Delaware | 37-1830464 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Securities Registered Pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.001 par value per share | FRTA | Nasdaq Stock Market LLC | ||||||||||||
Securities Registered Pursuant to Section 12(g) of the Act: None |
Non-accelerated filer | Emerging growth company | |||||||||||||||||||||||||
o | x | o | ☒ | ☐ |
Page | ||||||||
Part I | ||||||||
Part II | ||||||||
Part III | ||||||||
Key Segments | Drainage Pipe & Products | Water Pipe & Products | Key Segments | Drainage Pipe & Products | Water Pipe & Products | |||||||||||||
Products | Products | |||||||||||||||||
Product Applications | Storm water and wastewater infrastructure | Potable and wastewater transmission and distribution | Product Applications | Storm water and wastewater infrastructure | Potable and wastewater transmission and distribution | |||||||||||||
Primary Market Channels | - Direct to Contractors - Distributors | - Distributors - Direct to Contractors, Municipalities and Utilities Waterworks | Primary Market Channels | - Direct to Contractors - Distributors | - Distributors - Direct to Contractors, Municipalities and Utilities Waterworks | |||||||||||||
# of Active Manufacturing Facilities | 59 | 18 | # of Active Manufacturing Facilities | 62 | 15 |
Facility Name | City | State/Province | Ownership | |||||||||||||||||
Drainage Pipe & Products | ||||||||||||||||||||
Caldwell | Caldwell | Idaho | Owned | |||||||||||||||||
Salt Lake City | Salt Lake City | Utah | Owned | |||||||||||||||||
Pelham | Pelham | Alabama | Owned | |||||||||||||||||
El Mirage | El Mirage | Arizona | Leased | |||||||||||||||||
West Memphis | West Memphis | Arkansas | Leased | |||||||||||||||||
Florin Road (2 plants) | Sacramento | California | Leased | |||||||||||||||||
Deland Precast | Deland | Florida | Leased | |||||||||||||||||
Facility Name | City | State/Province | Ownership | |||||||||||||||||
Green Cove Springs | Green Cove Springs | Florida | Owned | |||||||||||||||||
Gretna | Gretna | Florida | Leased | |||||||||||||||||
Winter Haven Pipe | Winter Haven | Florida | Leased | |||||||||||||||||
St. Martinville | St. Martinville | Louisiana | Leased | |||||||||||||||||
Como | Como | Mississippi | Owned | |||||||||||||||||
Prentiss (2 plants) | Prentiss | Mississippi | Owned | |||||||||||||||||
Columbus (2 plants) | Columbus | Ohio | Leased | |||||||||||||||||
Austin Pipe | Austin | Texas | Leased | |||||||||||||||||
Cedar Hill Pipe | Cedar Hill | Texas | Leased | |||||||||||||||||
Grand Prairie (2 plants) | Grand Prairie | Texas | Leased | |||||||||||||||||
Jersey Village (3 plants) | Houston | Texas | Leased | |||||||||||||||||
Waco | Hewitt | Texas | Leased | |||||||||||||||||
Waxahachie (2 plants) | Waxahachie | Texas | Owned | |||||||||||||||||
Ottawa | Gloucester | Ontario | Leased | |||||||||||||||||
Cambridge | Cambridge | Ontario | Leased | |||||||||||||||||
Lexington | Lexington | Kentucky | Leased | |||||||||||||||||
Louisville | Louisville | Kentucky | Leased | |||||||||||||||||
Billings | Billings | Montana | Leased | |||||||||||||||||
Bonner Springs | Bonner Springs | Kansas | Leased | |||||||||||||||||
Cedar Rapids | Cedar Rapids | Iowa | Owned | |||||||||||||||||
Des Moines | Des Moines | Iowa | Leased | |||||||||||||||||
Elk River (4 plants) | Elk River | Minnesota | Leased | |||||||||||||||||
Hawley | Hawley | Minnesota | Leased | |||||||||||||||||
Helena | Helena | Montana | Leased | |||||||||||||||||
Humboldt | Humboldt | Iowa | Owned | |||||||||||||||||
Iowa Falls | Iowa Falls | Iowa | Leased | |||||||||||||||||
Lawrence | Lawrence | Kansas | Owned | |||||||||||||||||
Marshalltown | Marshalltown | Iowa | Leased | |||||||||||||||||
West Des Moines | West Des Moines | Iowa | Leased | |||||||||||||||||
Menoken | Menoken | North Dakota | Leased | |||||||||||||||||
Mitchell | Mitchell | South Dakota | Owned | |||||||||||||||||
Plattsmouth | Plattsmouth | Nebraska | Leased | |||||||||||||||||
Rapid City | Rapid City | South Dakota | Leased | |||||||||||||||||
Henderson (2 plants) | Henderson | Colorado | Leased | |||||||||||||||||
Grand Junction | Grand Junction | Colorado | Leased | |||||||||||||||||
Lubbock | Lubbock | Texas | Owned | |||||||||||||||||
Mineral Wells | Mineral Wells | Texas | Owned | |||||||||||||||||
San Antonio | San Antonio | Texas | Owned | |||||||||||||||||
Stacy | Stacy | Minnesota | Owned | |||||||||||||||||
Riverside (2 plants) | Menifee | California | Leased | |||||||||||||||||
Bio Clean | Oceanside | California | Leased | |||||||||||||||||
St. Eustache Pressure Pipe | St. Eustache | Quebec | Owned | |||||||||||||||||
Bar Nunn | Bar Nunn | Wyoming | Owned |
Facility Name | City | State/Province | Ownership | |||||||||||||||||
Water Pipe & Products | ||||||||||||||||||||
Bessemer (2 plants) | Bessemer | Alabama | Leased | |||||||||||||||||
Mini Mill | Bessemer | Alabama | Leased | |||||||||||||||||
Union City | Union City | California | Owned | |||||||||||||||||
Lynchburg | Lynchburg | Virginia | Owned | |||||||||||||||||
Monterrey, Mexico | Monterrey | Mexico | Owned | |||||||||||||||||
Rogers | Rogers | Minnesota | Leased | |||||||||||||||||
Ottawa | Ottawa | Kansas | Leased | |||||||||||||||||
Marysville | Marysville | California | Leased | |||||||||||||||||
Warren | Warren | Oregon | Leased | |||||||||||||||||
Ephrata | Ephrata | Pennsylvania | Leased | |||||||||||||||||
Phoenix | Phoenix | Arizona | Leased | |||||||||||||||||
Orlando | Orlando | Florida | Leased | |||||||||||||||||
Gainesville | Gainesville | Georgia | Leased | |||||||||||||||||
San Antonio | San Antonio | Texas | Leased |
(in thousands) | Year ended December 31, | Year ended December 31, | Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||||
Statement of Operations Data: | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
Net sales | $ | 1,594,506 | $ | 1,529,752 | $ | 1,479,712 | $ | 1,580,413 | $ | 1,363,962 | |||||||
Cost of goods sold | 1,217,833 | 1,233,370 | 1,234,143 | 1,327,305 | 1,083,508 | ||||||||||||
Gross profit | 376,673 | 296,382 | 245,569 | 253,108 | 280,454 | ||||||||||||
Selling, general & administrative expenses | (221,770) | (221,770) | (209,877) | (255,034) | (216,099) | ||||||||||||
Impairment and exit charges | (2,511) | (3,520) | (4,336) | (13,220) | (2,218) | ||||||||||||
Other operating income, net | 1,409 | 1,094 | 9,523 | 5,197 | (10,971) | ||||||||||||
(222,872) | (224,196) | (204,690) | (263,057) | (229,288) | |||||||||||||
Income (loss) from operations | 153,801 | 72,186 | 40,879 | (9,949) | 51,166 | ||||||||||||
Other income (expenses) | |||||||||||||||||
Interest expense | (79,890) | (94,970) | (78,337) | (59,408) | (125,048) | ||||||||||||
Gain (loss) on extinguishment of debt | (12,256) | 1,708 | — | — | — | ||||||||||||
Earnings from equity method investee | 11,291 | 10,466 | 10,162 | 12,360 | 11,947 | ||||||||||||
Change in tax receivable agreement liability | — | — | — | 46,180 | — | ||||||||||||
Other income (expense), net | — | — | 6,016 | (31,915) | (847) | ||||||||||||
Income (loss) before income taxes | 72,946 | (10,610) | (21,280) | (42,732) | (62,782) | ||||||||||||
Income tax (expense) benefit | (8,460) | 3,279 | (3,085) | 40,672 | 51,692 | ||||||||||||
Income (loss) from continuing operations | 64,486 | (7,331) | (24,365) | (2,060) | (11,090) | ||||||||||||
Discontinued operations, net of tax | $ | — | $ | — | $ | — | $ | — | $ | 3,484 | |||||||
Net income (loss) | $ | 64,486 | $ | (7,331) | $ | (24,365) | $ | (2,060) | $ | (7,606) | |||||||
Basic and Diluted Earnings (loss) Per Share: | |||||||||||||||||
Basic | $ | 0.99 | $ | (0.11) | $ | (0.38) | $ | (0.03) | $ | (0.23) | |||||||
Discontinued operations | $ | — | $ | — | $ | — | $ | — | $ | 0.07 | |||||||
Diluted | $ | 0.94 | $ | (0.11) | $ | (0.38) | $ | (0.03) | $ | (0.16) | |||||||
Statement of Cash Flows Data: | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 243,197 | $ | 146,786 | $ | 27,196 | $ | 42,334 | $ | 76,925 | |||||||
Net cash provided by (used in) investing activities | (18,373) | (42,295) | (51,052) | (66,023) | (1,062,447) | ||||||||||||
Net cash provided by (used in) financing activities | (234,272) | (106,181) | (43,451) | 86,250 | 981,728 | ||||||||||||
Balance Sheet Data: | |||||||||||||||||
Cash and cash equivalents | $ | 25,678 | $ | 34,800 | $ | 35,793 | $ | 104,534 | $ | 40,024 | |||||||
Property, plant & equipment, net | 451,082 | 475,575 | 492,167 | 412,572 | 452,914 | ||||||||||||
Total assets | 1,655,812 | 1,740,058 | 1,793,252 | 1,811,238 | 1,824,786 | ||||||||||||
Total debt1 | 900,021 | 1,098,303 | 1,188,605 | 1,193,787 | 1,096,047 | ||||||||||||
Shareholders' equity | 193,767 | 120,967 | 108,222 | 132,491 | 132,917 |
Successor | Predecessor | |||||||||||||||||||
(in thousands) | Year ended December 31, | Year ended December 31, | Year ended December 31, | Year ended December 31, | For the period March 14 to December 31, | For the period from January 1 to March 13, | ||||||||||||||
Statement of Operations Data: | 2019 | 2018 | 2017 | 2016 | 2015 | 2015 | ||||||||||||||
Net sales | $ | 1,529,752 | $ | 1,479,712 | $ | 1,580,413 | $ | 1,363,962 | $ | 604,275 | $ | 112,698 | ||||||||
Cost of goods sold | 1,233,370 | 1,234,143 | 1,327,305 | 1,083,508 | 513,723 | 98,339 | ||||||||||||||
Gross profit | 296,382 | 245,569 | 253,108 | 280,454 | 90,552 | 14,359 | ||||||||||||||
Selling, general & administrative expenses | (221,770 | ) | (209,877 | ) | (255,034 | ) | (216,099 | ) | (121,554 | ) | (17,106 | ) | ||||||||
Impairment and exit charges | (3,520 | ) | (4,336 | ) | (13,220 | ) | (2,218 | ) | (1,026 | ) | (542 | ) | ||||||||
Other operating income, net | 1,094 | 9,523 | 5,197 | (10,971 | ) | 1,092 | 818 | |||||||||||||
(224,196 | ) | (204,690 | ) | (263,057 | ) | (229,288 | ) | (121,488 | ) | (16,830 | ) | |||||||||
Income (loss) from operations | 72,186 | 40,879 | (9,949 | ) | 51,166 | (30,936 | ) | (2,471 | ) | |||||||||||
Other income (expenses) | ||||||||||||||||||||
Interest expense | (94,970 | ) | (78,337 | ) | (59,408 | ) | (125,048 | ) | (45,953 | ) | (82 | ) | ||||||||
Gain on extinguishment of debt | 1,708 | — | — | — | — | — | ||||||||||||||
Earnings from equity method investee | 10,466 | 10,162 | 12,360 | 11,947 | 8,429 | 67 | ||||||||||||||
Change in tax receivable agreement liability | — | — | 46,180 | — | — | — | ||||||||||||||
Other income (expense), net | — | 6,016 | (31,915 | ) | (847 | ) | (326 | ) | (28 | ) | ||||||||||
Loss before income taxes | (10,610 | ) | (21,280 | ) | (42,732 | ) | (62,782 | ) | (68,786 | ) | (2,514 | ) | ||||||||
Income tax (expense) benefit | 3,279 | (3,085 | ) | 40,672 | 51,692 | (5,392 | ) | 742 | ||||||||||||
Loss from continuing operations | (7,331 | ) | (24,365 | ) | (2,060 | ) | (11,090 | ) | (74,178 | ) | (1,772 | ) | ||||||||
Discontinued operations, net of tax | $ | — | $ | — | $ | — | $ | 3,484 | $ | (8,608 | ) | $ | (3,984 | ) | ||||||
Net loss | $ | (7,331 | ) | $ | (24,365 | ) | $ | (2,060 | ) | $ | (7,606 | ) | $ | (82,786 | ) | $ | (5,756 | ) | ||
Basic and Diluted Earnings (loss) Per Share: | ||||||||||||||||||||
Continuing operations | $ | (0.11 | ) | $ | (0.38 | ) | $ | (0.03 | ) | $ | (0.23 | ) | $ | (1.63 | ) | |||||
Discontinued operations | $ | — | $ | — | $ | — | $ | 0.07 | $ | (0.19 | ) | |||||||||
Net loss | $ | (0.11 | ) | $ | (0.38 | ) | $ | (0.03 | ) | $ | (0.16 | ) | $ | (1.82 | ) | |||||
Statement of Cash Flows Data: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 146,786 | $ | 27,196 | $ | 42,334 | $ | 76,925 | $ | 121,417 | $ | (48,224 | ) | |||||||
Net cash provided by (used in) investing activities | (42,295 | ) | (51,052 | ) | (66,023 | ) | (1,062,447 | ) | (898,039 | ) | (2,762 | ) | ||||||||
Net cash provided by (used in) financing activities | (106,181 | ) | (43,451 | ) | 86,250 | 981,728 | 822,580 | 60,907 | ||||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Cash and cash equivalents | $ | 34,800 | $ | 35,793 | $ | 104,534 | $ | 40,024 | $ | 26,027 | ||||||||||
Property, plant & equipment, net | 475,575 | 492,167 | 412,572 | 452,914 | 315,859 | |||||||||||||||
Total assets | 1,740,058 | 1,793,252 | 1,811,238 | 1,824,786 | 938,875 | |||||||||||||||
Total debt1 | 1,098,303 | 1,188,605 | 1,193,787 | 1,096,047 | 705,829 | |||||||||||||||
Shareholders' equity | 120,967 | 108,222 | 132,491 | 132,917 | 52,315 |
(1) | each restricted stock unit that is solely subject to time-based vesting requirements granted under the Company Stock Plans that is outstanding immediately prior to the Effective Time shall fully vest and be converted into the right to receive an amount in cash (without interest and subject to applicable tax withholdings) equal to the product of (i) the Merger Consideration multiplied by (ii) the number of shares of Common Stock subject to such vested restricted stock unit; |
(2) | each restricted stock unit that is subject to performance-based vesting requirements granted under the Company Stock Plans that is outstanding immediately prior to the Effective Time shall immediately vest and be converted into the right to receive an amount in cash (without interest and subject to applicable tax withholdings) equal to the product of (i) the Merger Consideration multiplied by (ii) the number of shares subject to such vested restricted stock unit immediately prior to the Effective Time as determined in accordance with the Merger Agreement; |
(3) | each option to purchase shares of Common Stock granted under the Company Stock Plans that is outstanding immediately prior to the Effective Time shall fully vest, to the extent not vested previously, and be converted into the right to receive an amount in cash (without interest and subject to applicable tax withholdings) equal to the product of (i) the remainder, if positive, of (A) the Merger Consideration minus (B) the exercise price per share of Common Stock of such option multiplied by (ii) the number of shares of Common Stock subject to such vested option; and |
