Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Installed Building Products, Inc. | |
Entity Central Index Key | 0001580905 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | IBP | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 30,011,640 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 88,146 | $ 90,442 |
Investments | 10,026 | 10,060 |
Accounts receivable (less allowance for doubtful accounts of $5,442 and $5,085 at March 31, 2019 and December 31, 2018, respectively | 216,997 | 214,121 |
Inventories | 60,654 | 61,162 |
Other current assets | 32,473 | 35,760 |
Total current assets | 408,296 | 411,545 |
Property and equipment, net | 91,391 | 90,117 |
Operating lease right-of-use assets | 45,280 | |
Non-current assets | ||
Goodwill | 174,959 | 173,049 |
Intangibles, net | 147,409 | 149,790 |
Other non-current assets | 10,374 | 10,157 |
Total assets | 877,709 | 834,658 |
Current liabilities | ||
Current maturities of long-term debt | 23,925 | 22,642 |
Current maturities of operating lease obligations | 14,241 | |
Current maturities of finance lease obligations | 4,328 | 4,806 |
Accounts payable | 88,872 | 96,949 |
Accrued compensation | 22,371 | 27,923 |
Other current liabilities | 28,680 | 29,366 |
Total current liabilities | 182,417 | 181,686 |
Long-term debt | 430,460 | 432,182 |
Operating lease obligations | 30,682 | |
Long-term lease obligations | 3,974 | 3,824 |
Deferred income taxes | 5,774 | 6,695 |
Other long-term liabilities | 33,801 | 27,773 |
Total liabilities | 687,108 | 652,160 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | ||
Common stock; $0.01 par value: 100,000,000 authorized, 32,780,967 and 32,723,972 issued and 29,971,963 and 29,915,611 shares outstanding at March 31, 2019 and December 31, 2018, respectively | 328 | 327 |
Additional paid in capital | 183,836 | 181,815 |
Retained earnings | 114,046 | 105,212 |
Treasury stock; at cost: 2,809,004 and 2,808,361 shares at March 31, 2019 and December 31, 2018, respectively | (104,429) | (104,425) |
Accumulated other comprehensive loss | (3,180) | (431) |
Total stockholders' equity | 190,601 | 182,498 |
Total liabilities and stockholders' equity | $ 877,709 | $ 834,658 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5,442 | $ 5,085 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 32,780,967 | 32,723,972 |
Common stock, shares outstanding | 29,971,963 | 29,915,611 |
Treasury Stock | 2,809,004 | 2,808,361 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net revenue | $ 342,135 | $ 301,728 |
Cost of sales | 252,697 | 221,752 |
Gross profit | 89,438 | 79,976 |
Operating expenses | ||
Selling | 17,130 | 15,846 |
Administrative | 48,431 | 44,203 |
Amortization | 5,888 | 7,128 |
Operating income | 17,989 | 12,799 |
Other expense | ||
Interest expense, net | 5,676 | 4,040 |
Other | 125 | 122 |
Income before income taxes | 12,188 | 8,637 |
Income tax provision | 3,354 | 2,243 |
Net income | 8,834 | 6,394 |
Other comprehensive (loss) income, net of tax: | ||
Unrealized (loss) gain on cash flow hedge, net of tax benefit (provision) of $921 and ($386) for the three months ended March 31, 2019 and 2018, respectively | (2,749) | 1,160 |
Comprehensive income | $ 6,085 | $ 7,554 |
Basic and diluted net income per share | $ 0.30 | $ 0.20 |
Weighted average shares outstanding: | ||
Basic | 29,679,884 | 31,548,745 |
Diluted | 29,806,653 | 31,772,581 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Unrealized gain (loss) on cash flow hedge, tax (provision) benefit | $ 921 | $ (386) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
BALANCE at Dec. 31, 2017 | $ 210,528 | $ 325 | $ 174,043 | $ 48,434 | $ 507 | |
BALANCE, Shares at Dec. 31, 2017 | 32,524,934 | |||||
BALANCE, Treasury Stock, Value at Dec. 31, 2017 | $ (12,781) | |||||
BALANCE, Treasury Stock, Shares at Dec. 31, 2017 | (662,788) | |||||
Net income | 6,394 | 6,394 | ||||
Cumulative effect of accounting changes, net of tax | 2,888 | 2,776 | 112 | |||
Issuance of common stock awards to employees, value | $ 1 | (1) | ||||
Issuance of common stock awards to employees, shares | 70,390 | |||||
Surrender of common stock awards by employees, value | (56) | |||||
Surrender of common stock awards by employees, shares | (1,212) | |||||
Share-based compensation expense | 2,307 | 2,307 | ||||
Common stock repurchase, value | (24,640) | |||||
Common stock repurchase, shares | (412,717) | |||||
Other comprehensive income (loss), net of tax | 1,160 | 1,160 | ||||
BALANCE at Mar. 31, 2018 | 198,581 | $ 326 | 176,349 | 57,604 | 1,779 | |
BALANCE, Shares at Mar. 31, 2018 | 32,595,324 | |||||
BALANCE, Treasury Stock, Value at Mar. 31, 2018 | $ (37,477) | |||||
BALANCE, Treasury Stock, Shares at Mar. 31, 2018 | (1,076,717) | |||||
BALANCE at Dec. 31, 2018 | $ 182,498 | $ 327 | 181,815 | 105,212 | (431) | |
BALANCE, Shares at Dec. 31, 2018 | 32,723,972 | 32,723,972 | ||||
BALANCE, Treasury Stock, Value at Dec. 31, 2018 | $ (104,425) | $ (104,425) | ||||
BALANCE, Treasury Stock, Shares at Dec. 31, 2018 | (2,808,361) | (2,808,361) | ||||
Net income | $ 8,834 | 8,834 | ||||
Issuance of common stock awards to employees, value | $ 1 | (1) | ||||
Issuance of common stock awards to employees, shares | 56,995 | |||||
Surrender of common stock awards by employees, value | (4) | $ (4) | ||||
Surrender of common stock awards by employees, shares | (643) | |||||
Share-based compensation expense | 2,022 | 2,022 | ||||
Other comprehensive income (loss), net of tax | (2,749) | (2,749) | ||||
BALANCE at Mar. 31, 2019 | $ 190,601 | $ 328 | $ 183,836 | $ 114,046 | $ (3,180) | |
BALANCE, Shares at Mar. 31, 2019 | 32,780,967 | 32,780,967 | ||||
BALANCE, Treasury Stock, Value at Mar. 31, 2019 | $ (104,429) | $ (104,429) | ||||
BALANCE, Treasury Stock, Shares at Mar. 31, 2019 | (2,809,004) | (2,809,004) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ 8,834 | $ 6,394 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization of property and equipment | 9,111 | 7,978 |
Amortization of operating lease right-of-use assets | 3,798 | |
Amortization of intangibles | 5,888 | 7,128 |
Amortization of deferred financing costs and debt discount | 282 | 302 |
Provision for doubtful accounts | 828 | 896 |
Gain on sale of property and equipment | (19) | (185) |
Noncash stock compensation | 2,022 | 2,240 |
Changes in assets and liabilities, excluding effects of acquisitions | ||
Accounts receivable | (3,704) | (7,058) |
Inventories | 799 | (2,420) |
Other assets | (1,048) | (4,139) |
Accounts payable | (7,807) | (57) |
Income taxes receivable / payable | 2,746 | 1,303 |
Other liabilities | (5,841) | (6,297) |
Net cash provided by operating activities | 15,889 | 6,085 |
Cash flows from investing activities | ||
Purchases of investments | (7,482) | (17,782) |
Maturities of short term investments | 7,530 | 19,000 |
Purchases of property and equipment | (8,658) | (10,237) |
Acquisitions of businesses | (5,125) | (11,505) |
Proceeds from sale of property and equipment | 196 | 283 |
Other | (420) | (1,050) |
Net cash used in investing activities | (13,959) | (21,291) |
Cash flows from financing activities | ||
Payments on term loan (Note 6) | (1,000) | (750) |
Proceeds from vehicle and equipment notes payable | 4,908 | 4,510 |
Debt issuance costs | (1) | |
Principal payments on long-term debt | (3,946) | (3,092) |
Principal payments on finance lease obligations | (1,366) | (1,629) |
Acquisition-related obligations | (2,818) | (1,740) |
Repurchase of common stock | (24,640) | |
Surrender of common stock awards by employees | (4) | (56) |
Net cash used in financing activities | (4,226) | (27,398) |
Net change in cash and cash equivalents | (2,296) | (42,604) |
Cash and cash equivalents at beginning of period | 90,442 | 62,510 |
Cash and cash equivalents at end of period | 88,146 | 19,906 |
Supplemental disclosures of cash flow information Net cash paid during the year for: | ||
Interest | 5,816 | 3,914 |
Income taxes, net of refunds | 737 | 899 |
Supplemental disclosure of noncash activities | ||
Right-of-use assets obtained in exchange for operating lease obligations | 3,851 | |
Property and equipment obtained in exchange for finance lease obligations | 1,108 | 312 |
Seller obligations in connection with acquisition of businesses | 1,380 | 3,093 |
Unpaid purchases of property and equipment included in accounts payable | $ 1,503 | $ 1,485 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | NOTE 1 — ORGANIZATION Installed Building Products (“IBP”), a Delaware corporation formed on October 28, 2011, and its wholly-owned subsidiaries (collectively referred to as the “Company,” and “we,” “us” and “our”) primarily install insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company operates in over 175 locations and its corporate office is located in Columbus, Ohio. We have one operating segment and a single reportable segment. We offer our portfolio of services for new and existing single-family and multi-family residential and commercial building projects from our national network of branch locations. Each of our branches has the capacity to serve all of our end markets. See Note 3, Revenue Recognition, for information on our revenues by product and end market. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include all of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The information furnished in the Condensed Consolidated Financial Statements includes normal recurring adjustments and reflects all adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations and statements of financial position for the interim periods presented. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) have been omitted pursuant to such rules and regulations. We believe that the disclosures are adequate to prevent the information presented from being misleading when read in conjunction with our audited consolidated financial statements and the notes thereto included in Part II, Item 8, Financial Statements and Supplementary Data, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the “2018 Form 10-K”), as filed with the SEC on February 28, 2019. The December 31, 2018 Condensed Consolidated Balance Sheet data herein was derived from the audited consolidated financial statements but does not include all disclosures required by U.S. GAAP. Our interim operating results for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected in future operating quarters. See Item 1A, Risk Factors, in our 2018 Form 10-K for additional information regarding risk factors that may impact our results. Note 2 to the audited consolidated financial statements in our 2018 Form 10-K describes the significant accounting policies and estimates used in preparation of the audited consolidated financial statements. There have been no changes to our significant accounting policies during the three months ended March 31, 2019, except for the manner in which we account for leases as described in Note 7, Leases. Recently Adopted Accounting Pronouncements Standard Adoption ASU 2016-02, Leases (Topic 842) This Accounting Standards Update (“ASU”) requires substantially all leases, with the exception of leases with a term of one year or less, to be recorded on the balance sheet as a lease liability measured as the present value of the future lease payments with a corresponding right-of-use asset. This ASU also requires disclosures designed to give financial statement users information on the amount, timing and uncertainty of cash flows. See Note 7, Leases, for further information regarding our lease accounting policies. Recently Issued Accounting Pronouncements Not Yet Adopted We are currently evaluating the impact of certain ASU’s on our Condensed Consolidated Financial Statements or Notes to Consolidated Financial Statements, which are described below: Standard Description Effective Date Effect on the financial statements ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) This pronouncement amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. In addition, these amendments require the measurement of all expected credit losses for financial assets, including trade accounts receivable, held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Annual periods beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. We are currently evaluating whether this ASU will have a material impact on our consolidated financial statements. ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment To address concerns over the cost and complexity of the two-step goodwill impairment test, this pronouncement removes the second step of the goodwill impairment test. Going forward, an entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. We anticipate the adoption of this ASU will not have a material impact on our disclosures. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement This pronouncement amends Topic 820 to eliminate, add and modify certain disclosure requirements for fair value measurements. Annual periods beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. We are currently evaluating the provisions of this ASU and the impact it will have on our disclosures. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | NOTE 3 REVENUE RECOGNITION Our revenues are derived primarily through contracts with customers whereby we install insulation and other complementary building products and are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We recognize revenue using the percentage-of-completion method of accounting, utilizing a cost-to-cost input approach as we believe this represents the best measure of when control of goods and services are transferred to the customer. An insignificant portion of our sales, primarily retail sales, is accounted for on a point-in-time basis when the sale occurs, adjusted accordingly for any return provisions. We do offer assurance-type warranties on certain of our installed products and services that do not represent a separate performance obligation and, as such, do not impact the timing or extent of revenue recognition. When the percentage-of-completion method is used, we estimate the costs to complete individual contracts and record as revenue that portion of the total contract price that is considered complete based on the relationship of costs incurred to date to total anticipated costs (the cost-to-cost approach). Under the cost-to-cost approach, the use of estimated costs to complete each contract is a significant variable in the process of determining recognized revenue, requires judgment and can change throughout the duration of a contract due to contract modifications and other factors impacting job completion. The costs of earned revenue include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools and repairs. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Our long-term contracts can be subject to modification to account for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Most of our contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Sales terms typically do not exceed 30 days for short-term contracts and typically do not exceed 60 days for long-term contracts with customers. All contracts are billed either contractually or as work is performed. Billing on our long-term contracts occurs primarily on a monthly basis throughout the contract period whereby we submit invoices for customer payment based on actual or estimated costs incurred during the billing period. On certain of our long-term contracts the customer may withhold payment on an invoice equal to a percentage of the invoice amount, which will be subsequently paid after satisfactory completion of each installation project. This amount is referred to as retainage and is common practice in the construction industry, as it allows for customers to ensure the quality of the service performed prior to full payment. Retainage receivables are classified as current or long-term assets based on the expected time to project completion. We disaggregate our revenue from contracts with customers by end market and product, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following tables present our revenues disaggregated by end market and product (in thousands): Three months ended March 31, 2019 2018 Residential new construction $ 261,310 77 % $ 229,642 76 % Repair and remodel 21,521 6 % 20,472 7 % Commercial 59,304 17 % 51,614 17 % Net revenues $ 342,135 100 % $ 301,728 100 % Three months ended March 31, 2019 2018 Insulation $ 221,223 65 % $ 202,275 67 % Waterproofing 22,385 7 % 22,606 7 % Shower doors, shelving and mirrors 23,917 7 % 20,260 7 % Garage doors 21,672 6 % 15,466 5 % Rain gutters 11,199 3 % 8,658 3 % Window blinds 9,384 3 % 5,306 2 % Other building products 32,355 9 % 27,157 9 % Net revenues $ 342,135 100 % $ 301,728 100 % Contract Assets and Liabilities Our contract assets consist of unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized, based on costs incurred, exceeds the amount billed to the customer. Our contract assets are recorded in other current assets in our Consolidated Balance Sheets. Our contract liabilities consist of customer deposits and billings in excess of revenue recognized, based on costs incurred and is included in other current liabilities in our Consolidated Balance Sheets. Contract assets and liabilities related to our uncompleted contracts and customer deposits were as follows (in thousands): March 31, December 31, 2019 2018 Contract assets $ 19,565 $ 15,092 Contract liabilities (7,792 ) (7,468 ) Uncompleted contracts were as follows (in thousands): March 31, December 31, 2019 2018 Costs incurred on uncompleted contracts $ 101,024 $ 114,826 Estimated earnings 52,670 58,952 Total 153,694 173,778 Less: Billings to date 139,100 163,112 Net under (over) billings $ 14,594 $ 10,666 Net under (over) billings were as follows (in thousands): March 31, December 31, 2019 2018 Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) $ 19,565 $ 15,092 Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) (4,971 ) (4,426 ) Net under (over) billings $ 14,594 $ 10,666 The difference between contract assets and contract liabilities as of March 31, 2019 compared to December 31, 2018 is primarily the result of timing differences between our performance of obligations under contracts and customer payments. During the three months ended March 31, 2019, we recognized $6.3 million of revenue that was included in the contract liability balance at December 31, 2018. We did not recognize any impairment losses on our receivables and contract assets during the three months ended March 31, 2019 or 2018. Remaining performance obligations represent the transaction price of contracts for which work has not been performed and excludes unexercised contract options and potential modifications. As of March 31, 2019, the aggregate amount of the transaction price allocated to remaining uncompleted contracts was $89.5 million. We expect to satisfy remaining performance obligations and recognize revenue on substantially all of these uncompleted contracts over the next 18 months. Practical Expedients and Exemptions We generally expense sales commissions and other incremental costs of obtaining a contract when incurred because the amortization period is usually one year or less. Sales commissions are recorded within selling expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | NOTE 4 — INVESTMENTS Cash and cash equivalents includes investments in money market funds that are valued based on the net asset value of the funds. The investments in these funds were $71.2 million and $69.8 million as of March 31, 2019 and December 31, 2018, respectively. All other investments are classified as held-to-maturity and consist of highly liquid instruments, primarily including corporate bonds and commercial paper. As of March 31, 2019 and December 31, 2018, the amortized cost of these investments equaled the net carrying value, which was $10.0 million and $10.1 million, respectively. All held-to-maturity securities as of March 31, 2019 mature in one year or less. See Note 8, Fair Value Measurements, for additional information. |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | NOTE 5 — GOODWILL AND INTANGIBLES Goodwill The change in carrying amount of goodwill was as follows (in thousands): Goodwill (Gross) Accumulated Impairment Losses Goodwill (Net) January 1, 2019 $ 243,053 $ (70,004 ) $ 173,049 Business Combinations 1,882 — 1,882 Other 28 — 28 March 31, 2019 $ 244,963 $ (70,004 ) $ 174,959 Other changes included in the above table represent minor adjustments for the allocation of certain acquisitions still under measurement and one immaterial acquisition completed during the three months ended March 31, 2019. We test goodwill for impairment annually during the fourth quarter of our fiscal year or earlier if there is an impairment indicator. No impairment was recognized during either of the three month periods ended March 31, 2019 or 2018. Accumulated impairment losses included within the above table were incurred over multiple periods, with the latest impairment charge being recorded during the year ended December 31, 2010. Intangibles, net The following table provides the gross carrying amount, accumulated amortization and net book value for each major class of intangibles (in thousands): As of March 31, 2019 As of December 31, 2018 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Amortized intangibles: Customer relationships $ 150,735 $ 56,530 $ 94,205 $ 148,635 $ 52,514 $ 96,121 Covenants not-to-compete 15,090 8,325 6,765 14,682 7,572 7,110 Trademarks and trade names 65,432 19,319 46,113 64,432 18,256 46,176 Backlog 14,060 13,734 326 14,060 13,677 383 $ 245,317 $ 97,908 $ 147,409 $ 241,809 $ 92,019 $ 149,790 The gross carrying amount of intangibles increased approximately $ 3.5 Remainder of 2019 17,719 2020 22,744 2021 21,415 2022 20,494 2023 17,583 Thereafter 47,454 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 6 LONG-TERM DEBT Long-term debt consisted of the following (in thousands): As of March 31, As of December 31, 2019 2018 Term loan, net of unamortized debt issuance costs of $ 4,642 4,834 $ 390,108 $ 390,916 Vehicle and equipment notes, maturing through March 2024 2.5 4.8 60,811 60,391 Various notes payable, maturing through March 2025 4 6 3,466 3,517 454,385 454,824 Less: current maturities (23,925 ) (22,642 ) Long-term debt, less current maturities $ 430,460 $ 432,182 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE 7 LEASES On January 1, 2019, we adopted ASC 842, “Leases” which, among other changes, requires us to record liabilities classified as operating leases on our condensed consolidated balance sheets along with a corresponding right-of-use asset. Results for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 840. We elected the package of practical expedients available for expired or existing contracts, which allowed us to carryforward our historical assessments of whether contracts are or contain leases, lease classification tests and treatment of initial direct costs. We also elected to not separate lease components from non-lease components for all fixed payments, and we exclude variable lease payments in the measurement of right-of-use assets and lease obligations. Upon adoption of ASC 842, we recorded a $44.9 million increase in other assets, a $1.4 million decrease to other current assets, a $1.0 million decrease to other current liabilities and a $44.5 million increase to operating lease obligations. The impact primarily related to the change in assigning a right-of-use asset and related lease liability to our operating leases. We did not record any cumulative effect adjustments to opening retained earnings, and adoption of the lease standard had no impact to cash from or used in operating, financing, or investing on our consolidated cash flow statements. We determine if an arrangement is a lease at inception. Most of our operating leases do not provide an implicit rate so we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. We lease various assets in the course of ordinary business as follows: warehouses to store our materials and perform staging activities for certain products we install; various office spaces for selling and administrative activities to support our business; certain manufacturing facilities to produce insulation materials; and certain vehicles and equipment to facilitate our operations, including, but not limited to, trucks, forklifts and office equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet as we recognize lease expense for these leases on a straight-line basis over the lease term. Most lease agreements include one or more renewal options, all of which are at our sole discretion. Future renewal options that have not been executed as of the balance sheet date are excluded from right-of-use assets and related lease liabilities. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Some of our vehicle lease agreements include provisions for residual value guarantees and any expected payment is included in our lease liability. Lease Position as of March 31, 2019 The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheet: (in thousands) Classification As of March 31, Assets Non-Current Operating Operating lease right-of-use assets $ 45,280 Finance Property and equipment, net 9,217 Total lease assets $ 54,497 Liabilities Current Operating Current maturities of operating lease obligations $ 14,241 Financing Current maturities of finance lease obligations 4,328 Non-Current Operating Operating lease obligations 30,682 Financing Finance lease obligations 3,974 Total lease liabilities $ 53,225 Weighted-average remaining lease term Operating leases 4.5 years Finance leases 2.3 years Weighted-average discount rate Operating leases (1) 5.04 % Finance leases 4.57 % (1) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. Lease Costs The table below presents certain information related to the lease costs for finance and operating leases during 2019: (in thousands) Classification Three months ended 31 , 2019 Operating lease cost (1) Administrative $ 4,987 Finance lease cost Amortization of leased assets (2) Cost of sales 1,478 Interest on capital lease obligations Interest expense, net 94 Total lease costs $ 6,559 (1) Includes variable lease costs of $0.5 million and short-term lease costs of $ 0.2 (2) Includes variable lease costs of $0.3 million. Other Information The table below presents supplemental cash flow information related to leases during 2019 (in thousands): Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 4,233 Operating cash flows for finance leases 94 Financing cash flows for finance leases 1,366 Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet (in thousands): As of March 31, 2019 Related Party Other Total Operating Finance Leases Remainder of 2019 $ 774 $ 11,595 $ 12,369 $ 3,947 2020 1,055 12,240 13,295 2,539 2021 910 8,042 8,952 1,596 2022 836 4,615 5,451 663 2023 415 3,047 3,462 284 Thereafter 823 6,007 6,830 16 Total minimum lease payments $ 4,813 $ 45,546 50,359 9,045 Less: Amounts representing executory costs — (255 ) Less: Amounts representing interest (5,436 ) (488 ) Present value of future minimum lease payments 44,923 8,302 Less: Current obligation under leases (14,241 ) (4,328 ) Long-term lease obligations $ 30,682 $ 3,974 Disclosures Related to Periods Prior to Adoption of ASC 842 under ASU 2016-02 Lease amounts presented as of December 31, 2018 and for the three months ended March 31, 2018 are in accordance with accounting guidance in effect prior to adoption of ASC 842, “Leases,” on January 1, 2019. Total assets relating to capital leases were approximately $58.7 million and a total of approximately $32.0 million were fully depreciated as of December 31, 2018. The net book value of assets under capital leases was approximately $9.5 million as of December 31, 2018. Amortization of assets held under capital leases is included within cost of sales on the Consolidated Statements of Operations and Comprehensive Income. 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 were as follows (in thousands): Operating Leases Capital Leases Related Party Other Total Operating 2019 $ 5,207 $ 1,159 $ 14,418 $ 15,577 2020 2,253 1,184 11,293 12,477 2021 1,339 1,058 7,014 8,072 2022 452 972 4,335 5,307 2023 93 51 2,613 2,664 Thereafter — — 4,695 4,695 9,344 $ 4,424 $ 44,368 $ 48,792 Less: Amounts representing executory costs (255 ) Less: Amounts representing interest (459 ) Total obligation under capital leases 8,630 Less: Current portion of capital leases (4,806 ) Long term capital lease obligation $ 3,824 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 8 FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. During the periods presented, there were no transfers between fair value hierarchical levels. Assets Measured at Fair Value on a Nonrecurring Basis Certain assets, specifically other intangible and long-lived assets, are measured at fair value on a nonrecurring basis in periods subsequent to initial recognition. Assets measured at fair value on a nonrecurring basis as of March 31, 2019 and December 31, 2018 are categorized based on the lowest level of significant input to the valuation. The assets are measured at fair value when our impairment assessment indicates a carrying value for each of the assets in excess of the asset’s estimated fair value. Undiscounted cash flows, a Level 3 input, are utilized in determining estimated fair values. During each of the three months ended March 31, 2019 and 2018, we did not record any impairments on these assets required to be measured at fair value on a nonrecurring basis. Estimated Fair Value of Financial Instruments Accounts receivable, accounts payable and accrued liabilities as of March 31, 2019 and December 31, 2018 approximate fair value due to the short-term maturities of these financial instruments. The carrying amounts of our long-term debt, including the Term Loan and ABL Revolver as of March 31, 2019 and December 31, 2018, approximate fair value due to the variable rate nature of the agreements. The carrying amounts of our operating lease right-of-use assets and the obligations associated with our operating and finance leases as well as our vehicle and equipment notes approximate fair value as of March 31, 2019 and December 31, 2018. All debt classifications represent Level 2 fair value measurements. Derivative financial instruments are measured at fair value based on observable market information and appropriate valuation methods. Contingent consideration liabilities arise from future earnout payments to the sellers associated with certain acquisitions and are based on predetermined calculations of certain future results. These future payments are estimated by considering various factors, including business risk and projections. The contingent consideration liabilities are measured at fair value by discounting estimated future payments to their net present value using the appropriate weighted average cost of capital (WACC). The fair values of financial assets and liabilities that are recorded at fair value in the Condensed Consolidated Balance Sheets and not described above were as follows (in thousands): As of March 31, 2019 As of December 31, 2018 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Financial assets: Cash equivalents $ 71,240 $ 71,240 $ — $ — $ 69,807 $ 69,807 $ — $ — Derivative financial instruments 805 — 805 — 1,765 — 1,765 — Total financial assets $ 72,045 $ 71,240 $ 805 $ — $ 71,572 $ 69,807 $ 1,765 $ — Financial liabilities: Derivative financial instruments $ 4,984 $ — $ 4,984 $ — $ 2,275 $ — $ 2,275 $ — Contingent consideration 4,977 — — 4,977 5,098 — — 5,098 Total financial liabilities $ 9,961 $ — $ 4,984 $ 4,977 $ 7,373 $ — $ 2,275 $ 5,098 The change in fair value of the contingent consideration (a Level 3 input) was as follows (in thousands): Contingent consideration liability January 1, 2019 $ 5,098 Preliminary purchase price 1,525 Fair value adjustments (245 ) Accretion in value 125 Amounts paid to sellers (1,526 ) Contingent consideration liability March 31, 2019 $ 4,977 The accretion in value of contingent consideration liabilities is included within administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income. The carrying values and associated fair values of financial assets and liabilities that are not recorded at fair value in the Condensed Consolidated Balance Sheets and not described above include investments which represent a Level 2 fair value measurement and are as follows (in thousands): As of March 31, 2019 As of December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Financial assets: Investments $ 10,026 $ 10,026 $ 10,060 $ 10,053 See Note 4, Investments, for more information on cash equivalents and investments included in the table above. Also see Note 9, Derivatives and Hedging Activities, for more information on derivative financial instruments. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | NOTE 9 DERIVATIVES AND HEDGING ACTIVITIES Cash Flow Hedges of Interest Rate Risk Our purpose for using interest rate derivatives is to add stability to interest expense and to manage our exposure to interest rate movements. During the first three months of 2019, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. To accomplish these objectives, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. As of March 31, 2019, we had two interest rate swaps, each with an associated floor, with a total beginning notional of $200.0 million, one 95.3 May 31, 2022 April 15, 2025 May 31, 2022 The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in other comprehensive income, net of tax on the Condensed Consolidated Statements of Operations and Comprehensive Income and in accumulated other comprehensive income on the Condensed Consolidated Balance Sheets and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. We had no such changes during the three months ended March 31, 2019 or 2018. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense, net as interest payments are made on our variable-rate debt. Over the next twelve months, we estimate that an additional $0.1 million will be reclassified as an increase to interest expense, net. Additionally, we do not use derivatives for trading or speculative purposes and we currently do not have any derivatives that are not designated as hedges. As of March 31, 2019, the Company has not posted any collateral related to these agreements. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Stockholders' Equity | NOTE 10 STOCKHOLDERS’ EQUITY As of March 31, 2019, we had $3.2 million in accumulated other comprehensive loss on our Condensed Consolidated Balance Sheet, which represents the effective portion of the unrealized loss on our derivative instruments. For additional information, see Note 9, Derivatives and Hedging Activities. During the three months ended March 31, 2018, we repurchased 413 thousand shares of our outstanding common stock for an aggregate purchase price of $24.6 million or $59.70 average price per share as part of our stock repurchase plan in effect through February 28, 2020, unless extended by our board of directors. We did not repurchase any shares during the three months ended March 31, 2019. The effect of these treasury shares reducing the number of common shares outstanding is reflected in our earnings per share calculation. |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Employee Benefits | NOTE 11 EMPLOYEE BENEFITS Healthcare Our healthcare benefit expense (net of employee contributions) for all plans was approximately $4.8 million and $4.4 million for the three months ended March 31, 2019 and 2018, respectively. An accrual for estimated healthcare claims incurred but not reported (“IBNR”) is included within accrued compensation on the Condensed Consolidated Balance Sheets and was $2.7 million and $2.3 million as of March 31, 2019 and December 31, 2018, respectively. Workers’ Compensation Workers’ compensation expense totaled $4.2 million and $3.8 million for the three months ended March 31, 2019 and 2018, respectively. Workers’ compensation known claims and IBNR reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands): March 31, 2019 December 31, 2018 Included in other current liabilities $ 5,201 $ 5,795 Included in other long-term liabilities 11,138 9,447 $ 16,339 $ 15,242 We also had an insurance receivable for claims that exceeded the stop loss limit included on the Condensed Consolidated Balance Sheets. This receivable offsets an equal liability included within the reserve amounts noted above and was as follows (in thousands): March 31, 2019 December 31, 2018 Included in other non-current assets $ 1,905 $ 1,888 Retirement Plans We participate in multiple 401(k) plans, whereby we provide a matching contribution of wages deferred by employees and can also make discretionary contributions to each plan. Certain plans allow for discretionary employer contributions only. These plans cover substantially all our eligible employees. We recognized 401(k) plan expenses of $0.6 million and $0.4 million during the three months ended March 31, 2019 and 2018, respectively. These expenses are included in administrative expenses on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. Share-Based Compensation Common Stock Awards We periodically grant shares of our common stock to our board of directors and our employees. We did not grant any such shares to our