Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-13429 | |
Entity Registrant Name | SIMPSON MANUFACTURING CO INC /CA/ | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3196943 | |
Entity Address, Address | 5956 W. Las Positas Blvd. | |
Entity Address, City or Town | Pleasanton | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94588 | |
City Area Code | 925 | |
Local Phone Number | 560-9000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | SSD | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 44,327,218 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Entity Central Index Key | 0000920371 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Current assets | |||
Cash and cash equivalents | $ 194,061 | $ 160,180 | $ 166,961 |
Trade accounts receivable, net | 180,898 | 146,052 | 192,981 |
Inventories | 242,730 | 276,088 | 279,503 |
Assets held-for-sale | 0 | 0 | 9,251 |
Other current assets | 17,565 | 17,209 | 12,220 |
Total current assets | 635,254 | 599,529 | 660,916 |
Property, plant and equipment, net | 250,950 | 254,597 | 257,679 |
Operating lease right-of-use assets | 34,463 | ||
Goodwill | 131,191 | 130,250 | 136,459 |
Equity investment | 2,485 | 2,487 | 2,498 |
Intangible assets, net | 21,816 | 24,402 | 25,457 |
Other noncurrent assets | 10,149 | 10,398 | 11,604 |
Total Assets | 1,086,308 | 1,021,663 | 1,094,613 |
Current liabilities | |||
Trade accounts payable | 40,861 | 34,361 | 42,734 |
Accrued liabilities and other current liabilities | 125,006 | 117,219 | 124,717 |
Total current liabilities | 165,867 | 151,580 | 167,451 |
Operating lease liabilities | 27,256 | ||
Deferred income tax and other long-term liabilities | 16,238 | 14,569 | 13,743 |
Total liabilities | 209,361 | 166,149 | 181,194 |
Commitments and contingencies (see Note 12) | |||
Stockholders’ equity | |||
Common stock, at par value | 446 | 453 | 462 |
Additional paid-in capital | 278,898 | 276,504 | 274,126 |
Retained Earnings | 649,053 | 628,207 | 686,351 |
Treasury stock | (21,437) | (25,000) | (24,491) |
Accumulated other comprehensive loss | (30,013) | (24,650) | (23,029) |
Total stockholders’ equity | 876,947 | 855,514 | 913,419 |
Total liabilities and stockholders’ equity | $ 1,086,308 | $ 1,021,663 | $ 1,094,613 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 309,932 | $ 284,178 | $ 874,029 | $ 836,964 |
Cost of sales | 172,288 | 150,282 | 491,952 | 454,881 |
Gross profit | 137,644 | 133,896 | 382,077 | 382,083 |
Operating expenses: | ||||
Research and development and other engineering | 11,972 | 10,441 | 35,287 | 32,840 |
Selling | 27,672 | 26,879 | 84,471 | 83,653 |
General and administrative | 37,047 | 37,358 | 117,941 | 113,565 |
Total operating expenses | 76,691 | 74,678 | 237,699 | 230,058 |
Net gain on disposal of assets | (14) | (460) | (265) | (1,769) |
Income from operations | 60,967 | 59,678 | 144,643 | 153,794 |
Interest income (expense), net and other | (1,778) | 1,156 | (2,394) | 284 |
Income before taxes | 59,189 | 60,834 | 142,249 | 154,078 |
Provision for income taxes | 15,503 | 16,473 | 36,324 | 40,202 |
Net income | 43,686 | 44,361 | 105,925 | 113,876 |
Translation adjustment | (5,797) | 2,950 | (5,825) | 10,533 |
Unamortized pension adjustments | (362) | 0 | (462) | 0 |
Comprehensive net income | $ 49,121 | $ 41,411 | $ 111,288 | $ 103,343 |
Earnings per common share: | ||||
Basic | $ 0.98 | $ 0.96 | $ 2.37 | $ 2.46 |
Diluted | $ 0.97 | $ 0.95 | $ 2.35 | $ 2.43 |
Number of shares outstanding | ||||
Basic | 44,477 | 46,192 | 44,673 | 46,375 |
Diluted | 44,814 | 46,622 | 44,995 | 46,770 |
Cash dividends declared per common share (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.68 | $ 0.65 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Balance at Dec. 31, 2017 | $ 884,778 | $ 473 | $ 260,157 | $ 676,644 | $ (12,496) | $ (40,000) |
Balance (in shares) at Dec. 31, 2017 | 46,745 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 113,876 | 113,876 | ||||
Translation adjustment, net of tax | (10,533) | (10,533) | ||||
Options exercised | 695 | $ 0 | 695 | |||
Options exercised (in shares) | 23 | |||||
Stock-based compensation | 7,939 | 7,939 | ||||
Shares issued from release of Restricted Stock Units | (5,128) | $ 2 | (5,130) | |||
Shares issued from release of Restricted Stock Units (in shares) | 177 | |||||
Repurchase of common stock | (49,490) | 10,000 | (59,490) | |||
Repurchase of common stock (in shares) | (985) | |||||
Retirement of common stock | 0 | $ (13) | (74,986) | 74,999 | ||
Cash dividends declared on common stock | (29,974) | (29,974) | ||||
Common stock issued | 465 | 465 | ||||
Common stock issued (in shares) | 8 | |||||
Balance at Sep. 30, 2018 | 913,419 | $ 462 | 274,126 | 686,351 | (23,029) | (24,491) |
Balance (in shares) at Sep. 30, 2018 | 45,968 | |||||
Balance at Dec. 31, 2017 | 884,778 | $ 473 | 260,157 | 676,644 | (12,496) | (40,000) |
Balance (in shares) at Dec. 31, 2017 | 46,745 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 12,757 | 12,757 | ||||
Translation adjustment, net of tax | (2,378) | (2,378) | ||||
Pension adjustment, net of tax | 376 | 376 | ||||
Stock-based compensation | 2,395 | 2,395 | ||||
Adoption of new accounting standards | (381) | 381 | ||||
Shares issued from release of Restricted Stock Units | (17) | $ 0 | (17) | |||
Shares issued from release of Restricted Stock Units (in shares) | 0 | |||||
Repurchase of common stock | (61,050) | 0 | (61,050) | |||
Repurchase of common stock (in shares) | (970) | |||||
Retirement of common stock | 0 | $ (9) | (60,532) | 60,541 | ||
Cash dividends declared on common stock | (9,988) | (9,988) | ||||
Balance at Dec. 31, 2018 | 855,514 | $ 453 | 276,504 | 628,207 | (24,650) | (25,000) |
Balance (in shares) at Dec. 31, 2018 | 44,998 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 105,925 | 105,925 | ||||
Translation adjustment, net of tax | 5,825 | (5,825) | ||||
Pension adjustment, net of tax | 462 | 462 | ||||
Stock-based compensation | 8,007 | 8,007 | ||||
Shares issued from release of Restricted Stock Units | (5,903) | $ 2 | (5,905) | |||
Shares issued from release of Restricted Stock Units (in shares) | 178 | |||||
Repurchase of common stock | (51,437) | 0 | (51,437) | |||
Repurchase of common stock (in shares) | (854) | |||||
Retirement of common stock | 0 | $ (9) | (54,991) | 55,000 | ||
Cash dividends declared on common stock | (30,088) | (30,088) | ||||
Common stock issued | 292 | 292 | ||||
Common stock issued (in shares) | 5 | |||||
Balance at Sep. 30, 2019 | $ 876,947 | $ 446 | $ 278,898 | $ 649,053 | $ (30,013) | $ (21,437) |
Balance (in shares) at Sep. 30, 2019 | 44,327 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared per common share (in dollars per share) | $ 0.68 | $ 0.65 |
Common stock issued per share for stock bonus (in USD per share) | $ 54.31 | $ 57.41 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 105,925 | $ 113,876 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on sale of assets and other | (263) | (1,716) |
Depreciation and amortization | 29,044 | 29,049 |
Noncash lease expense | 5,278 | |
Deferred income taxes and other long-term liabilities | 2,262 | 2,061 |
Noncash compensation related to stock plans | 8,699 | 8,773 |
Provision of doubtful accounts | 435 | 361 |
Foreign exchange gain on capital repatriation | 0 | (1,604) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Trade accounts receivable | (36,385) | (58,678) |
Inventories | 31,163 | (29,233) |
Trade accounts payable | 8,130 | 14,254 |
Other current assets | (3,197) | 5,099 |
Accrued liabilities and other current liabilities | 3,452 | 26,356 |
Other noncurrent assets and liabilities | (5,308) | (629) |
Net cash provided by operating activities | 149,235 | 107,969 |
Cash flows from investing activities | ||
Capital expenditures | (24,495) | (24,714) |
Asset acquisitions, net of cash acquired | (3,529) | 0 |
Proceeds from sale of property and equipment | 2,498 | 3,539 |
Net cash used in investing activities | (25,526) | (21,175) |
Cash flows from financing activities | ||
Repurchase of common stock | (51,437) | (49,490) |
Proceeds from line of credit | 13,308 | 0 |
Repayments of line of credit and capital leases | (14,335) | (702) |
Issuance of common stock for exercise of options | 0 | 695 |
Dividends paid | (30,002) | (29,738) |
Cash paid on behalf of employees for shares withheld | (5,905) | (5,128) |
Net cash used in financing activities | (88,371) | (84,363) |
Effect of exchange rate changes on cash and cash equivalents | (1,457) | (3,984) |
Net increase (decrease) in cash and cash equivalents | 33,881 | (1,553) |
Cash and cash equivalents at beginning of period | 160,180 | 168,514 |
Cash and cash equivalents at end of period | 194,061 | 166,961 |
Noncash activity during the period | ||
Noncash capital expenditures | 194 | 212 |
Dividends declared but not paid | 10,162 | 10,134 |
