Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 04, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36050 | |
Entity Registrant Name | BMC Stock Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-4687975 | |
Entity Address, Address Line One | 8020 Arco Corporate Drive, Suite 400 | |
Entity Address, City or Town | Raleigh, | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27617 | |
City Area Code | 919 | |
Local Phone Number | 431-1000 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | BMCH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 66,749,662 | |
Entity Central Index Key | 0001574815 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 173,259 | $ 150,723 |
Accounts receivable, net of allowances | 344,645 | 298,440 |
Inventories, net | 324,458 | 309,279 |
Contract assets | 36,759 | 32,348 |
Prepaid expenses and other current assets | 66,407 | 56,249 |
Total current assets | 945,528 | 847,039 |
Property and equipment, net of accumulated depreciation | 338,361 | 294,327 |
Operating lease right-of-use assets | 125,093 | 0 |
Customer relationship intangible assets, net of accumulated amortization | 178,526 | 158,563 |
Other intangible assets, net of accumulated amortization | 645 | 325 |
Goodwill | 283,366 | 262,997 |
Other long-term assets | 8,669 | 12,860 |
Total assets | 1,880,188 | 1,576,111 |
Current liabilities | ||
Accounts payable | 201,709 | 123,495 |
Accrued expenses and other liabilities | 103,003 | 110,276 |
Contract liabilities | 34,501 | 34,888 |
Income taxes payable | 8,879 | 902 |
Interest payable | 9,572 | 4,759 |
Current portion: Long-term debt and finance lease obligations | 6,369 | |
Current portion: Long-term debt and finance lease obligations | 6,661 | |
Current portion: Operating lease liabilities | 24,343 | 0 |
Current portion: Insurance reserves | 19,358 | 15,198 |
Total current liabilities | 407,734 | 296,179 |
Insurance reserves | 43,506 | 41,270 |
Long-term debt | 345,823 | 345,197 |
Long-term portion of finance lease obligations | 9,832 | |
Long-term portion of finance lease obligations | 8,845 | |
Long-term portion of operating lease liabilities | 107,498 | 0 |
Deferred income taxes | 7,891 | 3,034 |
Other long-term liabilities | 323 | 6,927 |
Total liabilities | 922,607 | 701,452 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value, 50.0 million shares authorized, no shares issued and outstanding at September 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.01 par value, 300.0 million shares authorized, 68.3 million and 67.7 million shares issued, and 66.8 million and 67.2 million outstanding at September 30, 2019 and December 31, 2018, respectively | 683 | 677 |
Additional paid-in capital | 683,460 | 672,095 |
Retained earnings | 299,991 | 210,345 |
Treasury stock, at cost, 1.5 million and 0.5 million shares at September 30, 2019 and December 31, 2018, respectively | (26,553) | (8,458) |
Total stockholders’ equity | 957,581 | 874,659 |
Total liabilities and stockholders’ equity | $ 1,880,188 | $ 1,576,111 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50 | 50 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300 | 300 |
Common stock, shares issued (shares) | 68.3 | 67.7 |
Common stock, shares outstanding (in shares) | 66.8 | 67.2 |
Treasury stock (shares) | 1.5 | 0.5 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales | $ 964,249 | $ 990,264 | $ 2,736,029 | $ 2,822,927 |
Cost of sales | 709,482 | 748,961 | 2,019,363 | 2,142,941 |
Gross profit | 254,767 | 241,303 | 716,666 | 679,986 |
Selling, general and administrative expenses | 189,284 | 176,204 | 540,649 | 506,236 |
Depreciation expense | 10,501 | 10,059 | 30,117 | 29,323 |
Amortization expense | 4,552 | 3,790 | 13,237 | 11,263 |
Merger and integration costs | 1,295 | 1,459 | 5,467 | 3,627 |
Impairment of assets | 115 | 0 | 644 | 0 |
Total operating expenses | 205,747 | 191,512 | 590,114 | 550,449 |
Income from operations | 49,020 | 49,791 | 126,552 | 129,537 |
Other income (expense) | ||||
Interest expense | (5,773) | (5,926) | (17,385) | (17,916) |
Other income, net | 3,540 | 2,953 | 10,159 | 7,830 |
Income before income taxes | 46,787 | 46,818 | 119,326 | 119,451 |
Income tax expense | 13,190 | 10,960 | 29,680 | 27,829 |
Net income | $ 33,597 | $ 35,858 | $ 89,646 | $ 91,622 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 66,685 | 67,329 | 66,681 | 67,246 |
Diluted (in shares) | 67,361 | 67,896 | 67,240 | 67,743 |
Net income per common share | ||||
Basic (in dollars per share) | $ 0.50 | $ 0.53 | $ 1.34 | $ 1.36 |
Diluted (in dollars per share) | $ 0.50 | $ 0.53 | $ 1.33 | $ 1.35 |
Building Products [Member] | ||||
Net sales | $ 728,465 | $ 773,787 | $ 2,061,766 | $ 2,201,863 |
Cost of sales | 528,737 | 568,713 | 1,484,384 | 1,631,022 |
Construction Services [Member] | ||||
Net sales | 235,784 | 216,477 | 674,263 | 621,064 |
Cost of sales | $ 180,745 | $ 180,248 | $ 534,979 | $ 511,919 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY Statement - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Stockholders' equity beginning of period at Dec. 31, 2017 | $ 746,899 | $ 673 | $ (3,821) | $ 659,440 | $ 90,607 |
Common stock issued beginning of period (shares) at Dec. 31, 2017 | 67,286 | ||||
Treasury stock beginning of period (shares) at Dec. 31, 2017 | 207 | ||||
Stockholders' Equity [Abstract] | |||||
Exercise of stock options | 588 | $ 1 | 587 | ||
Exercise of stock options (shares) | 55 | ||||
Shares vested for long-term incentive plan | 0 | $ 1 | (1) | ||
Shares vested for long-term incentive plan (shares) | 155 | ||||
Repurchases of common stock equity related to equity award activity | (1,046) | $ (1,046) | |||
Repurchases of common stock related to equity award activity (shares) | 53 | ||||
Share withholdings made in satisfaction of exercise price | 0 | $ (17) | 17 | ||
Share withholdings made in satisfaction of exercise price (shares) | 1 | ||||
Stock compensation expense | 1,775 | 1,775 | |||
Net income | 15,359 | 15,359 | |||
Stockholders' equity end of period at Mar. 31, 2018 | 763,575 | $ 675 | $ (4,884) | 661,818 | 105,966 |
Common stock issued end of period (shares) at Mar. 31, 2018 | 67,496 | ||||
Treasury stock end of period (shares) at Mar. 31, 2018 | 261 | ||||
Stockholders' equity beginning of period at Dec. 31, 2017 | 746,899 | $ 673 | $ (3,821) | 659,440 | 90,607 |
Common stock issued beginning of period (shares) at Dec. 31, 2017 | 67,286 | ||||
Treasury stock beginning of period (shares) at Dec. 31, 2017 | 207 | ||||
Stockholders' Equity [Abstract] | |||||
Net income | 91,622 | ||||
Stockholders' equity end of period at Sep. 30, 2018 | 846,658 | $ 676 | $ (5,208) | 668,961 | 182,229 |
Common stock issued end of period (shares) at Sep. 30, 2018 | 67,633 | ||||
Treasury stock end of period (shares) at Sep. 30, 2018 | 276 | ||||
Stockholders' equity beginning of period at Mar. 31, 2018 | 763,575 | $ 675 | $ (4,884) | 661,818 | 105,966 |
Common stock issued beginning of period (shares) at Mar. 31, 2018 | 67,496 | ||||
Treasury stock beginning of period (shares) at Mar. 31, 2018 | 261 | ||||
Stockholders' Equity [Abstract] | |||||
Exercise of stock options | 44 | $ 0 | 44 | ||
Exercise of stock options (shares) | 2 | ||||
Shares vested for long-term incentive plan | 0 | $ 1 | (1) | ||
Shares vested for long-term incentive plan (shares) | 65 | ||||
Repurchases of common stock equity related to equity award activity | (103) | $ (103) | |||
Repurchases of common stock related to equity award activity (shares) | 5 | ||||
Stock compensation expense | 3,141 | 3,141 | |||
Net income | 40,405 | 40,405 | |||
Stockholders' equity end of period at Jun. 30, 2018 | 807,062 | $ 676 | $ (4,987) | 665,002 | 146,371 |
Common stock issued end of period (shares) at Jun. 30, 2018 | 67,563 | ||||
Treasury stock end of period (shares) at Jun. 30, 2018 | 266 | ||||
Stockholders' Equity [Abstract] | |||||
Exercise of stock options | 649 | $ 0 | 649 | ||
Exercise of stock options (shares) | 35 | ||||
Shares vested for long-term incentive plan | 0 | $ 0 | |||
Shares vested for long-term incentive plan (shares) | 35 | ||||
Repurchases of common stock equity related to equity award activity | (221) | $ (221) | |||
Repurchases of common stock related to equity award activity (shares) | 10 | ||||
Stock compensation expense | 3,310 | 3,310 | |||
Net income | 35,858 | 35,858 | |||
Stockholders' equity end of period at Sep. 30, 2018 | 846,658 | $ 676 | $ (5,208) | 668,961 | 182,229 |
Common stock issued end of period (shares) at Sep. 30, 2018 | 67,633 | ||||
Treasury stock end of period (shares) at Sep. 30, 2018 | 276 | ||||
Stockholders' equity beginning of period at Dec. 31, 2018 | $ 874,659 | $ 677 | $ (8,458) | 672,095 | 210,345 |
Common stock issued beginning of period (shares) at Dec. 31, 2018 | 67,700 | 67,708 | |||
Treasury stock beginning of period (shares) at Dec. 31, 2018 | 500 | 478 | |||
Stockholders' Equity [Abstract] | |||||
Exercise of stock options | $ 132 | $ 0 | 132 | ||
Exercise of stock options (shares) | 8 | ||||
Shares vested for long-term incentive plan | 0 | $ 3 | (3) | ||
Shares vested for long-term incentive plan (shares) | 290 | ||||
Repurchases of common stock under share repurchase program | (15,709) | $ (15,709) | |||
Repurchases of common stock under share repurchase program (shares) | 920 | ||||
Repurchases of common stock equity related to equity award activity | (1,330) | $ (1,330) | |||
Repurchases of common stock related to equity award activity (shares) | 74 | ||||
Stock compensation expense | 2,915 | 2,915 | |||
Net income | 20,350 | 20,350 | |||
Stockholders' equity end of period at Mar. 31, 2019 | 881,017 | $ 680 | $ (25,497) | 675,139 | 230,695 |
Common stock issued end of period (shares) at Mar. 31, 2019 | 68,006 | ||||
Treasury stock end of period (shares) at Mar. 31, 2019 | 1,472 | ||||
Stockholders' equity beginning of period at Dec. 31, 2018 | $ 874,659 | $ 677 | $ (8,458) | 672,095 | 210,345 |
Common stock issued beginning of period (shares) at Dec. 31, 2018 | 67,700 | 67,708 | |||
Treasury stock beginning of period (shares) at Dec. 31, 2018 | 500 | 478 | |||
Stockholders' Equity [Abstract] | |||||
Repurchases of common stock under share repurchase program | $ (16,400) | ||||
Repurchases of common stock under share repurchase program (shares) | 1,000 | ||||
Net income | $ 89,646 | ||||
Stockholders' equity end of period at Sep. 30, 2019 | $ 957,581 | $ 683 | $ (26,553) | 683,460 | 299,991 |
Common stock issued end of period (shares) at Sep. 30, 2019 | 68,300 | 68,266 | |||
Treasury stock end of period (shares) at Sep. 30, 2019 | 1,500 | 1,526 | |||
Stockholders' equity beginning of period at Mar. 31, 2019 | $ 881,017 | $ 680 | $ (25,497) | 675,139 | 230,695 |
Common stock issued beginning of period (shares) at Mar. 31, 2019 | 68,006 | ||||
Treasury stock beginning of period (shares) at Mar. 31, 2019 | 1,472 | ||||
Stockholders' Equity [Abstract] | |||||
Exercise of stock options | 529 | $ 1 | 528 | ||
Exercise of stock options (shares) | 76 | ||||
Shares vested for long-term incentive plan | 0 | $ 1 | (1) | ||
Shares vested for long-term incentive plan (shares) | 73 | ||||
Repurchases of common stock under share repurchase program | (737) | $ (737) | |||
Repurchases of common stock under share repurchase program (shares) | 41 | ||||
Repurchases of common stock equity related to equity award activity | (137) | $ (137) | |||
Repurchases of common stock related to equity award activity (shares) | 6 | ||||