(4) | each Company Restricted Share that is outstanding immediately prior to the Effective Time shall immediately vest in full and be converted into the right to receive an amount in cash (without interest and subject to applicable tax withholdings) equal to the Merger Consideration. |
Statements of Income Data: | Year ended December 31, 2020 | Year ended December 31, 2019 | % Change | |||||||||||||||||
Net sales | $ | 1,594,506 | $ | 1,529,752 | 4.2% | |||||||||||||||
Cost of goods sold | 1,217,833 | 1,233,370 | (1.3)% | |||||||||||||||||
Gross profit | 376,673 | 296,382 | 27.1% | |||||||||||||||||
Selling, general and administrative expenses | (221,770) | (221,770) | —% | |||||||||||||||||
Impairment and exit charges | (2,511) | (3,520) | (28.7)% | |||||||||||||||||
Other operating income, net | 1,409 | 1,094 | 28.8% | |||||||||||||||||
(222,872) | (224,196) | (0.6)% | ||||||||||||||||||
Income from operations | 153,801 | 72,186 | 113.1% | |||||||||||||||||
Other income (expenses) | ||||||||||||||||||||
Interest expense | (79,890) | (94,970) | (15.9)% | |||||||||||||||||
Gain (loss) on extinguishment of debt | (12,256) | 1,708 | * | |||||||||||||||||
Earnings from equity method investee | 11,291 | 10,466 | 7.9% | |||||||||||||||||
Income (loss) before income taxes | 72,946 | (10,610) | * | |||||||||||||||||
Income tax (expense) benefit | (8,460) | 3,279 | * | |||||||||||||||||
Net income (loss) | $ | 64,486 | $ | (7,331) | * |
(in thousands) | For the year ended December 31, | |||||||||||||||||||
2020 | 2019(2) | % Change | ||||||||||||||||||
Net sales: | ||||||||||||||||||||
Drainage Pipe & Products | $ | 887,420 | $ | 913,033 | (2.8) | % | ||||||||||||||
Water Pipe & Products | 707,086 | 616,719 | 14.7 | % | ||||||||||||||||
Corporate and Other | — | — | ||||||||||||||||||
Total | $ | 1,594,506 | $ | 1,529,752 | 4.2 | % | ||||||||||||||
Gross profit (loss): | ||||||||||||||||||||
Drainage Pipe & Products | 211,568 | 201,015 | 5.3 | % | ||||||||||||||||
Water Pipe & Products | 165,078 | 95,581 | 72.7 | % | ||||||||||||||||
Corporate and Other | 27 | (214) | * | |||||||||||||||||
Total | $ | 376,673 | $ | 296,382 | 27.1 | % | ||||||||||||||
Segment EBITDA(1): | ||||||||||||||||||||
Drainage Pipe & Products | 187,547 | 173,006 | 8.4 | % | ||||||||||||||||
Water Pipe & Products(2) | 145,451 | 82,831 | 75.6 | % | ||||||||||||||||
Corporate and Other | (90,666) | (74,219) | 22.2 | % | ||||||||||||||||
Statements of Income Data: | Year ended December 31, 2019 | Year ended December 31, 2018 | % Change | Statements of Income Data: | Year ended December 31, 2019 | Year ended December 31, 2018 | % Change | ||||||||||||||||||||||
Net sales | $ | 1,529,752 | $ | 1,479,712 | 3.4% | Net sales | $ | 1,529,752 | $ | 1,479,712 | 3.4 | % | |||||||||||||||||
Cost of goods sold | 1,233,370 | 1,234,143 | (0.1)% | Cost of goods sold | 1,233,370 | 1,234,143 | (0.1) | % | |||||||||||||||||||||
Gross profit | 296,382 | 245,569 | 20.7% | Gross profit | 296,382 | 245,569 | 20.7 | % | |||||||||||||||||||||
Selling, general and administrative expenses | (221,770 | ) | (209,877 | ) | 5.7% | Selling, general and administrative expenses | (221,770) | (209,877) | 5.7 | % | |||||||||||||||||||
Impairment and exit charges | (3,520 | ) | (4,336 | ) | (18.8)% | Impairment and exit charges | (3,520) | (4,336) | (18.8) | % | |||||||||||||||||||
Other operating income, net | 1,094 | 9,523 | (88.5)% | Other operating income, net | 1,094 | 9,523 | (88.5) | % | |||||||||||||||||||||
(224,196 | ) | (204,690 | ) | 9.5% | (224,196) | (204,690) | 9.5 | % | |||||||||||||||||||||
Income from operations | 72,186 | 40,879 | 76.6% | Income from operations | 72,186 | 40,879 | 76.6 | % | |||||||||||||||||||||
Other income (expenses) | Other income (expenses) | ||||||||||||||||||||||||||||
Interest expense | (94,970 | ) | (78,337 | ) | 21.2% | Interest expense | (94,970) | (78,337) | 21.2 | % | |||||||||||||||||||
Gain on extinguishment of debt | 1,708 | — | * | Gain on extinguishment of debt | 1,708 | — | * | ||||||||||||||||||||||
Earnings from equity method investee | 10,466 | 10,162 | 3.0% | Earnings from equity method investee | 10,466 | 10,162 | 3.0 | % | |||||||||||||||||||||
Other income, net | — | 6,016 | * | ||||||||||||||||||||||||||
Other income (expense), net | Other income (expense), net | — | 6,016 | * | |||||||||||||||||||||||||
Loss before income taxes | (10,610 | ) | (21,280 | ) | (50.1)% | Loss before income taxes | (10,610) | (21,280) | (50.1) | % | |||||||||||||||||||
Income tax (expense) benefit | 3,279 | (3,085 | ) | * | Income tax (expense) benefit | 3,279 | (3,085) | * | |||||||||||||||||||||
Net loss | $ | (7,331 | ) | $ | (24,365 | ) | (69.9)% | Net loss | $ | (7,331) | $ | (24,365) | (69.9) | % |
(in thousands) | For the year ended December 31, | |||||||||||||||||||
2019(2) | 2018(2) | % Change | ||||||||||||||||||
Net sales: | ||||||||||||||||||||
Drainage Pipe & Products | $ | 913,033 | $ | 839,689 | 8.7 | % | ||||||||||||||
Water Pipe & Products | 616,719 | 640,023 | (3.6) | % | ||||||||||||||||
Corporate and Other | — | — | ||||||||||||||||||
Total | $ | 1,529,752 | $ | 1,479,712 | 3.4 | % | ||||||||||||||
Gross profit (loss): | ||||||||||||||||||||
Drainage Pipe & Products | 201,015 | 177,444 | 13.3 | % | ||||||||||||||||
Water Pipe & Products | 95,581 | 68,813 | 38.9 | % | ||||||||||||||||
Corporate and Other | (214) | (688) | (68.9) | % | ||||||||||||||||
Total | $ | 296,382 | $ | 245,569 | 20.7 | % | ||||||||||||||
Segment EBITDA(1): | ||||||||||||||||||||
Drainage Pipe & Products | 173,006 | 160,295 | 7.9 | % | ||||||||||||||||
Water Pipe & Products(2) | 82,831 | 60,987 | 35.8 | % | ||||||||||||||||
Corporate and Other | (74,219) | (58,802) | 26.2 | % | ||||||||||||||||
(in thousands) | For the year ended December 31, | |||||||||
2019 | 2018 | % Change | ||||||||
Net sales: | ||||||||||
Drainage Pipe & Products | $ | 894,722 | $ | 811,477 | 10.3 | % | ||||
Water Pipe & Products | 635,030 | 668,235 | (5.0 | )% | ||||||
Corporate and Other | — | — | ||||||||
Total | $ | 1,529,752 | $ | 1,479,712 | 3.4 | % | ||||
Gross profit (loss): | ||||||||||
Drainage Pipe & Products | 200,321 | 174,786 | 14.6 | % | ||||||
Water Pipe & Products | 96,275 | 71,471 | 34.7 | % | ||||||
Corporate and Other | (214 | ) | (688 | ) | (68.9 | )% | ||||
Total | $ | 296,382 | $ | 245,569 | 20.7 | % | ||||
Segment EBITDA(1): | ||||||||||
Drainage Pipe & Products | 171,413 | 156,735 | 9.4 | % | ||||||
Water Pipe & Products(2) | 84,424 | 64,547 | 30.8 | % | ||||||
Corporate and Other | (74,219 | ) | (58,802 | ) | 26.2 | % |
Statements of Income Data: | Year ended December 31, 2018 | Year ended December 31, 2017 | % Change | |||||||
Net sales | $ | 1,479,712 | $ | 1,580,413 | (6.4 | )% | ||||
Cost of goods sold | 1,234,143 | 1,327,305 | (7.0 | )% | ||||||
Gross profit | 245,569 | 253,108 | (3.0 | )% | ||||||
Selling, general and administrative expenses | (209,877 | ) | (255,034 | ) | (17.7 | )% | ||||
Impairment and exit charges | (4,336 | ) | (13,220 | ) | (67.2 | )% | ||||
Other operating income, net | 9,523 | 5,197 | 83.2 | % | ||||||
(204,690 | ) | (263,057 | ) | (22.2 | )% | |||||
Income (loss) from operations | 40,879 | (9,949 | ) | * | ||||||
Other income (expenses) | ||||||||||
Interest expense | (78,337 | ) | (59,408 | ) | 31.9 | % | ||||
Change in tax receivable agreement liability | — | 46,180 | * | |||||||
Earnings from equity method investee | 10,162 | 12,360 | (17.8 | )% | ||||||
Other income (expense), net | 6,016 | (31,915 | ) | * | ||||||
Loss before income taxes | (21,280 | ) | (42,732 | ) | (50.2 | )% | ||||
Income tax (expense) benefit | (3,085 | ) | 40,672 | * | ||||||
Net loss | $ | (24,365 | ) | $ | (2,060 | ) | * |
(in thousands) | For the year ended December 31, | |||||||||
2018 | 2017 | % Change | ||||||||
Net sales: | ||||||||||
Drainage Pipe & Products | $ | 811,477 | $ | 834,810 | (2.8 | )% | ||||
Water Pipe & Products | 668,235 | 745,555 | (10.4 | )% | ||||||
Corporate and Other | — | 48 | (100.0 | )% | ||||||
Total | $ | 1,479,712 | $ | 1,580,413 | (6.4 | )% | ||||
Gross profit (loss): | ||||||||||
Drainage Pipe & Products | 174,786 | 147,741 | 18.3 | % | ||||||
Water Pipe & Products | 71,471 | 108,320 | (34.0 | )% | ||||||
Corporate and Other | (688 | ) | (2,953 | ) | (76.7 | )% | ||||
Total | $ | 245,569 | $ | 253,108 | (3.0 | )% | ||||
Segment EBITDA(1): | ||||||||||
Drainage Pipe & Products | 156,735 | 129,618 | 20.9 | % | ||||||
Water Pipe & Products(2) | 64,547 | 47,587 | 35.6 | % | ||||||
Corporate and Other | (58,802 | ) | (44,870 | ) | 31.0 | % |
Parent - Forterra, Inc. and Subsidiary Guarantors | ||||||||
December 31, 2020 | December 31, 2019 | |||||||
Current assets | $ | 443,839 | $ | 459,437 | ||||
Intercompany payable to non-guarantor subsidiaries | 8,384 | 6,087 | ||||||
Non-current assets | 1,115,191 | 1,175,697 | ||||||
Current liabilities | 267,672 | 217,766 | ||||||
Non-current liabilities | 1,176,492 | 1,383,697 |
Parent - Forterra, Inc. and Subsidiary Guarantors | ||||||||
Year ended December 31, 2020 | Year ended December 31, 2019 | |||||||
Net sales | $ | 1,514,556 | $ | 1,448,492 | ||||
Gross profit | 347,854 | 272,489 | ||||||
Income before taxes | 58,880 | 21,557 | ||||||
Net income | 52,273 | 14,813 |
Year ended December 31, 2020 | Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||
Statement of Cash Flows data: | |||||||||||||||||
Net cash provided by operating activities | $ | 243,197 | $ | 146,786 | $ | 27,196 | |||||||||||
Net cash used in investing activities | (18,373) | (42,295) | (51,052) | ||||||||||||||
Net cash used in financing activities | (234,272) | (106,181) | (43,451) |
Year ended December 31, 2019 | Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||
Statement of Cash Flows data: | |||||||||||
Net cash provided by operating activities | $ | 146,786 | $ | 27,196 | $ | 42,334 | |||||
Net cash used in investing activities | (42,295 | ) | (51,052 | ) | (66,023 | ) | |||||
Net cash (used in) provided by financing activities | (106,181 | ) | (43,451 | ) | 86,250 |
Payment Due by Period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment Due by Period | Total | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior term loan | $ | 1,123,358 | $ | 12,510 | $ | 12,510 | $ | 12,510 | $ | 1,085,828 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term loan | Term loan | $ | 414,867 | $ | 12,510 | $ | 12,510 | $ | 389,847 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes | Notes | 500,000 | — | — | — | — | 500,000 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest on indebtedness (1) | 204,282 | 54,532 | 53,774 | 53,165 | 42,811 | — | — | Interest on indebtedness (1) | 45,388 | 16,591 | 16,084 | 12,713 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating leases | 160,218 | 11,858 | 9,682 | 9,380 | 10,127 | 9,561 | 109,610 | Operating leases | 150,110 | 10,201 | 9,829 | 10,569 | 9,836 | 9,446 | 100,229 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance leases | 738,967 | 16,894 | 17,049 | 17,300 | 17,516 | 17,841 | 652,367 | Finance leases | 726,999 | 18,024 | 18,239 | 18,366 | 18,599 | 18,803 | 634,968 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Commitments | $ | 2,226,825 | $ | 95,794 | $ | 93,015 | $ | 92,355 | $ | 1,156,282 | $ | 27,402 | $ | 761,977 | Total Commitments | $ | 1,837,364 | $ | 57,326 | $ | 56,662 | $ | 431,495 | $ | 28,435 | $ | 528,249 | $ | 735,197 |
Consolidated Financial Statements | |||||
Report of Independent Registered Public Accounting Firm | |||||
Consolidated Statements of Operations | |||||
Consolidated Statements of Comprehensive Income (Loss) | |||||
Consolidated Balance Sheets | |||||
Consolidated Statements of Shareholders' Equity | |||||
Consolidated Statements of Cash Flows | |||||
Consolidated Notes to Financial Statements |
Description of the Matter | As more fully described in Note 20 to the consolidated financial statements, at December 31, 2020, the Company had deferred tax assets related to deductible temporary differences of $87.1 million, net of a $1.7 million valuation allowance. Deferred tax assets are reduced by a valuation allowance if, based on the weight of all available evidence, in management’s judgment it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. Auditing management’s assessment of the realizability of its deferred tax assets involved complex auditor judgment because management’s estimate is highly judgmental and based on significant assumptions that may be affected by future market or economic conditions. | |||||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls that address the risks of material misstatement relating to the realizability of deferred tax assets. This included controls over management’s scheduling of the future reversal of existing taxable temporary differences and projections of future taxable income. Among other audit procedures performed, we tested the Company’s scheduling of the reversal of existing temporary taxable differences, including evaluation of the timing of the reversal pattern. We evaluated the assumptions used by the Company to develop projections of future taxable income by jurisdiction and tested the completeness and accuracy of the underlying data used in its projections. For example, we compared the projections of future taxable income with the actual results of prior periods, as well as management’s consideration of current industry and economic trends. We also assessed the historical accuracy of management’s projections and compared the projections of future taxable income with other forecasted financial information prepared by the Company. |
