☒ | 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, Columbus, | 43215 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common stock | IBP | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
1 | ||||
1 | ||||
28 | ||||
36 | ||||
3 7 | ||||
37 | ||||
37 | ||||
37 | ||||
3 8 | ||||
38 | ||||
38 | ||||
38 | ||||
40 |
June 30, | December 31, | |||||||
2019 | 2018 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 95,747 | $ | 90,442 | ||||
Investments | 9,923 | 10,060 | ||||||
Accounts receivable (less allowance for doubtful accounts of $ 5,539 and $5,085 at June 30, 2019 and December 31, 2018, respectively) | 232,111 | 214,121 | ||||||
Inventories | 63,951 | 61,162 | ||||||
Other current assets | 34,944 | 35,760 | ||||||
Total current assets | 436,676 | 411,545 | ||||||
Property and equipment, net | 92,655 | 90,117 | ||||||
Operating lease right-of-use assets | 46,383 | — | ||||||
Goodwill | 183,412 | 173,049 | ||||||
Intangibles, net | 148,203 | 149,790 | ||||||
Other non-current assets | 9,062 | 10,157 | ||||||
Total assets | $ | 916,391 | $ | 834,658 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | 25,252 | $ | 22,642 | ||||
Current maturities of operating lease obligations | 15,028 | — | ||||||
Current maturities of finance lease obligations | 3,738 | 4,806 | ||||||
Accounts payable | 96,235 | 96,949 | ||||||
Accrued compensation | 26,964 | 27,923 | ||||||
Other current liabilities | 34,760 | 29,366 | ||||||
Total current liabilities | 201,977 | 181,686 | ||||||
Long-term debt | 431,988 | 432,182 | ||||||
Operating lease obligations | 30,964 | — | ||||||
Finance lease obligations | 3,943 | 3,824 | ||||||
Deferred income taxes | 4,421 | 6,695 | ||||||
Other long-term liabilities | 37,096 | 27,773 | ||||||
Total liabilities | 710,389 | 652,160 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity | ||||||||
Preferred Stock; $ 0.01 5,000,000 0 | — | — | ||||||
Common stock; $ 0.01 par value:100,000,000 authorized,32,871,504 and32,723,972 issued and30,017,008 and29,915,611 shares outstanding at June 30, 2019 and December 31, 2018, respectively | 329 | 327 | ||||||
Additional paid in capital | 186,182 | 181,815 | ||||||
Retained earnings | 132,965 | 105,212 | ||||||
Treasury stock; at cost: 2,854,496 and2,808,361 shares at June 30, 2019 and December 31, 2018, respectively | (106,748 | ) | (104,425 | ) | ||||
Accumulated other comprehensive loss | (6,726 | ) | (431 | ) | ||||
Total stockholders’ equity | 206,002 | 182,498 | ||||||
Total liabilities and stockholders’ equity | $ | 916,391 | $ | 834,658 | ||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net revenue | $ | 371,814 | $ | 332,584 | $ | 713,949 | $ | 634,312 | ||||||||
Cost of sales | 264,557 | 236,941 | 517,254 | 458,693 | ||||||||||||
Gross profit | 107,257 | 95,643 | 196,695 | 175,619 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling | 17,903 | 16,020 | 35,033 | 31,866 | ||||||||||||
Administrative | 52,493 | 44,971 | 100,924 | 89,174 | ||||||||||||
Amortization | 6,021 | 7,322 | 11,909 | 14,450 | ||||||||||||
Operating income | 30,840 | 27,330 | 48,829 | 40,129 | ||||||||||||
Other expense | ||||||||||||||||
Interest expense, net | 5,649 | 5,691 | 11,325 | 9,731 | ||||||||||||
Other | 101 | 163 | 226 | 285 | ||||||||||||
Income before income taxes | 25,090 | 21,476 | 37,278 | 30,113 | ||||||||||||
Income tax provision | 6,171 | 5,161 | 9,525 | 7,404 | ||||||||||||
Net income | $ | 18,919 | $ | 16,315 | $ | 27,753 | $ | 22,709 | ||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||
Unrealized (loss) gain on cash flow hedge, net of tax benefit (provision) of $ 1,180 and ($159 ) for the three months ended June 30, 2019 and 2018, respectively, and $2,101 and ($545 ) for the six months ended June 30, 2019 and 2018, respectively | (3,546 | ) | 475 | (6,295 | ) | 1,635 | ||||||||||
Comprehensive income | $ | 15,373 | $ | 16,790 | $ | 21,458 | $ | 24,344 | ||||||||
Basic net income per share | $ | 0.64 | $ | 0.52 | $ | 0.93 | $ | 0.72 | ||||||||
Diluted net income per share | $ | 0.63 | $ | 0.52 | $ | 0.93 | $ | 0.72 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 29,758,071 | 31,345,390 | 29,719,194 | 31,447,067 | ||||||||||||
Diluted | 29,834,748 | 31,452,583 | 29,820,917 | 31,612,581 |
Additional | Accumulated Other | |||||||||||||||||||||||||||||||
Common Stock | Paid In | Retained | Treasury Stock | Comprehensive | Stockholders’ | |||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | Income | Equity | |||||||||||||||||||||||||
BALANCE - April 1, 2018 | 32,595,324 | $ | 326 | $ | 176,349 | $ | 57,604 | (1,076,717 | ) | $ | (37,477 | ) | $ | 1,779 | $ | 198,581 | ||||||||||||||||
Net income | 16,315 | 16,315 | ||||||||||||||||||||||||||||||
