☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 |
Delaware | 45-3707650 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
495 South High Street, Suite 50 | |||||||||||
Columbus, Ohio | 43215 | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||
Common Stock, | $0.01 par value per share | IBP | The New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ||||||||||||
☐ | ||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Item 1A. Risk Factors |
Item 1B. Unresolved Staff Comments |
State | Number of Locations | Approximate Total Square Footage | State | Number of Locations | Approximate Total Square Footage | |||||||||||||||||||||||||||
Alabama | 3 | 29,150 | Nebraska | 2 | 23,241 | |||||||||||||||||||||||||||
Arizona | 2 | 26,159 | Nevada | 1 | 15,350 | |||||||||||||||||||||||||||
California | 24 | 231,269 | New Hampshire | 8 | 76,920 | |||||||||||||||||||||||||||
Colorado | 13 | 124,621 | New Jersey | 4 | 41,100 | |||||||||||||||||||||||||||
Connecticut | 2 | 31,292 | New York | 8 | 101,630 | |||||||||||||||||||||||||||
Delaware | 4 | 37,175 | North Carolina | 13 | 155,765 | |||||||||||||||||||||||||||
Florida | 26 | 234,133 | Ohio | 10 | 443,995 | |||||||||||||||||||||||||||
Georgia | 14 | 220,471 | Oklahoma | 3 | 35,543 | |||||||||||||||||||||||||||
Idaho | 3 | 43,000 | Oregon | 2 | 32,928 | |||||||||||||||||||||||||||
Illinois | 6 | 80,118 | Pennsylvania | 3 | 41,894 | |||||||||||||||||||||||||||
Indiana | 13 | 237,676 | South Carolina | 7 | 103,475 | |||||||||||||||||||||||||||
Kansas | 1 | 14,206 | South Dakota | 2 | 50,000 | |||||||||||||||||||||||||||
Kentucky | 4 | 46,330 | Tennessee | 7 | 111,482 | |||||||||||||||||||||||||||
Louisiana | 2 | 19,535 | Texas | 18 | 349,982 | |||||||||||||||||||||||||||
Maine | 3 | 38,750 | Utah | 7 | 115,523 | |||||||||||||||||||||||||||
Maryland | 4 | 59,710 | Vermont | 1 | 31,020 | |||||||||||||||||||||||||||
Massachusetts | 4 | 45,303 | Virginia | 6 | 73,941 | |||||||||||||||||||||||||||
Michigan | 3 | 41,800 | Washington | 12 | 147,770 | |||||||||||||||||||||||||||
Minnesota | 8 | 231,885 | Wisconsin | 9 | 187,131 |
State | Number of Locations | Approximate Total Square Footage | ||||||
Alabama | 3 | 29,150 | ||||||
Arizona | 2 | 25,846 | ||||||
California | 16 | 170,852 | ||||||
Colorado | 9 | 80,162 | ||||||
Connecticut | 2 | 26,128 | ||||||
Delaware | 4 | 31,175 | ||||||
Florida | 22 | 175,997 | ||||||
Georgia | 11 | 159,704 | ||||||
Idaho | 3 | 43,000 | ||||||
Illinois | 5 | 60,118 | ||||||
Indiana | 13 | 237,536 | ||||||
Kansas | 1 | 14,206 | ||||||
Kentucky | 4 | 46,330 | ||||||
Louisiana | 1 | 10,000 | ||||||
Maine | 4 | 38,750 | ||||||
Maryland | 3 | 34,710 | ||||||
Massachusetts | 4 | 45,303 | ||||||
Michigan | 1 | 34,800 | ||||||
Minnesota | 6 | 114,890 |
State | Number of Locations | Approximate Total Square Footage | ||||||
Mississippi | 1 | 8,000 | ||||||
Nebraska | 1 | 12,000 | ||||||
Nevada | 2 | 15,350 | ||||||
New Hampshire | 7 | 60,812 | ||||||
New Jersey | 2 | 30,300 | ||||||
New York | 10 | 100,900 | ||||||
North Carolina | 15 | 142,940 | ||||||
Ohio | 12 | 445,165 | ||||||
Oklahoma | 3 | 29,008 | ||||||
Oregon | 1 | 30,013 | ||||||
Pennsylvania | 3 | 30,200 | ||||||
South Carolina | 7 | 99,511 | ||||||
Tennessee | 6 | 71,482 | ||||||
Texas | 18 | 281,272 | ||||||
Utah | 4 | 77,955 | ||||||
Vermont | 1 | 31,020 | ||||||
Virginia | 5 | 62,341 | ||||||
Washington | 3 | 56,393 | ||||||
Wisconsin | 9 | 174,228 |
Item 3. Legal Proceedings |
12/31/2016 | 12/29/2017 | 12/31/2018 | 12/31/2019 | 12/31/2020 | 12/31/2021 | ||||||||||||||||||||||||||||||
IBP | 100 | 184 | 82 | 167 | 247 | 342 | |||||||||||||||||||||||||||||
Russell 2000 | 100 | 115 | 102 | 128 | 153 | 176 | |||||||||||||||||||||||||||||
S&P 500 Industrials | 100 | 121 | 105 | 136 | 151 | 182 | |||||||||||||||||||||||||||||
S&P Smallcap 600 | 100 | 113 | 104 | 127 | 141 | 179 |
12/31/2014 | 12/31/2015 | 12/31/2016 | 12/29/2017 | 12/31/2018 | 12/31/2019 | |||||||||||||||||||
IBP | 100 | 139 | 232 | 426 | 189 | 386 | ||||||||||||||||||
Russell 2000 | 100 | 96 | 116 | 133 | 118 | 148 | ||||||||||||||||||
S&P 500 Industrials | 100 | 97 | 116 | 140 | 121 | 157 | ||||||||||||||||||
S&P Smallcap 600 | 100 | 98 | 124 | 140 | 128 | 157 |
Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs (1) | |||||||||||||||||||||||
October 1 - 31, 2021 | 101 | $ | 106.82 | — | — | |||||||||||||||||||||
November 1 - 30, 2021 | — | — | — | — | ||||||||||||||||||||||
December 1 - 31, 2021 | — | — | — | — | ||||||||||||||||||||||
101 | $ | 106.82 | — | $ | 100.0 | million |
of Shares Purchased | Paid Per Share | of Shares Purchased as Part of Publicly Announced Plans or Programs | Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs (1) | |||||||||||||
Years ended December 31, | ||||||||||||||||||||
2019 (1) | 2018 (2) | 2017 | 2016 | 2015 | ||||||||||||||||
Statement of operations (in thousands, except per share amounts): | ||||||||||||||||||||
Net revenue | $ | 1,511,629 | $ | 1,336,432 | $ | 1,132,927 | $ | 862,980 | $ | 662,719 | ||||||||||
Cost of sales | 1,076,809 | 964,841 | 808,901 | 610,532 | 474,426 | |||||||||||||||
Gross profit | 434,820 | 371,591 | 324,026 | 252,448 | 188,293 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling | 75,016 | 67,105 | 58,450 | 49,667 | 37,702 | |||||||||||||||
Administrative and other | 238,644 | 211,269 | 191,310 | 136,731 | 105,639 | |||||||||||||||
Operating income | 121,160 | 93,217 | 74,266 | 66,050 | 44,952 | |||||||||||||||
Other expense | 28,555 | 21,031 | 18,446 | 6,440 | 3,022 | |||||||||||||||
Income before income taxes | 92,605 | 72,186 | 55,820 | 59,610 | 41,930 | |||||||||||||||
Income tax provision | 24,446 | 17,438 | 14,680 | 21,174 | 15,413 | |||||||||||||||
Net income | 68,159 | 54,748 | 41,140 | 38,436 | 26,517 | |||||||||||||||
Basic net income per share | $ | 2.29 | $ | 1.76 | $ | 1.30 | $ | 1.23 | $ | 0.85 | ||||||||||
Diluted net income per share | $ | 2.28 | $ | 1.75 | $ | 1.30 | $ | 1.23 | $ | 0.85 | ||||||||||
Cash flow data (in thousands): | ||||||||||||||||||||
Net cash provided by operating activities | $ | 123,067 | $ | 96,633 | $ | 68,772 | $ | 73,266 | $ | 34,547 | ||||||||||
Net cash used in investing activities | $ | (131,733 | ) | $ | (74,069 | ) | $ | (200,443 | ) | $ | (79,597 | ) | $ | (111,365 | ) | |||||
Net cash provided by financing activities | $ | 96,113 | $ | 5,368 | $ | 179,699 | $ | 13,995 | $ | 72,875 | ||||||||||
Balance sheet data (in thousands): | ||||||||||||||||||||
Cash | $ | 177,889 | $ | 90,442 | $ | 62,510 | $ | 14,482 | $ | 6,818 | ||||||||||
Total current assets | $ | 581,949 | $ | 411,545 | $ | 354,942 | $ | 192,391 | $ | 150,232 | ||||||||||
Property and equipment, net | $ | 106,410 | $ | 90,117 | $ | 81,075 | $ | 67,788 | $ | 57,592 | ||||||||||
Total assets | $ | 1,099,479 | $ | 834,658 | $ | 738,746 | $ | 462,095 | $ | 373,572 | ||||||||||
Total debt (3) | $ | 575,539 | $ | 463,454 | $ | 359,722 | $ | 166,720 | $ | 143,677 | ||||||||||
Total stockholders’ equity | $ | 250,031 | $ | 182,498 | $ | 210,528 | $ | 153,977 | $ | 114,483 |
2019 | Change | 2018 | Change | 2017 | ||||||||||||||||
Net revenue | $ | 1,511,629 | 13.1% | $ | 1,336,432 | 18.0% | $ | 1,132,927 | ||||||||||||
Cost of sales | 1,076,809 | 11.6% | 964,841 | 19.3% | 808,901 | |||||||||||||||
Gross profit | $ | 434,820 | 17.0% | $ | 371,591 | 14.7% | $ | 324,026 | ||||||||||||
Gross profit percentage | 28.8% | 27.8% | 28.6% |
Twelve months ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Period-over-period Growth | ||||||||||||
Sales Growth | 13.1 | % | 18.0 | % | 31.3 | % | ||||||
Same Branch Sales Growth (1) | 8.6 | % | 11.5 | % | 9.8 | % | ||||||
Single-Family Sales Growth (2) | 10.5 | % | 20.0 | % | 17.6 | % | ||||||
Single-Family Same Branch Sales Growth (1)(2) | 4.8 | % | 12.1 | % | 7.9 | % | ||||||
Residential Sales Growth (3) | 10.9 | % | 18.4 | % | 24.6 | % | ||||||
Residential Same Branch Sales Growth (1)(3) | 5.9 | % | 11.4 | % | 11.3 | % | ||||||
Same Branch Sales Growth | ||||||||||||
Volume Growth (1)(4) | 2.6 | % | 6.1 | % | 5.8 | % | ||||||
Price/Mix Growth (1)(5) | 5.4 | % | 5.4 | % | 4.0 | % | ||||||
Large Commercial Sales Growth (1) | 14.3 | % | 11.5 | % | N/A | |||||||
U.S. Housing Market | ||||||||||||
Total Completions Growth | 6.0 | % | 2.8 | % | 8.8 | % | ||||||
Single-Family Completions Growth (2) | 7.6 | % | 5.6 | % | 7.7 | % |
Years ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Period-over-Period Growth | ||||||||||||||||||||
Sales Growth | 19.1 | % | 9.4 | % | 13.1 | % | ||||||||||||||
Same Branch Sales Growth (1) | 9.7 | % | 4.5 | % | 8.6 | % | ||||||||||||||
Single-Family Sales Growth (2) | 21.9 | % | 5.0 | % | 10.5 | % | ||||||||||||||
Single-Family Same Branch Sales Growth (1)(2) | 14.0 | % | 0.4 | % | 4.8 | % | ||||||||||||||
Multi-Family Sales Growth (3) | 14.7 | % | 37.5 | % | 13.5 | % | ||||||||||||||
Multi-Family Same Branch Sales Growth (1)(3) | 6.7 | % | 33.2 | % | 13.2 | % | ||||||||||||||
Residential Sales Growth (4) | 20.7 | % | 9.2 | % | 10.9 | % | ||||||||||||||
Residential Same Branch Sales Growth (1)(4) | 12.8 | % | 4.7 | % | 5.9 | % | ||||||||||||||
Commercial Sales Growth (5) | 10.2 | % | 10.4 | % | 24.7 | % | ||||||||||||||
Commercial Same Branch Sales Growth (1)(5) | (8.0) | % | 3.6 | % | 21.5 | % | ||||||||||||||
Same Branch Sales Growth(6) | ||||||||||||||||||||
Volume Growth (1)(7) | 7.7 | % | 1.9 | % | 2.6 | % | ||||||||||||||
Price/Mix Growth (1)(8) | 3.2 | % | 2.8 | % | 5.4 | % | ||||||||||||||
Large Commercial Same Branch Sales Growth (1)(9) | (3.8) | % | 2.8 | % | 14.3 | % | ||||||||||||||
U.S. Housing Market (10) | ||||||||||||||||||||
Total Completions Growth | 4.0 | % | 2.5 | % | 5.9 | % | ||||||||||||||
Single-Family Completions Growth (2) | 6.1 | % | 0.9 | % | 7.5 | % | ||||||||||||||
Multi-Family Completions Growth (3) | (0.3) | % | 6.3 | % | 2.2 | % | ||||||||||||||
(1) | Same-branch basis represents period-over-period growth for branch locations owned greater than 12 months as of each financial statement date. |
(2) | Calculated based on period-over-period growth in the single-family subset of the residential new construction end market. |
(3) | Calculated based on period-over-period growth in the multi-family subset of the residential new construction end market. | ||||
(4) | Calculated based on period-over-period growth in the residential new construction end market. |
Calculated based on period-over-period growth in the total commercial end market. Our commercial end market consists of large and light commercial projects. | |||||
(6) | During the year ended December 31, 2021, we changed the classification of one of our branches to the large commercial subset of the commercial end market, based on the type of work this branch performs. While this change is immaterial to the sales growth calculations, it affects comparability to the corresponding prior year metrics as the change was made prospectively beginning January 1, 2021. We continually evaluate the branch classifications utilized in our sales growth metrics based on changes in our business and operations over time and future changes may occur to these classifications. | ||||
(7) | Excludes the large commercial end market; calculated as period-over-period change in the number of completed same-branch residential new construction and repair and remodel jobs. |
Excludes the large commercial end market; defined as change in the mix of products sold and related pricing changes and calculated as the change in period-over-period average selling price per same-branch residential new construction and repair and remodel jobs multiplied by total current year jobs. The mix of end customer and product would have an impact on the year-over-year price per job. |