Issuance of Company’s common stock for compensation | $ 292 | $ 465 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Simpson Manufacturing Co., Inc. and its subsidiaries (collectively, the “Company”). Investments in 50% or less owned entities are accounted for using either cost or the equity method. All significant intercompany transactions have been eliminated. Interim Reporting Period The accompanying unaudited quarterly condensed consolidated financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These interim statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the “2018 Form 10-K”). The unaudited quarterly condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial information set forth therein in accordance with GAAP. Certain prior period amounts in the condensed consolidated financial statements and the accompanying notes have been reclassified to conform to the current period’s presentation. The year-end condensed consolidated balance sheet data provided herein were derived from audited financial statements included in the 2018 Form 10-K, but do not include all disclosures required by GAAP. The Company’s quarterly results fluctuate. As a result, the Company believes the results of operations for this interim period presented are not indicative of the results to be expected for any future periods. The Company changed its presentation of its Consolidated Statement of Earnings and Comprehensive Income to display non-operating activities, including foreign exchange gain (loss), and certain other income or expenses as a separate line item below income from operations. Foreign exchange gain (loss), and other was previously included in general and administrative expenses and in income from operations. The change did not affect income before taxes and net income as previously presented for the three months and nine months ended September 30, 2018 . Revenue Recognition Generally, the Company's revenue contract with a customer exists when the goods are shipped, services are rendered; and its related invoice is generated. The duration of the contract does not extend beyond the promised goods or services already transferred. The transaction price of each distinct promised product or service specified in the invoice is based on its relative stated standalone selling price. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer at a point in time. The Company’s shipping terms provide the primary indicator of the transfer of control. The Company's general shipping terms are F.O.B. shipping point, where title and risk and rewards of ownership transfer at the point when the products leave the Company's warehouse. The Company recognizes revenue based on the consideration specified in the invoice with a customer, excluding any sales incentives, discounts, and amounts collected on behalf of third parties (i.e., governmental tax authorities). Based on historical experience with the customer, the customer's purchasing pattern and its significant experience selling products, the Company concluded that a significant reversal in the cumulative amount of revenue recognized will not occur when the uncertainty (if any) is resolved (that is, when the total amount of purchases is known). Refer to Note 2 for additional information. Net Income Per Common Share The Company calculates net income per common share based on the weighted-average number of the Company's common stock outstanding during the period. Potentially dilutive securities are included in the diluted per-share calculations using the treasury stock method for all periods when the effect is dilutive. Accounting for Leases The Company has operating and finance leases for certain facilities, equipment, autos and data centers. As an accounting policy for short-term leases, the Company elected to not recognize the right-of-use asset and liability, if, at the commencement date, the lease (1) has a term of 12 months or less and (2) does not include renewal and purchase options that the Company is reasonably certain to exercise. Monthly payments on short-term leases are recognized on the straight-line basis over the full lease term. Accounting for Stock-Based Compensation The Company recognizes stock-based expense related to restricted stock unit awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally a vesting term of four years. Stock-based expense related to performance share grants are measured based on the grant date fair value and expensed on a graded basis over the service periods of the awards, which is generally a performance period of three years. The assumptions used to calculate the fair value of options or restricted stock units are evaluated and revised, as necessary, to reflect market conditions and the Company's experience. Fair Value of Financial Instruments Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified under a three-tier fair valuation hierarchy based on the observability of the inputs available in the market: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As of September 30, 2019 and 2018 , the Company’s investments included in cash equivalents consisted of only money market funds, which are the Company’s primary financial instruments and carried at cost, approximating fair value, based on Level 1 inputs. The balance of the Company’s primary financial instruments as of September 30, 2019 and 2018 was $0.1 million and $7.6 million , respectively. The carrying amounts of trade accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. The fair value of the Company’s contingent consideration related to acquisitions is classified as Level 3 within the fair value hierarchy as it is based on unobserved inputs such as management estimates and entity-specific assumptions and is evaluated on an ongoing basis. Income Taxes The Company uses an estimated annual tax rate to measure the tax benefit or tax expense recognized in each interim period. Acquisitions Under the business combinations topic ASC 805, the Company accounts for acquisitions as business combinations and ascribes acquisition-date fair values to the acquired assets and assumed liabilities. Provisional fair value measurements are made at the time of the acquisition. Adjustments to those measurements may be made in subsequent periods, up to one year from the acquisition date, as information necessary to complete the analysis is obtained. The fair value of intangible assets are generally based on Level 3 inputs. Accounting Standards - To Be Adopted In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326 ): Measurement of Credit Losses on Financial Instruments. ” ASU 2016-13 amendments provide guidance on accounting for current expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. The required measurement methodology is based on expected loss model that includes historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 eliminates the probable incurred loss recognition in current GAAP. ASU 2016-13 is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is evaluating the impact of the adoption of this new accounting guidance on its consolidated financial statements. Accounting Standards - Recently Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). The core requirement of ASU 2016-02 is to recognize assets and liabilities that arise from leases, including those leases classified as operating leases. The amendments require a lessee to recognize a liability to make lease payments (the lease liability) and a right-of-use asset ("ROU") representing its right to use the underlying asset for the lease term in the statement of financial position. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. On January 1, 2019, the Company adopted ASU 2016-02 using the optional transition method. The Company elected and applied a few practical transition expedients including, not reassessing whether any expired or existing contracts are or contain leases; not reassessing the lease classification for any expired or existing leases and not reassessing initial direct costs for any existing leases. The Company has operating and finance leases for certain facilities, equipment, autos and data centers. The adoption of ASU 2016-02 resulted in the recognition of ROU assets and lease liabilities of approximately $34.3 million and $35.1 million , respectively on January 1, 2019. The adoption had no material impact on the condensed consolidated statement of operations or cash flows. See Note 10. All other issued and effective accounting standards during the third quarter of 2019 |
Revenue from Contract with Cust
Revenue from Contract with Customer Revenue from Contract with Customer | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers Disaggregated revenue The Company disaggregates net sales into the following major product groups as described in the footnote for segment information included in these interim financial statements under Note 13. Wood Construction Products Revenue . Wood construction products represented 84% and 85% of total net sales in the nine months ended September 30, 2019 and 2018 , respectively. Concrete Construction Products Revenue. Concrete construction products represented 16% and 15% of total net sales in the nine months ended September 30, 2019 and 2018 , respectively . Customer acceptance criteria. Generally, there are no customer acceptance criteria included in the Company's standard sales agreement with customers. When an arrangement with the customer does not meet the criteria to be accounted for as a revenue contract under the standard, the Company recognizes revenue in the amount of nonrefundable consideration received when the Company has transferred control of the goods or services and has stopped transferring (and has no obligation to transfer) additional goods or services. The Company offers certain customers discounts for paying invoices ahead of the due date, which are generally between 30 to 60 days after the issue date. Other revenue . Service sales, representing