Issuance of common stock awards to employees | 123,703 | 1 | (1 | ) | — | |||||||||||||||||||||||||||
Surrender of common stock awards by employees | (40,906 | ) | (2,226 | ) | (2,226 | ) | ||||||||||||||||||||||||||
Share-based compensation expense | 1,893 | 1,893 | ||||||||||||||||||||||||||||||
Share-based compensation issued to directors | 4,945 | 25 | 25 | |||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 475 | 475 | ||||||||||||||||||||||||||||||
BALANCE - June 30, 2018 | 32,723,972 | $ | 327 | $ | 178,266 | $ | 73,919 | (1,117,623 | ) | $ | (39,703 | ) | $ | 2,254 | $ | 215,063 | ||||||||||||||||
Additional | Accumulated Other | |||||||||||||||||||||||||||||||
Common Stock | Paid In | Retained | Treasury Stock | Comprehensive | Stockholders’ | |||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | Loss | Equity | |||||||||||||||||||||||||
BALANCE - April 1, 2019 | 32,780,967 | $ | 328 | $ | 183,836 | $ | 114,046 | (2,809,004 | ) | $ | (104,429 | ) | $ | (3,180 | ) | $ | 190,601 | |||||||||||||||
Net income | 18,919 | 18,919 | ||||||||||||||||||||||||||||||
Issuance of common stock awards to employees | 82,867 | 1 | (1 | ) | — | |||||||||||||||||||||||||||
Surrender of common stock awards by employees | (45,492 | ) | (2,319 | ) | (2,319 | ) | ||||||||||||||||||||||||||
Share-based compensation expense | 2,263 | 2,263 | ||||||||||||||||||||||||||||||
Share-based compensation issued to directors | 7,670 | 84 | 84 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (3,546 | ) | (3,546 | ) | ||||||||||||||||||||||||||||
BALANCE - June 30, 2019 | 32,871,504 | $ | 329 | $ | 186,182 | $ | 132,965 | (2,854,496 | ) | $ | (106,748 | ) | $ | (6,726 | ) | $ | 206,002 | |||||||||||||||
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 | 22,709 | 22,709 | ||||||||||||||||||||||||||||||
Cumulative effect of accounting changes, net of tax | 2,776 | 112 | 2,888 | |||||||||||||||||||||||||||||
Issuance of common stock awards to employees | 194,093 | 2 | (2 | ) | — | |||||||||||||||||||||||||||
Surrender of common stock awards by employees | (42,118 | ) | (2,282 | ) | (2,282 | ) | ||||||||||||||||||||||||||
Share-based compensation expense | 4,200 | 4,200 | ||||||||||||||||||||||||||||||
Share-based compensation issued to directors | 4,945 | 25 | 25 | |||||||||||||||||||||||||||||
Common stock repurchase | (412,717 | ) | (24,640 | ) | (24,640 | ) | ||||||||||||||||||||||||||
Other comprehensive income, net of tax | 1,635 | 1,635 | ||||||||||||||||||||||||||||||
BALANCE - June 30, 2018 | 32,723,972 | $ | 327 | $ | 178,266 | $ | 73,919 | (1,117,623 | ) | $ | (39,703 | ) | $ | 2,254 | $ | 215,063 | ||||||||||||||||
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 | 27,753 | 27,753 | ||||||||||||||||||||||||||||||
Issuance of common stock awards to employees | 139,862 | 2 | (2 | ) | — | |||||||||||||||||||||||||||
Surrender of common stock awards by employees | (46,135 | ) | (2,323 | ) | (2,323 | ) | ||||||||||||||||||||||||||
Share-based compensation expense | 4,211 | 4,211 | ||||||||||||||||||||||||||||||
Share-based compensation issued to directors | 7,670 | 158 | 158 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (6,295 | ) | (6,295 | ) | ||||||||||||||||||||||||||||
BALANCE - June 30, 2019 | 32,871,504 | $ | 329 | $ | 186,182 | $ | 132,965 | (2,854,496 | ) | $ | (106,748 | ) | $ | (6,726 | ) | $ | 206,002 | |||||||||||||||
Six months ended June 30, | ||||||||
2019 | 2018 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 27,753 | $ | 22,709 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization of property and equipment | 18,614 | 16,231 | ||||||
Amortization of operating lease right-of-use assets | 7,607 | — | ||||||
Amortization of intangibles | 11,909 | 14,450 | ||||||
Amortization of deferred financing costs and debt discount | 564 | 601 | ||||||
Provision for doubtful accounts | 1,605 | 1,108 | ||||||
Write-off of debt issuance costs | — | 1,114 | ||||||
Gain on sale of property and equipment | (156 | ) | (227 | ) | ||||
Noncash stock compensation | 4,345 | 4,196 | ||||||
Changes in assets and liabilities, excluding effects of acquisitions | ||||||||
Accounts receivable | (17,876 | ) | (20,192 | ) | ||||
Inventories | (1,650 | ) | (3,995 | ) | ||||
Other assets | (1,495 | ) | (3,739 | ) | ||||
Accounts payable | (1,253 | ) | 304 | |||||
Income taxes receivable / payable | 6,347 | 5,187 | ||||||
Other liabilities | (3,914 | ) | (4,622 | ) | ||||
Net cash provided by operating activities | 52,400 | 33,125 | ||||||
Cash flows from investing activities | ||||||||
Purchases of investments | (17,352 | ) | (17,782 | ) | ||||
Maturities of short term investments | 17,560 | 27,500 | ||||||