The large commercial end market, as a subset of our total commercial end market, comprises certain of our branches working on projects constructed primarily out of steel and concrete, which are much larger than our average residential job. This market in excluded from the above same branch price/mix and volume growth metrics as to not skew the rates given the much larger per-job revenue compared to our average job. | |||||
(10) | U.S. Census Bureau data, as revised. |
2019 | Change | 2018 | Change | 2017 | ||||||||||||||||
Selling | $ | 75,016 | 11.8% | $ | 67,105 | 14.8% | $ | 58,450 | ||||||||||||
Percentage of total net revenue | 5.0% | 5.0% | 5.2% | |||||||||||||||||
Administrative | $ | 214,134 | 15.2% | $ | 185,850 | 13.0% | $ | 164,453 | ||||||||||||
Percentage of total net revenue | 14.2% | 13.9% | 14.5% | |||||||||||||||||
Amortization | $ | 24,510 | -3.6% | $ | 25,419 | -5.4% | $ | 26,857 | ||||||||||||
Percentage of total net revenue | 1.6% | 1.9% | 2.4% |
2021 | Change | 2020 | Change | 2019 | |||||||||||||||||||||||||
Net revenue | $ | 1,968,650 | 19.1 | % | $ | 1,653,225 | 9.4 | % | $ | 1,511,629 | |||||||||||||||||||
Cost of sales | 1,379,131 | 20.6 | % | 1,143,251 | 6.2 | % | 1,076,809 | ||||||||||||||||||||||
Gross profit | $ | 589,519 | 15.6 | % | $ | 509,974 | 17.3 | % | $ | 434,820 | |||||||||||||||||||
Gross profit percentage | 29.9 | % | 30.8 | % | 28.8 | % |
2021 | Change | 2020 | Change | 2019 | |||||||||||||||||||||||||
Selling | $ | 93,204 | 14.2 | % | $ | 81,613 | 8.8 | % | $ | 75,016 | |||||||||||||||||||
Percentage of total net revenue | 4.7 | % | 4.9 | % | 5.0 | % | |||||||||||||||||||||||
Administrative | $ | 271,356 | 14.0 | % | $ | 237,959 | 11.1 | % | $ | 214,134 | |||||||||||||||||||
Percentage of total net revenue | 13.8 | % | 14.4 | % | 14.2 | % | |||||||||||||||||||||||
Amortization | $ | 37,079 | 29.9 | % | $ | 28,535 | 16.4 | % | $ | 24,510 | |||||||||||||||||||
Percentage of total net revenue | 1.9 | % | 1.7 | % | 1.6 | % |
2019 | Change | 2018 | Change | 2017 | ||||||||||||||||
Interest expense, net | $ | 28,104 | 37.1% | $ | 20,496 | 17.9% | $ | 17,381 | ||||||||||||
Other | 451 | -15.7% | 535 | -49.8% | 1,065 | |||||||||||||||
Total other expense | $ | 28,555 | 35.8% | $ | 21,031 | 14.0% | $ | 18,446 | ||||||||||||
2021 | Change | 2020 | Change | 2019 | |||||||||||||||||||||||||
Interest expense, net | $ | 32,842 | 8.4 | % | $ | 30,291 | 7.8 | % | $ | 28,104 | |||||||||||||||||||
Other | (437) | -209.5 | % | 399 | -11.5 | % | 451 | ||||||||||||||||||||||
Total other expense, net | $ | 32,405 | 5.6 | % | $ | 30,690 | 7.5 | % | $ | 28,555 |
2021 | 2020 | 2019 | |||||||||||||||
Income tax provision | $ | 36,712 | $ | 33,938 | $ | 24,446 | |||||||||||
Effective tax rate | 23.6 | % | 25.9 | % | 26.4 | % |
2019 | 2018 | 2017 | ||||||||||
Income tax provision | $ | 24,446 | $ | 17,438 | $ | 14,680 | ||||||
Effective tax rate | 26.4% | 24.2% | 26.3% |
2021 | 2020 | 2019 | |||||||||||||||
Unrealized gain (loss) on cash flow hedge, net of taxes | $ | 8,536 | $ | (1,620) | $ | (6,712) |
2019 | 2018 | 2017 | ||||||||||
Unrealized (loss) gain on cash flow hedge, net of taxes | $ | (6,712) | $ | (1,050) | $ | 507 |
2023 | $57,945 | ||||
2024 | 51,568 | ||||
2025 | 49,442 | ||||
2026 | 39,868 | ||||
Thereafter | 829,246 |
2019 | 2018 | |||||||
Cash and cash equivalents | $ | 177,889 | $ | 90,442 | ||||
Short-term investments | 37,961 | 10,060 | ||||||
ABL Revolver | 200,000 | 150,000 | ||||||
Less: outstanding letters of credit and cash collateral | (38,672 | ) | (28,887 | ) | ||||
Total liquidity (1) | $ | 377,178 | $ | 221,615 | ||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Net cash provided by operating activities | $ | 138,314 | $ | 180,789 | $ | 123,067 | |||||||||||
Net cash used in investing activities | $ | (278,439) | $ | (77,794) | $ | (131,733) | |||||||||||
Net cash provided by (used in) financing activities | $ | 242,090 | $ | (49,364) | $ | 96,113 |
As of December 31, 2021 | |||||
Performance bonds | $ | 66,838 | |||
Insurance letters of credit and cash collateral | 51,393 | ||||
Permit and license bonds | 7,002 | ||||
Total bonds and letters of credit | $ | 125,233 |
As of December 31, 2019 | ||||
Performance bonds | $ | 59,816 | ||
Insurance letters of credit and cash collateral | 49,712 | |||
Permit and license bonds | 7,156 | |||
Total bonds and letters of credit | $ | 116,684 | ||
Payments due by period | ||||||||||||||||||||||||||||
(in thousands) | Total | 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | |||||||||||||||||||||
Long-term debt obligations (1) | $ | 764,694 | $ | 52,368 | $ | 46,588 | $ | 42,025 | $ | 36,142 | $ | 30,014 | $ | 557,557 | ||||||||||||||
Finance lease obligations (2) | 7,023 | 3,081 | 1,973 | 1,037 | 673 | 259 | — | |||||||||||||||||||||
Operating lease obligations (3) | 50,407 | 17,047 | 12,247 | 7,438 | 4,207 | 2,643 | 6,825 | |||||||||||||||||||||
Purchase obligations (4) | 35,132 | 21,132 | 14,000 | — | — | — | — |
Item 8. Financial Statements and Supplementary Data |
As of December 31, | |||||||||||
2021 | 2020 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 333,485 | $ | 231,520 | |||||||
Accounts receivable (less allowance for credit losses of $8,717 and $8,789 at December 31, 2021 and 2020, respectively) | 312,767 | 266,566 | |||||||||
Inventories | 143,039 | 77,179 | |||||||||
Prepaid expenses and other current assets | 70,025 | 48,678 | |||||||||
Total current assets | 859,316 | 623,943 | |||||||||
Property and equipment, net | 105,933 | 104,022 | |||||||||
Operating lease right-of-use assets | 69,871 | 53,766 | |||||||||
Goodwill | 322,517 | 216,870 | |||||||||
Customer relationships, net | 178,264 | 108,504 | |||||||||
Other intangibles, net | 86,157 | 62,889 | |||||||||
Other non-current assets | 31,144 | 17,682 | |||||||||
Total assets | $ | 1,653,202 | $ | 1,187,676 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Current maturities of long-term debt | $ | 30,839 | $ | 23,355 | |||||||
Current maturities of operating lease obligations | 23,224 | 18,758 | |||||||||
Current maturities of finance lease obligations | 1,747 | 2,073 | |||||||||
Accounts payable | 132,705 | 101,462 | |||||||||
Accrued compensation | 50,964 | 45,876 | |||||||||
Other current liabilities | 68,090 | 44,951 | |||||||||
Total current liabilities | 307,569 | 236,475 | |||||||||
Long-term debt | 832,193 | 541,957 | |||||||||
Operating lease obligations | 46,075 | 34,413 | |||||||||
Finance lease obligations | 3,297 | 2,430 | |||||||||
Deferred income taxes | 4,819 | 35 | |||||||||
Other long-term liabilities | 42,409 | 53,184 | |||||||||
Total liabilities | 1,236,362 | 868,494 | |||||||||
Commitments and contingencies (Note 16) | 0 | 0 | |||||||||
Stockholders’ equity | |||||||||||
Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at December 31, 2021 and 2020, respectively | — | — | |||||||||
Common stock; $0.01 par value: 100,000,000 authorized, 33,271,659 and 33,141,879 issued and 29,706,401 and 29,623,272 shares outstanding at December 31, 2021 and 2020, respectively | 333 | 331 | |||||||||
Additional paid in capital | 211,430 | 199,847 | |||||||||
Retained earnings | 352,543 | 269,420 | |||||||||
Treasury stock; at cost: 3,565,258 and 3,518,607 shares at December 31, 2021 and 2020, respectively | (147,239) | (141,653) | |||||||||
Accumulated other comprehensive loss | (227) | (8,763) | |||||||||
Total stockholders’ equity | 416,840 | 319,182 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,653,202 | $ | 1,187,676 |
As of December 31, | ||||||||
2019 | 2018 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 177,889 | $ | 90,442 | ||||
Investments | 37,961 | 10,060 | ||||||
Accounts receivable (less allowance for doubtful accounts of $ 6,878 and $5,085 at December 31, 2019 and 2018, respectively) | 244,519 | 214,121 | ||||||
Inventories | 74,606 | 61,162 | ||||||
Other current assets | 46,974 | 35,760 | ||||||
Total current assets | 581,949 | 411,545 | ||||||
Property and equipment, net | 106,410 | 90,117 | ||||||
Operating lease right-of-use assets | 45,691 | — | ||||||
Goodwill | 195,652 | 173,049 | ||||||
Intangibles, net | 153,562 | 149,790 | ||||||
Other non-current assets | 16,215 | 10,157 | ||||||
Total assets | $ | 1,099,479 | $ | 834,658 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | 24,164 | $ | 22,642 | ||||
Current maturities of operating lease obligations | 15,459 | — | ||||||
Current maturities of finance lease obligations | 2,747 | 4,806 | ||||||
Accounts payable | 98,871 | 96,949 | ||||||
Accrued compensation | 33,636 | 27,923 | ||||||
Other current liabilities | 39,272 | 29,366 | ||||||
Total current liabilities | 214,149 | 181,686 | ||||||
Long-term debt | 545,031 | 432,182 | ||||||
Operating lease obligations | 29,785 | — | ||||||
Finance lease obligations | 3,597 | 3,824 | ||||||
Deferred income taxes | 9,175 | 6,695 | ||||||
Other long-term liabilities | 47,711 | 27,773 | ||||||
Total liabilities | 849,448 | 652,160 | ||||||
Commitments and contingencies (Note 15) | ||||||||
Stockholders’ equity | ||||||||
Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at December 31, 2019 and 2018, respectively | — | — | ||||||
Common stock; $0.01 par value: 100,000,000 authorized, 32,871,504 and 32,723,972 issued and 30,016,340 and 29,915,611 shares outstanding at December 31, 2019 and 2018, respectively | 329 | 327 | ||||||
Additional paid in capital | 190,230 | 181,815 | ||||||
Retained earnings | 173,371 | 105,212 | ||||||
Treasury stock; at cost: 2,855,164and 2,808,361 shares at December 31, 2019 and 2018, respectively | (106,756 | ) | (104,425 | ) | ||||
Accumulated other comprehensive loss | (7,143 | ) | (431 | ) | ||||
Total stockholders’ equity | 250,031 | 182,498 | ||||||
Total liabilities and stockholders’ equity | $ | 1,099,479 | $ | 834,658 | ||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Net revenue | $ | 1,968,650 | $ | 1,653,225 | $ | 1,511,629 | |||||||||||
Cost of sales | 1,379,131 | 1,143,251 | 1,076,809 | ||||||||||||||
Gross profit | 589,519 | 509,974 | 434,820 | ||||||||||||||
Operating expenses | |||||||||||||||||
Selling | 93,204 | 81,613 | 75,016 | ||||||||||||||
Administrative | 271,356 | 237,959 | 214,134 | ||||||||||||||
Amortization | 37,079 | 28,535 | 24,510 | ||||||||||||||
Operating income | 187,880 | 161,867 | 121,160 | ||||||||||||||
Other expense | |||||||||||||||||
Interest expense, net | 32,842 | 30,291 | 28,104 | ||||||||||||||
Other (income) expense | (437) | 399 | 451 | ||||||||||||||
Income before income taxes | 155,475 | 131,177 | 92,605 | ||||||||||||||
Income tax provision | 36,712 | 33,938 | 24,446 | ||||||||||||||
Net income | $ | 118,763 | $ | 97,239 | $ | 68,159 | |||||||||||
Other comprehensive gain (loss), net of tax: | |||||||||||||||||
Net change on cash flow hedges, net of tax (provision) benefit of $(2,773), $550 and $2,225 for the twelve months ended December 31, 2021, 2020 and 2019, respectively | 8,536 | (1,620) | (6,712) | ||||||||||||||
Comprehensive income | $ | 127,299 | $ | 95,619 | $ | 61,447 | |||||||||||
Earnings Per Share: | |||||||||||||||||
Basic | $ | 4.04 | $ | 3.30 | $ | 2.29 | |||||||||||
Diluted | $ | 4.01 | $ | 3.27 | $ | 2.28 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 29,367,676 | 29,504,115 | 29,752,644 | ||||||||||||||
Diluted | 29,628,527 | 29,717,609 | 29,873,106 | ||||||||||||||
Cash dividends declared per share | $ | 1.20 | $ | — | $ | — |