board of directors during the three months ended March 31, 2019 or 2018, however we recorded $0.1 million of compensation expense during the three months ended March 31, 2019 related to prior grants to our board of directors. During the three months ended March 31, 2019 and 2018, we granted approximately 11 thousand and approximately eight thousand shares of our common stock, respectively, to employees and recorded $1.1 million and $0.9 million, respectively, of compensation expense associated with non-performance-based awards issued to employees. During the three months ended March 31, 2019 and 2018, our employees surrendered approximately two hundred and one thousand shares of our common stock, respectively, to satisfy tax withholding obligations arising in connection with the vesting of common stock awards issued under our 2014 Omnibus Incentive Plan. We recognized excess tax benefits of $0.1 million within the income tax provision in the Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2018. As of March 31, 2019, we had $4.5 million of unrecognized compensation expense related to these nonvested common stock awards issued to the board of directors and our employees. This expense is subject to future adjustments for forfeitures and is expected to be recognized on a straight-line basis over the remaining weighted-average period of 1.8 years. Shares forfeited are returned as treasury shares and available for future issuances. See the table below for changes in shares and related weighted average fair market value per share. Employees – Performance-Based Stock Awards During the three months ended March 31, 2019, we issued under our 2014 Omnibus Incentive Plan approximately 46 thousand shares of our common stock to certain officers, which vest in two equal installments on each of April 20, 2020 and April 20, 2021. In addition, during the three months ended March 31, 2019, we established, and our Board of Directors approved, performance-based targets in connection with common stock awards to be issued to certain officers in 2020 contingent upon achievement of these targets. Share-based compensation expense associated with these performance-based awards and prior performance-based grants was $0.7 million and $0.4 million for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, we had $5.8 million of unrecognized compensation expense related to nonvested performance-based common stock awards. This expense is subject to future adjustments for forfeitures and is expected to be recognized over the remaining weighted-average period of 2.1 years using the graded-vesting method. See the table below for changes in shares and related weighted average fair market value per share. Employees – Performance-Based Restricted Stock Units During 2018, we established, and our board of directors approved, performance-based restricted stock units in connection with common stock awards to be issued to certain employees in 2019 based upon achievement of a performance target. These units will be accounted for as equity-based awards that will be settled with a fixed number of common shares. We recorded $0.1 million and $0.9 million in compensation expense associated with these performance-based units during the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, we had $34 thousand of unrecognized compensation expense related to nonvested performance-based common stock units. This expense is subject to future adjustments for forfeitures and is expected to be recognized on a straight-line basis over the remaining weighted-average period of 0.1 years. See the table below for changes in shares and related weighted average fair market value per share. Share-Based Compensation Summary Amounts and changes for each category of equity-based award for employees were as follows: Common Stock Awards Performance-Based Stock Awards Performance-Based Restricted Stock Units Awards Weighted Average Fair Market Value Per Share Awards Weighted Average Fair Market Value Per Share Units Weighted Average Fair Market Value Per Share Nonvested awards/units at December 31, 2018 173,189 $ 47.40 115,698 $ 52.25 13,248 $ 56.05 Granted 10,800 45.65 82,692 45.65 — — Vested (564 ) 54.98 — — — — Forfeited/Cancelled (445 ) 56.05 (6,697 ) 65.60 (440 ) 56.05 Nonvested awards/units at March 31, 2019 182,980 $ 47.25 191,693 $ 48.93 12,808 $ 56.05 We recorded the following stock compensation expense by income statement category (in thousands): Three months ended March 31, 2019 2018 Cost of sales $ 78 $ 475 Selling 44 283 Administrative 1,816 1,482 $ 1,938 $ 2,240 Administrative stock compensation expense includes all stock compensation earned by our administrative personnel, while cost of sales and selling stock compensation represents all stock compensation earned by our installation and sales employees, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 INCOME TAXES Our provision for income taxes as a percentage of pretax earnings is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items. During the three months ended March 31, 2019, our effective tax rate was 27.5%. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 13 RELATED PARTY TRANSACTIONS We sell installation services to other companies related to us through common or affiliated ownership and/or board of directors and/or management relationships. We also purchase services and materials and pay rent to companies with common or affiliated ownership. We lease our headquarters and certain other facilities from related parties. See Note 7, Leases, for future minimum lease payments to be paid to these related parties. The amount of sales to related parties as well as the purchases from and rent expense paid to related parties were as follows (in thousands): Three months ended March 31, 2019 2018 Sales $ 2,661 $ 2,893 Purchases 388 363 Rent 260 281 As of March 31, 2019 and December 31, 2018, we had related party balances of approximately $2.0 million and $2.3 million, respectively, included in accounts receivable on our Condensed Consolidated Balance Sheets. These balances primarily represent trade accounts receivable arising during the normal course of business with various related parties. M/I Homes, Inc., a customer whose Chairman, President and Chief Executive Officer is a member of our board of directors, accounted for $1.2 million of these balances as of both March 31, 2019 and December 31, 2018, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 14 COMMITMENTS AND CONTINGENCIES Accrued General Liability and Auto Insurance Accrued general liability and auto insurance reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands): March 31, December 31, 2019 2018 Included in other current liabilities $ 1,914 $ 1,848 Included in other long-term liabilities 9,803 6,608 $ 11,717 $ 8,456 We also had insurance receivables and an indemnification asset included on the Condensed Consolidated Balance Sheets that, in aggregate, offset an equal liability included within the reserve amounts noted above. The amounts were as follows (in thousands): March 31, December 31, 2019 2018 Insurance receivable and indemnification asset for claims under a $ 2,484 $ 2,484 Insurance receivable for claims that exceeded the stop loss limit 1,613 53 Total insurance receivables included in other non-current assets $ 4,097 $ 2,537 Leases See Note 7, Leases, for further information regarding our lease commitments. Other Commitments and Contingencies From time to time, various claims and litigation are asserted or commenced against us principally arising from contractual matters and personnel and employment 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. As litigation is subject to inherent uncertainties, we cannot be certain that we will prevail in these matters. However, we do not believe that the ultimate outcome of any pending matters will have a material adverse effect on our consolidated financial position, results of operations or cash flows. During the year ended December 31, 2018, we entered into an agreement with one of our suppliers to purchase a portion of the insulation materials we utilize across our business. This agreement is effective January 1, 2019 through December 31, 2021 with a purchase obligation of $16.4 million for 2019, $21.4 million for 2020 and $15.0 million for 2021. For the three months ended March 31, 2019, we have satisfied $1.8 million of our purchase obligation under this agreement. Additionally, we entered into an agreement with a chemical supplier with a purchase obligation of $0.6 million in 2019. Actual purchases made under this agreement for the three months ended March 31, 2019 was $0.2 million. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 15 BUSINESS COMBINATIONS As part of our ongoing strategy to expand geographically and increase market share in certain markets, we completed one one 100 The largest of these acquisitions were 1st State Insulation, LLC (“1st State Insulation”) in March 2019 and Custom Overhead Door, LLC dba Custom Door & Gate (collectively, “CDG”) in March 2018. Net Income, as noted below, includes amortization, taxes and interest allocations when appropriate. Below is a summary of each significant acquisition by year, including revenue and net income (loss) since date of acquisition, shown for the year of acquisition (in thousands): Total Three months ended Acquisition Cash Seller Purchase March 31, 2019 2019 Acquisitions Date Type Paid Obligations Price Revenue Net Income 1st State Insulation 3/18/2019 Asset $ 5,125 $ 1,380 $ 6,505 $ 488 $ 23 Three months ended Acquisition Seller Total Purchase March 31, 2018 2018 Acquisitions Date Type Cash Paid Obligations Price Revenue Net (Loss) Income CDG 3/19/2018 Asset $ 9,440 $ 1,973 $ 11,413 $ 400 $ (15 ) Other 1/15/2018 Asset 2,065 953 3,018 1,271 66 Total $ 11,505 $ 2,926 $ 14,431 $ 1,671 $ 51 Acquisition-related costs recorded within administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income amounted to $0.6 million and $0.5 million for the three months ended March 31, 2019 and 2018, respectively. The goodwill recognized in conjunction with these business combinations represents the excess cost of the acquired entity over the net amount assigned to assets acquired and liabilities assumed. We expect to deduct approximately $2.0 million of goodwill for tax purposes as a result of 2019 acquisitions. Purchase Price Allocations The estimated fair values of the assets acquired and liabilities assumed for the acquisitions, as well as total purchase prices and cash paid, approximated the following (in thousands): As of March 31, 2019 As of March 31, 2018 1st State CDG Other Total Estimated fair values: Accounts receivable $ — $ 1,731 $ — $ 1,731 Inventories 291 514 75 589 Other current assets — 28 12 40 Property and equipment 989 933 517 1,450 Intangibles 3,382 3,711 1,675 5,386 Goodwill 1,882 4,898 764 5,662 Other non-current assets — 36 — 36 Accounts payable and other current liabilities (39 ) (438 ) (25 ) (463 ) Fair value of assets acquired and purchase price 6,505 11,413 3,018 14,431 Less seller obligations 1,380 1,973 953 2,926 Cash paid $ 5,125 $ 9,440 $ 2,065 $ 11,505 Contingent consideration is included as “seller obligations” in the above table or within “fair value of assets acquired” if subsequently paid during the period presented. These contingent payments consist primarily of earnouts based on performance that are recorded at fair value at the time of acquisition, and/or non-complete agreements and amounts based on working capital calculations. When these payments are expected to be made over one year from the acquisition date, the contingent consideration is discounted to net present value using our weighted average cost of capital (WACC), when appropriate. Further adjustments to the allocation for each acquisition still under its measurement period are expected as third-party and internal valuations are finalized, certain tax aspects of the transaction are completed and customary post-closing reviews are concluded during the measurement period attributable to each individual business combination. As a result, insignificant adjustments to the fair value of assets acquired, and in some cases total purchase price, have been made to certain business combinations since the date of acquisition and future adjustments may be made through the end of each measurement period. Goodwill and intangibles per the above table do not agree to the total gross increases of these assets as shown in Note 