☒ | 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 | 45-3707650 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
495 South High Street, Suite 50 Columbus, Ohio | 43215 | |
(Address of principal executive offices) | (Zip Code) |
(Section Non-accelerated filer ☐
Securities registered pursuant to Section 12(b) of the Act:
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1 | ||||
1 | ||||
28 | ||||
36 | ||||
3 7 | ||||
37 | ||||
37 | ||||
37 | ||||
3 8 | ||||
38 | ||||
38 | ||||
38 | ||||
3 9 | ||||
40 |
March 31, | December 31, | |||||||
2019 | 2018 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 88,146 | $ | 90,442 | ||||
Investments | 10,026 | 10,060 | ||||||
Accounts receivable (less allowance for doubtful accounts of $5,442 and $5,085 at March 31, 2019 and December 31, 2018, respectively | 216,997 | 214,121 | ||||||
Inventories | 60,654 | 61,162 | ||||||
Other current assets | 32,473 | 35,760 | ||||||
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Total current assets | 408,296 | 411,545 | �� | |||||
Property and equipment, net | 91,391 | 90,117 | ||||||
Operating leaseright-of-use assets | 45,280 | — | ||||||
Goodwill | 174,959 | 173,049 | ||||||
Intangibles, net | 147,409 | 149,790 | ||||||
Othernon-current assets | 10,374 | 10,157 | ||||||
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Total assets | $ | 877,709 | $ | 834,658 | ||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | 23,925 | $ | 22,642 | ||||
Current maturities of operating lease obligations | 14,241 | — | ||||||
Current maturities of finance lease obligations | 4,328 | 4,806 | ||||||
Accounts payable | 88,872 | 96,949 | ||||||
Accrued compensation | 22,371 | 27,923 | ||||||
Other current liabilities | 28,680 | 29,366 | ||||||
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Total current liabilities | 182,417 | 181,686 | ||||||
Long-term debt | 430,460 | 432,182 | ||||||
Operating lease obligations | 30,682 | — | ||||||
Finance lease obligations | 3,974 | 3,824 | ||||||
Deferred income taxes | 5,774 | 6,695 | ||||||
Other long-term liabilities | 33,801 | 27,773 | ||||||
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Total liabilities | 687,108 | 652,160 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity | ||||||||
Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | — | — | ||||||
Common stock; $0.01 par value: 100,000,000 authorized, 32,780,967 and 32,723,972 issued and 29,971,963 and 29,915,611 shares outstanding at March 31, 2019 and December 31, 2018, respectively | 328 | 327 | ||||||
Additional paid in capital | 183,836 | 181,815 | ||||||
Retained earnings | 114,046 | 105,212 | ||||||
Treasury stock; at cost: 2,809,004 and 2,808,361 shares at March 31, 2019 and December 31, 2018, respectively | (104,429 | ) | (104,425 | ) | ||||
Accumulated other comprehensive loss | (3,180 | ) | (431 | ) | ||||
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Total stockholders’ equity | 190,601 | 182,498 | ||||||
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Total liabilities and stockholders’ equity | $ | 877,709 | $ | 834,658 | ||||
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September 30, | December 31, | |||||||
2019 | 2018 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 234,950 | $ | 90,442 | ||||
Investments | 4,980 | 10,060 | ||||||
Accounts receivable (less allowance for doubtful accounts of $6,712 and $5,085 at September 30, 2019 and December 31, 2018, respectively) | 242,065 | 214,121 | ||||||
Inventories | 63,547 | 61,162 | ||||||
Other current assets | 32,955 | 35,760 | ||||||
Total current assets | 578,497 | 411,545 | ||||||
Property and equipment, net | 102,148 | 90,117 | ||||||
Operating lease right-of-use assets | 42,553 | — | ||||||
Goodwill | 184,574 | 173,049 | ||||||
Intangibles, net | 144,321 | 149,790 | ||||||
Other non-current assets | 11,589 | 10,157 | ||||||
Total assets | $ | 1,063,682 | $ | 834,658 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | 22,734 | $ | 22,642 | ||||
Current maturities of operating lease obligations | 15,032 | — | ||||||
Current maturities of finance lease obligations | 3,133 | 4,806 | ||||||
Accounts payable | 100,181 | 96,949 | ||||||
Accrued compensation | 32,793 | 27,923 | ||||||
Other current liabilities | 41,576 | 29,366 | ||||||
Total current liabilitie s | 215,449 | 181,686 | ||||||
Long-term debt | 542,510 | 432,182 | ||||||
Operating lease obligations | 27,129 | — | ||||||
Finance lease obligations | 3,682 | 3,824 | ||||||
Deferred income taxes | 3,833 | 6,695 | ||||||
Other long-term liabilities | 43,565 | 27,773 | ||||||
Total liabilities | 836,168 | 652,160 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity | ||||||||
Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | — | — | ||||||
Common stock; $0.01 par value: 100,000,000 authorized, 32,871,504 and 32,723,972 issued and 30,016,749 and 29,915,611 shares outstanding at September 30, 2019 and December 31, 2018, respectively | 329 | 327 | ||||||
Additional paid in capital | 188,216 | 181,815 | ||||||
Retained earnings | 154,177 | 105,212 | ||||||
Treasury stock; at cost: 2,854,755 and 2,808,361 shares at September 30, 2019 and December 31, 2018, respectively | (106,756 | ) | (104,425 | ) | ||||
Accumulated other comprehensive loss | (8,452 | ) | (431 | ) | ||||
Total stockholders’ equity | 227,514 | 182,498 | ||||||
Total liabilities and stockholders’ equity | $ | 1,063,682 | $ | 834,658 | ||||
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Net revenue | $ | 342,135 | $ | 301,728 | ||||
Cost of sales | 252,697 | 221,752 | ||||||
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Gross profit | 89,438 | 79,976 | ||||||
Operating expenses | ||||||||
Selling | 17,130 | 15,846 | ||||||
Administrative | 48,431 | 44,203 | ||||||
Amortization | 5,888 | 7,128 | ||||||
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Operating income | 17,989 | 12,799 | ||||||
Other expense | ||||||||
Interest expense, net | 5,676 | 4,040 | ||||||
Other | 125 | 122 | ||||||
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Income before income taxes | 12,188 | 8,637 | ||||||
Income tax provision | 3,354 | 2,243 | ||||||
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Net income | $ | 8,834 | $ | 6,394 | ||||
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Other comprehensive (loss) income, net of tax: | ||||||||
Unrealized (loss) gain on cash flow hedge, net of tax benefit (provision) of $921 and ($386) for the three months ended March 31, 2019 and 2018, respectively | (2,749 | ) | 1,160 | |||||
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Comprehensive income | $ | 6,085 | $ | 7,554 | ||||
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Basic and diluted net income per share | $ | 0.30 | $ | 0.20 | ||||
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Weighted average shares outstanding: | ||||||||
Basic | 29,679,884 | 31,548,745 | ||||||
Diluted | 29,806,653 | 31,772,581 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net revenue | $ | 396,449 | $ | 348,999 | $ | 1,110,398 | $ | 983,311 | ||||||||
Cost of sales | 278,362 | 251,665 | 795,616 | 710,358 | ||||||||||||
Gross profit | 118,087 | 97,334 | 314,782 | 272,953 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling | 19,398 | 17,434 | 54,431 | 49,300 | ||||||||||||
Administrative | 55,098 | 48,337 | 156,022 | 137,511 | ||||||||||||
Amortization | 6,156 | 5,228 | 18,065 | 19,678 | ||||||||||||
Operating income | 37,435 | 26,335 | 86,264 | 66,464 | ||||||||||||
Other expense | ||||||||||||||||
Interest expense, net | 8,458 | 5,282 | 19,783 | 15,013 | ||||||||||||
Other | 155 | 132 | 381 | 417 | ||||||||||||
Income before income taxes | 28,822 | 20,921 | 66,100 | 51,034 | ||||||||||||
Income tax provision | 7,610 | 5,358 | 17,135 | 12,762 | ||||||||||||