Years ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Net revenue | $ | 1,511,629 | $ | 1,336,432 | $ | 1,132,927 | ||||||
Cost of sales | 1,076,809 | 964,841 | 808,901 | |||||||||
Gross profit | 434,820 | 371,591 | 324,026 | |||||||||
Operating expenses | ||||||||||||
Selling | 75,016 | 67,105 | 58,450 | |||||||||
Administrative | 214,134 | 185,850 | 164,453 | |||||||||
Amortization | 24,510 | 25,419 | 26,857 | |||||||||
Operating income | 121,160 | 93,217 | 74,266 | |||||||||
Other expense | ||||||||||||
Interest expense, net | 28,104 | 20,496 | 17,381 | |||||||||
Other | 451 | 535 | 1,065 | |||||||||
Income before income taxes | 92,605 | 72,186 | 55,820 | |||||||||
Income tax provision | 24,446 | 17,438 | 14,680 | |||||||||
Net income | $ | 68,159 | $ | 54,748 | $ | 41,140 | ||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||
Unrealized (loss) gain on cash flow hedge, net of tax benefit (provision) of $ 2,225, $284 and ($206) for the twelve months ended December 31, 2019, 2018 and 2017, respectively | (6,712 | ) | (1,050 | ) | 507 | |||||||
Comprehensive income | $ | 61,447 | $ | 53,698 | $ | 41,647 | ||||||
Basic net income per share | $ | 2.29 | $ | 1.76 | $ | 1.30 | ||||||
Diluted net income per share | $ | 2.28 | $ | 1.75 | $ | 1.30 | ||||||
Weighted average shares outstanding: | ||||||||||||
Basic | 29,752,644 | 31,107,231 | 31,639,283 | |||||||||
Diluted | 29,873,106 | 31,229,558 | 31,756,363 |
Common Stock | Additional Paid In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
BALANCE—January 1, 2019 | 32,723,972 | $ | 327 | $ | 181,815 | $ | 105,212 | (2,808,361) | $ | (104,425) | $ | (431) | $ | 182,498 | |||||||||||||||||||||||||||||||||
Net income | 68,159 | 68,159 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock awards to employees | 139,862 | 2 | (2) | — | |||||||||||||||||||||||||||||||||||||||||||
Surrender of common stock awards | (46,803) | (2,331) | (2,331) | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 8,057 | 8,057 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation issued to directors | 7,670 | 360 | 360 | ||||||||||||||||||||||||||||||||||||||||||||
Net change in cash flow hedges, net of tax | (6,712) | (6,712) | |||||||||||||||||||||||||||||||||||||||||||||
BALANCE—January 1, 2020 | 32,871,504 | $ | 329 | $ | 190,230 | $ | 173,371 | (2,855,164) | $ | (106,756) | $ | (7,143) | $ | 250,031 | |||||||||||||||||||||||||||||||||
Net income | 97,239 | 97,239 | |||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting change | (1,190) | (1,190) | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock awards to employees | 264,004 | 2 | (2) | — | |||||||||||||||||||||||||||||||||||||||||||
Surrender of common stock awards | (30,223) | (973) | (973) | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 9,286 | 9,286�� | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation issued to directors | 6,371 | 333 | 333 | ||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchase | (633,220) | (33,924) | (33,924) | ||||||||||||||||||||||||||||||||||||||||||||
Net change in cash flow hedges, net of tax | (1,620) | (1,620) | |||||||||||||||||||||||||||||||||||||||||||||
BALANCE—January 1, 2021 | 33,141,879 | $ | 331 | $ | 199,847 | $ | 269,420 | (3,518,607) | $ | (141,653) | $ | (8,763) | $ | 319,182 | |||||||||||||||||||||||||||||||||
Net income | 118,763 | 118,763 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock awards to employees | 125,550 | 2 | (2) | — | |||||||||||||||||||||||||||||||||||||||||||
Surrender of common stock awards | (46,651) | (5,586) | (5,586) | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 11,118 | 11,118 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation issued to directors | 4,230 | 467 | 467 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends Declared ($1.20 per share) | (35,640) | (35,640) | |||||||||||||||||||||||||||||||||||||||||||||
Net change in cash flow hedges, net of tax | 8,536 | 8,536 | |||||||||||||||||||||||||||||||||||||||||||||
BALANCE—December 31, 2021 | 33,271,659 | $ | 333 | $ | 211,430 | $ | 352,543 | (3,565,258) | $ | (147,239) | $ | (227) | $ | 416,840 |
Common Stock | Additional Paid In | Retained | Treasury Stock | Accumulated Other Comprehensive | Stockholders’ | |||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | Income (Loss) | Equity | |||||||||||||||||||||||||
BALANCE—January 1, 2017 | 32,135,176 | $ | 321 | $ | 158,581 | $ | 7,294 | (650,402 | ) | $ | (12,219 | ) | $ | — | $ | 153,977 | ||||||||||||||||
Net income | 41,140 | 41,140 | ||||||||||||||||||||||||||||||
Purchase of remaining interest in subsidiary | (1,888 | ) | (1,888 | ) | ||||||||||||||||||||||||||||
Issuance of common stock for acquisition | 282,577 | 3 | 10,856 | 10,859 | ||||||||||||||||||||||||||||
Issuance of common stock awards to employees | 101,241 | 1 | (1 | ) | — | |||||||||||||||||||||||||||
Surrender of common stock awards by employees | (12,386 | ) | (562 | ) | (562 | ) | ||||||||||||||||||||||||||
Share-based compensation expense | 6,195 | 6,195 | ||||||||||||||||||||||||||||||
Share-based compensation issued to directors | 5,940 | 300 | 300 | |||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 507 | 507 | ||||||||||||||||||||||||||||||
BALANCE—January 1, 2018 | 32,524,934 | $ | 325 | $ | 174,043 | $ | 48,434 | (662,788 | ) | $ | (12,781 | ) | $ | 507 | $ | 210,528 | ||||||||||||||||
Net income | 54,748 | 54,748 | ||||||||||||||||||||||||||||||
Cumulative effect of accounting changes, net of tax | 2,030 | 112 | 2,142 | |||||||||||||||||||||||||||||
Issuance of common stock awards to employees | 194,093 | 2 | (2 | ) | — | |||||||||||||||||||||||||||
Surrender of common stock awards by employees | (43,871 | ) | (2,282 | ) | (2,282 | ) | ||||||||||||||||||||||||||
Share-based compensation expense | 7,598 | 7,598 | ||||||||||||||||||||||||||||||
Share-based compensation issued to directors | 4,945 | 176 | 176 | |||||||||||||||||||||||||||||
Common stock repurchase | (2,101,702 | ) | (89,362 | ) | (89,362 | ) | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (1,050 | ) | (1,050 | ) | ||||||||||||||||||||||||||||
BALANCE—January 1, 2019 | 32,723,972 | $ | 327 | $ | 181,815 | $ | 105,212 | (2,808,361 | ) | $ | (104,425 | ) | $ | (431 | ) | $ | 182,498 | |||||||||||||||
Net income | 68,159 | 68,159 | ||||||||||||||||||||||||||||||
Issuance of common stock awards to employees | 139,862 | 2 | (2 | ) | — | |||||||||||||||||||||||||||
Surrender of common stock awards by employees | (46,803 | ) | (2,331 | ) | (2,331 | ) | ||||||||||||||||||||||||||
Share-based compensation expense | 8,057 | 8,057 | ||||||||||||||||||||||||||||||
Share-based compensation issued to directors | 7,670 | 360 | 360 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (6,712 | ) | (6,712 | ) | ||||||||||||||||||||||||||||
BALANCE—December 31, 2019 | 32,871,504 | $ | 329 | $ | 190,230 | $ | 173,371 | (2,855,164 | ) | $ | (106,756 | ) | $ | (7,143 | ) | $ | 250,031 | |||||||||||||||
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income | $ | 118,763 | $ | 97,239 | $ | 68,159 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||
Depreciation and amortization of property and equipment | 43,562 | 41,339 | 38,862 | ||||||||||||||
Amortization of operating lease right-of-use assets | 22,258 | 18,122 | 15,691 | ||||||||||||||
Amortization of intangibles | 37,079 | 28,535 | 24,510 | ||||||||||||||
Amortization of deferred financing costs and debt discount | 1,354 | 1,332 | 1,184 | ||||||||||||||
Provision for credit losses | 2,227 | 4,444 | 4,312 | ||||||||||||||
Write-off of debt issuance costs | 1,767 | — | 3,725 | ||||||||||||||
Gain on sale of property and equipment | (1,840) | (786) | (140) | ||||||||||||||
Noncash stock compensation | 13,752 | 10,826 | 8,727 | ||||||||||||||
Deferred income taxes | (438) | (8,475) | 5,341 | ||||||||||||||
Amortization of terminated interest rate swap | 3,223 | 1,326 | — | ||||||||||||||
Changes in assets and liabilities, excluding effects of acquisitions | |||||||||||||||||
Accounts receivable | (16,775) | (10,489) | (29,582) | ||||||||||||||
Inventories | (54,003) | 187 | (10,597) | ||||||||||||||
Other assets | (19,885) | (870) | (16,959) | ||||||||||||||
Accounts payable | 26,424 | (203) | 947 | ||||||||||||||
Income taxes receivable/payable | (4,403) | 4,296 | (3,944) | ||||||||||||||
Other liabilities | (34,751) | (6,034) | 12,831 | ||||||||||||||
Net cash provided by operating activities | 138,314 | 180,789 | 123,067 | ||||||||||||||
Cash flows from investing activities | |||||||||||||||||
Purchases of investments | — | (776) | (52,795) | ||||||||||||||
Maturities of short term investments | — | 38,693 | 25,061 | ||||||||||||||
Purchases of property and equipment | (36,979) | (33,587) | (50,167) | ||||||||||||||
Acquisitions of businesses, net of cash acquired of $1,707, $0 and $334 in 2021, 2020 and 2019, respectively | (241,308) | (76,446) | (51,706) | ||||||||||||||
Proceeds from sale of property and equipment | 2,694 | 1,187 | 761 | ||||||||||||||
Other | (2,846) | (6,865) | (2,887) | ||||||||||||||
Net cash used in investing activities | (278,439) | (77,794) | (131,733) | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||
Proceeds from senior notes (Note 8) | — | — | 300,000 | ||||||||||||||
Proceeds from term loan (Note 8) | 500,000 | — | — | ||||||||||||||
Payments on term loan (Note 8) | (200,000) | — | (195,750) | ||||||||||||||
Proceeds from vehicle and equipment notes payable | 27,834 | 21,290 | 33,090 | ||||||||||||||
Debt issuance costs | (7,520) | (157) | (6,691) | ||||||||||||||
Principal payments on long-term debt | (26,301) | (26,685) | (21,316) | ||||||||||||||
Principal payments on finance lease obligations | (2,125) | (2,632) | (4,157) | ||||||||||||||
Acquisition-related obligations | (8,918) | (6,283) | (6,732) | ||||||||||||||
Dividends paid | (35,294) | — | — | ||||||||||||||
Repurchase of common stock | — | (33,924) | — | ||||||||||||||
Surrender of common stock awards by employees | (5,586) | (973) | (2,331) | ||||||||||||||
Net cash provided by (used in) financing activities | 242,090 | (49,364) | 96,113 | ||||||||||||||
Net change in cash and cash equivalents | 101,965 | 53,631 | 87,447 | ||||||||||||||
Cash and cash equivalents at beginning of period | 231,520 | 177,889 | 90,442 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 333,485 | $ | 231,520 | $ | 177,889 | |||||||||||
Supplemental disclosures of cash flow information | |||||||||||||||||
Net cash paid during the period for: | |||||||||||||||||
Interest | $ | 25,976 | $ | 26,324 | $ | 20,943 | |||||||||||
Income taxes, net of refunds | 39,241 | 37,072 | 22,633 | ||||||||||||||
Supplemental disclosure of noncash activities | |||||||||||||||||
Right-of-use assets obtained in exchange for operating lease obligations | 38,084 | 26,001 | 18,907 | ||||||||||||||
Release of indemnification of acquisition-related debt | 2,036 | — | — | ||||||||||||||
Termination of operating lease obligations and right-of-use assets | — | — | (2,946) | ||||||||||||||
Property and equipment obtained in exchange for finance lease obligations | 2,735 | 1,000 | 2,809 | ||||||||||||||
Seller obligations in connection with acquisition of businesses | 29,169 | 14,086 | 7,543 | ||||||||||||||
Unpaid purchases of property and equipment included in accounts payable | 441 | 1,013 | 1,903 |
Years ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Cash flows from operating activities | ||||||||||||
Net income | $ | 68,159 | $ | 54,748 | $ | 41,140 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||
Depreciation and amortization of property and equipment | 38,862 | 33,306 | 28,285 | |||||||||
