☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 16-1445150 | ||||||||||||||||
(State or incorporation ) | (I.R.S. Employer Identification No.) | ||||||||||||||||
3556 Lake Shore Road | P.O. Box 2028 | Buffalo | New York | 14219-0228 | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.01 par value per share | ROCK | NASDAQ Stock Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
PAGE NUMBER | |||||||||||
PART I. | |||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II. | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
Net Sales | $ | 249,439 | $ | 227,417 | Net Sales | $ | 329,665 | $ | 299,236 | $ | 864,918 | $ | 789,308 | |||||||||||||||||
Cost of sales | 193,052 | 183,517 | Cost of sales | 244,222 | 222,658 | 650,830 | 605,272 | |||||||||||||||||||||||
Gross profit | 56,387 | 43,900 | Gross profit | 85,443 | 76,578 | 214,088 | 184,036 | |||||||||||||||||||||||
Selling, general, and administrative expense | 41,197 | 33,334 | Selling, general, and administrative expense | 41,584 | 45,158 | 120,448 | 115,444 | |||||||||||||||||||||||
Income from operations | 15,190 | 10,566 | Income from operations | 43,859 | 31,420 | 93,640 | 68,592 | |||||||||||||||||||||||
Interest (income) expense | (47 | ) | 2,061 | |||||||||||||||||||||||||||
Other expense | 192 | 589 | ||||||||||||||||||||||||||||
Interest expense | Interest expense | 218 | 17 | 385 | 2,297 | |||||||||||||||||||||||||
Other expense (income) | Other expense (income) | 53 | 84 | (1,542) | 660 | |||||||||||||||||||||||||
Income before taxes | 15,045 | 7,916 | Income before taxes | 43,588 | 31,319 | 94,797 | 65,635 | |||||||||||||||||||||||
Provision for income taxes | 2,986 | 1,571 | Provision for income taxes | 9,828 | 6,843 | 21,686 | 14,901 | |||||||||||||||||||||||
Net income | $ | 12,059 | $ | 6,345 | Net income | $ | 33,760 | $ | 24,476 | $ | 73,111 | $ | 50,734 | |||||||||||||||||
Net earnings per share: | Net earnings per share: | |||||||||||||||||||||||||||||
Basic | $ | 0.37 | $ | 0.20 | Basic | $ | 1.03 | $ | 0.75 | $ | 2.24 | $ | 1.57 | |||||||||||||||||
Diluted | $ | 0.37 | $ | 0.19 | Diluted | $ | 1.02 | $ | 0.75 | $ | 2.22 | $ | 1.55 | |||||||||||||||||
Weighted average shares outstanding: | Weighted average shares outstanding: | |||||||||||||||||||||||||||||
Basic | 32,586 | 32,279 | Basic | 32,635 | 32,470 | 32,606 | 32,357 | |||||||||||||||||||||||
Diluted | 32,883 | 32,617 | Diluted | 32,969 | 32,770 | 32,902 | 32,677 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
Net income | $ | 12,059 | $ | 6,345 | Net income | $ | 33,760 | $ | 24,476 | $ | 73,111 | $ | 50,734 | |||||||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | (5,898 | ) | 842 | Foreign currency translation adjustment | 2,200 | (664) | (883) | 1,176 | ||||||||||||||||||||||
Minimum pension and post retirement benefit plan adjustments | 18 | 12 | Minimum pension and post retirement benefit plan adjustments | 18 | 12 | 54 | 36 | |||||||||||||||||||||||
Other comprehensive (loss) income | (5,880 | ) | 854 | |||||||||||||||||||||||||||
Other comprehensive income (loss) | Other comprehensive income (loss) | 2,218 | (652) | (829) | 1,212 | |||||||||||||||||||||||||
Total comprehensive income | $ | 6,179 | $ | 7,199 | Total comprehensive income | $ | 35,978 | $ | 23,824 | $ | 72,282 | $ | 51,946 |
March 31, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | |||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||
Assets | Assets | |||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 85,966 | $ | 191,363 | Cash and cash equivalents | $ | 179,816 | $ | 191,363 | |||||||||
Accounts receivable, net of allowance of $5,781 and $6,330 | 172,452 | 147,515 | ||||||||||||||||
Inventories | 88,585 | 78,476 | ||||||||||||||||
Accounts receivable, net of allowance of $3,319 and $6,330 | Accounts receivable, net of allowance of $3,319 and $6,330 | 203,488 | 147,515 | |||||||||||||||
Inventories, net | Inventories, net | 77,943 | 78,476 | |||||||||||||||
Prepaid expenses and other current assets | 16,149 | 19,748 | Prepaid expenses and other current assets | 20,306 | 19,748 | |||||||||||||
Total current assets | 363,152 | 437,102 | Total current assets | 481,553 | 437,102 | |||||||||||||
Property, plant, and equipment, net | 95,882 | 95,409 | Property, plant, and equipment, net | 94,983 | 95,409 | |||||||||||||
Operating lease assets | 33,991 | 27,662 | Operating lease assets | 32,359 | 27,662 | |||||||||||||
Goodwill | 382,045 | 329,705 | Goodwill | 382,427 | 329,705 | |||||||||||||
Acquired intangibles | 107,528 | 92,592 | Acquired intangibles | 108,821 | 92,592 | |||||||||||||
Other assets | 1,924 | 1,980 | Other assets | 1,703 | 1,980 | |||||||||||||
$ | 984,522 | $ | 984,450 | $ | 1,101,846 | $ | 984,450 | |||||||||||
Liabilities and Shareholders’ Equity | Liabilities and Shareholders’ Equity | |||||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||||
Accounts payable | $ | 102,816 | $ | 83,136 | Accounts payable | $ | 131,746 | $ | 83,136 | |||||||||
Accrued expenses | 84,140 | 98,463 | Accrued expenses | 106,480 | 98,463 | |||||||||||||
Billings in excess of cost | 34,567 | 47,598 | Billings in excess of cost | 31,267 | 47,598 | |||||||||||||
Total current liabilities | 221,523 | 229,197 | Total current liabilities | 269,493 | 229,197 | |||||||||||||
Deferred income taxes | 39,999 | 40,334 | Deferred income taxes | 40,942 | 40,334 | |||||||||||||
Non-current operating lease liabilities | 24,968 | 19,669 | Non-current operating lease liabilities | 23,314 | 19,669 | |||||||||||||
Other non-current liabilities | 20,675 | 21,286 | Other non-current liabilities | 22,022 | 21,286 | |||||||||||||
Shareholders’ equity: | Shareholders’ equity: | |||||||||||||||||
Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding | — | — | ||||||||||||||||
Common stock, $0.01 par value; authorized 50,000 shares; 33,388 shares and 33,192 shares issued and outstanding in 2020 and 2019 | 334 | 332 | ||||||||||||||||
Preferred stock, $0.01 par value; authorized 10,000 shares; NaN outstanding | Preferred stock, $0.01 par value; authorized 10,000 shares; NaN outstanding | 0 | 0 | |||||||||||||||
Common stock, $0.01 par value; authorized 50,000 shares; 33,519 shares and 33,192 shares issued and outstanding in 2020 and 2019 | Common stock, $0.01 par value; authorized 50,000 shares; 33,519 shares and 33,192 shares issued and outstanding in 2020 and 2019 | 335 | 332 | |||||||||||||||
Additional paid-in capital | 297,269 | 295,582 | Additional paid-in capital | 302,107 | 295,582 | |||||||||||||
Retained earnings | 417,436 | 405,668 | Retained earnings | 478,488 | 405,668 | |||||||||||||