Stock compensation expense | 3,248 | 3,248 | |||
Net income | 35,699 | 35,699 | |||
Stockholders' equity end of period at Jun. 30, 2019 | 919,619 | $ 682 | $ (26,371) | 678,914 | 266,394 |
Common stock issued end of period (shares) at Jun. 30, 2019 | 68,155 | ||||
Treasury stock end of period (shares) at Jun. 30, 2019 | 1,519 | ||||
Stockholders' Equity [Abstract] | |||||
Exercise of stock options | 1,533 | $ 1 | 1,532 | ||
Exercise of stock options (shares) | 84 | ||||
Shares vested for long-term incentive plan | 0 | $ 0 | |||
Shares vested for long-term incentive plan (shares) | 27 | ||||
Repurchases of common stock equity related to equity award activity | (182) | $ (182) | |||
Repurchases of common stock related to equity award activity (shares) | 7 | ||||
Stock compensation expense | 3,014 | 3,014 | |||
Net income | 33,597 | 33,597 | |||
Stockholders' equity end of period at Sep. 30, 2019 | $ 957,581 | $ 683 | $ (26,553) | $ 683,460 | $ 299,991 |
Common stock issued end of period (shares) at Sep. 30, 2019 | 68,300 | 68,266 | |||
Treasury stock end of period (shares) at Sep. 30, 2019 | 1,500 | 1,526 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net income | $ 89,646 | $ 91,622 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 39,722 | 37,297 |
Amortization of intangible assets | 13,237 | 11,263 |
Amortization of debt issuance costs | 1,124 | 1,263 |
Deferred income taxes | 4,857 | 1,314 |
Non-cash stock compensation expense | 9,177 | 8,226 |
Gain on sale of property, equipment and real estate | (1,839) | (3,435) |
Other non-cash adjustments | 2,314 | 686 |
Change in assets and liabilities, net of effects of acquisitions | ||
Accounts receivable, net of allowances | (24,068) | (59,768) |
Inventories, net | (494) | (41,883) |
Accounts payable | 68,456 | 29,897 |
Other assets and liabilities | (3,715) | 34,156 |
Net cash provided by operating activities | 198,417 | 110,638 |
Cash flows from investing activities | ||
Purchases of businesses, net of cash acquired | (85,780) | (20,970) |
Purchases of property, equipment and real estate | (67,582) | (42,704) |
Proceeds from sale of property, equipment and real estate | 4,444 | 10,968 |
Insurance proceeds | 107 | 1,991 |
Net cash used in investing activities | (148,811) | (50,715) |
Cash flows from financing activities | ||
Proceeds from revolving line of credit | 110,987 | 713,264 |
Repayments of proceeds from revolving line of credit | (110,987) | (717,726) |
Repurchases of common stock under share repurchase program | (16,446) | 0 |
Payments on finance lease obligations | (5,094) | |
Payments on finance lease obligations | (5,937) | |
Principal payments on other notes | 0 | (75) |
Other financing activities, net | (5,530) | (3,508) |
Net cash used in financing activities | (27,070) | (13,982) |
Net increase in cash and cash equivalents | 22,536 | 45,941 |
Cash and cash equivalents | ||
Beginning of period | 150,723 | 11,750 |
End of period | 173,259 | 57,691 |
Supplemental disclosure of non-cash investing and financing transactions | ||
Acquisition-related holdback payments due at future date | 5,478 | 1,403 |
Acquisition-related post-closing adjustment receivable | $ 951 | 0 |
Assets acquired under capital lease obligations | $ 821 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization These unaudited financial statements represent the financial statements of BMC Stock Holdings, Inc. and its subsidiaries. All references to “BMC” or the “Company” mean BMC Stock Holdings, Inc. and its subsidiaries. The Company distributes lumber and building materials to new construction and repair and remodeling contractors. Additionally, the Company provides solution-based services to its customers, including component design, product specification and installation services. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) that permit reduced disclosure for interim periods. The condensed consolidated balance sheet as of December 31, 2018 was derived from audited financial statements, but does not include all necessary disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). The unaudited condensed consolidated financial statements include all accounts of the Company and, in the opinion of management, include all recurring adjustments and normal accruals necessary for a fair statement of the Company’s financial position, results of operations and cash flows for the dates and periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (“ 2018 Annual Report on Form 10-K”). Results for interim periods are not necessarily indicative of the results to be expected during the remainder of the current year or for any future period. All material intercompany accounts and transactions have been eliminated in consolidation. Comprehensive income Comprehensive income is equal to the net income for all periods presented. Cash equivalents Cash equivalents are highly liquid investments that are readily convertible to known amounts of cash and have a maturity of three months or less from the time of purchase. As of September 30, 2019 and December 31, 2018 , the Company had cash equivalents of $156.9 million and $146.1 million , respectively. Cash equivalents are valued at amortized cost, which approximates fair value due to the short-term maturity of these instruments, and were classified as Level 1 or Level 2 measurements in accordance with Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures (“ASC 820”). Share repurchase program In November 2018, the Company’s board of directors authorized a $75.0 million share repurchase program, which was to expire on November 20, 2019. During October 2019, the Company’s board of directors authorized extending this share repurchase program for one year, such that it will expire on November 20, 2020. During the nine months ended September 30, 2019 , utilizing cash from operations, the Company repurchased 1.0 million shares at a weighted average price of $17.11 per share for a total cost of $16.4 million . These repurchased shares are available for future issuance and are reflected as treasury stock, at cost, on the condensed consolidated balance sheets. As of September 30, 2019 , the Company had approximately $55.7 million of capacity remaining under the current share repurchase authorization. Statement of cash flows Proceeds from revolving line of credit and repayments of proceeds from revolving line of credit as presented on the condensed consolidated statements of cash flows includes all cash activities and transactions between the Company and its associated lenders in relation to the revolving line of credit, excluding interest and fees, and is specifically inclusive of operating cash receipts that are automatically applied to the revolving line of credit pursuant to a cash sweep agreement. See Note 6 for further details on the Company’s revolving line of credit. Prior Period Misstatement During the three months ended June 30, 2019, the Company identified that a former credit manager within one of its local operations violated the Company’s credit policy by intentionally misapplying certain customer payments, both within a single customer balance as well as across multiple customer balances, and created inappropriate debit memos, all with the intent to manipulate the aging of certain unpaid customer invoices. These inappropriate activities resulted in an understatement of the Company’s provision for doubtful accounts in previously issued annual and interim financial statements (the “Prior Period Misstatement”). The Company has corrected for such Prior Period Misstatement by recording, during the three months ended June 30, 2019 (which is included in the nine months ended September 30, 2019), an out of period bad debt expense of approximately $4.3 million in selling, general and administrative expenses and a corresponding decrease to accounts receivable, net of allowances. The Company has concluded that the financial impact of the Prior Period Misstatement is not material to any of its previously issued financial statements and that the correction of such Prior Period Misstatement is not material to either the nine months ended September 30, 2019 or to the expected financial results for the year ending December 31, 2019. Recently adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-02, Leases, and issued subsequent amendments to the initial guidance to provide additional clarification on specific topics (“ASU 2016-02” or “Topic 842”). ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. The Company adopted ASU 2016-02 on January 1, 2019 by recording ROU assets for its operating leases totaling approximately $110 million and corresponding lease liabilities totaling approximately $115 million . The impact of adopting ASU 2016-02 was not material to the Company’s results of operations or cash flows for the three and nine months ended September 30, 2019 . See Note 5 for further details. Recently issued accounting pronouncements not yet adopted In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and issued subsequent amendments to the initial guidance to provide additional clarification on specific topics (“ASU 2016-13”). ASU 2016-13 amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. ASU 2016-13 is effective for the Company’s annual and interim periods beginning on January 1, 2020, with early adoption permitted beginning January 1, 2019. Modified retrospective application is required, with certain exceptions. The Company expects to adopt the standard on January 1, 2020. The Company does not expect adoption of the standard to have a material impact on the Company’s allowance for financial instruments within the scope of the standard, including its trade receivables and contract assets. The Company continues to evaluate the disclosure requirements of the standard. In January 2017, the FASB issued Accounting Standards Update 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires computation of the implied fair value of a reporting unit’s goodwill. The amount of a goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for the Company’s annual goodwill impairment test and any interim tests during the Company’s annual and interim periods beginning on January 1, 2020. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. Prospective application is required. The adoption of the standard is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements by removing, modifying and adding certain disclosure requirements in ASC 820. ASU 2018-13 is effective for the Company’s annual and interim periods beginning on January 1, 2020, with early adoption permitted. Certain disclosures in ASU 2018-13 are required to be applied prospectively, while others require retrospective application. The adoption of the standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions For all acquisitions, the Company allocates the purchase price to assets acquired and liabilities assumed as of the date of acquisition based on the estimated fair values at the date of acquisition. The excess of the fair value of the purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill. Management makes significant estimates and assumptions when determining the fair value of assets acquired and liabilities assumed. These estimates include, but are not limited to, discount rates, projected future net sales, projected future expected cash flows and useful lives. The Company accounts for all acquisitions using the acquisition method of accounting under ASC 805, Business Combinations, whereby the results of operations of the acquired company are included in the Company’s consolidated financial statements beginning on the acquisition date. 2019 Acquisitions The Company completed the following acquisitions during the nine months ended September 30, 2019 : • On January 14, 2019 , the Company acquired substantially all of the assets and assumed certain liabilities of Barefoot and Company (“Barefoot”), a supplier of windows, exterior doors, hardware, specialty products and installation services in the Charlotte, North Carolina metropolitan area. • On February 8, 2019 , the Company acquired substantially all of the assets and assumed certain liabilities of Locust Lumber, a supplier of lumber products and building materials primarily to custom homebuilders and professional remodeling contractors in the Charlotte, North Carolina metropolitan area. • On August 1, 2019 , the Company acquired substantially all of the assets and assumed certain liabilities of Kingston Lumber, a supplier of lumber products, trusses and other building materials primarily to custom homebuilders and professional remodeling contractors in the Seattle, Washington metropolitan area. • On September 3, 2019 , the Company acquired substantially all of the assets and assumed certain liabilities of Heritage One Door & Carpentry (“Heritage One”), a supplier of pre-hung doors, millwork, hardware and finish carpentry services in the Sacramento, California metropolitan area. • On September 16, 2019 , the Company acquired substantially all of the assets and assumed certain liabilities of Colorado Fasteners, a supplier of fasteners, tools and other related products in the Denver, Colorado metropolitan area. The Barefoot, Locust Lumber, Kingston Lumber, Heritage One and Colorado Fasteners acquisitions (the “2019 Acquisitions”) enhance the Company’s value-added offerings and footprint in the respective metropolitan areas. The preliminary purchase price, in aggregate, for the 2019 Acquisitions was $90.9 million . The preliminary purchase price includes holdbacks which, after certain post-closing adjustments, require the Company to pay $5.5 million , in aggregate, to the sellers of Barefoot, Kingston Lumber, Heritage One and Colorado Fasteners one year from the respective closing dates. The holdback amounts may be further reduced under certain circumstances. The Company funded the 2019 Acquisitions through available cash. The preliminary purchase price allocation for the 2019 Acquisitions, in aggregate, resulted in the initial recognition of goodwill of $20.4 million , customer relationship intangible assets of $33.1 million , non-compete agreement intangible assets of $0.5 million , accounts receivable of $22.1 million , inventory of $14.7 million and property and equipment of $5.6 million , as well as other operating assets and liabilities. The customer relationship and non-compete agreement intangible assets have a weighted average useful life of 9 years and 4 years , respectively. Goodwill represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and non-contractual relationships, as well as expected future synergies. All of the goodwill is expected to be deductible for tax purposes. The purchase price allocations for the 2019 Acquisitions are preliminary and based upon all information available to the Company at the present time, and are subject to change. The Company is in the process of finalizing its valuation of the acquired intangible assets, property and equipment and inventory, and therefore, the initial purchase accounting for the 2019 Acquisitions is not complete. As the Company receives additional information during the measurement period, the fair values assigned to the assets and liabilities may be adjusted. For the year ended December 31, 2018, the 2019 Acquisitions generated net sales, in aggregate, of approximately $199 million . The Company incurred transaction costs of $0.2 million and $0.5 million for the three and nine months ended September 30, 2019 , respectively, related to the 2019 Acquisitions. Net sales and estimated pre-tax earnings for the 2019 Acquisitions included in the unaudited condensed consolidated statements of operations during the three months ended September 30, 2019 were $38.7 million and $2.9 million , respectively. Net sales and estimated pre-tax earnings for the 2019 Acquisitions included in the unaudited condensed consolidated statements of operations during the nine months ended September 30, 2019 were $84.6 million and $7.1 million , respectively. The impact of the 2019 Acquisitions was not considered significant for the reporting of pro forma financial information. 2018 Acquisition On March 1, 2018 , the Company acquired substantially all of the assets and assumed certain liabilities of W.E. Shone Co. (“Shone Lumber”), a supplier of building materials in the state of Delaware, for a purchase price of $22.4 million . This acquisition enhances the Company’s value-added offerings and footprint in the Mid-Atlantic region. The purchase price included a holdback that, after certain post-closing adjustments, required the Company to pay $1.4 million to the sellers during the nine months ended September 30, 2019 . The Company funded the transaction through available cash and borrowings on the Company’s revolving line of credit. The purchase price allocation resulted in the recognition of goodwill of $2.5 million , a customer relationship intangible asset of $7.0 million , accounts receivable of $6.4 million , inventory of $8.8 million , property and equipment of $2.9 million and total current liabilities of $5.3 million , as well as other operating assets. The customer relationship intangible asset has a useful life of 9 years . Goodwill represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and non-contractual relationships, as well as expected future synergies. All of the goodwill recognized is expected to be deductible for tax purposes. Net sales and estimated pre-tax earnings for Shone Lumber included in the unaudited condensed consolidated statements of operations for the three months ended September 30, 2018 were $18.7 million and $0.8 million , respectively. Net sales and estimated pre-tax earnings for Shone Lumber included in the unaudited condensed consolidated statements of operations from the March 1, 2018 acquisition date to September 30, 2018 were $45.0 million and $2.8 million , respectively. The impact of the acquisition was not considered significant for the reporting of pro forma financial information. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable consist of the following at September 30, 2019 and December 31, 2018 : (in thousands) September 30, December 31, Trade receivables $ 358,388 $ 305,363 Allowance for doubtful accounts (11,214 ) (4,904 ) Other allowances (2,529 ) (2,019 ) $ 344,645 $ 298,440 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Adoption of Topic 842 On January 1, 2019, the Company adopted Topic 842 by applying the guidance at adoption date. As a result, the comparative information as of December 31, 2018 and for the three and nine months ended September 30, 2018 has not been adjusted and continues to be reported under ASC 840, Leases (“ASC 840”). The Company elected the package of practical expedients permitted under the transition guidance within Topic 842, which allowed the Company to carry forward its identification of contracts that are or contain leases, its historical lease classification and its accounting for initial direct costs for existing leases. The impact of adopting Topic 842 was not material to the Company’s results of operations or cash flows for the three and nine months ended September 30, 2019 . Beginning January 1, 2019, the Company recognized ROU assets and lease liabilities for the Company’s operating leases on its unaudited condensed consolidated balance sheets. ROU assets for the Company’s operating leases are presented within operating lease right-of-use assets on the Company’s condensed consolidated balance sheets, while the lease liabilities for the Company’s operating leases are presented within operating lease liabilities, with a current and long-term portion. Upon adoption of Topic 842, the balances at the adoption date of prepaid and accrued rent, lease incentives and unamortized assets and liabilities related to favorable and unfavorable leases were reclassified and are now presented within operating lease right-of-use assets on the Company’s condensed consolidated balance sheets. Refer to further discussion of the Company’s ROU assets and lease liabilities below. The Company’s accounting for its historical capital leases, which are now presented as finance leases under Topic 842, remained substantially unchanged. Lease Arrangements The Company has operating and finance leases primarily for its facilities, office space, land, fleet vehicles and equipment. Many of the Company’s leases are noncancellable and typically have an initial lease term of five to ten years, and most provide options at the Company’s election to renew for specified periods of time. The Company’s leases generally provide for fixed annual rentals. Certain of the Company’s leases include provisions for escalating rent, as an example, based on changes in the consumer price index. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement. Most of the Company’s leases require it to pay taxes, insurance and maintenance expenses associated with the properties. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company determines if an arrangement contains a lease at inception. The Company has lease agreements with lease and non-lease components, which for all such leases are generally accounted for separately. The Company has elected the short-term lease exception under Topic 842 for all leases and as such, leases with an initial term of 12 months or less are not recorded on the unaudited condensed consolidated balance sheets. The Company recognizes lease expense for short-term leases on a straight-line basis over the lease term. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As the Company’s leases generally do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and any initial direct costs incurred. The Company’s lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases The components of lease cost for the three and nine months ended September 30, 2019 were as follows: (in thousands) Classification Three Months Ended Nine Months Ended Operating lease cost (a) Selling, general and administrative expenses $ 9,921 $ 29,181 Finance lease cost Amortization of ROU assets Depreciation expense $ 1,676 $ 4,971 Interest on lease liabilities Interest expense 156 492 Total finance lease cost $ 1,832 $ 5,463 (a) Includes short-term leases and variable lease costs, which are not material. The Company subleases certain facilities to third parties. Income from sublease rentals for the three and nine months ended September 30, 2019 was not material. The following table presents the Company’s right-of-use assets and lease liabilities as of September 30, 2019 : (in thousands) Classification September 30, Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 125,093 Finance lease right-of-use assets (a) Property and equipment, net of accumulated depreciation 18,064 Total leased right-of-use assets $ 143,157 Liabilities Current portion Operating lease liabilities Current portion of operating lease liabilities $ 24,343 Finance lease liabilities Current portion of long-term debt and finance lease obligations 6,369 Noncurrent portion Operating lease liabilities Long-term portion of operating lease liabilities 107,498 Finance lease liabilities Long-term portion of finance lease obligations 9,832 Total lease liabilities $ 148,042 (a) Finance lease right-of-use assets are presented net of accumulated amortization of $42.9 million as of September 30, 2019 . The following table presents the weighted average remaining lease term and weighted average discount rate for the Company’s leases as of September 30, 2019 : September 30, Weighted average remaining lease term (years) Operating leases 6.0 Finance leases 4.8 Weighted average discount rate Operating leases 6.4 % Finance leases 5.0 % Future maturities of lease liabilities as of September 30, 2019 were as follows: (in thousands) Operating Leases Finance Leases Total 2019 (a) $ 8,111 $ 1,881 $ 9,992 2020 31,277 6,245 37,522 2021 29,213 3,040 32,253 2022 26,056 1,574 27,630 2023 22,720 1,379 24,099 Thereafter 43,000 4,398 47,398 Total lease payments 160,377 18,517 178,894 Less: Interest (28,536 ) (2,316 ) (30,852 ) Present value of lease liabilities $ 131,841 $ 16,201 $ 148,042 (a) Excludes the nine months ended September 30, 2019 . As of September 30, 2019 , the Company had additional leases for a facility and two office spaces that have not yet commenced, as the facility and office spaces have not yet been made available to the Company. The facility and two office space leases are expected to commence in 2019 and 2020 and contain undiscounted lease payments of $15.8 million in aggregate over the terms of the leases, which range from 5 to 10 years. These payments are not included in the table above. Cash paid for amounts included in the measurement of lease liabilities and right-of-use assets obtained in exchange for lease obligations during the nine months ended September 30, 2019 were as follows: (in thousands) Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 24,086 Operating cash flows from finance leases 485 Financing cash flows from finance leases 5,094 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 34,836 Finance leases 5,789 Disclosures related to periods prior to adoption of Topic 842 As previously discussed, the Company adopted Topic 842 by applying the guidance at the adoption date, January 1, 2019. As required, the following disclosure is provided for periods prior to adoption, which continue to be presented in accordance with ASC 840. Future minimum lease payments under noncancellable operating leases (with initial or remaining lease terms in excess of one year) and future minimum capital lease payments as of December 31, 2018 are as follows: (in thousands) Capital Leases Operating Leases 2019 $ 7,245 $ 30,431 2020 5,599 24,210 2021 2,356 21,551 2022 873 17,908 2023 660 14,607 Thereafter — 34,279 16,733 $ 142,986 (a) Less: Amounts representing interest (1,227 ) Total obligation under capital leases 15,506 Less: Current portion of capital lease obligation (6,661 ) Long-term capital lease obligation $ 8,845 (a) Minimum operating lease payments have not been reduced by minimum sublease rentals of $0.1 million |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt as of September 30, 2019 and December 31, 2018 consists of the following: (in thousands) September 30, December 31, Senior secured notes, due 2024 $ 350,000 $ 350,000 Revolving credit agreement — — 350,000 350,000 Unamortized debt issuance costs related to senior secured notes (4,177 ) (4,803 ) 345,823 345,197 Less: Current portion of long-term debt — — $ 345,823 $ 345,197 Senior Secured Notes On September 15, 2016 , the Company issued $350.0 million of senior secured notes due 2024 (the “Senior Notes”) under an unregistered private placement not subject to the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The Senior Notes were issued by BMC East, LLC, a 100% owned subsidiary of the Company, and are guaranteed by the Company and the other subsidiaries that guarantee the Credit Agreement (as defined below). Each of the subsidiary guarantors is 100% owned, directly or indirectly, by the Company, and all guarantees are full and unconditional and joint and several. The interest rate is fixed at 5.5% and is payable semiannually on April 1 and October 1. As of September 30, 2019 , the estimated market value of the Senior Notes was approximately $14.4 million higher than the carrying amount. The fair value is based on institutional trading activity and was classified as a Level 2 measurement in accordance with ASC 820. Revolving Credit Agreement On December 1, 2015 , the Company entered into a senior secured credit agreement with Wells Fargo Capital Finance, as administrative agent, and certain other lenders (as amended by the first and second amendments, the “Existing Credit Agreement”), which includes a revolving line of credit (the “Revolver”). On May 31, 2019 , the Company entered into the third amendment to the Existing Credit Agreement (the “Third Amendment”), which amended and restated the Existing Credit Agreement (the “Credit Agreement”) and increased the aggregate commitment from $375.0 million to $425.0 million . The Company had no outstanding borrowings under the Revolver and net availability of $367.8 million as of September 30, 2019 . The Company had $56.1 million in letters of credit outstanding under the Credit Agreement as of September 30, 2019 . The Credit Agreement matures at the earlier of (i) May 31, 2024 or (ii) if the Senior Notes are refinanced or repaid, the date that is 91 days prior to the new maturity date of the replacement notes or other indebtedness that replaced or refinanced the Senior Notes. The effective maturity date of the Revolver was extended from December 1, 2020 , the effective maturity date of the Existing Credit Agreement, to May 31, 2024 . After considering the increase to the remaining term and the increase in the aggregate commitment resulting from the Third Amendment, the overall borrowing capacity of the Revolver increased. Accordingly, all existing unamortized debt issuance costs and new debt issuance costs related to the Third Amendment are being amortized through May 31, 2024. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of revenue The following table shows net sales classified by major product category for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Structural components $ 175,344 $ 166,919 $ 483,575 $ 470,365 Lumber & lumber sheet goods 274,908 357,286 798,722 1,013,495 Millwork, doors & windows 285,750 251,606 796,807 730,318 Other building products & services 228,247 214,453 656,925 608,749 Total net sales $ 964,249 $ 990,264 $ 2,736,029 $ 2,822,927 The following table reflects the Company’s estimate of net sales by each customer type for the three and nine months ended September 30, 2019 and 2018 . Certain previously reported amounts for the three and nine months ended September 30, 2018 were revised in the table below. The revisions were not material to the previously issued financial statements. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Single-family homebuilders $ 718,690 $ 760,131 $ 2,064,382 $ 2,163,784 Remodeling contractors 115,756 113,416 314,277 327,700 Multi-family, commercial & other contractors 129,803 116,717 357,370 331,443 Total net sales $ 964,249 $ 990,264 $ 2,736,029 $ 2,822,927 Contract balances The following table reflects the Company’s contract balances as of September 30, 2019 and December 31, 2018 : (in thousands) September 30, December 31, Change Receivables, including unbilled receivables presented in prepaid expenses and other current assets $ 353,992 $ 306,370 $ 47,622 Contract assets 36,759 32,348 4,411 Contract liabilities $ 34,501 $ 34,888 $ (387 ) During the nine months ended September 30, 2019 , the Company’s contract assets increased by $4.4 million and the Company’s contract liabilities decreased by $0.4 million . The changes in contract assets and liabilities were primarily due to the timing of revenue recognition, as the balances were not materially impacted by any other factors. For the three and nine months ended September 30, 2019 , the Company recognized revenue of $0.9 million and $32.0 million , respectively, that was included in contract liabilities as of December 31, 2018 . Revenue recognized related to performance obligations that were satisfied or partially satisfied in previous periods was not material for the three and nine months ended September 30, 2019 . As permitted by ASC 606, Revenue from Contracts with Customers, the Company has elected not to disclose the value of unsatisfied performance obligations, as the Company’s contracts generally have an original expected length of one year or less. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company evaluates its deferred tax assets quarterly to determine if valuation allowances are required. In assessing the realizability of deferred tax assets, the Company considers both positive and negative evidence in determining whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company had a valuation allowance of $0.1 million against its deferred tax assets related to certain state tax jurisdictions as of September 30, 2019 and December 31, 2018 . To the extent the Company generates future tax net operating losses, the Company may be required to increase the valuation allowance on deferred tax assets, which may unfavorably impact the effective tax rate. The Company has no material uncertain tax positions as of September 30, 2019 and December 31, 2018 . During the three and nine months ended September 30, 2019, the Company recorded an out of period expense of $1.6 million and $1.5 million , respectively, in Income tax expense and a corresponding increase to Income taxes payable to correct for a misstatement related to its calculation of excess windfall tax benefits on stock option exercises in certain prior periods (the “Income Tax Adjustment”). The Company has concluded that the financial impact of the Income Tax Adjustment is not material to any of its previously issued financial statements and that the correction of such Income Tax Adjustment is not material to either the three or nine months ended September 30, 2019 or to the expected financial results for the year ending December 31, 2019. For the three and nine months ended September 30, 2019 , the Company’s effective tax rate was 28.2% and 24.9% , respectively, which varied from the federal statutory rate of 21% primarily due to state income taxes and the Income Tax Adjustment. Excluding the Income Tax Adjustment, the Company’s effective tax rate was 24.7% and 23.6% for the three and nine months ended September 30, 2019, respectively. For the three and nine months ended September 30, 2018 , the Company’s effective tax rate was 23.4% and 23.3% , respectively, which varied from the federal statutory rate of 21% primarily due to state income taxes. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, various claims, legal proceedings and litigation are asserted or commenced against the Company principally arising from alleged product liability, warranty, casualty, construction defect, contract, tort, employment and other disputes. In determining loss contingencies, management considers the likelihood of loss as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss is recorded when it is considered probable that such a liability has been incurred and when the amount of loss can be reasonably estimated. It is not certain that the Company will prevail in these matters. However, the Company does not currently believe that the ultimate outcome of any pending matters will have a material adverse effect on its consolidated financial position, results of operations or cash flows. As of December 31, 2018, the Company had accrued $3.0 million in relation to pending litigation that was recorded during the year ended December 31, 2017. During the nine months ended September 30, 2019 , the Company paid $2.8 million |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation The following table highlights the expense related to stock based compensation for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Restricted stock units (a) $ 3,014 $ 3,281 $ 9,177 $ 8,049 Restricted stock — 2 — 100 Stock options — 27 — 77 Stock based compensation $ 3,014 $ 3,310 $ 9,177 $ 8,226 (a) Includes service-based and performance-based restricted stock units. During the nine months ended September 30, 2019 , the Company granted 0.5 million service-based restricted stock unit awards and performance-based restricted stock units that allow for a maximum of 0.4 million performance-based restricted stock units to be earned. During the three and nine months ended September 30, 2018 , the Company granted 0.1 million and 0.7 million service-based restricted stock unit awards, respectively. In addition, during the three and nine months ended September 30, 2018 , the Company granted performance-based restricted stock units that allow for a maximum of 0.2 million and 0.5 million |