Amortization of operating lease right-of-use assets | 15,691 | — | — | |||||||||
Amortization of intangibles | 24,510 | 25,419 | 26,857 | |||||||||
Amortization of deferred financing costs and debt discount | 1,184 | 1,164 | 1,093 | |||||||||
Provision for doubtful accounts | 4,312 | 2,630 | 2,834 | |||||||||
Write-off of debt issuance costs | 3,725 | 1,164 | 2,113 | |||||||||
Gain on sale of property and equipment | (140 | ) | (1,098 | ) | (492 | ) | ||||||
Noncash stock compensation | 8,727 | 7,839 | 6,592 | |||||||||
Deferred income taxes | 5,341 | 470 | (6,160 | ) | ||||||||
Changes in assets and liabilities, excluding effects of acquisitions | ||||||||||||
Accounts receivable | (29,582 | ) | (30,166 | ) | (19,955 | ) | ||||||
Inventories | (10,597 | ) | (15,717 | ) | (3,667 | ) | ||||||
Other assets | (16,959 | ) | (4,552 | ) | (4,602 | ) | ||||||
Accounts payable | 947 | 8,146 | 6,303 | |||||||||
Income taxes receivable/payable | (3,944 | ) | 10,273 | (18,605 | ) | |||||||
Other liabilities | 12,831 | 3,007 | 7,036 | |||||||||
Net cash provided by operating activities | 123,067 | 96,633 | 68,772 | |||||||||
Cash flows from investing activities | ||||||||||||
Purchases of investments | (52,795 | ) | (22,818 | ) | (30,194 | ) | ||||||
Maturities of short term investments | 25,061 | 42,782 | — | |||||||||
Purchases of property and equipment | (50,167 | ) | (35,232 | ) | (31,668 | ) | ||||||
Acquisitions of businesses, net of cash acquired of $334, $0 and $247 in 2019, 2018 and 2017, respectively | (51,706 | ) | (57,740 | ) | (137,120 | ) | ||||||
Proceeds from sale of property and equipment | 761 | 1,958 | 959 | |||||||||
Other | (2,887 | ) | (3,019 | ) | (2,420 | ) | ||||||
Net cash used in investing activities | (131,733 | ) | (74,069 | ) | (200,443 | ) | ||||||
Cash flows from financing activities | ||||||||||||
Proceeds from senior notes (Note 7) | 300,000 | — | — | |||||||||
Proceeds from term loan (Note 7) | — | 100,000 | 300,000 | |||||||||
Payments on term loan (Note 7) | (195,750 | ) | (2,750 | ) | (97,750 | ) | ||||||
Proceeds from delayed draw term loan | — | — | 112,500 | |||||||||
Payments on delayed draw term loan | — | — | (125,000 | ) | ||||||||
Proceeds from vehicle and equipment notes payable | 33,090 | 25,443 | 22,460 | |||||||||
Debt issuance costs | (6,691 | ) | (1,992 | ) | (8,281 | ) | ||||||
Principal payments on long-term debt | (21,316 | ) | (14,130 | ) | (10,002 | ) | ||||||
Principal payments on finance lease obligations | (4,157 | ) | (5,604 | ) | (7,314 | ) | ||||||
Acquisition-related obligations | (6,732 | ) | (3,954 | ) | (4,464 | ) | ||||||
Repurchase of common stock | — | (89,363 | ) | — | ||||||||
Surrender of common stock awards by employees | (2,331 | ) | (2,282 | ) | (562 | ) | ||||||
Purchase of remaining interest in subsidiary | — | — | (1,888 | ) | ||||||||
Net cash provided by financing activities | 96,113 | 5,368 | 179,699 | |||||||||
Net change in cash and cash equivalents | 87,447 | 27,932 | 48,028 | |||||||||
Cash and cash equivalents at beginning of period | 90,442 | 62,510 | 14,482 | |||||||||
Cash and cash equivalents at end of period | $ | 177,889 | $ | 90,442 | $ | 62,510 | ||||||
Supplemental disclosures of cash flow information | ||||||||||||
Net cash paid during the period for: | ||||||||||||
Interest | $ | 20,943 | $ | 20,075 | $ | 13,758 | ||||||
Income taxes, net of refunds | 22,633 | 4,950 | 38,887 | |||||||||
Supplemental disclosure of noncash activities | ||||||||||||
Common stock issued for acquisition of business | — | — | 10,859 | |||||||||
Right-of-use assets obtained in exchange for operating lease obligations | 18,907 | — | — | |||||||||
Termination of operating lease obligations and right-of-use assets | (2,946 | ) | — | — | ||||||||
Property and equipment obtained in exchange for finance lease obligations | 2,809 | 2,208 | 4,440 | |||||||||
Seller obligations in connection with acquisition of businesses | 7,543 | 7,540 | 5,128 | |||||||||
Unpaid purchases of property and equipment included in accounts payable | 1,903 | 1,773 | 2,003 |
January 1, 2017 | $ | 3,397 | ||
Charged to costs and expenses | 2,834 | |||
Charged to other accounts (1) | 699 | |||
Deductions (2) | (2,125 | ) | ||
December 31, 2017 | $ | 4,805 | ||
Charged to costs and expenses | 2,630 | |||
Charged to other accounts (1) | 675 | |||
Deductions (2) | (3,025 | ) | ||
December 31, 2018 | $ | 5,085 | ||
Charged to costs and expenses | 4,312 | |||
Charged to other accounts (1) | 1,269 | |||
Deductions (2) | (3,788 | ) | ||
December 31, 2019 | $ | 6,878 | ||
Standard | Effective Date | Adoption | ||||||||||||||
ASU | Effective upon issuance | This |
other significant matters | ||||||
market occur. | ||||||||
other significant matters | ||||||||
2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes | January 1, 2021 | This pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles of Topic 740 and improves the consistent application of GAAP by clarifying and amending existing guidance. The adoption of this standard did not impact our financial statements or have a material effect on our disclosures. |
Standard | Description | Effective Date | Effect on the financial statements or other significant matters | |||||||||||||||||
ASU 2021-08, Business Combinations (Topic 805): Accounting for contract assets and contract liabilities from contracts with customers | This pronouncement amends Topic 805 to require an acquirer to account for revenue contracts in a business combination in accordance with Topic 606 as if the acquirer had originated the contracts. | Annual periods beginning after December 15, | We are currently assessing the impact of the adoption on our consolidated financial statements. |
Years ended December 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Residential new construction | $ | 1,500,750 | 76 | % | $ | 1,243,498 | 75 | % | $ | 1,138,475 | 75 | % | |||||||||||||||||||||||
Repair and remodel | 133,986 | 7 | % | 106,784 | 7 | % | 98,771 | 7 | % | ||||||||||||||||||||||||||
Commercial | 333,914 | 17 | % | 302,943 | 18 | % | 274,383 | 18 | % | ||||||||||||||||||||||||||
Net revenues | $ | 1,968,650 | 100 | % | $ | 1,653,225 | 100 | % | $ | 1,511,629 | 100 | % |
Year ended December 31, | ||||||||||||||||
2019 | 2018 | |||||||||||||||
Residential new construction | $ | 1,138,475 | 75 | % | $ | 1,026,473 | 77 | % | ||||||||
Repair and remodel | 98,771 | 7 | % | 89,977 | 7 | % | ||||||||||
Commercial | 274,383 | 18 | % | 219,982 | 16 | % | ||||||||||
Net revenues | $ | 1,511,629 | 100 | % | $ | 1,336,432 | 100 | % | ||||||||
Year ended December 31, | ||||||||||||||||
2019 | 2018 | |||||||||||||||
Insulation | $ | 970,070 | 64 | % | $ | 876,118 | 66 | % | ||||||||
Waterproofing | 112,075 | 7 | % | 97,683 | 7 | % | ||||||||||
Shower doors, shelving and mirrors | 105,745 | 7 | % | 90,352 | 7 | % | ||||||||||
Garage doors | 89,959 | 6 | % | 79,539 | 6 | % | ||||||||||
Rain gutters | 49,788 | 3 | % | 44,203 | 3 | % | ||||||||||
Window blinds | 41,641 | 3 | % | 28,981 | 2 | % | ||||||||||
Other building products | 142,351 | 10 | % | 119,556 | 9 | % | ||||||||||
Net revenues | $ | 1,511,629 | 100 | % | $ | 1,336,432 | 100 | % | ||||||||
Years ended December 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Insulation | $ | 1,262,628 | 64 | % | $ | 1,058,316 | 64 | % | $ | 970,070 | 64 | % | |||||||||||||||||||||||
Shower doors, shelving and mirrors | 138,797 | 7 | % | 117,131 | 7 | % | 105,745 | 7 | % | ||||||||||||||||||||||||||
Waterproofing | 130,924 | 7 | % | 122,962 | 7 | % | 112,075 | 7 | % | ||||||||||||||||||||||||||
Garage doors | 108,675 | 5 | % | 93,516 | 6 | % | 89,959 | 6 | % | ||||||||||||||||||||||||||
Rain gutters | 86,406 | 4 | % | 62,672 | 4 | % | 49,788 | 3 | % | ||||||||||||||||||||||||||
Fireproofing/firestopping | 59,381 | 3 | % | 49,648 | 3 | % | 41,845 | 3 | % | ||||||||||||||||||||||||||
Window blinds | 50,255 | 3 | % | 46,984 | 3 | % | 41,641 | 3 | % | ||||||||||||||||||||||||||
Other building products | 131,584 | 7 | % | 101,996 | 6 | % | 100,506 | 7 | % | ||||||||||||||||||||||||||
Net revenues | $ | 1,968,650 | 100 | % | $ | 1,653,225 | 100 | % | $ | 1,511,629 | 100 | % |
As of December 31, | As of December 31, | ||||||||||||||||||
2019 | 2018 | 2021 | 2020 | ||||||||||||||||
Contract assets | $ | 22,138 | $ | 15,092 | Contract assets | $ | 32,679 | $ | 24,334 | ||||||||||
Contract liabilities | (8,888 | ) | (7,468 | ) | Contract liabilities | (14,153) | (8,965) |
As of December 31, | As of December 31, | ||||||||||||||||||
2019 | 2018 | 2021 | 2020 | ||||||||||||||||
Costs incurred on uncompleted contracts | $ | 110,818 | $ | 114,826 | Costs incurred on uncompleted contracts | $ | 206,050 | $ | 169,544 | ||||||||||
Estimated earnings | 61,185 | 58,952 | Estimated earnings | 106,163 | 90,737 | ||||||||||||||
Total | 172,003 | 173,778 | Total | 312,213 | 260,281 | ||||||||||||||
Less: Billings to date | 155,599 | 163,112 | Less: Billings to date | 285,978 | 240,665 | ||||||||||||||
Net under billings | $ | 16,404 | $ | 10,666 | Net under billings | $ | 26,235 | $ | 19,616 | ||||||||||
As of December 31, | As of December 31, | ||||||||||||||||||
2019 | 2018 | 2021 | 2020 | ||||||||||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) | $ | 22,138 | $ | 15,092 | Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) | $ | 32,679 | $ | 24,334 | ||||||||||
Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) | (5,734 | ) | (4,426 | ) | Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) | (6,444) | (4,718) | ||||||||||||
Net under billings | $ | 16,404 | $ | 10,666 | Net under billings | $ | 26,235 | $ | 19,616 | ||||||||||
January 1, 2019 | $ | 5,085 | |||
Current period provision | 4,312 | ||||
Recoveries collected and additions | 1,269 | ||||
Amounts written off | (3,788) | ||||
December 31, 2019 | $ | 6,878 | |||
Cumulative effect of change in accounting principle | 1,600 | ||||
Current period provision | 4,444 | ||||
Recoveries collected and additions | 503 | ||||
Amounts written off | (4,636) | ||||
December 31, 2020 | $ | 8,789 | |||
Current period provision | 2,227 | ||||
Recoveries collected and additions | 574 | ||||
Amounts written off | (2,873) | ||||
December 31, 2021 | $ | 8,717 |
As of December 31, | As of December 31, | ||||||||||||||||||
2019 | 2018 | 2021 | 2020 | ||||||||||||||||
Land | $ | 108 | $ | — | Land | $ | 108 | $ | 108 | ||||||||||
Buildings | 3,901 | — | Buildings | 3,901 | 3,901 | ||||||||||||||
Leasehold improvements | 7,748 | 6,717 | Leasehold improvements | 10,935 | 10,288 | ||||||||||||||
Furniture, fixtures and equipment | 49,199 | 38,369 | Furniture, fixtures and equipment | 64,556 | 55,780 | ||||||||||||||
Vehicles and equipment | 203,310 | 177,969 | Vehicles and equipment | 248,848 | 223,003 | ||||||||||||||
328,348 | 293,080 | ||||||||||||||||||
264,266 | 223,055 | ||||||||||||||||||
Less: accumulated depreciation and amortization | (157,856 | ) | (132,938 | ) | Less: accumulated depreciation and amortization | (222,415) | (189,058) | ||||||||||||
$ | 105,933 | $ | 104,022 | ||||||||||||||||
$ | 106,410 | $ | 90,117 | ||||||||||||||||
As of December 31, | Years ended December 31, | ||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||
Cost of sales | $ | 36,922 | $ | 31,526 | $ | 26,731 | Cost of sales | $ | 40,938 | $ | 39,011 | $ | 36,922 | ||||||||||||||||
Administrative | 1,939 | 1,779 | 1,554 | Administrative | 2,623 | 2,328 | 1,939 |
Goodwill (Gross) | Accumulated Impairment Losses | Goodwill (Net) | ||||||||||
January 1, 2018 | $ | 225,470 | $ | (70,004 | ) | $ | 155,466 | |||||
Business combinations | 17,023 | — | 17,023 | |||||||||