Accumulated other comprehensive loss | (11,271 | ) | (5,391 | ) | Accumulated other comprehensive loss | (6,220) | (5,391) | |||||||||||
Cost of 986 and 906 common shares held in treasury in 2020 and 2019 | (26,411 | ) | (22,227 | ) | ||||||||||||||
Cost of 1,024 and 906 common shares held in treasury in 2020 and 2019 | Cost of 1,024 and 906 common shares held in treasury in 2020 and 2019 | (28,635) | (22,227) | |||||||||||||||
Total shareholders’ equity | 677,357 | 673,964 | Total shareholders’ equity | 746,075 | 673,964 | |||||||||||||
$ | 984,522 | $ | 984,450 | $ | 1,101,846 | $ | 984,450 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Cash Flows from Operating Activities | |||||||
Net income | $ | 12,059 | $ | 6,345 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation and amortization | 5,338 | 4,941 | |||||
Stock compensation expense | 1,665 | 2,371 | |||||
(Benefit of) provision for deferred income taxes | (216 | ) | 393 | ||||
Other, net | 411 | 2,456 | |||||
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||||||
Accounts receivable | (7,059 | ) | (27,623 | ) | |||
Inventories | (6,004 | ) | 35 | ||||
Other current assets and other assets | 6,144 | 165 | |||||
Accounts payable | (17,789 | ) | 5,332 | ||||
Accrued expenses and other non-current liabilities | (37,561 | ) | (31,903 | ) | |||
Net cash used in operating activities | (43,012 | ) | (37,488 | ) | |||
Cash Flows from Investing Activities | |||||||
Acquisitions, net of cash acquired | (54,539 | ) | (264 | ) | |||
Net proceeds from sale of property and equipment | 52 | 22 | |||||
Purchases of property, plant, and equipment | (2,822 | ) | (3,132 | ) | |||
Net cash used in investing activities | (57,309 | ) | (3,374 | ) | |||
Cash Flows from Financing Activities | |||||||
Long-term debt payments | — | (210,000 | ) | ||||
Payment of debt issuance costs | — | (1,235 | ) | ||||
Purchase of treasury stock at market prices | (4,184 | ) | (2,151 | ) | |||
Net proceeds from issuance of common stock | 24 | 139 | |||||
Net cash used in financing activities | (4,160 | ) | (213,247 | ) | |||
Effect of exchange rate changes on cash | (916 | ) | 612 | ||||
Net decrease in cash and cash equivalents | (105,397 | ) | (253,497 | ) | |||
Cash and cash equivalents at beginning of year | 191,363 | 297,006 | |||||
Cash and cash equivalents at end of period | $ | 85,966 | $ | 43,509 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Balance at December 31, 2019 | 33,192 | $ | 332 | $ | 295,582 | $ | 405,668 | $ | (5,391 | ) | 906 | $ | (22,227 | ) | $ | 673,964 | |||||||||||||
Net income | — | — | — | 12,059 | — | — | — | 12,059 | |||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | (5,898 | ) | — | — | (5,898 | ) | |||||||||||||||||||
Minimum pension and post retirement benefit plan adjustments, net of taxes of $7 | — | — | — | — | 18 | — | — | 18 | |||||||||||||||||||||
Stock compensation expense | — | — | 1,665 | — | — | — | — | 1,665 | |||||||||||||||||||||
Cumulative effect of accounting change (See Note 2) | — | — | — | (291 | ) | — | — | — | (291 | ) | |||||||||||||||||||
Stock options exercised | 3 | — | 24 | — | — | — | — | 24 | |||||||||||||||||||||
Net settlement of restricted stock units | 193 | 2 | (2 | ) | — | — | 80 | (4,184 | ) | (4,184 | ) | ||||||||||||||||||
Balance at March 31, 2020 | 33,388 | $ | 334 | $ | 297,269 | $ | 417,436 | $ | (11,271 | ) | 986 | $ | (26,411 | ) | $ | 677,357 |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | $ | 73,111 | $ | 50,734 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 17,325 | 14,923 | |||||||||
Stock compensation expense | 6,151 | 10,087 | |||||||||
Gain on sale of business | (1,881) | 0 | |||||||||
Exit activity costs, non-cash | 505 | 479 | |||||||||
Provision for (benefit of) deferred income taxes | 668 | (429) | |||||||||
Other, net | 1,402 | 3,267 | |||||||||
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||||||||||
Accounts receivable | (40,176) | (56,645) | |||||||||
Inventories | 6,102 | 18,617 | |||||||||
Other current assets and other assets | 6,095 | (6,949) | |||||||||
Accounts payable | 13,408 | 22,770 | |||||||||
Accrued expenses and other non-current liabilities | (26,516) | 15,640 | |||||||||
Net cash provided by operating activities | 56,194 | 72,494 | |||||||||
Cash Flows from Investing Activities | |||||||||||
Acquisitions, net of cash acquired | (54,385) | (8,665) | |||||||||
Net proceeds from sale of property and equipment | 568 | 87 | |||||||||
Purchases of property, plant, and equipment | (9,335) | (7,703) | |||||||||
Net proceeds from sale of business | 2,000 | 0 | |||||||||
Net cash used in investing activities | (61,152) | (16,281) | |||||||||
Cash Flows from Financing Activities | |||||||||||
Long-term debt payments | 0 | (212,000) | |||||||||
Payment of debt issuance costs | 0 | (1,235) | |||||||||
Purchase of treasury stock at market prices | (6,408) | (3,495) | |||||||||
Net proceeds from issuance of common stock | 377 | 400 | |||||||||
Net cash used in financing activities | (6,031) | (216,330) | |||||||||
Effect of exchange rate changes on cash | (558) | 729 | |||||||||
Net decrease in cash and cash equivalents | (11,547) | (159,388) | |||||||||
Cash and cash equivalents at beginning of year | 191,363 | 297,006 | |||||||||
Cash and cash equivalents at end of period | $ | 179,816 | $ | 137,618 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 33,192 | $ | 332 | $ | 295,582 | $ | 405,668 | $ | (5,391) | 906 | $ | (22,227) | $ | 673,964 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 12,059 | — | — | — | 12,059 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | (5,898) | — | — | (5,898) | |||||||||||||||||||||||||||||||||||||||
Minimum pension and post retirement benefit plan adjustments, net of taxes of $7 | — | — | — | — | 18 | — | — | 18 | |||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | 1,665 | — | — | — | — | 1,665 | |||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting change (See Note 2) | — | — | — | (291) | — | — | — | (291) | |||||||||||||||||||||||||||||||||||||||
Stock options exercised | 3 | — | 24 | — | — | — | — | 24 | |||||||||||||||||||||||||||||||||||||||
Net settlement of restricted stock units | 193 | 2 | (2) | — | — | 80 | (4,184) | (4,184) | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 33,388 | $ | 334 | $ | 297,269 | $ | 417,436 | $ | (11,271) | 986 | $ | (26,411) | $ | 677,357 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 27,292 | — | — | — | 27,292 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 2,815 | — | — | 2,815 | |||||||||||||||||||||||||||||||||||||||
