foreign exchange rates	(1,286)
Ending balance	$ 465,762

Goodwill and Intangible Asset37

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Goodwill	$ 465,762	$ 458,737
Weighted average amortization period	3 years 10 months 24 days
Specialty Building Products
Segment Reporting Information [Line Items]
Goodwill	$ 459,900	452,800
Mechanical Insulation
Segment Reporting Information [Line Items]
Goodwill	$ 5,900	$ 5,900

Goodwill and Intangible Asset38

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 279,985	$ 276,270
Accumulated Amortization	(110,247)	(86,500)
Net Carrying Amount	169,738	189,770
Trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	15,980	15,980
Accumulated Amortization	(8,853)	(7,283)
Net Carrying Amount	7,127	8,697
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	260,349	256,650
Accumulated Amortization	(100,463)	(78,406)
Net Carrying Amount	159,886	178,244
Other intangible assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,656	3,640
Accumulated Amortization	(931)	(811)
Net Carrying Amount	$ 2,725	$ 2,829

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Line of Credit Facility [Line Items]
Long-term debt	$ 630,588	$ 578,701
Senior secured notes \| Senior Secured Notes Due 2021
Line of Credit Facility [Line Items]
Senior secured notes	575,000	575,000
Unamortized debt issuance costs	(35,832)	(40,621)
Revolving asset-based credit facility \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Senior secured notes	94,075	47,486
Unamortized debt issuance costs	$ (2,655)	$ (3,164)

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - USD ($)	Aug. 09, 2016	Jun. 30, 2018	Sep. 23, 2016
Debt Instrument [Line Items]
Redemption price percentage		108.25%
Senior Notes \| Senior Secured Notes Due 2021
Debt Instrument [Line Items]
Principal amount of debt	$ 575,000,000	$ 575,000,000
Interest rate, stated percentage	8.25%
Interest rate during period	100.00%
Senior Notes \| Senior Secured Notes Due 2021 \| Debt Instrument, Redemption, Due Before August 15, 2018
Debt Instrument [Line Items]
Redemption price percentage	100.00%
Senior Notes \| Senior Secured Notes Due 2021 \| Debt Instrument, Redemption, Period One Due Before August 15, 2018
Debt Instrument [Line Items]
Redemption price percentage	40.00%
Senior Notes \| Senior Secured Notes Due 2021 \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price percentage	108.25%
Senior Notes \| Senior Secured Notes Due 2021 \| Debt Instrument, Change of Control, Period
Debt Instrument [Line Items]
Redemption price percentage	101.00%
Revolving Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 75,000,000	250,000,000	$ 300,000,000
Commitment fee percentage	0.25%
Periodic payment		75,000
Additional borrowing capacity			$ 50,000,000
Outstanding borrowings		94,100,000
Available aggregate undrawn borrowing capacity		$ 205,900,000
Weighted average interest rate during period		3.30%
Revolving Credit Facility \| Line of Credit \| Minimum
Debt Instrument [Line Items]
Commitment fee percentage	0.25%
Revolving Credit Facility \| Line of Credit \| Maximum
Debt Instrument [Line Items]
Commitment fee percentage	0.375%
Revolving Credit Facility \| Line of Credit \| Eurodollar
Debt Instrument [Line Items]
Margin rate, percentage		1.50%
Fronting fee		0.125%
Revolving Credit Facility \| Line of Credit \| Eurodollar \| Minimum
Debt Instrument [Line Items]
Margin rate, percentage	1.25%
Revolving Credit Facility \| Line of Credit \| Eurodollar \| Maximum
Debt Instrument [Line Items]
Margin rate, percentage	1.75%
Revolving Credit Facility \| Line of Credit \| Base Rate \| Minimum
Debt Instrument [Line Items]
Margin rate, percentage	0.25%
Revolving Credit Facility \| Line of Credit \| Base Rate \| Maximum
Debt Instrument [Line Items]
Margin rate, percentage	0.75%

Tax Receivable Agreement Liab41

Tax Receivable Agreement Liability (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Dec. 31, 2017	Jun. 30, 2018
Income Tax Contingency [Line Items]
Reduction in federal, state, local and non-US income taxes (in percentage)		90.00%
Liability for tax receivable agreement		$ 203.8
Gain in other income, net from tax items	$ 68
Liability for tax receivable agreement balance	135.8	135.8
Current Liability
Income Tax Contingency [Line Items]
Liability for tax receivable agreement	$ 15.9	$ 15.9