Purchases of property and equipment | (17,778 | ) | (18,478 | ) | ||||
Acquisitions of businesses | (21,290 | ) | (18,626 | ) | ||||
Proceeds from sale of property and equipment | 452 | 557 | ||||||
Other | (876 | ) | (1,540 | ) | ||||
Net cash used in investing activities | (39,284 | ) | (28,369 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from term loan (Note 6) | — | 100,000 | ||||||
Payments on term loan (Note 6) | (2,000 | ) | (750 | ) | ||||
Proceeds from vehicle and equipment notes payable | 13,783 | 14,271 | ||||||
Debt issuance costs | — | (1,933 | ) | |||||
Principal payments on long-term debt | (9,751 | ) | (6,863 | ) | ||||
Principal payments on finance lease obligations | (2,481 | ) | (3,028 | ) | ||||
Acquisition-related obligations | (5,039 | ) | (2,295 | ) | ||||
Repurchase of common stock | — | (24,640 | ) | |||||
Surrender of common stock awards by employees | (2,323 | ) | (2,282 | ) | ||||
Net cash (used in) provided by financing activities | (7,811 | ) | 72,480 | |||||
Net change in cash and cash equivalents | 5,305 | 77,236 | ||||||
Cash and cash equivalents at beginning of period | 90,442 | 62,510 | ||||||
Cash and cash equivalents at end of period | $ | 95,747 | $ | 139,746 | ||||
Supplemental disclosures of cash flow information | ||||||||
Net cash paid during the period for: | ||||||||
Interest | $ | 11,793 | $ | 8,349 | ||||
Income taxes, net of refunds | 3,595 | 1,906 | ||||||
Supplemental disclosure of noncash activities | ||||||||
Right-of-use assets obtained in exchange for operating lease obligations | 8,677 | — | ||||||
Property and equipment obtained in exchange for finance lease obligations | 1,830 | 814 | ||||||
Seller obligations in connection with acquisition of businesses | 3,162 | 3,801 | ||||||
Unpaid purchases of property and equipment included in accounts payable | 2,334 | 1,027 |
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 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 - 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 | |||||||||||||||
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 | 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 | Effect on the financial statementsor | |||
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) | This pronouncement and subsequently-issued amendments change the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. In addition, these amendments require the measurement of all expected credit losses for financial assets, including trade accounts receivable, held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. | Annual periods beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. | Upon adoption of this pronouncement, we expect the accounts receivable balance and the contract assets balance included in other current assets on our Condensed Consolidated Balance Sheets to be affected, with an offsetting amount recorded to retained earnings in the period of adoption. We are currently |
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 June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential new construction | $ | 282,494 | 76 | % | $ | 257,904 | 77 | % | $ | 543,804 | 76 | % | $ | 487,546 | 77 | % | $ | 297,003 | 75 | % | $ | 268,254 | 77 | % | $ | 840,806 | 76 | % | $ | 755,800 | 77 | % | ||||||||||||||||||||||||||||||||
Repair and remodel | 24,705 | 7 | % | 21,873 | 7 | % | 46,225 | 7 | % | 42,345 | 7 | % | 25,029 | 6 | % | 23,107 | 7 | % | 71,254 | 6 | % | 65,453 | 7 | % | ||||||||||||||||||||||||||||||||||||||||
Commercial | 64,615 | 17 | % | 52,807 | 16 | % | 123,920 | 17 | % | 104,421 | 16 | % | 74,417 | 19 | % | 57,638 | 16 | % | 198,338 | 18 | % | 162,058 | 16 | % | ||||||||||||||||||||||||||||||||||||||||
Net revenues | $ | 371,814 | 100 | % | $ | 332,584 | 100 | % | $ | 713,949 | 100 | % | $ | 634,312 | 100 | % | $ | 396,449 | 100 | % | $ | 348,999 | 100 | % | $ | 1,110,398 | 100 | % | $ | 983,311 | 100 | % | ||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
Insulation | $ | 235,473 | 63 | % | $ | 218,493 | 66 | % | $ | 456,695 | 64 | % | $ | 420,768 | 67 | % | ||||||||||||||||
Waterproofing | 28,858 | 8 | % | 24,892 | 7 | % | 51,243 | 7 | % | 47,498 | 7 | % | ||||||||||||||||||||
Shower doors, shelving and mirrors | 26,900 | 7 | % | 22,773 | 7 | % | 50,817 | 7 | % | 43,032 | 7 | % | ||||||||||||||||||||
Garage doors | 21,782 | 6 | % | 19,326 | 6 | % | 43,454 | 6 | % | 34,792 | 5 | % | ||||||||||||||||||||
Rain gutters | 12,996 | 4 | % | 10,608 | 3 | % | 24,195 | 3 | % | 19,266 | 3 | % | ||||||||||||||||||||
Window blinds | 10,781 | 3 | % | 8,079 | 2 | % | 20,165 | 3 | % | 13,385 | 2 | % | ||||||||||||||||||||