Minimum pension and post retirement benefit plan adjustments, net of taxes of $6 | — | — | — | — | 18 | — | — | 18 | |||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | 2,506 | — | — | — | — | 2,506 | |||||||||||||||||||||||||||||||||||||||
Stock options exercised | 6 | — | 54 | — | — | — | — | 54 | |||||||||||||||||||||||||||||||||||||||
Awards of common shares | 4 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net settlement of restricted stock units | 15 | 0 | 0 | — | — | 7 | (278) | (278) | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 33,413 | $ | 334 | $ | 299,829 | $ | 444,728 | $ | (8,438) | 993 | $ | (26,689) | $ | 709,764 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 33,760 | — | — | — | 33,760 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 2,200 | — | — | 2,200 | |||||||||||||||||||||||||||||||||||||||
Minimum pension and post retirement benefit plan adjustments, net of taxes of $7 | — | — | — | — | 18 | — | — | 18 | |||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | 1,980 | — | — | — | — | 1,980 | |||||||||||||||||||||||||||||||||||||||
Stock options exercised | 31 | — | 299 | — | — | — | — | 299 | |||||||||||||||||||||||||||||||||||||||
Net settlement of restricted stock units | 75 | 1 | (1) | — | — | 31 | (1,946) | (1,946) | |||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 33,519 | $ | 335 | $ | 302,107 | $ | 478,488 | $ | (6,220) | 1,024 | $ | (28,635) | $ | 746,075 | |||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Balance at December 31, 2018 | 32,887 | $ | 329 | $ | 282,525 | $ | 338,995 | $ | (7,234 | ) | 796 | $ | (17,922 | ) | $ | 596,693 | |||||||||||||
Net income | — | — | — | 6,345 | — | — | — | 6,345 | |||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 842 | — | — | 842 | |||||||||||||||||||||
Minimum pension and post retirement benefit plan adjustments, net of taxes of $4 | — | — | — | — | 12 | — | — | 12 | |||||||||||||||||||||
Stock compensation expense | — | — | 2,371 | — | — | — | — | 2,371 | |||||||||||||||||||||
Cumulative effect of accounting change | — | — | — | 1,582 | — | — | — | 1,582 | |||||||||||||||||||||
Stock options exercised | 12 | — | 139 | — | — | — | — | 139 | |||||||||||||||||||||
Net settlement of restricted stock units | 127 | 1 | (1 | ) | — | — | 59 | (2,151 | ) | (2,151 | ) | ||||||||||||||||||
Balance at March 31, 2019 | 33,026 | $ | 330 | $ | 285,034 | $ | 346,922 | $ | (6,380 | ) | 855 | $ | (20,073 | ) | $ | 605,833 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 32,887 | $ | 329 | $ | 282,525 | $ | 338,995 | $ | (7,234) | 796 | $ | (17,922) | $ | 596,693 | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 6,345 | — | — | — | 6,345 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 842 | — | — | 842 | ||||||||||||||||||||||||||||||||||||||||||
Minimum pension and post retirement benefit plan adjustments, net of taxes of $4 | — | — | — | — | 12 | — | — | 12 | ||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | 2,371 | — | — | — | — | 2,371 | ||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting change | — | — | — | 1,582 | — | — | — | 1,582 | ||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 12 | — | 139 | — | — | — | — | 139 | ||||||||||||||||||||||||||||||||||||||||||
Net settlement of restricted stock units | 127 | 1 | (1) | — | — | 59 | (2,151) | (2,151) | ||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | 33,026 | $ | 330 | $ | 285,034 | $ | 346,922 | $ | (6,380) | 855 | $ | (20,073) | $ | 605,833 | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 19,913 | — | — | — | 19,913 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 998 | — | — | 998 | ||||||||||||||||||||||||||||||||||||||||||
Minimum pension and post retirement benefit plan adjustments, net of taxes of $5 | — | — | — | — | 12 | — | — | 12 | ||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | 3,720 | — | — | — | — | 3,720 | ||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 5 | — | 69 | — | — | — | — | 69 | ||||||||||||||||||||||||||||||||||||||||||
Awards of common shares | 8 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Net settlement of restricted stock units | 62 | 1 | (1) | — | — | 25 | (998) | (998) | ||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 33,101 | $ | 331 | $ | 288,822 | $ | 366,835 | $ | (5,370) | 880 | $ | (21,071) | $ | 629,547 | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 24,476 | — | — | — | 24,476 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | (664) | — | — | (664) | ||||||||||||||||||||||||||||||||||||||||||
Minimum pension and post retirement benefit plan adjustments, net of taxes of $4 | — | — | — | — | 12 | — | — | 12 | ||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | 3,996 | — | — | — | — | 3,996 | ||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 16 | — | 192 | — | — | — | — | 192 | ||||||||||||||||||||||||||||||||||||||||||
Net settlement of restricted stock units | 28 | 1 | (1) | — | — | 8 | (346) | (346) | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 33,145 | $ | 332 | $ | 293,009 | $ | 391,311 | $ | (6,022) | 888 | $ | (21,417) | $ | 657,213 | ||||||||||||||||||||||||||||||||||||
Standard | Description | Financial Statement Effect or Other Significant Matters | ||||||||||||
ASU No. 2016-13 Financial Instruments - Credit Losses (Topic 326) | The objective of this standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit, including trade receivables, held by an entity at each reporting date. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. | The standard is effective for the Company as of January 1, 2020. The Company adopted the amendments in this update using the modified retrospective approach through a cumulative-effect adjustment to retained earnings of $291,000, net of $96,000 of income taxes, on the opening consolidated balance sheet as of January 1, 2020. The Company's financial assets that are in the scope of the standard are contract assets and accounts receivables which are short-term in nature. Additionally, the Company has identified and implemented appropriate changes to the Company's business processes, policies and internal controls to support reporting and disclosures. Date of adoption: Q1 2020 | ||||||||||||
ASU 2018-15 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract | The amendments in this update require an entity to apply the same requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract as the entity would for implementation costs incurred to develop or obtain internal-use software. The accounting for the service element is not affected by the amendments in this update. | The standard is effective for the Company as of January 1, 2020. The Company adopted the amendments in this update using the prospective method of adoption, and the adoption did not have a material impact to the Company's financial statements. Date of adoption: Q1 2020 |