Net income | $ | 21,212 | $ | 15,563 | $ | 48,965 | $ | 38,272 | ||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||
Unrealized (loss) gain on cash flow hedge, net of tax benefit (provision) of $575 and ($278) for the three months ended September 30, 2019 and 2018, respectively, and $2,676 and ($822) for the nine months ended September 30, 2019 and 2018, respectively | (1,726 | ) | 818 | (8,021 | ) | 2,453 | ||||||||||
Comprehensive income | $ | 19,486 | $ | 16,381 | $ | 40,944 | $ | 40,725 | ||||||||
Basic net income per share | $ | 0.71 | $ | 0.50 | $ | 1.65 | $ | 1.22 | ||||||||
Diluted net income per share | $ | 0.71 | $ | 0.50 | $ | 1.64 | $ | 1.21 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 29,785,548 | 31,229,086 | 29,741,555 | 31,373,871 | ||||||||||||
Diluted | 29,877,056 | 31,312,756 | 29,839,873 | 31,512,104 |
Additional | Accumulated Other | |||||||||||||||||||||||||||||||
Common Stock | Paid In | Retained | Treasury Stock | Comprehensive | Stockholders’ | |||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | Income | Equity | |||||||||||||||||||||||||
BALANCE—January 1, 2018 | 32,524,934 | $ | 325 | $ | 174,043 | $ | 48,434 | (662,788 | ) | $ | (12,781 | ) | $ | 507 | $ | 210,528 | ||||||||||||||||
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Net income | 6,394 | 6,394 | ||||||||||||||||||||||||||||||
Cumulative effect of accounting changes, net of tax | 2,776 | 112 | 2,888 | |||||||||||||||||||||||||||||
Issuance of common stock awards to employees | 70,390 | 1 | (1 | ) | — | |||||||||||||||||||||||||||
Surrender of common stock awards by employees | (1,212 | ) | (56 | ) | (56 | ) | ||||||||||||||||||||||||||
Share-based compensation expense | 2,307 | 2,307 | ||||||||||||||||||||||||||||||
Common stock repurchase | (412,717 | ) | (24,640 | ) | (24,640 | ) | ||||||||||||||||||||||||||
Other comprehensive income, net of tax | 1,160 | 1,160 | ||||||||||||||||||||||||||||||
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BALANCE—March 31, 2018 | 32,595,324 | $ | 326 | $ | 176,349 | $ | 57,604 | (1,076,717 | ) | $ | (37,477 | ) | $ | 1,779 | $ | 198,581 | ||||||||||||||||
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Additional | Accumulated Other | |||||||||||||||||||||||||||||||
Common Stock | Paid In | Retained | Treasury Stock | Comprehensive | Stockholders’ | |||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | Loss | Equity | |||||||||||||||||||||||||
BALANCE—January 1, 2019 | 32,723,972 | $ | 327 | $ | 181,815 | $ | 105,212 | (2,808,361 | ) | $ | (104,425 | ) | $ | (431 | ) | $ | 182,498 | |||||||||||||||
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Net income | 8,834 | 8,834 | ||||||||||||||||||||||||||||||
Issuance of common stock awards to employees | 56,995 | 1 | (1 | ) | — | |||||||||||||||||||||||||||
Surrender of common stock awards by employees | (643 | ) | (4 | ) | (4 | ) | ||||||||||||||||||||||||||
Share-based compensation expense | 2,022 | 2,022 | ||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (2,749 | ) | (2,749 | ) | ||||||||||||||||||||||||||||
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BALANCE—March 31, 2019 | 32,780,967 | $ | 328 | $ | 183,836 | $ | 114,046 | (2,809,004 | ) | $ | (104,429 | ) | $ | (3,180 | ) | $ | 190,601 | |||||||||||||||
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Additional | Accumulated Other | |||||||||||||||||||||||||||||||
Common Stock | Paid In | Retained | Treasury Stock | Comprehensive | Stockholders’ | |||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | Income | Equity | |||||||||||||||||||||||||
BALANCE - July 1, 2018 | 32,723,972 | $ | 327 | $ | 178,266 | $ | 73,919 | (1,117,623 | ) | $ | (39,703 | ) | $ | 2,254 | $ | 215,063 | ||||||||||||||||
Net income | 15,563 | 15,563 | ||||||||||||||||||||||||||||||
Cumulative effect of accounting changes, net of tax | (746 | ) | (746 | ) | ||||||||||||||||||||||||||||
Issuance of common stock awards to employees | — | |||||||||||||||||||||||||||||||
Surrender of common stock awards by employees | (681 | ) | — | |||||||||||||||||||||||||||||
Share-based compensation expense | 1,765 | 1,765 | ||||||||||||||||||||||||||||||
Share-based compensation issued to directors | 75 | 75 | ||||||||||||||||||||||||||||||
Common stock repurchase | (380,694 | ) | (18,187 | ) | (18,187 | ) | ||||||||||||||||||||||||||
Other comprehensive income, net of tax | 818 | 818 | ||||||||||||||||||||||||||||||
BALANCE - September 30, 2018 | 32,723,972 | $ | 327 | $ | 180,106 | $ | 88,736 | (1,498,998 | ) | $ | (57,890 | ) | $ | 3,072 | $ | 214,351 | ||||||||||||||||
Additional | Accumulated Other | |||||||||||||||||||||||||||||||
Common Stock | Paid In | Retained | Treasury Stock | Comprehensive | Stockholders’ | |||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | Loss | Equity | |||||||||||||||||||||||||
BALANCE - July 1, 2019 | 32,871,504 | $ | 329 | $ | 186,182 | $ | 132,965 | (2,854,496 | ) | $ | (106,748 | ) | $ | (6,726 | ) | $ | 206,002 | |||||||||||||||
Net income | 21,212 | 21,212 | ||||||||||||||||||||||||||||||
Issuance of common stock awards to employees | — | |||||||||||||||||||||||||||||||
Surrender of common stock awards by employees | (259 | ) | (8 | ) | (8 | ) | ||||||||||||||||||||||||||
Share-based compensation expense | 1,933 | 1,933 | ||||||||||||||||||||||||||||||
Share-based compensation issued to directors | 101 | 101 | ||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (1,726 | ) | (1,726 | ) | ||||||||||||||||||||||||||||
BALANCE - September 30, 2019 | 32,871,504 | $ | 329 | $ | 188,216 | $ | 154,177 | (2,854,755 | ) | $ | (106,756 | ) | $ | (8,452 | ) | $ | 227,514 | |||||||||||||||
Additional | Accumulated Other | |||||||||||||||||||||||||||||||
Common Stock | Paid In | Retained | Treasury Stock | Comprehensive | Stockholders’ | |||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | Income | Equity | |||||||||||||||||||||||||
BALANCE - January 1, 2018 | 32,524,934 | $ | 325 | $ | 174,043 | $ | 48,434 | (662,788 | ) | $ | (12,781 | ) | $ | 507 | $ | 210,528 | ||||||||||||||||
Net income | 38,272 | 38,272 | ||||||||||||||||||||||||||||||
Cumulative effect of accounting changes, net of tax | 2,030 | 112 | 2,142 | |||||||||||||||||||||||||||||
Issuance of common stock awards to employees | 194,093 | 2 | (2 | ) | — | |||||||||||||||||||||||||||
Surrender of common stock awards by employees | (42,799 | ) | (2,282 | ) | (2,282 | ) | ||||||||||||||||||||||||||
Share-based compensation expense | 5,965 | 5,965 | ||||||||||||||||||||||||||||||
Share-based compensation issued to directors | 4,945 | 100 | 100 | |||||||||||||||||||||||||||||
Common stock repurchase | (793,411 | ) | (42,827 | ) | (42,827 | ) | ||||||||||||||||||||||||||
Other comprehensive income, net of tax | 2,453 | 2,453 | ||||||||||||||||||||||||||||||
BALANCE - September 30, 2018 | 32,723,972 | $ | 327 | $ | 180,106 | $ | 88,736 | (1,498,998 | ) | $ | (57,890 | ) | $ | 3,072 | $ | 214,351 | ||||||||||||||||
Additional | Accumulated Other | |||||||||||||||||||||||||||||||
Common Stock | Paid In | Retained | Treasury Stock | Comprehensive | Stockholders’ | |||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | Loss | Equity | |||||||||||||||||||||||||
BALANCE - January 1, 2019 | 32,723,972 | $ | 327 | $ | 181,815 | $ | 105,212 | (2,808,361 | ) | $ | (104,425 | ) | $ | (431 | ) | $ | 182,498 | |||||||||||||||
Net income | 48,965 | 48,965 | ||||||||||||||||||||||||||||||
Issuance of common stock awards to employees | 139,862 | 2 | (2 | ) | — | |||||||||||||||||||||||||||
Surrender of common stock awards by employees | (46,394 | ) | (2,331 | ) | (2,331 | ) | ||||||||||||||||||||||||||
Share-based compensation expense | 6,144 | 6,144 | ||||||||||||||||||||||||||||||