Accumulated Other Comprehensi42

Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 378,664			$ 378,664
Other comprehensive (loss) income		$ (735)	$ 1,146	(1,943)	$ 1,258
Ending balance		382,130		382,130
Reclassification from accumulated other comprehensive income to retained earnings	200			200
Cumulative unrealized foreign currency translation gain (loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	3,863			3,863
Other comprehensive (loss) income				(4,202)
Ending balance		(339)		(339)
Unrealized (loss) gain on derivative, net of tax
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,509)			(1,509)
Other comprehensive (loss) income				2,259
Ending balance		750		750
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 2,354			2,354
Ending balance		$ 411		$ 411

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	Jan. 01, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Effective income tax rates (in percentage)		29.70%	40.60%	24.30%	39.80%
Reclassification from accumulated other comprehensive income to retained earnings	$ 0.2			$ 0.2
Repricing of deferred tax balance						$ 9.1
Provisional income tax payable	$ 0.2
Provisional income tax expense		$ 8.2		$ 8.2		$ 10.2

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	Jun. 30, 2018	Dec. 31, 2017
Non-current liabilities
Derivative asset	$ 1,047
Derivative Liability		$ (2,364)
Quoted Prices in Active Markets for Identical Assets (Level 1)
Non-current liabilities
Derivative asset	0
Derivative Liability		0
Significant Other Observable Inputs (Level 2)
Non-current liabilities
Derivative asset	1,047
Derivative Liability		(2,364)
Significant Unobservable Inputs (Level 3)
Non-current liabilities
Derivative asset	$ 0
Derivative Liability		$ 0

Fair Value Measurements - Sch45

Fair Value Measurements - Schedule of Liabilities Measured on a Recurring Basis (Details) $ in Thousands	Jun. 30, 2018USD ($)
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior secured notes	$ 539,168
Total Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior secured notes	599,202
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	599,202
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

Segments - Narrative (Details)

Segments - Narrative (Details)	6 Months Ended
Segments - Narrative (Details)	Jun. 30, 2018segment
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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Net sales	$ 604,973	$ 529,230	$ 1,141,270	$ 1,008,687
Gross Profit	169,097	149,532	323,537	289,443
Total operating expenses	(146,126)	(132,629)	(287,439)	(264,087)
Interest expense	(15,345)	(14,876)	(30,477)	(30,125)
Other income, net	57	95	124	13,384
Income before income taxes	7,683	2,122	5,745	8,615
SBP
Segment Reporting Information [Line Items]
Net sales	522,219	460,086	985,879	878,549
Gross Profit	146,267	130,729	280,704	253,155
MI
Segment Reporting Information [Line Items]
Net sales	82,754	69,144	155,391	130,138
Gross Profit	$ 22,830	$ 18,803	$ 42,833	$ 36,288

Segments - Sales by Geographic

Segments - Sales by Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Revenues by geographic areas	$ 604,973	$ 529,230	$ 1,141,270	$ 1,008,687
United States
Segment Reporting Information [Line Items]
Revenues by geographic areas	537,819	470,079	1,010,760	897,020
Canada
Segment Reporting Information [Line Items]
Revenues by geographic areas	$ 67,154	$ 59,151	$ 130,510	$ 111,667

Segments - Assets by Area (Deta

Segments - Assets by Area (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Property, plant and equipment, net	$ 156,000	$ 151,408
Goodwill	465,762	458,737
Intangibles, net	169,738	189,770
United States
Segment Reporting Information [Line Items]
Property, plant and equipment, net	140,803	135,330
Goodwill	439,906	431,476
Intangibles, net	163,389	182,070
Canada
Segment Reporting Information [Line Items]
Property, plant and equipment, net	15,197	16,078
Goodwill	25,856	27,261
Intangibles, net	$ 6,349	$ 7,700