Standard | Description | Financial Statement Effect or Other Significant Matters | ||||||||||||
ASU No. 2019-12 Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes | The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and improve consistent application by clarifying and amending existing guidance. The amendments of this standard are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for which financial statements have not been issued, with the amendments to be applied on a respective, modified retrospective or prospective basis, depending on the specific amendment. | The Company is currently evaluating the requirements of this standard. The standard is not expected to have a material impact on the Company's financial statements. Date of adoption: Q1 2021 |
September 30, 2020 | December 31, 2019 | ||||||||||
Trade accounts receivable | $ | 171,375 | $ | 133,238 | |||||||
Costs in excess of billings | 35,432 | 20,607 | |||||||||
Total accounts receivables | 206,807 | 153,845 | |||||||||
Less allowance for doubtful accounts and contract assets | (3,319) | (6,330) | |||||||||
Accounts receivable | $ | 203,488 | $ | 147,515 |
March 31, 2020 | December 31, 2019 | ||||||
Trade accounts receivable | $ | 156,399 | $ | 133,238 | |||
Costs in excess of billings | 21,834 | 20,607 | |||||
Total accounts receivables | 178,233 | 153,845 | |||||
Less allowance for doubtful accounts and contract assets | (5,781 | ) | (6,330 | ) | |||
Accounts receivable | $ | 172,452 | $ | 147,515 |
Beginning balance as of January 1, 2020 | $ | 6,330 | |
Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings | 387 | ||
Bad debt expense | 69 | ||
Write-off charged against the allowance and other adjustments | (1,005 | ) | |
Ending balance as of March 31, 2020 | $ | 5,781 |
6,330 | |||||
Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings | 387 | ||||
Bad debt expense, net of recoveries | 780 | ||||
Write-off charged against the allowance and other adjustments | (4,178) | ||||
Ending balance as of September 30, 2020 | $ | 3,319 |
September 30, 2020 | December 31, 2019 | ||||||||||
Costs in excess of billings | $ | 35,432 | $ | 20,607 | |||||||
Billings in excess of cost | (31,267) | (47,598) | |||||||||
Unearned revenue | (18,951) | (17,311) |
March 31, 2020 | December 31, 2019 | ||||||
Costs in excess of billings | $ | 21,834 | $ | 20,607 | |||
Billings in excess of cost | (34,567 | ) | (47,598 | ) | |||
Unearned revenue | (19,388 | ) | (17,311 | ) |
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | ||||||||||
Revenue recognized in the period from: | |||||||||||
Amounts included in billings in excess of cost at the beginning of the period | $ | 44,723 | $ | 14,137 | |||||||
Amounts included in unearned revenue at the beginning of the period | $ | 13,614 | $ | 11,052 |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | ||||||
Revenue recognized in the period from: | |||||||
Amounts included in billings in excess of cost at the beginning of the period | $ | 29,221 | $ | 9,697 | |||
Amounts included in unearned revenue at the beginning of the period | $ | 9,619 | $ | 4,661 |
September 30, 2020 | December 31, 2019 | ||||||||||
Raw material | $ | 47,275 | $ | 48,799 | |||||||
Work-in-process | 6,195 | 5,988 | |||||||||
Finished goods | 29,264 | 28,021 | |||||||||
Gross inventory | $ | 82,734 | $ | 82,808 | |||||||
Less reserves | (4,791) | (4,332) | |||||||||
Total inventories | $ | 77,943 | $ | 78,476 |
March 31, 2020 | December 31, 2019 | ||||||
Raw material | $ | 50,601 | $ | 45,700 | |||
Work-in-process | 9,471 | 5,988 | |||||
Finished goods | 28,513 | 26,788 | |||||
Total inventories | $ | 88,585 | $ | 78,476 |
Working capital | $ | 3,918 | |||
Property, plant and equipment | 219 | ||||
Acquired intangible assets | 13,900 | ||||
Other assets | 951 | ||||
Other liabilities | (4,027) | ||||
Goodwill | 32,151 | ||||
Fair value of purchase consideration | $ | 47,112 |
Working capital | $ | 3,183 | |
Property, plant and equipment | 337 | ||
Acquired intangible assets | 7,600 | ||
Other assets | 923 | ||
Other liabilities | (4,189 | ) | |
Goodwill | 39,335 | ||
Fair value of purchase consideration | $ | 47,189 |
Fair Value | Weighted-Average Amortization Period | ||||||||||
Trademarks | $ | 6,900 | Indefinite | ||||||||
Technology | 3,200 | 10 years | |||||||||
Customer relationships | 3,200 | 11 years | |||||||||
Non-compete agreements | 300 | 5 years | |||||||||
Backlog | 300 | 0.25 years | |||||||||
Total | $ | 13,900 |
Fair Value | Weighted-Average Amortization Period | ||||
Trademarks | $ | 2,000 | 5 years | ||
Technology | 2,200 | 10 years | |||
Customer relationships | 3,400 | 5 years | |||
Total | $ | 7,600 |
Cash | $ | 135 | |||
Working capital | (23,450) | ||||
Property, plant and equipment | 1,087 | ||||
Acquired intangible assets | 10,102 | ||||
Other assets | 1,363 | ||||
Other liabilities | (1,363) | ||||
Goodwill | 19,459 | ||||
Fair value of purchase consideration | $ | 7,333 |
Cash | $ | 58 | |
Working capital | (16,464 | ) | |
Property, plant and equipment | 1,029 | ||
Acquired intangible assets | 9,386 | ||
Other assets | 1,285 | ||
Other liabilities | (1,285 | ) | |
Goodwill | 13,324 | ||
Fair value of purchase consideration | $ | 7,333 |
Fair Value | Weighted-Average Amortization Period | ||||||||||
Trademarks | $ | 1,122 | 3 years | ||||||||
Technology | 3,218 | 10 years | |||||||||
Customer relationships | 4,939 | 12 years | |||||||||
Non-compete agreements | 224 | 5 years | |||||||||
Backlog | 599 | 0.75 years | |||||||||
Total | $ | 10,102 |
Fair Value | Weighted-Average Amortization Period | ||||
Trademarks | $ | 635 | 3 years | ||
Technology | 2,541 | 15 years | |||
Customer relationships | 6,210 | 10 years | |||
Total | $ | 9,386 |
Cash | $ | 4,154 | |||
Working capital | (1,515) | ||||
Property, plant and equipment | 1,059 | ||||
Acquired intangible assets | 3,000 | ||||
Other assets | 508 | ||||
Other liabilities | (1,081) | ||||
Goodwill | 6,436 | ||||
Fair value of purchase consideration | $ | 12,561 |
Cash | $ | 4,154 | |
Working capital | (1,412 | ) | |
Property, plant and equipment | 1,059 | ||
Acquired intangible assets | 3,400 | ||
Other assets | 508 | ||
Other liabilities | (1,081 | ) | |
Goodwill | 5,933 | ||
Fair value of purchase consideration | $ | 12,561 |
Fair Value | Weighted-Average Amortization Period | ||||||||||
Trademarks | $ | 1,400 | Indefinite | ||||||||
Technology | 900 | 7 years | |||||||||
Customer relationships | 700 | 6 years | |||||||||
Total | $ | 3,000 |