Share-based compensation issued to directors | 7,670 | 259 | 259 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (8,021 | ) | (8,021 | ) | ||||||||||||||||||||||||||||
BALANCE - September 30, 2019 | 32,871,504 | $ | 329 | $ | 188,216 | $ | 154,177 | (2,854,755 | ) | $ | (106,756 | ) | $ | (8,452 | ) | $ | 227,514 | |||||||||||||||
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 8,834 | $ | 6,394 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization of property and equipment | 9,111 | 7,978 | ||||||
Amortization of operating leaseright-of-use assets | 3,798 | — | ||||||
Amortization of intangibles | 5,888 | 7,128 | ||||||
Amortization of deferred financing costs and debt discount | 282 | 302 | ||||||
Provision for doubtful accounts | 828 | 896 | ||||||
Gain on sale of property and equipment | (19 | ) | (185 | ) | ||||
Noncash stock compensation | 2,022 | 2,240 | ||||||
Changes in assets and liabilities, excluding effects of acquisitions | ||||||||
Accounts receivable | (3,704 | ) | (7,058 | ) | ||||
Inventories | 799 | (2,420 | ) | |||||
Other assets | (1,048 | ) | (4,139 | ) | ||||
Accounts payable | (7,807 | ) | (57 | ) | ||||
Income taxes receivable / payable | 2,746 | 1,303 | ||||||
Other liabilities | (5,841 | ) | (6,297 | ) | ||||
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Net cash provided by operating activities | 15,889 | 6,085 | ||||||
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Cash flows from investing activities | ||||||||
Purchases of investments | (7,482 | ) | (17,782 | ) | ||||
Maturities of short term investments | 7,530 | 19,000 | ||||||
Purchases of property and equipment | (8,658 | ) | (10,237 | ) | ||||
Acquisitions of businesses | (5,125 | ) | (11,505 | ) | ||||
Proceeds from sale of property and equipment | 196 | 283 | ||||||
Other | (420 | ) | (1,050 | ) | ||||
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Net cash used in investing activities | (13,959 | ) | (21,291 | ) | ||||
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Cash flows from financing activities | ||||||||
Payments on term loan (Note 6) | (1,000 | ) | (750 | ) | ||||
Proceeds from vehicle and equipment notes payable | 4,908 | 4,510 | ||||||
Debt issuance costs | — | (1 | ) | |||||
Principal payments on long-term debt | (3,946 | ) | (3,092 | ) | ||||
Principal payments on finance lease obligations | (1,366 | ) | (1,629 | ) | ||||
Acquisition-related obligations | (2,818 | ) | (1,740 | ) | ||||
Repurchase of common stock | — | (24,640 | ) | |||||
Surrender of common stock awards by employees | (4 | ) | (56 | ) | ||||
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Net cash used in financing activities | (4,226 | ) | (27,398 | ) | ||||
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Net change in cash and cash equivalents | (2,296 | ) | (42,604 | ) | ||||
Cash and cash equivalents at beginning of period | 90,442 | 62,510 | ||||||
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Cash and cash equivalents at end of period | $ | 88,146 | $ | 19,906 | ||||
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Supplemental disclosures of cash flow information | ||||||||
Net cash paid during the period for: | ||||||||
Interest | $ | 5,816 | $ | 3,914 | ||||
Income taxes, net of refunds | 737 | 899 | ||||||
Supplemental disclosure of noncash activities | ||||||||
Right-of-use assets obtained in exchange for operating lease obligations | 3,851 | — | ||||||
Property and equipment obtained in exchange for finance lease obligations | 1,108 | 312 | ||||||
Seller obligations in connection with acquisition of businesses | 1,380 | 3,093 | ||||||
Unpaid purchases of property and equipment included in accounts payable | 1,503 | 1,485 |
Nine months ended September 30, | ||||||||
2019 | 2018 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 48,965 | $ | 38,272 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization of property and equipment | 28,575 | 24,567 | ||||||
Amortization of operating lease right-of-use assets | 11,597 | — | ||||||
Amortization of intangibles | 18,065 | 19,678 | ||||||
Amortization of deferred financing costs and debt discount | 845 | 883 | ||||||
Provision for doubtful accounts | 3,173 | 2,219 | ||||||
Write-off of debt issuance costs | 2,774 | 1,164 | ||||||
Gain on sale of property and equipment | (69 | ) | (551 | ) | ||||
Noncash stock compensation | 6,442 | 6,089 | ||||||
Changes in assets and liabilities, excluding effects of acquisitions | ||||||||
Accounts receivable | (29,144 | ) | (35,953 | ) | ||||
Inventories | (852 | ) | (6,799 | ) | ||||
Other assets | (4,845 | ) | (801 | ) | ||||
Accounts payable | 2,535 | 7,523 | ||||||
Income taxes receivable/payable | 13,487 | 10,542 | ||||||
Other liabilities | 4,969 | 2,016 | ||||||
Net cash provided by operating activities | 106,517 | 68,849 | ||||||
Cash flows from investing activities | ||||||||
Purchases of investments | (17,352 | ) | (22,818 | ) | ||||
Maturities of short term investments | 22,560 | 37,500 | ||||||
Purchases of property and equipment | (37,267 | ) | (27,051 | ) | ||||
Acquisitions of businesses | (24,740 | ) | (34,682 | ) | ||||
Proceeds from sale of property and equipment | 563 | 1,106 | ||||||
Other | (1,795 | ) | (1,590 | ) | ||||
Net cash used in investing activities | (58,031 | ) | (47,535 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from senior notes (Note 6) | 300,000 | — | ||||||
Proceeds from term loan (Note 6) | — | 100,000 | ||||||
Payments on term loan (Note 6) | (195,750 | ) | (750 | ) | ||||
Proceeds from vehicle and equipment notes payable | 23,767 | 20,657 | ||||||
Debt issuance costs | (5,191 | ) | (1,992 | ) | ||||
Principal payments on long-term debt | (15,278 | ) | (10,324 | ) | ||||
Principal payments on finance lease obligations | (3,398 | ) | (4,316 | ) | ||||
Acquisition-related obligations | (5,797 | ) | (2,901 | ) | ||||
Repurchase of common stock | — | (42,827 | ) | |||||
Surrender of common stock awards by employees | (2,331 | ) | (2,282 | ) | ||||
Net cash provided by financing activities | 96,022 | 55,265 | ||||||
Net change in cash and cash equivalents | 144,508 | 76,579 | ||||||
Cash and cash equivalents at beginning of period | 90,442 | 62,510 | ||||||
Cash and cash equivalents at end of period | $ | 234,950 | $ | 139,089 | ||||
Supplemental disclosures of cash flow information | ||||||||
Net cash paid during the period for: | ||||||||
Interest | $ | 17,746 | $ | 14,110 | ||||
Income taxes, net of refunds | 3,790 | 1,902 | ||||||
Supplemental disclosure of noncash activities | ||||||||
Right-of-use assets obtained in exchange for operating lease obligations | 11,593 | — | ||||||
Termination of operating lease obligations and right-of-use assets | (2,814 | ) | — | |||||
Property and equipment obtained in exchange for finance lease obligations | 2,175 | 1,034 | ||||||
Seller obligations in connection with acquisition of businesses | 4,322 | 5,420 | ||||||
Unpaid purchases of property and equipment included in accounts payable | 1,527 | 615 |
|
| |
Standard | Adoption | |
ASU 2016-02, Leases (Topic 842) | This Accounting Standards Update (“ASU”) requires substantially all leases, with the exception of leases with a term of one year or less, to be recorded on the balance sheet as a lease liability measured as the present value of the future lease payments with a corresponding right-of-use asset. This ASU also requires disclosures designed to give financial statement users information on the amount, timing and uncertainty of cash flows. See Note 7, Leases, for further information regarding our lease accounting policies. |
Standard Description Effective Date
or
other significant matters amendsand subsequently-issued amendments change the accounting for credit losses on evaluating whether this ASUassessing the quantitative impact the adoption will have a material impact on our consolidated financial statements.
ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment | To address concerns over the cost and complexity of the two-step goodwill impairment test, this pronouncement removes the second step of the goodwill impairment test. Going forward, an entity will apply aone-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. | Annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. | We anticipate the adoption of this ASU will not have a material impact on our consolidated financial statements or disclosures. | |||
ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement | This pronouncement amends Topic 820 to eliminate, add and modify certain disclosure requirements for fair value measurements. | Annual periods beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. | We are currently evaluating the provisions of this ASU and the impact it will have on our disclosures. |
Three months ended March 31, | ||||||||||||||||
2019 | 2018 | |||||||||||||||
Residential new construction | $ | 261,310 | 77 | % | $ | 229,642 | 76 | % | ||||||||
Repair and remodel | 21,521 | 6 | % | 20,472 | 7 | % | ||||||||||
Commercial | 59,304 | 17 | % | 51,614 | 17 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net revenues | $ | 342,135 | 100 | % | $ | 301,728 | 100 | % | ||||||||
|
|
|
|
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
Residential new construction | $ | 297,003 | 75 | % | $ | 268,254 | 77 | % | $ | 840,806 | 76 | % | $ | 755,800 | 77 | % | ||||||||||||||||
Repair and remodel | 25,029 | 6 | % | 23,107 | 7 | % | 71,254 | 6 | % | 65,453 | 7 | % | ||||||||||||||||||||
Commercial | 74,417 | 19 | % | 57,638 | 16 | % | 198,338 | 18 | % | 162,058 | 16 | % | ||||||||||||||||||||
Net revenues | $ | 396,449 | 100 | % | $ | 348,999 | 100 | % | $ | 1,110,398 | 100 | % | $ | 983,311 | 100 | % | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
Insulation | $ | 253,311 | 64 | % | $ | 225,503 | 65 | % | $ | 710,005 | 64 | % | $ | 646,270 | 66 | % | ||||||||||||||||
Waterproofing | 32,781 | 8 | % | 25,980 | 7 | % | 84,024 | 8 | % | 73,477 | 7 | % | ||||||||||||||||||||
Shower doors, shelving and mirrors | 27,011 | 7 | % | 23,190 | 7 | % | 77,828 | 7 | % | 66,222 | 7 | % | ||||||||||||||||||||
Garage doors | 22,336 | 6 | % | 21,781 | 6 | % | 65,790 | 6 | % | 56,574 | 6 | % | ||||||||||||||||||||
Rain gutters | 13,366 | 3 | % | 12,163 | 4 | % | 37,561 | 3 | % | 31,429 | 3 | % | ||||||||||||||||||||
Window blinds | 10,615 | 3 | % | 7,811 | 2 | % | 30,780 | 3 | % | 21,196 | 2 | % | ||||||||||||||||||||
Other building products | 37,029 | 9 | % | 32,571 | 9 | % | 104,410 | 9 | % | 88,143 | 9 | % | ||||||||||||||||||||
Net revenues | $ | 396,449 | 100 | % | $ | 348,999 | 100 | % | $ | 1,110,398 | 100 | % | $ | 983,311 | 100 | % | ||||||||||||||||
Three months ended March 31, | ||||||||||||||||
2019 | 2018 | |||||||||||||||
Insulation | $ | 221,223 | 65 | % | $ | 202,275 | 67 | % | ||||||||
Waterproofing | 22,385 | 7 | % | 22,606 | 7 | % | ||||||||||
Shower doors, shelving and mirrors | 23,917 | 7 | % | 20,260 | 7 | % | ||||||||||
Garage doors | 21,672 | 6 | % | 15,466 | 5 | % | ||||||||||
Rain gutters | 11,199 | 3 | % | 8,658 | 3 | % | ||||||||||
Window blinds | 9,384 | 3 | % | 5,306 | 2 | % | ||||||||||
Other building products | 32,355 | 9 | % | 27,157 | 9 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net revenues | $ | 342,135 | 100 | % | $ | 301,728 | 100 | % | ||||||||
|
|
|
|
March 31, | December 31, | |||||||
2019 | 2018 | |||||||
Contract assets | $ | 19,565 | $ | 15,092 | ||||
Contract liabilities | (7,792 | ) | (7,468 | ) |
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
Contract assets | $ | 22,278 | $ | 15,092 | ||||
Contract liabilities | (8,729 | ) | (7,468 | ) |
March 31, | December 31, | |||||||
2019 | 2018 | |||||||
Costs incurred on uncompleted contracts | $ | 101,024 | $ | 114,826 | ||||
Estimated earnings | 52,670 | 58,952 | ||||||
|
|
|
| |||||
Total | 153,694 | 173,778 | ||||||
Less: Billings to date | 139,100 | 163,112 | ||||||
|
|
|
| |||||
Net under (over) billings | $ | 14,594 | $ | 10,666 | ||||
|
|
|
|
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
Costs incurred on uncompleted contracts | $ | 120,905 | $ | 114,826 | ||||
Estimated earnings | 64,436 | 58,952 | ||||||
Total | 185,341 | 173,778 | ||||||
Less: Billings to date | 168,587 | 163,112 | ||||||
Net under billings | $ | 16,754 | $ | 10,666 | ||||
March 31, | December 31, | |||||||
2019 | 2018 | |||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 19,565 | $ | 15,092 | ||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (4,971 | ) | (4,426 | ) | ||||
|
|
|
| |||||
Net under (over) billings | $ | 14,594 | $ | 10,666 | ||||
|
|
|
|
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) | $ | 22,278 | $ | 15,092 | ||||
Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) | (5,524 | ) | (4,426 | ) | ||||
Net under billings | $ | 16,754 | $ | 10,666 | ||||
INSTALLED BUILDING PRODUCTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
assets.
Goodwill (Gross) | Accumulated Impairment Losses | Goodwill (Net) | ||||||||||
January 1, 2019 | $ | 243,053 | $ | (70,004 | ) | $ | 173,049 | |||||
Business Combinations | 1,882 | — | 1,882 | |||||||||
Other | 28 | — | 28 | |||||||||
|
|
|
|
|
| |||||||
March 31, 2019 | $ | 244,963 | $ | (70,004 | ) | $ | 174,959 | |||||
|
|
|
|
|
|
INSTALLED BUILDING PRODUCTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Goodwill (Gross) | Accumulated Impairment Losses | Goodwill (Net) | ||||||||||
January 1, 2019 | $ | 243,053 | $ | (70,004 | ) | $ | 173,049 | |||||
Business Combinations | 11,332 | — | 11,332 | |||||||||
Other | 193 | — | 193 | |||||||||
September 30, 2019 | $ | 254,578 | $ | (70,004 | ) | $ | 184,574 | |||||
As of March 31, 2019 | As of December 31, 2018 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | |||||||||||||||||||
Amortized intangibles: | ||||||||||||||||||||||||
Customer relationships | $ | 150,735 | $ | 56,530 | $ | 94,205 | $ | 148,635 | $ | 52,514 | $ | 96,121 | ||||||||||||
Covenantsnot-to-compete | 15,090 | 8,325 | 6,765 | 14,682 | 7,572 | 7,110 | ||||||||||||||||||
Trademarks and trade names | 65,432 | 19,319 | 46,113 | 64,432 | 18,256 | 46,176 | ||||||||||||||||||
Backlog | 14,060 | 13,734 | 326 | 14,060 | 13,677 | 383 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 245,317 | $ | 97,908 | $ | 147,409 | $ | 241,809 | $ | 92,019 | $ | 149,790 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2019 | As of December 31, 2018 | |||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||
Carrying | Accumulated | Book | Carrying | Accumulated | Book | |||||||||||||||||||
Amount | Amortization | Value | Amount | Amortization | Value | |||||||||||||||||||
Amortized intangibles: | ||||||||||||||||||||||||
Customer relationships | $ | 157,242 | $ | 64,884 | $ | 92,358 | $ | 148,635 | $ | 52,514 | $ | 96,121 | ||||||||||||
Covenants not-to-compete | 16,035 | 9,857 | 6,178 | 14,682 | 7,572 | 7,110 | ||||||||||||||||||
Trademarks and trade names | 67,048 | 21,489 | 45,559 | 64,432 | 18,256 | 46,176 | ||||||||||||||||||
Backlog | 14,080 | 13,854 | 226 | 14,060 | 13,677 | 383 | ||||||||||||||||||
$ | 254,405 | $ | 110,084 | $ | 144,321 | $ | 241,809 | $ | 92,019 | $ | ||||||||||||||
Remainder of 2019 | 17,719 | |||
2020 | 22,744 | |||
2021 | 21,415 | |||
2022 | 20,494 | |||
2023 | 17,583 | |||
Thereafter | 47,454 |
Remainder of 2019 | $ | 6,147 | ||
2020 | 23,867 | |||
2021 | 22,525 | |||
2022 | 21,604 | |||
2023 | 18,693 | |||
Thereafter | 51,485 |
INSTALLED BUILDING PRODUCTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
As of March 31, | As of December 31, | |||||||
2019 | 2018 | |||||||
Term loan, net of unamortized debt issuance costs of $4,642 and $4,834, respectively | $ | 390,108 | $ | 390,916 | ||||
Vehicle and equipment notes, maturing through March 2024; payable in various monthly installments, including interest rates ranging from 2.5% to 4.8% | 60,811 | 60,391 | ||||||
Various notes payable, maturing through March 2025; payable in various monthly installments, including interest rates ranging from 4% to 6% | 3,466 | 3,517 | ||||||
|
|
|
| |||||
454,385 | 454,824 | |||||||
Less: current maturities | (23,925 | ) | (22,642 | ) | ||||
|
|
|
| |||||
Long-term debt, less current maturities | $ | 430,460 | $ | 432,182 | ||||
|
|
|
|
As of September 30, | As of December 31, | |||||||
2019 | 2018 | |||||||
Senior Notes due 2028, net of unamortized debt issuance costs of $4,989 and $0, respectively | $ | 295,011 | $ | — | ||||
Term loan, net of unamortized debt issuance costs of $2,164 and $4,834, respectively | 197,836 | 390,916 | ||||||
Vehicle and equipment notes, maturing through September 2024; payable in various monthly installments, including interest rates ranging from 2.5% to 4.8% | 69,430 | 60,391 | ||||||
Various notes payable, maturing through March 2025; payable in various monthly installments, including interest rates ranging from 4% to 6% | 2,967 | 3,517 | ||||||
565,244 | 454,824 | |||||||
Less: current maturities | (22,734 | ) | (22,642 | ) | ||||
Long-term debt, less current maturities | $ | 542,510 | $ | 432,182 | ||||
(in thousands) | Classification | As of March 31, 2019 | ||||
Assets | ||||||
Non-Current | ||||||
Operating | Operating lease right-of-use assets | $ | 45,280 | |||
Finance | Property and equipment, net | 9,217 | ||||
|
| |||||
Total lease assets | $ | 54,497 | ||||
Liabilities | ||||||
Current | ||||||
Operating | Current maturities of operating lease obligations | $ | 14,241 | |||
Financing | Current maturities of finance lease obligations | 4,328 | ||||
Non-Current | ||||||
Operating | Operating lease obligations | 30,682 | ||||
Financing | Finance lease obligations | 3,974 | ||||
|
| |||||
Total lease liabilities | $ | 53,225 | ||||
|
| |||||
Weighted-average remaining lease term | ||||||
Operating leases | 4.5 years | |||||
Finance leases | 2.3 years | |||||
Weighted-average discount rate | ||||||
Operating leases(1) | 5.04 | % | ||||
Finance leases | 4.57 | % |
(in thousands) | Classification | As of September 30, 2019 | ||||
Assets | ||||||
Non-Current | ||||||
Operating | Operating lease right-of-use assets | $ | 42,553 | |||
Finance | Property and equipment, net | 7,691 | ||||
Total lease assets | $ | 50,244 | ||||
Liabilities | ||||||
Current | ||||||
Operating | Current maturities of operating lease obligations | $ | 15,032 | |||
Financing | Current maturities of finance lease obligations | 3,133 | ||||
Non-Current | ||||||
Operating | Operating lease obligations | 27,129 | ||||
Financing | Finance lease obligations | 3,682 | ||||
Total lease liabilities | $ | 48,976 | ||||
Weighted-average remaining lease term | ||||
Operating leases | 3.8 years | |||
Finance leases | 2.6 years | |||
Weighted-average discount rate (1) | ||||
Operating leases | 4.85 | % | ||
Finance leases | 4.75 | % |
(1) | Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. |
(in thousands) Operating lease cost(1) Finance lease cost Amortization of leased assets (2) Interest on capital lease obligations Total lease costs Includes variable lease costs of $0.5 million and $1.5 million, respectively, and short-term lease costs of $0.2 Includes variable lease costs of Classification Three months ended
March 31, 2019 Administrative $ 4,987 Cost of sales 1,478 Interest expense, net 94 $ 6,559
September 30, 2019
September 30, 2019 $ $ $ $ (1) million.(2) $0.3 million.