Segments
Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segments | Segments ASC 280, Segment Reporting, defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s operating segments consist of the Mid-Atlantic, Southeast, Texas, Intermountain and Western divisions. The CODM reviews aggregate information to allocate resources and assess performance. Based on the CODM’s review, as well as the similar economic characteristics, nature of products, distribution methods and customers of the divisions, the Company has aggregated its operating segments into one reportable segment, “Geographic divisions.” In addition to the Company’s reportable segment, the Company’s consolidated results include “Other reconciling items.” Other reconciling items comprises the Company’s corporate activities and other income and expenses not allocated to the operating segments. The following tables present Net Sales, Adjusted EBITDA and certain other measures for the reportable segment and total Company operations for the three and nine months ended September 30, 2019 and 2018 . Adjusted EBITDA is used as a performance metric by the CODM in determining how to allocate resources and assess performance. For the nine months ended September 30, 2019 , Adjusted EBITDA for the Geographic divisions reportable segment includes the out of period correction of the Prior Period Misstatement of $4.3 million . Three Months Ended September 30, 2019 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 964,249 $ 254,767 $ 17,974 $ 96,752 Other reconciling items — — 561 (22,094 ) $ 964,249 $ 254,767 $ 18,535 Three Months Ended September 30, 2018 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 990,264 $ 241,303 $ 16,106 $ 92,698 Other reconciling items — — 520 (18,330 ) $ 990,264 $ 241,303 $ 16,626 Nine Months Ended September 30, 2019 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 2,736,029 $ 716,666 $ 51,121 $ 260,537 Other reconciling items — — 1,838 (58,150 ) $ 2,736,029 $ 716,666 $ 52,959 Nine Months Ended September 30, 2018 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 2,822,927 $ 679,986 $ 47,079 $ 252,873 Other reconciling items — — 1,481 (52,496 ) $ 2,822,927 $ 679,986 $ 48,560 Reconciliation to consolidated financial statements: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Income before income taxes $ 46,787 $ 46,818 $ 119,326 $ 119,451 Interest expense 5,773 5,926 17,385 17,916 Interest income (1,047 ) (117 ) (2,832 ) (117 ) Depreciation and amortization 18,535 16,626 52,959 48,560 Merger and integration costs 1,295 1,459 5,467 3,627 Non-cash stock compensation expense 3,014 3,310 9,177 8,226 Impairment of assets 115 — 644 — Acquisition costs 229 — 827 267 Sale of Coleman Floor (a) (43 ) — (344 ) — Other items (b) — 346 (222 ) 2,447 Adjusted EBITDA of other reconciling items 22,094 18,330 58,150 52,496 Adjusted EBITDA of geographic divisions reportable segment $ 96,752 $ 92,698 $ 260,537 $ 252,873 (a) Represents the effect of certain customary post-closing adjustments related to the November 1, 2018 disposition of the Company’s Coleman Floor business (“Coleman Floor”). (b) For the nine months ended September 30, 2019 , represents income from a recovery made by the Company related to a fire at one of the Company’s facilities during 2015 and the effect of the settlement of pending litigation for an amount less than what was previously accrued. See Note 9 for further details on the settlement of pending litigation. For the three and nine months ended September 30, 2018 , represents costs incurred in connection with the departure of the Company’s former chief executive officer and the search for and appointment of his permanent replacement. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic net income per share (“EPS”) is calculated by dividing net income attributable to common stockholders by the weighted average shares outstanding during the period. Diluted EPS is calculated by adjusting weighted average shares outstanding for the dilutive effect of potential common shares, determined using the treasury-stock method. For purposes of the diluted EPS calculation, stock options, restricted stock and restricted stock unit awards are considered to be potential common shares. Performance-based restricted stock units are not included in the calculation of diluted EPS until they are contingently issuable. The basic and diluted EPS calculations for the three and nine months ended September 30, 2019 and 2018 are presented below: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share amounts) 2019 2018 2019 2018 Income attributable to common stockholders $ 33,597 $ 35,858 $ 89,646 $ 91,622 Weighted average common shares outstanding, basic 66,685 67,329 66,681 67,246 Effect of dilutive securities: Restricted stock units (a) 544 399 450 321 Stock options 132 166 109 155 Restricted stock — 2 — 21 Weighted average common shares outstanding, diluted 67,361 67,896 67,240 67,743 Basic income per common share $ 0.50 $ 0.53 $ 1.34 $ 1.36 Diluted income per common share $ 0.50 $ 0.53 $ 1.33 $ 1.35 (a) Includes service-based and contingently issuable performance-based restricted stock units. For the three and nine months ended September 30, 2019 and 2018 , there were no anti-dilutive restricted stock units, stock options or restricted stock. As of September 30, 2019 , the number of currently outstanding performance-based restricted stock units that are issued upon vesting could range from zero to a maximum of 0.9 million . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) that permit reduced disclosure for interim periods. The condensed consolidated balance sheet as of December 31, 2018 was derived from audited financial statements, but does not include all necessary disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). The unaudited condensed consolidated financial statements include all accounts of the Company and, in the opinion of management, include all recurring adjustments and normal accruals necessary for a fair statement of the Company’s financial position, results of operations and cash flows for the dates and periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (“ 2018 Annual Report on Form 10-K”). Results for interim periods are not necessarily indicative of the results to be expected during the remainder of the current year or for any future period. All material intercompany accounts and transactions have been eliminated in consolidation. |
Comprehensive income | Comprehensive income Comprehensive income is equal to the net income for all periods presented. |
Cash and cash equivalents | Cash equivalents Cash equivalents are highly liquid investments that are readily convertible to known amounts of cash and have a maturity of three months or less from the time of purchase. As of September 30, 2019 and December 31, 2018 , the Company had cash equivalents of $156.9 million and $146.1 million , respectively. Cash equivalents are valued at amortized cost, which approximates fair value due to the short-term maturity of these instruments, and were classified as Level 1 or Level 2 measurements in accordance with Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures (“ASC 820”). |
Statement of cash flows | Statement of cash flows Proceeds from revolving line of credit and repayments of proceeds from revolving line of credit as presented on the condensed consolidated statements of cash flows includes all cash activities and transactions between the Company and its associated lenders in relation to the revolving line of credit, excluding interest and fees, and is specifically inclusive of operating cash receipts that are automatically applied to the revolving line of credit pursuant to a cash sweep agreement. See Note 6 for further details on the Company’s revolving line of credit. |
Recently issued accounting pronouncements | Recently adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-02, Leases, and issued subsequent amendments to the initial guidance to provide additional clarification on specific topics (“ASU 2016-02” or “Topic 842”). ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. The Company adopted ASU 2016-02 on January 1, 2019 by recording ROU assets for its operating leases totaling approximately $110 million and corresponding lease liabilities totaling approximately $115 million . The impact of adopting ASU 2016-02 was not material to the Company’s results of operations or cash flows for the three and nine months ended September 30, 2019 . See Note 5 for further details. Recently issued accounting pronouncements not yet adopted In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and issued subsequent amendments to the initial guidance to provide additional clarification on specific topics (“ASU 2016-13”). ASU 2016-13 amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. ASU 2016-13 is effective for the Company’s annual and interim periods beginning on January 1, 2020, with early adoption permitted beginning January 1, 2019. Modified retrospective application is required, with certain exceptions. The Company expects to adopt the standard on January 1, 2020. The Company does not expect adoption of the standard to have a material impact on the Company’s allowance for financial instruments within the scope of the standard, including its trade receivables and contract assets. The Company continues to evaluate the disclosure requirements of the standard. In January 2017, the FASB issued Accounting Standards Update 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires computation of the implied fair value of a reporting unit’s goodwill. The amount of a goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for the Company’s annual goodwill impairment test and any interim tests during the Company’s annual and interim periods beginning on January 1, 2020. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. Prospective application is required. The adoption of the standard is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements by removing, modifying and adding certain disclosure requirements in ASC 820. ASU 2018-13 is effective for the Company’s annual and interim periods beginning on January 1, 2020, with early adoption permitted. Certain disclosures in ASU 2018-13 are required to be applied prospectively, while others require retrospective application. The adoption of the standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Acquisitions (Policies)