after-market repair and maintenance, engineering activities and software license sales and services were less than 1.0% of net sales and recognized as the services are completed or the software products and services are delivered. Services may be sold separately or in bundled packages. The typical contract length for a service is generally less than one year. For bundled packages, the Company accounts for individual services separately when they are distinct. A distinct service is separately identifiable from other items in the bundled package if a customer can benefit from the service on its own or with other resources that are readily available to the customer. The consideration (including any discounts) is allocated between separate services in a bundle based on their stand-alone selling prices. The stand-alone selling prices are determined based on the prices at which the Company separately sells the services. Reconciliation of contract balances Contract assets are the rights to consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditional on something other than the passage of time. Contract liabilities are recorded for any services billed to customers and not yet recognizable if the contract period has commenced or for the amount collected from customers in advance of the contract period commencing. As of September 30, 2019 , the Company had no contract assets or contract liabilities from contracts with customers . |
Net income Per Share (Notes)
Net income Per Share (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 3. Net Income Per Share The following table reconciles basic net income per share of the Company's common stock to diluted net income per share for the three and nine months ended September 30, 2019 and 2018 , respectively: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2019 2018 2019 2018 Net income available to common stockholders $ 43,686 $ 44,361 $ 105,925 $ 113,876 Basic weighted-average shares outstanding 44,477 46,192 44,673 46,375 Dilutive effect of potential common stock equivalents — restricted stock units 337 430 322 395 Diluted weighted-average shares outstanding 44,814 46,622 44,995 46,770 Net income per common share: Basic $ 0.98 $ 0.96 $ 2.37 $ 2.46 Diluted $ 0.97 $ 0.95 $ 2.35 $ 2.43 |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | 4. Stockholders' Equity Share Repurchases During the third quarter of 2019, the Company repurchased 348,901 shares of the Company's common stock in the open market at an average price of $61.44 per share, for a total of $21.4 million . For the nine months ended September 30, 2019 , the Company repurchased 854,349 shares of the Company's common stock in the open market at an average price of $60.21 per share, for a total of $51.4 million . As of September 30, 2019 , approximately $48.6 million remains available for repurchase under the previously announced $100.0 million share repurchase authorization (which expires at the end of 2019). |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company allocates stock-based compensation expense related to equity plans for employees and non-employee directors among the cost of sales, research and development and other engineering expense, selling expense, or general and administrative expense based on the job functions performed by the employees to whom the stock-based compensation is awarded. The Company recognized stock-based compensation expense related to its equity plans for employees of $2.1 million and $2.8 million for the three months ended September 30, 2019 and 2018 , respectively, and $8.7 million and $8.8 million for the nine months ended September 30, 2019 and 2018 , respectively. Stock-based compensation cost capitalized in inventory was not material for all periods presented. During the nine months ended September 30, 2019 , the Company granted 208,321 restricted stock units ("RSUs") to the Company's employees, including officers, and seven non-employee directors at an estimated weighted average fair value of $57.73 per share based on the closing price (adjusted for the present value of dividends) of the Company's common stock on the grant date. The RSUs granted to the Company's employees may be time-based, performance-based or time- and performance-based. Certain of the performance-based RSUs are granted to officers and key employees, where the number of performance-based awards to be issued is based on the achievement of certain Company performance criteria established in the RSU agreement over a cumulative three year period. These awards cliff vest after three years. In addition, these same officers and key employees also receive time-based RSUs, which vest pursuant to a three -year graded vesting schedule. Time- and performance based RSUs that are granted to the Company's employees excluding officers and certain key employees, vest ratably over the four year life of the award, and require the underlying shares of the Company's common stock to be subject to a performance-based adjustment during the first year of the award. As of September 30, 2019 , the Company's aggregate unamortized stock compensation expense was approximately $13.2 million , which is entirely attributable to unvested RSUs and is expected to be recognized in expense over a weighted-average period of 2.4 |
Trade Accounts Receivable, Net
Trade Accounts Receivable, Net | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Trade Accounts Receivable, Net | Trade Accounts Receivable, Net Trade accounts receivable at the dates indicated consisted of the following: At September 30, At December 31, (in thousands) 2019 2018 2018 Trade accounts receivable $ 186,219 $ 197,378 $ 149,886 Allowance for doubtful accounts (1,434 ) (1,312 ) (1,364 ) Allowance for sales discounts and returns (3,887 ) (3,085 ) (2,470 ) $ 180,898 $ 192,981 $ 146,052 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at the dates indicated consisted of the following: At September 30, At December 31, (in thousands) 2019 2018 2018 Raw materials $ 91,088 $ 114,075 $ 98,058 In-process products 24,554 28,251 24,645 Finished products 127,088 137,177 153,385 $ 242,730 $ 279,503 $ 276,088 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment, net, at the dates indicated consisted of the following: At September 30, At December 31, (in thousands) 2019 2018 2018 Land $ 29,132 $ 30,173 $ 30,034 Buildings and site improvements 197,075 203,323 198,809 Leasehold improvements 4,909 4,694 4,826 Machinery, equipment, and software 345,861 323,091 330,076 576,977 561,281 563,745 Less accumulated depreciation and amortization (339,920 ) (316,768 ) (318,388 ) 237,057 244,513 245,357 Capital projects in progress 13,893 13,166 9,240 $ 250,950 $ 257,679 $ 254,597 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill at the dates indicated was as follows: At September 30, At December 31, (in thousands) 2019 2018 2018 North America $ 96,192 $ 95,677 $ 96,435 Europe 33,710 39,404 32,471 Asia/Pacific 1,289 1,378 1,344 Total $ 131,191 $ 136,459 $ 130,250 Intangible assets, net, at the dates indicated were as follows: At September 30, 2019 Gross Net Carrying Accumulated Carrying (in thousands) Amount Amortization Amount North America $ 31,305 $ (18,461 ) $ 12,844 Europe 23,351 (14,379 ) 8,972 Total $ 54,656 $ (32,840 ) $ 21,816 At September 30, 2018 Gross Net (in thousands) Carrying Amount Accumulated Amortization Carrying Amount North America $ 30,715 $ (15,993 ) $ 14,722 Europe 23,935 (13,200 ) 10,735 Total $ 54,650 $ (29,193 ) $ 25,457 At December 31, 2018 Gross Net (in thousands) Carrying Amount Accumulated Amortization Carrying Amount North America $ 30,825 $ (16,002 ) $ 14,823 Europe 22,353 (12,774 ) 9,579 Total $ 53,178 $ (28,776 ) $ 24,402 Intangible assets consist of definite-lived and indefinite-lived assets. Definite-lived intangible assets include customer relationships, patents, unpatented technology, and non-compete agreements. Amortization expense of definite-lived intangible assets was $1.4 million for each of the three-month periods ended September 30, 2019 and 2018 , respectively, and was $4.1 million and $4.0 million for the nine months ended September 30, 2019 and 2018 , respectively. The weighted-average amortization period for all amortizable intangibles on a combined basis is 5.2 years . The only indefinite-lived intangible asset, consisting of a trade name, totaled $0.6 million at September 30, 2019 . At September 30, 2019 , the estimated future amortization of definite-lived intangible assets was as follows: (in thousands) Remaining three months of 2019 $ 1,371 2020 5,460 2021 4,981 2022 3,118 2023 2,314 2024 1,349 Thereafter 2,607 $ 21,200 The changes in the carrying amount of goodwill and intangible assets for the nine months ended September 30, 2019 , were as follows: Intangible (in thousands) Goodwill Assets Balance at December 31, 2018 $ 130,250 $ 24,402 Acquisitions 1,815 1,213 Reclassifications (370 ) 481 Amortization — (4,065 ) Foreign exchange (504 ) (215 ) Balance at September 30, 2019 $ 131,191 $ 21,816 |
Leases Leases