Year ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net sales | $ | 1,594,506 | $ | 1,529,752 | $ | 1,479,712 | |||||||||||
Cost of goods sold | 1,217,833 | 1,233,370 | 1,234,143 | ||||||||||||||
Gross profit | 376,673 | 296,382 | 245,569 | ||||||||||||||
Selling, general & administrative expenses | (221,770) | (221,770) | (209,877) | ||||||||||||||
Impairment and exit charges | (2,511) | (3,520) | (4,336) | ||||||||||||||
Other operating income, net | 1,409 | 1,094 | 9,523 | ||||||||||||||
(222,872) | (224,196) | (204,690) | |||||||||||||||
Income from operations | 153,801 | 72,186 | 40,879 | ||||||||||||||
Other income (expenses) | |||||||||||||||||
Interest expense | (79,890) | (94,970) | (78,337) | ||||||||||||||
Gain (loss) on extinguishment of debt | (12,256) | 1,708 | 0 | ||||||||||||||
Earnings from equity method investee | 11,291 | 10,466 | 10,162 | ||||||||||||||
Other income (expense), net | 0 | 0 | 6,016 | ||||||||||||||
Income (loss) before income taxes | 72,946 | (10,610) | (21,280) | ||||||||||||||
Income tax (expense) benefit | (8,460) | 3,279 | (3,085) | ||||||||||||||
Net income (loss) | $ | 64,486 | $ | (7,331) | $ | (24,365) | |||||||||||
Earnings (loss) per share: | |||||||||||||||||
Basic | $ | 0.99 | $ | (0.11) | $ | (0.38) | |||||||||||
Diluted | $ | 0.94 | $ | (0.11) | $ | (0.38) | |||||||||||
Weighted average shares of common stock outstanding: | |||||||||||||||||
Basic | 65,260 | 64,232 | 63,904 | ||||||||||||||
Diluted | 68,203 | 64,232 | 63,904 |
Year ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net sales | $ | 1,529,752 | $ | 1,479,712 | $ | 1,580,413 | |||||
Cost of goods sold | 1,233,370 | 1,234,143 | 1,327,305 | ||||||||
Gross profit | 296,382 | 245,569 | 253,108 | ||||||||
Selling, general & administrative expenses | (221,770 | ) | (209,877 | ) | (255,034 | ) | |||||
Impairment and exit charges | (3,520 | ) | (4,336 | ) | (13,220 | ) | |||||
Other operating income, net | 1,094 | 9,523 | 5,197 | ||||||||
(224,196 | ) | (204,690 | ) | (263,057 | ) | ||||||
Income (loss) from operations | 72,186 | 40,879 | (9,949 | ) | |||||||
Other income (expenses) | |||||||||||
Interest expense | (94,970 | ) | (78,337 | ) | (59,408 | ) | |||||
Gain on extinguishment of debt | 1,708 | — | — | ||||||||
Earnings from equity method investee | 10,466 | 10,162 | 12,360 | ||||||||
Change in tax receivable agreement liability | — | — | 46,180 | ||||||||
Other income (expense), net | — | 6,016 | (31,915 | ) | |||||||
Loss before income taxes | (10,610 | ) | (21,280 | ) | (42,732 | ) | |||||
Income tax (expense) benefit | 3,279 | (3,085 | ) | 40,672 | |||||||
Net loss | $ | (7,331 | ) | $ | (24,365 | ) | $ | (2,060 | ) | ||
Basic and Diluted earnings (loss) per share: | |||||||||||
Net loss | $ | (0.11 | ) | $ | (0.38 | ) | $ | (0.03 | ) | ||
Weighted average shares of common stock outstanding: | |||||||||||
Basic and Diluted | 64,232 | 63,904 | 63,801 |
Year ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net income (loss) | $ | 64,486 | $ | (7,331) | $ | (24,365) | |||||||||||
Unrealized gain on derivative activities, net of tax | 0 | 0 | 970 | ||||||||||||||
Change in other postretirement benefit plans, net of tax | (1,042) | 373 | 0 | ||||||||||||||
Foreign currency translation adjustment | 1,149 | 3,304 | (5,782) | ||||||||||||||
Comprehensive income (loss) | $ | 64,593 | $ | (3,654) | $ | (29,177) |
Year ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net loss | $ | (7,331 | ) | $ | (24,365 | ) | $ | (2,060 | ) | ||
Unrealized gain (loss) on derivative activities, net of tax | — | 970 | (3,548 | ) | |||||||
Change in other postretirement benefit plans, net of tax | 373 | — | — | ||||||||
Foreign currency translation adjustment | 3,304 | (5,782 | ) | 3,475 | |||||||
Comprehensive loss | $ | (3,654 | ) | $ | (29,177 | ) | $ | (2,133 | ) |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 25,678 | $ | 34,800 | |||||||
Receivables, net | 227,948 | 205,801 | |||||||||
Inventories | 222,928 | 238,483 | |||||||||
Prepaid expenses | 7,967 | 11,021 | |||||||||
Other current assets | 2,022 | 8,890 | |||||||||
Total current assets | 486,543 | 498,995 | |||||||||
Non-current assets | |||||||||||
Property, plant and equipment, net | 451,082 | 475,575 | |||||||||
Operating lease right-of-use assets | 54,379 | 60,253 | |||||||||
Goodwill | 509,127 | 508,826 | |||||||||
Intangible assets, net | 101,409 | 142,674 | |||||||||
Investment in equity method investee | 48,285 | 50,034 | |||||||||
Other long-term assets | 4,987 | 3,701 | |||||||||
Total assets | $ | 1,655,812 | $ | 1,740,058 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities | |||||||||||
Trade payables | $ | 134,144 | $ | 102,426 | |||||||
Accrued liabilities | 115,693 | 88,839 | |||||||||
Deferred revenue | 8,220 | 9,527 | |||||||||
Current portion of long-term debt | 12,510 | 12,510 | |||||||||
Current portion of tax receivable agreement | 8,333 | 13,145 | |||||||||
Total current liabilities | 278,900 | 226,447 | |||||||||
Non-current liabilities | |||||||||||
Senior term loan | 395,468 | 1,085,793 | |||||||||
Senior secured notes | 492,043 | 0 | |||||||||
Long-term finance lease liabilities | 142,195 | 137,365 | |||||||||
Long-term operating lease liabilities | 50,943 | 54,411 | |||||||||
Deferred tax liabilities | 9,671 | 28,929 | |||||||||
Other long-term liabilities | 36,918 | 21,906 | |||||||||
Long-term tax receivable agreement | 55,907 | 64,240 | |||||||||
Total liabilities | 1,462,045 | 1,619,091 | |||||||||
Commitments and Contingencies (Note 16) | 0 | 0 | |||||||||
Equity | |||||||||||
Common stock, $0.001 par value. 190,000 shares authorized; 65,981 and 64,741 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 19 | 19 | |||||||||
Additional paid-in-capital | 252,579 | 244,372 | |||||||||
Accumulated other comprehensive loss | (6,956) | (7,063) | |||||||||
Retained deficit | (51,875) | (116,361) | |||||||||
Total shareholders' equity | 193,767 | 120,967 | |||||||||
Total liabilities and shareholders' equity | $ | 1,655,812 | $ | 1,740,058 |
December 31, | |||||||
2019 | 2018 | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 34,800 | $ | 35,793 | |||
Receivables, net | 205,801 | 198,468 | |||||
Inventories | 238,483 | 285,030 | |||||
Prepaid expenses | 11,021 | 7,289 | |||||
Other current assets | 8,890 | 17,509 | |||||
Total current assets | 498,995 | 544,089 | |||||
Non-current assets | |||||||
Property, plant and equipment, net | 475,575 | 492,167 | |||||
Operating lease right-of-use assets | 60,253 | — | |||||
Goodwill | 508,826 | 508,193 | |||||
Intangible assets, net | 142,674 | 183,789 | |||||
Investment in equity method investee | 50,034 | 50,607 | |||||
Other long-term assets | 3,701 | 14,407 | |||||
Total assets | $ | 1,740,058 | $ | 1,793,252 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Trade payables | $ | 102,426 | $ | 114,708 | |||
Accrued liabilities | 88,839 | 70,236 | |||||
Deferred revenue | 9,527 | 9,138 | |||||
Current portion of long-term debt | 12,510 | 12,510 | |||||
Current portion of tax receivable agreement | 13,145 | 15,457 | |||||
Total current liabilities | 226,447 | 222,049 | |||||
Non-current liabilities | |||||||
Long-term debt | 1,085,793 | 1,176,095 | |||||
Long-term finance lease liabilities | 137,365 | 134,948 | |||||
Long-term operating lease liabilities | 54,411 | — | |||||
Deferred tax liabilities | 28,929 | 46,615 | |||||
Deferred gain on sale-leaseback | — | 9,338 | |||||
Other long-term liabilities | 21,906 | 22,667 | |||||
Long-term tax receivable agreement | 64,240 | 73,318 | |||||
Total liabilities | 1,619,091 | 1,685,030 | |||||
Commitments and Contingencies (Note 16) | |||||||
Equity | |||||||
Common stock, $0.001 par value. 190,000 shares authorized; 64,741 and 64,206 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively | 19 | 18 | |||||
Additional paid-in-capital | 244,372 | 234,931 | |||||
Accumulated other comprehensive loss | (7,063 | ) | (10,740 | ) | |||
Retained deficit | (116,361 | ) | (115,987 | ) | |||
Total shareholders' equity | 120,967 | 108,222 | |||||
Total liabilities and shareholders' equity | $ | 1,740,058 | $ | 1,793,252 |
Common Stock | ||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-in-Capital | Accumulated Other Comprehensive Income (Loss) | Retained Deficit | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 64,230,888 | $ | 18 | $ | 230,023 | $ | (5,098) | $ | (92,452) | $ | 132,491 | |||||||||||||||||||||||||||
Share-based compensation expense | — | — | 6,240 | — | — | 6,240 | ||||||||||||||||||||||||||||||||
Stock-based plan activity | (25,284) | — | (126) | — | — | (126) | ||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (24,365) | (24,365) | ||||||||||||||||||||||||||||||||
Gains on derivative transactions, net of tax | — | — | — | 970 | — | 970 | ||||||||||||||||||||||||||||||||
Reclassification due to the adoption of ASU 2018-02 | — | — | — | (830) | 830 | 0 | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (5,782) | — | (5,782) | ||||||||||||||||||||||||||||||||
Other | — | — | (1,206) | — | — | (1,206) | ||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 64,205,604 | $ | 18 | $ | 234,931 | $ | (10,740) | $ | (115,987) | $ | 108,222 | |||||||||||||||||||||||||||
Cumulative effect of accounting changes, net of tax | — | — | — | — | 6,957 | 6,957 | ||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | 7,919 | — | — | 7,919 | ||||||||||||||||||||||||||||||||
Stock-based plan activity | 535,063 | 1 | 1,522 | — | — | 1,523 | ||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (7,331) | (7,331) | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | 3,304 | — | 3,304 | ||||||||||||||||||||||||||||||||
Other | — | — | — | 373 | — | 373 | ||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 64,740,667 | $ | 19 | $ | 244,372 | $ | (7,063) | $ | (116,361) | $ | 120,967 | |||||||||||||||||||||||||||
Share-based compensation expense | — | — | 9,489 | — | — | 9,489 | ||||||||||||||||||||||||||||||||
Stock-based plan activity | 1,240,120 | — | (1,282) | — | — | (1,282) | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 64,486 | 64,486 | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | 1,149 | — | 1,149 | ||||||||||||||||||||||||||||||||
Other | — | — | — | (1,042) | — | (1,042) | ||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 65,980,787 | $ | 19 | $ | 252,579 | $ | (6,956) | $ | (51,875) | $ | 193,767 |
Common Stock | |||||||||||||||||||||||
Shares | Amount | Additional Paid-in-Capital | Accumulated Other Comprehensive Income (Loss) | Retained Deficit | Total Shareholders' Equity | ||||||||||||||||||
Balance at December 31, 2016 | 63,924,124 | $ | 18 | $ | 228,316 | $ | (5,025 | ) | $ | (90,392 | ) | $ | 132,917 | ||||||||||
Share-based compensation expense | — | — | 3,696 | — | — | 3,696 | |||||||||||||||||
Stock-based plan activity | 306,764 | — | (37 | ) | — | — | (37 | ) | |||||||||||||||
Net loss | — | — | — | — | (2,060 | ) | (2,060 | ) | |||||||||||||||
Gains on derivative transactions, net of tax | — | — | — | (3,548 | ) | — | (3,548 | ) | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 3,475 | — | 3,475 | |||||||||||||||||
Other | — | — | (1,952 | ) | — | — | (1,952 | ) | |||||||||||||||
Balance at December 31, 2017 | 64,230,888 | $ | 18 | $ | 230,023 | $ | (5,098 | ) | $ | (92,452 | ) | $ | 132,491 | ||||||||||
Share-based compensation expense | — | — | 6,240 | — | — | 6,240 | |||||||||||||||||
Stock-based plan activity | (25,284 | ) | — | (126 | ) | — | — | (126 | ) | ||||||||||||||
Net loss | — | — | — | — | (24,365 | ) | (24,365 | ) | |||||||||||||||
Gain on derivative transactions, net of tax | — | — | — | 970 | — | 970 | |||||||||||||||||
Reclassification due to the adoption of ASU 2018-02 | — | — | — | (830 | ) | 830 | — | ||||||||||||||||
Foreign currency translation adjustment | — | — | — | (5,782 | ) | — | (5,782 | ) | |||||||||||||||
Other | — | — | (1,206 | ) | — | — | (1,206 | ) | |||||||||||||||
Balance at December 31, 2018 | 64,205,604 | $ | 18 | $ | 234,931 | $ | (10,740 | ) | $ | (115,987 | ) | $ | 108,222 | ||||||||||
Cumulative effect of accounting changes, net of tax | — | — | — | — | 6,957 | 6,957 | |||||||||||||||||
Share-based compensation expense | — | — | 7,919 | — | — | 7,919 | |||||||||||||||||
Stock-based plan activity | 535,063 | 1 | 1,522 | — | — | 1,523 | |||||||||||||||||
Net loss | — | — | — | — | (7,331 | ) | (7,331 | ) | |||||||||||||||
Foreign currency translation adjustment | — | — | — | 3,304 | — | 3,304 | |||||||||||||||||
Other | — | — | — | 373 | — | 373 | |||||||||||||||||
Balance at December 31, 2019 | 64,740,667 | $ | 19 | $ | 244,372 | $ | (7,063 | ) | $ | (116,361 | ) | $ | 120,967 |
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2020 | 2019 | 2018 | |||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||||||||
Net loss | $ | (7,331 | ) | $ | (24,365 | ) | $ | (2,060 | ) | |||||||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | 64,486 | $ | (7,331) | $ | (24,365) | |||||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||||||||||
Depreciation & amortization expense | 97,258 | 105,423 | 115,659 | Depreciation & amortization expense | 89,496 | 97,258 | 105,423 | |||||||||||||||||||||
(Gain) / loss on business divestiture | — | (6,016 | ) | 32,278 | ||||||||||||||||||||||||
Gain on business divestiture | Gain on business divestiture | 0 | 0 | (6,016) | ||||||||||||||||||||||||
(Gain) / loss on disposal of property, plant and equipment | 2,045 | (4,266 | ) | 2,107 | (Gain) / loss on disposal of property, plant and equipment | 638 | 2,045 | (4,266) | ||||||||||||||||||||
Gain on extinguishment of debt | (1,708 | ) | — | — | ||||||||||||||||||||||||
(Gain) / loss on extinguishment of debt | (Gain) / loss on extinguishment of debt | 12,256 | (1,708) | 0 | ||||||||||||||||||||||||