Segments - Schedule of Net Sale

Segments - Schedule of Net Sales From External Customers (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue from External Customer [Line Items]
Net sales	$ 604,973	$ 529,230	$ 1,141,270	$ 1,008,687
Change in Net Sales	$ 75,743		$ 132,583
Percentage Change in Net Sales	14.30%		13.14412%
Gross Profit	$ 169,097	$ 149,532	$ 323,537	$ 289,443
Change in Gross Profit	$ 19,565		$ 34,094
Percentage Change in Gross Profit	13.10%		11.77918%
Gross Margin Percentage	28.00%	28.30%	28.30%	28.70%
Percentage Change in Gross Margin	(0.30%)		(0.40%)
SBP
Revenue from External Customer [Line Items]
Net sales	$ 522,219	$ 460,086	$ 985,879	$ 878,549
Percentage of Net Sales	100.00%	100.00%	100.00%	100.00%
Change in Net Sales	$ 62,133		$ 107,330
Percentage Change in Net Sales	13.50%		12.21673%
Gross Profit	$ 146,267	$ 130,729	$ 280,704	$ 253,155
Change in Gross Profit	$ 15,538		$ 27,549
Percentage Change in Gross Profit	11.90%		10.88227%
Gross Margin Percentage	28.00%	28.40%	28.50%	28.80%
Percentage Change in Gross Margin	(0.40%)		(0.30%)
SBP \| Wallboard
Revenue from External Customer [Line Items]
Net sales	$ 198,598	$ 180,955	$ 379,251	$ 349,195
Percentage of Net Sales	38.00%	39.30%	38.50%	39.70%
Change in Net Sales	$ 17,643		$ 30,056
Percentage Change in Net Sales	9.70%		8.60723%
SBP \| Suspended ceiling systems
Revenue from External Customer [Line Items]
Net sales	$ 97,755	$ 83,271	$ 183,933	$ 155,988
Percentage of Net Sales	18.70%	18.10%	18.70%	17.80%
Change in Net Sales	$ 14,484		$ 27,945
Percentage Change in Net Sales	17.40%		17.91484%
SBP \| Metal framing
Revenue from External Customer [Line Items]
Net sales	$ 91,476	$ 72,404	$ 165,443	$ 141,065
Percentage of Net Sales	17.50%	15.70%	16.80%	16.10%
Change in Net Sales	$ 19,072		$ 24,378
Percentage Change in Net Sales	26.30%		17.2814%
SBP \| Complementary and other products
Revenue from External Customer [Line Items]
Net sales	$ 134,390	$ 123,456	$ 257,252	$ 232,301
Percentage of Net Sales	25.80%	26.90%	26.00%	26.40%
Change in Net Sales	$ 10,934		$ 24,951
Percentage Change in Net Sales	8.90%		10.74081%
Mechanical Insulation
Revenue from External Customer [Line Items]
Net sales	$ 82,754	$ 69,144	$ 155,391	$ 130,138
Percentage of Net Sales	100.00%	100.00%	100.00%	100.00%
Change in Net Sales	$ 13,610		$ 25,253
Percentage Change in Net Sales	19.70%		19.40%
Gross Profit	$ 22,830	$ 18,803	$ 42,833	$ 36,288
Change in Gross Profit	$ 4,027		$ 6,545
Percentage Change in Gross Profit	21.40%		18.03627%
Gross Margin Percentage	27.60%	27.20%	27.60%	27.90%
Percentage Change in Gross Margin	0.40%		(0.30%)

Other Current Liabilities (Deta

Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Accrued expenses	$ 5,617	$ 6,919
Accrued interest	17,709	18,093
Accrued other	16,695	16,081
Total other current liabilities	$ 40,021	$ 41,093

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended		12 Months Ended
Earnings Per Share (Details) - shares	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Earnings Per Share [Abstract]
Weighted average shares used in basic computations (in shares)	42,893,498	42,865,407	42,886,867	40,084,730
Dilutive effect of stock options and restricted stock units (in shares)	16,519	13,912	16,921	210
Weighted average shares used in diluted computations (in shares)	42,910,017	42,879,319	42,903,788	40,084,940
Antidilutive securities excluded from computation of weighted average common shares (in shares)	66,000	83,000		96,000	177,000

Subsequent Events (Details)

Subsequent Events (Details)	3 Months Ended
Subsequent Events (Details)	Sep. 30, 2018USD ($)	Aug. 01, 2018branch	Jul. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Sep. 23, 2016USD ($)	Aug. 09, 2016USD ($)
Scenario, Forecast \| Subsequent Event
Subsequent Event [Line Items]
Non-cash amortization related to deferred financing costs	$ 35,800,000
Prepayment premium related to redemption of notes	$ 23,700,000
Revolving Credit Facility \| Line of Credit
Subsequent Event [Line Items]
Maximum borrowing capacity				$ 250,000,000	$ 300,000,000	$ 75,000,000
Revolving Credit Facility \| Line of Credit \| Subsequent Event
Subsequent Event [Line Items]
Maximum borrowing capacity			$ 450,000,000
Ciesco \| Pennsylvania and Virginia \| Subsequent Event
Subsequent Event [Line Items]
Number of branch locations \| branch		6