Other building products | 35,024 | 9 | % | 28,413 | 9 | % | 67,380 | 10 | % | 55,571 | 9 | % | ||||||||||||||||||||
Net revenues | $ | 371,814 | 100 | % | $ | 332,584 | 100 | % | $ | 713,949 | 100 | % | $ | 634,312 | 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 | % | ||||||||||||||||
June 30, | December 31, | September 30, | December 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Contract assets | $ | 20,207 | $ | 15,092 | $ | 22,278 | $ | 15,092 | ||||||||
Contract liabilities | (7,380 | ) | (7,468 | ) | (8,729 | ) | (7,468 | ) |
June 30, | December 31, | September 30, | December 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Costs incurred on uncompleted contracts | $ | 99,087 | $ | 114,826 | $ | 120,905 | $ | 114,826 | ||||||||
Estimated earnings | 53,596 | 58,952 | 64,436 | 58,952 | ||||||||||||
Total | 152,683 | 173,778 | 185,341 | 173,778 | ||||||||||||
Less: Billings to date | 136,857 | 163,112 | 168,587 | 163,112 | ||||||||||||
Net under (over) billings | $ | 15,826 | $ | 10,666 | ||||||||||||
Net under billings | $ | 16,754 | $ | 10,666 | ||||||||||||
June 30, | December 31, | |||||||
2019 | 2018 | |||||||
Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) | $ | 20,207 | $ | 15,092 | ||||
Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) | (4,381 | ) | (4,426 | ) | ||||
Net under (over) billings | $ | 15,826 | $ | 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 | ||||
Goodwill (Gross) | Accumulated Impairment Losses | Goodwill (Net) | ||||||||||
January 1, 2019 | $ | 243,053 | $ | (70,004 | ) | $ | 173,049 | |||||
Business Combinations | 10,272 | — | 10,272 | |||||||||
Other | 91 | — | 91 | |||||||||
June 30, 2019 | $ | 253,416 | $ | (70,004 | ) | $ | 183,412 | |||||
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 June 30, 2019 | As of December 31, 2018 | As of September 30, 2019 | As of December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||||||||||||||||||||||||
Carrying | Accumulated | Book | Carrying | Accumulated | Book | Carrying | Accumulated | Book | Carrying | Accumulated | Book | |||||||||||||||||||||||||||||||||||||
Amount | Amortization | Value | Amount | Amortization | Value | Amount | Amortization | Value | Amount | Amortization | Value | |||||||||||||||||||||||||||||||||||||
Amortized intangibles: | ||||||||||||||||||||||||||||||||||||||||||||||||
Customer relationships | $ | 155,775 | $ | 60,641 | $ | 95,134 | $ | 148,635 | $ | 52,514 | $ | 96,121 | $ | 157,242 | $ | 64,884 | $ | 92,358 | $ | 148,635 | $ | 52,514 | $ | 96,121 | ||||||||||||||||||||||||
Covenants not-to-compete | 15,843 | 9,097 | 6,746 | 14,682 | 7,572 | 7,110 | 16,035 | 9,857 | 6,178 | 14,682 | 7,572 | 7,110 | ||||||||||||||||||||||||||||||||||||
Trademarks and trade names | 66,432 | 20,396 | 46,036 | 64,432 | 18,256 | 46,176 | 67,048 | 21,489 | 45,559 | 64,432 | 18,256 | 46,176 | ||||||||||||||||||||||||||||||||||||
Backlog | 14,080 | 13,793 | 287 | 14,060 | 13,677 | 383 | 14,080 | 13,854 | 226 | 14,060 | 13,677 | 383 | ||||||||||||||||||||||||||||||||||||
$ | 252,130 | $ | 103,927 | $ | 148,203 | $ | 241,809 | $ | 92,019 | $ | 149,790 | $ | 254,405 | $ | 110,084 | $ | 144,321 | $ | 241,809 | $ | 92,019 | $ | ||||||||||||||||||||||||||
Remainder of 2019 | 12,201 | $ | 6,147 | |||||
2020 | 23,604 | 23,867 | ||||||
2021 | 22,262 | 22,525 | ||||||
2022 | 21,342 | 21,604 | ||||||
2023 | 18,431 | 18,693 | ||||||
Thereafter | 50,363 | 51,485 |
As of June 30, 2019 | As of December 31, 2018 | |||||||
Term loan, net of unamortized debt issuance costs of $ 4,450 and $4,834 , respectively | $ | 389,300 | $ | 390,916 | ||||
Vehicle and equipment notes, maturing through June 2024; payable in various monthly installments, including interest rates ranging from 2.5 % to4.8 % | 64,848 | 60,391 | ||||||
Various notes payable, maturing through March 2025; payable in various monthly installments, including interest rates ranging from 4 % to6 % | 3,092 | 3,517 | ||||||
457,240 | 454,824 | |||||||
Less: current maturities | (25,252 | ) | (22,642 | ) | ||||
Long-term debt, less current maturities | $ | 431,988 | $ | 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 June 30, 2019 | ||||
Assets | ||||||
Non-Current | ||||||
Operating | Operating lease right-of-use assets | $ | 46,383 | |||
Finance | Property and equipment, net | 8,599 | ||||
Total lease assets | $ | 54,982 | ||||
Liabilities | ||||||
Current | ||||||
Operating | Current maturities of operating lease obligations | $ | 15,028 | |||
Financing | Current maturities of finance lease obligations | 3,738 | ||||
Non-Current | ||||||
Operating | Operating lease obligations | 30,964 | ||||
Financing | Finance lease obligations | 3,943 | ||||
Total lease liabilities | $ | 53,673 | ||||