Amortization of debt discount and issuance costs | 7,962 | 8,143 | 8,123 | Amortization of debt discount and issuance costs | 6,599 | 7,962 | 8,143 | |||||||||||||||||||||
Stock-based compensation expense | 7,919 | 6,240 | 3,696 | Stock-based compensation expense | 9,489 | 7,919 | 6,240 | |||||||||||||||||||||
Impairment on property, plant, and equipment and goodwill | 128 | 956 | 10,551 | |||||||||||||||||||||||||
Impairment of property, plant, and equipment and goodwill | Impairment of property, plant, and equipment and goodwill | 1,206 | 128 | 956 | ||||||||||||||||||||||||
Earnings from equity method investee | (10,466 | ) | (10,162 | ) | (12,360 | ) | Earnings from equity method investee | (11,291) | (10,466) | (10,162) | ||||||||||||||||||
Distributions from equity method investee | 11,039 | 13,141 | 13,717 | Distributions from equity method investee | 13,039 | 11,039 | 13,141 | |||||||||||||||||||||
Unrealized (gain) loss on derivative instruments, net | 6,401 | (1,408 | ) | (5,251 | ) | |||||||||||||||||||||||
Unrealized foreign currency gains, net | 45 | (527 | ) | (615 | ) | |||||||||||||||||||||||
Unrealized (gain) / loss on derivative instruments, net | Unrealized (gain) / loss on derivative instruments, net | 830 | 6,401 | (1,408) | ||||||||||||||||||||||||
Unrealized foreign currency (gains) / losses, net | Unrealized foreign currency (gains) / losses, net | 311 | 45 | (527) | ||||||||||||||||||||||||
Provision (recoveries) for doubtful accounts | 387 | (1,224 | ) | 2,947 | Provision (recoveries) for doubtful accounts | (271) | 387 | (1,224) | ||||||||||||||||||||
Deferred income taxes | (20,067 | ) | (20,768 | ) | (25,496 | ) | Deferred income taxes | (19,258) | (20,067) | (20,768) | ||||||||||||||||||
Tax receivable agreement non-cash items | — | — | (46,180 | ) | ||||||||||||||||||||||||
Deferred rent | — | 1,373 | 2,616 | Deferred rent | 0 | 0 | 1,373 | |||||||||||||||||||||
Other non-cash items | 1,320 | 83 | 196 | Other non-cash items | 5,188 | 1,320 | 83 | |||||||||||||||||||||
Change in assets and liabilities: | Change in assets and liabilities: | |||||||||||||||||||||||||||
Receivables, net | (7,394 | ) | (2,466 | ) | (16,831 | ) | Receivables, net | (21,421) | (7,394) | (2,466) | ||||||||||||||||||
Inventories | 47,491 | (45,313 | ) | 1,838 | Inventories | 15,683 | 47,491 | (45,313) | ||||||||||||||||||||
Other current assets | 514 | 8,657 | (24,003 | ) | Other current assets | 9,662 | 514 | 8,657 | ||||||||||||||||||||
Accounts payable and accrued liabilities | 2,675 | (4,548 | ) | (19,424 | ) | Accounts payable and accrued liabilities | 53,936 | 2,675 | (4,548) | |||||||||||||||||||
Other assets & liabilities | 8,568 | 4,243 | 826 | Other assets & liabilities | 12,619 | 8,568 | 4,243 | |||||||||||||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 146,786 | 27,196 | 42,334 | NET CASH PROVIDED BY OPERATING ACTIVITIES | 243,197 | 146,786 | 27,196 | |||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||||||||
Purchase of property, plant and equipment, and intangible assets | (53,709 | ) | (50,609 | ) | (52,514 | ) | Purchase of property, plant and equipment, and intangible assets | (34,019) | (53,709) | (50,609) | ||||||||||||||||||
Proceeds from business divestiture | — | 618 | 23,200 | Proceeds from business divestiture | 0 | 0 | 618 | |||||||||||||||||||||
Proceeds from sale of fixed assets | 11,414 | 8,429 | — | Proceeds from sale of fixed assets | 15,646 | 11,414 | 8,429 | |||||||||||||||||||||
Settlement of net investment hedges | — | (4,990 | ) | — | Settlement of net investment hedges | 0 | 0 | (4,990) | ||||||||||||||||||||
Assets and liabilities acquired, business combinations, net | — | (4,500 | ) | (36,709 | ) | Assets and liabilities acquired, business combinations, net | 0 | 0 | (4,500) | |||||||||||||||||||
NET CASH USED IN INVESTING ACTIVITIES | (42,295 | ) | (51,052 | ) | (66,023 | ) | NET CASH USED IN INVESTING ACTIVITIES | (18,373) | (42,295) | (51,052) | ||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||||||||
Payments of debt issuance costs | — | — | (2,498 | ) | Payments of debt issuance costs | (11,416) | 0 | 0 | ||||||||||||||||||||
Proceeds from issuance of common stock, net | 1,703 | — | — | Proceeds from issuance of common stock, net | 2,424 | 1,703 | 0 | |||||||||||||||||||||
Payments on term loans | (95,741 | ) | (12,510 | ) | (12,008 | ) | ||||||||||||||||||||||
Proceeds from term loans, net | — | — | 200,000 | |||||||||||||||||||||||||
Payments on Term Loan | Payments on Term Loan | (707,624) | (95,741) | (12,510) | ||||||||||||||||||||||||
Proceeds from Senior Secured Notes | Proceeds from Senior Secured Notes | 500,000 | 0 | 0 | ||||||||||||||||||||||||
Proceeds from revolver | 54,000 | — | 194,000 | Proceeds from revolver | 180,000 | 54,000 | 0 | |||||||||||||||||||||
Payments on revolver | (54,000 | ) | — | (293,000 | ) | Payments on revolver | (180,000) | (54,000) | 0 | |||||||||||||||||||
Payment pursuant to tax receivable agreement | (11,390 | ) | (30,407 | ) | — | |||||||||||||||||||||||
Payments pursuant to tax receivable agreement | Payments pursuant to tax receivable agreement | (13,145) | (11,390) | (30,407) | ||||||||||||||||||||||||
Other financing activities | (753 | ) | (534 | ) | (244 | ) | Other financing activities | (4,511) | (753) | (534) | ||||||||||||||||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (106,181 | ) | (43,451 | ) | 86,250 | |||||||||||||||||||||||
NET CASH USED IN FINANCING ACTIVITIES | NET CASH USED IN FINANCING ACTIVITIES | (234,272) | (106,181) | (43,451) | ||||||||||||||||||||||||
Effect of exchange rate changes on cash | 697 | (1,434 | ) | 1,949 | Effect of exchange rate changes on cash | 326 | 697 | (1,434) | ||||||||||||||||||||
Net change in cash and cash equivalents | (993 | ) | (68,741 | ) | 64,510 | Net change in cash and cash equivalents | (9,122) | (993) | (68,741) | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 35,793 | 104,534 | 40,024 | Cash and cash equivalents, beginning of period | 34,800 | 35,793 | 104,534 | |||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 34,800 | $ | 35,793 | $ | 104,534 | Cash and cash equivalents, end of period | $ | 25,678 | $ | 34,800 | $ | 35,793 | |||||||||||||||
(1) | each restricted stock unit that is solely subject to time-based vesting requirements granted under the Company Stock Plans that is outstanding immediately prior to the Effective Time shall fully vest and be converted into the right to receive an amount in cash (without interest and subject to applicable tax withholdings) equal to the product of (i) the Merger Consideration multiplied by (ii) the number of shares of Common Stock subject to such vested restricted stock unit; |
(2) | each restricted stock unit that is subject to performance-based vesting requirements granted under the Company Stock Plans that is outstanding immediately prior to the Effective Time shall immediately vest and be converted into the right to receive an amount in cash (without interest and subject to applicable tax withholdings) equal to the product of (i) the Merger Consideration multiplied by (ii) the number of shares subject to such vested restricted stock unit immediately prior to the Effective Time as determined in accordance with the Merger Agreement; |
(3) | each option to purchase shares of Common Stock granted under the Company Stock Plans that is outstanding immediately prior to the Effective Time shall fully vest, to the extent not vested previously, and be converted into the right to receive an amount in cash (without interest and subject to applicable tax withholdings) equal to the product of (i) the remainder, if positive, of (A) the Merger Consideration minus (B) the exercise price per share of Common Stock of such option multiplied by (ii) the number of shares of Common Stock subject to such vested option; and |
(4) | each Company Restricted Share that is outstanding immediately prior to the Effective Time shall immediately vest in full and be converted into the right to receive an amount in cash (without interest and subject to applicable tax withholdings) equal to the Merger Consideration. |
Net working capital | $ | 10,984 | |||
Property, plant and equipment | 9,221 | ||||
Customer relationship intangible | 2,100 | ||||
Non-compete agreement intangible | 5,600 | ||||
Other intangibles | 290 | ||||
Net identifiable assets acquired | 28,195 | ||||
Goodwill | 8,996 | ||||
Consideration transferred | $ | 37,191 |
Net working capital | $ | 10,984 | |
Property, plant and equipment | 9,221 | ||
Customer relationship intangible | 2,100 | ||
Non-compete agreement intangible | 5,600 | ||
Other intangibles | 290 | ||
Net identifiable assets acquired | 28,195 | ||
Goodwill | 8,996 | ||
Consideration transferred | $ | 37,191 |
2017 | ||||
Royal | ||||
Net working capital | $ | 2,994 | ||
Property, plant and equipment, net | 12,335 | |||
Customer relationship intangible | 1,676 | |||
Non-compete agreement intangible | 866 | |||
Trade names | 308 | |||
Customer backlog intangible | 63 | |||
Patents | 72 | |||
Other assets and liabilities | (726 | ) | ||
Net identifiable assets acquired | 17,588 | |||
Goodwill | 17,903 | |||
Cash consideration transferred | $ | 35,491 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Trade receivables | $ | 195,997 | $ | 178,698 | |||||||
Amounts billed, but not yet paid under retainage provisions | 4,022 | 3,093 | |||||||||
Other receivables | 29,026 | 26,078 | |||||||||
Total receivables | $ | 229,045 | $ | 207,869 | |||||||
Less: Allowance for doubtful accounts | (1,097) | (2,068) | |||||||||
Receivables, net | $ | 227,948 | $ | 205,801 |
December 31, | |||||||
2019 | 2018 | ||||||
Trade receivables | $ | 178,698 | $ | 188,999 | |||
Amounts billed, but not yet paid under retainage provisions | 3,093 | 2,065 | |||||
Other receivables | 26,078 | 9,545 | |||||
Total receivables | $ | 207,869 | $ | 200,609 | |||
Less: Allowance for doubtful accounts | (2,068 | ) | (2,141 | ) | |||
Receivables, net | $ | 205,801 | $ | 198,468 |
Allowance for doubtful accounts | ||||||||
Balance at December 31, 2018 | $ | (2,141) | ||||||
Provision for doubtful accounts | (387) | |||||||
Write-offs and adjustments | 460 | |||||||
Balance at December 31, 2019 | $ | (2,068) | ||||||
Recovery on doubtful accounts | 451 | |||||||
Write-offs and adjustments | 520 | |||||||
Balance at December 31, 2020 | $ | (1,097) |
Allowance for doubtful accounts | ||||
Balance at December 31, 2017 | $ | (4,033 | ) | |
Recovery on doubtful accounts | 1,224 | |||
Write-offs and adjustments | 668 | |||
Balance at December 31, 2018 | $ | (2,141 | ) | |
Provision for doubtful accounts | (387 | ) | ||
Write-offs and adjustments | 460 | |||
Balance at December 31, 2019 | $ | (2,068 | ) |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Finished goods | $ | 145,872 | $ | 161,440 | |||||||
Raw materials | 76,322 | 76,237 | |||||||||
Work in process | 734 | 806 | |||||||||
Total inventories | $ | 222,928 | $ | 238,483 |
December 31, | |||||||
2019 | 2018 | ||||||
Finished goods | $ | 161,440 | $ | 193,603 | |||
Raw materials | 76,237 | 90,376 | |||||
Work in process | 806 | 1,051 | |||||
Total inventories | $ | 238,483 | $ | 285,030 |
Year ended December 31, | Year ended December 31, | ||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2020 | 2019 | 2018 | ||||||||||||||||||||||
Distribution received from CP&P | $ | (11,039 | ) | $ | (13,141 | ) | (13,717 | ) | Distribution received from CP&P | $ | (13,039) | $ | (11,039) | (13,141) | |||||||||||||
Share of earnings in CP&P | 10,538 | 10,234 | 12,432 | Share of earnings in CP&P | 11,363 | 10,538 | 10,234 | ||||||||||||||||||||
Amortization of excess fair value of investment | (72 | ) | (72 | ) | (72 | ) | Amortization of excess fair value of investment | (72) | (72) | (72) |
Year ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net sales | $ | 157,499 | $ | 152,740 | $ | 140,494 | |||||||||||
Gross profit | 41,245 | 40,369 | 37,473 | ||||||||||||||
Income from operations | 23,172 | 21,720 | 20,570 | ||||||||||||||
Net income | 22,642 | 20,844 | 19,804 |
Year ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net sales | $ | 136,430 | $ | 125,744 | $ | 137,458 | |||||
Gross profit | 40,379 | 37,491 | 43,453 | ||||||||
Income from operations | 20,899 | 19,729 | 25,346 | ||||||||
Net income | 20,844 | 19,804 | 25,437 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Machinery and equipment | $ | 410,436 | $ | 398,127 | |||||||
Land, buildings and improvements | 234,251 | 240,403 | |||||||||
Other equipment | 12,633 | 8,660 | |||||||||
Construction-in-progress | 26,073 | 29,157 | |||||||||
Total property, plant and equipment | 683,393 | 676,347 | |||||||||
Less: accumulated depreciation | (232,311) | (200,772) | |||||||||
Property, plant and equipment, net | $ | 451,082 | $ | 475,575 |
December 31, | |||||||
2019 | 2018 | ||||||
Machinery and equipment | $ | 398,127 | $ | 373,881 | |||
Land, buildings and improvements | 240,403 | 235,819 | |||||
Other equipment | 8,660 | 6,962 | |||||
Construction-in-progress | 29,157 | 32,448 | |||||
Total property, plant and equipment | 676,347 | 649,110 | |||||
Less: accumulated depreciation | (200,772 | ) | (156,943 | ) | |||
Property, plant and equipment, net | $ | 475,575 | $ | 492,167 |
Drainage Pipe & Products | Water Pipe & Products | Total | ||||||||||||||||||||||||||
Balance at December 31, 2018 | Balance at December 31, 2018 | $ | 189,833 | $ | 318,360 | $ | 508,193 | |||||||||||||||||||||
Drainage Pipe & Products | Water Pipe & Products | Total | ||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 179,723 | $ | 316,418 | $ | 496,141 | ||||||||||||||||||||||
Acquisitions | 9,951 | — | 9,951 | |||||||||||||||||||||||||
Foreign currency and other adjustments | 159 | 1,942 | 2,101 | |||||||||||||||||||||||||