Other | 560 | — | 560 | |||||||||
December 31, 2018 | 243,053 | (70,004 | ) | 173,049 | ||||||||
Business combinations | 22,405 | — | 22,405 | |||||||||
Other | 198 | — | 198 | |||||||||
December 31, 2019 | $ | 265,656 | $ | (70,004 | ) | $ | 195,652 | |||||
Goodwill (Gross) | Accumulated Impairment Losses | Goodwill (Net) | |||||||||||||||
January 1, 2020 | $ | 265,656 | $ | (70,004) | $ | 195,652 | |||||||||||
Business combinations | 21,305 | — | 21,305 | ||||||||||||||
Other | (87) | — | (87) | ||||||||||||||
December 31, 2020 | 286,874 | (70,004) | 216,870 | ||||||||||||||
Business combinations | 105,617 | — | 105,617 | ||||||||||||||
Other | 30 | — | 30 | ||||||||||||||
December 31, 2021 | $ | 392,521 | $ | (70,004) | $ | 322,517 |
As of December 31, | As of December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||||||||||||||||||||||||||||
Amortized intangibles: | Amortized intangibles: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer relationships | $ | 169,334 | $ | 69,388 | $ | 99,946 | $ | 148,635 | $ | 52,514 | $ | 96,121 | Customer relationships | $ | 292,113 | $ | 113,849 | $ | 178,264 | $ | 197,641 | $ | 89,137 | $ | 108,504 | ||||||||||||||||||||||||||||||||||
Covenants not-to-compete | 16,959 | 10,617 | 6,342 | 14,682 | 7,572 | 7,110 | Covenants not-to-compete | 27,717 | 16,471 | 11,246 | 20,309 | 13,436 | 6,873 | ||||||||||||||||||||||||||||||||||||||||||||||
Trademarks and tradenames | 69,718 | 22,609 | 47,109 | 64,432 | 18,256 | 46,176 | Trademarks and tradenames | 103,007 | 32,623 | 70,384 | 79,657 | 27,245 | 52,412 | ||||||||||||||||||||||||||||||||||||||||||||||
Backlog | 14,080 | 13,915 | 165 | 14,060 | 13,677 | 383 | Backlog | 23,724 | 19,197 | 4,527 | 18,847 | 15,243 | 3,604 | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 446,561 | $ | 182,140 | $ | 264,421 | $ | 316,454 | $ | 145,061 | $ | 171,393 | ||||||||||||||||||||||||||||||||||||||||||||||||
$ | 270,091 | $ | 116,529 | $ | 153,562 | $ | 241,809 | $ | 92,019 | $ | 149,790 | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | $ | 25,741 | ||
2021 | 24,399 | |||
2022 | 23,479 | |||
2023 | 20,568 | |||
2024 | 17,053 | |||
Thereafter | 42,322 |
2022 | $41,780 | ||||
2023 | 37,458 | ||||
2024 | 33,762 | ||||
2025 | 27,440 | ||||
2026 | 23,489 | ||||
Thereafter | 100,492 |
As of December 31, | |||||||||||
2021 | 2020 | ||||||||||
Senior Notes due 2028, net of unamortized debt issuance costs of $3,633 and $4,230, respectively | $ | 296,367 | $ | 295,770 | |||||||
Term loan, net of unamortized debt issuance costs of $6,735 and $1,343, respectively | 493,265 | 198,657 | |||||||||
Vehicle and equipment notes, maturing through December 2026; payable in various monthly installments, including interest rates ranging from 1.9% to 4.8% | 69,228 | 67,493 | |||||||||
Various notes payable, maturing through March 2025; payable in various monthly installments, including interest rates ranging from 1.0% to 5.0% | 4,172 | 3,392 | |||||||||
863,032 | 565,312 | ||||||||||
Less: current maturities | (30,839) | (23,355) | |||||||||
Long-term debt, less current maturities | $ | 832,193 | $ | 541,957 |
As of December 31, | ||||||||
2019 | 2018 | |||||||
Senior Notes due 2028, net of unamortized debt issuance costs of $ 4,823 and $0 , respectively | $ | 295,177 | $ | — | ||||
Term loan, net of unamortized debt issuance costs of $ 1,662 $ 4,834 , respectively | 198,338 | 390,916 | ||||||
Vehicle and equipment notes, maturing through December 2024 ; payable in various monthly installments, including interest rates ranging from2.5 % to4.8 % | 72,714 | 60,391 | ||||||
Various notes payable, maturing through March 2025 ; payable in various monthly installments, including interest rates ranging from4 % to6 % | 2,966 | 3,517 | ||||||
569,195 | 454,824 | |||||||
Less: current maturities | (24,164 | ) | (22,642 | ) | ||||
Long-term debt, less current maturities | $ | 545,031 | $ | 432,182 | ||||
2020 | $ | 24,164 | ||
2021 | 19,223 | |||
2022 | 15,350 | |||
2023 | 9,997 | |||
2024 | 4,155 | |||
Thereafter | 502,791 |
2022 | $30,839 | ||||
2023 | 24,850 | ||||
2024 | 19,098 | ||||
2025 | 15,600 | ||||
2026 | 8,013 | ||||
Thereafter | 775,000 |
(in thousands) | Classification | As of December 31, | ||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
Assets | ||||||||||||||||||||
Non-Current | ||||||||||||||||||||
Operating | Operating lease right-of-use assets | $ | 69,871 | $ | 53,766 | |||||||||||||||
Finance | Property and equipment, net | 5,266 | 4,946 | |||||||||||||||||
Total lease assets | $ | 75,137 | $ | 58,712 | ||||||||||||||||
Liabilities | ||||||||||||||||||||
Current | ||||||||||||||||||||
Operating | Current maturities of operating lease obligations | $ | 23,224 | $ | 18,758 | |||||||||||||||
Financing | Current maturities of finance lease obligations | 1,747 | 2,073 | |||||||||||||||||
Non-Current | ||||||||||||||||||||
Operating | Operating lease obligations | 46,075 | 34,413 | |||||||||||||||||
Financing | Finance lease obligations | 3,297 | 2,430 | |||||||||||||||||
Total lease liabilities | $ | 74,343 | $ | 57,674 |
Weighted-average remaining lease term | ||||||||
Operating leases | 4.3 years | 4.1 years | ||||||
Finance leases | 3.3 years | 2.6 years | ||||||
Weighted-average discount rate | ||||||||
Operating leases | 3.38 | % | 3.67 | % | ||||
Finance leases | 4.96 | % | 5.08 | % |
(in thousands) | Classification | As of December 31, 2019 | ||||
Operating lease cost (1) | Administrative | $ | 21,024 | |||
Finance lease cost | ||||||
Amortization of leased assets (2) | Cost of sales | 4,942 | ||||
Interest on finance lease obligations | Interest expense, net | 341 | ||||
Total lease costs | $ | 26,307 | ||||
Years ended December 31, | ||||||||||||||||||||||||||
(in thousands) | Classification | 2021 | 2020 | 2019 | ||||||||||||||||||||||
Operating lease cost (1) | Administrative | $ | 27,357 | $ | 23,454 | $ | 21,024 | |||||||||||||||||||
Finance lease cost | ||||||||||||||||||||||||||
Amortization of leased assets (2) | Cost of sales | 3,083 | 3,645 | 4,942 | ||||||||||||||||||||||
Interest on finance lease obligations | Interest expense, net | 218 | 268 | 341 | ||||||||||||||||||||||
Total lease costs | $ | 30,658 | $ | 27,367 | $ | 26,307 |
(2)Includes variable lease costs |
Years ended December 31, | |||||||||||||||||
(in thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash flows for operating leases | $ | 22,930 | $ | 19,668 | $ | 17,521 | |||||||||||
Operating cash flows for finance leases | 218 | 268 | 341 | ||||||||||||||
Financing cash flows for finance leases | 2,125 | 2,632 | 4,157 |
Finance Leases | Operating Leases | |||||||||||||||
Related | Other | Total | ||||||||||||||
2020 | $ | 3,081 | $ | 1,091 | $ | 15,956 | $ | 17,047 | ||||||||
2021 | 1,973 | 946 | 11,301 | 12,247 | ||||||||||||
2022 | 1,037 | 869 | 6,569 | 7,438 | ||||||||||||
2023 | 673 | 415 | 3,792 | 4,207 | ||||||||||||
2024 | 259 | 425 | 2,218 | 2,643 | ||||||||||||
Thereafter | — | 398 | 6,427 | 6,825 | ||||||||||||
Total minimum lease payments | 7,023 | $ | 4,144 | $ | 46,263 | 50,407 | ||||||||||
Less: Amounts representing executory costs | (167 | ) | — | |||||||||||||
Less: Amounts representing interest | (512 | ) | (5,163 | ) | ||||||||||||
Present value of future minimum lease payments | 6,344 | 45,244 | ||||||||||||||
Less: Current obligation under leases | (2,747 | ) | (15,459 | ) | ||||||||||||
Long-term lease obligations | $ | 3,597 | $ | 29,785 | ||||||||||||
Finance Leases | Operating Leases | ||||||||||||||||||||||
(in thousands) | Related Party | Other | Total Operating | ||||||||||||||||||||
2022 | $ | 2,001 | $ | 1,347 | $ | 23,832 | $ | 25,179 | |||||||||||||||
2023 | 1,452 | 906 | 18,139 | 19,045 | |||||||||||||||||||
2024 | 1,043 | 645 | 11,006 | 11,651 | |||||||||||||||||||
2025 | 674 | 519 | 6,502 | 7,021 | |||||||||||||||||||
2026 | 343 | — | 4,701 | 4,701 | |||||||||||||||||||
Thereafter | — | — | 7,283 | 7,283 | |||||||||||||||||||
Total minimum lease payments | 5,513 | $ | 3,417 | $ | 71,463 | 74,880 | |||||||||||||||||
Less: Amounts representing executory costs | (29) | — | |||||||||||||||||||||
Less: Amounts representing interest | (440) | (5,581) | |||||||||||||||||||||
Present value of future minimum lease payments | 5,044 | 69,299 | |||||||||||||||||||||
Less: Current obligation under leases | (1,747) | (23,224) | |||||||||||||||||||||
Long-term lease obligations | $ | 3,297 | $ | 46,075 |
Capital Leases | Operating Leases | |||||||||||||||
Related | Other | Total | ||||||||||||||
2019 | $ | 5,207 | $ | 1,159 | $ | 14,418 | $ | 15,577 | ||||||||
2020 | 2,253 | 1,184 | 11,293 | 12,477 | ||||||||||||
2021 | 1,339 | 1,058 | 7,014 | 8,072 | ||||||||||||
2022 | 452 | 972 | 4,335 | 5,307 | ||||||||||||
2023 | 93 | 51 | 2,613 | 2,664 | ||||||||||||
Thereafter | — | — | 4,695 | 4,695 | ||||||||||||
9,344 | $ | 4,424 | $ | 44,368 | $ | 48,792 | ||||||||||
Less: Amounts representing executory costs | (255 | ) | ||||||||||||||
Less: Amounts representing interest | (459 | ) | ||||||||||||||
Total obligation under capital leases | 8,630 | |||||||||||||||
Less: Current portion of capital leases | (4,806 | ) | ||||||||||||||
Long-term capital lease obligation | $ | 3,824 | ||||||||||||||
As of December 31, 2019 | As of December 31, 2018 | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 99,242 | $ | 99,242 | $ | — | $ | — | $ | 69,807 | $ | 69,807 | $ | — | $ | — | ||||||||||||||||
Derivative financial instruments | — | — | — | — | 1,765 | — | 1,765 | — | ||||||||||||||||||||||||
Total financial assets | $ | 99,242 | $ | 99,242 | $ | — | $ | — | $ | 71,572 | $ | 69,807 | $ | 1,765 | $ | — | ||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Derivative financial instruments | $ | 9,446 | $ | — | $ | 9,446 | $ | — | $ | 2,275 | $ | — | $ | 2,275 | $ | — | ||||||||||||||||
Contingent consideration | 3,854 | — | — | 3,854 | 5,098 | — | — | 5,098 | ||||||||||||||||||||||||
Total financial liabilities | $ | 13,300 | $ | — | $ | 9,446 | $ | 3,854 | $ | 7,373 | $ | — | $ | 2,275 | $ | 5,098 | ||||||||||||||||
As of December 31, 2021 | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents | $ | 258,055 | $ | 258,055 | $ | — | $ | — | $ | 170,398 | $ | 170,398 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Derivative financial instruments | 14,830 | — | 14,830 | — | 5,130 | — | 5,130 | — | |||||||||||||||||||||||||||||||||||||||
Total financial assets | $ | 272,885 | $ | 258,055 | $ | 14,830 | $ | — | $ | 175,528 | $ | 170,398 | $ | 5,130 | $ | — | |||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration | $ | 11,170 | $ | — | $ | — | $ | 11,170 | $ | 4,004 | $ | — | $ | — | $ | 4,004 | |||||||||||||||||||||||||||||||
Derivative financial instruments | 1,937 | — | 1,937 | — | 324 | — | 324 | — | |||||||||||||||||||||||||||||||||||||||
Total financial liabilities | $ | 13,107 | $ | — | $ | 1,937 | $ | 11,170 | $ | 4,328 | $ | — | $ | 324 | $ | 4,004 |
Contingent consideration liability—January 1, | $ | ||||||
Preliminary purchase price | 8,400 | ||||||
Fair value adjustments | (413) | ||||||
Accretion in | 1,154 | ||||||
Amounts cancelled | (1,035) | ||||||
Amounts paid to sellers | (940) | ||||||
Contingent consideration liability—December 31, | $ | ||||||
As of December 31, 2019 | As of December 31, 2018 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Investments | $ | 37,961 | $ | 37,958 | $ | 10,060 | $ | 10,053 | ||||||||
Senior Notes (1) | 300,000 | 321,114 | — | — |
As of December 31, 2021 | As of December 31, 2020 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Senior Notes (1) | $ | 300,000 | $ | 311,028 | $ | 300,000 | $ | 320,013 |