(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 | ||||
Finance leases | ||||
Weighted-average discount rate (1) | ||||
Operating leases | % | |||
Finance leases | % |
(1) | Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. |
(in thousands) | Classification | Three months ended June 30, 2019 | Six months ended June 30, 2019 | |||||||
Operating lease cost (1) | Administrative | $ | 5,054 | $ | 10,041 | |||||
Finance lease cost | ||||||||||
Amortization of leased assets (2) | Cost of sales | 1,332 | 2,810 | |||||||
Interest on finance lease obligations | Interest expense, net | 90 | 184 | |||||||
Total lease costs | $ | 6,476 | $ | 13,035 | ||||||
(in thousands) | Classification | Three months ended September 30, 2019 | Nine months ended September 30, 2019 | |||||||
Operating lease cost (1) | Administrative | $ | 5,225 | $ | 15,266 | |||||
Finance lease cost | ||||||||||
Amortization of leased assets (2) | Cost of sales | 1,144 | 3,955 | |||||||
Interest on finance lease obligations | Interest expense, net | 84 | 268 | |||||||
Total lease costs | $ | 6,453 | $ | 19,489 | ||||||
(1) | Includes variable lease costs of |
(2) | Includes variable lease costs of |
Three months ended June 30, 2019 | Six months ended June 30, 2019 | Three months ended September 30, 2019 | Nine months ended September 30, 2019 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | | Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows for operating leases | $ | 4,288 | $ | 8,521 | $ | 4,488 | $ | 13,009 | ||||||||
Operating cash flows for finance leases | 90 | 184 | 84 | 268 | ||||||||||||
Financing cash flows for finance leases | 1,116 | 2,481 | 917 | 3,398 |
As of June 30, 2019 | Finance Leases | Operating Leases | ||||||||||||||||||||||||||||||
Related Party | Other | Total Operating | Finance Leases | Related Party | Other | Total Operating | ||||||||||||||||||||||||||
Remainder of 2019 | $ | 578 | $ | 8,276 | $ | 8,854 | $ | 2,562 | $ | 1,233 | $ | 260 | $ | 4,213 | $ | 4,473 | ||||||||||||||||
2020 | 1,178 | 13,610 | 14,788 | 2,735 | 2,854 | 1,055 | 14,490 | 15,545 | ||||||||||||||||||||||||
2021 | 1,033 | 9,287 | 10,320 | 1,765 | 1,845 | 910 | 9,947 | 10,857 | ||||||||||||||||||||||||
2022 | 959 | 5,374 | 6,333 | 831 | 911 | 836 | 5,708 | 6,544 | ||||||||||||||||||||||||
2023 | 456 | 3,537 | 3,993 | 452 | 532 | 415 | 3,386 | 3,801 | ||||||||||||||||||||||||
Thereafter | 823 | 6,186 | 7,009 | 79 | 131 | 823 | 4,304 | 5,127 | ||||||||||||||||||||||||
Total minimum lease payments | $ | 5,027 | $ | 46,270 | 51,297 | 8,424 | 7,506 | $ | 4,299 | $ | 42,048 | 46,347 | ||||||||||||||||||||
Less: Amounts representing executory costs | — | (221 | ) | (195 | ) | — | ||||||||||||||||||||||||||
Less: Amounts representing interest | (5,305 | ) | (522 | ) | (496 | ) | (4,186 | ) | ||||||||||||||||||||||||
Present value of future minimum lease payments | 45,992 | 7,681 | 6,815 | 42,161 | ||||||||||||||||||||||||||||
Less: Current obligation under leases | (15,028 | ) | (3,738 | ) | (3,133 | ) | (15,032 | ) | ||||||||||||||||||||||||
Long-term lease obligations | $ | 30,964 | $ | 3,943 | $ | 3,682 | $ | 27,129 | ||||||||||||||||||||||||
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 | ||||||||||||||
As of June 30, 2019 | As of December 31, 2018 | As of September 30, 2019 | As of December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents | $ | 74,271 | $ | 74,271 | $ | — | $ | — | $ | 69,807 | $ | 69,807 | $ | — | $ | — | $ | 107,535 | $ | 107,535 | $ | — | $ | — | $ | 69,807 | $ | 69,807 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Derivative financial instruments | — | — | — | — | 1,765 | — | 1,765 | — | — | — | — | — | 1,765 | — | 1,765 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total financial assets | $ | 74,271 | $ | 74,271 | $ | — | $ | — | $ | 71,572 | $ | 69,807 | $ | 1,765 | $ | — | $ | 107,535 | $ | 107,535 | $ | — | $ | — | $ | 71,572 | $ | 69,807 | $ | 1,765 | $ | — | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments | $ | 8,907 | $ | — | $ | 8,907 | $ | — | $ | 2,275 | $ | — | $ | 2,275 | $ | — | $ | 11,207 | $ | — | $ | 11,207 | $ | — | $ | 2,275 | $ | — | $ | 2,275 | $ | — | ||||||||||||||||||||||||||||||||
Contingent consideration | 3,416 | — | — | 3,416 | 5,098 | — | — | 5,098 | 3,724 | — | — | 3,724 | 5,098 | — | — | 5,098 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total financial liabilities | $ | 12,323 | $ | — | $ | 8,907 | $ | 3,416 | $ | 7,373 | $ | — | $ | 2,275 | $ | 5,098 | $ | 14,931 | $ | — | $ | 11,207 | $ | 3,724 | $ | 7,373 | $ | — | $ | 2,275 | $ | 5,098 | ||||||||||||||||||||||||||||||||
Contingent consideration liability - January 1, 2019 | $ | 5,098 | $ | 5,098 | ||||