Balance at December 31, 2018 | 189,833 | 318,360 | 508,193 | |||||||||||||||||||||||||
Foreign currency and other adjustments | 633 | — | 633 | Foreign currency and other adjustments | 633 | 0 | 633 | |||||||||||||||||||||
Balance at December 31, 2019 | $ | 190,466 | $ | 318,360 | $ | 508,826 | Balance at December 31, 2019 | 190,466 | 318,360 | 508,826 | ||||||||||||||||||
Foreign currency and other adjustments | Foreign currency and other adjustments | 301 | 0 | 301 | ||||||||||||||||||||||||
Balance at December 31, 2020 | Balance at December 31, 2020 | $ | 190,767 | $ | 318,360 | $ | 509,127 |
Weighted average amortization period (in years) | Gross carrying amount as of December 31, 2019 | Accumulated amortization | Net carrying value as of December 31, 2019 | ||||||||||
Customer relationships | 10 | $ | 235,907 | $ | (135,038 | ) | $ | 100,869 | |||||
Trade names | 10 | 39,390 | (19,764 | ) | 19,626 | ||||||||
Patents | 11 | 23,629 | (15,956 | ) | 7,673 | ||||||||
Customer backlog | 0.8 | 13,209 | (13,209 | ) | — | ||||||||
Non-compete agreements | 5 | 17,090 | (9,020 | ) | 8,070 | ||||||||
Developed technology | 17 | 6,354 | (374 | ) | 5,980 | ||||||||
Other | 10 | 867 | (411 | ) | 456 | ||||||||
Total intangible assets | $ | 336,446 | $ | (193,772 | ) | $ | 142,674 |
Weighted average amortization period (in years) | Gross carrying amount as of December 31, 2020 | Accumulated amortization | Net carrying value as of December 31, 2020 | ||||||||||||||||||||
Customer relationships | 10 | $ | 235,907 | $ | (165,404) | $ | 70,503 | ||||||||||||||||
Trade names | 10 | 39,390 | (24,455) | 14,935 | |||||||||||||||||||
Patents | 11 | 23,629 | (18,600) | 5,029 | |||||||||||||||||||
Customer backlog | 0.8 | 13,211 | (13,211) | 0 | |||||||||||||||||||
Non-compete agreements | 5 | 17,172 | (12,210) | 4,962 | |||||||||||||||||||
Developed technology | 17 | 6,354 | (748) | 5,606 | |||||||||||||||||||
Other | 10 | 867 | (493) | 374 | |||||||||||||||||||
Total intangible assets | $ | 336,530 | $ | (235,121) | $ | 101,409 |
Weighted average amortization period (in years) | Gross carrying amount as of December 31, 2019 | Accumulated amortization | Net carrying value as of December 31, 2019 | ||||||||||||||||||||||||||
Customer relationships | 10 | $ | 235,907 | $ | (135,038) | $ | 100,869 | ||||||||||||||||||||||
Trade names | 10 | 39,390 | (19,764) | 19,626 | |||||||||||||||||||||||||
Patents | 11 | 23,629 | (15,956) | 7,673 | |||||||||||||||||||||||||
Customer backlog | 0.8 | 13,209 | (13,209) | 0 | |||||||||||||||||||||||||
Non-compete agreements | 5 | 17,090 | (9,020) | 8,070 | |||||||||||||||||||||||||
Developed technology | 17 | $ | 6,354 | $ | (374) | 5,980 | |||||||||||||||||||||||
Other | 10 | 867 | (411) | 456 | |||||||||||||||||||||||||
Total intangible assets | $ | 336,446 | $ | (193,772) | $ | 142,674 |
Weighted average amortization period (in years) | Gross carrying amount as of December 31, 2018 | Accumulated amortization | Net carrying value as of December 31, 2018 | ||||||||||
Customer relationships | 10 | $ | 231,056 | $ | (99,583 | ) | $ | 131,473 | |||||
Trade names | 10 | 39,390 | (14,867 | ) | 24,523 | ||||||||
Patents | 11 | 23,629 | (12,325 | ) | 11,304 | ||||||||
Customer backlog | 0.8 | 13,206 | (13,206 | ) | — | ||||||||
Non-compete agreements | 5 | 15,618 | (6,044 | ) | 9,574 | ||||||||
In-Process R&D (1) | Indefinite-lived | 6,354 | — | 6,354 | |||||||||
Other | 10 | 867 | (306 | ) | 561 | ||||||||
Total intangible assets | $ | 330,120 | $ | (146,331 | ) | $ | 183,789 |
Year ended | Intangible assets subject to amortization | |||||||
2021 | $ | 33,228 | ||||||
2022 | 23,992 | |||||||
2023 | 17,657 | |||||||
2024 | 12,742 | |||||||
2025 | 9,473 | |||||||
Total | $ | 97,092 |
Year ended | Intangible assets subject to amortization | |||
2020 | $ | 41,286 | ||
2021 | 33,221 | |||
2022 | 23,984 | |||
2023 | 17,651 | |||
2024 | 12,742 | |||
Total | $ | 128,884 |
Fair value measurements at December 31, 2020 using | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value December 31, 2020 | |||||||||||
Liabilities: | ||||||||||||||
Derivative liability | $ | 0 | $ | 572 | $ | 0 | $ | 572 | ||||||
Fair value measurements at December 31, 2019 using | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value December 31, 2019 | |||||||||||
Assets: | ||||||||||||||
Derivative asset | $ | 0 | $ | 258 | $ | 0 | $ | 258 | ||||||
Fair value measurements at December 31, 2019 using | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value December 31, 2018 | |||||||||
Recurring: | ||||||||||||
Non-current assets | ||||||||||||
Derivative asset | $ | — | $ | 258 | $ | — | $ | 258 | ||||
Fair value measurements at December 31, 2018 using | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value December 31, 2017 | |||||||||
Recurring: | ||||||||||||
Non-current assets | ||||||||||||
Derivative asset | $ | — | $ | 6,659 | $ | — | $ | 6,659 |
Fair value measurements at December 31, 2020 using | |||||||||||||||||
Carrying Amount December 31, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value December 31, 2020 | |||||||||||||
Non-current liabilities | |||||||||||||||||
Term Loan | $407,978 | 0 | $415,386 | 0 | $415,386 | ||||||||||||
Senior Secured Notes | 492,043 | 0 | $539,760 | 0 | 539,760 | ||||||||||||
Tax receivable agreement payable | 64,240 | 0 | 0 | 40,586 | 40,586 |
Fair value measurements at December 31, 2019 using | |||||||||||||||||
Carrying Amount December 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value December 31, 2019 | |||||||||||||
Non-current liabilities | |||||||||||||||||
Term Loan | $1,098,303 | 0 | $1,102,295 | 0 | $1,102,295 | ||||||||||||
Tax receivable agreement payable | 77,385 | 0 | 0 | 47,625 | 47,625 |
Fair value measurements at December 31, 2019 using | ||||||||||
Carrying Amount December 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value December 31, 2019 | ||||||
Non-current liabilities | ||||||||||
Term Loan | $1,098,303 | — | $1,102,295 | — | $1,102,295 | |||||
Tax receivable agreement payable | 77,385 | — | — | 47,625 | 47,625 |
Fair value measurements at December 31, 2018 using | ||||||||||
Carrying Amount December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value December 31, 2018 | ||||||
Non-current liabilities | ||||||||||
Term Loan | $1,188,605 | — | $1,103,628 | — | $1,103,628 | |||||
Tax receivable agreement payable | 88,775 | — | — | 51,832 | 51,832 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Accrued payroll and employee benefits | $ | 49,434 | $ | 32,815 | |||||||
Short-term capital leases | 17,009 | 16,542 | |||||||||
Short-term operating leases | 7,448 | 8,784 | |||||||||
Accrued taxes | 13,642 | 5,354 | |||||||||
Accrued rebates | 11,649 | 9,895 | |||||||||
Warranty | 7,069 | 5,536 | |||||||||
Short-term derivative liability | 333 | 0 | |||||||||
Environmental obligation | 63 | 718 | |||||||||
Other miscellaneous accrued liabilities | 9,046 | 9,195 | |||||||||
Total accrued liabilities | $ | 115,693 | $ | 88,839 |
December 31, | |||||||
2019 | 2018 | ||||||
Accrued payroll and employee benefits | $ | 32,815 | $ | 31,095 | |||
Short-term capital leases | 16,542 | 16,430 | |||||
Short-term operating leases | 8,784 | — | |||||
Accrued taxes | 5,354 | 11,489 | |||||
Accrued rebates | 9,895 | 3,542 | |||||
Warranty | 5,536 | 3,251 | |||||
Environmental obligation | 718 | 570 | |||||
Other miscellaneous accrued liabilities | 9,195 | 3,859 | |||||
Total accrued liabilities | $ | 88,839 | $ | 70,236 |
December 31, | December 31, | ||||||||||
2020 | 2019 | ||||||||||
Term Loan, net of debt issuance costs and original issuance discount of $6,889 and $25,055, respectively | $ | 407,978 | $ | 1,098,303 | |||||||
Senior Secured Notes, net of debt issuance costs and original issuance discount of $7,957 and $0, respectively | 492,043 | 0 | |||||||||
Total debt | $ | 900,021 | $ | 1,098,303 | |||||||
Less: current portion debt | (12,510) | (12,510) | |||||||||
Total long-term debt | $ | 887,511 | $ | 1,085,793 |
December 31, | December 31, | ||||||
2019 | 2018 | ||||||
Term Loan, net of debt issuance costs and original issuance discount of $25,055 and $34,252, respectively | $ | 1,098,303 | $ | 1,188,605 | |||
Total debt | $ | 1,098,303 | $ | 1,188,605 | |||
Less: current portion debt | (12,510 | ) | (12,510 | ) | |||
Total long-term debt | $ | 1,085,793 | $ | 1,176,095 |
Percentage | |||||
2022 | 103.250 | % | |||
2023 | 101.625 | % | |||
2024 and thereafter | 100.000 | % |
Term Loan | ||||
2020 | $ | 12,510 | ||
2021 | 12,510 | |||
2022 | 12,510 | |||
2023 | 1,085,828 | |||
$ | 1,123,358 |
Total | Term Loan | Notes | |||||||||||||||||||||
2021 | $ | 12,510 | $ | 12,510 | $ | 0 | |||||||||||||||||
2022 | 12,510 | 12,510 | 0 | ||||||||||||||||||||
2023 | 389,847 | 389,847 | 0 | ||||||||||||||||||||
2024 | 0 | 0 | 0 | ||||||||||||||||||||
2025 | 500,000 | 0 | 500,000 | ||||||||||||||||||||
$ | 914,867 | $ | 414,867 | $ | 500,000 |
December 31, | December 31, | |||||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||||
Workers' compensation | $ | 9,023 | $ | 9,837 | Workers' compensation | $ | 12,417 | $ | 12,039 | |||||||||
Deferred rent | — | 4,259 | ||||||||||||||||
Legal | Legal | 6,758 | 4,115 | |||||||||||||||
Social Security Deferral | Social Security Deferral | 5,521 | 0 | |||||||||||||||
Long term bonus incentive plan | Long term bonus incentive plan | 5,110 | 0 | |||||||||||||||
Employee benefits | 2,945 | 3,307 | Employee benefits | 3,322 | 2,945 | |||||||||||||
Insurance | 1,345 | 1,550 | ||||||||||||||||
Environmental remediation liability | 872 | 1,001 | Environmental remediation liability | 1,535 | 872 | |||||||||||||
Other miscellaneous long-term liabilities | 7,721 | 2,713 | Other miscellaneous long-term liabilities | 2,255 | 1,935 | |||||||||||||
$ | 21,906 | $ | 22,667 | $ | 36,918 | $ | 21,906 |
December 31, 2020 | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||||||
Interest rate swaps | $ | 0 | $ | 0 | $ | 400,000 | $ | 572 | |||||||||||||||
Total derivatives, gross | 0 | 572 | |||||||||||||||||||||
Less: Legally enforceable master netting agreements | 0 | 0 | |||||||||||||||||||||
Total derivatives, net | $ | 0 | $ | 572 |
December 31, 2019 | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||||||
Interest rate swaps | $ | 525,000 | $ | 258 | $ | 0 | $ | 0 | |||||||||||||||
Total derivatives, gross | 258 | 0 | |||||||||||||||||||||
Less: Legally enforceable master netting agreements | 0 | 0 | |||||||||||||||||||||
Total derivatives, net | $ | 258 | $ | 0 |
December 31, 2019 | |||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||
Interest rate swaps | $ | 525,000 | $ | 258 | $ | — | $ | — | |||||||
Total derivatives, gross | 258 | — | |||||||||||||
Less: Legally enforceable master netting agreements | — | — | |||||||||||||
Total derivatives, net | $ | 258 | $ | — |
December 31, 2018 | |||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||
Interest rate swaps | $ | 525,000 | $ | 6,659 | $ | — | $ | — | |||||||
Total derivatives, gross | 6,659 | — | |||||||||||||
Less: Legally enforceable master netting agreements | — | — | |||||||||||||
Total derivatives, net | $ | 6,659 | $ | — |
Year ended December 31, | Year ended December 31, | ||||||||||
2020 | 2019 | ||||||||||
Derivatives not designated as hedges | |||||||||||
Interest rate swaps | |||||||||||
Loss on derivatives not designated as hedges included in interest expense | (830) | (6,401) | |||||||||
Year ended December 31, | Year ended December 31, | |||||
2019 | 2018 | |||||
Net investment hedges | ||||||
Foreign exchange forward contracts | ||||||
Gain on derivatives recognized in Accumulated other comprehensive loss | $ | — | $ | 970 | ||
Derivatives not designated as hedges | ||||||
Interest rate swaps | ||||||
Gain (loss) on derivatives not designated as hedges included in interest expense | (6,401 | ) | 1,408 |
Lease cost | Classification | Year ended December 31, 2020 | Year ended December 31, 2019 | ||||||||||||||
Operating lease cost | Lease expense | $ | 15,613 | $ | 16,464 | ||||||||||||
Finance lease cost | |||||||||||||||||
Amortization of leased assets | Depreciation, amortization, and accretion | 2,259 | 2,276 | ||||||||||||||
Interest on lease liabilities | Interest expense | 18,954 | 18,528 |
Lease term and discount rate | December 31, 2020 | December 31, 2019 | ||||||||||||
Weighted-average remaining lease term (years) | ||||||||||||||
Operating leases | 15.7 years | 15.5 years | ||||||||||||
Finance leases | 31.7 years | 33.1 years | ||||||||||||
Weighted-average discount rate (%) | ||||||||||||||
Operating leases | 12.6 | % | 12.6 | % | ||||||||||
Finance leases | 12.3 | % | 12.3 | % |
Year ended December 31, 2020 | Year ended December 31, 2019 | |||||||||||||
Cash paid for amounts included in lease liabilities | ||||||||||||||
Operating cash flows related to operating leases | $ | 14,515 | $ | 14,945 | ||||||||||
Operating cash flows related to finance leases | 16,621 | 16,090 | ||||||||||||
Financing cash flows related to finance leases | 805 | 583 | ||||||||||||
Leased assets obtained in exchange for new finance lease liabilities | 3,456 | 180 | ||||||||||||
Leased assets obtained in exchange for new operating lease liabilities | 2,032 | 4,925 |
Lease cost | Classification | Year ended December 31, 2019 | |||
Operating lease cost | Lease expense | $ | 16,464 | ||
Finance lease cost | |||||
Amortization of leased assets | Depreciation, amortization, and accretion | 2,276 | |||
Interest on lease liabilities | Interest expense | 18,528 |
Year ended December 31, 2019 | ||||
Cash paid for amounts included in lease liabilities | ||||
Operating cash flows related to operating leases | $ | 14,945 | ||
Operating cash flows related to finance leases | 16,090 | |||
Financing cash flows related to finance leases | 583 | |||