Leases Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 10. Leases On January 1, 2019, the Company adopted ASU 2016-02 using the optional transition method. The Company has operating leases for certain facilities, equipment and autos. The existing operating leases expire at various dates through 2023, some of which include options to extend the leases for up to 5 years. The Company measured the lease liability at the present value of the lease payments to be made over the lease term. The lease payments are discounted using the Company's incremental borrowing rate. The Company measured the ROU assets at the amount at which the lease liability is recognized plus initial direct costs incurred or prepayment amounts. The ROU assets are amortized on a straight-line basis over the lease term. The following table provides a summary of leases included on the condensed consolidated balance sheets, condensed consolidated statements of earnings, and condensed consolidated statements of cash flows as of September 30, 2019 : Condensed Consolidated Balance Sheets Line Item At September 30, 2019 (in thousands) Operating leases Assets Operating leases Operating lease right-of-use assets $ 34,463 Liabilities Operating - current Accrued expenses and other current liabilities $ 7,037 Operating - noncurrent Operating lease liabilities 27,256 Total operating lease liabilities $ 34,293 Finance leases Assets Property and equipment, gross Property, plant and equipment, net $ 3,569 Accumulated amortization Property, plant and equipment, net (2,578 ) Property and equipment, net Property, plant and equipment, net $ 991 Liabilities Other current liabilities Accrued expenses and other current liabilities $ 1,116 Other long-term liabilities Deferred income tax and other long-term liabilities 764 Total finance lease liabilities $ 1,880 The components of lease expense were as follows: Condensed Consolidated Statements of Operations Line Item Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2019 Operating lease cost General administrative expenses and cost of sales $ 2,379 $ 6,784 Finance lease cost: Amortization of right-of-use assets General administrative expenses $ 218 $ 654 Interest on lease liabilities Interest expense, net 16 54 Total finance lease $ 234 $ 708 Other information Supplemental cash flow information related to leases as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,324 $ 6,604 Finance cash flows for finance leases 290 870 Operating right-of-use assets obtained in exchange for lease obligations during the current period 1,616 3,704 The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2019 : (in thousands) Operating Leases Finance Leases Remaining three months of 2019 $ 2,355 $ 290 2020 8,928 1,160 2021 7,441 484 2022 5,307 — 2023 3,590 — Thereafter 13,551 — Total lease payments 41,172 1,934 Less: Present value discount (6,879 ) (54 ) Total lease liabilities $ 34,293 $ 1,880 The following table summarizes the Company's lease terms and discount rates as of September 30, 2019 : Weighted-average remaining lease terms (in years): Operating leases 6.72 Finance leases 1.68 Weighted-average discount rate: Operating leases 5.37 % Finance leases 3.23 % |
Leases | Leases On January 1, 2019, the Company adopted ASU 2016-02 using the optional transition method. The Company has operating leases for certain facilities, equipment and autos. The existing operating leases expire at various dates through 2023, some of which include options to extend the leases for up to 5 years. The Company measured the lease liability at the present value of the lease payments to be made over the lease term. The lease payments are discounted using the Company's incremental borrowing rate. The Company measured the ROU assets at the amount at which the lease liability is recognized plus initial direct costs incurred or prepayment amounts. The ROU assets are amortized on a straight-line basis over the lease term. The following table provides a summary of leases included on the condensed consolidated balance sheets, condensed consolidated statements of earnings, and condensed consolidated statements of cash flows as of September 30, 2019 : Condensed Consolidated Balance Sheets Line Item At September 30, 2019 (in thousands) Operating leases Assets Operating leases Operating lease right-of-use assets $ 34,463 Liabilities Operating - current Accrued expenses and other current liabilities $ 7,037 Operating - noncurrent Operating lease liabilities 27,256 Total operating lease liabilities $ 34,293 Finance leases Assets Property and equipment, gross Property, plant and equipment, net $ 3,569 Accumulated amortization Property, plant and equipment, net (2,578 ) Property and equipment, net Property, plant and equipment, net $ 991 Liabilities Other current liabilities Accrued expenses and other current liabilities $ 1,116 Other long-term liabilities Deferred income tax and other long-term liabilities 764 Total finance lease liabilities $ 1,880 The components of lease expense were as follows: Condensed Consolidated Statements of Operations Line Item Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2019 Operating lease cost General administrative expenses and cost of sales $ 2,379 $ 6,784 Finance lease cost: Amortization of right-of-use assets General administrative expenses $ 218 $ 654 Interest on lease liabilities Interest expense, net 16 54 Total finance lease $ 234 $ 708 Other information Supplemental cash flow information related to leases as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,324 $ 6,604 Finance cash flows for finance leases 290 870 Operating right-of-use assets obtained in exchange for lease obligations during the current period 1,616 3,704 The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2019 : (in thousands) Operating Leases Finance Leases Remaining three months of 2019 $ 2,355 $ 290 2020 8,928 1,160 2021 7,441 484 2022 5,307 — 2023 3,590 — Thereafter 13,551 — Total lease payments 41,172 1,934 Less: Present value discount (6,879 ) (54 ) Total lease liabilities $ 34,293 $ 1,880 The following table summarizes the Company's lease terms and discount rates as of September 30, 2019 : Weighted-average remaining lease terms (in years): Operating leases 6.72 Finance leases 1.68 Weighted-average discount rate: Operating leases 5.37 % Finance leases 3.23 % |
Debt Debt
Debt Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Facilities The Company has revolving lines of credit with various banks in the United States and Europe. Total available credit at September 30, 2019 , was $303.2 million including revolving credit lines and an irrevocable standby letter of credit in support of various insurance deductibles. As of September 30, 2019 , the Company had an outstanding balance of $0.5 million under these credit lines, and no amounts outstanding as of September 30, 2018 , and December 31, 2018 , respectively. The Company was in compliance with its financial covenants at September 30, 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation From time to time, the Company is involved in various legal proceedings and other matters arising in the normal course of business, including those arising from or related to contractual matters, commercial disputes, intellectual property, personal injury, environmental matters, product performance or warranties, product liability, insurance coverage and personnel, labor and employment disputes. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are often uncertain and difficult to predict, and the Company's view of these matters may change in the future as the litigation and events related thereto unfold. The Company expenses legal fees as incurred. The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. An unfavorable outcome to any legal matter, if material, could have an adverse effect on the Company's operations or its financial position, liquidity or results of operations. Insurance coverages are maintained and estimated costs are recorded for such claims and lawsuits, including costs to settle claims and lawsuits, based on experience involving similar matters and specific facts known. The Company believes that its defenses and assertions in pending legal proceedings have merit and does not believe that any of these pending matters, after consideration of applicable reserves and rights to indemnification, will have a material adverse effect on the Company’s consolidated financial position. However, substantial unanticipated verdicts, fines and rulings do sometimes occur. As a result, the Company could from time to time incur judgments, enter into settlements or revise its expectations regarding the outcome of certain matters, and such developments could have a material adverse effect on its results of operations in the period in which the amounts are accrued and/or its cash flows in the period in which the amounts are paid. The Company previously recorded a charge to administrative expense of approximately $2.9 million , net of tax for a certain pending legal proceeding during the period ended December 31, 2018. The Company has recorded an additional charge of approximately $100,000 in the period ended September 30, 2019 , resulting in the total charge recorded for such matter being approximately $3.0 million , net of tax. Gentry Homes, Ltd. v. Simpson Strong-Tie Company, Inc., et al. , Case No. 17-cv-00566, was filed in federal district court in Hawaii against Simpson Strong-Tie Company, Inc. and Simpson Manufacturing, Inc. on November 20, 2017. The Gentry case is a product of a previous state court class action , Nishimura v. Gentry Homes, Ltd., et al. which is now closed. The Nishimura case concerned alleged corrosion of the Company’s galvanized strap-tie holdowns and mudsill anchor products used in a residential project in