Three months ended March 31, 2019 | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows for operating leases | $ | 4,233 | ||
Operating cash flows for finance leases | 94 | |||
Financing cash flows for finance leases | 1,366 |
Three months ended September 30, 2019 | Nine months ended September 30, 2019 | |||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows for operating leases | $ | 4,488 | $ | 13,009 | ||||
Operating cash flows for finance leases | 84 | 268 | ||||||
Financing cash flows for finance leases | 917 | 3,398 |
As of March 31, 2019 | ||||||||||||||||
Related Party | Other | Total Operating | Finance Leases | |||||||||||||
Remainder of 2019 | $ | 774 | $ | 11,595 | $ | 12,369 | $ | 3,947 | ||||||||
2020 | 1,055 | 12,240 | 13,295 | 2,539 | ||||||||||||
2021 | 910 | 8,042 | 8,952 | 1,596 | ||||||||||||
2022 | 836 | 4,615 | 5,451 | 663 | ||||||||||||
2023 | 415 | 3,047 | 3,462 | 284 | ||||||||||||
Thereafter | 823 | 6,007 | 6,830 | 16 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total minimum lease payments | $ | 4,813 | $ | 45,546 | 50,359 | 9,045 | ||||||||||
Less: Amounts representing executory costs | — | (255 | ) | |||||||||||||
Less: Amounts representing interest | (5,436 | ) | (488 | ) | ||||||||||||
|
|
|
| |||||||||||||
Present value of future minimum lease payments |
| 44,923 | 8,302 | |||||||||||||
Less: Current obligation under leases | (14,241 | ) | (4,328 | ) | ||||||||||||
|
|
|
| |||||||||||||
Long-term lease obligations | $ | 30,682 | $ | 3,974 | ||||||||||||
|
|
|
|
Finance Leases | Operating Leases | |||||||||||||||
Related Party | Other | Total Operating | ||||||||||||||
Remainder of 2019 | $ | 1,233 | $ | 260 | $ | 4,213 | $ | 4,473 | ||||||||
2020 | 2,854 | 1,055 | 14,490 | 15,545 | ||||||||||||
2021 | 1,845 | 910 | 9,947 | 10,857 | ||||||||||||
2022 | 911 | 836 | 5,708 | 6,544 | ||||||||||||
2023 | 532 | 415 | 3,386 | 3,801 | ||||||||||||
Thereafter | 131 | 823 | 4,304 | 5,127 | ||||||||||||
Total minimum lease payments | 7,506 | $ | 4,299 | $ | 42,048 | 46,347 | ||||||||||
Less: Amounts representing executory costs | (195 | ) | — | |||||||||||||
Less: Amounts representing interest | (496 | ) | (4,186 | ) | ||||||||||||
Present value of future minimum lease payments | 6,815 | 42,161 | ||||||||||||||
Less: Current obligation under leases | (3,133 | ) | (15,032 | ) | ||||||||||||
Long-term lease obligations | $ | 3,682 | $ | 27,129 | ||||||||||||
Operating Leases | ||||||||||||||||
Capital Leases | Related Party | Other | Total Operating | |||||||||||||
2019 | $ | 5,207 | $ | 1,159 | $ | 14,418 | $ | 15,577 | ||||||||
2020 | 2,253 | 1,184 | 11,293 | 12,477 | ||||||||||||
2021 | 1,339 | 1,058 | 7,014 | 8,072 | ||||||||||||
2022 | 452 | 972 | 4,335 | 5,307 | ||||||||||||
2023 | 93 | 51 | 2,613 | 2,664 | ||||||||||||
Thereafter | — | — | 4,695 | 4,695 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
9,344 | $ | 4,424 | $ | 44,368 | $ | 48,792 | ||||||||||
|
|
|
|
|
| |||||||||||
Less: Amounts representing executory costs | (255 | ) | ||||||||||||||
Less: Amounts representing interest | (459 | ) | ||||||||||||||
|
| |||||||||||||||
Total obligation under capital leases | 8,630 | |||||||||||||||
Less: Current portion of capital leases | (4,806 | ) | ||||||||||||||
|
| |||||||||||||||
Long term capital lease obligation | $ | 3,824 | ||||||||||||||
|
|
Capital Leases | Operating Leases | |||||||||||||||
Related Party | Other | Total Operating | ||||||||||||||
2019 | $ | 5,207 | $ | 1,159 | $ | 14,418 | $ | 15,577 | ||||||||
2020 | 2,253 | 1,184 | 11,293 | 12,477 | ||||||||||||
2021 | 1,339 | 1,058 | 7,014 | 8,072 | ||||||||||||
2022 | 452 | 972 | 4,335 | 5,307 | ||||||||||||
2023 | 93 | 51 | 2,613 | 2,664 | ||||||||||||
Thereafter | — | — | 4,695 | 4,695 | ||||||||||||
9,344 | $ | 4,424 | $ | 44,368 | $ | 48,792 | ||||||||||
Less: Amounts representing executory costs | (255 | ) | ||||||||||||||
Less: Amounts representing interest | (459 | ) | ||||||||||||||
Total obligation under capital leases | 8,630 | |||||||||||||||
Less: Current portion of capital leases | (4,806 | ) | ||||||||||||||
Long term capital lease obligation | $ | 3,824 | ||||||||||||||
INSTALLED BUILDING PRODUCTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
As of March 31, 2019 | As of December 31, 2018 | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 71,240 | $ | 71,240 | $ | — | $ | — | $ | 69,807 | $ | 69,807 | $ | — | $ | — | ||||||||||||||||
Derivative financial instruments | 805 | — | 805 | — | 1,765 | — | 1,765 | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total financial assets | $ | 72,045 | $ | 71,240 | $ | 805 | $ | — | $ | 71,572 | $ | 69,807 | $ | 1,765 | $ | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Derivative financial instruments | $ | 4,984 | $ | — | $ | 4,984 | $ | — | $ | 2,275 | $ | — | $ | 2,275 | $ | — | ||||||||||||||||
Contingent consideration | 4,977 | — | — | 4,977 | 5,098 | — | — | 5,098 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total financial liabilities | $ | 9,961 | $ | — | $ | 4,984 | $ | 4,977 | $ | 7,373 | $ | — | $ | 2,275 | $ | 5,098 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2019 | As of December 31, 2018 | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 107,535 | $ | 107,535 | $ | — | $ | — | $ | 69,807 | $ | 69,807 | $ | — | $ | — | ||||||||||||||||
Derivative financial instruments | — | — | — | — | 1,765 | — | 1,765 | — | ||||||||||||||||||||||||
Total financial assets | $ | 107,535 | $ | 107,535 | $ | — | $ | — | $ | 71,572 | $ | 69,807 | $ | 1,765 | $ | — | ||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Derivative financial instruments | $ | 11,207 | $ | — | $ | 11,207 | $ | — | $ | 2,275 | $ | — | $ | 2,275 | $ | — | ||||||||||||||||
Contingent consideration | 3,724 | — | — | 3,724 | 5,098 | — | — | 5,098 | ||||||||||||||||||||||||
Total financial liabilities | $ | 14,931 | $ | — | $ | 11,207 | $ | 3,724 | $ | 7,373 | $ | — | $ | 2,275 | $ | 5,098 | ||||||||||||||||
Contingent consideration liability—January 1, 2019 | $ | 5,098 | ||
Preliminary purchase price | 1,525 | |||
Fair value adjustments | (245 | ) | ||
Accretion in value | 125 | |||
Amounts paid to sellers | (1,526 | ) | ||
|
| |||
Contingent consideration liability—March 31, 2019 | $ | 4,977 | ||
|
|
Contingent consideration liability - January 1, 2019 | $ | 5,098 | ||
Preliminary purchase price | 2,275 | |||
Fair value adjustments | (410 | ) | ||
Accretion in value | 434 | |||
Amounts paid to sellers | (371 | ) | ||
Amounts cancelled | (3,302 | ) | ||
Contingent consideration liability - September 30, 2019 | $ | 3,724 | ||
INSTALLED BUILDING PRODUCTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
As of March 31, 2019 | As of December 31, 2018 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Financial assets: | ||||||||||||||||
Investments | $ | 10,026 | $ | 10,026 | $ | 10,060 | $ | 10,053 |
See Note 4, Investments, for more information on cash equivalents and investments included in the table above. Also see Note
As of September 30, 2019 | As of December 31, 2018 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Investments | $ | 4,980 | $ | 4,983 | $ | 10,060 | $ | 10,053 | ||||||||
Senior Notes (1) | 300,000 | 309,000 | — | — |
(1) | Excludes the impact of unamortized debt issuance costs. |
NOTE 9—- DERIVATIVES AND HEDGING ACTIVITIES
INSTALLED BUILDING PRODUCTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
March 31, 2019 | December 31, 2018 | |||||||
Included in other current liabilities | $ | 5,201 | $ | 5,795 | ||||
Included in other long-term liabilities | 11,138 | 9,447 | ||||||
|
|
|
| |||||
$ | 16,339 | $ | 15,242 | |||||
|
|
|
|
September 30, 2019 | December 31, 2018 | |||||||
Included in other current liabilities | $ | 5,768 | $ | 5,795 | ||||
Included in other long-term liabilities | 11,813 | 9,447 | ||||||
$ | 17,581 | $ | 15,242 | |||||
March 31, 2019 | December 31, 2018 | |||||||
Included in othernon-current assets | $ | 1,905 | $ | 1,888 |
September 30, 2019 | December 31, 2018 | |||||||
Included in other non-current assets | $ | 1,819 | $ | 1,888 |
INSTALLED BUILDING PRODUCTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
During the three months ended March 31, 2019 and 2018, our employees surrendered approximately two hundred and one thousand shares of our common stock, respectively, to satisfy tax withholding obligations arising in connection with the vesting of common stock awards issued under our 2014 Omnibus Incentive Plan. We recognized excess tax benefits of $0.1Plan to employees during the nine months ended September 30, 2019 and 2018. The shares granted during the nine months ended September 30, 2019 and 2018 vest in 3 equal installments (rounded to the nearest whole share) annually on April 20 through 2022.