Leased assets obtained in exchange for new finance lease liabilities | 180 | |||
Leased assets obtained in exchange for new operating lease liabilities | 4,925 |
Classification | December 31, 2020 | December 31, 2019 | ||||||||||||||||||
Operating leases | ||||||||||||||||||||
Right of use assets | Operating lease right-of-use assets | $ | 54,379 | $ | 60,253 | |||||||||||||||
Operating lease liabilities - current portion | Accrued liabilities | (7,448) | (8,784) | |||||||||||||||||
Operating lease liabilities - long term portion | Long-term operating lease liabilities | (50,943) | (54,411) | |||||||||||||||||
Finance leases | ||||||||||||||||||||
Finance lease assets | Property, plant and equipment, net | 51,360 | 49,999 | |||||||||||||||||
Finance lease liabilities - current portion | Accrued liabilities | (17,009) | (16,542) | |||||||||||||||||
Finance lease liabilities - long term portion | Long-term finance lease liabilities | (142,195) | (137,365) |
Classification | December 31, 2019 | |||||
Operating leases | ||||||
Right of use assets | Operating lease right-of-use assets | $ | 60,253 | |||
Operating lease liabilities - current portion | Accrued liabilities | (8,784 | ) | |||
Operating lease liabilities - long term portion | Long-term operating lease liabilities | (54,411 | ) | |||
Finance leases | ||||||
Finance lease assets | Property, plant and equipment, net | 49,999 | ||||
Finance lease liabilities - current portion | Accrued liabilities | (16,542 | ) | |||
Finance lease liabilities - long term portion | Long-term finance lease liabilities | (137,365 | ) |
Operating leases | Finance leases | Total | |||||||||||||||
2021 | $ | 11,889 | $ | 18,024 | $ | 29,913 | |||||||||||
2022 | 10,949 | 18,239 | 29,188 | ||||||||||||||
2023 | 10,689 | 18,366 | 29,055 | ||||||||||||||
2024 | 9,836 | 18,599 | 28,435 | ||||||||||||||
2025 | 9,446 | 18,803 | 28,249 | ||||||||||||||
Thereafter | 100,230 | 634,968 | 735,198 | ||||||||||||||
Total lease payments | 153,039 | 726,999 | 880,038 | ||||||||||||||
Less: imputed interest | (94,648) | (567,795) | (662,443) | ||||||||||||||
Present value of lease liabilities | $ | 58,391 | $ | 159,204 | $ | 217,595 |
Operating leases | Finance leases | Total | |||||||||
2020 | $ | 13,766 | $ | 16,894 | $ | 30,660 | |||||
2021 | 11,371 | 17,049 | 28,420 | ||||||||
2022 | 10,500 | 17,300 | 27,800 | ||||||||
2023 | 10,247 | 17,516 | 27,763 | ||||||||
2024 | 9,561 | 17,841 | 27,402 | ||||||||
Thereafter | 109,610 | 652,367 | 761,977 | ||||||||
Total lease payments | 165,055 | 738,967 | 904,022 | ||||||||
Less: imputed interest | (101,860 | ) | (585,060 | ) | (686,920 | ) | |||||
Present value of lease liabilities | $ | 63,195 | $ | 153,907 | $ | 217,102 |
Year ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Net income (loss) | $ | 64,486 | $ | (7,331) | $ | (24,365) | ||||||||||||||
Earnings allocated to unvested restricted stock | 40 | 0 | 0 | |||||||||||||||||
Earnings (loss) allocated to common shareholders | $ | 64,446 | $ | (7,331) | $ | (24,365) | ||||||||||||||
Common stock: | ||||||||||||||||||||
Weighted average basic shares outstanding | 65,260 | 64,232 | 63,904 | |||||||||||||||||
Effect of dilutive securities | 2,943 | 0 | 0 | |||||||||||||||||
Weighted average diluted shares outstanding | 68,203 | 64,232 | 63,904 | |||||||||||||||||
Basic earnings (loss) per share: | ||||||||||||||||||||
Net income (loss) | $ | 0.99 | $ | (0.11) | $ | (0.38) | ||||||||||||||
Diluted earnings (loss) per share: | ||||||||||||||||||||
Net income (loss) | $ | 0.94 | $ | (0.11) | $ | (0.38) |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Net loss | $ | (7,331 | ) | $ | (24,365 | ) | $ | (2,060 | ) | |||
Common stock: | ||||||||||||
Weighted average basic shares outstanding | 64,232 | 63,904 | 63,801 | |||||||||
Effect of dilutive securities - stock options | — | — | — | |||||||||
Weighted average diluted shares outstanding | 64,232 | 63,904 | 63,801 | |||||||||
Basic and Diluted earnings (loss) per share: | ||||||||||||
Net income (loss) | $ | (0.11 | ) | $ | (0.38 | ) | $ | (0.03 | ) |
2020 | 2019 | 2018 | ||||||||||||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | ||||||||||||||
Expected volatility | 67.00 | % | 32.08 | % | 32.90 | % | ||||||||||||||
Risk-free interest rate | 1.63 | % | 2.43 | % | 1.71 | % | ||||||||||||||
Expected lives in years | 6 | 6 | 6 | |||||||||||||||||
Weighted-average fair value of options: | ||||||||||||||||||||
Granted at fair value | $ | 8.90 | $ | 1.54 | $ | 2.76 | ||||||||||||||
Weighted-average exercise price of options: | ||||||||||||||||||||
Granted at fair value | $ | 14.63 | $ | 4.29 | $ | 7.92 |
2019 | 2018 | 2017 | ||||||||||
Expected dividends | — | % | — | % | — | % | ||||||
Expected volatility | 32.08 | % | 32.90 | % | 39.60 | % | ||||||
Risk-free interest rate | 2.43 | % | 1.71 | % | 0.86 | % | ||||||
Expected lives in years | 6 | 6 | 6 | |||||||||
Weighted-average fair value of options: | ||||||||||||
Granted at fair value | $ | 1.54 | $ | 2.76 | $ | 4.16 | ||||||
Weighted-average exercise price of options: | ||||||||||||
Granted at fair value | $ | 4.29 | $ | 7.92 | $ | 10.76 |
Shares | Weighted Average Exercise Price | ||||||||||
(in thousands) | |||||||||||
Outstanding, December 31, 2018 | 3,101,419 | $9.19 | |||||||||
Granted | 2,771,930 | $4.29 | |||||||||
Exercised | (224,266) | $7.60 | |||||||||
Forfeited | (1,975,987) | $7.50 | |||||||||
Outstanding, December 31, 2019 | 3,673,096 | $6.50 | |||||||||
Granted | 2,248 | $14.63 | |||||||||
Exercised | (366,814) | $6.61 | |||||||||
Forfeited | (231,360) | $7.82 | |||||||||
Outstanding, December 31, 2020 | 3,077,170 | $6.39 | |||||||||
Options vested or expected to vest at year end | 3,077,170 | $6.39 | |||||||||
Options exercisable at year end | 1,764,420 | $7.23 |
Shares | Weighted Average Exercise Price | |||
(in thousands) | ||||
Outstanding, December 31, 2017 | 1,254,429 | $12.31 | ||
Granted | 2,189,216 | $7.92 | ||
Exercised | — | n/a | ||
Forfeited | (342,226 | ) | $12.53 | |
Outstanding, December 31, 2018 | 3,101,419 | $9.19 | ||
Granted | 2,771,930 | $4.29 | ||
Exercised | (224,266 | ) | $7.60 | |
Forfeited | (1,975,987 | ) | $7.50 | |
Outstanding, December 31, 2019 | 3,673,096 | $6.50 | ||
Options vested or expected to vest at year end | 3,673,096 | $6.50 | ||
Options exercisable at year end | 927,863 | $8.81 |
Shares | Weighted Average Grant Date Fair Value | ||||||||||
(in thousands) | |||||||||||
Unvested balance at December 31, 2018 | 744,363 | $9.68 | |||||||||
Grants | 2,562,250 | $4.58 | |||||||||
Vested shares | (508,799) | $7.74 | |||||||||
Forfeitures | (640,172) | $6.21 | |||||||||
Unvested balance at December 31, 2019 | 2,157,642 | $5.11 | |||||||||
Grants | 792,090 | $8.87 | |||||||||
Vested shares | (1,201,617) | $8.91 | |||||||||
Forfeitures | (156,237) | $7.06 | |||||||||
Unvested balance at December 31, 2020 | 1,591,878 | $6.60 |
Shares | Weighted Average Grant Date Fair Value | |||
(in thousands) | ||||
Unvested balance at December 31, 2017 | 441,350 | $13.60 | ||
Grants | 542,979 | $7.98 | ||
Vested shares | (155,260 | ) | $13.11 | |
Forfeitures | (84,706 | ) | $12.98 | |
Unvested balance at December 31, 2018 | 744,363 | $9.68 | ||
Grants | 2,562,250 | $4.58 | ||
Vested shares | (508,799 | ) | $7.74 | |
Forfeitures | (640,172 | ) | $6.21 | |
Unvested balance at December 31, 2019 | 2,157,642 | $5.11 |
Year ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||
2020 | 2019 | 2018 | |||||||||
U.S. companies | $ | 61,146 | $ | (21,557) | $ | (36,317) | |||||
Foreign companies | 11,800 | 10,947 | 15,037 | ||||||||
Income (loss) from continuing operations before income taxes | $ | 72,946 | $ | (10,610) | $ | (21,280) |
Year ended December 31, | Year ended December 31, | Year ended December 31, | |||||||
2019 | 2018 | 2017 | |||||||
U.S. companies | $ | (21,557 | ) | $ | (36,317 | ) | $ | (54,690 | ) |
Foreign companies | 10,947 | 15,037 | 11,958 | ||||||
Loss from continuing operations before income taxes | $ | (10,610 | ) | $ | (21,280 | ) | $ | (42,732 | ) |
Year ended December 31, | Year ended December 31, | Year ended December 31, | |||||||
2019 | 2018 | 2017 | |||||||
Current income tax | |||||||||
U.S. companies | $ | (9,510 | ) | $ | (13,225 | ) | $ | 21,539 | |
State | (4,260 | ) | (5,779 | ) | (1,479 | ) | |||
Foreign companies | (3,018 | ) | (4,849 | ) | (4,884 | ) | |||
Total current tax (expense) benefit | (16,788 | ) | (23,853 | ) | 15,176 | ||||
Deferred income tax | |||||||||
U.S. companies | 16,180 | 17,273 | 26,866 | ||||||
State | 4,232 | 3,306 | (1,658 | ) | |||||
Foreign companies | (345 | ) | 189 | 288 | |||||
Total deferred tax benefit | 20,067 | 20,768 | 25,496 | ||||||
Income tax (expense) benefit | $ | 3,279 | $ | (3,085 | ) | $ | 40,672 |
Year ended December 31, | |||||||||||
2020 | 2019 | 2018 | |||||||||
Current income tax | |||||||||||
U.S. companies | $ | (16,203) | $ | (9,510) | $ | (13,225) | |||||
State | (6,802) | (4,260) | (5,779) | ||||||||
Foreign companies | (4,694) | (3,018) | (4,849) | ||||||||
Total current tax expense | (27,699) | (16,788) | (23,853) | ||||||||
Deferred income tax | |||||||||||
U.S. companies | 922 | 16,180 | 17,273 | ||||||||
State | 15,506 | 4,232 | 3,306 | ||||||||
Foreign companies | 2,811 | (345) | 189 | ||||||||
Total deferred tax benefit | 19,239 | 20,067 | 20,768 | ||||||||
Income tax (expense) benefit | $ | (8,460) | $ | 3,279 | $ | (3,085) |
Year ended December 31, | |||||||||||
2020 | 2019 | 2018 | |||||||||
Income (loss) from continuing operations | $ | 72,946 | $ | (10,610) | $ | (21,280) | |||||
Income tax (expense) benefit at statutory rate of 21% | $ | (15,319) | $ | 2,228 | $ | 4,469 | |||||
State income taxes, net of federal (expense) benefit | (3,449) | 113 | 1,494 | ||||||||
Tax effect of equity and non-deductible executive compensation | (1,682) | (1,507) | (439) | ||||||||
Meals and entertainment and other non-deductible expenses | (516) | (763) | (452) | ||||||||
Change in valuation allowance | 11,839 | 1,927 | (6,601) | ||||||||
Other prior year adjustments | 968 | 1,311 | 571 | ||||||||
Divestiture of assets | 0 | 0 | (1,559) | ||||||||
Other | (301) | (30) | (568) | ||||||||
Total income tax (expense) benefit | $ | (8,460) | $ | 3,279 | $ | (3,085) |
Year ended December 31, | Year ended December 31, | Year ended December 31, | |||||||
2019 | 2018 | 2017 | |||||||
Loss from continuing operations | $ | (10,610 | ) | $ | (21,280 | ) | $ | (42,732 | ) |
Income tax benefit at statutory rate of 21% and 35% | $ | 2,228 | $ | 4,469 | $ | 14,956 | |||
State income taxes, net of federal benefit | 113 | 1,494 | 1,470 | ||||||
Foreign rate differential | (361 | ) | (568 | ) | 1,586 | ||||
Non-deductible executive compensation | (1,011 | ) | (129 | ) | — | ||||
Tax effect of equity compensation | (496 | ) | (310 | ) | (13 | ) | |||
M&E and other non-deductible expenses | (763 | ) | (452 | ) | (1,220 | ) | |||
Change in valuation allowance | 1,927 | (6,601 | ) | (4,141 | ) | ||||
Divestiture of assets | — | (1,559 | ) | — | |||||
Goodwill impairment | — | — | (1,147 | ) | |||||
Effect of TCJA | — | — | 26,932 | ||||||
Net US tax cost on foreign income | (221 | ) | (390 | ) | — | ||||
Tax credits | 552 | 390 | 497 | ||||||
Other prior year adjustments | 1,311 | 571 | 1,752 | ||||||
Total income tax benefit (expense) | $ | 3,279 | $ | (3,085 | ) | $ | 40,672 |
December 31, 2020 | December 31, 2019 | |||||||
Deferred tax assets: | ||||||||
Inventory | $ | 6,670 | $ | 6,891 | ||||
Reserves | 7,419 | 4,112 | ||||||
Accrued liabilities | 8,034 | 4,656 | ||||||
Net operating losses | 3,909 | 2,964 | ||||||
Capitalized transaction costs | 3,513 | 3,599 | ||||||
Finance leases | 53,794 | 55,063 | ||||||
Interest expense limitation | 160 | 6,566 | ||||||
Tax receivable agreement | 1,618 | 1,655 | ||||||
Other assets | 3,609 | 4,687 | ||||||
Total deferred tax assets | 88,726 | 90,193 | ||||||
Valuation allowance | (1,675) | (13,555) | ||||||
Total deferred tax assets, net | $ | 87,051 | $ | 76,638 | ||||
Deferred tax liabilities: | ||||||||
Fixed assets | $ | (53,386) | $ | (53,156) | ||||
Lease assets | (23,742) | (25,378) | ||||||
Intangible assets | (13,931) | (20,221) | ||||||
Other liabilities | (5,663) | (6,812) | ||||||
Total deferred tax liabilities | $ | (96,722) | $ | (105,567) | ||||
Net deferred tax asset (liability) | $ | (9,671) | $ | (28,929) |
December 31, 2019 | December 31, 2018 | |||||
Deferred tax assets: | ||||||
Inventory | $ | 6,891 | $ | 6,424 | ||
Reserves | 4,112 | 2,263 | ||||
Accrued liabilities | 4,656 | 4,347 | ||||
Net operating losses | 2,964 | 3,243 | ||||
Capitalized transaction costs | 3,599 | 3,407 | ||||
Finance leases | 55,063 | 39,512 | ||||
Deferred gain on sale-leaseback | — | 2,521 | ||||
Interest expense limitation | 6,566 | 2,780 | ||||
Tax receivable agreement | 1,655 | 1,645 | ||||
Other assets | 4,687 | 1,110 | ||||
Total deferred tax assets | 90,193 | 67,252 | ||||
Valuation allowance | (13,555 | ) | (15,427 | ) | ||
Total deferred tax assets, net | $ | 76,638 | $ | 51,825 | ||
Deferred tax liabilities: | ||||||
Fixed assets | $ | (53,156 | ) | $ | (50,686 | ) |
Lease assets | (25,378 | ) | (11,543 | ) | ||
Deferred financing costs | (6,812 | ) | (8,631 | ) | ||
Intangible assets | (20,221 | ) | (27,580 | ) | ||
Total deferred tax liabilities | $ | (105,567 | ) | $ | (98,440 | ) |
Net deferred tax asset (liability) | $ | (28,929 | ) | $ | (46,615 | ) |
Amount | Expiration Date | |||||||
Federal net operating losses | $ | 0 | — | |||||
State net operating losses | $ | 28,338 | 2022-2040 | |||||
Foreign net operating losses | $ | 9,436 | 2031-2040 |
Amount | Expiration Date | |||
Federal net operating losses | $ | — | — | |
State net operating losses | $ | 29,048 | 2021-2039 | |
Foreign net operating losses | $ | 5,848 | 2036-2039 |