Declaration Date | Record Date | Payment Date | Dividend Per Share | Amount Declared | Amount Paid | |||||||||||||||||||||||||||
2/23/2021 | 3/15/2021 | 3/31/2021 | $ | 0.30 | $ | 8,907 | $ | 8,786 | ||||||||||||||||||||||||
5/5/2021 | 6/15/2021 | 6/30/2021 | 0.30 | 8,910 | 8,821 | |||||||||||||||||||||||||||
8/5/2021 | 9/15/2021 | 9/30/2021 | 0.30 | 8,912 | 8,821 | |||||||||||||||||||||||||||
11/4/2021 | 12/15/2021 | 12/31/2021 | 0.30 | 8,911 | 8,866 |
As of December 31, | |||||||||||
2021 | 2020 | ||||||||||
Included in other current liabilities | $ | 8,048 | $ | 7,703 | |||||||
Included in other long-term liabilities | 13,397 | 11,986 | |||||||||
$ | 21,445 | $ | 19,689 |
As of December 31, | ||||||||
2019 | 2018 | |||||||
Included in other current liabilities | $ | 6,777 | $ | 5,795 | ||||
Included in other long-term liabilities | 10,874 | 9,447 | ||||||
$ | 17,651 | $ | 15,242 | |||||
As of December 31, | ||||||||
2019 | 2018 | |||||||
Included in other non-current assets | $ | 2,098 | $ | 1,888 |
As of December 31, | |||||||||||
2021 | 2020 | ||||||||||
Included in other non-current assets | $ | 2,137 | $ | 1,854 |
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Pension plans | $ | 2,783 | $ | 1,128 | $ | 809 | |||||||||||
Health & welfare plans | 2,893 | 952 | 674 | ||||||||||||||
Total contributions | $ | 5,676 | $ | 2,080 | $ | 1,483 |
Common Stock Awards | Performance-Based Stock Awards | Performance-Based Restricted Stock Units | |||||||||||||||||||||||||||||||||
Awards | Weighted Average Grant Date Fair Value Per Share | Awards | Weighted Average Grant Date Fair Value Per Share | Units | Weighted Average Grant Date Fair Value Per Share | ||||||||||||||||||||||||||||||
Nonvested awards/units at December 31, 2020 | 231,280 | $ | 48.05 | 166,961 | $ | 59.97 | 13,273 | $ | 36.51 | ||||||||||||||||||||||||||
Granted | 55,815 | 124.88 | 42,449 | 123.32 | 8,470 | 126.89 | |||||||||||||||||||||||||||||
Vested | (84,641) | 48.87 | (64,525) | 52.79 | (12,952) | 36.51 | |||||||||||||||||||||||||||||
Forfeited/Cancelled | (3,101) | 62.36 | (1,484) | 123.26 | (539) | 73.06 | |||||||||||||||||||||||||||||
Nonvested awards/units at December 31, 2021 | 199,353 | $ | 68.99 | 143,401 | $ | 81.30 | 8,252 | $ | 126.89 |
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Common Stock Awards | $ | 5,285 | $ | 4,116 | $ | 4,242 | |||||||||||
Non-Employee Common Stock Awards | 465 | 333 | 359 | ||||||||||||||
Performance-Based Stock Awards | 4,528 | 3,869 | 3,034 | ||||||||||||||
Liability Performance-Based Stock Awards | 2,612 | 1,969 | 432 | ||||||||||||||
Performance-Based Restricted Stock Units | 862 | 539 | 660 | ||||||||||||||
$ | 13,752 | $ | 10,826 | $ | 8,727 |
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cost of sales | $ | 448 | $ | 284 | $ | 374 | |||||||||||
Selling | 204 | 202 | 194 | ||||||||||||||
Administrative | 13,100 | 10,340 | 8,159 | ||||||||||||||
$ | 13,752 | $ | 10,826 | $ | 8,727 |
As of December 31, 2021 | |||||||||||
Unrecognized Compensation Expense on Unvested Awards | Weighted Average Remaining Vesting Period | ||||||||||
Common Stock Awards | $ | 7,518 | 1.7 | ||||||||
Performance-Based Stock Awards | 4,832 | 1.6 | |||||||||
Performance-Based Restricted Stock Units | 301 | 0.3 | |||||||||
Total unrecognized compensation expense related to unvested awards | $ | 12,651 |
Common Stock Awards | Performance-Based Stock Awards | Performance-Based Restricted Stock Units | ||||||||||||||||||||||
Awards | Weighted Average Grant Date Fair Value Per | Awards | Weighted Average Grant Date Fair Value Per | Units | Weighted Average Grant Date Fair Value Per | |||||||||||||||||||
Nonvested awards/units at December 31, 2018 | 173,189 | $ | 47.40 | 115,698 | $ | 52.25 | 13,248 | $ | 56.05 | |||||||||||||||
Granted | 88,529 | 50.94 | 82,692 | 45.65 | 13,933 | 51.62 | ||||||||||||||||||
Vested | (106,660 | ) | 42.30 | (31,404 | ) | 41.00 | (12,808 | ) | 56.05 | |||||||||||||||
Forfeited/Cancelled | (2,176 | ) | 52.13 | (6,697 | ) | 65.60 | (1,187 | ) | 53.26 | |||||||||||||||
Nonvested awards/units at December 31, 2019 | 152,882 | $ | 52.93 | 160,289 | $ | 50.49 | 13,186 | $ | 51.62 | |||||||||||||||
2019 | 2018 | 2017 | ||||||||||
Cost of sales | $ | 374 | $ | 846 | $ | 965 | ||||||
Selling | 194 | 451 | 571 | |||||||||
Administrative | 8,159 | 6,549 | 5,055 | |||||||||
$ | 8,727 | $ | 7,846 | $ | 6,591 | |||||||
Years ended December 31, | Years ended December 31, | ||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||
Current: | Current: | ||||||||||||||||||||||||||||
Federal | $ | 14,850 | $ | 13,486 | $ | 17,557 | Federal | $ | 27,011 | $ | 33,495 | $ | 14,850 | ||||||||||||||||
State | 4,127 | 3,641 | 3,302 | State | 10,139 | 8,918 | 4,127 | ||||||||||||||||||||||
37,150 | 42,413 | 18,977 | |||||||||||||||||||||||||||
18,977 | 17,127 | 20,859 | |||||||||||||||||||||||||||
Deferred: | Deferred: | ||||||||||||||||||||||||||||
Federal | 4,585 | 221 | (5,895 | ) | Federal | (437) | (7,177) | 4,585 | |||||||||||||||||||||
State | 884 | 90 | (284 | ) | State | (1) | (1,298) | 884 | |||||||||||||||||||||
(438) | (8,475) | 5,469 | |||||||||||||||||||||||||||
5,469 | 311 | (6,179 | ) | ||||||||||||||||||||||||||
Total tax expense | $ | 24,446 | $ | 17,438 | $ | 14,680 | Total tax expense | $ | 36,712 | $ | 33,938 | $ | 24,446 | ||||||||||||||||
Years ended December 31, | Years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax at federal statutory rate | $ | 19,447 | 21.0 | % | $ | 15,159 | 21.0 | % | $ | 19,537 | 35.0 | % | Income tax at federal statutory rate | $ | 32,650 | 21.0 | % | $ | 27,547 | 21.0 | % | $ | 19,447 | 21.0 | % | ||||||||||||||||||||||||||||||||||
Stock compensation | (255 | ) | (0.3 | % ) | (436 | ) | (0.6 | %) | (581 | ) | (1.0 | %) | Stock compensation | (1,567) | (1.0) | % | 331 | 0.3 | % | (255) | (0.3) | % | |||||||||||||||||||||||||||||||||||||
Qualified Production Activity Deduction | — | 0.0 | % | — | 0.0 | % | (1,715 | ) | (3.1 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other permanent items | 737 | 0.8 | % | (667 | ) | (0.8 | %) | 197 | 0.4 | % | Other permanent items | 1,274 | 0.8 | % | 424 | 0.3 | % | 737 | 0.8 | % | |||||||||||||||||||||||||||||||||||||||
Change in valuation allowance | 276 | 0.3 | % | 312 | 0.4 | % | 285 | 0.5 | % | Change in valuation allowance | (922) | (0.6) | % | (207) | (0.2) | % | 276 | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||
Change in uncertain tax positions | 67 | 0.1 | % | 969 | 1.3 | % | (1,807 | ) | (3.2 | %) | Change in uncertain tax positions | (2,867) | (1.8) | % | 65 | 0.1 | % | 67 | 0.1 | % | |||||||||||||||||||||||||||||||||||||||
State income taxes, net of federal benefit | 4,174 | 4.5 | % | 2,911 | 4.0 | % | 2,150 | 3.8 | % | State income taxes, net of federal benefit | 8,144 | 5.2 | % | 5,778 | 4.4 | % | 4,174 | 4.5 | % | ||||||||||||||||||||||||||||||||||||||||
Rate impact of the Tax Act | — | 0.0 | % | (810 | ) | (1.1 | %) | (3,386 | ) | (6.1 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total tax expense | $ | 24,446 | 26.4 | % | $ | 17,438 | 24.2 | % | $ | 14,680 | 26.3 | % | Total tax expense | $ | 36,712 | 23.6 | % | $ | 33,938 | 25.9 | % | $ | 24,446 | 26.4 | % | ||||||||||||||||||||||||||||||||||
As of December 31, | As of December 31, | ||||||||||||||||||
2019 | 2018 | 2021 | 2020 | ||||||||||||||||
Deferred Tax Assets | Deferred Tax Assets | ||||||||||||||||||
Long-term | Long-term | ||||||||||||||||||
Accrued reserves and allowances | $ | 5,140 | $ | 4,245 | |||||||||||||||
Accrued liabilities and allowances | Accrued liabilities and allowances | $ | 10,200 | $ | 9,106 | ||||||||||||||
Allowance for doubtful accounts | 514 | 500 | Allowance for doubtful accounts | 979 | 987 | ||||||||||||||
Inventories | 437 | 335 | Inventories | 900 | 402 | ||||||||||||||
Property and equipment | 303 | — | Property and equipment | 333 | 280 | ||||||||||||||
Intangibles | 5,615 | 4,937 | Intangibles | 7,042 | 6,582 | ||||||||||||||
Net operating loss carryforwards | 1,240 | 1,446 | Net operating loss carryforwards | 1,049 | 1,206 | ||||||||||||||
Other | 5 | 4 | Other | 14 | 16 | ||||||||||||||
Long-term deferred tax assets | 13,254 | 11,467 | Long-term deferred tax assets | 20,517 | 18,579 | ||||||||||||||
Less: Valuation allowance | (1,512 | ) | (1,255 | ) | Less: Valuation allowance | (216) | (1,263) | ||||||||||||
Net deferred tax assets | 11,742 | 10,212 | Net deferred tax assets | 20,301 | 17,316 | ||||||||||||||
Deferred Tax Liabilities | Deferred Tax Liabilities | ||||||||||||||||||
Long-term | Long-term | ||||||||||||||||||
Accrued reserves and allowances | (252 | ) | (365 | ) | |||||||||||||||
Accrued liabilities and allowances | Accrued liabilities and allowances | (669) | (151) | ||||||||||||||||
Property and equipment | (4,176 | ) | (2,091 | ) | Property and equipment | (7,629) | (4,587) | ||||||||||||
Intangibles | (4,307 | ) | (3,850 | ) | Intangibles | (6,783) | (4,810) | ||||||||||||
Investment in partnership | (11,857 | ) | (10,266 | ) | Investment in partnership | (8,271) | (6,660) | ||||||||||||
Other | (325 | ) | (242 | ) | Other | (793) | (650) | ||||||||||||
Long-term deferred tax liabilities | Long-term deferred tax liabilities | (24,145) | (16,858) | ||||||||||||||||
Net deferred tax (liabilities) assets | Net deferred tax (liabilities) assets | $ | (3,844) | $ | 458 | ||||||||||||||
Long-term deferred tax liabilities | (20,917 | ) | (16,814 | ) | |||||||||||||||
Net deferred tax liabilities | $ | (9,175 | ) | $ | (6,602 | ) | |||||||||||||
The above amounts are included in our Consolidated Balance Sheets as follows: | The above amounts are included in our Consolidated Balance Sheets as follows: | ||||||||||||||||||
Other non-current assets | Other non-current assets | 975 | 493 | ||||||||||||||||
Long-term deferred income tax liabilities | Long-term deferred income tax liabilities | (4,819) | (35) | ||||||||||||||||
Net deferred tax (liabilities) assets | Net deferred tax (liabilities) assets | $ | (3,844) | $ | 458 |
Unrecognized tax benefit, January 1, 2017 | $ | 4,097 | ||
Increase as a result of tax positions taken during the period | 4,353 | |||
Decrease as a result of tax positions taken during the period | (2,311 | ) | ||
Decrease as a result of expiring statutes | (1,689 | ) | ||
Unrecognized tax benefit, December 31, 2017 | $ | 4,450 | ||
Increase as a result of tax positions taken during the period | 3,846 | |||
Decrease as a result of tax positions taken during the period | (2,850 | ) | ||
Decrease as a result of expiring statutes | (97 | ) | ||
Unrecognized tax benefit, December 31, 2018 | $ | 5,349 | ||
Increase as a result of tax positions taken during the perio d | 2,866 | |||
Decrease as a result of tax positions taken during the period | (2,482 | ) | ||
Decrease as a result of expiring statutes | (16 | ) | ||
Unrecognized tax benefit, December 31, 2019 | $ | 5,717 | ||
Unrecognized tax benefit, January 1, 2019 | $ | 5,349 | |||
Increase as a result of tax positions taken during the period | 2,866 | ||||
Decrease as a result of tax positions taken during the period | (2,482) | ||||
Decrease as a result of expiring statutes | (16) | ||||
Unrecognized tax benefit, December 31, 2019 | $ | 5,717 | |||
Increase as a result of tax positions taken during the period | 3,822 | ||||
Decrease as a result of tax positions taken during the period | (2,873) | ||||
Increase as a result of expiring statutes | 10 | ||||
Unrecognized tax benefit, December 31, 2020 | $ | 6,676 | |||
Increase as a result of tax positions taken during the period | 4,482 | ||||