Honolulu, Hawaii, Ewa by Gentry. In the Nishimura case, the plaintiff homeowners and the developer, Gentry, arbitrated their dispute and agreed on a settlement in the amount of $90 million , with $54 million going to repair costs and $36 million going to attorney's fees. In the Gentry case, Gentry alleges breach of warranty and negligent misrepresentation related to the Company’s strap-tie holdowns and mudsill anchor products. Gentry is demanding general, special, and consequential damages from the Company in an amount to be proven at trial. Gentry also seeks pre-judgment and post-judgment interest, attorneys’ fees and costs, and other relief. Stephen Kaneshiro, et al. v. Stanford Carr Development, LLC et al./Stanford Carr Development, LLC, et al. v. Simpson Strong-Tie Company, Inc. , Civil No. 18-1-1472-09 VLC, is a putative class action lawsuit filed in the Hawaii First Circuit. The Company was added as a third-party defendant on December 28, 2018. The homeowner plaintiffs allege that all homes built by Stanford Carr Development and its subsidiaries (collectively "Stanford Carr") in the State of Hawaii have strap-tie holdowns and mudsill anchors that are suffering premature corrosion. Stanford Carr has asserted indemnity and contribution claims against the Company. Potential Third-Party Claims Charles Vitale, et al. v. D.R. Horton, Inc. and D.R. Horton-Schuler Homes, LLC , Civil No. 15-1-1347-07, a putative class action lawsuit, was filed in the Hawaii First Circuit on July 13, 2015, in which homeowner plaintiffs allege that all homes built by D.R Horton/D.R. Horton-Schuler Homes (collectively "Horton Homes") in the State of Hawaii have strap-tie holdowns that are suffering premature corrosion. The court has denied a motion for statewide class certification. The Company is not currently a party to the Vitale lawsuit. If claims are asserted against the Company in the Vitale case, it will vigorously defend any such claims, whether brought by the plaintiff homeowners, or third party claims by Horton Homes. Based on facts currently known to the Company and subject to future events and circumstances, the Company believes that all or part of any claims that any party might seek to allege against it related to the Vitale case may be covered by its insurance policies. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company is organized into three reportable segments, which are defined by the regions where the Company’s products are manufactured, marketed and distributed to the Company’s customers. The three regional segments are the North America segment, comprising primarily the United States and Canada; the Europe segment, comprising continental Europe and the United Kingdom; and the Asia/Pacific segment, comprising the Company’s operations in China, Hong Kong, the South Pacific and the Middle East. The Company's China and Hong Kong operations are manufacturing and administrative support locations, respectively. These three reportable segments are similar in several ways, including the types of materials used in production, production processes, distribution channels and product applications. The Company’s measure of profit or loss for its reportable segments is income (loss) from operations. The following tables illustrate certain measurements used by management to assess the performance of its reportable segments as of or for the following periods: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Net Sales North America $ 265,505 $ 239,898 $ 746,009 $ 705,932 Europe 42,219 42,020 121,647 124,096 Asia/Pacific 2,208 2,260 6,373 6,936 Total $ 309,932 $ 284,178 $ 874,029 $ 836,964 Sales to Other Segments* North America $ 520 $ 683 $ 1,327 $ 1,889 Europe 479 140 1,568 740 Asia/Pacific 7,600 7,586 21,272 20,907 Total $ 8,599 $ 8,409 $ 24,167 $ 23,536 Income (Loss) from Operations** North America $ 56,844 $ 56,280 $ 139,489 $ 152,724 Europe 5,386 3,953 9,645 6,053 Asia/Pacific (481 ) (86 ) (837 ) (1,749 ) Administrative and all other (782 ) (469 ) (3,654 ) (3,234 ) Total $ 60,967 $ 59,678 $ 144,643 $ 153,794 * Sales to other segments are eliminated in consolidation. ** Beginning in the first quarter of 2019, income from inter-segment sales, previously included in income from operations for segment reporting, is now presented below income from operations. Income from inter-segment sales is eliminated in consolidation but was an expense in the North America and Europe segment and income in the Asia/Pacific segment. At At September 30, December 31, (in thousands) 2019 2018 2018 Total Assets North America $ 1,246,617 $ 1,080,910 $ 1,119,012 Europe 169,183 208,888 157,437 Asia/Pacific 28,009 28,448 25,644 Administrative and all other (357,501 ) (223,633 ) (280,430 ) Total $ 1,086,308 $ 1,094,613 $ 1,021,663 Cash collected by the Company’s United States subsidiaries is routinely transferred into the Company’s cash management accounts and, therefore, has been included in the total assets of “Administrative and all other.” Cash and cash equivalent balances in the “Administrative and all other” segment were $135.9 million , $87.5 million , and $113.6 million , as of September 30, 2019 and 2018 , and December 31, 2018 , respectively. Total "Administrative and all other" assets are net of inter-segment due to and from accounts eliminated in consolidation. While the Company manages its business by geographic segment, the following table illustrates the distribution of the Company’s net sales by product group as additional information for the following periods: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Wood construction products $ 255,869 $ 238,230 $ 731,898 $ 710,880 Concrete construction products 53,947 45,832 141,883 125,847 Other 116 116 248 237 Total $ 309,932 $ 284,178 $ 874,029 $ 836,964 Wood construction products include connectors, truss plates, fastening systems, fasteners and pre-fabricated shearwalls, and are used for connecting and strengthening wood-based construction primarily in the residential construction market. Concrete construction products include adhesives, chemicals, mechanical anchors, carbide drill bits, powder actuated tools and fiber reinforcing materials, and are used for restoration, protection or strengthening concrete, masonry and steel construction in residential, industrial, commercial and infrastructure construction. The Company’s largest customer, attributable mostly to the North America segment, accounted for 11.0% and 11.3% of net sales for three months and nine months ended September 30, 2019 , respectively, and 10.5% of net sales, accounted for the nine months ended September 30, 2018 . |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 24, 2019 , the Company’s Board of Directors declared a quarterly cash dividend of $0.23 per share, estimated to be $10.2 million in total. The dividend will be payable on January 23, 2020 , to the Company's stockholders of record on January 2, 2020 . In November 2019, the Company sold its selling and distribution facility in British Columbia, Canada for approximately $9.5 million in net proceeds after closing costs and sale price adjustments, which resulted in an estimated gain on disposal of fixed assets of $5.6 million . To provide a temporary transition until the Company relocates to the new leased facility, the Company is leasing back the sold facility from the buyer for approximately five months. The Company treated the leaseback transaction as a short-term lease and will recognize the rent expense on the straight-line basis over the lease term . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Simpson Manufacturing Co., Inc. and its subsidiaries (collectively, the “Company”). Investments in 50% or less owned entities are accounted for using either cost or the equity method. All significant intercompany transactions have been eliminated. |
Interim Period Reporting | Interim Reporting Period The accompanying unaudited quarterly condensed consolidated financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These interim statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the “2018 Form 10-K”). The unaudited quarterly condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial information set forth therein in accordance with GAAP. Certain prior period amounts in the condensed consolidated financial statements and the accompanying notes have been reclassified to conform to the current period’s presentation. The year-end condensed consolidated balance sheet data provided herein were derived from audited financial statements included in the 2018 Form 10-K, but do not include all disclosures required by GAAP. The Company’s quarterly results fluctuate. As a result, the Company believes the results of operations for this interim period presented are not indicative of the results to be expected for any future periods. |