September 30, 2019, respectively, and $1.0 million and $2.9 million for the three and nine months ended September 30, 2018, respectively.
Common Stock Awards | Performance-Based Stock Awards | Performance-Based Restricted Stock Units | ||||||||||||||||||||||
Awards | Weighted Average Fair Market Value Per Share | Awards | Weighted Average Fair Market Value Per Share | Units | Weighted Average Fair Market Value Per Share | |||||||||||||||||||
Nonvested awards/units at December 31, 2018 | 173,189 | $ | 47.40 | 115,698 | $ | 52.25 | 13,248 | $ | 56.05 | |||||||||||||||
Granted | 10,800 | 45.65 | 82,692 | 45.65 | — | — | ||||||||||||||||||
Vested | (564 | ) | 54.98 | — | — | — | — | |||||||||||||||||
Forfeited/Cancelled | (445 | ) | 56.05 | (6,697 | ) | 65.60 | (440 | ) | 56.05 | |||||||||||||||
|
|
|
|
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|
|
|
|
|
| |||||||||||||
Nonvested awards/units at March 31, 2019 | 182,980 | $ | 47.25 | 191,693 | $ | 48.93 | 12,808 | $ | 56.05 | |||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
Common Stock Awards | Performance-Based Stock Awards | Performance-Based RestrictedStock Units | ||||||||||||||||||||||
Awards | Weighted Average Grant Dat Faire Value Share | Awards | Weighted Average Grant Dat Faire Value Share | Units | Weighted Average Grant Dat Faire Value Share | |||||||||||||||||||
Nonvested awards/units at December 31, 2018 | 173,189 | $ | 47.40 | 115,698 | $ | 52.25 | 13,248 | $ | 56.05 | |||||||||||||||
Granted | 88,529 | 50.94 | 82,692 | 45.65 | 13,933 | 51.62 | ||||||||||||||||||
Vested | (106,347 | ) | 42.27 | (31,404 | ) | 41.00 | (12,808 | ) | 56.05 | |||||||||||||||
Forfeited/Cancelled | (1,767 | ) | 52.25 | (6,697 | ) | 65.60 | (840 | ) | 53.94 | |||||||||||||||
Nonvested awards/units at September 30, 2019 | 153,604 | $ | 52.93 | 160,289 | $ | 50.49 | 13,533 | $ | 51.62 | |||||||||||||||
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Cost of sales | $ | 78 | $ | 475 | ||||
Selling | 44 | 283 | ||||||
Administrative | 1,816 | 1,482 | ||||||
|
|
|
| |||||
$ | 1,938 | $ | 2,240 | |||||
|
|
|
|
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Cost of sales | $ | 97 | $ | 94 | $ | 280 | $ | 749 | ||||||||
Selling | 48 | 30 | 149 | 402 | ||||||||||||
Administrative | 1,954 | 1,769 | 6,012 | 4,938 | ||||||||||||
$ | 2,099 | $ | 1,893 | $ | 6,441 | $ | 6,089 | |||||||||
INSTALLED BUILDING PRODUCTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Sales | $ | 2,661 | $ | 2,893 | ||||
Purchases | 388 | 363 | ||||||
Rent | 260 | 281 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Sales | $ | 3,736 | $ | 3,259 | $ | 9,658 | $ | 9,361 | ||||||||
Purchases | 469 | 372 | 1,327 | 1,207 | ||||||||||||
Rent | 256 | 257 | 773 | 829 |
March 31, 2019 | December 31, 2018 | |||||||
Included in other current liabilities | $ | 1,914 | $ | 1,848 | ||||
Included in other long-term liabilities | 9,803 | 6,608 | ||||||
|
|
|
| |||||
$ | 11,717 | $ | 8,456 | |||||
|
|
|
|
September 30, 2019 | December 31, 2018 | |||||||
Included in other current liabilities | $ | 2,514 | $ | 1,848 | ||||
Included in other long-term liabilities | 12,511 | 6,608 | ||||||
$ | 15,025 | $ | 8,456 | |||||
March 31, 2019 | December 31, 2018 | |||||||
Insurance receivable and indemnification asset for claims under a | $ | 2,484 | $ | 2,484 | ||||
Insurance receivable for claims that exceeded the stop loss limit | 1,613 | 53 | ||||||
|
|
|
| |||||
Total insurance receivables included in othernon-current assets | $ | 4,097 | $ | 2,537 | ||||
|
|
|
|
September 30, 2019 | December 31, 2018 | |||||||
Insurance receivable and indemnification asset for claims under a fully insured policy | $ | 2,484 | $ | 2,484 | ||||
Insurance receivable for claims that exceeded the stop loss limit | 2,738 | 53 | ||||||
non-current assets | $ | 5,222 | $ | 2,537 | ||||
INSTALLED BUILDING PRODUCTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Acquisition | Cash | Seller | Total Purchase | Three months ended March 31, 2019 | ||||||||||||||||||||||||
2019 Acquisitions | Date | Type | Paid | Obligations | Price | Revenue | Net Income | |||||||||||||||||||||
1st State Insulation | 3/18/2019 | Asset | $ | 5,125 | $ | 1,380 | $ | 6,505 | $ | 488 | $ | 23 |
Total Purchase Price | Three months ended September 30, 2019 | Nine months ended September 30, 2019 | ||||||||||||||||||||||||||||||||||
2019 Acquisitions | Date | Acquisition Type | Cash Paid | Seller Obligations | Revenue | Net Income | Revenue | Net Income | ||||||||||||||||||||||||||||
1st State Insulation | 3/18/2019 | Asset | $ | 5,125 | $ | 1,355 | $ | 6,480 | $ | 3,156 | $ | 174 | $ | 6,586 | $ | 374 | ||||||||||||||||||||
Expert Insulation | 6/24/2019 | Asset | 16,165 | 1,993 | 18,158 | 3,147 | 193 | 3,339 | 160 | |||||||||||||||||||||||||||
Other | Various | Asset | 3,450 | 974 | 4,424 | 7,262 | 591 | 7,262 | 591 | |||||||||||||||||||||||||||
Total | $ | 24,740 | $ | 4,322 | $ | 29,062 | $ | 13,565 | $ | 958 | $ | 17,187 | $ | 1,125 | ||||||||||||||||||||||
INSTALLED BUILDING PRODUCTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Acquisition | Seller | Total Purchase | Three months ended March 31, 2018 | |||||||||||||||||||||||||
2018 Acquisitions | Date | Type | Cash Paid | Obligations | Price | Revenue | Net (Loss) Income | |||||||||||||||||||||
CDG | 3/19/2018 | Asset | $ | 9,440 | $ | 1,973 | $ | 11,413 | | $ | 400 | $ | (15 | ) | ||||||||||||||
Other | 1/15/2018 | Asset | 2,065 | 953 | 3,018 | 1,271 | 66 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total | $ | 11,505 | $ | 2,926 | $ | 14,431 | $ | 1,671 | $ | 51 | ||||||||||||||||||
|
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|
|
|
|
|
Total Purchase Price | Three months ended September 30, 2018 | Nine months ended September 30, 2018 | ||||||||||||||||||||||||||||||||||
2018 Acquisitions | Date | Acquisition Type | Cash Paid | Seller Obligations | Revenue | Net Income | Revenue | Net Income | ||||||||||||||||||||||||||||
CDG | 3/19/2018 | Asset | $ | 9,440 | $ | 1,973 | $ | 11,413 | $ | 3,848 | $ | 164 | $ | 7,572 | $ | 229 | ||||||||||||||||||||
Other | Various | Shares/Asset | 25,242 | 3,447 | 28,689 | 7,003 | 42 | 12,782 | 423 | |||||||||||||||||||||||||||
Total | $ | 34,682 | $ | 5,420 | $ | 40,102 | $ | 10,851 | $ | 206 | $ | 20,354 | $ | 652 | ||||||||||||||||||||||
As of March 31, 2019 | As of March 31, 2018 | |||||||||||||||
1st State | CDG | Other | Total | |||||||||||||
Estimated fair values: | ||||||||||||||||
Accounts receivable | $ | — | $ | 1,731 | $ | — | $ | 1,731 | ||||||||
Inventories | 291 | 514 | 75 | 589 | ||||||||||||
Other current assets | — | 28 | 12 | 40 | ||||||||||||