Decrease as a result of tax positions taken during the period | (3,999) | ||||
Decrease as a result of expiring statutes | (2,857) | ||||
Unrecognized tax benefit, December 31, 2021 | $ | 4,302 |
Years ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Sales | $ | 13,488 | $ | 12,636 | $ | 10,250 | ||||||
Purchases | 1,810 | 1,587 | 1,294 | |||||||||
Rent | 1,040 | 1,099 | 1,154 |
Years ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Sales | $ | 1,452 | $ | 3,987 | $ | 13,488 | |||||||||||
Purchases | 1,544 | 1,841 | 1,810 | ||||||||||||||
Rent | 1,322 | 1,125 | 1,040 |
As of December 31, | ||||||||
2019 | 2018 | |||||||
Included in other current liabilities | $ | 3,538 | $ | 1,848 | ||||
Included in other long-term liabilities | 18,184 | 6,608 | ||||||
$ | 21,722 | $ | 8,456 | |||||
As of December 31, | |||||||||||
2021 | 2020 | ||||||||||
Included in other current liabilities | $ | 5,889 | $ | 5,102 | |||||||
Included in other long-term liabilities | 16,050 | 16,440 | |||||||||
$ | 21,939 | $ | 21,542 |
As of December 31, | ||||||||
2019 | 2018 | |||||||
Insurance receivables and indemnification assets for claims under fully insured policies | $ | 7,491 | $ | 2,484 | ||||
Insurance receivables for claims that exceeded the stop loss limit | 2,321 | 53 | ||||||
Total insurance receivables and indemnificatoin assets included in other non-current | $ | 9,812 | $ | 2,537 | ||||
As of December 31, | |||||||||||
2021 | 2020 | ||||||||||
Insurance receivables and indemnification assets for claims under fully insured policies | $ | 3,578 | $ | 4,400 | |||||||
Insurance receivables for claims that exceeded the stop loss limit | 278 | 328 | |||||||||
Total insurance receivables and indemnification assets included in other non-current assets | $ | 3,856 | $ | 4,728 |
2021 Acquisitions | Date | Acquisition Type | Cash Paid | Seller Obligations | Total Purchase Price | Revenue | Net Income (Loss) | |||||||||||||||||||||||||||||||||||||
IWI | 03/01/2021 | Share | $ | 42,098 | $ | 5,959 | $ | 48,057 | $ | 36,259 | $ | 3,373 | ||||||||||||||||||||||||||||||||
Alert | 4/13/2021 | Asset | 5,850 | 2,980 | 8,830 | 13,494 | (151) | |||||||||||||||||||||||||||||||||||||
Alpine | 4/19/2021 | Asset | 7,945 | 2,208 | 10,153 | 8,267 | 189 | |||||||||||||||||||||||||||||||||||||
GCP | 6/7/2021 | Asset | 9,700 | 1,427 | 11,127 | 7,125 | 83 | |||||||||||||||||||||||||||||||||||||
Five Star | 9/13/2021 | Share | 26,308 | 5,466 | 31,774 | 6,861 | (119) | |||||||||||||||||||||||||||||||||||||
DGM | 11/1/2021 | Asset | 11,634 | 2,069 | 13,703 | 2,198 | (462) | |||||||||||||||||||||||||||||||||||||
CFI | 11/22/2021 | Share | 13,450 | 1,145 | 14,595 | 1,289 | 53 | |||||||||||||||||||||||||||||||||||||
AMD | 12/13/2021 | Asset | 119,490 | 6,631 | 126,121 | 3,707 | (225) | |||||||||||||||||||||||||||||||||||||
Other | Various | Asset | 6,540 | 1,284 | 7,824 | 3,231 | (102) | |||||||||||||||||||||||||||||||||||||
Total | $ | 243,015 | $ | 29,169 | $ | 272,184 | $ | 82,431 | $ | 2,639 |
2020 Acquisitions | Date | Acquisition Type | Cash Paid | Seller Obligations | Total Purchase Price | Revenue | Net Income (Loss) | |||||||||||||||||||||||||||||||||||||
Royals | 2/29/2020 | Asset | $ | 7,590 | $ | 2,500 | $ | 10,090 | $ | 11,095 | $ | 1,332 | ||||||||||||||||||||||||||||||||
Energy One | 8/10/2020 | Asset | 13,200 | 1,591 | 14,791 | 7,454 | (558) | |||||||||||||||||||||||||||||||||||||
Storm Master | 8/31/2020 | Asset | 13,000 | 1,336 | 14,336 | 8,131 | 619 | |||||||||||||||||||||||||||||||||||||
ICON | 10/13/2020 | Asset | 16,900 | 3,598 | 20,498 | 4,798 | 449 | |||||||||||||||||||||||||||||||||||||
Norkote | 10/26/2020 | Asset | 8,725 | 2,426 | 11,151 | 2,702 | 417 | |||||||||||||||||||||||||||||||||||||
WeatherSeal | 11/16/2020 | Asset | 9,500 | 922 | 10,422 | 766 | (23) | |||||||||||||||||||||||||||||||||||||
Other | Various | Asset | 7,531 | 1,713 | 9,244 | 5,548 | (344) | |||||||||||||||||||||||||||||||||||||
Total | $ | 76,446 | $ | 14,086 | $ | 90,532 | $ | 40,494 | $ | 1,892 |
2019 Acquisitions | Date | Acquisition Type | Cash Paid | Seller Obligations | Total Purchase Price | Revenue | Net ( Loss ) | 2019 Acquisitions | Date | Acquisition Type | Cash Paid | Seller Obligations | Total Purchase Price | Revenue | Net Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st State Insulation | 3/18/2019 | Asset | $ | 5,125 | $ | 1,355 | $ | 6,480 | $ | 9,828 | $ | 476 | 1st State Insulation | 3/18/2019 | Asset | $ | 5,125 | $ | 1,355 | $ | 6,480 | $ | 9,828 | $ | 476 | |||||||||||||||||||||||||||||||||||||||||||||||
Expert Insulation | 6/24/2019 | Asset | 16,165 | 1,993 | 18,158 | 6,484 | 155 | Expert Insulation | 6/24/2019 | Asset | 16,165 | 1,993 | 18,158 | 6,484 | 155 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premier | 11/18/2019 | Share | 25,000 | 2,765 | 27,765 | 2,161 | (62 | ) | Premier | 11/18/2019 | Share | 25,000 | 2,765 | 27,765 | 2,161 | (62) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Various | Asset | 5,750 | 1,430 | 7,180 | 3,339 | 23 | Other | Various | Asset | 5,750 | 1,430 | 7,180 | 3,339 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 52,040 | $ | 7,543 | $ | 59,583 | $ | 21,812 | $ | 592 | Total | $ | 52,040 | $ | 7,543 | $ | 59,583 | $ | 21,812 | $ | 592 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Date | Acquisition Type | Cash Paid | Seller Obligations | Total Purchase Price | Revenue | Net (Loss) | |||||||||||||||||
CDG | 3/19/2018 | Asset | $ | 9,440 | $ | 1,973 | $ | 11,413 | $ | 11,466 | $ | 531 | ||||||||||||
AFT | 10/31/2018 | Asset | 19,707 | 1,510 | 21,217 | 3,530 | (13 | ) | ||||||||||||||||
Other | Various | Shares/Asset | 28,593 | 4,057 | 32,650 | 24,329 | 639 | |||||||||||||||||
Total | $ | 57,740 | $ | 7,540 | $ | 65,280 | $ | 39,325 | $ | 1,157 | ||||||||||||||
Name | Date | Acquisition Type | Cash Paid | Seller Obligations | Fair Common Stock | Total Purchase Price | Revenue | Net Income | |||||||||||||||||||||||
Alpha (1) | 1/5/2017 | Share | $ | 103,810 | $ | 2,002 | $ | 10,859 | $ | 116,671 | $ | 116,070 | $ | (1,148 | ) | ||||||||||||||||
Columbia | 6/26/2017 | Asset | 8,768 | 225 | — | 8,993 | 6,046 | 86 | |||||||||||||||||||||||
Astro | 9/18/2017 | Asset | 9,144 | 482 | — | 9,626 | 1,829 | 11 | |||||||||||||||||||||||
Other | Various | Asset | 15,645 | 2,419 | — | 18,064 | 20,457 | 573 | |||||||||||||||||||||||
Total | $ | 137,367 | $ | 5,128 | $ | 10,859 | $ | 153,354 | $ | 144,402 | $ | (478 | ) | ||||||||||||||||||
2019 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1st State | Expert | Premier | Other | Total | IWI | Alert | Alpine | GCP | Five Star | DGM | CFI | AMD | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated fair values: | Estimated fair values: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash | $ | — | $ | — | $ | 334 | $ | — | $ | 334 | Cash | $ | 168 | $ | — | $ | — | $ | — | $ | 1,472 | $ | — | $ | 67 | $ | — | $ | — | $ | 1,707 | ||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable | — | 1,796 | 2,930 | 479 | 5,205 | Accounts receivable | 5,122 | 4,710 | — | 3,067 | 4,597 | 4,007 | 1,318 | 8,393 | 446 | 31,660 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | 291 | 723 | 1,242 | 410 | 2,666 | Inventories | 1,157 | 765 | 359 | — | 1,399 | 6 | 311 | 7,540 | 345 | 11,882 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other current assets | — | — | — | 3 | 3 | Other current assets | 3,014 | 738 | — | — | 330 | 1,016 | 26 | — | 74 | 5,198 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment | 989 | 235 | 876 | 887 | 2,987 | Property and equipment | 796 | 693 | 726 | 206 | 1,161 | 853 | 714 | 1,133 | 932 | 7,214 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangibles | 3,382 | 6,740 | 14,300 | 3,619 | 28,041 | Intangibles | 25,200 | 2,770 | 5,543 | 5,670 | 17,400 | 8,800 | 7,699 | 52,800 | 4,072 | 129,954 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 1,857 | 8,545 | 10,238 | 1,765 | 22,405 | Goodwill | 23,282 | 940 | 3,582 | 2,695 | 6,482 | 3,447 | 6,799 | 56,327 | 2,063 | 105,617 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other non-current assets | — | 161 | 329 | 41 | 531 | Other non-current assets | 264 | 132 | — | — | — | 213 | — | — | 18 | 627 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable and other current liabilities | (39 | ) | (42 | ) | (2,484 | ) | (24 | ) | (2,589 | ) | Accounts payable and other current liabilities | (8,416) | (1,184) | (57) | (493) | (1,040) | (4,625) | (242) | (23) | (123) | (16,203) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred income tax liabilities | Deferred income tax liabilities | — | — | — | — | — | — | (2,089) | — | — | (2,089) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other long-term liabilities | Other long-term liabilities | (2,530) | (734) | — | (18) | (27) | (14) | (8) | (49) | (3) | (3,383) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of assets acquired and purchase price | 6,480 | 18,158 | 27,765 | 7,180 | 59,583 | Fair value of assets acquired and purchase price | 48,057 | 8,830 | 10,153 | 11,127 | 31,774 | 13,703 | 14,595 | 126,121 | 7,824 | 272,184 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less seller obligations | 1,355 | 1,993 | 2,765 | 1,430 | 7,543 | Less seller obligations | 5,959 | 2,980 | 2,208 | 1,427 | 5,466 | 2,069 | 1,145 | 6,631 | 1,284 | 29,169 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid | $ | 5,125 | $ | 16,165 | $ | 25,000 | $ | 5,750 | $ | 52,040 | Cash paid | $ | 42,098 | $ | 5,850 | $ | 7,945 | $ | 9,700 | $ | 26,308 | $ | 11,634 | $ | 13,450 | $ | 119,490 | $ | 6,540 | $ | 243,015 | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Royals | Energy One | Storm Master | ICON | Norkote | WeatherSeal | Other | Total | ||||||||||||||||||||||||||||||||||||||||
Estimated fair values: | |||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable | $ | 2,848 | $ | 3,357 | $ | 2,362 | $ | 4,828 | $ | 1,926 | $ | 865 | $ | 1,419 | $ | 17,605 | |||||||||||||||||||||||||||||||
Inventories | 305 | 838 | 175 | 243 | 444 | 156 | 600 | 2,761 | |||||||||||||||||||||||||||||||||||||||
Other current assets | 430 | 12 | — | 675 | 178 | 14 | 145 | 1,454 | |||||||||||||||||||||||||||||||||||||||
Property and equipment | 598 | 2,319 | 798 | 380 | 584 | 520 | 663 | 5,862 | |||||||||||||||||||||||||||||||||||||||
Intangibles | 3,930 | 6,500 | 8,720 | 11,830 | 5,310 | 5,450 | 4,483 | 46,223 | |||||||||||||||||||||||||||||||||||||||
Goodwill | 3,015 | 3,253 | 3,631 | 2,870 | 2,841 | 3,472 | 2,223 | 21,305 | |||||||||||||||||||||||||||||||||||||||
Other non-current assets | 58 | — | — | 145 | — | — | 38 | 241 | |||||||||||||||||||||||||||||||||||||||
Accounts payable and other current liabilities | (1,059) | (1,469) | (1,336) | (445) | (86) | (50) | (196) | (4,641) | |||||||||||||||||||||||||||||||||||||||
Other long-term liabilities | (35) | (19) | (14) | (28) | (46) | (5) | (131) | (278) | |||||||||||||||||||||||||||||||||||||||
Fair value of assets acquired and purchase price | 10,090 | 14,791 | 14,336 | 20,498 | 11,151 | 10,422 | 9,244 | 90,532 | |||||||||||||||||||||||||||||||||||||||
Less seller obligations | 2,500 | 1,591 | 1,336 | 3,598 | 2,426 | 922 | 1,713 | 14,086 | |||||||||||||||||||||||||||||||||||||||
Cash paid | $ | 7,590 | $ | 13,200 | $ | 13,000 | $ | 16,900 | $ | 8,725 | $ | 9,500 | $ | 7,531 | $ | 76,446 |
2018 | ||||||||||||||||
CDG | AFT | Other | Total | |||||||||||||
Estimated fair values: | ||||||||||||||||
Accounts receivable | $ | 1,731 | $ | — | $ | 4,104 | $ | 5,835 | ||||||||
Inventories | 514 | 565 | 1,136 | 2,215 | ||||||||||||
Other current assets | 28 | — | 918 | 946 | ||||||||||||