Preliminary purchase price | 1,525 | 2,275 | ||||||
Fair value adjustments | (290 | ) | (410 | ) | ||||
Accretion in value | 324 | 434 | ||||||
Amounts paid to sellers | (3,241 | ) | (371 | ) | ||||
Amounts cancelled | (3,302 | ) | ||||||
Contingent consideration liability - June 30, 2019 | $ | 3,416 | ||||||
Contingent consideration liability - September 30, 2019 | $ | 3,724 | ||||||
As of June 30, 2019 | As of December 31, 2018 | As of September 30, 2019 | As of December 31, 2018 | |||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Investments | $ | 9,923 | $ | 9,928 | $ | 10,060 | $ | 10,053 | $ | 4,980 | $ | 4,983 | $ | 10,060 | $ | 10,053 | ||||||||||||||||
Senior Notes (1) | 300,000 | 309,000 | — | — |
(1) | Excludes the impact of unamortized debt issuance costs. |
June 30, | December 31, | |||||||
2019 | 2018 | |||||||
Included in other current liabilities | $ | 6,435 | $ | 5,795 | ||||
Included in other long-term liabilities | 10,167 | 9,447 | ||||||
$ | 16,602 | $ | 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 | |||||
June 30, | December 31, | |||||||
2019 | 2018 | |||||||
Included in other non-current assets | $ | 1,929 | $ | 1,888 |
September 30, 2019 | December 31, 2018 | |||||||
Included in other non-current assets | $ | 1,819 | $ | 1,888 |
Common Stock Awards | Performance-Based Stock Awards | Performance-Based RestrictedStock Units | Common Stock Awards | Performance-Based Stock Awards | Performance-Based RestrictedStock 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 | 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 | 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 | 88,529 | 50.94 | 82,692 | 45.65 | 13,933 | 51.62 | ||||||||||||||||||||||||||||||||||||
Vested | (105,567 | ) | 42.19 | (31,404 | ) | 41.00 | (12,808 | ) | 56.05 | (106,347 | ) | 42.27 | (31,404 | ) | 41.00 | (12,808 | ) | 56.05 | ||||||||||||||||||||||||||||||
Forfeited/Cancelled | (1,632 | ) | 52.30 | (6,697 | ) | 65.60 | (605 | ) | 54.84 | (1,767 | ) | 52.25 | (6,697 | ) | 65.60 | (840 | ) | 53.94 | ||||||||||||||||||||||||||||||
Nonvested awards/units at June 30, 2019 | 154,519 | $ | 52.93 | 160,289 | $ | 50.49 | 13,768 | $ | 51.62 | |||||||||||||||||||||||||||||||||||||||
Nonvested awards/units at September 30, 2019 | 153,604 | $ | 52.93 | 160,289 | $ | 50.49 | 13,533 | $ | 51.62 | |||||||||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Cost of sales | $ | 105 | $ | 180 | $ | 183 | $ | 655 | $ | 97 | $ | 94 | $ | 280 | $ | 749 | ||||||||||||||||
Selling | 57 | 89 | 101 | 372 | 48 | 30 | 149 | 402 | ||||||||||||||||||||||||
Administrative | 2,242 | 1,687 | 4,058 | 3,169 | 1,954 | 1,769 | 6,012 | 4,938 | ||||||||||||||||||||||||
$ | 2,404 | $ | 1,956 | $ | 4,342 | $ | 4,196 | $ | 2,099 | $ | 1,893 | $ | 6,441 | $ | 6,089 | |||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Sales | $ | 3,261 | $ | 3,209 | $ | 5,922 | $ | 6,102 | ||||||||
Purchases | 470 | 472 | 858 | 835 | ||||||||||||
Rent | 257 | 291 | 517 | 572 |
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 |
June 30, | December 31, | |||||||||||||||
2019 | 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||
Included in other current liabilities | $ | 2,558 | $ | 1,848 | $ | 2,514 | $ | 1,848 | ||||||||
Included in other long-term liabilities | 9,636 | 6,608 | 12,511 | 6,608 | ||||||||||||
$ | 12,194 | $ | 8,456 | $ | 15,025 | $ | 8,456 | |||||||||
June 30, | December 31, | |||||||
2019 | 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 | 662 | 53 | ||||||
Total insurance receivables included in other non-current assets | $ | 3,146 | $ | 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 | ||||
Total | Three months ended June 30, 2019 | Six months ended June 30, 2019 | Total Purchase Price | Three months ended September 30, 2019 | Nine months ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 Acquisitions | Date | Acquisition Type | Cash Paid | Seller Obligations | Purchase Price | Revenue | Net Income (Loss) | Revenue | Net Income (Loss) | Date | Acquisition Type | Cash Paid | Seller Obligations | Revenue | Net Income | Revenue | Net Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 Acquisitions | Total Purchase Price | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3/18/2019 | Asset | $ | 5,125 | $ | 1,380 | $ | 6,505 | $ | 2,942 | $ | 177 | $ | 3,430 | $ | 200 | 3/18/2019 | Asset | $ | 5,125 | $ | 1,355 | $ | 6,480 | $ | 3,156 | $ | 174 | $ | 6,586 | $ | 374 | ||||||||||||||||||||||||||||||||||||||||||
Expert Insulation | 6/24/2019 | Asset | 16,165 | 1,782 | 17,947 | 192 | (33 | ) | 192 | (33 | ) | 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 | $ | 21,290 | $ | 3,162 | $ | 24,452 | $ | 3,134 | $ | 144 | $ | 3,622 | $ | 167 | $ | 24,740 | $ | 4,322 | $ | 29,062 | $ | 13,565 | $ | 958 | $ | 17,187 | $ | 1,125 | |||||||||||||||||||||||||||||||||||||||||||||