Acquisitions (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions For all acquisitions, the Company allocates the purchase price to assets acquired and liabilities assumed as of the date of acquisition based on the estimated fair values at the date of acquisition. The excess of the fair value of the purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill. Management makes significant estimates and assumptions when determining the fair value of assets acquired and liabilities assumed. These estimates include, but are not limited to, discount rates, projected future net sales, projected future expected cash flows and useful lives. The Company accounts for all acquisitions using the acquisition method of accounting under ASC 805, Business Combinations, whereby the results of operations of the acquired company are included in the Company’s consolidated financial statements beginning on the acquisition date. |
Leases (Policies)
Leases (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Lease Arrangements The Company has operating and finance leases primarily for its facilities, office space, land, fleet vehicles and equipment. Many of the Company’s leases are noncancellable and typically have an initial lease term of five to ten years, and most provide options at the Company’s election to renew for specified periods of time. The Company’s leases generally provide for fixed annual rentals. Certain of the Company’s leases include provisions for escalating rent, as an example, based on changes in the consumer price index. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement. Most of the Company’s leases require it to pay taxes, insurance and maintenance expenses associated with the properties. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company determines if an arrangement contains a lease at inception. The Company has lease agreements with lease and non-lease components, which for all such leases are generally accounted for separately. The Company has elected the short-term lease exception under Topic 842 for all leases and as such, leases with an initial term of 12 months or less are not recorded on the unaudited condensed consolidated balance sheets. The Company recognizes lease expense for short-term leases on a straight-line basis over the lease term. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As the Company’s leases generally do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and any initial direct costs incurred. The Company’s lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. |
Income Taxes (Policies)
Income Taxes (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income Taxes The Company evaluates its deferred tax assets quarterly to determine if valuation allowances are required. In assessing the realizability of deferred tax assets, the Company considers both positive and negative evidence in determining whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Commitments and Contingencies (
Commitments and Contingencies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and ContingenciesFrom time to time, various claims, legal proceedings and litigation are asserted or commenced against the Company principally arising from alleged product liability, warranty, casualty, construction defect, contract, tort, employment and other disputes. In determining loss contingencies, management considers the likelihood of loss as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss is recorded when it is considered probable that such a liability has been incurred and when the amount of loss can be reasonably estimated. |
Earnings Per Share (Policies)
Earnings Per Share (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings Per Share Basic net income per share (“EPS”) is calculated by dividing net income attributable to common stockholders by the weighted average shares outstanding during the period. Diluted EPS is calculated by adjusting weighted average shares outstanding for the dilutive effect of potential common shares, determined using the treasury-stock method. For purposes of the diluted EPS calculation, stock options, restricted stock and restricted stock unit awards are considered to be potential common shares. Performance-based restricted stock units are not included in the calculation of diluted EPS until they are contingently issuable. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Accounts receivable consist of the following at September 30, 2019 and December 31, 2018 : (in thousands) September 30, December 31, Trade receivables $ 358,388 $ 305,363 Allowance for doubtful accounts (11,214 ) (4,904 ) Other allowances (2,529 ) (2,019 ) $ 344,645 $ 298,440 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of lease cost | The components of lease cost for the three and nine months ended September 30, 2019 were as follows: (in thousands) Classification Three Months Ended Nine Months Ended Operating lease cost (a) Selling, general and administrative expenses $ 9,921 $ 29,181 Finance lease cost Amortization of ROU assets Depreciation expense $ 1,676 $ 4,971 Interest on lease liabilities Interest expense 156 492 Total finance lease cost $ 1,832 $ 5,463 (a) Includes short-term leases and variable lease costs, which are not material. |
ROU assets and lease liabilities | The following table presents the Company’s right-of-use assets and lease liabilities as of September 30, 2019 : (in thousands) Classification September 30, Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 125,093 Finance lease right-of-use assets (a) Property and equipment, net of accumulated depreciation 18,064 Total leased right-of-use assets $ 143,157 Liabilities Current portion Operating lease liabilities Current portion of operating lease liabilities $ 24,343 Finance lease liabilities Current portion of long-term debt and finance lease obligations 6,369 Noncurrent portion Operating lease liabilities Long-term portion of operating lease liabilities 107,498 Finance lease liabilities Long-term portion of finance lease obligations 9,832 Total lease liabilities $ 148,042 (a) Finance lease right-of-use assets are presented net of accumulated amortization of $42.9 million as of September 30, 2019 . |
Weighted average remaining term and discount rate | The following table presents the weighted average remaining lease term and weighted average discount rate for the Company’s leases as of September 30, 2019 : September 30, Weighted average remaining lease term (years) Operating leases 6.0 Finance leases 4.8 Weighted average discount rate Operating leases 6.4 % Finance leases 5.0 % |
Future minimum lease payments under non-cancellable leases | Future maturities of lease liabilities as of September 30, 2019 were as follows: (in thousands) Operating Leases Finance Leases Total 2019 (a) $ 8,111 $ 1,881 $ 9,992 2020 31,277 6,245 37,522 2021 29,213 3,040 32,253 2022 26,056 1,574 27,630 2023 22,720 1,379 24,099 Thereafter 43,000 4,398 47,398 Total lease payments 160,377 18,517 178,894 Less: Interest (28,536 ) (2,316 ) (30,852 ) Present value of lease liabilities $ 131,841 $ 16,201 $ 148,042 (a) Excludes the nine months ended September 30, 2019 . |
Cash paid for amounts included in the measurement of lease liabilities and ROU assets | Cash paid for amounts included in the measurement of lease liabilities and right-of-use assets obtained in exchange for lease obligations during the nine months ended September 30, 2019 were as follows: (in thousands) Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 24,086 Operating cash flows from finance leases 485 Financing cash flows from finance leases 5,094 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 34,836 Finance leases 5,789 |
Future minimum lease payments prior to adoption of Topic 842 | Future minimum lease payments under noncancellable operating leases (with initial or remaining lease terms in excess of one year) and future minimum capital lease payments as of December 31, 2018 are as follows: (in thousands) Capital Leases Operating Leases 2019 $ 7,245 $ 30,431 2020 5,599 24,210 2021 2,356 21,551 2022 873 17,908 2023 660 14,607 Thereafter — 34,279 16,733 $ 142,986 (a) Less: Amounts representing interest (1,227 ) Total obligation under capital leases 15,506 Less: Current portion of capital lease obligation (6,661 ) Long-term capital lease obligation $ 8,845 (a) Minimum operating lease payments have not been reduced by minimum sublease rentals of $0.1 million |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Long-term debt as of September 30, 2019 and December 31, 2018 consists of the following: (in thousands) September 30, December 31, Senior secured notes, due 2024 $ 350,000 $ 350,000 Revolving credit agreement — — 350,000 350,000 Unamortized debt issuance costs related to senior secured notes (4,177 ) (4,803 ) 345,823 345,197 Less: Current portion of long-term debt — — $ 345,823 $ 345,197 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following table shows net sales classified by major product category for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Structural components $ 175,344 $ 166,919 $ 483,575 $ 470,365 Lumber & lumber sheet goods 274,908 357,286 798,722 1,013,495 Millwork, doors & windows 285,750 251,606 796,807 730,318 Other building products & services 228,247 214,453 656,925 608,749 Total net sales $ 964,249 $ 990,264 $ 2,736,029 $ 2,822,927 The following table reflects the Company’s estimate of net sales by each customer type for the three and nine months ended September 30, 2019 and 2018 . Certain previously reported amounts for the three and nine months ended September 30, 2018 were revised in the table below. The revisions were not material to the previously issued financial statements. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Single-family homebuilders $ 718,690 $ 760,131 $ 2,064,382 $ 2,163,784 Remodeling contractors 115,756 113,416 314,277 327,700 Multi-family, commercial & other contractors 129,803 116,717 357,370 331,443 Total net sales $ 964,249 $ 990,264 $ 2,736,029 $ 2,822,927 |