Fair Value | Weighted-Average Amortization Period | ||||
Trademarks | $ | 1,900 | 5 years | ||
Technology | 900 | 7 years | |||
Customer relationships | 600 | 6 years | |||
Total | $ | 3,400 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Selling, general and administrative costs | $ | 16 | $ | 470 | $ | 1,564 | $ | 474 | |||||||||||||||
Cost of sales | 0 | 134 | 634 | 134 | |||||||||||||||||||
Total acquisition-related costs | $ | 16 | $ | 604 | $ | 2,198 | $ | 608 |
Renewable Energy & Conservation | Residential Products | Industrial and Infrastructure Products | Total | ||||||||||||||||||||
Balance at December 31, 2019 | $ | 77,602 | $ | 198,075 | $ | 54,028 | $ | 329,705 | |||||||||||||||
Acquired goodwill | 51,629 | 0 | 0 | 51,629 | |||||||||||||||||||
Adjustments to prior year acquisitions | 579 | 0 | 0 | 579 | |||||||||||||||||||
Foreign currency translation | 664 | 0 | (150) | 514 | |||||||||||||||||||
Balance at September 30, 2020 | $ | 130,474 | $ | 198,075 | $ | 53,878 | $ | 382,427 |
Renewable Energy & Conservation | Residential Products | Industrial and Infrastructure Products | Total | ||||||||||||
Balance at December 31, 2019 | $ | 77,602 | $ | 198,075 | $ | 54,028 | $ | 329,705 | |||||||
Acquired goodwill | 52,659 | — | — | 52,659 | |||||||||||
Adjustments to prior year acquisitions | 75 | — | — | 75 | |||||||||||
Foreign currency translation | 75 | — | (469 | ) | (394 | ) | |||||||||
Balance at March 31, 2020 | $ | 130,411 | $ | 198,075 | $ | 53,559 | $ | 382,045 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||
Trademarks | $ | 52,170 | $ | 0 | $ | 45,770 | $ | 0 | |||||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||||||||
Trademarks | 7,235 | 4,557 | 6,139 | 4,105 | |||||||||||||||||||||||||
Unpatented technology | 35,962 | 17,970 | 29,544 | 15,807 | |||||||||||||||||||||||||
Customer relationships | 79,702 | 44,723 | 71,195 | 40,294 | |||||||||||||||||||||||||
Non-compete agreements | 2,174 | 1,689 | 1,649 | 1,499 | |||||||||||||||||||||||||
Backlog | 899 | 382 | — | 0 | |||||||||||||||||||||||||
125,972 | 69,321 | 108,527 | 61,705 | ||||||||||||||||||||||||||
Total acquired intangible assets | $ | 178,142 | $ | 69,321 | $ | 154,297 | $ | 61,705 |
March 31, 2020 | December 31, 2019 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Weighted-Average Amortization Period | |||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||
Trademarks | $ | 45,770 | $ | — | $ | 45,770 | $ | — | Indefinite | ||||||||
Finite-lived intangible assets: | |||||||||||||||||
Trademarks | 8,693 | 4,239 | 6,139 | 4,105 | 3 to 15 Years | ||||||||||||
Unpatented technology | 34,289 | 16,354 | 29,544 | 15,807 | 5 to 20 Years | ||||||||||||
Customer relationships | 80,777 | 41,490 | 71,195 | 40,294 | 5 to 17 Years | ||||||||||||
Non-compete agreements | 1,649 | 1,567 | 1,649 | 1,499 | 4 to 10 Years | ||||||||||||
125,408 | 63,650 | 108,527 | 61,705 | ||||||||||||||
Total acquired intangible assets | $ | 171,178 | $ | 63,650 | $ | 154,297 | $ | 61,705 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Amortization expense | $ | 3,041 | $ | 1,840 | $ | 7,531 | $ | 5,434 |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Amortization expense | $ | 2,078 | $ | 1,797 |
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | ||||||||||||||||||||||||||||||
Amortization expense | $ | 2,247 | $ | 8,772 | $ | 8,294 | $ | 7,664 | $ | 7,132 | $ | 6,961 |
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | ||||||||||||||||||
Amortization expense | $ | 5,311 | $ | 6,937 | $ | 6,459 | $ | 5,921 | $ | 5,666 | $ | 5,566 |
Foreign Currency Translation Adjustment | Minimum pension and post retirement benefit plan adjustments | Total Pre-Tax Amount | Tax (Benefit) Expense | Accumulated Other Comprehensive (Loss) Income | |||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | (4,173) | $ | (1,939) | $ | (6,112) | $ | (721) | $ | (5,391) | |||||||||||||||||||||||||
Minimum pension and post retirement health care plan adjustments | — | 25 | 25 | 7 | 18 | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (5,898) | — | (5,898) | — | (5,898) | ||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | (10,071) | $ | (1,914) | $ | (11,985) | $ | (714) | $ | (11,271) | |||||||||||||||||||||||||
Minimum pension and post retirement health care plan adjustments | — | 24 | 24 | 6 | 18 | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 2,815 | — | 2,815 | — | 2,815 | ||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | (7,256) | $ | (1,890) | $ | (9,146) | $ | (708) | $ | (8,438) | |||||||||||||||||||||||||
Minimum pension and post retirement health care plan adjustments | — | 25 | 25 | 7 | 18 | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 2,200 | — | 2,200 | — | 2,200 | ||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | (5,056) | $ | (1,865) | $ | (6,921) | $ | (701) | $ | (6,220) | |||||||||||||||||||||||||
Foreign Currency Translation Adjustment | Minimum pension and post retirement benefit plan adjustments | Total Pre-Tax Amount | Tax (Benefit) Expense | Accumulated Other Comprehensive (Loss) Income | |||||||||||||||
Balance at December 31, 2019 | $ | (4,173 | ) | $ | (1,939 | ) | $ | (6,112 | ) | $ | (721 | ) | $ | (5,391 | ) | ||||
Minimum pension and post retirement health care plan adjustments | — | 25 | 25 | 7 | 18 | ||||||||||||||
Foreign currency translation adjustment | (5,898 | ) | — | (5,898 | ) | — | (5,898 | ) | |||||||||||
Balance at March 31, 2020 | $ | (10,071 | ) | $ | (1,914 | ) | $ | (11,985 | ) | $ | (714 | ) | $ | (11,271 | ) |
Foreign Currency Translation Adjustment | Minimum pension and post retirement benefit plan adjustments | Total Pre-Tax Amount | Tax (Benefit) Expense | Accumulated Other Comprehensive (Loss) Income | |||||||||||||||||||||||||
Balance at December 31, 2018 | $ | (5,939) | $ | (2,040) | $ | (7,979) | $ | (745) | $ | (7,234) | |||||||||||||||||||
Minimum pension and post retirement health care plan adjustments | — | 16 | 16 | 4 | 12 | ||||||||||||||||||||||||
Foreign currency translation adjustment | 842 | — | 842 | — | 842 | ||||||||||||||||||||||||
Balance at March 31, 2019 | $ | (5,097) | $ | (2,024) | $ | (7,121) | $ | (741) | $ | (6,380) | |||||||||||||||||||
Minimum pension and post retirement health care plan adjustments | — | 17 | 17 | 5 | 12 | ||||||||||||||||||||||||
Foreign currency translation adjustment | 998 | — | 998 | — | 998 | ||||||||||||||||||||||||
Balance at June 30, 2019 | $ | (4,099) | $ | (2,007) | $ | (6,106) | $ | (736) | $ | (5,370) | |||||||||||||||||||
Minimum pension and post retirement health care plan adjustments | — | 16 | 16 | 4 | 12 | ||||||||||||||||||||||||