5, Goodwill and Intangibles, during each of the three months ended March 31, 2019 and 2018 due to minor adjustments to goodwill for the allocation of certain acquisitions still under measurement as well as other immaterial intangible assets added during the ordinary course of business. In addition, goodwill and intangibles increased during each of the three months ended March 31, 2019 and 2018 due to small tuck-in acquisitions merged into existing operations that do not appear in the above table as discussed above. Estimates of acquired intangible assets related to the acquisitions are as follows (in thousands): For the three months ended March 31, 2019 2018 Acquired intangibles assets Estimated Fair Value Weighted Average Estimated Useful Life (yrs.) Estimated Fair Value Weighted Average Estimated Useful Life (yrs.) Customer relationships $ 2,100 8 $ 3,441 8 Trademarks and trade names 999 15 1,695 15 Non-competition agreements 283 5 250 5 Pro Forma Information The unaudited pro forma information for the combined results of the Company has been prepared as if the 2019 acquisitions had taken place on January 1, 2018 and the 2018 acquisitions had taken place on January 1, 2017. The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transactions actually taken place on January 1, 2018 and 2017, respectively, and the unaudited pro forma information does not purport to be indicative of future financial operating results (in thousands, except per share data): Unaudited pro forma for the three months ended March 31, 2019 2018 Net revenue $ 344,397 $ 322,666 Net income 8,793 7,478 Basic and diluted net income per share 0.30 0.24 Unaudited pro forma net income reflects additional intangible asset amortization expense of $64 thousand and $1.2 million for the three months ended March 31, 2019 and 2018, respectively, as well as additional income tax (benefit) expense of ($ 16 |
Income Per Common Share
Income Per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Income Per Common Share | NOTE 16 INCOME PER COMMON SHARE Basic net income per common share is calculated by dividing net income by the weighted average shares outstanding during the period, without consideration for common stock equivalents. Diluted net income per common share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury stock method. Potential common stock is included in the diluted income per common share calculation when dilutive. The dilutive effect of outstanding restricted stock awards after application of the treasury stock method was 127 224 nine |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include all of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The information furnished in the Condensed Consolidated Financial Statements includes normal recurring adjustments and reflects all adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations and statements of financial position for the interim periods presented. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) have been omitted pursuant to such rules and regulations. We believe that the disclosures are adequate to prevent the information presented from being misleading when read in conjunction with our audited consolidated financial statements and the notes thereto included in Part II, Item 8, Financial Statements and Supplementary Data, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the “2018 Form 10-K”), as filed with the SEC on February 28, 2019. The December 31, 2018 Condensed Consolidated Balance Sheet data herein was derived from the audited consolidated financial statements but does not include all disclosures required by U.S. GAAP. Our interim operating results for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected in future operating quarters. See Item 1A, Risk Factors, in our 2018 Form 10-K for additional information regarding risk factors that may impact our results. Note 2 to the audited consolidated financial statements in our 2018 Form 10-K describes the significant accounting policies and estimates used in preparation of the audited consolidated financial statements. There have been no changes to our significant accounting policies during the three months ended March 31, 2019, except for the manner in which we account for leases as described in Note 7, Leases. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Standard Adoption ASU 2016-02, Leases (Topic 842) This Accounting Standards Update (“ASU”) requires substantially all leases, with the exception of leases with a term of one year or less, to be recorded on the balance sheet as a lease liability measured as the present value of the future lease payments with a corresponding right-of-use asset. This ASU also requires disclosures designed to give financial statement users information on the amount, timing and uncertainty of cash flows. See Note 7, Leases, for further information regarding our lease accounting policies. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted We are currently evaluating the impact of certain ASU’s on our Condensed Consolidated Financial Statements or Notes to Consolidated Financial Statements, which are described below: Standard Description Effective Date Effect on the financial statements ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) This pronouncement amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. In addition, these amendments require the measurement of all expected credit losses for financial assets, including trade accounts receivable, held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Annual periods beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. We are currently evaluating whether this ASU will have a material impact on our consolidated financial statements. ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment To address concerns over the cost and complexity of the two-step goodwill impairment test, this pronouncement removes the second step of the goodwill impairment test. Going forward, an entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. We anticipate the adoption of this ASU will not have a material impact on our disclosures. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement This pronouncement amends Topic 820 to eliminate, add and modify certain disclosure requirements for fair value measurements. Annual periods beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. We are currently evaluating the provisions of this ASU and the impact it will have on our disclosures. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenues Disaggregated by End Market and Product | The following tables present our revenues disaggregated by end market and product (in thousands): Three months ended March 31, 2019 2018 Residential new construction $ 261,310 77 % $ 229,642 76 % Repair and remodel 21,521 6 % 20,472 7 % Commercial 59,304 17 % 51,614 17 % Net revenues $ 342,135 100 % $ 301,728 100 % Three months ended March 31, 2019 2018 Insulation $ 221,223 65 % $ 202,275 67 % Waterproofing 22,385 7 % 22,606 7 % Shower doors, shelving and mirrors 23,917 7 % 20,260 7 % Garage doors 21,672 6 % 15,466 5 % Rain gutters 11,199 3 % 8,658 3 % Window blinds 9,384 3 % 5,306 2 % Other building products 32,355 9 % 27,157 9 % Net revenues $ 342,135 100 % $ 301,728 100 % |
Summary of Assets and Liabilities Related to Uncompleted Contracts and Customer Deposits | Contract assets and liabilities related to our uncompleted contracts and customer deposits were as follows (in thousands): March 31, December 31, 2019 2018 Contract assets $ 19,565 $ 15,092 Contract liabilities (7,792 ) (7,468 ) |
Schedule of Cost and Estimated Earnings on Uncompleted Contracts | Uncompleted contracts were as follows (in thousands): March 31, December 31, 2019 2018 Costs incurred on uncompleted contracts $ 101,024 $ 114,826 Estimated earnings 52,670 58,952 Total 153,694 173,778 Less: Billings to date 139,100 163,112 Net under (over) billings $ 14,594 $ 10,666 |
Schedule of Net Under (Over) Billings | Net under (over) billings were as follows (in thousands): March 31, December 31, 2019 2018 Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) $ 19,565 $ 15,092 Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) (4,971 ) (4,426 ) Net under (over) billings $ 14,594 $ 10,666 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Change in Carrying Amount of Goodwill | The change in carrying amount of goodwill was as follows (in thousands): Goodwill (Gross) Accumulated Impairment Losses Goodwill (Net) January 1, 2019 $ 243,053 $ (70,004 ) $ 173,049 Business Combinations 1,882 — 1,882 Other 28 — 28 March 31, 2019 $ 244,963 $ (70,004 ) $ 174,959 |
Schedule of Gross Carrying Amount, Accumulated Amortization and Net Book Value | The following table provides the gross carrying amount, accumulated amortization and net book value for each major class of intangibles (in thousands): As of March 31, 2019 As of December 31, 2018 Gross Net Gross Net Carrying Accumulated Book Carrying Accumulated Book Amount Amortization Value Amount Amortization Value Amortized intangibles: Customer relationships $ 150,735 $ 56,530 $ 94,205 $ 148,635 $ 52,514 $ 96,121 Covenants not-to-compete 15,090 8,325 6,765 14,682 7,572 7,110 Trademarks and trade names 65,432 19,319 46,113 64,432 18,256 46,176 Backlog 14,060 13,734 326 14,060 13,677 383 $ 245,317 $ 97,908 $ 147,409 $ 241,809 $ 92,019 $ 149,790 |
Schedule of Estimated Aggregate Annual Amortization | Remaining estimated aggregate annual amortization expense is as follows (amounts, in thousands, are for the fiscal year ended): Remainder of 2019 17,719 2020 22,744 2021 21,415 2022 20,494 2023 17,583 Thereafter 47,454 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consisted of the following (in thousands): As of March 31, As of December 31, 2019 2018 Term loan, net of unamortized debt issuance costs of $ 4,642 4,834 $ 390,108 $ 390,916 Vehicle and equipment notes, maturing through March 2024 2.5 4.8 60,811 60,391 Various notes payable, maturing through March 2025 4 6 3,466 3,517 454,385 454,824 Less: current maturities (23,925 ) (22,642 ) Long-term debt, less current maturities $ 430,460 $ 432,182 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of lease-related assets and liabilities | The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheet: (in thousands) Classification As of March 31, Assets Non-Current Operating Operating lease right-of-use assets $ 45,280 Finance Property and equipment, net 9,217 Total lease assets $ 54,497 Liabilities Current Operating Current maturities of operating lease obligations $ 14,241 Financing Current maturities of finance lease obligations 4,328 Non-Current Operating Operating lease obligations 30,682 Financing Finance lease obligations 3,974 Total lease liabilities $ 53,225 Weighted-average remaining lease term Operating leases 4.5 years Finance leases 2.3 years Weighted-average discount rate Operating leases (1) 5.04 % Finance leases 4.57 % (1) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. |
Schedule of lease costs for finance and operating leases | The table below presents certain information related to the lease costs for finance and operating leases during 2019: (in thousands) Classification Three months ended 31 , 2019 Operating lease cost (1) Administrative $ 4,987 Finance lease cost Amortization of leased assets (2) Cost of sales 1,478 Interest on capital lease obligations Interest expense, net 94 Total lease costs $ 6,559 (1) Includes variable lease costs of $0.5 million and short-term lease costs of $ 0.2 (2) Includes variable lease costs of $0.3 million. |
Schedule of Supplemental Cash flow information Related to Leases | The table below presents supplemental cash flow information related to leases during 2019 (in thousands): Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 4,233 Operating cash flows for finance leases 94 Financing cash flows for finance leases 1,366 |
Schedule of Undiscounted Cash Flows | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet (in thousands): As of March 31, 2019 Related Party Other Total Operating Finance Leases Remainder of 2019 $ 774 $ 11,595 $ 12,369 $ 3,947 2020 1,055 12,240 13,295 2,539 2021 910 8,042 8,952 1,596 2022 836 4,615 5,451 663 2023 415 3,047 3,462 284 Thereafter 823 6,007 6,830 16 Total minimum lease payments $ 4,813 $ 45,546 50,359 9,045 Less: Amounts representing executory costs — (255 ) Less: Amounts representing interest (5,436 ) (488 ) Present value of future minimum lease payments 44,923 8,302 Less: Current obligation under leases (14,241 ) (4,328 ) Long-term lease obligations $ 30,682 $ 3,974 |