Revenue Recognition | Revenue Recognition Generally, the Company's revenue contract with a customer exists when the goods are shipped, services are rendered; and its related invoice is generated. The duration of the contract does not extend beyond the promised goods or services already transferred. The transaction price of each distinct promised product or service specified in the invoice is based on its relative stated standalone selling price. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer at a point in time. The Company’s shipping terms provide the primary indicator of the transfer of control. The Company's general shipping terms are F.O.B. shipping point, where title and risk and rewards of ownership transfer at the point when the products leave the Company's warehouse. The Company recognizes revenue based on the consideration specified in the invoice with a customer, excluding any sales incentives, discounts, and amounts collected on behalf of third parties (i.e., governmental tax authorities). Based on historical experience with the customer, the customer's purchasing pattern and its significant experience selling products, the Company concluded that a significant reversal in the cumulative amount of revenue recognized will not occur when the uncertainty (if any) is resolved (that is, when the total amount of purchases is known). Refer to Note 2 for additional information. |
Net Income Per Common Share | Net Income Per Common Share The Company calculates net income per common share based on the weighted-average number of the Company's common stock outstanding during the period. Potentially dilutive securities are included in the diluted per-share calculations using the treasury stock method for all periods when the effect is dilutive. |
Accounting for Leases | Accounting for Leases The Company has operating and finance leases for certain facilities, equipment, autos and data centers. As an accounting policy for short-term leases, the Company elected to not recognize the right-of-use asset and liability, if, at the commencement date, the lease (1) has a term of 12 months or less and (2) does not include renewal and purchase options that the Company is reasonably certain to exercise. Monthly payments on short-term leases are recognized on the straight-line basis over the full lease term. |
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation The Company recognizes stock-based expense related to restricted stock unit awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally a vesting term of four |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified under a three-tier fair valuation hierarchy based on the observability of the inputs available in the market: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As of September 30, 2019 and 2018 , the Company’s investments included in cash equivalents consisted of only money market funds, which are the Company’s primary financial instruments and carried at cost, approximating fair value, based on Level 1 inputs. The balance of the Company’s primary financial instruments as of September 30, 2019 and 2018 was $0.1 million and $7.6 million , respectively. The carrying amounts of trade accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. The fair value of the Company’s contingent consideration related to acquisitions is classified as Level 3 within the fair value hierarchy as it is based on unobserved inputs such as management estimates and entity-specific assumptions and is evaluated on an ongoing basis. |
Income Taxes | Income Taxes The Company uses an estimated annual tax rate to measure the tax benefit or tax expense recognized in each interim period. |
Acquisitions | Acquisitions Under the business combinations topic ASC 805, the Company accounts for acquisitions as business combinations and ascribes acquisition-date fair values to the acquired assets and assumed liabilities. Provisional fair value measurements are made at the time of the acquisition. Adjustments to those measurements may be made in subsequent periods, up to one year from the acquisition date, as information necessary to complete the analysis is obtained. The fair value of intangible assets are generally based on Level 3 inputs. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted | Accounting Standards - To Be Adopted In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326 ): Measurement of Credit Losses on Financial Instruments. ” ASU 2016-13 amendments provide guidance on accounting for current expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. The required measurement methodology is based on expected loss model that includes historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 eliminates the probable incurred loss recognition in current GAAP. ASU 2016-13 is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is evaluating the impact of the adoption of this new accounting guidance on its consolidated financial statements. Accounting Standards - Recently Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). The core requirement of ASU 2016-02 is to recognize assets and liabilities that arise from leases, including those leases classified as operating leases. The amendments require a lessee to recognize a liability to make lease payments (the lease liability) and a right-of-use asset ("ROU") representing its right to use the underlying asset for the lease term in the statement of financial position. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. On January 1, 2019, the Company adopted ASU 2016-02 using the optional transition method. The Company elected and applied a few practical transition expedients including, not reassessing whether any expired or existing contracts are or contain leases; not reassessing the lease classification for any expired or existing leases and not reassessing initial direct costs for any existing leases. The Company has operating and finance leases for certain facilities, equipment, autos and data centers. The adoption of ASU 2016-02 resulted in the recognition of ROU assets and lease liabilities of approximately $34.3 million and $35.1 million , respectively on January 1, 2019. The adoption had no material impact on the condensed consolidated statement of operations or cash flows. See Note 10. All other issued and effective accounting standards during the third quarter of 2019 were determined to be not relevant or material to the Company. |
Net income Per Share (Tables)
Net income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table reconciles basic net income per share of the Company's common stock to diluted net income per share for the three and nine months ended September 30, 2019 and 2018 , respectively: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2019 2018 2019 2018 Net income available to common stockholders $ 43,686 $ 44,361 $ 105,925 $ 113,876 Basic weighted-average shares outstanding 44,477 46,192 44,673 46,375 Dilutive effect of potential common stock equivalents — restricted stock units 337 430 322 395 Diluted weighted-average shares outstanding 44,814 46,622 44,995 46,770 Net income per common share: Basic $ 0.98 $ 0.96 $ 2.37 $ 2.46 Diluted $ 0.97 $ 0.95 $ 2.35 $ 2.43 |
Trade Accounts Receivable, Net
Trade Accounts Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of trade accounts receivable, net | Trade accounts receivable at the dates indicated consisted of the following: At September 30, At December 31, (in thousands) 2019 2018 2018 Trade accounts receivable $ 186,219 $ 197,378 $ 149,886 Allowance for doubtful accounts (1,434 ) (1,312 ) (1,364 ) Allowance for sales discounts and returns (3,887 ) (3,085 ) (2,470 ) $ 180,898 $ 192,981 $ 146,052 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of carrying values of inventories | Inventories at the dates indicated consisted of the following: At September 30, At December 31, (in thousands) 2019 2018 2018 Raw materials $ 91,088 $ 114,075 $ 98,058 In-process products 24,554 28,251 24,645 Finished products 127,088 137,177 153,385 $ 242,730 $ 279,503 $ 276,088 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment, net, at the dates indicated consisted of the following: At September 30, At December 31, (in thousands) 2019 2018 2018 Land $ 29,132 $ 30,173 $ 30,034 Buildings and site improvements 197,075 203,323 198,809 Leasehold improvements 4,909 4,694 4,826 Machinery, equipment, and software 345,861 323,091 330,076 576,977 561,281 563,745 Less accumulated depreciation and amortization (339,920 ) (316,768 ) (318,388 ) 237,057 244,513 245,357 Capital projects in progress 13,893 13,166 9,240 $ 250,950 $ 257,679 $ 254,597 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill, by segment | Goodwill at the dates indicated was as follows: At September 30, At December 31, (in thousands) 2019 2018 2018 North America $ 96,192 $ 95,677 $ 96,435 Europe 33,710 39,404 32,471 Asia/Pacific 1,289 1,378 1,344 Total $ 131,191 $ 136,459 $ 130,250 |
Schedule of net intangible assets, by segment | Intangible assets, net, at the dates indicated were as follows: At September 30, 2019 Gross Net Carrying Accumulated Carrying (in thousands) Amount Amortization Amount North America $ 31,305 $ (18,461 ) $ 12,844 Europe 23,351 (14,379 ) 8,972 Total $ 54,656 $ (32,840 ) $ 21,816 At September 30, 2018 Gross Net (in thousands) Carrying Amount Accumulated Amortization Carrying Amount North America $ 30,715 $ (15,993 ) $ 14,722 Europe 23,935 (13,200 ) 10,735 Total $ 54,650 $ (29,193 ) $ 25,457 At December 31, 2018 Gross Net (in thousands) Carrying Amount Accumulated Amortization Carrying Amount North America $ 30,825 $ (16,002 ) $ 14,823 Europe 22,353 (12,774 ) 9,579 Total $ 53,178 $ (28,776 ) $ 24,402 |
Schedule of estimated future amortization of intangible assets | At September 30, 2019 , the estimated future amortization of definite-lived intangible assets was as follows: (in thousands) Remaining three months of 2019 $ 1,371 2020 5,460 2021 4,981 2022 3,118 2023 2,314 2024 1,349 Thereafter 2,607 $ 21,200 |