Foreign currency translation adjustment | (664) | — | (664) | — | (664) | ||||||||||||||||||||||||
Balance at September 30, 2019 | $ | (4,763) | $ | (1,991) | $ | (6,754) | $ | (732) | $ | (6,022) | |||||||||||||||||||
Foreign Currency Translation Adjustment | Minimum pension and post retirement benefit plan adjustments | Total Pre-Tax Amount | Tax (Benefit) Expense | Accumulated Other Comprehensive (Loss) Income | |||||||||||||||
Balance at December 31, 2018 | $ | (5,939 | ) | $ | (2,040 | ) | $ | (7,979 | ) | $ | (745 | ) | $ | (7,234 | ) | ||||
Minimum pension and post retirement health care plan adjustments | — | 16 | 16 | 4 | 12 | ||||||||||||||
Foreign currency translation adjustment | 842 | — | 842 | — | 842 | ||||||||||||||
Balance at March 31, 2019 | $ | (5,097 | ) | $ | (2,024 | ) | $ | (7,121 | ) | $ | (741 | ) | $ | (6,380 | ) |
2020 | 2019 | ||||||||||||
Awards | Number of Awards (1) | Weighted Average Grant Date Fair Value | Number of Awards (2) | Weighted Average Grant Date Fair Value | |||||||||
Performance stock units | 123,870 | $ | 53.29 | 145,420 | $ | 40.55 | |||||||
Restricted stock units | 42,101 | $ | 52.31 | 117,821 | $ | 39.37 |
2020 | 2019 | ||||||||||||||||||||||
Awards | Number of Awards | Weighted Average Grant Date Fair Value | Number of Awards (2) | Weighted Average Grant Date Fair Value | |||||||||||||||||||
Performance stock units (1) | 129,513 | $ | 53.30 | 183,908 | $ | 40.49 | |||||||||||||||||
Restricted stock units | 74,247 | $ | 56.24 | 144,172 | $ | 39.43 | |||||||||||||||||
Deferred stock units | 12,402 | $ | 45.98 | 7,509 | $ | 37.95 | |||||||||||||||||
Common shares | 4,134 | $ | 45.98 | 7,509 | $ | 37.95 | |||||||||||||||||
2020 | 2019 | ||||||||||
Restricted stock units credited | 54,974 | 51,381 | |||||||||
Share-based liabilities paid (in thousands) | $ | 4,433 | $ | 5,742 |
2020 | 2019 | ||||||
Restricted stock units credited | 52,411 | 51,608 | |||||
Share-based liabilities paid (in thousands) | $ | 4,433 | $ | 4,933 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Renewable Energy and Conservation | $ | 18 | $ | 94 | |||
Residential Products | 221 | 151 | |||||
Industrial and Infrastructure Products | (2 | ) | (33 | ) | |||
Corporate | 54 | 7 | |||||
Total exit activity costs | $ | 291 | $ | 219 |
Three months ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Inventory write-downs &/or asset impairment charges | Exit activity costs | Total | Inventory write-downs &/or asset impairment (recoveries) charges, net | Exit activity costs | Total | ||||||||||||||||||||||||||||||
Renewable Energy and Conservation | $ | 0 | $ | 172 | $ | 172 | $ | (9) | $ | 46 | $ | 37 | |||||||||||||||||||||||
Residential Products | 21 | 165 | 186 | 478 | 2,937 | 3,415 | |||||||||||||||||||||||||||||
Industrial and Infrastructure Products | 138 | 114 | 252 | 10 | 275 | 285 | |||||||||||||||||||||||||||||
Corporate | 0 | 17 | 17 | 0 | 246 | 246 | |||||||||||||||||||||||||||||
Total exit activity costs & asset impairments | $ | 159 | $ | 468 | $ | 627 | $ | 479 | $ | 3,504 | $ | 3,983 |
Nine months ended September 30, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Inventory write-downs &/or asset impairment charges | Exit activity costs | Total | Inventory write-downs &/or asset impairment (recoveries) charges, net | Exit activity costs | Total | ||||||||||||||||||||||||||||||
Renewable Energy and Conservation | $ | 72 | $ | 506 | $ | 578 | $ | (9) | $ | 45 | $ | 36 | |||||||||||||||||||||||
Residential Products | 21 | 649 | 670 | 478 | 3,307 | 3,785 | |||||||||||||||||||||||||||||
Industrial and Infrastructure Products | 412 | 152 | 564 | 10 | 1,588 | 1,598 | |||||||||||||||||||||||||||||
Corporate | 0 | 116 | 116 | 0 | 919 | 919 | |||||||||||||||||||||||||||||
Total exit activity costs & asset impairments | $ | 505 | $ | 1,423 | $ | 1,928 | $ | 479 | $ | 5,859 | $ | 6,338 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Cost of sales | $ | 325 | $ | 683 | $ | 1,198 | $ | 968 | |||||||||||||||
Selling, general, and administrative expense | 302 | 3,300 | 730 | 5,370 | |||||||||||||||||||
Total asset impairment and exit activity charges | $ | 627 | $ | 3,983 | $ | 1,928 | $ | 6,338 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Cost of sales | $ | 87 | $ | (34 | ) | ||
Selling, general, and administrative expense | 204 | 253 | |||||
Net exit activity charges | $ | 291 | $ | 219 |
2020 | 2019 | 2020 | 2019 | |||||||||||||||
Balance at January 1 | $ | 5,449 | $ | 1,923 | Balance at January 1 | $ | 5,449 | $ | 1,923 | |||||||||
Exit activity costs recognized | 291 | 219 | Exit activity costs recognized | 1,423 | 5,859 | |||||||||||||
Cash payments | (4,728 | ) | (550 | ) | Cash payments | (6,179) | (3,032) | |||||||||||
Balance at March 31 | $ | 1,012 | $ | 1,592 | ||||||||||||||
Balance at September 30 | Balance at September 30 | $ | 693 | $ | 4,750 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Provision for income taxes | $ | 2,986 | $ | 1,571 | |||
Effective tax rate | 19.8 | % | 19.8 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Provision for income taxes | $ | 9,828 | $ | 6,843 | $ | 21,686 | $ | 14,901 | |||||||||||||||
Effective tax rate | 22.5 | % | 21.8 | % | 22.9 | % | 22.7 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income available to common shareholders | $ | 33,760 | $ | 24,476 | $ | 73,111 | $ | 50,734 | |||||||||||||||
Denominator for basic earnings per share: | |||||||||||||||||||||||
Weighted average shares outstanding | 32,635 | 32,470 | 32,606 | 32,357 | |||||||||||||||||||
Denominator for diluted earnings per share: | |||||||||||||||||||||||
Weighted average shares outstanding | 32,635 | 32,470 | 32,606 | 32,357 | |||||||||||||||||||
Common stock options and stock units | 334 | 300 | 296 | 320 | |||||||||||||||||||
Weighted average shares and conversions | 32,969 | 32,770 | 32,902 | 32,677 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Numerator: | |||||||
Net income available to common shareholders | $ | 12,059 | $ | 6,345 | |||
Denominator for basic earnings per share: | |||||||
Weighted average shares outstanding | 32,586 | 32,279 | |||||
Denominator for diluted earnings per share: | |||||||
Weighted average shares outstanding | 32,586 | 32,279 | |||||
Common stock options and stock units | 297 | 338 | |||||
Weighted average shares and conversions | 32,883 | 32,617 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Renewable Energy and Conservation | $ | 128,258 | $ | 116,771 | $ | 323,014 | $ | 261,612 | |||||||||||||||
Residential Products | 151,718 | 126,275 | 394,609 | 360,417 | |||||||||||||||||||
Industrial and Infrastructure Products | 49,767 | 56,361 | 147,831 | 168,096 | |||||||||||||||||||