Year ended December 31, | Year ended December 31, | Year ended December 31, | Year ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Net sales: | Net sales: | |||||||||||||||||||||||||||
Drainage Pipe & Products | $ | 894,722 | $ | 811,477 | $ | 834,810 | Drainage Pipe & Products | $ | 887,420 | $ | 913,033 | $ | 839,689 | |||||||||||||||
Water Pipe & Products | 635,030 | 668,235 | 745,555 | Water Pipe & Products | 707,086 | 616,719 | 640,023 | |||||||||||||||||||||
Corporate and Other | — | — | 48 | Corporate and Other | 0 | 0 | 0 | |||||||||||||||||||||
Total | $ | 1,529,752 | $ | 1,479,712 | $ | 1,580,413 | Total | $ | 1,594,506 | $ | 1,529,752 | $ | 1,479,712 | |||||||||||||||
Depreciation and amortization: | Depreciation and amortization: | |||||||||||||||||||||||||||
Drainage Pipe & Products | $ | 37,331 | $ | 41,495 | $ | 45,750 | Drainage Pipe & Products | $ | 33,420 | $ | 38,260 | $ | 42,866 | |||||||||||||||
Water Pipe & Products | 58,476 | 62,917 | 69,089 | Water Pipe & Products | 53,885 | 57,547 | 61,546 | |||||||||||||||||||||
Corporate and Other | 1,451 | 1,011 | 820 | Corporate and Other | 2,191 | 1,451 | 1,011 | |||||||||||||||||||||
Total | $ | 97,258 | $ | 105,423 | $ | 115,659 | Total | $ | 89,496 | $ | 97,258 | $ | 105,423 | |||||||||||||||
Segment EBITDA and reconciliation to income (loss) before income taxes: | Segment EBITDA and reconciliation to income (loss) before income taxes: | |||||||||||||||||||||||||||
Drainage Pipe & Products | $ | 171,413 | $ | 156,735 | $ | 129,618 | Drainage Pipe & Products | $ | 187,547 | $ | 173,006 | $ | 160,295 | |||||||||||||||
Water Pipe & Products | 84,424 | 64,547 | 47,587 | Water Pipe & Products | 145,451 | 82,831 | 60,987 | |||||||||||||||||||||
Corporate and Other | (74,219 | ) | (58,802 | ) | (44,870 | ) | Corporate and Other | (90,666) | (74,219) | (58,802) | ||||||||||||||||||
Less: Interest expense | (94,970 | ) | (78,337 | ) | (59,408 | ) | Less: Interest expense | (79,890) | (94,970) | (78,337) | ||||||||||||||||||
Depreciation and amortization | (97,258 | ) | (105,423 | ) | (115,659 | ) | Depreciation and amortization | (89,496) | (97,258) | (105,423) | ||||||||||||||||||
Loss before income taxes | $ | (10,610 | ) | $ | (21,280 | ) | $ | (42,732 | ) | Loss before income taxes | $ | 72,946 | $ | (10,610) | $ | (21,280) | ||||||||||||
Capital expenditures: | Capital expenditures: | |||||||||||||||||||||||||||
Drainage Pipe & Products | $ | 23,096 | $ | 27,761 | Drainage Pipe & Products | $ | 17,066 | $ | 23,096 | |||||||||||||||||||
Water Pipe & Products | 14,246 | 18,529 | Water Pipe & Products | 19,500 | 14,246 | |||||||||||||||||||||||
Corporate and Other | 2,531 | 2,391 | Corporate and Other | 1,039 | 2,531 | |||||||||||||||||||||||
Total | $ | 39,873 | $ | 48,681 | Total | $ | 37,605 | $ | 39,873 | |||||||||||||||||||
Total assets: | Total assets: | |||||||||||||||||||||||||||
Drainage Pipe & Products | $ | 819,373 | $ | 800,454 | Drainage Pipe & Products | $ | 819,046 | $ | 857,880 | |||||||||||||||||||
Water Pipe & Products | 862,542 | 922,162 | Water Pipe & Products | 795,292 | 824,035 | |||||||||||||||||||||||
Corporate and Other | 58,143 | 70,636 | Corporate and Other | 41,474 | 58,143 | |||||||||||||||||||||||
Total | $ | 1,740,058 | $ | 1,793,252 | Total | $ | 1,655,812 | $ | 1,740,058 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Investment in equity method investee | $ | 48,285 | $ | 50,034 |
December 31, | |||||||
2019 | 2018 | ||||||
Investment in equity method investee | $ | 50,034 | $ | 50,607 |
Property, plant, and equipment, net: | December 31, | Property, plant, and equipment, net: | December 31, | |||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||||
United States | $ | 422,486 | $ | 441,773 | United States | $ | 409,338 | $ | 422,486 | |||||||||
Canada | 43,754 | 40,331 | Canada | 33,250 | 43,754 | |||||||||||||
Mexico | 9,335 | 10,063 | Mexico | 8,494 | 9,335 | |||||||||||||
$ | 475,575 | $ | 492,167 | $ | 451,082 | $ | 475,575 |
Net Sales: | Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
United States | $ | 1,513,925 | $ | 1,448,492 | $ | 1,389,115 | |||||||||||
Canada | 71,906 | 73,270 | 80,868 | ||||||||||||||
Mexico | 8,675 | 7,990 | 9,729 | ||||||||||||||
$ | 1,594,506 | $ | 1,529,752 | $ | 1,479,712 |
Net Sales: | Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||
2019 | 2018 | 2017 | |||||||||
United States | $ | 1,448,492 | $ | 1,389,115 | $ | 1,485,092 | |||||
Canada | 73,270 | 80,868 | 82,529 | ||||||||
Mexico | 7,990 | 9,729 | 12,792 | ||||||||
$ | 1,529,752 | $ | 1,479,712 | $ | 1,580,413 |
Year ended December 31, 2020: | ||||||||||||||||||||||||||
(in thousands, except per share amounts) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||
Net sales | $ | 330,876 | $ | 426,186 | $ | 457,557 | $ | 379,887 | ||||||||||||||||||
Cost of goods sold | 272,134 | 320,607 | 331,284 | 293,808 | ||||||||||||||||||||||
Gross profit | 58,742 | 105,579 | 126,273 | 86,079 | ||||||||||||||||||||||
Income (loss) from continuing operations before taxes | (13,988) | 34,570 | 38,751 | 13,613 | ||||||||||||||||||||||
Net income (loss) | (14,066) | 27,115 | 28,827 | 22,610 | ||||||||||||||||||||||
Basic earnings (loss) per share: | ||||||||||||||||||||||||||
Net income (loss) | $ | (0.22) | $ | 0.42 | $ | 0.44 | $ | 0.34 | ||||||||||||||||||
Diluted earnings (loss) per share: | ||||||||||||||||||||||||||
Net income (loss) | $ | (0.22) | $ | 0.40 | $ | 0.42 | $ | 0.33 |
Year ended December 31, 2019: | ||||||||||||||||||||||||||
(in thousands, except per share amounts) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||
Net sales | $ | 291,858 | $ | 410,219 | $ | 464,526 | $ | 363,149 | ||||||||||||||||||
Cost of goods sold | 250,053 | 324,405 | 362,362 | 296,550 | ||||||||||||||||||||||
Gross profit | 41,805 | 85,814 | 102,164 | 66,599 | ||||||||||||||||||||||
Income (loss) from continuing operations before taxes | (32,336) | 3,835 | 28,327 | (10,436) | ||||||||||||||||||||||
Net income (loss) | (25,039) | 2,954 | 22,430 | (7,676) | ||||||||||||||||||||||
Basic earnings (loss) per share: | ||||||||||||||||||||||||||
Net income (loss) | $ | (0.39) | $ | 0.05 | $ | 0.35 | $ | (0.12) | ||||||||||||||||||
Diluted earnings (loss) per share: | ||||||||||||||||||||||||||
Net income (loss) | $ | (0.39) | $ | 0.05 | $ | 0.34 | $ | (0.12) |
Year ended December 31, 2019: | ||||||||||||||||
(in thousands, except per share amounts) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Net sales | $ | 291,858 | $ | 410,219 | $ | 464,526 | $ | 363,149 | ||||||||
Cost of goods sold | 250,053 | 324,405 | 362,362 | 296,550 | ||||||||||||
Gross profit | 41,805 | 85,814 | 102,164 | 66,599 | ||||||||||||
Income (loss) from continuing operations before taxes | (32,336 | ) | 3,835 | 28,327 | (10,436 | ) | ||||||||||
Net income (loss) | (25,039 | ) | 2,954 | 22,430 | (7,676 | ) | ||||||||||
Basic earnings (loss) per share: | ||||||||||||||||
Net income (loss) | $ | (0.39 | ) | $ | 0.05 | $ | 0.35 | $ | (0.12 | ) | ||||||
Diluted earnings (loss) per share: | ||||||||||||||||
Net income (loss) | $ | (0.39 | ) | $ | 0.05 | $ | 0.34 | $ | (0.12 | ) |
Year ended December 31, 2018: | ||||||||||||||||
(in thousands, except per share amounts) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Net sales | $ | 289,960 | $ | 416,087 | $ | 434,510 | $ | 339,155 | ||||||||
Cost of goods sold | 255,595 | 340,774 | 357,374 | 280,400 | ||||||||||||
Gross profit | 34,365 | 75,313 | 77,136 | 58,755 | ||||||||||||
Income (loss) from continuing operations before taxes | (23,595 | ) | 14,237 | 8,296 | (20,218 | ) | ||||||||||
Net income (loss) | (19,910 | ) | 6,994 | 5,503 | (16,952 | ) | ||||||||||
Basic earnings (loss) per share: | ||||||||||||||||
Net income (loss) | $ | (0.31 | ) | $ | 0.11 | $ | 0.09 | $ | (0.27 | ) | ||||||
Diluted earnings (loss) per share: | ||||||||||||||||
Net income (loss) | $ | (0.31 | ) | $ | 0.11 | $ | 0.09 | $ | (0.27 | ) |
(in thousands) | Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
SUPPLEMENTAL DISCLOSURES: | |||||||||||||||||
Cash interest paid | $ | 53,175 | $ | 77,086 | $ | 69,381 | |||||||||||
Income taxes paid, net of refunds received | 16,472 | 12,343 | 11,068 | ||||||||||||||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING DISCLOSURES: | |||||||||||||||||
Assets and liabilities acquired in non-cash exchange | 0 | 0 | 18,140 | ||||||||||||||
Capital lease obligation resulting from the sale-leaseback exchange transaction | 0 | 0 | (148,962) | ||||||||||||||
Fair value changes of derivatives recorded in OCI, net of tax | 0 | 0 | 970 |
Year ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||
2019 | 2018 | 2017 | |||||||||
SUPPLEMENTAL DISCLOSURES (in thousands): | |||||||||||
Cash interest paid | $ | 77,086 | $ | 69,381 | $ | 54,676 | |||||
Income taxes paid, net of refunds received | 12,343 | 11,068 | 28,086 | ||||||||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING DISCLOSURES: | |||||||||||
Assets and liabilities acquired in non-cash exchange | — | 18,140 | — | ||||||||
Capital lease obligation resulting from the sale-leaseback exchange transaction | — | (148,962 | ) | — | |||||||
Fair value changes of derivatives recorded in OCI, net of tax | — | 970 | (3,548 | ) |
Fees Earned or Paid in Cash | Stock Awards (1) | All Other Compensation | Total | |||||||||||
Clint McDonnough | $ | 102,500 | $ | 100,002 | — | $ | 202,502 | |||||||
John McPherson | $ | 45,000 | $ | 454,368 | — | $ | 499,368 | |||||||
Jacques Sarrazin | $ | 82,500 | $ | 100,002 | — | $ | 182,502 |
NEO | 2018 Annual Base Salary (as of year-end) | 2019 Annual Base Salary(1) | ||
Karl H. Watson, Jr.(2) | not applicable | $875,000 | ||
Charlie Brown | $500,000 | $515,000 | ||
Richard Hunter | $365,000 | $450,000 | ||
Vikrant Bhatia | $375,000 | $425,000 | ||
Lori Browne | $375,000 | $386,250 | ||
Jeff Bradley(3) | $825,000 | $849,750 |
NEO | Target Bonus (as a percentage of annual base salary) | Potential Bonus (as a percentage of annual base salary) | ||
Karl H. Watson, Jr.(1) | 100% | 200% | ||
Charlie Brown | 100% | 200% | ||
Richard Hunter | 100% | 200% | ||
Vikrant Bhatia | 75% | 150% | ||
Lori Browne | 75% | 150% | ||
Jeff Bradley(2) | 100% | 200% |
NEO | Financial Metric (Company-wide Adjusted EBITDA(1)) | Financial Metric (Segment-Specific Adjusted EBITDA) | Personal MBOs | |||
Karl H. Watson, Jr.(2) | 70% | 30% | ||||
Charlie Brown | 70% | 30% | ||||
Richard Hunter(3) | 20% | 50% | 30% | |||
Vikrant Bhatia(3) | 20% | 50% | 30% | |||
Lori Browne | 40% | 60% | ||||
Jeff Bradley(4) | 70% | 30% |
NEO | Actual Bonus Payout | Percentage of Target | ||
Karl H. Watson, Jr.(1) | $437,500 | 100% | ||
Charlie Brown | $775,075 | 151% | ||
Richard Hunter | $696,330 | 155% | ||
Vikrant Bhatia | $383,584 | 120% | ||
Lori Browne | $396,002 | 137% |
Name and Principal Position(1) | Year | Salary ($)(2) | Bonus($)(3) | Stock Awards ($)(4) | Option Awards ($)(5) | Non-Equity Incentive Plan Compensation($)(6) | All Other Compensation($)(7) | Total($) | |||||||
Karl H. Watson, Jr. Chief Executive Officer | 2019 | 437,500 | — | 6,453,000 | — | 437,500 | 45,578 | 7,373,578 | |||||||
Charlie Brown | 2019 | 511,265 | — | 310,427 | 298,000 | 775,075 | 13,580 | 1,908,347 | |||||||
Executive Vice President | 2018 | 500,000 | — | 298,001 | 447,000 | 525,650 | 99,920 | 1,870,571 | |||||||
and Chief Financial Officer | 2017 | 134,615 | — | 300,000 | 450,000 | 53,322 | 36,049 | 973,986 | |||||||
Richard Hunter | 2019 | 430,385 | — | 310,427 | 246,114 | 696,330 | 13,154 | 1,696,410 | |||||||
President, Drainage Pipe & Products | |||||||||||||||
Vikrant Bhatia | 2019 | 413,462 | — | 232,191 | 184,085 | 383,584 | 13,232 | 1,226,554 | |||||||
President, Water Pipe & Products | 2018 | 375,000 | 35,000 | 184,000 | 276,000 | 334,997 | 9,605 | 1,214,602 | |||||||
Lori Browne | 2019 | 383,453 | — | 254,905 | 202,094 | 396,002 | 29,679 | 1,266,133 | |||||||
Executive Vice President | 2018 | 368,761 | — | 181,798 | 272,701 | 345,965 | 29,680 | 1,198,905 | |||||||
and General Counsel | 2017 | 327,502 | — | 157,501 | 105,002 | 244,125 | 32,305 | 866,435 | |||||||
Jeff Bradley | 2019 | 418,696 | — | 1,378,000 | 1,092,507 | 13,232 | 2,902,435 | ||||||||
Former Chief | 2018 | 825,000 | — | 1,002,798 | 1,504,199 | 734,911 | 14,999 | 4,081,907 | |||||||
Executive Officer | 2017 | 818,750 | — | 1,125,011 | 750,005 | 111,375 | 24,392 | 2,829,533 |
NEO | Company Contributions to 401(k) Plan | Company Vehicle Payments | Relocation Payments / Allowance | Tax Gross Up for Relocation Payments | Group Life Insurance Premiums | Separation Payments and Benefits | ||||
Karl H. Watson, Jr. | — | $27,064 | $17,804 | $710 | — | |||||
Charlie Brown | $11,200 | — | — | — | $2,380 | — | ||||
Richard Hunter | $11,200 | — | — | — | $1,954 | — | ||||
Vikrant Bhatia | $11,200 | — | — | — | $435 | — | ||||
Lori Browne | $11,200 | $18,297 | — | — | $383 | — | ||||
Jeff Bradley | $11,200 | — | — | — | $2,032 | $3,066,188 |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards | All Other Stock Awards: Number of Shares of Stock or Units (#)(2) | All Other Option Awards: Number of Securities Underlying Options (#)(3) | Exercise or Base Price of Option Awards ($/Share)(4) | Grant Date Fair Value of Stock and Option Awards ($)(5) | ||||||||||||
Name | Type of Award | Grant Date | Threshold ($) | Target ($) | Maximum ($)(1) | |||||||||||
Karl H. Watson, Jr.(6) | Annual Incentive Plan | 437,500 | 875,000 | 1,750,000 | ||||||||||||
Performance-Based Restricted Stock Units | 7/1/2019 | 1,350,000 | 6,453,000 | |||||||||||||
Charlie Brown | Annual Incentive Plan | 257,500 | 515,000 | 1,030,000 | ||||||||||||
Restricted Stock Units | 3/14/2019 | 88,690 | 376,046 | |||||||||||||
Stock Options | 3/14/2019 | 197,351 | $ | 4.24 | 298,138 | |||||||||||
Richard Hunter | Annual Incentive Plan | 225,000 | 450,000 | 900,000 | ||||||||||||