Changes in the carrying amount of goodwill and intangible assets | The changes in the carrying amount of goodwill and intangible assets for the nine months ended September 30, 2019 , were as follows: Intangible (in thousands) Goodwill Assets Balance at December 31, 2018 $ 130,250 $ 24,402 Acquisitions 1,815 1,213 Reclassifications (370 ) 481 Amortization — (4,065 ) Foreign exchange (504 ) (215 ) Balance at September 30, 2019 $ 131,191 $ 21,816 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Lease, Cost [Abstract] | |
Balance Sheet Information | The following table provides a summary of leases included on the condensed consolidated balance sheets, condensed consolidated statements of earnings, and condensed consolidated statements of cash flows as of September 30, 2019 : Condensed Consolidated Balance Sheets Line Item At September 30, 2019 (in thousands) Operating leases Assets Operating leases Operating lease right-of-use assets $ 34,463 Liabilities Operating - current Accrued expenses and other current liabilities $ 7,037 Operating - noncurrent Operating lease liabilities 27,256 Total operating lease liabilities $ 34,293 Finance leases Assets Property and equipment, gross Property, plant and equipment, net $ 3,569 Accumulated amortization Property, plant and equipment, net (2,578 ) Property and equipment, net Property, plant and equipment, net $ 991 Liabilities Other current liabilities Accrued expenses and other current liabilities $ 1,116 Other long-term liabilities Deferred income tax and other long-term liabilities 764 Total finance lease liabilities $ 1,880 |
Lease, Cost | The following table summarizes the Company's lease terms and discount rates as of September 30, 2019 : Weighted-average remaining lease terms (in years): Operating leases 6.72 Finance leases 1.68 Weighted-average discount rate: Operating leases 5.37 % Finance leases 3.23 % The components of lease expense were as follows: Condensed Consolidated Statements of Operations Line Item Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2019 Operating lease cost General administrative expenses and cost of sales $ 2,379 $ 6,784 Finance lease cost: Amortization of right-of-use assets General administrative expenses $ 218 $ 654 Interest on lease liabilities Interest expense, net 16 54 Total finance lease $ 234 $ 708 |
Operating Lease, Liability, Maturity | The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2019 : (in thousands) Operating Leases Finance Leases Remaining three months of 2019 $ 2,355 $ 290 2020 8,928 1,160 2021 7,441 484 2022 5,307 — 2023 3,590 — Thereafter 13,551 — Total lease payments 41,172 1,934 Less: Present value discount (6,879 ) (54 ) Total lease liabilities $ 34,293 $ 1,880 |
Finance Lease, Liability, Maturity | The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2019 : (in thousands) Operating Leases Finance Leases Remaining three months of 2019 $ 2,355 $ 290 2020 8,928 1,160 2021 7,441 484 2022 5,307 — 2023 3,590 — Thereafter 13,551 — Total lease payments 41,172 1,934 Less: Present value discount (6,879 ) (54 ) Total lease liabilities $ 34,293 $ 1,880 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of performance of reportable segments | The following tables illustrate certain measurements used by management to assess the performance of its reportable segments as of or for the following periods: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Net Sales North America $ 265,505 $ 239,898 $ 746,009 $ 705,932 Europe 42,219 42,020 121,647 124,096 Asia/Pacific 2,208 2,260 6,373 6,936 Total $ 309,932 $ 284,178 $ 874,029 $ 836,964 Sales to Other Segments* North America $ 520 $ 683 $ 1,327 $ 1,889 Europe 479 140 1,568 740 Asia/Pacific 7,600 7,586 21,272 20,907 Total $ 8,599 $ 8,409 $ 24,167 $ 23,536 Income (Loss) from Operations** North America $ 56,844 $ 56,280 $ 139,489 $ 152,724 Europe 5,386 3,953 9,645 6,053 Asia/Pacific (481 ) (86 ) (837 ) (1,749 ) Administrative and all other (782 ) (469 ) (3,654 ) (3,234 ) Total $ 60,967 $ 59,678 $ 144,643 $ 153,794 * Sales to other segments are eliminated in consolidation. ** Beginning in the first quarter of 2019, income from inter-segment sales, previously included in income from operations for segment reporting, is now presented below income from operations. Income from inter-segment sales is eliminated in consolidation but was an expense in the North America and Europe segment and income in the Asia/Pacific segment. At At September 30, December 31, (in thousands) 2019 2018 2018 Total Assets North America $ 1,246,617 $ 1,080,910 $ 1,119,012 Europe 169,183 208,888 157,437 Asia/Pacific 28,009 28,448 25,644 Administrative and all other (357,501 ) (223,633 ) (280,430 ) Total $ 1,086,308 $ 1,094,613 $ 1,021,663 |
Schedule of net sales distributed by product group | While the Company manages its business by geographic segment, the following table illustrates the distribution of the Company’s net sales by product group as additional information for the following periods: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Wood construction products $ 255,869 $ 238,230 $ 731,898 $ 710,880 Concrete construction products 53,947 45,832 141,883 125,847 Other 116 116 248 237 Total $ 309,932 $ 284,178 $ 874,029 $ 836,964 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Stock-Based Compensation | |
Maximum period for payment for adjustments to provisional fair value measurements | 1 year |
Maximum [Member] | |
Stock-Based Compensation | |
Vesting period | 4 years |
Basis of Presentation - Recentl
Basis of Presentation - Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Operating lease right-of-use assets | $ 34,463 | $ 34,300 |
Total lease liabilities | $ 34,293 | $ 35,100 |
Basis of Presentation Fair valu
Basis of Presentation Fair value of financial instruments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Cash and Cash Equivalents [Abstract] | ||
Money Market Funds, at Carrying Value | $ 0.1 | $ 7.6 |
Revenue from Contract with Cu_2
Revenue from Contract with Customer (Details) - ASC 606 | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Wood construction products | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 84.00% | 85.00% |
Concrete construction products | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 16.00% | 15.00% |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 1.00% |
Stockholders' Equity Shares Rep
Stockholders' Equity Shares Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 01, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchased During Period, Shares | 348,901 | 854,349 | |
Treasury Stock Acquired, Average Cost Per Share | $ 61.44 | $ 60.21 | |
Treasury Stock, Value, Acquired, Par Value Method | $ 21.4 | $ 51.4 | |
2018 Stock Repurchase Program [Member] [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 48.6 | $ 48.6 | $ 100 |
Net income Per Share - Reconcil
Net income Per Share - Reconciliation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Reconciliation of basic earnings per share ("EPS") to diluted EPS | |||||
Net income available to common stockholders | $ 43,686 | $ 44,361 | $ 105,925 | $ 113,876 | $ 12,757 |
Basic weighted-average shares outstanding | 44,477 | 46,192 | 44,673 | 46,375 | |
Dilutive effect of potential common stock equivalents — restricted stock units | 337 | 430 | 322 | 395 | |
Diluted weighted-average shares outstanding | 44,814 | 46,622 | 44,995 | 46,770 | |
Earnings per common share: | |||||
Basic | $ 0.98 | $ 0.96 | $ 2.37 | $ 2.46 | |
Diluted | $ 0.97 | $ 0.95 | $ 2.35 | $ 2.43 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 15, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Stock-Based Compensation | |||||
Stock-based compensation expense | $ 2.1 | $ 2.8 | $ 8.7 | $ 8.8 | |
Unrecognized compensation cost and vesting period | |||||
Unrecognized compensation costs related to unvested share-based compensation arrangements | $ 13.2 | $ 13.2 | |||
Weighted-average period for recognition of unrecognized stock-based compensation expense | 2 years 4 months 24 days | ||||
Restricted Stock Units | |||||
Stock-Based Compensation | |||||
Awarded (in shares) | 208,321 | ||||
Weighted average granted date fair value (in dollars per share) | $ 57.73 | ||||
Vesting period | 3 years | ||||
Employees | Restricted Stock Units | |||||
Stock-Based Compensation | |||||
Vesting period | 4 years |
Trade Accounts Receivable, Ne_2
Trade Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Receivables [Abstract] | |||
Trade accounts receivable | $ 186,219 | $ 149,886 | $ 197,378 |
Allowance for doubtful accounts | (1,434) | (1,364) | (1,312) |
Allowance for sales discounts and returns | (3,887) | (2,470) | (3,085) |
Trade accounts receivable, net | $ 180,898 | $ 146,052 | $ 192,981 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 91,088 | $ 98,058 | $ 114,075 |
In-process products | 24,554 | 24,645 | 28,251 |
Finished products | 127,088 | 153,385 | 137,177 |
Total inventories | $ 242,730 | $ 276,088 | $ 279,503 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 576,977 | $ 563,745 | $ 561,281 |
Less accumulated depreciation and amortization | (339,920) | (318,388) | (316,768) |
Property, plant and equipment excluding capital projects in progress, net | 237,057 | 245,357 | 244,513 |
Capital projects in progress | 13,893 | 9,240 | 13,166 |
Property, plant and equipment, net | 250,950 | 254,597 | 257,679 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 29,132 | 30,034 | 30,173 |