Less: Intersegment sales | (78) | (171) | (536) | (817) | |||||||||||||||||||
Net Industrial and Infrastructure Products | 49,689 | 56,190 | 147,295 | 167,279 | |||||||||||||||||||
Total consolidated net sales | $ | 329,665 | $ | 299,236 | $ | 864,918 | $ | 789,308 | |||||||||||||||
Income from operations: | |||||||||||||||||||||||
Renewable Energy and Conservation | $ | 14,195 | $ | 19,633 | $ | 29,082 | $ | 30,914 | |||||||||||||||
Residential Products | 32,454 | 17,012 | 74,143 | 49,880 | |||||||||||||||||||
Industrial and Infrastructure Products | 5,199 | 5,462 | 15,832 | 13,660 | |||||||||||||||||||
Unallocated Corporate Expenses | (7,989) | (10,687) | (25,417) | (25,862) | |||||||||||||||||||
Total consolidated income from operations | $ | 43,859 | $ | 31,420 | $ | 93,640 | $ | 68,592 |
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Net sales: | |||||||
Renewable Energy and Conservation | $ | 96,497 | $ | 68,837 | |||
Residential Products | 103,419 | 103,709 | |||||
Industrial and Infrastructure Products | 49,801 | 55,188 | |||||
Less: Intersegment sales | (278 | ) | (317 | ) | |||
Net Industrial and Infrastructure Products | 49,523 | 54,871 | |||||
Total consolidated net sales | $ | 249,439 | $ | 227,417 | |||
Income from operations: | |||||||
Renewable Energy and Conservation | $ | 5,699 | $ | 1,632 | |||
Residential Products | 13,725 | 12,090 | |||||
Industrial and Infrastructure Products | 3,989 | 4,129 | |||||
Unallocated Corporate Expenses | (8,223 | ) | (7,285 | ) | |||
Total consolidated income from operations | $ | 15,190 | $ | 10,566 |
Three Months Ended March 31, 2020 | Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||
Renewable Energy and Conservation | Residential Products | Industrial and Infrastructure Products | Total | Renewable Energy and Conservation | Residential Products | Industrial and Infrastructure Products | Total | |||||||||||||||||||||||||||||||
Net sales: | Net sales: | |||||||||||||||||||||||||||||||||||||
Point in Time | $ | 14,588 | $ | 102,331 | $ | 39,495 | $ | 156,414 | Point in Time | $ | 29,632 | $ | 150,608 | $ | 39,251 | $ | 219,491 | |||||||||||||||||||||
Over Time | 81,909 | 1,088 | 10,028 | 93,025 | Over Time | 98,626 | 1,110 | 10,438 | 110,174 | |||||||||||||||||||||||||||||
Total net sales | $ | 96,497 | $ | 103,419 | $ | 49,523 | $ | 249,439 | Total net sales | $ | 128,258 | $ | 151,718 | $ | 49,689 | $ | 329,665 |
Three Months Ended March 31, 2019 | |||||||||||||||
Renewable Energy and Conservation | Residential Products | Industrial and Infrastructure Products | Total | ||||||||||||
Net sales: | |||||||||||||||
Point in Time | $ | 7,290 | $ | 102,892 | $ | 45,287 | $ | 155,469 | |||||||
Over Time | 61,547 | 817 | 9,584 | 71,948 | |||||||||||
Total net sales | $ | 68,837 | $ | 103,709 | $ | 54,871 | $ | 227,417 |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||
Renewable Energy and Conservation | Residential Products | Industrial and Infrastructure Products | Total | ||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Point in Time | $ | 12,682 | $ | 125,350 | $ | 46,781 | $ | 184,813 | |||||||||||||||
Over Time | 104,089 | 925 | 9,409 | 114,423 | |||||||||||||||||||
Total net sales | $ | 116,771 | $ | 126,275 | $ | 56,190 | $ | 299,236 |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||
Renewable Energy and Conservation | Residential Products | Industrial and Infrastructure Products | Total | ||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Point in Time | $ | 56,636 | $ | 391,227 | $ | 115,925 | $ | 563,788 | |||||||||||||||
Over Time | 266,378 | 3,382 | 31,370 | 301,130 | |||||||||||||||||||
Total net sales | $ | 323,014 | $ | 394,609 | $ | 147,295 | $ | 864,918 |
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||
Renewable Energy and Conservation | Residential Products | Industrial and Infrastructure Products | Total | ||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Point in Time | $ | 28,441 | $ | 357,808 | $ | 138,383 | $ | 524,632 | |||||||||||||||
Over Time | 233,171 | 2,609 | 28,896 | 264,676 | |||||||||||||||||||
Total net sales | $ | 261,612 | $ | 360,417 | $ | 167,279 | $ | 789,308 |
2020 | 2019 | ||||||||||||||||||||||
Net sales | $ | 329,665 | 100.0 | % | $ | 299,236 | 100.0 | % | |||||||||||||||
Cost of sales | 244,222 | 74.1 | % | 222,658 | 74.4 | % | |||||||||||||||||
Gross profit | 85,443 | 25.9 | % | 76,578 | 25.6 | % | |||||||||||||||||
Selling, general, and administrative expense | 41,584 | 12.6 | % | 45,158 | 15.1 | % | |||||||||||||||||
Income from operations | 43,859 | 13.3 | % | 31,420 | 10.5 | % | |||||||||||||||||
Interest expense | 218 | 0.1 | % | 17 | 0.0 | % | |||||||||||||||||
Other expense | 53 | 0.0 | % | 84 | 0.0 | % | |||||||||||||||||
Income before taxes | 43,588 | 13.2 | % | 31,319 | 10.5 | % | |||||||||||||||||
Provision for income taxes | 9,828 | 3.0 | % | 6,843 | 2.3 | % | |||||||||||||||||
Net income | $ | 33,760 | 10.2 | % | $ | 24,476 | 8.2 | % |
2020 | 2019 | ||||||||||||
Net sales | $ | 249,439 | 100.0 | % | $ | 227,417 | 100.0 | % | |||||
Cost of sales | 193,052 | 77.4 | % | 183,517 | 80.7 | % | |||||||
Gross profit | 56,387 | 22.6 | % | 43,900 | 19.3 | % | |||||||
Selling, general, and administrative expense | 41,197 | 16.5 | % | 33,334 | 14.7 | % | |||||||
Income from operations | 15,190 | 6.1 | % | 10,566 | 4.6 | % | |||||||
Interest (income) expense | (47 | ) | 0.0 | % | 2,061 | 0.9 | % | ||||||
Other expense | 192 | 0.1 | % | 589 | 0.2 | % | |||||||
Income before taxes | 15,045 | 6.0 | % | 7,916 | 3.5 | % | |||||||
Provision for income taxes | 2,986 | 1.2 | % | 1,571 | 0.7 | % | |||||||
Net income | $ | 12,059 | 4.8 | % | $ | 6,345 | 2.8 | % |
Change due to | |||||||||||||||||||||||||||||||||||
2020 | 2019 | Total Change | Acquisitions | Operations | |||||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||||||||
Renewable Energy and Conservation | $ | 128,258 | $ | 116,771 | $ | 11,487 | $ | 24,061 | $ | (12,574) | |||||||||||||||||||||||||
Residential Products | 151,718 | 126,275 | 25,443 | — | 25,443 | ||||||||||||||||||||||||||||||
Industrial and Infrastructure Products | 49,767 | 56,361 | (6,594) | — | (6,594) | ||||||||||||||||||||||||||||||
Less: Intersegment sales | (78) | (171) | 93 | — | 93 | ||||||||||||||||||||||||||||||
Net Industrial and Infrastructure Products | 49,689 | 56,190 | (6,501) | — | (6,501) | ||||||||||||||||||||||||||||||
Consolidated | $ | 329,665 | $ | 299,236 | $ | 30,429 | $ | 24,061 | $ | 6,368 |
2020 | 2019 | Total Change | |||||||||
Net sales: | |||||||||||
Renewable Energy and Conservation | $ | 96,497 | $ | 68,837 | $ | 27,660 | |||||
Residential Products | 103,419 | 103,709 | (290 | ) | |||||||