Restricted Stock Units | 3/14/2019 | 73,214 | 310,427 | |||||||||||||
Stock Options | 3/14/2019 | 162,914 | $ | 4.24 | 246,114 | |||||||||||
Vikrant Bhatia | Annual Incentive Plan | 159,375 | 318,750 | 637,500 | ||||||||||||
Restricted Stock Units | 3/14/2019 | 54,762 | 232,191 | |||||||||||||
Stock Options | 3/14/2019 | 121,854 | $ | 4.24 | 184,085 | |||||||||||
Lori Browne | Annual Incentive Plan | 144,844 | 289,688 | 579,375 | ||||||||||||
Restricted Stock Units | 3/14/2019 | 60,119 | 254,905 | |||||||||||||
Stock Options | 3/14/2019 | 133,775 | $ | 4.24 | 202,094 | |||||||||||
Jeff Bradley(7) | Annual Incentive Plan | 424,875 | 849,750 | 1,699,500 | ||||||||||||
Restricted Stock Units | 3/14/2019 | 325,000 | 1,378,000 | |||||||||||||
Stock Options | 3/14/2019 | 723,179 | $ | 4.24 | 1,092,507 |
Option Awards | Stock Awards | |||||||||
Number of Securities Underlying Unexercised Option (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) | |||||
Karl H. Watson, Jr. | 1,147,500(1) | 13,265,100 | ||||||||
Charlie Brown | 0 58,887 | 197,351(2) 117,793(3) | 4.24 7.29 | 03/14/2029 03/01/2028 | 88,690(4) 27,254(5) | 1,025,256 315,056 | ||||
180,704 | 90,380(6) | 4.23 | 9/25/2027 | 23,646(7) | 273,348 | |||||
Richard Hunter | 0 23,004 | 162,914(2) 46,016(8) | 4.24 9.23 | 03/14/2029 06/11/2028 | 73,214(4) 10,835(9) | 846,354 125,253 | ||||
Vikrant Bhatia | 0 36,360 | 121,854(2) 72,731(3) | 4.24 7.29 | 03/14/2029 03/01/2028 | 54,762(4) 16,828(5) | 633,049 194,532 | ||||
21,975 22,920 | 10,992(10) 11,464(12) | 9.16 8.92 | 12/12/2027 08/07/2027 | 2,912(11) 2,991(13) | 33,663 34,576 | |||||
Lori Browne | 0 35,925 | 133,775(2) 71,862(3) | 4.24 7.29 | 03/14/2029 03/01/2028 | 60,119(4) 16,627(5) | 694,976 192,208 | ||||
9,654 16,410 | 4,829(14) 5,470(16) | 18.96 18.00 | 03/20/2027 10/19/2026 | 2,770(15) 2,188(17) | 32,021 25,293 | |||||
Jeff Bradley(18) | — | — | n/a | n/a | — | — |
Option Awards | Stock Awards | |||||||
Name | Number of Shares Acquired on Exercise (#)(1) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($) | ||||
Karl H. Watson, Jr.(1) | — | — | 202,500 | 1,997,325 | ||||
Charlie Brown(2) | — | — | 37,262 | 244,528 | ||||
Richard Hunter(3) | — | — | 5,416 | 26,863 | ||||
Vikrant Bhatia(4) | — | — | 14,312 | 92,749 | ||||
Lori Browne(5) | — | — | 13,268 | 72,813 | ||||
Jeff Bradley(6) | 175,822 | 29,444 | 65,625 | 324,278 |
Base Salary Continuation | Pro-rated 2019 Annual Bonus | Health Care Coverage Continuation (1) | Performance-Based RSUs (2) | Total | ||||||
Termination without Cause or Resignation for Good Reason not in connection with a Change in Control | $875,000 | $437,500 | $15,723 | $7,022,700 | $8,350,923 | |||||
Termination without Cause in connection with Retirement | $875,000 | $437,500 | $15,723 | $975,375 | $2,303,598 | |||||
Termination without Cause in connection with a Change in Control | $875,000 | $437,500 | $15,723 | $13,265,100 | $14,593,323 | |||||
Death or Disability | n/a | $437,500 | n/a | $7,022,700 | $7,460,200 |
Base Salary Continuation | Pro-rated 2019 Annual Bonus | Health Care Coverage Continuation (1) | Stock Options, RSUs and Restricted Shares (2) | Total | ||||||
Termination without Cause or Resignation for Good Reason not in Connection with a Change in Control | $515,000 | $775,075 | $15,723 | All unvested awards are forfeited | $1,305,798 | |||||
Termination without Cause in Connection with a Change in Control | $515,000 | $775,075 | $15,723 | $5,799,739 | $7,105,537 | |||||
Death or Disability | n/a | $775,075 | n/a | $5,799,739 | $6,574,814 |
Base Salary Continuation | Pro-rated 2019 Annual Bonus | Health Care Coverage Continuation (1) | Stock Options and RSUs (2) | Total | ||||||
Termination without Cause or Resignation for Good Reason not in Connection with a Change in Control | $450,000 | $696,330 | $15,723 | All unvested awards are forfeited | $1,162,053 | |||||
Termination without Cause in Connection with a Change in Control | $450,000 | $696,330 | $15,723 | $2,271,354 | $3,433,407 | |||||
Death or Disability | n/a | $696,330 | n/a | $2,271,354 | $2,967,684 |
Base Salary Continuation | Pro-rated 2019 Annual Bonus | Health Care Coverage Continuation (1) | Stock Options, RSUs and Restricted Shares (2) | Total | ||||||
Termination without Cause or Resignation for Good Reason not in Connection with a Change in Control | $425,000 | $383,584 | $15,723 | All unvested awards are forfeited | $824,307 | |||||
Termination without Cause in Connection with a Change in Control | $425,000 | $383,584 | $15,723 | $2,423,503 | $3,247,810 | |||||
Death or Disability | n/a | $383,584 | n/a | $2,423,503 | $2,807,087 |
Base Salary Continuation | Pro-rated 2019 Annual Bonus | Health Care Coverage Continuation (1) | Stock Options, RSUs and Restricted Shares (2) | LTIP Units (3) | Total | |||||||
Termination without Cause or Resignation for Good Reason not in Connection with a Change in Control | $386,250 | $396,002 | n/a | All unvested awards are forfeited | Remain Outstanding through June 30, 2020 | $782,252 | ||||||
Termination without Cause in Connection with a Change in Control | $386,250 | $396,002 | n/a | $2,383,982 | Remain Outstanding through June 30, 2020 | $3,166,234 | ||||||
Death or Disability | n/a | $396,002 | n/a | $2,383,982 | n/a | $2,779,984 |
Lump Sum Payment | Pro-rated 2019 Annual Bonus | Lump Sum Payment (representing one year of base salary and performance bonus) | Health Care Coverage Continuation | Stock Options, RSUs and Restricted Shares | LTIP Units | Total | ||||||||
Termination without Cause or Resignation for Good Reason not in Connection with a Change in Control | $875,000 | $433,904 | $1,750,000 | $14,568 | All unvested awards are forfeited | 105,000 Vested Units Remain Outstanding through July 8, 2021 | $3,073,472 |
Plan Category | (a) Number of Securities to Be Issued Upon Exercise of Outstanding Options, Warrants and Rights | (b) Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | (c) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column(a)) | |||||||||||||||||
Equity compensation plans approved by security holders | 3,077,170 | $ | 6.39 | 3,139,639 |
Plan Category | (a) Number of Securities to Be Issued Upon Exercise of Outstanding Options, Warrants and Rights | (b) Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | (c) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column(a)) | |||||||
Equity compensation plans approved by security holders | 3,673,096 | $ | 6.50 | 3,282,574 |
Name of Beneficial Owner | Shares of Common Stock | Percentage of Total Outstanding Common Stock (%) | ||
5% Stockholder and Selling Stockholder | ||||
Forterra US Holdings, LLC(1) | 45,107,250 | 69.6% | ||
Named Executive Officers | ||||
Karl H. Watson, Jr.(2) | 507,265 | * | ||
Charlie Brown(3) | 528,740 | * | ||
Richard Hunter(4) | 105,809 | * | ||
Vikrant Bhatia(5) | 250,277 | * | ||
Lori Browne(6) | 217,171 | * | ||
Jeff Bradley(7) | 195,184 | * | ||
Directors | ||||
Richard “Chip” Cammerer, Jr.(8) | — | — | ||
Rafael Colorado(8) | — | — | ||
Maureen Harrell(8) | — | — | ||
Chad Lewis(8) | — | — | ||
Clint McDonnough(9) | 43,712 | * | ||
John McPherson(9) | 45,161 | * | ||
Chris Meyer(8) | 62,500 | * | ||
Jacques Sarrazin(9) | 16,041 | * | ||
All directors and executive officers as a group (14 persons)(10) | 1,971,860 | 3.0% |
2019 | 2018 | |||||
(in thousands) | ||||||
Audit fees(1) | $ | 3,886 | $ | 5,527 | ||
Audit-related fees(2) | $ | 94 | $ | 401 | ||
Tax fees | __ | __ | ||||
All other fees | __ | __ | ||||
TOTAL | $ | 3,980 | $ | 5,928 |
Exhibit No. | Description of Exhibit | |||||||||||||
(d) | ||||||||||||||
3.2 | (b) | |||||||||||||
4.1 | (b) | |||||||||||||
4.2 | (e) | |||||||||||||
(p) | ||||||||||||||
4.4 | (p) | |||||||||||||
4.5 | * | |||||||||||||
10.1 | (l) | |||||||||||||
10.2 | (l) | |||||||||||||
10.3 | (a) | |||||||||||||
10.4 | (e) | |||||||||||||
10.5 | (b) | |||||||||||||
10.6# | (a) | |||||||||||||
10.7# | (a) | |||||||||||||
10.8# | (h) | |||||||||||||
10.9# | (g) | |||||||||||||
10.10# | (c) | |||||||||||||
10.11# | (c) | |||||||||||||
10.12# | (c) | |||||||||||||
10.13# | (c) | |||||||||||||
10.14# | (c) | |||||||||||||
10.15# | (m) | |||||||||||||
10.16 | (f) | |||||||||||||
10.17 | (f) | |||||||||||||
10.18 | (i) | |||||||||||||
10.19# | (j) | |||||||||||||
10.20# | (k) | |||||||||||||
10.21# | (n) | |||||||||||||
10.22# | (n) | |||||||||||||
10.23# | (o) | |||||||||||||
10.24# | ||||||||||||||
10.25# | ||||||||||||||
10.26# | ||||||||||||||
10.27# | ||||||||||||||
10.28 | (s) | |||||||||||||
21.1 | * | |||||||||||||
23.1 | * | |||||||||||||
23.2 | * | |||||||||||||
31.1 | * | |||||||||||||
31.2 | * | |||||||||||||
32.1 | ^ | |||||||||||||
99.1 | * | |||||||||||||
101.INS | XBRL Instance | * | ||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | * | ||||||||||||
101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document. | * | ||||||||||||
101.DEF | Inline XBRL Taxonomy Definition Linkbase Document. | * | ||||||||||||
101.LAB | Inline XBRL Taxonomy Label Linkbase Document. | * | ||||||||||||
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document. | * | ||||||||||||
104 | Cover Page Interactive Data File – The cover page from the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 is formatted in Inline XBRL (included as Exhibit 101). | * |
* | Filed herewith | ||||
# | Denotes management compensatory plan or arrangement | ||||
Exhibit 32.1 shall not be deemed filed with the SEC, nor shall it be deemed incorporated by reference in any filing with the SEC under the Exchange Act or the Securities Act of 1933, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any filings. | |||||
(a) | Previously filed on July 8, 2016 as an exhibit to the Company’s Registration Statement on Form S-1 (File No. 333-212449) and incorporated herein by reference. | ||||
(b) | Previously filed on August 15, 2016 as an exhibit to Amendment No. 1 to the Company’s Registration Statement on Form S-1 (File No. 333-212449) and incorporated herein by reference. | ||||
(c) | Previously filed on September 8, 2016 as an exhibit to Amendment No. 2 to the Company’s Registration Statement on Form S-1 (File No. 333-212449) and incorporated herein by reference. | ||||
(d) | Previously filed on October 7, 2016 as an exhibit to Amendment No. 4 to the Company’s Registration Statement on Form S-1 (File No. 333-212449) and incorporated herein by reference. | ||||
(e) | Previously filed on October 17, 2016 as an exhibit to Amendment No. 5 to the Company’s Registration Statement on Form S-1 (File No. 333-212449) and incorporated herein by reference. | ||||
(f) | Previously filed on November 11, 2016 as an exhibit to the Company’s Current Report on Form 8-K/A and incorporated herein by reference. | ||||
(g) | Previously filed on January 10, 2017 as an exhibit to the Company’s Registration Statement on Form S-8 (File No. 333-215504) and incorporated herein by reference. | ||||
(h) | Previously filed on March 31, 2017 as an exhibit to the Company Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and incorporated herein by reference. | ||||
(i) | Previously filed on May 15, 2017 as an exhibit to the Company Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2017 and incorporated herein by reference. | ||||
(j) | Previously filed on September 7, 2017 as an exhibit to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||||
(k) | Previously filed on December 20, 2017 as an exhibit to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||||
(l) | Previously filed on June 11, 2018 as an exhibit to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||||
(m) | Previously filed on April 20, 2018 as an exhibit to the Company's Definitive Proxy Statement and incorporated herein by reference. | ||||
(n) | Previously filed on May 23, 2019 as an exhibit to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||||
(o) | Previously filed on Jun 24, 2019 as an exhibit to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||||
(p) | Previously filed on July 17, 2020 as an exhibit to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||||
(q) | Previously filed on February 27, 2020 as an exhibit to the Company Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and incorporated herein by reference. | ||||
(r) | Previously filed on February 22, 2021 as an exhibit to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||||
(s) | Previously filed on July 28, 2020 as an exhibit to the Company Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2020 and incorporated herein by reference. |
FORTERRA, INC. | |||||||||||
(Registrant) | |||||||||||
/s/ Karl Watson, Jr. | February 25, 2021 | ||||||||||
By: | Karl Watson, Jr. | ||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
/s/ Karl Watson, Jr. | Chief Executive Officer and Director | February | ||||||||||||
Karl Watson, Jr. | (Principal Executive Officer) | |||||||||||||
/s/ Charles R. Brown, II | Executive Vice President and Chief Financial Officer | February | ||||||||||||
Charles R. Brown, II | (Principal Financial Officer, Principal Accounting Officer) | |||||||||||||
/s/ Chris Meyer | Chairman of the Board, Director | February | ||||||||||||
Chris Meyer | ||||||||||||||
/s/ Richard Cammerer, Jr. | Director | February | ||||||||||||
Richard Cammerer, Jr. | ||||||||||||||
/s/ Rafael Colorado | Director | February | ||||||||||||
Rafael Colorado | ||||||||||||||
/s/ Maureen Harrell | Director | February | ||||||||||||
Maureen Harrell | ||||||||||||||
/s/ Chad Lewis | Director | February | ||||||||||||
Chad Lewis | ||||||||||||||
/s/ Clint McDonnough | Director | February | ||||||||||||
Clint McDonnough | ||||||||||||||
/s/ John McPherson | Director | February | ||||||||||||
John McPherson | ||||||||||||||
/s/ Jacques Sarrazin | Director | February | ||||||||||||
Jacques Sarrazin |