Property and equipment | 989 | 933 | 517 | 1,450 | ||||||||||||
Intangibles | 3,382 | 3,711 | 1,675 | 5,386 | ||||||||||||
Goodwill | 1,882 | 4,898 | 764 | 5,662 | ||||||||||||
Othernon-current assets | — | 36 | — | 36 | ||||||||||||
Accounts payable and other current liabilities | (39 | ) | (438 | ) | (25 | ) | (463 | ) | ||||||||
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|
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|
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| |||||||||
Fair value of assets acquired and purchase price | 6,505 | 11,413 | 3,018 | 14,431 | ||||||||||||
Less seller obligations | 1,380 | 1,973 | 953 | 2,926 | ||||||||||||
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| |||||||||
Cash paid | $ | 5,125 | $ | 9,440 | $ | 2,065 | $ | 11,505 | ||||||||
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|
As of September 30, 2019 | As of September 30, 2018 | |||||||||||||||||||||||||||
1st State | Expert | Other | Total | CDG | Other | Total | ||||||||||||||||||||||
Estimated fair values: | ||||||||||||||||||||||||||||
Accounts receivable | $ | — | $ | 1,796 | $ | 254 | $ | 2,050 | $ | 1,731 | $ | 3,229 | $ | 4,960 | ||||||||||||||
Inventories | 291 | 723 | 338 | 1,352 | 514 | 1,027 | 1,541 | |||||||||||||||||||||
Other current assets | — | — | 3 | 3 | 28 | 879 | 907 | |||||||||||||||||||||
Property and equipment | 989 | 235 | 667 | 1,891 | 933 | 1,893 | 2,826 | |||||||||||||||||||||
Intangibles | 3,382 | 6,740 | 2,242 | 12,364 | 3,711 | 16,681 | 20,392 | |||||||||||||||||||||
Goodwill | 1,857 | 8,545 | 930 | 11,332 | 4,898 | 7,007 | 11,905 | |||||||||||||||||||||
Other non-current assets | — | 161 | 13 | 174 | 36 | 19 | 55 | |||||||||||||||||||||
Accounts payable and other current liabilities | (39 | ) | (42 | ) | (23 | ) | (104 | ) | (438 | ) | (2,046 | ) | (2,484 | ) | ||||||||||||||
Fair value of assets acquired and purchase price | 6,480 | 18,158 | 4,424 | 29,062 | 11,413 | 28,689 | 40,102 | |||||||||||||||||||||
Less seller obligations | 1,355 | 1,993 | 974 | 4,322 | 1,973 | 3,447 | 5,420 | |||||||||||||||||||||
Cash paid | $ | 5,125 | $ | 16,165 | $ | 3,450 | $ | 24,740 | $ | 9,440 | $ | 25,242 | $ | 34,682 | ||||||||||||||
INSTALLED BUILDING PRODUCTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, | ||||||||||||||||
2019 | 2018 | |||||||||||||||
Acquired intangibles assets | Estimated Fair Value | Weighted Average Estimated Useful Life (yrs.) | Estimated Fair Value | Weighted Average Estimated Useful Life (yrs.) | ||||||||||||
Customer relationships | $ | 2,100 | 8 | $ | 3,441 | 8 | ||||||||||
Trademarks and trade names | 999 | 15 | 1,695 | 15 | ||||||||||||
Non-competition agreements | 283 | 5 | 250 | 5 |
For the nine months ended September 30, | ||||||||||||||||
2019 | 2018 | |||||||||||||||
Acquired intangibles assets | Estimated Fair Value | Weighted Average Estimated Useful Life | Estimated Fair Value | Weighted Average Estimated Useful Life | ||||||||||||
Customer relationships | $ | 8,566 | 8 | $ | 14,480 | 8 | ||||||||||
Trademarks and trade names | 2,615 | 15 | 3,920 | 14 | ||||||||||||
Non-competition agreements | 1,183 | 5 | 1,530 | 5 | ||||||||||||
Backlog | 460 | 2 |
Unaudited pro forma for the three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Net revenue | $ | 344,397 | $ | 322,666 | ||||
Net income | 8,793 | 7,478 | ||||||
Basic and diluted net income per share | 0.30 | 0.24 |
Unaudited pro forma for the three months ended September 30, | Unaudited pro forma for the nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net revenue | $ | 397,839 | $ | 367,600 | $ | 1,123,820 | $ | 1,046,717 | ||||||||
Net income | 21,240 | 16,856 | 49,154 | 41,997 | ||||||||||||
Basic net income per share | 0.71 | 0.54 | 1.65 | 1.34 | ||||||||||||
Diluted net income per share | 0.71 | 0.54 | 1.65 | 1.33 |
The recently passed Tax Cuts and Jobs Act (the “Tax Act”) has added additional momentum to the economic landscape. While there have been concerns about the impact of the new tax law on housing, initial readings and reviews are suggesting that it is generally stimulative to the economy. We may adjust our strategies based on housing demand and our performance in each of our markets.
While we continue to proactively work with customers and suppliers to mitigate these cost impacts, we will likely continue to experience inflation on our materials in 2020.
Three months ended March 31, | ||||||||||||
2019 | Change | 2018 | ||||||||||
Net revenues | $ | 342,135 | 13.4 | % | $ | 301,728 | ||||||
Cost of sales | 252,697 | 14.0 | % | 221,752 | ||||||||
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|
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| |||||||||
Gross profit | $ | 89,438 | 11.8 | % | $ | 79,976 | ||||||
|
|
|
| |||||||||
Gross profit percentage | 26.1 | % | 26.5 | % |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | Change | 2018 | 2019 | Change | 2018 | |||||||||||||||||||
Net revenues | $ | 396,449 | 13.6 | % | $ | 348,999 | $ | 1,110,398 | 12.9 | % | $ | 983,311 | ||||||||||||
Cost of sales | 278,362 | 10.6 | % | 251,665 | 795,616 | 12.0 | % | 710,358 | ||||||||||||||||
Gross profit | $ | 118,087 | 21.3 | % | $ | 97,334 | $ | 314,782 | 15.3 | % | $ | 272,953 | ||||||||||||
Gross profit percentage | 29.8 | % | 27.9 | % | 28.3 | % | 27.8 | % |
Three months ended March 31, | ||||||||||||
2019 | Change | 2018 | ||||||||||
Selling | $ | 17,130 | 8.1 | % | $ | 15,846 | ||||||
Percentage of total net revenue | 5.0 | % | 5.3 | % | ||||||||
Administrative | $ | 48,431 | 9.6 | % | $ | 44,203 | ||||||
Percentage of total net revenue | 14.2 | % | 14.6 | % | ||||||||
Amortization | $ | 5,888 | -17.4 | % | $ | 7,128 | ||||||
Percentage of total net revenue | 1.7 | % | 2.4 | % |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | Change | 2018 | 2019 | Change | 2018 | |||||||||||||||||||
Selling | $ | 19,398 | 11.3 | % | $ | 17,434 | $ | 54,431 | 10.4 | % | $ | 49,300 | ||||||||||||
Percentage of total net revenue | 4.9 | % | 5.0 | % | 4.9 | % | 5.0 | % | ||||||||||||||||
Administrative | $ | 55,098 | 14.0 | % | $ | 48,337 | $ | 156,022 | 13.5 | % | $ | 137,511 | ||||||||||||
Percentage of total net revenue | 13.9 | % | 13.9 | % | 14.1 | % | 14.0 | % | ||||||||||||||||
Amortization | $ | 6,156 | 17.8 | % | $ | 5,228 | $ | 18,065 | -8.2 | % | $ | 19,678 | ||||||||||||
Percentage of total net revenue | 1.6 | % | 1.5 | % | 1.6 | % | 2.0 | % |
Administrative expense decreasedremained flat as a percentage of sales for the three months ended March 31,September 30, 2019 compared to 2018 primarily dueas expenses remained proportional to leverage on wages and benefits gained through increasedthe increase in net revenue.