Total | Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||
Acquisition | Seller | Purchase | June 30, 2018 | June 30, 2018 | ||||||||||||||||||||||||||||||||
2018 Acquisitions | Date | Type | Cash Paid | Obligations | Price | Revenue | Net Income | Revenue | Net Income | |||||||||||||||||||||||||||
CDG | 3/19/2018 | Asset | $ | 9,440 | $ | 1,973 | $ | 11,413 | $ | 3,324 | $ | 80 | $ | 3,724 | $ | 65 | ||||||||||||||||||||
Other | Various | Asset | 9,186 | 1,826 | 11,012 | 4,508 | 315 | 5,779 | 381 | |||||||||||||||||||||||||||
Total | $ | 18,626 | $ | 3,799 | $ | 22,425 | $ | 7,832 | $ | 395 | $ | 9,503 | $ | 446 | ||||||||||||||||||||||
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 June 30, 2019 | As of June 30, 2018 | As of September 30, 2019 | As of September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
1st State | Expert | Total | CDG | Other | Total | 1st State | Expert | Other | Total | CDG | Other | Total | ||||||||||||||||||||||||||||||||||||||||
Estimated fair values: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable | $ | — | $ | 1,796 | $ | 1,796 | $ | 1,731 | $ | 585 | $ | 2,316 | $ | — | $ | 1,796 | $ | 254 | $ | 2,050 | $ | 1,731 | $ | 3,229 | $ | 4,960 | ||||||||||||||||||||||||||
Inventories | 291 | 667 | 958 | 514 | 914 | 1,428 | 291 | 723 | 338 | 1,352 | 514 | 1,027 | 1,541 | |||||||||||||||||||||||||||||||||||||||
Other current assets | — | — | — | 28 | 64 | 92 | — | — | 3 | 3 | 28 | 879 | 907 | |||||||||||||||||||||||||||||||||||||||
Property and equipment | 989 | 235 | 1,224 | 933 | 1,252 | 2,185 | 989 | 235 | 667 | 1,891 | 933 | 1,893 | 2,826 | |||||||||||||||||||||||||||||||||||||||
Intangibles | 3,382 | 6,740 | 10,122 | 3,711 | 6,160 | 9,871 | 3,382 | 6,740 | 2,242 | 12,364 | 3,711 | 16,681 | 20,392 | |||||||||||||||||||||||||||||||||||||||
Goodwill | 1,882 | 8,390 | 10,272 | 4,898 | 2,223 | 7,121 | 1,857 | 8,545 | 930 | 11,332 | 4,898 | 7,007 | 11,905 | |||||||||||||||||||||||||||||||||||||||
Other non-current assets | — | 161 | 161 | 36 | — | 36 | — | 161 | 13 | 174 | 36 | 19 | 55 | |||||||||||||||||||||||||||||||||||||||
Accounts payable and other current liabilities | (39 | ) | (42 | ) | (81 | ) | (438 | ) | (186 | ) | (624 | ) | (39 | ) | (42 | ) | (23 | ) | (104 | ) | (438 | ) | (2,046 | ) | (2,484 | ) | ||||||||||||||||||||||||||
Fair value of assets acquired and purchase price | 6,505 | 17,947 | 24,452 | 11,413 | 11,012 | 22,425 | 6,480 | 18,158 | 4,424 | 29,062 | 11,413 | 28,689 | 40,102 | |||||||||||||||||||||||||||||||||||||||
Less seller obligations | 1,380 | 1,782 | 3,162 | 1,973 | 1,826 | 3,799 | 1,355 | 1,993 | 974 | 4,322 | 1,973 | 3,447 | 5,420 | |||||||||||||||||||||||||||||||||||||||
Cash paid | $ | 5,125 | $ | 16,165 | $ | 21,290 | $ | 9,440 | $ | 9,186 | $ | 18,626 | $ | 5,125 | $ | 16,165 | $ | 3,450 | $ | 24,740 | $ | 9,440 | $ | 25,242 | $ | 34,682 | ||||||||||||||||||||||||||
For the six months ended June 30, | For the nine months ended September 30, | |||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
Acquired intangibles assets | Estimated Fair Value | Weighted Average Estimated Useful Life (yrs.) | Estimated Fair Value | Weighted Average Estimated Useful Life (yrs.) | Estimated Fair Value | Weighted Average Estimated Useful Life | Estimated Fair Value | Weighted Average Estimated Useful Life | ||||||||||||||||||||||||
Customer relationships | $ | 7,100 | 8 | $ | 6,481 | 8 | $ | 8,566 | 8 | $ | 14,480 | 8 | ||||||||||||||||||||
Trademarks and trade names | 1,999 | 15 | 2,740 | 15 | 2,615 | 15 | 3,920 | 14 | ||||||||||||||||||||||||
Non-competition agreements | 1,023 | 5 | 650 | 5 | 1,183 | 5 | 1,530 | 5 | ||||||||||||||||||||||||
Backlog | 460 | 2 |
Unaudited pro forma for the three months ended June 30, | Unaudited pro forma for the six months ended June 30, | Unaudited pro forma for the three months ended September 30, | Unaudited pro forma for the nine months ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Net revenue | $ | 374,496 | $ | 350,072 | $ | 721,822 | $ | 675,298 | $ | 397,839 | $ | 367,600 | $ | 1,123,820 | $ | 1,046,717 | ||||||||||||||||
Net income | 19,013 | 17,330 | 27,865 | 25,027 | 21,240 | 16,856 | 49,154 | 41,997 | ||||||||||||||||||||||||
Basic net income per share | 0.64 | 0.55 | 0.94 | 0.80 | 0.71 | 0.54 | 1.65 | 1.34 | ||||||||||||||||||||||||
Diluted net income per share | 0.64 | 0.55 | 0.93 | 0.79 | 0.71 | 0.54 | 1.65 | 1.33 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
2019 | Change | 2018 | 2019 | Change | 2018 | 2019 | Change | 2018 | 2019 | Change | 2018 | |||||||||||||||||||||||||||||||||||||