Industrial and Infrastructure Products | 49,801 | 55,188 | (5,387 | ) | |||||||
Less: Intersegment sales | (278 | ) | (317 | ) | 39 | ||||||
Net Industrial and Infrastructure Products | 49,523 | 54,871 | (5,348 | ) | |||||||
Consolidated | $ | 249,439 | $ | 227,417 | $ | 22,022 |
2020 | 2019 | Total Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income from operations: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Renewable Energy and Conservation | $ | 14,195 | 11.1 | % | $ | 19,633 | 16.8 | % | $ | (5,438) | |||||||||||||||||||||||||||||||||||||||||||
Residential Products | 32,454 | 21.4 | % | 17,012 | 13.5 | % | 15,442 | ||||||||||||||||||||||||||||||||||||||||||||||
Industrial and Infrastructure Products | 5,199 | 10.5 | % | 5,462 | 9.7 | % | (263) | ||||||||||||||||||||||||||||||||||||||||||||||
Unallocated Corporate Expenses | (7,989) | (2.4) | % | (10,687) | (3.6) | % | 2,698 | ||||||||||||||||||||||||||||||||||||||||||||||
Consolidated income from operations | $ | 43,859 | 13.3 | % | $ | 31,420 | 10.5 | % | $ | 12,439 |
2020 | 2019 | Total Change | |||||||||||||||
Income from operations: | |||||||||||||||||
Renewable Energy and Conservation | $ | 5,699 | 5.9 | % | $ | 1,632 | 2.4 | % | $ | 4,067 | |||||||
Residential Products | 13,725 | 13.3 | % | 12,090 | 11.7 | % | 1,635 | ||||||||||
Industrial and Infrastructure Products | 3,989 | 8.1 | % | 4,129 | 7.5 | % | (140 | ) | |||||||||
Unallocated Corporate Expenses | (8,223 | ) | (3.3 | )% | (7,285 | ) | (3.2 | )% | (938 | ) | |||||||
Consolidated income from operations | $ | 15,190 | 6.1 | % | $ | 10,566 | 4.6 | % | $ | 4,624 |
2020 | 2019 | ||||||||||||||||||||||
Net sales | $ | 864,918 | 100.0 | % | $ | 789,308 | 100.0 | % | |||||||||||||||
Cost of sales | 650,830 | 75.2 | % | 605,272 | 76.7 | % | |||||||||||||||||
Gross profit | 214,088 | 24.8 | % | 184,036 | 23.3 | % | |||||||||||||||||
Selling, general, and administrative expense | 120,448 | 14.0 | % | 115,444 | 14.6 | % | |||||||||||||||||
Income from operations | 93,640 | 10.8 | % | 68,592 | 8.7 | % | |||||||||||||||||
Interest expense | 385 | 0.0 | % | 2,297 | 0.3 | % | |||||||||||||||||
Other (income) expense | (1,542) | (0.2) | % | 660 | 0.1 | % | |||||||||||||||||
Income before taxes | 94,797 | 11.0 | % | 65,635 | 8.3 | % | |||||||||||||||||
Provision for income taxes | 21,686 | 2.5 | % | 14,901 | 1.9 | % | |||||||||||||||||
Net income | $ | 73,111 | 8.5 | % | $ | 50,734 | 6.4 | % |
Change due to | |||||||||||||||||||||||||||||||||||
2020 | 2019 | Total Change | Acquisitions | Operations | |||||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||||||||
Renewable Energy and Conservation | $ | 323,014 | $ | 261,612 | $ | 61,402 | $ | 58,858 | $ | 2,544 | |||||||||||||||||||||||||
Residential Products | 394,609 | 360,417 | 34,192 | — | 34,192 | ||||||||||||||||||||||||||||||
Industrial and Infrastructure Products | 147,831 | 168,096 | (20,265) | — | (20,265) | ||||||||||||||||||||||||||||||
Less: Intersegment sales | (536) | (817) | 281 | — | 281 | ||||||||||||||||||||||||||||||
Net Industrial and Infrastructure Products | 147,295 | 167,279 | (19,984) | — | (19,984) | ||||||||||||||||||||||||||||||
Consolidated | $ | 864,918 | $ | 789,308 | $ | 75,610 | $ | 58,858 | $ | 16,752 |
2020 | 2019 | Total Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income from operations: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Renewable Energy and Conservation | $ | 29,082 | 9.0 | % | $ | 30,914 | 11.8 | % | $ | (1,832) | |||||||||||||||||||||||||||||||||||||||||||
Residential Products | 74,143 | 18.8 | % | 49,880 | 13.8 | % | 24,263 | ||||||||||||||||||||||||||||||||||||||||||||||
Industrial and Infrastructure Products | 15,832 | 10.7 | % | 13,660 | 8.2 | % | 2,172 | ||||||||||||||||||||||||||||||||||||||||||||||
Unallocated Corporate Expenses | (25,417) | (2.9) | % | (25,862) | (3.3) | % | 445 | ||||||||||||||||||||||||||||||||||||||||||||||
Consolidated income from operations | $ | 93,640 | 10.8 | % | $ | 68,592 | 8.7 | % | $ | 25,048 |
(in thousands) | September 30, 2020 | December 31, 2019 | ||||||||||||
Cash and cash equivalents | $ | 179,816 | $ | 191,363 | ||||||||||
Availability on revolving credit facility | 394,100 | 393,991 | ||||||||||||
$ | 573,916 | $ | 585,354 |
(in thousands) | March 31, 2020 | December 31, 2019 | ||||||
Cash and cash equivalents | $ | 85,966 | $ | 191,363 | ||||
Availability on revolving credit facility | 394,100 | 393,991 | ||||||
$ | 480,066 | $ | 585,354 |
2020 | 2019 | ||||||||||
Cash provided by (used in): | |||||||||||
Operating activities of operations | $ | 56,194 | $ | 72,494 | |||||||
Investing activities of operations | (61,152) | (16,281) | |||||||||
Financing activities of operations | (6,031) | (216,330) | |||||||||
Effect of foreign exchange rate changes | (558) | 729 | |||||||||
Net decrease in cash and cash equivalents | $ | (11,547) | $ | (159,388) |
2020 | 2019 | ||||||
Cash (used in) provided by: | |||||||
Operating activities of continuing operations | $ | (43,012 | ) | $ | (37,488 | ) | |
Investing activities of continuing operations | (57,309 | ) | (3,374 | ) | |||
Financing activities of continuing operations | (4,160 | ) | (213,247 | ) | |||
Effect of foreign exchange rate changes | (916 | ) | 612 | ||||
Net decrease in cash and cash equivalents | $ | (105,397 | ) | $ | (253,497 | ) |
Certification of President and Chief Executive Officer pursuant to Section 302 of the Sarbanes–Oxley Act of 2002. | ||||||||
Certification of Senior Vice President and Chief Financial Officer pursuant to Section 302 of the Sarbanes–Oxley Act of 2002. | ||||||||
Certification of the President and Chief Executive Officer pursuant to Title 18, United States Code, Section 1350, as adopted pursuant to Section 906 of the Sarbanes–Oxley Act of 2002. | ||||||||
Certification of the Senior Vice President and Chief Financial Officer pursuant to Title 18, United States Code, Section 1350, as adopted pursuant to Section 906 of the Sarbanes–Oxley Act of 2002. | ||||||||
101.INS | XBRL Instance Document * | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document * | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document * | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document * | |||||||
101.PRA | XBRL Taxonomy Extension Presentation Linkbase Document * | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document * |
* | Submitted electronically with this Quarterly Report on Form 10-Q. |
/s/ William T. Bosway | ||
William T. Bosway | ||
President and Chief Executive Officer |
/s/ Timothy F. Murphy | ||
Timothy F. Murphy | ||
Senior Vice President and Chief Financial Officer |