Property and equipment | 933 | 2,882 | 2,169 | 5,984 | ||||||||||||
Intangibles | 3,711 | 13,470 | 18,904 | 36,085 | ||||||||||||
Goodwill | 4,898 | 4,415 | 7,766 | 17,079 | ||||||||||||
Other non-current assets | 36 | 13 | 82 | 131 | ||||||||||||
Accounts payable and other current liabilities | (438 | ) | (128 | ) | (2,429 | ) | (2,995 | ) | ||||||||
Fair value of assets acquired and purchase price | 11,413 | 21,217 | 32,650 | 65,280 | ||||||||||||
Less fair value of common stock issued | — | — | — | — | ||||||||||||
Less seller obligations | 1,973 | 1,510 | 4,057 | 7,540 | ||||||||||||
Cash paid | $ | 9,440 | $ | 19,707 | $ | 28,593 | $ | 57,740 | ||||||||
2017 | ||||||||||||||||||||
Alpha | Columbia | Astro | Other | Total | ||||||||||||||||
Estimated fair values: | ||||||||||||||||||||
Cash | $ | 247 | $ | — | $ | — | $ | — | $ | 247 | ||||||||||
Accounts receivable | 29,851 | 989 | 924 | 3,157 | 34,921 | |||||||||||||||
Inventories | 1,852 | 704 | 296 | 1,544 | 4,396 | |||||||||||||||
Other current assets | 4,500 | 8 | 36 | 96 | 4,640 | |||||||||||||||
Property and equipment | 1,528 | 659 | 640 | 1,820 | 4,647 | |||||||||||||||
Intangibles | 57,200 | 4,760 | 5,168 | 9,688 | 76,816 | |||||||||||||||
Goodwill | 38,511 | 2,209 | 2,932 | 4,190 | 47,842 | |||||||||||||||
Other non-current assets | 383 | 36 | — | 219 | 638 | |||||||||||||||
Accounts payable and other current liabilities | (17,401 | ) | (372 | ) | (370 | ) | (2,650 | ) | (20,793 | ) | ||||||||||
Fair value of assets acquired | 116,671 | 8,993 | 9,626 | 18,064 | 153,354 | |||||||||||||||
Less fair value of common stock issued | 10,859 | — | — | — | 10,859 | |||||||||||||||
Less seller obligations | 2,002 | 225 | 482 | 2,419 | 5,128 | |||||||||||||||
Cash paid | $ | 103,810 | $ | 8,768 | $ | 9,144 | $ | 15,645 | $ | 137,367 | ||||||||||
2019 | |||||||||||||||||||||||||||||
1st State | Expert | Premier | Other | Total | |||||||||||||||||||||||||
Estimated fair values: | |||||||||||||||||||||||||||||
Cash | $ | — | $ | — | $ | 334 | $ | — | $ | 334 | |||||||||||||||||||
Accounts receivable | — | 1,796 | 2,929 | 479 | 5,204 | ||||||||||||||||||||||||
Inventories | 291 | 723 | 1,242 | 410 | 2,666 | ||||||||||||||||||||||||
Other current assets | — | — | — | 3 | 3 | ||||||||||||||||||||||||
Property and equipment | 989 | 235 | 876 | 887 | 2,987 | ||||||||||||||||||||||||
Intangibles | 3,382 | 6,740 | 14,300 | 3,619 | 28,041 | ||||||||||||||||||||||||
Goodwill | 1,857 | 8,545 | 10,151 | 1,765 | 22,318 | ||||||||||||||||||||||||
Other non-current assets | — | 161 | 329 | 41 | 531 | ||||||||||||||||||||||||
Accounts payable and other current liabilities | (39) | (42) | (2,396) | (24) | (2,501) | ||||||||||||||||||||||||
Fair value of assets acquired and purchase price | 6,480 | 18,158 | 27,765 | 7,180 | 59,583 | ||||||||||||||||||||||||
Less seller obligations | 1,355 | 1,993 | 2,765 | 1,430 | 7,543 | ||||||||||||||||||||||||
Cash paid | $ | 5,125 | $ | 16,165 | $ | 25,000 | $ | 5,750 | $ | 52,040 |
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Acquired intangibles assets | Estimated Fair Value | Weighted Average Estimated Useful Life (yrs) | Estimated Fair Value | Weighted Average Estimated Useful Life (yrs) | Estimated Fair Value | Weighted Average Estimated Useful Life (yrs) | |||||||||||||||||||||||||||||
Customer relationships | $ | 94,473 | 12 | $ | 28,307 | 8 | $ | 20,659 | 8 | ||||||||||||||||||||||||||
Trademarks and trade names | 23,349 | 15 | 9,834 | 15 | 5,286 | 15 | |||||||||||||||||||||||||||||
Non-competition agreements | 7,254 | 5 | 3,315 | 5 | 2,096 | 5 | |||||||||||||||||||||||||||||
Backlog | 4,878 | 2.5 | 4,767 | 1.5 | — | — |
2019 | 2018 | 2017 | ||||||||||||||||||||||
Acquired intangibles assets | Estimated Fair Value | Weighted Average Estimated Useful Life (yrs) | Estimated Fair Value | Weighted Average Estimated Useful Life (yrs) | Estimated Fair Value | Weighted Average Estimated Useful Life (yrs) | ||||||||||||||||||
Customer relationships | $ | 20,659 | 8 | $ | 27,149 | 8 | $ | 39,922 | 8 | |||||||||||||||
Trademarks and trade names | 5,286 | 15 | 6,075 | 15 | 20,667 | 15 | ||||||||||||||||||
Non-competition agreements | 2,096 | 5 | 2,401 | 5 | 2,628 | 5 | ||||||||||||||||||
Backlog | — | — | 460 | 2 | 13,600 | 1.5 |
Unaudited Pro Forma for the years ended | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Net revenue | $ | 1,549,797 | $ | 1,436,713 | $ | 1,246,017 | ||||||
Net income | 70,389 | 61,148 | 48,016 | |||||||||
Basic net income per share | 2.37 | 1.97 | 1.52 | |||||||||
Diluted net income per share | 2.36 | 1.96 | 1.51 |
December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Net revenue | $ | 2,105,295 | $ | 1,922,327 | $ | 1,660,326 | |||||||||||
Net income | 129,825 | 107,791 | 76,474 | ||||||||||||||
Basic net income per share | 4.42 | 3.65 | 2.57 | ||||||||||||||
Diluted net income per share | 4.38 | 3.63 | 2.56 |
2019 | Three months ended | |||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Total Year | ||||||||||||||||
Net revenue | $ | 342,135 | $ | 371,814 | $ | 396,449 | $ | 401,231 | $ | 1,511,629 | ||||||||||
Gross profit | 89,438 | 107,257 | 118,087 | 120,038 | 434,820 | |||||||||||||||
Net income | 8,834 | 18,919 | 21,212 | 19,194 | 68,159 | |||||||||||||||
Basic net income per share | 0.30 | 0.64 | 0.71 | 0.64 | 2.29 | |||||||||||||||
Diluted net income per share | 0.30 | 0.63 | 0.71 | 0.64 | 2.28 | |||||||||||||||
2018 | Three months ended | |||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Total Year | ||||||||||||||||
Net revenue | $ | 301,728 | $ | 332,584 | $ | 348,999 | $ | 353,121 | $ | 1,336,432 | ||||||||||
Gross profit | 79,976 | 95,643 | 97,334 | 98,638 | 371,591 | |||||||||||||||
Net income | 6,394 | 16,315 | 15,563 | 16,476 | 54,748 | |||||||||||||||
Basic net income per share | 0.20 | 0.52 | 0.50 | 0.54 | 1.76 | |||||||||||||||
Diluted net income per share | 0.20 | 0.52 | 0.50 | 0.53 | 1.75 |
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Subsidiary | Acquisition Date | Percentage of Total Assets | Percent of Net Revenue | |||||||||
1st State Insulation | March 18, 2019 | 0.6 | % | 0.7 | % | |||||||
Expert Insulation | June 24, 2019 | 1.7 | % | 0.4 | % | |||||||
Therm-Con/Foamtech | August 19, 2019 | 0.2 | % | 0.2 | % | |||||||
Northeast Spray Insulation | September 23, 2019 | 0.2 | % | 0.0 | % | |||||||
Premier Building Supply | November 18, 2019 | 2.5 | % | 0.1 | % | |||||||
Gulf Coast Insulation | December 9, 2019 | 0.3 | % | 0.0 | % |
Subsidiary | Acquisition Date | Percentage of Total Assets | Percent of Net Revenue | |||||||||||||||||
Intermountain West | March 1, 2021 | 3.6% | 1.8% | |||||||||||||||||
Alert | April 13, 2021 | 0.7% | 0.7% | |||||||||||||||||
Alpine Construction | April 19, 2021 | 0.6% | 0.4% | |||||||||||||||||
Reliable | May 11, 2021 | 0.2% | 0.1% | |||||||||||||||||
GCP | June 7, 2021 | 0.7% | 0.4% | |||||||||||||||||
MT Insulation | August 23, 2021 | 0.2% | 0.1% | |||||||||||||||||
5 Star | September 13, 2021 | 2.0% | 0.3% | |||||||||||||||||
Mr. Insulation | October 4, 2021 | 0.2% | 0.0% | |||||||||||||||||
DGM | November 1, 2021 | 1.1% | 0.1% | |||||||||||||||||
CFI | November 22, 2021 | 1.0% | 0.1% | |||||||||||||||||
AMD | December 13, 2021 | 7.6% | 0.2% |
Item 9B. Other Information |
Subsidiary | Acquisition Date | Percentage of Total Assets | Percent of Net Revenue | |||||||||
1st State Insulation | March 18, 2019 | 0.6% | 0.7% | |||||||||
Expert Insulation | June 24, 2019 | 1.7% | 0.4% | |||||||||
Therm-Con/Foamtech | August 19, 2019 | 0.2% | 0.2% | |||||||||
Northeast Spray Insulation | September 23, 2019 | 0.2% | 0.0% | |||||||||
Premier Building Supply | November 18, 2019 | 2.5% | 0.1% | |||||||||
Gulf Coast Insulation | December 9, 2019 | 0.3% | 0.0% |
Subsidiary | Acquisition Date | Percentage of Total Assets | Percent of Net Revenue | |||||||||||||||||
Intermountain West | March 1, 2021 | 3.6% | 1.8% | |||||||||||||||||
Alert | April 13, 2021 | 0.7% | 0.7% | |||||||||||||||||
Alpine Construction | April 19, 2021 | 0.6% | 0.4% | |||||||||||||||||
Reliable | May 11, 2021 | 0.2% | 0.1% | |||||||||||||||||
GCP | June 7, 2021 | 0.7% | 0.4% | |||||||||||||||||
MT Insulation | August 23, 2021 | 0.2% | 0.1% | |||||||||||||||||
5 Star | September 13, 2021 | 2.0% | 0.3% | |||||||||||||||||
Mr. Insulation | October 4, 2021 | 0.2% | 0.0% | |||||||||||||||||
DGM | November 1, 2021 | 1.1% | 0.1% | |||||||||||||||||
CFI | November 22, 2021 | 1.0% | 0.1% | |||||||||||||||||
AMD | December 13, 2021 | 7.6% | 0.2% |
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 14. Principal Accounting Fees and Services |
Item 15. Exhibits, Financial Statement Schedules |
Exhibit | Description | ||||||||
2.1 | |||||||||
3.1 | |||||||||
3.2 | |||||||||
4.1 | |||||||||
4.2 | |||||||||
4.3 | |||||||||
10.1# | |||||||||
10.2# | |||||||||
Amended and Restated Employment Agreement, dated as of May 7, 2021. | |||||||||
10.3# | |||||||||
10.24 | ||||||||
10.25 | ||||||||
10.26 | ||||||||
10.27 | ||||||||
10.28 | Consent and Amendment No. 2 to Credit Agreement, dated December 14, 2021, by and among Installed Building Products, Inc., the financial institutions party thereto and Bank of America N.A., as administrative agent, incorporated by reference to Exhibit 10.7 to the Company’s Current Report on Form 8-K filed on December 14, 2021. | |||||||
10.29# | Retirement and General Release Agreement, dated as of July 31, 2018, by and among Installed Building Products, Inc., Installed Building Products, LLC, TCI Contracting, LLC and J. Michael Nixon, 10-Q filed on August 3, 2018. | |||||||
10.30 | ||||||||
10.31# | ||||||||
10.32# | ||||||||
10.33# | ||||||||
10.34# | ||||||||
Number | |||||||||||
10.35# | |||||||||||
10.36# | |||||||||||
10.37# | |||||||||||
21.1* | |||||||||||
23.1* | |||||||||||
31.1* | |||||||||||
31.2* | |||||||||||
32.1* | |||||||||||
32.2* | |||||||||||
101** | The following financial statements from the Company's Annual Report on Form 10-K for the period ended December 31, 2021, formatted in inline XBRL, include: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations and Comprehensive Income, (iii) Consolidated Statements of Stockholders' Equity, (iv) Consolidated Statements of Cash Flows and (v) the Notes to the Consolidated Financial Statements. | ||||||||||
104** | |||||||||||
Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
INSTALLED BUILDING PRODUCTS, INC. | |||||||||||
/s/ Jeffrey W. Edwards | |||||||||||
By: | Jeffrey W. Edwards | ||||||||||
President and Chief Executive Officer |
Signature | Title | Date | ||||||||||||
/s/ Jeffrey W. Edwards | President, Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer) | February | ||||||||||||
Jeffrey W. Edwards | ||||||||||||||
/s/ Michael T. Miller | Executive Vice President, Chief Financial Officer and Director (Principal Financial Officer) | February | ||||||||||||
Michael T. Miller | ||||||||||||||
/s/ Todd R. Fry | Chief Accounting Officer and Treasurer (Principal Accounting Officer) | February | ||||||||||||
Todd R. Fry | ||||||||||||||
/s/ Margot L. Carter | Director | February 24, 2022 | ||||||||||||
Margot L. Carter | ||||||||||||||
/s/ Lawrence A. Hilsheimer | Director | February 24, 2022 | ||||||||||||
Lawrence A. Hilsheimer | ||||||||||||||
/s/ Janet E. Jackson | Director | February 24, 2022 | ||||||||||||
Janet E. Jackson | ||||||||||||||
/s/ | Director | February | ||||||||||||
David R. Meuse | ||||||||||||||
/s/ Michael H. Thomas | Director | February 24, 2022 | ||||||||||||
Michael H. Thomas | ||||||||||||||
/s/ Vikas Verma | Director | February 24, 2022 | ||||||||||||
Vikas Verma |