Three months ended March 31, | ||||||||||||
2019 | Change | 2018 | ||||||||||
Interest expense, net | $ | 5,676 | 40.5 | % | $ | 4,040 | ||||||
Other | 125 | 2.5 | % | 122 | ||||||||
|
|
|
| |||||||||
Total other expense | $ | 5,801 | 39.4 | % | $ | 4,162 | ||||||
|
|
|
|
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2019 | Change | 2018 | 2019 | Change | 2018 | |||||||||||||||||||
Interest expense, net | $ | 8,458 | 60.1 | % | $ | 5,282 | $ | 19,783 | 31.8 | % | $ | 15,013 | ||||||||||||
Other | 155 | 17.4 | % | 132 | 381 | -8.6 | % | 417 | ||||||||||||||||
Total other expense | $ | 8,613 | 59.1 | % | $ | 5,414 | $ | 20,164 | 30.7 | % | $ | 15,430 | ||||||||||||
debt transactions completed during September 2019.
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Income tax provision | $ | 3,354 | $ | 2,243 | ||||
Effective tax rate | 27.5 | % | 26.0 | % |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Income tax provision | $ | 7,610 | $ | 5,358 | $ | 17,135 | $ | 12,762 | ||||||||
Effective tax rate | 26.4 | % | 25.6 | % | 25.9 | % | 25.0 | % |
net of tax
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Unrealized (loss) gain on cash flow hedge, net of taxes | $ | (2,749 | ) | $ | 1,160 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Unrealized (loss) gain on cash flow hedge, net of taxes | $ | (1,726 | ) | $ | 818 | $ | (8,021 | ) | $ | 2,453 |
programs and as of the date of this filing, expect to meet or exceed this goal.
Revolver.
On April 13, 2017,Notes due 2028
The Term Loan Agreement was amended on November 30, 2017 to refinance the total principal amount of the Term Loan outstanding immediately prior to the effective date of the amendment on substantially the same terms as the initial Term Loan, except for (i) a decrease in the margins applicable to the base rate and Eurodollar rate loans, (ii) an increase in the cap on permitted indebtedness related to capital expenditures other than finance lease obligations and (iii) the inclusion of a mechanism to establish an alternative Eurodollar rate if certain circumstances have arisen such that the London Interbank Offered Rate may no longer be used. The ABL Credit Agreement was amended in December 2017 to revise the formula for maximum indebtedness incurred by the Company while subject to the terms of such agreement.
On June 19, 2018, we entered into a second amendment to the Term Loan Agreement to (i) extend the maturity date from April 15, 2024 to April 15, 2025 and (ii) increase the aggregate principal amount of Senior Notes. The Senior Notes will mature on February 1, 2028 and interest will be payable semi-annually in cash in arrears on February 1 and August 1, commencing on February 1, 2020. The net proceeds from the facility from $297.8Senior Notes offering were $295.0 million to $397.8 million. All other provisionsafter debt issuance costs. We used some of the net proceeds to repay a portion of our outstanding obligations (including accrued and unpaid interest) under our Term Loan were unchanged. Also on June 19, 2018, we enteredAgreement and to pay fees and expenses related to the Senior Notes offering and entry into a third amendment to the ABL Credit AgreementAgreement.
Our Senior Secured
Notes.
As of March 31, 2019 | ||||
Performance bonds | $ | 42,613 | ||
Insurance letters of credit and cash-collateral | 38,887 | |||
Permit and license bonds | 6,884 | |||
|
| |||
Total bonds and letters of credit | $ | 88,384 | ||
|
|
As of September 30, 2019 | ||||
Performance bonds | $ | 52,264 | ||
Insurance letters of credit and cash-collateral (1) | 44,498 | |||
Permit and license bonds | 6,964 | |||
Total bonds and letters of credit | $ | 103,726 | ||
(1) | Subsequent to September 30, 2019, we increased our outstanding letters of credit by a net amount of $7.0 million in conjunction with renewals of certain insurance programs. |
As of March 31, 2019 | As of December 31, 2018 | |||||||
Cash and cash equivalents | $ | 88,146 | $ | 90,442 | ||||
Short-term investments | 10,026 | 10,060 | ||||||
ABL Revolver(1) | 150,000 | 150,000 | ||||||
Less: outstanding letters of credit and cash-collateral | (28,887 | ) | (28,887 | ) | ||||
|
|
|
| |||||
Total liquidity | $ | 219,285 | $ | 221,615 | ||||
|
|
|
|
As of September 30, 2019 | As of December 31, 2018 | |||||||
Cash and cash equivalents | $ | 234,950 | $ | 90,442 | ||||
Short-term investments | 4,980 | 10,060 | ||||||
ABL Revolver | 200,000 | 150,000 | ||||||
Less: outstanding letters of credit and cash-collateral (1) | (34,498 | ) | (28,887 | ) | ||||
Total liquidity (2) | $ | 405,432 | $ | 221,615 | ||||
(1) |
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(2) | Total liquidity reflects full borrowing base capacity under our ABL Revolver |
$8.7$37.3 million and $10.2$27.1 million for the threenine months ended March 31,September 30, 2019 and 2018, respectively, and was primarily related to purchases of vehicles and various equipment to support our growing operations. We expect to continue to support any increases in 2019future net revenue through further capital expenditures.
A majority of these capital expenditures were subsequently reimbursed via various vehicle and equipment notes payable, with related cash inflows shown in cash flows from financing activities.
We
Payments due by period | ||||||||||||||||||||||||||||
(in thousands) | Total | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | |||||||||||||||||||||
Long-term debt obligations (1) | $ | 768,482 | $ | 9,821 | $ | 51,118 | $ | 45,329 | $ | 40,759 | $ | 34,864 | $ | 586,591 |
(1) | Long-term debt obligations include interest payments on our Senior Notes, Term Loan, our notes payable to sellers of acquisitions, and vehicles purchased under the Master Loan and Security Agreement, the Master Equipment Agreement and the Master Loan Agreements. Long-term debt obligations do not include commitment fees on the unused portion of the ABL Revolver since those fees are subject to change based on the factors described in the ABL Credit Agreement. Interest on seller obligations maturing through March 2025 is estimated using current market rates. For additional information, see Part II, Item 8 Financial Statements and Supplementary Data, Note 7, Long-Term Debt within our 2018 Form 10-K. |
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Standard | Adoption | |
ASU 2016-02, Leases (Topic 842) | This ASU requires substantially all leases, with the exception of leases with a term of one year or less, to be recorded on the balance sheet as a lease liability measured as the present value of the future lease payments with a corresponding right-of-use asset. This ASU also requires disclosures designed to give financial statement users information on the amount, timing and uncertainty of cash flows. See Note 7, Leases, for further information regarding our lease accounting policies. |
$36 thousand.
Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs (2) | |||||||||||||
January 1 - 31, 2019 | 198 | $ | 39.70 | — | — | |||||||||||
February 1 - 28, 2019 | — | — | — | — | ||||||||||||
March 1 - 31, 2019 | — | — | — | — | ||||||||||||
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198 | $ | 39.70 | — | $ | 60.6 million | |||||||||||
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Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs (2) | |||||||||||||
July 1 - 31, 2019 | 124 | $ | 59.22 | — | — | |||||||||||
August 1 - 31, 2019 | — | — | — | — | ||||||||||||
September 1 - 30, 2019 | — | — | — | — | ||||||||||||
124 | $ | 59.22 | — | $ | 60.6 million | |||||||||||
(1) | Represents |
(2) | On February 28, 2018, our board of directors authorized a $50 million stock repurchase program effective March 2, 2018 through February 28, 2019, unless extended by the board of directors. On October 31, 2018, our board of directors approved an additional stock repurchase program, effective November 5, 2018, pursuant to which we may purchase up to an additional $100 million of our outstanding common stock. The program will remain in effect until February 28, 2020, unless extended by the board of directors. During the three or nine months ended |
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Exhibit Number | Description | |||
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4.1 | ||||
10.1 | ||||
10.2 | ||||
10.3 | ||||
31.1* | ||||
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31.2* | ||||
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32.1* | ||||
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32.2* | ||||
101.INS** | Inline XBRL Instance Document - the instance document does not appear in the interactive date file because its XBRL tags are embedded within the Inline XBRL document | |||
101.SCH** | Inline XBRL Taxonomy Extension Schema Document | |||
101. CAL** | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||
101. LAB** | Inline XBRL Taxonomy Extension Label Linkbase Document | |||
101. PRE** | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||
101. DEF** | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||
104** | Cover Page Interactive Data File (formatted in Inline XBRL) |
* | Filed herewith. |
** | Submitted electronically with the report. |
INSTALLED BUILDING PRODUCTS, INC. | ||
By: | /s/ Jeffrey W. Edwards | |
Jeffrey W. Edwards | ||
President and Chief Executive Officer |
By: | /s/ Michael T. Miller | |
Michael T. Miller | ||
Executive Vice President and Chief Financial Officer |
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