Net revenues | $ | 371,814 | 11.8 | % | $ | 332,584 | $ | 713,949 | 12.6 | % | $ | 634,312 | $ | 396,449 | 13.6 | % | $ | 348,999 | $ | 1,110,398 | 12.9 | % | $ | 983,311 | ||||||||||||||||||||||||
Cost of sales | 264,557 | 11.7 | % | 236,941 | 517,254 | 12.8 | % | 458,693 | 278,362 | 10.6 | % | 251,665 | 795,616 | 12.0 | % | 710,358 | ||||||||||||||||||||||||||||||||
Gross profit | $ | 107,257 | 12.1 | % | $ | 95,643 | $ | 196,695 | 12.0 | % | $ | 175,619 | $ | 118,087 | 21.3 | % | $ | 97,334 | $ | 314,782 | 15.3 | % | $ | 272,953 | ||||||||||||||||||||||||
Gross profit percentage | 28.8 | % | 28.8 | % | 27.6 | % | 27.7 | % | 29.8 | % | 27.9 | % | 28.3 | % | 27.8 | % |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
2019 | Change | 2018 | 2019 | Change | 2018 | 2019 | Change | 2018 | 2019 | Change | 2018 | |||||||||||||||||||||||||||||||||||||
Selling | $ | 17,903 | 11.8 | % | $ | 16,020 | $ | 35,033 | 9.9 | % | $ | 31,866 | $ | 19,398 | 11.3 | % | $ | 17,434 | $ | 54,431 | 10.4 | % | $ | 49,300 | ||||||||||||||||||||||||
Percentage of total net revenue | 4.8 | % | 4.8 | % | 4.9 | % | 5.0 | % | 4.9 | % | 5.0 | % | 4.9 | % | 5.0 | % | ||||||||||||||||||||||||||||||||
Administrative | $ | 52,493 | 16.7 | % | $ | 44,971 | $ | 100,924 | 13.2 | % | $ | 89,174 | $ | 55,098 | 14.0 | % | $ | 48,337 | $ | 156,022 | 13.5 | % | $ | 137,511 | ||||||||||||||||||||||||
Percentage of total net revenue | 14.1 | % | 13.5 | % | 14.1 | % | 14.1 | % | 13.9 | % | 13.9 | % | 14.1 | % | 14.0 | % | ||||||||||||||||||||||||||||||||
Amortization | $ | 6,021 | -17.8 | % | $ | 7,322 | $ | 11,909 | -17.6 | % | $ | 14,450 | $ | 6,156 | 17.8 | % | $ | 5,228 | $ | 18,065 | -8.2 | % | $ | 19,678 | ||||||||||||||||||||||||
Percentage of total net revenue | 1.6 | % | 2.2 | % | 1.7 | % | 2.3 | % | 1.6 | % | 1.5 | % | 1.6 | % | 2.0 | % |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
2019 | Change | 2018 | 2019 | Change | 2018 | 2019 | Change | 2018 | 2019 | Change | 2018 | |||||||||||||||||||||||||||||||||||||
Interest expense, net | $ | 5,649 | -0.7 | % | $ | 5,691 | $ | 11,325 | 16.4 | % | $ | 9,731 | $ | 8,458 | 60.1 | % | $ | 5,282 | $ | 19,783 | 31.8 | % | $ | 15,013 | ||||||||||||||||||||||||
Other | 101 | -38.0 | % | 163 | 226 | -20.7 | % | 285 | 155 | 17.4 | % | 132 | 381 | -8.6 | % | 417 | ||||||||||||||||||||||||||||||||
Total other expense | $ | 5,750 | -1.8 | % | $ | 5,854 | $ | 11,551 | 15.3 | % | $ | 10,016 | $ | 8,613 | 59.1 | % | $ | 5,414 | $ | 20,164 | 30.7 | % | $ | 15,430 | ||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Income tax provision | $ | 6,171 | $ | 5,161 | $ | 9,525 | $ | 7,404 | $ | 7,610 | $ | 5,358 | $ | 17,135 | $ | 12,762 | ||||||||||||||||
Effective tax rate | 24.6 | % | 24.0 | % | 25.6 | % | 24.6 | % | 26.4 | % | 25.6 | % | 25.9 | % | 25.0 | % |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Unrealized (loss) gain on cash flow hedge, net of taxes | $ | (3,546 | ) | $ | 475 | $ | (6,295 | ) | $ | 1,635 |
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 |
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) | ||||
$7.0 million in conjunction with renewals of certain insurance programs. |
As of June 30, 2019 | As of December 31, 2018 | As of September 30, 2019 | As of December 31, 2018 | |||||||||||||
Cash and cash equivalents | $ | 95,747 | $ | 90,442 | $ | 234,950 | $ | 90,442 | ||||||||
Short-term investments | 9,923 | 10,060 | 4,980 | 10,060 | ||||||||||||
ABL Revolver | 150,000 | 150,000 | 200,000 | 150,000 | ||||||||||||
Less: outstanding letters of credit and cash-collateral | (32,887 | ) | (28,887 | ) | (34,498 | ) | (28,887 | ) | ||||||||
Total liquidity | $ | 222,783 | $ | 221,615 | $ | 405,432 | $ | 221,615 | ||||||||
(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. |
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. |
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. |
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) | |||||||||||||
April 1 - 30, 2019 | 42,582 | $ | 52.19 | — | — | |||||||||||
May 1 - 31, 2019 | 1,631 | 51.44 | — | — | ||||||||||||
June 1 - 30, 2019 | 92 | 54.10 | — | — | ||||||||||||
44,305 | $ | 52.17 | — | $ | 60.6 million | |||||||||||
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 shares surrendered to the Company by employees to satisfy tax withholding obligations arising in connection with the vesting of |
(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 |
Exhibit Number | Description | |||
4.1 | ||||
10.2 | ||||
10.3 | ||||
31.1* | ||||
31.2* | ||||
32.1* | ||||
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 |
Number | ||||
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 |