Future Minimum Lease Payments Under Noncancellable Operating Leases | 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 were as follows (in thousands): Operating Leases Capital Leases Related Party Other Total Operating 2019 $ 5,207 $ 1,159 $ 14,418 $ 15,577 2020 2,253 1,184 11,293 12,477 2021 1,339 1,058 7,014 8,072 2022 452 972 4,335 5,307 2023 93 51 2,613 2,664 Thereafter — — 4,695 4,695 9,344 $ 4,424 $ 44,368 $ 48,792 Less: Amounts representing executory costs (255 ) Less: Amounts representing interest (459 ) Total obligation under capital leases 8,630 Less: Current portion of capital leases (4,806 ) Long term capital lease obligation $ 3,824 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Values of Financial Assets and Liabilities | The fair values of financial assets and liabilities that are recorded at fair value in the Condensed Consolidated Balance Sheets and not described above were as follows (in thousands): As of March 31, 2019 As of December 31, 2018 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Financial assets: Cash equivalents $ 71,240 $ 71,240 $ — $ — $ 69,807 $ 69,807 $ — $ — Derivative financial instruments 805 — 805 — 1,765 — 1,765 — Total financial assets $ 72,045 $ 71,240 $ 805 $ — $ 71,572 $ 69,807 $ 1,765 $ — Financial liabilities: Derivative financial instruments $ 4,984 $ — $ 4,984 $ — $ 2,275 $ — $ 2,275 $ — Contingent consideration 4,977 — — 4,977 5,098 — — 5,098 Total financial liabilities $ 9,961 $ — $ 4,984 $ 4,977 $ 7,373 $ — $ 2,275 $ 5,098 |
Summary of Change in Fair Value of Contingent Consideration | The change in fair value of the contingent consideration (a Level 3 input) was as follows (in thousands): Contingent consideration liability January 1, 2019 $ 5,098 Preliminary purchase price 1,525 Fair value adjustments (245 ) Accretion in value 125 Amounts paid to sellers (1,526 ) Contingent consideration liability March 31, 2019 $ 4,977 |
Summary of Carrying Values and Associated Fair Values of Financial Assets and Liabilities | The carrying values and associated fair values of financial assets and liabilities that are not recorded at fair value in the Condensed Consolidated Balance Sheets and not described above include investments which represent a Level 2 fair value measurement and are as follows (in thousands): As of March 31, 2019 As of December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Financial assets: Investments $ 10,026 $ 10,026 $ 10,060 $ 10,053 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Summary of Workers' Compensation Known Claims and IBNR Reserves | Workers’ compensation known claims and IBNR reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands): March 31, 2019 December 31, 2018 Included in other current liabilities $ 5,201 $ 5,795 Included in other long-term liabilities 11,138 9,447 $ 16,339 $ 15,242 |
Schedule of Insurance Receivable for Claims | This receivable offsets an equal liability included within the reserve amounts noted above and was as follows (in thousands): March 31, 2019 December 31, 2018 Included in other non-current assets $ 1,905 $ 1,888 |
Summary of Equity-based Awards for Employees | Amounts and changes for each category of equity-based award for employees were as follows: Common Stock Awards Performance-Based Stock Awards Performance-Based Restricted Stock Units Awards Weighted Average Fair Market Value Per Share Awards Weighted Average Fair Market Value Per Share Units Weighted Average Fair Market Value Per Share Nonvested awards/units at December 31, 2018 173,189 $ 47.40 115,698 $ 52.25 13,248 $ 56.05 Granted 10,800 45.65 82,692 45.65 — — Vested (564 ) 54.98 — — — — Forfeited/Cancelled (445 ) 56.05 (6,697 ) 65.60 (440 ) 56.05 Nonvested awards/units at March 31, 2019 182,980 $ 47.25 191,693 $ 48.93 12,808 $ 56.05 |
Summary of Stock Compensation Expenses | We recorded the following stock compensation expense by income statement category (in thousands): Three months ended March 31, 2019 2018 Cost of sales $ 78 $ 475 Selling 44 283 Administrative 1,816 1,482 $ 1,938 $ 2,240 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Common or Related Party Transactions | The amount of sales to related parties as well as the purchases from and rent expense paid to related parties were as follows (in thousands): Three months ended March 31, 2019 2018 Sales $ 2,661 $ 2,893 Purchases 388 363 Rent 260 281 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Accrued General Insurance Reserves | Accrued general liability and auto insurance reserves included on the Condensed Consolidated Balance Sheets were as follows (in thousands): March 31, December 31, 2019 2018 Included in other current liabilities $ 1,914 $ 1,848 Included in other long-term liabilities 9,803 6,608 $ 11,717 $ 8,456 |
Schedule of Insurance Receivable for Claims | We also had insurance receivables and an indemnification asset included on the Condensed Consolidated Balance Sheets that, in aggregate, offset an equal liability included within the reserve amounts noted above. The amounts were as follows (in thousands): March 31, December 31, 2019 2018 Insurance receivable and indemnification asset for claims under a $ 2,484 $ 2,484 Insurance receivable for claims that exceeded the stop loss limit 1,613 53 Total insurance receivables included in other non-current assets $ 4,097 $ 2,537 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Combinations | As part of our ongoing strategy to expand geographically and increase market share in certain markets, we completed one one 100 The largest of these acquisitions were 1st State Insulation, LLC (“1st State Insulation”) in March 2019 and Custom Overhead Door, LLC dba Custom Door & Gate (collectively, “CDG”) in March 2018. Net Income, as noted below, includes amortization, taxes and interest allocations when appropriate. Below is a summary of each significant acquisition by year, including revenue and net income (loss) since date of acquisition, shown for the year of acquisition (in thousands): Total Three months ended Acquisition Cash Seller Purchase March 31, 2019 2019 Acquisitions Date Type Paid Obligations Price Revenue Net Income 1st State Insulation 3/18/2019 Asset $ 5,125 $ 1,380 $ 6,505 $ 488 $ 23 Three months ended Acquisition Seller Total Purchase March 31, 2018 2018 Acquisitions Date Type Cash Paid Obligations Price Revenue Net (Loss) Income CDG 3/19/2018 Asset $ 9,440 $ 1,973 $ 11,413 $ 400 $ (15 ) Other 1/15/2018 Asset 2,065 953 3,018 1,271 66 Total $ 11,505 $ 2,926 $ 14,431 $ 1,671 $ 51 |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The estimated fair values of the assets acquired and liabilities assumed for the acquisitions, as well as total purchase prices and cash paid, approximated the following (in thousands): As of March 31, 2019 As of March 31, 2018 1st State CDG Other Total Estimated fair values: Accounts receivable $ — $ 1,731 $ — $ 1,731 Inventories 291 514 75 589 Other current assets — 28 12 40 Property and equipment 989 933 517 1,450 Intangibles 3,382 3,711 1,675 5,386 Goodwill 1,882 4,898 764 5,662 Other non-current assets — 36 — 36 Accounts payable and other current liabilities (39 ) (438 ) (25 ) (463 ) Fair value of assets acquired and purchase price 6,505 11,413 3,018 14,431 Less seller obligations 1,380 1,973 953 2,926 Cash paid $ 5,125 $ 9,440 $ 2,065 $ 11,505 |
Estimates of Acquired Intangible Assets | Estimates of acquired intangible assets related to the acquisitions are as follows (in thousands): For the three months ended March 31, 2019 2018 Acquired intangibles assets Estimated Fair Value Weighted Average Estimated Useful Life (yrs.) Estimated Fair Value Weighted Average Estimated Useful Life (yrs.) Customer relationships $ 2,100 8 $ 3,441 8 Trademarks and trade names 999 15 1,695 15 Non-competition agreements 283 5 250 5 |
Pro Forma Results of Operations | The unaudited pro forma information for the combined results of the Company has been prepared as if the 2019 acquisitions had taken place on January 1, 2018 and the 2018 acquisitions had taken place on January 1, 2017. The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transactions actually taken place on January 1, 2018 and 2017, respectively, and the unaudited pro forma information does not purport to be indicative of future financial operating results (in thousands, except per share data): Unaudited pro forma for the three months ended March 31, 2019 2018 Net revenue $ 344,397 $ 322,666 Net income 8,793 7,478 Basic and diluted net income per share 0.30 0.24 |
Organization - Additional Infor
Organization - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019LocationSegment | |
Basis Of Presentation And Organization [Line Items] | |
Number of operating segment | Segment | 1 |
United States [Member] | |
Basis Of Presentation And Organization [Line Items] | |
Number of locations the company operates | Location | 175 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Contract liability revenue recognized | $ 6.3 |
Transaction price allocated to uncompleted contracts | $ 89.5 |
Expected time of revenue recognition | over the next 18 months. |
Performance obligation, description of timing | one year or less. |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenues Disaggregated by End Market and Product (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 342,135 | $ 301,728 |
Revenue [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Net revenues | 100.00% | 100.00% |
Insulation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 221,223 | $ 202,275 |
Insulation [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Net revenues | 65.00% | 67.00% |
Waterproofing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 22,385 | $ 22,606 |
Waterproofing [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Net revenues | 7.00% | 7.00% |
Shower Doors, Shelving and Mirrors [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 23,917 | $ 20,260 |
Shower Doors, Shelving and Mirrors [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Net revenues | 7.00% | 7.00% |
Garage Doors [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 21,672 | $ 15,466 |
Garage Doors [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Net revenues | 6.00% | 5.00% |
Rain Gutters [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 11,199 | $ 8,658 |
Rain Gutters [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Net revenues | 3.00% | 3.00% |
Window blinds [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 9,384 | $ 5,306 |
Window blinds [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Net revenues | 3.00% | 2.00% |
Other Building Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 32,355 | $ 27,157 |
Other Building Products [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Net revenues | 9.00% | 9.00% |
Residential New Construction [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 261,310 | $ 229,642 |
Residential New Construction [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Net revenues | 77.00% | 76.00% |
Repair and Remodel[Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 21,521 | $ 20,472 |
Repair and Remodel[Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Net revenues | 6.00% | 7.00% |
Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 59,304 | $ 51,614 |
Commercial [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Net revenues | 17.00% | 17.00% |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Assets and Liabilities Related to Uncompleted Contracts and Customer Deposits (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Contract with Customer, Asset and Liability [Abstract] | ||
Contract assets | $ 19,565 | $ 15,092 |
Contract liabilities | $ (7,792) | $ (7,468) |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Cost and Estimated Earnings on Uncompleted Contracts (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Contractors [Abstract] | ||
Costs incurred on uncompleted contracts | $ 101,024 | $ 114,826 |
Estimated earnings | 52,670 | 58,952 |
Total | 153,694 | 173,778 |
Less: Billings to date | 139,100 | 163,112 |
Net under (over) billings | $ 14,594 | $ 10,666 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Net Under (Over) Billings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Contractors [Abstract] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) | $ 19,565 | $ 15,092 |
Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) | (4,971) | (4,426) |