Contract balances | The following table reflects the Company’s contract balances as of September 30, 2019 and December 31, 2018 : (in thousands) September 30, December 31, Change Receivables, including unbilled receivables presented in prepaid expenses and other current assets $ 353,992 $ 306,370 $ 47,622 Contract assets 36,759 32,348 4,411 Contract liabilities $ 34,501 $ 34,888 $ (387 ) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of expenses related to share-based payments | The following table highlights the expense related to stock based compensation for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Restricted stock units (a) $ 3,014 $ 3,281 $ 9,177 $ 8,049 Restricted stock — 2 — 100 Stock options — 27 — 77 Stock based compensation $ 3,014 $ 3,310 $ 9,177 $ 8,226 (a) Includes service-based and performance-based restricted stock units. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of net sales, adjusted EBITDA and certain other measures by reportable segment | The following tables present Net Sales, Adjusted EBITDA and certain other measures for the reportable segment and total Company operations for the three and nine months ended September 30, 2019 and 2018 . Adjusted EBITDA is used as a performance metric by the CODM in determining how to allocate resources and assess performance. For the nine months ended September 30, 2019 , Adjusted EBITDA for the Geographic divisions reportable segment includes the out of period correction of the Prior Period Misstatement of $4.3 million . Three Months Ended September 30, 2019 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 964,249 $ 254,767 $ 17,974 $ 96,752 Other reconciling items — — 561 (22,094 ) $ 964,249 $ 254,767 $ 18,535 Three Months Ended September 30, 2018 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 990,264 $ 241,303 $ 16,106 $ 92,698 Other reconciling items — — 520 (18,330 ) $ 990,264 $ 241,303 $ 16,626 Nine Months Ended September 30, 2019 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 2,736,029 $ 716,666 $ 51,121 $ 260,537 Other reconciling items — — 1,838 (58,150 ) $ 2,736,029 $ 716,666 $ 52,959 Nine Months Ended September 30, 2018 (in thousands) Net Sales Gross Profit Depreciation & Amortization Adjusted EBITDA Geographic divisions $ 2,822,927 $ 679,986 $ 47,079 $ 252,873 Other reconciling items — — 1,481 (52,496 ) $ 2,822,927 $ 679,986 $ 48,560 |
Reconciliation to consolidated financial statements | Reconciliation to consolidated financial statements: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Income before income taxes $ 46,787 $ 46,818 $ 119,326 $ 119,451 Interest expense 5,773 5,926 17,385 17,916 Interest income (1,047 ) (117 ) (2,832 ) (117 ) Depreciation and amortization 18,535 16,626 52,959 48,560 Merger and integration costs 1,295 1,459 5,467 3,627 Non-cash stock compensation expense 3,014 3,310 9,177 8,226 Impairment of assets 115 — 644 — Acquisition costs 229 — 827 267 Sale of Coleman Floor (a) (43 ) — (344 ) — Other items (b) — 346 (222 ) 2,447 Adjusted EBITDA of other reconciling items 22,094 18,330 58,150 52,496 Adjusted EBITDA of geographic divisions reportable segment $ 96,752 $ 92,698 $ 260,537 $ 252,873 (a) Represents the effect of certain customary post-closing adjustments related to the November 1, 2018 disposition of the Company’s Coleman Floor business (“Coleman Floor”). (b) For the nine months ended September 30, 2019 , represents income from a recovery made by the Company related to a fire at one of the Company’s facilities during 2015 and the effect of the settlement of pending litigation for an amount less than what was previously accrued. See Note 9 for further details on the settlement of pending litigation. For the three and nine months ended September 30, 2018 , represents costs incurred in connection with the departure of the Company’s former chief executive officer and the search for and appointment of his permanent replacement. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted EPS calculations | The basic and diluted EPS calculations for the three and nine months ended September 30, 2019 and 2018 are presented below: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share amounts) 2019 2018 2019 2018 Income attributable to common stockholders $ 33,597 $ 35,858 $ 89,646 $ 91,622 Weighted average common shares outstanding, basic 66,685 67,329 66,681 67,246 Effect of dilutive securities: Restricted stock units (a) 544 399 450 321 Stock options 132 166 109 155 Restricted stock — 2 — 21 Weighted average common shares outstanding, diluted 67,361 67,896 67,240 67,743 Basic income per common share $ 0.50 $ 0.53 $ 1.34 $ 1.36 Diluted income per common share $ 0.50 $ 0.53 $ 1.33 $ 1.35 (a) Includes service-based and contingently issuable performance-based restricted stock units. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | |
Organization Consolidation And Presentation [Line Items] | ||||||
Cash equivalents | $ 156,900 | $ 146,100 | ||||
Share repurchase program authorized | $ 75,000 | |||||
Repurchases of common stock under share repurchase program (shares) | 1 | |||||
Weighted average cost of repurchased shares | $ 17.11 | |||||
Repurchases of common stock under share repurchase program | $ 737 | $ 15,709 | $ 16,400 | |||
Remaining under current repurchase authorization | 55,700 | |||||
Operating lease right-of-use assets | 125,093 | $ 110,000 | $ 0 | |||
Operating lease liability | 131,841 | $ 115,000 | ||||
Bad Debt Reserve [Member] | Selling, General and Administrative Expenses [Member] | ||||||
Organization Consolidation And Presentation [Line Items] | ||||||
Prior period adjustment | 4,300 | |||||
Bad Debt Reserve [Member] | Accounts Receivable [Member] | ||||||
Organization Consolidation And Presentation [Line Items] | ||||||
Prior period adjustment | $ (4,300) |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | Sep. 16, 2019 | Sep. 03, 2019 | Aug. 01, 2019 | Feb. 08, 2019 | Jan. 14, 2019 | Mar. 01, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||||||||
Acquisition holdback | $ 5,478 | $ 1,403 | ||||||||||
Goodwill | $ 283,366 | 283,366 | $ 262,997 | |||||||||
Transaction costs | 229 | $ 0 | 827 | $ 267 | ||||||||
Barefoot [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Date of acquisition | Jan. 14, 2019 | |||||||||||
Locust [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Date of acquisition | Feb. 8, 2019 | |||||||||||
Kingston Lumber [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Date of acquisition | Aug. 1, 2019 | |||||||||||
Heritage One [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Date of acquisition | Sep. 3, 2019 | |||||||||||
Colorado Fasteners [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Date of acquisition | Sep. 16, 2019 | |||||||||||
2019 Acquisitions [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price | 90,900 | 90,900 | ||||||||||
Acquisition holdback | 5,500 | |||||||||||
Goodwill | 20,400 | 20,400 | ||||||||||
Accounts receivable | 22,100 | 22,100 | ||||||||||
Inventory | 14,700 | 14,700 | ||||||||||
Property and equipment | 5,600 | 5,600 | ||||||||||
Pre-acquisition sales | $ 199,000 | |||||||||||
Transaction costs | 200 | 500 | ||||||||||
Net sales of acquiree since acquisition date | 38,700 | 84,600 | ||||||||||
Estimated pre-tax earnings of acquiree since acquisition date | 2,900 | 7,100 | ||||||||||
Shone Lumber [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Date of acquisition | Mar. 1, 2018 | |||||||||||
Purchase price | $ 22,400 | |||||||||||
Payment of acquisition holdback | 1,400 | |||||||||||
Goodwill | 2,500 | |||||||||||
Accounts receivable | 6,400 | |||||||||||
Inventory | 8,800 | |||||||||||
Property and equipment | 2,900 | |||||||||||
Current liabilities | 5,300 | |||||||||||
Net sales of acquiree since acquisition date | 18,700 | $ 45,000 | ||||||||||
Estimated pre-tax earnings of acquiree since acquisition date | $ 800 | $ 2,800 | ||||||||||
Customer relationships [Member] | 2019 Acquisitions [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | 33,100 | $ 33,100 | ||||||||||
Useful life | 9 years | |||||||||||
Customer relationships [Member] | Shone Lumber [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 7,000 | |||||||||||
Useful life | 9 years | |||||||||||
Non-compete agreements [Member] | 2019 Acquisitions [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 500 | $ 500 | ||||||||||
Useful life | 4 years |
Accounts Receivable (Accounts R
Accounts Receivable (Accounts Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Trade receivables | $ 358,388 | $ 305,363 |
Allowance for doubtful accounts | (11,214) | (4,904) |
Other allowances | (2,529) | (2,019) |
Accounts receivable, net | $ 344,645 | $ 298,440 |
Leases (Components of Lease Cos
Leases (Components of Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | ||
Total finance lease cost | $ 1,832 | $ 5,463 | |
Selling, General and Administrative Expenses [Member] | |||
Operating lease cost | [1] | 9,921 | 29,181 |
Depreciation [Member] | |||
Finance lease cost: Amortization of ROU assets | 1,676 | 4,971 | |
Interest Expense [Member] | |||
Finance lease cost: Interest on lease liabilities | $ 156 | $ 492 | |
[1] | Includes short-term leases and variable lease costs, which are not material. |
Leases (ROU Assets and Lease Li
Leases (ROU Assets and Lease Liabilities) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Operating lease right-of-use assets | $ 125,093 | $ 110,000 | $ 0 | |
Total leased right-of-use assets | 143,157 | |||
Current portion: Operating lease liabilities | 24,343 | 0 | ||
Noncurrent portion: Operating lease liabilities | 107,498 | $ 0 | ||
Noncurrent portion: Finance lease liabilities | 9,832 | |||
Total lease liabilities | 148,042 | |||
Property And Equipment [Member] | ||||
Finance lease right-of-use assets | [1] | 18,064 | ||
Finance lease ROU asset accumulated amortization | 42,900 | |||
Current Portion Of Long-Term Debt And Finance Lease Obligations [Member] | ||||
Current portion: Finance lease liabilities | $ 6,369 | |||
[1] | Finance lease right-of-use assets are presented net of accumulated amortization of $42.9 million as of September 30, 2019 . |
Leases (Weighted Average Lease
Leases (Weighted Average Lease Term and Discount Rate) (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term: Operating leases | 6 years |
Weighted average remaining lease term: Finance leases | 4 years 9 months 18 days |
Weighted average discount rate: Operating leases | 6.40% |
Weighted average discount rate: Finance leases | 5.00% |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | |
Operating Leases | |||
2019 | [1] | $ 8,111 | |
2020 | 31,277 | ||
2021 | 29,213 | ||
2022 | 26,056 | ||
2023 | 22,720 | ||
Thereafter | 43,000 | ||
Total lease payments | 160,377 | ||
Less: Interest | (28,536) | ||
Present value of lease liabilities | 131,841 | $ 115,000 | |
Finance Leases | |||
2019 | [1] | 1,881 | |
2020 | 6,245 | ||
2021 | 3,040 | ||
2022 | 1,574 | ||
2023 | 1,379 | ||
Thereafter | 4,398 | ||
Total lease payments | 18,517 | ||
Less: Interest | (2,316) | ||
Present value of lease liabilities | 16,201 | ||
2019 | [1] | 9,992 | |
2020 | 37,522 | ||
2021 | 32,253 | ||
2022 | 27,630 | ||
2023 | 24,099 | ||
Thereafter | 47,398 | ||
Total lease payments | 178,894 | ||
Less: Interest | (30,852) | ||
Present value of lease liabilities | $ 148,042 | ||
[1] | Excludes the nine months ended September 30, 2019 . |
Leases (Cash Paid for Lease Lia
Leases (Cash Paid for Lease Liabilities and ROU Assets) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 24,086 |
Operating cash flows from finance leases | 485 |
Financing cash flows from finance leases | 5,094 |
ROU assets obtained in exchange for lease obligations: Operating | 34,836 |
ROU assets obtained in exchange for lease obligations: Finance | $ 5,789 |
Leases (Future Minimum Lease _2
Leases (Future Minimum Lease Payments before Adoption of 842) (Details) $ in Thousands | Dec. 31, 2018USD ($) | |
Capital Leases | ||
2019 | $ 7,245 | |
2020 | 5,599 | |
2021 | 2,356 | |
2022 | 873 | |
2023 | 660 | |
Thereafter | 0 | |
Future minimum payments due | 16,733 | |
Less: Amounts representing interest | (1,227) | |