Buildings and site improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 197,075 | 198,809 | 203,323 |
Leasehold improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 4,909 | 4,826 | 4,694 |
Machinery, equipment, and software | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 345,861 | $ 330,076 | $ 323,091 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net, Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Carrying amount of goodwill by reportable segment | |||
Goodwill | $ 131,191 | $ 130,250 | $ 136,459 |
North America | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | 96,192 | 96,435 | 95,677 |
Europe | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | 33,710 | 32,471 | 39,404 |
Asia/Pacific | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | $ 1,289 | $ 1,344 | $ 1,378 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net, Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 1,400 | $ 1,400 | $ 4,065 | $ 4,000 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years 2 months 12 days | ||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 54,656 | 54,650 | $ 54,656 | 54,650 | $ 53,178 |
Accumulated amortization | (32,840) | (29,193) | (32,840) | (29,193) | (28,776) |
Net carrying amount | 21,816 | 25,457 | 21,816 | 25,457 | 24,402 |
North America | |||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 31,305 | 30,715 | 31,305 | 30,715 | 30,825 |
Accumulated amortization | (18,461) | (15,993) | (18,461) | (15,993) | (16,002) |
Net carrying amount | 12,844 | 14,722 | 12,844 | 14,722 | 14,823 |
Europe | |||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 23,351 | 23,935 | 23,351 | 23,935 | 22,353 |
Accumulated amortization | (14,379) | (13,200) | (14,379) | (13,200) | (12,774) |
Net carrying amount | $ 8,972 | $ 10,735 | $ 8,972 | $ 10,735 | $ 9,579 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net, Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | $ 1,400 | $ 1,400 | $ 4,065 | $ 4,000 |
Trade Names | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets | $ 600 | $ 600 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net, Estimated Future Amortization (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years 2 months 12 days |
Remaining three months of 2019 | $ 1,371 |
2019 | 5,460 |
2020 | 4,981 |
2021 | 3,118 |
2022 | 2,314 |
2023 | 1,349 |
Thereafter | 2,607 |
Total | $ 21,200 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net, Carrying Amount of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill | ||||
Balance at the beginning of the period | $ 130,250 | |||
Amortization | 1,815 | |||
Foreign exchange | (504) | |||
Balance at the end of the period | $ 131,191 | $ 136,459 | 131,191 | $ 136,459 |
Intangible Assets | ||||
Balance at the beginning of the period | 24,402 | |||
Finite-lived Intangible Assets Acquired | 1,213 | |||
Amortization | (1,400) | (1,400) | (4,065) | (4,000) |
Foreign exchange | (215) | |||
Balance at the end of the period | $ 21,816 | $ 25,457 | 21,816 | $ 25,457 |
Goodwill, Other Increase (Decrease) | (370) | |||
Finite Lived Intangible Assets Reclassifications | $ 481 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Option to extend term | 5 years |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 34,463 | $ 34,300 |
Operating - current | 7,037 | |
Operating - noncurrent | 27,256 | |
Total operating lease liabilities | 34,293 | $ 35,100 |
Property and equipment, gross | 3,569 | |
Accumulated amortization | (2,578) | |
Property and equipment, net | 991 | |
Other current liabilities | 1,116 | |
Other long-term liabilities | 764 | |
Total finance lease liabilities | $ 1,880 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,379 | $ 6,784 |
Amortization of right-of-use assets | 218 | 654 |
Interest on lease liabilities | 16 | 54 |
Total finance lease | $ 234 | $ 708 |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease, Cost [Abstract] | ||
Operating cash flows for operating leases | $ 2,324 | $ 6,604 |
Finance cash flows for finance leases | 290 | 870 |
Operating right-of-use assets obtained in exchange for lease obligations during the current period | $ 1,616 | $ 3,704 |
Leases - Maturity (Details)
Leases - Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remaining three months of 2019 | $ 2,355 | |
2020 | 8,928 | |
2021 | 7,441 | |
2022 | 5,307 | |
2023 | 3,590 | |
Thereafter | 13,551 | |
Total lease payments | 41,172 | |
Less: Present value discount | (6,879) | |
Total lease liabilities | 34,293 | $ 35,100 |
Finance Leases | ||
Remaining three months of 2019 | 290 | |
2020 | 1,160 | |
2021 | 484 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total lease payments | 1,934 | |
Less: Present value discount | (54) | |
Total finance lease liabilities | $ 1,880 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 8 months 19 days |
Finance Lease, Weighted Average Remaining Lease Term | 1 year 8 months 4 days |
Operating Lease, Weighted Average Discount Rate, Percent | 5.37% |
Finance Lease, Weighted Average Discount Rate, Percent | 3.23% |
Debt (Details)
Debt (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Line of Credit | |||
Debt | |||
Credit facility, total available credit | $ 303,200,000 | ||
Primary Revolving Credit Facility | |||
Debt | |||
Line of credit and notes payable | $ 500,000 | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Nov. 20, 2017 | Sep. 30, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | |||
Litigation expense | $ 3,000 | $ 2,900 | |
Additional expense | $ 100 | ||
Nishimura v. Gentry Homes, Ltd | |||
Loss Contingencies [Line Items] | |||
Settlement amount | $ 90,000 | ||
Repair costs | 54,000 | ||
Attorney fees | $ 36,000 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | ||||||
Number of reportable segments | segment | 3 | |||||
Segment Information | ||||||
Net sales | $ 309,932 | $ 284,178 | $ 874,029 | $ 836,964 | ||
Income (Loss) from Operations | 60,967 | 59,678 | 144,643 | 153,794 | ||
Total Assets | 1,086,308 | 1,094,613 | 1,086,308 | 1,094,613 | $ 1,021,663 | |
Cash and cash equivalent | 194,061 | 166,961 | 194,061 | 166,961 | 160,180 | $ 168,514 |
Intersegment elimination | ||||||
Segment Information | ||||||
Net sales | 8,599 | 8,409 | 24,167 | 23,536 | ||
Administrative and all other | ||||||
Segment Information | ||||||
Income (Loss) from Operations | (782) | (469) | (3,654) | (3,234) | ||
Total Assets | (357,501) | (223,633) | (357,501) | (223,633) | (280,430) | |
Cash and cash equivalent | 135,900 | 87,500 | 135,900 | 87,500 | 113,600 | |
North America | ||||||
Segment Information | ||||||
Net sales | 265,505 | 239,898 | 746,009 | 705,932 | ||
Income (Loss) from Operations | 56,844 | 56,280 | 139,489 | 152,724 | ||
Total Assets | 1,246,617 | 1,080,910 | 1,246,617 | 1,080,910 | 1,119,012 | |
North America | Intersegment elimination | ||||||
Segment Information | ||||||
Net sales | 520 | 683 | 1,327 | 1,889 | ||
Europe | ||||||
Segment Information | ||||||
Net sales | 42,219 | 42,020 | 121,647 | 124,096 | ||
Income (Loss) from Operations | 5,386 | 3,953 | 9,645 | 6,053 | ||
Total Assets | 169,183 | 208,888 | 169,183 | 208,888 | 157,437 | |
Europe | Intersegment elimination | ||||||
Segment Information | ||||||
Net sales | 479 | 140 | 1,568 | 740 | ||
Asia/Pacific | ||||||
Segment Information | ||||||
Net sales | 2,208 | 2,260 | 6,373 | 6,936 | ||
Income (Loss) from Operations | (481) | (86) | (837) | (1,749) | ||
Total Assets | 28,009 | 28,448 | 28,009 | 28,448 | $ 25,644 | |
Asia/Pacific | Intersegment elimination | ||||||
Segment Information | ||||||
Net sales | $ 7,600 | $ 7,586 | $ 21,272 | $ 20,907 |
Segment Information (Details 2)
Segment Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales and long-lived assets by geographical area | ||||
Net sales | $ 309,932 | $ 284,178 | $ 874,029 | $ 836,964 |
Wood construction products | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | 255,869 | 238,230 | 731,898 | 710,880 |
Concrete construction products | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | 53,947 | 45,832 | 141,883 | 125,847 |
Other | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | 116 | 116 | 248 | 237 |
North America | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | $ 265,505 | $ 239,898 | $ 746,009 | $ 705,932 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||||
Cash and cash equivalents | $ 194,061 | $ 194,061 | $ 166,961 | $ 160,180 | $ 168,514 |
Administrative and all other | |||||
Concentration Risk [Line Items] | |||||
Cash and cash equivalents | $ 135,900 | $ 135,900 | $ 87,500 | $ 113,600 | |
North America | Geographic | Net Sales | |||||
Concentration Risk [Line Items] | |||||
Percentage of net sales | 11.00% | 11.30% | 10.50% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 01, 2019 | Oct. 24, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||||||
Cash dividends declared per common share (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.68 | $ 0.65 | $ 0.22 | ||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Cash dividends declared per common share (in dollars per share) | $ 0.23 | ||||||
Dividends | $ 10.2 | ||||||
Net Proceeds from Sale of the Facility | $ 9.5 | ||||||
Gains (Losses) on Sale of the Facility | $ 5.6 |
Uncategorized Items - ssd930201
Label | Element | Value |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ 791,000 |
Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ 791,000 |