Net under (over) billings | $ 14,594 | $ 10,666 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Cash and cash equivalents | $ 71.2 | $ 69.8 |
Held-to-Maturity Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Investments | $ 10 | $ 10.1 |
Goodwill and Intangibles - Summ
Goodwill and Intangibles - Summary of Change in Carrying Amount of Goodwill (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill (Gross), beginning balance | $ 243,053 |
Business Combinations | 1,882 |
Other | 28 |
Goodwill (Gross), ending balance | 244,963 |
Accumulated Impairment Losses, beginning balance | (70,004) |
Accumulated Impairment Losses, ending balance | (70,004) |
Goodwill (Net), beginning balance | 173,049 |
Business Combinations | 1,882 |
Other | 28 |
Goodwill (Net), ending balance | $ 174,959 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Increase in gross carrying amount of intangibles | $ 3.5 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Gross Carrying Amount and Accumulated Amortization (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 245,317 | $ 241,809 |
Accumulated Amortization | 97,908 | 92,019 |
Net Book Value | 147,409 | 149,790 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 150,735 | 148,635 |
Accumulated Amortization | 56,530 | 52,514 |
Net Book Value | 94,205 | 96,121 |
Covenants Not-to-Compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,090 | 14,682 |
Accumulated Amortization | 8,325 | 7,572 |
Net Book Value | 6,765 | 7,110 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 65,432 | 64,432 |
Accumulated Amortization | 19,319 | 18,256 |
Net Book Value | 46,113 | 46,176 |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 14,060 | 14,060 |
Accumulated Amortization | 13,734 | 13,677 |
Net Book Value | $ 326 | $ 383 |
Goodwill and Intangibles - Sc_2
Goodwill and Intangibles - Schedule of Estimated Aggregate Annual Amortization (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Finite Lived Intangible Assets Net Amortization Expense Rolling Maturity [Abstract] | |
Remainder of 2019 | $ 17,719 |
2020 | 22,744 |
2021 | 21,415 |
2022 | 20,494 |
2023 | 17,583 |
Thereafter | $ 47,454 |
Long-term Debt - Schedule of De
Long-term Debt - Schedule of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Term loan, net of unamortized debt issuance costs of $4,642 and $4,834, respectively | $ 390,108 | $ 390,916 |
Vehicle and equipment notes, maturing through March 2024; payable in various monthly installments, including interest rates ranging from 2.5% to 4.8% | 60,811 | 60,391 |
Various notes payable, maturing through March 2025; payable in various monthly installments, including interest rates ranging from 4% to 6% | 3,466 | 3,517 |
Total long term debt | 454,385 | 454,824 |
Less: current maturities | (23,925) | (22,642) |
Long-term debt, less current maturities | $ 430,460 | $ 432,182 |
Long-term Debt - Schedule of _2
Long-term Debt - Schedule of Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Notes payable maturity date | 2025-03 | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable Interest rate | 4.00% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable Interest rate | 6.00% | |
Term Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ 4,642 | $ 4,834 |
Vehicle and Equipment [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable maturity date | 2024-03 | |
Vehicle and Equipment [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable Interest rate | 2.50% | |
Vehicle and Equipment [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable Interest rate | 4.80% |
Leases - Schedule Of Supplement
Leases - Schedule Of Supplemental Balance Sheet In formation Related To Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Non-Current | |||
Operating | $ 45,280 | ||
Finance | 9,217 | ||
Total lease assets | 54,497 | ||
Current | |||
Less: Current obligation under leases | 14,241 | ||
Financing | 4,328 | $ 4,806 | |
Non-Current | |||
Long-term lease obligations | 30,682 | ||
Financing | 3,974 | $ 3,824 | |
Total lease liabilities | $ 53,225 | ||
Weighted-average remaining lease term | |||
Operating leases | 4 years 6 months | ||
Finance leases | 2 years 3 months 18 days | ||
Weighted-average discount rate | |||
Operating leases | [1] | 5.04% | |
Finance leases | 4.57% | ||
[1] | Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. |
Leases - Lease Cost Finance And
Leases - Lease Cost Finance And Operating Leases (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($) | ||
Operating Lease, Cost | $ 4,987 | [1] |
Finance lease cost | ||
Amortization of leased assets | 1,478 | [2] |
Interest on capital lease obligations | 94 | |
Total lease costs | $ 6,559 | |
[1] | Includes variable lease costs of $0.5 million and short-term lease costs of $0.2 million. | |
[2] | Includes variable lease costs of $0.3 million. |
Leases - Lease Cost Finance A_2
Leases - Lease Cost Finance And Operating Leases (Parenthetical) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Short-term Lease, Cost | $ 0.2 |
General and Administrative Expense [Member] | |
Variable Lease, Cost | 0.5 |
Cost of Sales [Member] | |
Variable Lease, Cost | $ 0.3 |
Leases - Schedule Of Suppleme_2
Leases - Schedule Of Supplemental Cash Flow Information Related To Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 4,233 | |
Operating cash flows for finance leases | 94 | |
Financing cash flows for finance leases | $ 1,366 | $ 1,629 |
Leases - Finance Lease Obligati
Leases - Finance Lease Obligations And Operating Lease Obligations (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Remainder of 2019 | $ 12,369 | |
2020 | 13,295 | |
2021 | 8,952 | |
2022 | 5,451 | |
2023 | 3,462 | |
Thereafter | 6,830 | |
Total minimum lease payments | 50,359 | $ 48,792 |
Less: Amounts representing interest | (5,436) | |
Present value of future minimum lease payments | 44,923 | |
Less: Current obligation under leases | 14,241 | |
Long-term lease obligations | 30,682 | |
Remainder of 2019 | 3,947 | |
2020 | 2,539 | |
2021 | 1,596 | |
2022 | 663 | |
2023 | 284 | |
Thereafter | 16 | |
Total minimum lease payments | 9,045 | |
Less: Amounts representing executory costs | (255) | |
Less: Amounts representing interest | (488) | |
Present value of future minimum lease payments | 8,302 | |
Less: Current obligation under leases | 4,328 | 4,806 |
Long-term lease obligations | 3,974 | $ 3,824 |
Other Party Operating Leases [Member] | ||
Remainder of 2019 | 11,595 | |
2020 | 12,240 | |
2021 | 8,042 | |
2022 | 4,615 | |
2023 | 3,047 | |
Thereafter | 6,007 | |
Total minimum lease payments | 45,546 | |
Related Party Operating Leases [Member] | ||
Remainder of 2019 | 774 | |
2020 | 1,055 | |
2021 | 910 | |
2022 | 836 | |
2023 | 415 | |
Thereafter | 823 | |
Total minimum lease payments | $ 4,813 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Noncancellable Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Future Minimum Payments Under Non Cancelable Operating Leases With Initial Or Remaining Lease Terms In Excess Of One Year And Future Minimum Capital Lease Payments [Line Items] | ||
2019 | $ 5,207 | |
2020 | 2,253 | |
2021 | 1,339 | |
2022 | 452 | |
2023 | 93 | |
Total minimum lease payments | 9,344 | |
Less: Amounts representing executory costs | (255) | |
Less: Amounts representing interest | (459) | |
Total obligation under capital leases | 8,630 | |
Less: Current obligation under leases | (4,806) | |
Long-term lease obligations | 3,824 | |
2019 | 15,577 | |
2020 | 12,477 | |
2021 | 8,072 | |
2022 | 5,307 | |
2023 | 2,664 | |
Thereafter | 4,695 | |
Total minimum lease payments | $ 50,359 | 48,792 |
Related Party Operating Lease [Member] | ||
Future Minimum Payments Under Non Cancelable Operating Leases With Initial Or Remaining Lease Terms In Excess Of One Year And Future Minimum Capital Lease Payments [Line Items] | ||
2019 | 1,159 | |
2020 | 1,184 | |
2021 | 1,058 | |
2022 | 972 | |
2023 | 51 | |
Total minimum lease payments | 4,424 | |
Other Operating Leases [Member] | ||
Future Minimum Payments Under Non Cancelable Operating Leases With Initial Or Remaining Lease Terms In Excess Of One Year And Future Minimum Capital Lease Payments [Line Items] | ||
2019 | 14,418 | |
2020 | 11,293 | |
2021 | 7,014 | |
2022 | 4,335 | |
2023 | 2,613 | |
Thereafter | 4,695 | |
Total minimum lease payments | $ 44,368 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 31, 2019 | Jan. 01, 2019 | |
Other Assets, Noncurrent | $ 10,157 | $ 10,374 | |
Other Assets, Current | 35,760 | 32,473 | |
Other Liabilities, Current | 29,366 | 28,680 | |
Finance Lease, Right-of-Use Asset | $ 9,217 | ||
Accounting Standards Update 2016-02 [Member] | |||
Other Assets, Noncurrent | $ 44,900 | ||
Other Assets, Current | 1,400 | ||
Other Liabilities, Current | 1,000 | ||
Operating Lease, Liability | 44,500 | ||
Finance Lease, Right-of-Use Asset | 9,500 | $ 58,700 | |
Accounting Standards Update 2016-02 [Member] | Cost of Sales [Member] | |||
Finance Lease, Right-of-Use Asset, Amortization | $ 32,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Values of Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Cash equivalents | $ 71,240 | $ 69,807 |
Derivative financial instruments | 805 | 1,765 |
Total financial assets | 72,045 | 71,572 |
Financial liabilities: | ||
Derivative financial instruments | 4,984 | 2,275 |
Contingent consideration | 4,977 | 5,098 |
Total financial liabilities | 9,961 | 7,373 |
Level 1 [Member] | ||
Financial assets: | ||
Cash equivalents | 71,240 | 69,807 |
Total financial assets | 71,240 | 69,807 |
Level 2 [Member] | ||
Financial assets: | ||
Derivative financial instruments | 805 | 1,765 |
Total financial assets | 805 | 1,765 |
Financial liabilities: | ||
Derivative financial instruments | 4,984 | 2,275 |
Total financial liabilities | 4,984 | 2,275 |
Level 3 [Member] | ||
Financial liabilities: | ||
Contingent consideration | 4,977 | 5,098 |
Total financial liabilities | $ 4,977 | $ 5,098 |
Fair value measurements - Summa
Fair value measurements - Summary of Change in Fair Value of Contingent Consideration (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, (Sales), Issuances, (Settlements) [Abstract] | |
Beginning Balance | $ 5,098 |
Preliminary purchase price | 1,525 |
Fair value adjustments | (245) |
Accretion in value | 125 |
Amounts paid to sellers | (1,526) |
Ending Balance | $ 4,977 |
Fair Value measurements - Sum_2
Fair Value measurements - Summary of Carrying Values and Associated Fair Values of Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying Value [Member] | ||
Financial assets: | ||
Investments | $ 10,026 | $ 10,060 |
Level 2 [Member] | ||
Financial assets: | ||
Investments | $ 10,026 | $ 10,053 |
Derivative and Hedging Activiti
Derivative and Hedging Activities - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2019USD ($)InstrumentsSwap | Mar. 31, 2018USD ($) | |
Term Loan [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of swaps | Swap | 3 | |
Designated as Hedging Instrument [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified | $ 0 | $ 0 |
Designated as Hedging Instrument [Member] | Term Loan [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Debt instrument, face amount | 200,000,000 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Reclassification from accumulated other comprehensive income to interest expense | 100,000 | |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative instruments | $ 200,000,000 | |
Derivatives, number of instruments held | Instruments | 2 | |
Notional amount maturity date | May 31, 2022 | |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Interest Rate Swap Matured on May 31, 2022 [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount amortized | $ 95,300,000 | |
Notional amount maturity date | May 31, 2022 | |
Derivatives, number of instruments amortized | Instruments | 1 | |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Interest Rate Swap Matured on April 15, 2025 [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount amortized | $ 93,300,000 | |
Notional amount maturity date | Apr. 15, 2025 | |
Derivatives, number of instruments amortized | Instruments | 1 | |
Forward Interest Rate Swaps [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative instruments | $ 100,000,000 | |
Notional amount amortized | $ 97,000,000 | |
Notional amount maturity date | Apr. 15, 2025 | |
Notional amount beginning date | May 31, 2022 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Statement Of Shareholders Equity [Line Items] | |||