Total obligation under capital leases | 15,506 | |
Less: Current portion of capital lease obligation | (6,661) | |
Long-term portion of finance lease obligations | 8,845 | |
Operating Leases | ||
2019 | 30,431 | |
2020 | 24,210 | |
2021 | 21,551 | |
2022 | 17,908 | |
2023 | 14,607 | |
Thereafter | 34,279 | |
Future minimum payments due | 142,986 | [1] |
Future minimum sublease rentals | $ 100 | |
[1] | Minimum operating lease payments have not been reduced by minimum sublease rentals of $0.1 million |
Leases Leases (Narrative) (Deta
Leases Leases (Narrative) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Leases not yet commenced | $ 15.8 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Leases not yet commenced, terms | 5 years |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Leases not yet commenced, terms | 10 years |
Debt (Debt Table) (Details)
Debt (Debt Table) (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 15, 2016 |
Debt Instrument [Line Items] | |||
Outstanding borrowings | $ 350,000,000 | $ 350,000,000 | |
Unamortized debt issuance costs related to senior secured notes | (4,177,000) | (4,803,000) | |
Total debt | 345,823,000 | 345,197,000 | |
Less: Current portion of long-term debt | 0 | 0 | |
Long-term debt | 345,823,000 | 345,197,000 | |
Senior secured notes, due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings | 350,000,000 | 350,000,000 | $ 350,000,000 |
Revolving credit agreement [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings | $ 0 | $ 0 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | May 31, 2019 | Sep. 15, 2016 | Dec. 01, 2015 | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 350,000,000 | $ 350,000,000 | |||
Senior secured notes, due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance date | Sep. 15, 2016 | ||||
Interest rate | 5.50% | ||||
Estimated market value above (below) carrying amount | 14,400,000 | ||||
Outstanding borrowings | $ 350,000,000 | 350,000,000 | 350,000,000 | ||
Revolving credit agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Date entered into agreement | Dec. 1, 2015 | ||||
Maximum borrowing capacity | $ 375,000,000 | ||||
Outstanding borrowings | 0 | $ 0 | |||
Net availability | 367,800,000 | ||||
Letters of credit outstanding | $ 56,100,000 | ||||
Revolving credit agreement maturity date | Dec. 1, 2020 | ||||
Third Amendment [Member] | Revolving credit agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Date entered into agreement | May 31, 2019 | ||||
Maximum borrowing capacity | $ 425,000,000 | ||||
Revolving credit agreement maturity date | May 31, 2024 | ||||
Guarantor Subsidiaries [Member] | Senior secured notes, due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Ownership percent | 100.00% | ||||
BMC East, LLC [Member] | Senior secured notes, due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Ownership percent | 100.00% |
Revenue (Revenue by Product Cat
Revenue (Revenue by Product Category) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 964,249 | $ 990,264 | $ 2,736,029 | $ 2,822,927 |
Structural components [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 175,344 | 166,919 | 483,575 | 470,365 |
Lumber & lumber sheet goods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 274,908 | 357,286 | 798,722 | 1,013,495 |
Millwork, doors & windows [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 285,750 | 251,606 | 796,807 | 730,318 |
Other building products & services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 228,247 | $ 214,453 | $ 656,925 | $ 608,749 |
Revenue (Revenue by Customer Ty
Revenue (Revenue by Customer Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 964,249 | $ 990,264 | $ 2,736,029 | $ 2,822,927 |
Single-family homebuilders [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 718,690 | 760,131 | 2,064,382 | 2,163,784 |
Remodeling contractors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 115,756 | 113,416 | 314,277 | 327,700 |
Multi-family, commercial & other contractors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 129,803 | $ 116,717 | $ 357,370 | $ 331,443 |
Revenue (Contract Assets and Li
Revenue (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Receivables, including unbilled receivables presented in prepaid expenses and other current assets | $ 353,992 | $ 306,370 |
Receivables, including unbilled receivables change | 47,622 | |
Contract assets | 36,759 | 32,348 |
Contract assets change | 4,411 | |
Contract liabilities | 34,501 | $ 34,888 |
Contract liabilities change | $ (387) |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Contract assets change | $ 4,411 | |
Contract liabilities change | (387) | |
Revenue recognized previously included in contract liabilities | $ 900 | $ 32,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||||
Valuation allowance | $ 0.1 | $ 0.1 | $ 0.1 | ||
Effective income tax rate | 28.20% | 23.40% | 24.90% | 23.30% | |
Federal statutory rate | 21.00% | 21.00% | 21.00% | 21.00% | |
Effective income tax rate, excluding income tax adjustment | 24.70% | 23.60% | |||
Excess Windfall Tax Benefits [Member] | Income Taxes Payable [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Out of period adjustment | $ (1.5) | ||||
Income Tax Expense [Member] | Excess Windfall Tax Benefits [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Out of period adjustment | $ 1.6 | $ 1.5 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | |||
Pending litigation expense | $ 3 | ||
Pending litigation accrued | $ 3 | ||
Litigation settlement payment | $ 2.8 |
Stock Based Compensation (Stock
Stock Based Compensation (Stock based compensation expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation | $ 3,014 | $ 3,310 | $ 9,177 | $ 8,226 | |
Restricted stock units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation | [1] | 3,014 | 3,281 | 9,177 | 8,049 |
Restricted stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation | 0 | 2 | 0 | 100 | |
Stock options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation | $ 0 | $ 27 | $ 0 | $ 77 | |
[1] | Includes service-based and performance-based restricted stock units. |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted | 0.1 | 0.5 | 0.7 |
Maximum [Member] | Performance-based restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance-based shares available for vesting | 0.2 | 0.4 | 0.5 |
Segments (Schedule of net sales
Segments (Schedule of net sales, adjusted EBITDA and certain other measures by reportable segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 964,249 | $ 990,264 | $ 2,736,029 | $ 2,822,927 |
Gross profit | 254,767 | 241,303 | 716,666 | 679,986 |
Depreciation & amortization | 18,535 | 16,626 | 52,959 | 48,560 |
Operating segments [Member] | Geographic divisions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 964,249 | 990,264 | 2,736,029 | 2,822,927 |
Gross profit | 254,767 | 241,303 | 716,666 | 679,986 |
Depreciation & amortization | 17,974 | 16,106 | 51,121 | 47,079 |
Adjusted EBITDA | 96,752 | 92,698 | 260,537 | 252,873 |
Other reconciling items [Member] | Other reconciling items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Depreciation & amortization | 561 | 520 | 1,838 | 1,481 |
Adjusted EBITDA | $ (22,094) | $ (18,330) | $ (58,150) | $ (52,496) |
Segments (Reconciliation of adj
Segments (Reconciliation of adjusted EBITDA to consolidated financial statements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Income before income taxes | $ 46,787 | $ 46,818 | $ 119,326 | $ 119,451 | |
Interest expense | 5,773 | 5,926 | 17,385 | 17,916 | |
Interest income | (1,047) | (117) | (2,832) | (117) | |
Depreciation and amortization | 18,535 | 16,626 | 52,959 | 48,560 | |
Merger and integration costs | 1,295 | 1,459 | 5,467 | 3,627 | |
Non-cash stock compensation expense | 3,014 | 3,310 | 9,177 | 8,226 | |
Impairment of assets | 115 | 0 | 644 | 0 | |
Acquisition costs | 229 | 0 | 827 | 267 | |
Sale of Coleman Floor | [1] | (43) | 0 | (344) | 0 |
Other items | [2] | 0 | 346 | (222) | 2,447 |
Other reconciling items [Member] | Other reconciling items [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Depreciation and amortization | 561 | 520 | 1,838 | 1,481 | |
Adjusted EBITDA | 22,094 | 18,330 | 58,150 | 52,496 | |
Operating segments [Member] | Geographic divisions [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Depreciation and amortization | 17,974 | 16,106 | 51,121 | 47,079 | |
Adjusted EBITDA | $ (96,752) | $ (92,698) | $ (260,537) | $ (252,873) | |
[1] | Represents the effect of certain customary post-closing adjustments related to the November 1, 2018 disposition of the Company’s Coleman Floor business (“Coleman Floor”). | ||||
[2] | For the nine months ended September 30, 2019 , represents income from a recovery made by the Company related to a fire at one of the Company’s facilities during 2015 and the effect of the settlement of pending litigation for an amount less than what was previously accrued. See Note 9 for further details on the settlement of pending litigation. For the three and nine months ended September 30, 2018 , represents costs incurred in connection with the departure of the Company’s former chief executive officer and the search for and appointment of his permanent replacement. |
Segments (Narrative) (Details)
Segments (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 1 |
Operating segments [Member] | Geographic divisions [Member] | |
Segment Reporting Information [Line Items] | |
Prior period adjustment | $ | $ 4.3 |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||
Income attributable to common stockholders | $ 33,597 | $ 35,699 | $ 20,350 | $ 35,858 | $ 40,405 | $ 15,359 | $ 89,646 | $ 91,622 | |
Weighted average common shares outstanding, basic (in shares) | 66,685 | 67,329 | 66,681 | 67,246 | |||||
Weighted average common shares outstanding, diluted (in shares) | 67,361 | 67,896 | 67,240 | 67,743 | |||||
Basic income per common share (in dollars per share) | $ 0.50 | $ 0.53 | $ 1.34 | $ 1.36 | |||||
Diluted income per common share (in dollars per share) | $ 0.50 | $ 0.53 | $ 1.33 | $ 1.35 | |||||
Restricted stock units [Member] | |||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||
Stock based payment arrangements (in shares) | [1] | 544 | 399 | 450 | 321 | ||||
Stock options [Member] | |||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||
Stock based payment arrangements (in shares) | 132 | 166 | 109 | 155 | |||||
Restricted stock [Member] | |||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||
Stock based payment arrangements (in shares) | 0 | 2 | 0 | 21 | |||||
[1] | Includes service-based and contingently issuable performance-based restricted stock units. |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of anti-dilutive securities) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restricted stock units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | 0 |
Stock options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | 0 |
Restricted stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | 0 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - Performance-based restricted stock units [Member] | Sep. 30, 2019shares |
Minimum [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Performance-based restricted stock units that could be issued upon vesting | 0 |
Maximum [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Performance-based restricted stock units that could be issued upon vesting | 900,000 |