Effective portion of unrealized (loss) gain on derivative instruments | $ (3,180) | $ (431) | |
Share repurchase, amount | $ 24,640 | ||
2018 Stock Repurchase Plan [Member] | |||
Statement Of Shareholders Equity [Line Items] | |||
Common Stock Repurchase, Shares | 413 | ||
Share repurchase, amount | $ 24,600 | ||
Share repurchase, price per share | $ 59.70 | ||
2018 Stock Repurchase Plan [Member] | Board of Directors [Member] | |||
Statement Of Shareholders Equity [Line Items] | |||
Stock repurchase program expiration date | Feb. 28, 2020 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) $ in Thousands, Unit_pure in Millions | 3 Months Ended | ||
Mar. 31, 2019USD ($)Installmentsshares | Mar. 31, 2018USD ($)shares | Dec. 31, 2018USD ($) | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Healthcare benefit expense, net of employee contributions | $ 4,800 | $ 4,400 | |
Accrued compensation | 22,371 | $ 27,923 | |
Administration expense related to employee contribution plan | 600 | 400 | |
Share-based compensation expense | 1,938 | $ 2,240 | |
Unrecognized compensation expense | $ 4,500 | ||
Compensation cost not yet recognized, period for recognition | 1 year 9 months 18 days | ||
Common Stock [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Number of shares granted | shares | 11,000 | 8,000 | |
Cost of Sales [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Workers' compensation expense | $ 4,200 | $ 3,800 | |
Share-based compensation expense | 78 | 475 | |
Performance Based Restricted Stock Units [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Share-based compensation expense | 100 | 900 | |
Unrecognized compensation expense | $ 34,000 | ||
Compensation cost not yet recognized, period for recognition | 1 month 6 days | ||
Non-Performance-Based Awards [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Share-based compensation expense | $ 1,100 | 900 | |
Performance Based Awards [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Number of shares granted | shares | 82,692 | ||
Board of Directors [Member] | Restricted Stock [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Share-based compensation expense | $ 100 | $ 100 | |
2014 Omnibus Incentive Plan [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Number of equal installments for common stock | Installments | 2 | ||
Number of shares granted | shares | 46,000 | ||
2014 Omnibus Incentive Plan [Member] | Officer [Member] | Performance Shares [Member] | Common Stock [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Number of equal installments for common stock | 0.1 | ||
Number of shares granted | shares | 2 | ||
2014 Omnibus Incentive Plan [Member] | Officer [Member] | Performance Based Awards [Member] | Common Stock [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Share-based compensation expense | $ 700 | $ 400 | |
Unrecognized compensation expense | $ 5,800 | ||
Compensation cost not yet recognized, period for recognition | 2 years 1 month 6 days | ||
Medical IBNR Included in Accrued Compensation [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Accrued compensation | $ 2,700 | $ 2,300 |
Employee Benefits - Summary of
Employee Benefits - Summary of Workers' Compensation Known Claims and IBNR Reserves (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Employee-related Liabilities [Abstract] | ||
Included in other current liabilities | $ 5,201 | $ 5,795 |
Included in other long-term liabilities | 11,138 | 9,447 |
Workers' Compensation Liability | $ 16,339 | $ 15,242 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Insurance Receivable for Claims (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Workers' Compensation [Member] | ||
Malpractice Insurance [Line Items] | ||
Included in other non-current assets | $ 1,905 | $ 1,888 |
Employee Benefits - Summary o_2
Employee Benefits - Summary of Equity-Based Awards for Employees (Detail) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Common Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested common stock awards, Beginning balance | shares | 173,189 |
Granted | shares | 10,800 |
Vested | shares | (564) |
Forfeited/Cancelled | shares | (445) |
Nonvested common stock awards, Ending balance | shares | 182,980 |
Nonvested performance-based stock awards, Beginning balance | $ / shares | $ 47.40 |
Granted | $ / shares | 45.65 |
Vested | $ / shares | 54.98 |
Forfeited/Cancelled | $ / shares | 56.05 |
Nonvested performance-based stock awards, Ending balance | $ / shares | $ 47.25 |
Performance Based Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested performance-based stock awards/units, Beginning balance | shares | 115,698 |
Granted | shares | 82,692 |
Forfeited/Cancelled | shares | (6,697) |
Nonvested performance-based stock awards/units, Ending balance | shares | 191,693 |
Nonvested performance-based stock awards/units, Beginning balance | $ / shares | $ 52.25 |
Granted | $ / shares | 45.65 |
Forfeited/Cancelled | $ / shares | 65.60 |
Nonvested performance-based stock awards/units, Ending balance | $ / shares | $ 48.93 |
Performance Based Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested performance-based stock awards/units, Beginning balance | shares | 13,248 |
Forfeited/Cancelled | shares | (440) |
Nonvested performance-based stock awards/units, Ending balance | shares | 12,808 |
Nonvested performance-based stock awards/units, Beginning balance | $ / shares | $ 56.05 |
Forfeited/Cancelled | $ / shares | 56.05 |
Nonvested performance-based stock awards/units, Ending balance | $ / shares | $ 56.05 |
Employee Benefits - Summary o_3
Employee Benefits - Summary of Stock Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | $ 1,938 | $ 2,240 |
Cost of Sales [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | 78 | 475 |
Selling [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | 44 | 283 |
Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | $ 1,816 | $ 1,482 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes [Line Items] | |
Effective tax rate | 27.50% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Detail) - Affiliated Entity [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Sales | $ 2,661 | $ 2,893 |
Purchases | 388 | 363 |
Rent | $ 260 | $ 281 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Affiliated Entity [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable, related parties | $ 2 | $ 2.3 |
M/I Homes Inc [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable, related parties | $ 1.2 | $ 1.2 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Accrued General Insurance Reserves (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Included in other current liabilities | $ 1,914 | $ 1,848 |
Included in other long-term liabilities | 9,803 | 6,608 |
Total | $ 11,717 | $ 8,456 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Insurance Receivable for Claims (Detail) - General Liability [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Commitments And Contingencies Disclosure [Line Items] | ||
Insurance receivable and indemnification asset for claims under a fully insured policy | $ 2,484 | $ 2,484 |
Insurance receivable for claims that exceeded the stop loss limit | 1,613 | 53 |
Total insurance receivables included in other non-current assets | $ 4,097 | $ 2,537 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Commitments And Contingencies Disclosure [Line Items] | |
Purchase obligation, 2019 | $ 16.4 |
Purchase obligation, 2020 | 21.4 |
Purchase obligation, 2021 | 15 |
Purchase Obligations Satisfied | 1.8 |
Actual Purchases Under Agreement | 0.2 |
Chemical Supplier [Member] | |
Commitments And Contingencies Disclosure [Line Items] | |
Purchase obligation, 2019 | $ 0.6 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)Business | Mar. 31, 2018USD ($) | |
Business Acquisition [Line Items] | ||
Number of businesses acquired | Business | 1 | |
Percentage of voting equity interests acquired | 100.00% | |
Goodwill acquired expected to be tax deductible | $ 2,000 | |
Amortization of intangibles | 5,888 | $ 7,128 |
Income tax expense (benefit) | 3,354 | 2,243 |
Administrative [Member] | ||
Business Acquisition [Line Items] | ||
Acquisition-related costs | 600 | 500 |
Combined Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Amortization of intangibles | 64 | 1,200 |
Income tax expense (benefit) | $ 16 | $ 400 |
Business Combinations - Summary
Business Combinations - Summary of Business Acquisitions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Seller Obligations | $ 1,380 | $ 3,093 |
Revenue | 342,135 | 301,728 |
Net (Loss) Income | $ 8,834 | $ 6,394 |
First State Insulation [Member] | ||
Business Acquisition [Line Items] | ||
Date | Mar. 18, 2019 | |
Acquisition Type | Asset | |
Cash paid | $ 5,125 | |
Seller Obligations | 1,380 | |
Total Purchase Price | 6,505 | |
Revenue | 488 | |
Net (Loss) Income | $ 23 | |
CDG Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Date | Mar. 19, 2018 | |
Acquisition Type | Asset | |
Cash paid | $ 9,440 | |
Seller Obligations | 1,973 | |
Total Purchase Price | 11,413 | |
Revenue | 400 | |
Net (Loss) Income | $ (15) | |
Other Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Date | Jan. 15, 2018 | |
Acquisition Type | Asset | |
Cash paid | $ 2,065 | |
Seller Obligations | 953 | |
Total Purchase Price | 3,018 | |
Revenue | 1,271 | |
Net (Loss) Income | 66 | |
Combined Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Cash paid | 11,505 | |
Seller Obligations | 2,926 | |
Total Purchase Price | 14,431 | |
2018 Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Revenue | 1,671 | |
Net (Loss) Income | $ 51 |
Business Combinations - Summa_2
Business Combinations - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 174,959 | $ 173,049 | |
Less seller obligations | 1,380 | $ 3,093 | |
First State Insulation [Member] | |||
Business Acquisition [Line Items] | |||
Inventories | 291 | ||
Property and equipment | 989 | ||
Intangibles | 3,382 | ||
Goodwill | 1,882 | ||
Accounts payable and other current liabilities | (39) | ||
Fair value of assets acquired and purchase price | 6,505 | ||
Less seller obligations | 1,380 | ||
Cash paid | $ 5,125 | ||
CDG Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 1,731 | ||
Inventories | 514 | ||
Other current assets | 28 | ||
Property and equipment | 933 | ||
Intangibles | 3,711 | ||
Goodwill | 4,898 | ||
Other non-current assets | 36 | ||
Accounts payable and other current liabilities | (438) | ||
Fair value of assets acquired and purchase price | 11,413 | ||
Less seller obligations | 1,973 | ||
Cash paid | 9,440 | ||
Other Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Inventories | 75 | ||
Other current assets | 12 | ||
Property and equipment | 517 | ||
Intangibles | 1,675 | ||
Goodwill | 764 | ||
Accounts payable and other current liabilities | (25) | ||
Fair value of assets acquired and purchase price | 3,018 | ||
Less seller obligations | 953 | ||
Cash paid | 2,065 | ||
Combined Business Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 1,731 | ||
Inventories | 589 | ||
Other current assets | 40 | ||
Property and equipment | 1,450 | ||
Intangibles | 5,386 | ||
Goodwill | 5,662 | ||
Other non-current assets | 36 | ||
Accounts payable and other current liabilities | (463) | ||
Fair value of assets acquired and purchase price | 14,431 | ||
Less seller obligations | 2,926 | ||
Cash paid | $ 11,505 |
Business Combinations - Estimat
Business Combinations - Estimates of Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 2,100 | $ 3,441 |
Weighted Average Estimated Useful Life (yrs) | 8 years | 8 years |
Trademarks and Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 999 | $ 1,695 |
Weighted Average Estimated Useful Life (yrs) | 15 years | 15 years |
Covenants Not-to-Compete [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Fair Value | $ 283 | $ 250 |
Weighted Average Estimated Useful Life (yrs) | 5 years | 5 years |
Business Combinations - Pro For
Business Combinations - Pro Forma Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Net revenue | $ 344,397 | $ 322,666 |
Net income | $ 8,793 | $ 7,478 |
Basic and diluted net income per share | $ 0.30 | $ 0.24 |
Income Per Common Share - Addit
Income Per Common Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Dilutive effect of outstanding restricted stock awards after application of the Treasury Stock Method | 127,000 | 224,000 |
Common stock shares excluded from calculation of diluted net income per common share | 9,000 |